Strategy and long-term ambition

45 Pages·2017·3.11 MB·English

Strategy
and long-term ambition
Thierry Le Hénaff, Chairman and CEO
A strong and committed executive team
Thierry Le Hénaff Marc Schuller Vincent Legros Christophe André
Chairman and CEO Industrial Specialties Adhesives Advanced Materials
and Coating Solutions
Luc Benoit-Cattin Thierry Lemonnier Bernard Boyer Michel Delaborde
Industry Finance Strategy Human Resources
and Communication
3 CAPITAL MARKETS DAY 10-11 JULY, 2017
Strategy and execution
exceptional value creation
have led to
over time
A strong track record...
Share of specialties Sales outside Europe EBITDA Free cash flow
In % of sales In % of sales In €m In % of EBITDA
72% 64% 1,189 36%
43%
44% 355
20%
2006 22001166 2006 22001166 2006 22001166 2006 A2rk0e1m6a
5 CAPITAL MARKETS DAY 10-11 JULY, 2017
... reflected in the share price evolution
2015-2016 share price evolution Market capitalization
Share price evolution + (10-year performance) In €bn
100
7.1
95
+69%
90 Arkema
(+250%)
85
80 x4.2
75
+17%
70
Peer*average
65 (+68%)
+14%
60 1.7
CAC40
55 (-1%)
50
45
Jan.2015 Apr.2015 Jul.2015 Oct.2015 Jan.2016 Apr.2016 Jul.2016 Oct.2016 2006 22001166
(*) AkzoNobel, BASF, Clariant, DSM, Evonik, Lanxess, Solvay; 10-year performance excludes Evonik
6 CAPITAL MARKETS DAY 10-11 JULY, 2017
Main levers of transformation
Organic growth Portfolio management
Innovation, partnerships €3.7 bn sales acquired
and geographic expansion €2.2 bn sales divested
Productivity plans Lower capital intensity Reduction of working capital
Offset 1/2 to 2/3 of inflation 5.6% of sales in 2016 14.5% in 2016
on fixed costs versus 8% at peak versus 23% in 2006
7 CAPITAL MARKETS DAY 10-11 JULY, 2017
Significant achievements since last Capital Markets Day...
Malaysia
New step in the attractive Further streamlining Expansion in Globalization of the
adhesives and sealants market of the portfolio PVDF Kynar® Thiochemicals footprint
Development of Bostik Divestments of activated carbons +25% production capacity Start and successful ramp-up
and acquisition of and filter aids, of oxo-alcohols at Changshu in China
of the €200 m Thiochemicals
Den Braven and of Sunclear
complex in Malaysia
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... including a significant step-up in financials
Sales EBITDA REBIT margin Free cash flow
In €m In €m In % In €m
7.5 +426
+27%
1,189
9.7%
+220bp
6.0 +52%
x3
7.5%
784
+145
2014 22001166 2014 22001166 2014 22001166 2014 22001166
9 CAPITAL MARKETS DAY 10-11 JULY, 2017
Well on track with short-term (2017) and mid-term (2020) targets
Main drivers 2014-2017 Main drivers 2017-2020
Completely consistent with announced roadmap Intermediate milestone to 2023 long-term ambition
1/3 organic growth, 1/3 M&A, 1/3 external environment
Significant contribution of innovation in lightweighting, Further contribution of innovation in lightweighting,
new energies and bio-materials new energies and bio-materials
First benefits from new technology platforms in composites
Acquisition and development of Bostik, 1st year of Den Braven
and 3D printing, supported by PEKK and Sartomer capex
New Thiochemicals platform in Malaysia
Development of Den Braven including ≥€30 m synergies
Internal measures and better pricing in fluorogases Further bolt-on acquisitions in adhesives including recently
acquired CMP
Gradual recovery of acrylic acid and MMA market at peak conditions
Further expansion in Thiochemicals in Malaysia
First benefits of Honfleur expansion of molecular sieves
Full ramp-up of Honfleur expansion of molecular sieves
Reminder of 2017 objective: Reminder of 2020 objectives:
€1.3 bn EBITDA €10 bn sales and EBITDA margin close to 17%
10 CAPITAL MARKETS DAY 10-11 JULY, 2017