Arkema SA · EURONEXT:AKE
Arkema SA — European Chemicals 2020 Vision Conference
18 slides from Arkema SA's conference presentation, Jun 19, 2014
Slide 1: Arkema European Chemicals 2020 Vision Conference
Arkema European Chemicals 2020 Vision Conference Thierry Lemonnier – CFO London – June 19th, 2014
Slide 2: Arkema in 2013
Arkema in 2013 13,908 1,200 employees researchers 90 10 production sites R&D centers €6.1 bn €902 m sales EBITDA €481 m 14.8% capex EBITDA margin 2
Slide 3: Sales breakdown by business
Sales breakdown by business Organic Peroxides High Acrylics Coating Performance Filtration 7% Solutions and Adsorption 15% Materials 10% 37% 30% Coating Resins Technical Polymers 14% 2013 sales 13% Sartomer (UV Curing Resins) €6.1bn 5% Hydrogen Peroxide Coatex (Rheological Additives) 4% 3% PMMA Thio
Slide 4: Among the first 3 leaders in our businesses
Among the first 3 leaders in our businesses POSITION MAIN PLAYERS % GROUP SALES • Evonik #1 Specialty polyamides • Ems 13% #1 PVDF • Solvay #1 Thiochemicals • Chevron Phillips 9% • Akzo Nobel #2 Organic peroxides • United Initiators 4% • Dupont #2 Fluorogases • Honeywell 9% ~ 90% • Evonik of Group #
Slide 5: Diversified end-markets
Diversified end-markets Others 6% 21% 17% Consumer goods Chemicals, plastics Health, hygiene and beauty, wellness, sports and leisure, packaging, textile, etc. Electronics 3% Water 4% 14% Industrial coatings Automotive, marine, metal protection, Nutrition 4% adhesives & selants, 3D printing, etc. 6%
Slide 6: Megatrends support growth of our businesses
Megatrends support growth of our businesses End-markets Megatrends Drivers of Arkema’s growth • Increasing standard of living • Specialty Polyamides: new trends in consumer electronics and sports Consumer • Growth of population • Acrylics: superabsorbents for diapers goods • Ageing population • Filt
Slide 7: Enhanced geographical reach
Enhanced geographical reach European panel of peers* North America 19% Sales by region Europe 44% 24% Asia 13% North Europe 41% 34% America RoW incl. France: 11% incl. Germany: 7% American panel of peers** 5% 20% RoW Asia North Europe 34% 41% America China: 9% 8% 17% Two growth priorities: North Ame
Slide 8: Financing structure
Financing structure €923 m 39% 1.0 x Net debt Gearing Net debt / EBITDA (December 31st, 2013) (net debt / shareholders’equity) Average maturity > 4 years (€m) Rating 700 Standard & Poor’s BBB stable outlook Moody’s Baa2 stable outlook 500 480 120 150 2015 2016 2017 2020 2023 8
Slide 9: Dividend
Dividend 1.85 Dividend (€/share) 1.8 • 32% payout on adjusted net income 1.3 • Versus 25% payout in 2012 • In line with target to reach a 30% 1.0 payout ratio on adjusted net income 0.75 • Reflects confidence in mid-term outlook and solid balance sheet 0.6 0.6 • 2.2% dividend yield (based on share p
Slide 10: First quarter 2014 results
First quarter 2014 results Sales (€m) EBITDA (€m) 1,563 1,523 234 213 • +0.7% • High basis of comparison in at constant scope and FX Fluorogases in 1Q’13 • +3.3% volumes (+7% EBITDA excluding Fluorogases) • -2.6% prix mainly in Fluorogases • 14.0% EBITDA margin 1Q’13 1Q’14 1Q’13 1Q’14 EBITDA (€m) an
Slide 11: Projects announced in 1Q'14
Projects announced in 1Q’14 Acquisition of acrylic assets Expansion of Organic Peroxides from Jurong in China* in China • Creation of a manufacturing JV in Taixing • x2 production capacity in Changshu with Jurong Chemical, leader in acrylic • To support increasing use of polymers monomers in China i
Slide 12: Implementing 2014 top priorities
Implementing 2014 top priorities • Start Thiochemicals platform in Malaysia • Commercial start-up expected in 2H’14 • Finalize acquisition of Jurong’s acrylic assets • Closing expected in summer 2014 for the acquisition of the 1st line of 160kt / year * • Construction of 3rd line by Jurong on track
Slide 13: 2014 outlook
2014 outlook • Assumptions • Moderate worldwide growth with contrasted market conditions by regions • Stable €/US$ exchange rate versus 2013 (unchanged assumption despite unfavorable rate in 1Q’14) • 2nd quarter 2014: • 2 very large maintenance turnarounds in Thiochemicals (Beaumont, US) and Technic
Slide 14: The right strategy to create significant value long-term
The right strategy to create significant value long-term INNOVATION Leverage a unique R&D and applicative know-how focused on megatrends BOLT-ON EMERGING ACQUISITIONS COUNTRIES Reinforce market positions Customer Entrepreneurial Operational Towards completely and enhance profile intimacy culture exc
Slide 15: Step-by-step transformation
Step-by-step transformation A world leader in specialty chemicals and advanced materials 2020 Acceleration of growth • Low GWP Fluorogases (1234yf, 1233zd) • Acquisitions in High 2016 Performance Materials and acrylics downstream Consolidation and • Acrylics in Clear Lake (US) • Innovation breakthro
Slide 16: Cash allocation over 2013-2016
Cash allocation over 2013-2016 Capex (€m) €1.7bn €3.6 bn cash resources available Cumulative cash Borrowing Capex flow from capacity €1.7 bn 450 operating activities M&A, 481 dividends and others 2013 2014e 2015e 2016e Cumulative €931 m 2013 - 2016 €1.9 bn M&A €350 m Dividends €230 m Others Cumulati
Slide 17: Unique quality of projects to sustain growth
Unique quality of projects to sustain growth High Performance Materials Industrial Specialties Coating Solutions 2016 EBITDA 2016 EBITDA 2016 EBITDA MARGIN TARGET 18% MARGIN TARGET 17% MARGIN TARGET 15% • Technical Polymers: • Thiochemicals: • Acrylics: x3 capacity of Hipro PA10 Construction of a pl
Slide 18: Disclaimer
Disclaimer The information disclosed in this document may contain forward-looking statements with respect to the financial condition. results of operations. business and strategy of Arkema. Such statements are based on management’s current views and assumptions that could ultimately prove inaccurate