Arkema Sa · EURONEXT:AKE
Arkema Sa — Q2 2016 Earnings Presentation
17 slides from Arkema Sa's earnings presentation, Aug 3, 2016
Slide 1: Second Quarter 2016 Results
SECOND QUARTER 2016 RESULTS 3 AUGUST 2016
Slide 2: 2Q'16 Key Take-aways
2Q’16 KEY TAKE-AWAYS Innovation in lightweight materials and new energies +2.6% volumes New developments and geographic expansion in Adhesives Developments in specialty coatings +7% above strong 2Q’15 (€320 m) €341 m EBITDA EBITDA up YoY in the three divisions 17.5% Close to historic highs EBITDA ma
Slide 3: A Strong Second Quarter
A STRONG SECOND QUARTER EBITDA EBITDA MARGIN ADJUSTED EPS* NET DEBT in €m +7% +230 bps in € +6% in €m Stable 17.5% 1,390 1,406 341 1.79 320 15.2% 1.69 2Q'15 2Q'16 2Q'15 2Q'16 2Q'15 2Q'16 31/03/16 31-déc 30/06/16 2Q'16 * Adjusted net income excludes unrealized foreign exchange results on the financin
Slide 4: A Significant Increase in the First Semester
A SIGNIFICANT INCREASE IN THE FIRST SEMESTER EBITDA EBITDA MARGIN ADJUSTED EPS* NET DEBT in €m +15% +270 bps in € +24% in €m Stable 643 1,379 1,406 16.7% 3.21 557 14.0% 2.58 1H'15 1H'16 1H'15 1H'16 1H'15 1H'16 31/12/15 1Q'16 30/06/16 2Q'16 * Adjusted net income excludes unrealized foreign exchange r
Slide 5: 1H'16 Sales Breakdown by Segment and Region
1H’16 SALES BREAKDOWN BY SEGMENT AND REGION 1H’16 SALES BY SEGMENT 1H’16 SALES BY REGION Coating 23% High Asia and Solutions 46% Performance RoW 29% Materials 37% Europe €3.8 bn €3.8 bn 31% 34% Industrial North America Specialties 5 SECOND QUARTER 2016 RESULTS
Slide 6: Further Step Up in Group's Profile
FURTHER STEP UP IN GROUP’S PROFILE SPECIALTY “MORE CYCLICAL" BUSINESSES BUSINESSES Fluorogases 1H’16 Sales Gradually improving 1H’16 in line with plan Volumes stable 73% 27% at constant sales +3.3% scope and FX Acrylics Stabilized at low level +20% PMMA Favorable market EBITDA growth YoY conditions
Slide 7: Where Do We Stand in 1H'16 on Main Drivers
WHERE DO WE STAND IN 1H’16 ON MAIN DRIVERS Integration now nearly completed Bostik EBITDA margin at 13.8% in 1H’16 significantly improving YoY integration (~11% in 1H’15) and since the acquisition (10.3% in FY2014) Fluorogases Gradual recovery in line with Group’s assumptions Contribution of Kerteh
Slide 8: 2Q'16 Key Figures
2Q’16 KEY FIGURES IN €M (EXCEPT EPS) 2Q’15 2Q’16 VARIATION Sales 2,106 1,952 -7.3% EBITDA 320 341 +6.6% EBITDA margin 15.2% 17.5% Recurring operating income 208 229 +10.1% Adjusted net income* 123 134 +8.9% Net income - Group share 133 147 +10.5% Adjusted EPS* (in euros) 1.69 1.79 +5.9% * Adjusted n
Slide 9: 2Q'16 Sales Bridge
2Q’16 SALES BRIDGE SALES In €m Scope Volumes Price of business Currency +2.6% (5.2)% (2.2)% (2.5)% Innovation Acrylic cycle Divestment in Technical of Sunclear Lower raw Polymers material prices 2,106 Geographic 1,952 expansion in Adhesives Solid demand in Coating Solutions 2Q’15 2Q’16 9 SECOND QUAR
Slide 10: High Performance Materials
HIGH PERFORMANCE MATERIALS 2Q’16 KEY FIGURES 2Q’16 SALES DEVELOPMENT IN €M 2Q’15 2Q’16 variation Volumes +2.2% Sales 907 879 (3.1)%* Prices (1.1)% EBITDA 149 165 +10.7% Currency (3.1)% EBITDA margin 16.4% 18.8% Rec. operating income 111 125 +12.6% Scope (0.2)% 2Q’16 HIGHLIGHTS 2Q’16 SALES BY BUSINES
Slide 11: Industrial Specialties
INDUSTRIAL SPECIALTIES 2Q’16 KEY FIGURES 2Q’16 SALES DEVELOPMENT IN €M 2Q’15 2Q’16 variation Volumes +2.0% Sales 684 609 (11.0)%* Prices (5.6)% EBITDA 128 134 +4.7% Currency (1.9)% EBITDA margin 18.7% 22.0% Rec. operating income 84 92 +9.5% Scope (6.5)% 2Q’16 HIGHLIGHTS 2Q’16 SALES BY BUSINESS LINE
Slide 12: Coating Solutions
COATING SOLUTIONS 2Q’16 KEY FIGURES 2Q’16 SALES DEVELOPMENT IN €M 2Q’15 2Q’16 variation Volumes +4.0% Sales 509 457 (10.2)% Prices (12.0)% EBITDA 61 63 +3.3% Currency (2.2)% EBITDA margin 12.0% 13.8% Rec. operating income 32 34 +6.3% Scope - 2Q’16 HIGHLIGHTS 2Q’16 SALES BY BUSINESS LINE Good resilie
Slide 13: 2Q'16 Cash Flow Statement
2Q’16 CASH FLOW STATEMENT IN €M 2Q’16 EBITDA 341 Usual seasonality of working capital Working capital variation (1) (46) 17.2% (2) working capital over annualized sales ratio (17.5% end of June 2015) Taxes (68) Current taxes excluding non-cash items Cost of debt (23) Capital expenditure (3) (91) 201
Slide 14: Bostik: Strong Geographical Development
BOSTIK: STRONG GEOGRAPHICAL DEVELOPMENT 6 NEW PLANT OPENINGS SINCE THE ACQUISITION OF BOSTIK Sweden 2016 Texas, US 2015 Bangalore, India 2015 Mexico 2015 Philippines 2016 Malaysia 2016 14 SECOND QUARTER 2016 RESULTS
Slide 15: Proposed Acquisition of Den Braven: A New Step Forward for Bostik
PROPOSED ACQUISITION OF DEN BRAVEN: A NEW STEP FORWARD FOR BOSTIK Transaction highlights Enterprise value 11x at least €485 m 2016e EBITDA €30 m synergies DEN BRAVEN BOSTIK ~€350 m 2016e sales Leadership position in Europe + Strong brand awareness Global player with a more significant with 12% marke
Slide 16: 2016 Outlook
2016 OUTLOOK Assuming an energy, raw material and currency environment in line with the first semester, and taking into account the traditional seasonality of the second half of the year, Arkema reaffirms its confidence in its ability to grow EBITDA in 2016 and now targets a significant EBITDA growt
Slide 17: 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