Paris July 28, Q2 '11 Results. Investors & Analysts Meeting

Transcription

1 Paris July 28, 2011 Q2 '11 Results Investors & Analysts Meeting

2 Forward looking statements This presentation contains elements that are not historical facts, including, without limitation, certain statements on future expectations and other forward-looking statements. Such statements are based on management s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those anticipated. Rhodia does not undertake to provide updates of these statements. Copies of all recent filings, and additional information about Rhodia, are available through our web site : The presentation today may include the display of some company data that do not directly conform to generally acceptable accounting principles, or GAAP. Management believes that the presentation of some non-gaap data provides investors with additional insight into the ongoing operations of the business. These measures should not be viewed as an alternative to GAAP measures of performance. Furthermore, these measures may not be consistent with similar measures provided by other companies. 2 Rhodia Q2 '11 Results Presentation

3 Paris July 28, 2011 Financial highlights Pascal Bouchiat Executive Vice President & CFO

4 Continued delivering on its profitable growth strategy Highest ever operational profit Solid business dynamics Rec. EBITDA (1) 297m Volume (2) 7% Pricing power 58m (3) Excellent net profit Investing for growth Net Income Group Share 113m Free Cash Flow 0m Net Debt 1,085m (1) Recurring EBITDA: before restructuring and other operating income and expenses (2) Organic growth: yoy change in net sales (3) Net positive price impact at EBITDA level 4 Rhodia Q2 '11 Results Presentation

5 Strong sales growth Net Sales (85) 98 7% 1,330 Scope Forex Volume & mix 16% Price 1, % Q2 '10 Net Sales Q2 '11 Net Sales Positive contribution from all growth levers 5 Rhodia Q2 '11 Results Presentation

6 Profitability growth driven by pricing and strong activity Rec. EBITDA (1) 211 (153) (33) 226 EBITDA (1) margin 17.0% 13 Scope (21) Forex 54 Volume & mix +31% Price 58m Raw material & energy Fixed costs 297 EBITDA (1) margin 18.4% Q2 '10 Q2 '11 EBITDA (1) EBITDA (1) (1) Recurring EBITDA: before restructuring & other operating income & expenses 6 Rhodia Q2 '11 Results Presentation

7 Q2 '11 performance by cluster Consumer Chemicals Recurring EBITDA (1) and margins Q2 10 Q % 16% Healthy business dynamics, +7% overall yoy organic growth: - Novecare, volumes up +10%, mainly stemming from Agro and Oil & Gas markets (robust demand and innovation driven) as well as from Feixiang - Coatis, over 5% growth, particularly from solvent business Good pricing power across the GBUs Feixiang continues delivering double-digit sales growth A strategic JV alliance with Sibur to create a specialty surfactant leader in Russia Bio-sourced formulations supporting Oil & Gas market (1) Recurring EBITDA: before restructuring & other operating income & expenses Note: Activity evolution yoy expressed in terms of organic volume growth 7 Rhodia Q2 '11 Results Presentation

8 Q2 '11 performance by cluster Recurring EBITDA (1) and margins Q2 10 Q2 11 Advanced Materials 28 21% 71 33% Global volume expansion over 20% yoy: - Rare Earth Systems, strong demand from Electronic markets - Continued growth at Silica Strong margins from pricing power and optimized competitive sourcing China s Rare Earths export quotas allocated to Rhodia for H2 11 similar to H1 11 levels Recycling Rare Earths Development of new sourcing New process for the recovery of Terbium contained in used low-energy lamps Joint process development with Umicore for Nickel Metal Hydride rechargeable batteries Long term supply agreement Further sourcing opportunities (1) Recurring EBITDA: before restructuring & other operating income & expenses Note: Activity evolution yoy expressed in terms of organic volume growth 8 Rhodia Q2 '11 Results Presentation

9 Q2 '11 performance by cluster Recurring EBITDA (1) and margins Q2 10 Q2 11 Polyamide Materials % 13% Sustained demand in a normalized supply context Satisfactory volume with healthy dynamics at Engineering Plastics (+8% yoy; +5% qoq) offsetting lower demand at Fibras (weak Brazilian textile market) Adipic acid cost-indexed contracts fully effective Acetow & Eco Services % 25% Robust Acetow performance driven by continuous sound demand Eco Services, solid activity level (1) Recurring EBITDA: before restructuring & other operating income & expenses Note: Activity evolution yoy expressed in terms of organic volume growth 9 Rhodia Q2 '11 Results Presentation

10 Q2 '11 performance by cluster Recurring EBITDA (1) Q2 10 Q2 11 Energy Services Profit increase entirely due to significantly higher CER volumes A large majority of expected annual CER production hedged close to 13 /T, despite current low prices (1) Recurring EBITDA: before restructuring & other operating income & expenses Note: Activity evolution yoy expressed in terms of organic volume growth 10 Rhodia Q2 '11 Results Presentation

11 Consumer Chemicals & Advanced Materials, powerful growth engines Rec. EBITDA (1) by Business Cluster 94 Energy Services Acetow & Eco Services Polyamide Materials Advanced Materials Consumer Chemicals % % % of the Group total Rec. EBITDA excluding Corporate & Other H H (1) Recurring EBITDA: before restructuring & other operating income & expenses 11 Rhodia Q2 '11 Results Presentation

12 Income Statement Net Sales Other Revenue Q2 10 Q2 11 H1 10 H1 11 1, , , , Recurring EBITDA * Rec EBITDA margin on Net Sales % % % % Depreciation & amortization Other gains and losses Restructuring costs (69) (9) (2) (69) (12) 2 (135) (16) (10) Operating Profit (138) 17 2 Net financial charges Income tax (63) (37) (40) (62) (105) (65) (84) (107) Profit from continuing operations Profit from discontinued operations (2) (1) (3) (2) Minority interest (1) (2) (1) (4) Net Profit Group Share Earnings Per Share, basic (in ) * Recurring EBITDA: before restructuring & other operating income & expenses 12 Rhodia Q2 11 Results Presentation

13 Investment for growth coupled with sustained financial discipline Operating Working Capital* % of Total Sales Capital Expenditures Forecast ~ % 12.3% % 9.2% 9.9% Q2 90 FY 2007 FY 2008 FY 2009 FY 2010 Q2 56 H Q1 44 Q1 62 * Average quarterly operating working capital for FY ratios Best-in-class Operating Working Capital Growth investments focused on highly dynamic markets 13 Rhodia Q2 '11 Results Presentation

14 Investing for growth 0m Free Cash Flow in Q2 ' (90) (22) (57) (2) (1,063) PI Polymer (1,085) Operating cash flow Change in working capital Restructuring cash costs Capex acquisition, dividend payment and others Net Debt March 31, 2011 Net Debt June 30, Rhodia Q2 '11 Results Presentation

15 Outlook

16 2011 Outlook Macro environment Business context Global economic growth driven by fast-growing countries High raw materials & energy prices Business dynamics remaining satisfactory Summer seasonality Portfolio benefiting from eco-megatrends Strong exposure to fast growing countries Enjoying satisfactory pricing power 2011 Rec. EBITDA > 1 bn On track towards our 2013/15 profitable growth ambition* (*) Pre-CER Recurring EBITDA, to exceed 1bn by 2013/15 16 Rhodia Q2 '11 Results Presentation

17 Combination of Rhodia & Solvay: Creation of a leader in the Chemicals industry Shaping our future

18 Indicative offer calendar Acquisition offer announced & filing Initial offer Re-opened offer 2011 Regulators approvals Closing & Settlement April May June July August September 04/04 Announcement of the offer 15/06 30/06 05/08 Opening of the offer Notification to the European Commission European Commission expected approval date

19 Appendices

20 H1 11 Net Sales Net Sales (62) 204 8% 14% Price 3,120 2,506 Scope Forex Volume & mix +24% H1 '10 Net Sales H1 '11 Net Sales Positive contribution from all levers 20 Rhodia Q2 '11 Results Presentation

21 H1 11 Recurring EBITDA Rec. EBITDA (1) 361 (252) (65) 447 EBITDA (1) margin 17.8% 21 Scope (18) Forex 86 Volume & mix +30% Price 109m Raw material & energy Fixed costs 580 EBITDA (1) margin 18.6% H1 '10 H1 '11 EBITDA (1) EBITDA (1) (1) Recurring EBITDA: before restructuring & other operating income & expenses 21 Rhodia Q2 '11 Results Presentation

22 Another quarter of proven pricing power YoY change Selling price / Raw Material & Energy (RM&E) cost changes* Q Q1 '11 Q2 ' Selling price Costs Net price effect Resilient favorable selling price / raw material cost balance * Excluding Forex impacts 22 Rhodia Q2 '11 Results Presentation

23 Net Finance Costs Q2 10 Q2 11 H1 10 H1 11 Net financial charges & Other financial charges (24) (28) (49) (55) Non recurring financial restructuring charges (24) - (24) - Interest cost on environmental & Pension liabilities (18) (19) (35) (36) Forex gains & losses and Other Total net financial expenses (63) (40) (105) (84) 23 Rhodia Q2 '11 Results Presentation

24 Good Free Cash Flow generation and continued Net Debt reduction (1,194) 349 Operating cash flow 100m FCF in H1 '11 (93) Change in working capital (4) Restructuring cash costs (152) Capex 9 Others (1,085) 109m Net Debt December 31, 2010 Net Debt June 30, Rhodia Q2 '11 Results Presentation

25 Raw material market prices NATURAL GAS BENZENE BUTADIENE 19* 42% 27* 831* 861* 2,020* 17* (29)% 12* 4% 1,275* 58% Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Daily European Nat gas 1Yr forward Zeebrugge (Eur/MWh) Daily US Nat gas 1Yr forward Henry Hub (Eur/MWh) Monthly Benzene contract price NorthWest Europe ( /T) Quarterly Western Europe contract market delivered ( /T) SULPHUR NAPHTHA AMMONIA 143* 52% 217* 544* 27% 690* 304* 31% 397* Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Quarterly average data from Tempa Sulfur (US$/T) Monthly trend of Naphta Northwest Europe Cargoes CIF NWE / Basis ARA ( /T) Monthly average CFR NW Europe ( /T) * Average market prices over the reference period Above indicated percentage designate Q1 11 YoY variation 25 Rhodia Q2 '11 Results Presentation

26 Paris July 28, 2011 Q2 '11 Results Investors & Analysts Meeting