Arkema Sa · EURONEXT:AKE
Arkema Sa — Merger or Acquisition (July 2016)
14 slides from Arkema Sa's merger presentation, Jul 20, 2016
Slide 1: Planned Acquisition of Den Braven
PLANNED ACQUISITION OF DEN BRAVEN A new step forward for Bostik 20th JULY 2016
Slide 2: Bostik: 18 Months After
BOSTIK: 18 MONTHS AFTER STRONG ACHIEVEMENT SINCE THE ACQUISITION SUCCESSFUL INTEGRATION RUNNING STRONGLY Synergies well on track +16% EBITDA in 2015 vs 2014 Integration process now nearly 13% EBITDA margin in 1Q’16 completed versus 10.3% in 2014 6 new plant openings since acquisition Ready to start
Slide 3: Taking Part in the Consolidation of Fragmented Adhesives and Sealants Markets
TAKING PART IN THE CONSOLIDATION OF THE STILL FRAGMENTED ADHESIVES AND SEALANTS MARKETS Acquiring Significant cost In line with a strong leader and sales synergies the Group’s strategy in high performance to strengthen its sealants in Europe “home efficiency and insulation” innovation platform A uni
Slide 4: A Strong Strategic Fit
A STRONG STRATEGIC FIT A new step forward EBITDA margin target Accelerate in our ambitious for Bostik upgraded the development roadmap for Bostik to 15% in 2020 of High Performance after 18 months Materials of successful track record within Arkema 4 ACQUISITION OF DEN BRAVEN
Slide 5: Transaction Highlights
TRANSACTION HIGHLIGHTS Transaction €485 m enterprise value representing 11x 2016e EBITDA value 6.5x 2016e EBITDA including synergies EPS and cash accretive from 1st year Financial At least €30 m synergies per year, fully achieved within 5 years impact (8.5% of Den Braven’s sales) High EBITDA to cash
Slide 6: Den Braven Overview
DEN BRAVEN OVERVIEW KEY FACTS OPERATING LOCATIONS Leader in high performance sealants in Europe State-of-the-art proprietary technologies 6 First class specialized production sites 1 Europe 1 USA Resilient financial performance Turkey Entrepreneurial culture KEY FIGURES 2015 SALES BY REGION 2016e fi
Slide 7: Sealants Market Overview
SEALANTS MARKET OVERVIEW GLOBAL ADHESIVES AND SEALANTS MARKET* 34% Construction Industry (Transport, Assembly & other) 55% 11% Consumer Sealants market €50 bn €9 bn 42% Europe 36% North America Asia & RoW 22% Main growth drivers for sealants: ● New regulations to improve energy efficiency (both reno
Slide 8: Sealants: Addressing Growing Needs for Insulation and Assembly
SEALANTS: ADDRESSING GROWING NEEDS FOR INSULATION AND ASSEMBLY SEALANTS MARKET Construction Industry/Assembly Joint filling Elastic bonding Expansion joints Panel façade Automotive Bus and train Sanitary joints Windows & doors frame interior & exterior external panels Roofing joints Aerospace Marine
Slide 9: A Unique Combination in Sealants
A UNIQUE COMBINATION IN SEALANTS DEN BRAVEN BOSTIK Leadership position in Europe + Strong brand awareness with 12% market share Global player with a more significant Best-in-class production base presence in emerging economies State-of-the-art technologies A well recognized but more focused know-how
Slide 10: Leverage Complementarities in Emerging Countries
LEVERAGE COMPLEMENTARITIES IN EMERGING COUNTRIES Eastern Asia & Central Europe Middle East Africa Latin America Pacific Bostik sales Den Braven sales 10 ACQUISITION OF DEN BRAVEN
Slide 11: A Clear Path to Value Creation
A CLEAR PATH TO VALUE CREATION AT LEAST €30 M SYNERGIES (EBITDA) PER YEAR, FULLY ACHIEVED WITHIN 5 YEARS PURCHASING SYNERGIES OPERATIONAL EXCELLENCE COMMERCIAL SYNERGIES Raw materials Leverage best manufacturing Combine Den Braven’s practices comprehensive offer with Bostik’s Good and services stron
Slide 12: Strengthening the Home Efficiency and Insulation R&D Platform
STRENGTHENING THE HOME EFFICIENCY AND INSULATION R&D PLATFORM ENERGY EFFICIENCY: A CHALLENGE FOR TODAY AND TOMORROW BOSTIK SMART HOUSE & EUROPEAN COMMISSION STATEMENT “By improving the energy efficiency of buildings, we could reduce DEN BRAVEN CENTRE OF EXCELLENCE total EU energy consumption by 5% t
Slide 13: A New Step in Our Ambitious Plan for Bostik
A NEW STEP IN OUR AMBITIOUS PLAN FOR BOSTIK EBITDA Reminder of our 2017 target for Bostik In €m ~300 +30% EBITDA versus 2014 Target defined without acquisition x2 Significant EBITDA growth already achieved in 2015 and 1Q’16 158 Acquisition of Den Braven A new strong driver supporting the achievement
Slide 14: 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