Arkema Sa · EURONEXT:AKE
Arkema Sa — Merger or Acquisition (November 2011)
17 slides from Arkema Sa's merger presentation, Nov 23, 2011
Slide 1: Focusing on Specialties: Project to divest Vinyls
Focusing on Specialties Project to divest Vinyls Project subject to the information / consultation of relevant Work Councils
Slide 2: Project rationale
Project rationale Since spin-off, Arkema has: Developed strong leadership positions in Industrial Chemicals or niche markets in Performance Products Undertaken a significant restructuring plan to improve profitability of Vinyls End 2010, Arkema announced its vision for 2015 Accelerate growth in Indu
Slide 3: Project overview
Project overview Project to sell the Vinyl Products segment* to Klesch Group Creation of a European integrated and independent PVC leader Dedicated management team, strong balance sheet and clear industrial project Klesch Group specialized in the development of commodity-related industrial businesse
Slide 4: Leadership positions in many niche markets
Leadership positions in many niche markets Commodities Specialties • Mature markets • High growth potential • Many players • Limited number of players • Easy available technology • Proprietary technologies Ranking Technical Polymers # 1/2* Functionnal Additives # 2** Specialty Chemicals # 2*** Acryl
Slide 5: Marked differences: market size and presence
Marked differences: market size and presence 40 Size of worldwide market by business (mt) Industrial Chemicals and Performance Products 4.2 3.2 1.6 0.7 1.4 0.1 0.03 PVC Acrylic acid PMMA Thiochemicals Fluorogas H2O2 Specialty PA PVDF Sales by region (9m’11) Vinyls Industrial Chemicals and Performanc
Slide 6: Transaction overview
Transaction overview XXXXXXX XXXX XXXX Project subject to the information / consultation of relevant Work Councils
Slide 7: Creating a major independent player in Vinyls
Creating a major independent player in Vinyls Creating a European PVC leader # 3 in Europe behind Ineos and Solvin Estimated sales of ~€ 1bn Strong assets Recognized know-how and very skilled workforce Strong customer focus Fully integrated production line from electrolysis of salt to PVC downstream
Slide 8: Sites transferred
Sites transferred Europe Matamoros Reims Veghel Balan Sablé Eilenburg Mexico Ehringshausen Chantonnay Arco Changshu** Saitama Saint Fons Zagreb Hernani Samarate Gaillac St Auban* Barcelona Lavéra Vauvert / Fos Berre Bien-Hoa Asia PVC Pipes Profiles Chlorine / Caustic soda / CVM Compounds * Only the
Slide 9: Transaction scope and key points
Transaction scope and key points 2,630 employees transferred in accordance with applicable legislation End 2011, activities to be divested will be classified as discontinued operations ~ € 470 million exceptional net expenses to be booked in 2011 ~ € 370m exceptional net write-offs related to PPE, w
Slide 10: Arkema pro forma P&L (unaudited)
Arkema pro forma P&L (unaudited) Reported Transaction Pro forma €6.5bn in €m (except EPS) 2010 impact 2010* €6.5bn Pro forma Pro forma Sales 5,905 1,036 4,869 2011e sales 2011e sales Including Total Including Total resins, Seppic, resins, Seppic, EBITDA 790 (19) 809 and HiPro and HiPro // Casda Casd
Slide 11: Arkema positioned as a specialty leader
Arkema positioned as a specialty leader XXXXXXX XXXX XXXX Project subject to the information / consultation of relevant Work Councils
Slide 12: Arkema tomorrow
Arkema tomorrow Global leadership positions in all business lines A portfolio focused on specialty businesses with 2 strong growing segments: Industrial Chemicals and Performance Products Well-balanced global presence Competitive world-scale facilities Solid balance sheet and diversified financing s
Slide 13: Well balanced presence
Well balanced presence Sales by region (2011e) Arkema including Vinyls Arkema excluding Vinyls Asia and RoW Europe Asia and RoW Europe 24% 26% 40% 48% 28% 34% North America North America Strong exposure Strong exposure to emerging to emerging markets markets 13 Project subject to the information / c
Slide 14: Impact on portfolio
Impact on portfolio Sales by segment (2011e) Arkema including Vinyls Arkema excluding Vinyls Vinyl Products Performance Performance Coatings Products 16% Products 28% ~ 1/2 33% Industrial 56% Chemicals Industrial Chemicals Industrial Specialties ~ 1/2 14 Project subject to the information / consulta
Slide 15: Profitability
Profitability EBITDA (€m) and EBITDA margin (%) 16.6% 13.4% 10.0% 9.9% 9.1% 7.6% 6.2% 7.0% 355 330 518 427 310 340 790 809 2005 2007 2009 2010 Arkema EBITDA Arkema EBITDA w/o Vinyls * Pro forma unaudited figures. Based on management estimates 15 Project subject to the information / consultation of r
Slide 16: Outline of Arkema tomorrow
Outline of Arkema tomorrow €6.5bn proforma sales* Including full year acquisition impact (Total Specialty Resins, Seppic and HiPro / Casda) Excluding Vinyls Reduced cyclicality Strong balance sheet Net debt below 1x 2011e EBITDA 2015 EBITDA target increased at € 1,050m without Vinyls** Reaffirm curr
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