Annual Report 2011 - Analist.be

Overview of the activities - ArkemaFinancial reportSales of continuing operationsin 2011 stood at EUR 5.9 billion, 21%up over 2010. In a context of high rawmaterial and energy costs, Arkemacontinued to successfully implementits sales price increase policy across allbusinesses (+ 14%). The + 9% scopeof business effect mostly reflects theintegration of Specialty Resins boughtfrom Total on 1 July 2011, whichachieved EUR 408 million sales in thesecond half of the year. Volumes werestable compared to last year. They rosein Performance Products, in particularthanks to the start-ups in Asia and thedevelopment of solutions for sustainabledevelopment. They recorded a smalldecrease in Industrial Chemicals due todestocking at year-end.EBITDA reached EUR 1,034 million(EUR 809 million in 2010). The EBITDAmargin grew at 17.5%, compared to16.6% in 2010. Market conditions in2011 were globally favorable with anexcellent start of the year in the first halfand with destocking in various industrialsupply chains at year-end.All Industrial Chemicals and PerformanceProducts business lines contributed tothis excellent performance, sustainedby the start-up of Kynar® PVDF in Asia,developments in specialty polymers,the acquisition of Total’s Resins, anda better product mix in particular inPerformance Products.Operating income stood atEUR 717 million including EUR 272 milliondepreciation and amortization andEUR - 45 million other incomeand expenses.Net income from continuing operationsachieved a record level at EUR 572 million.It represented EUR 9.21 per share and9.7% of sales.Net result, group’s share,of discontinued operations stoodat EUR - 587 million and includedEUR 505 million non-recurring expensesrelating to the announcement of aproject to divest Vinyls businesses.This includes primarily write-offs oftangible and intangible assets, provisionmainly corresponding to contractualcommitments on working capital, and tothe negative impact on Arkema net debtrelated to the cash to be transferred.Consequently, net income, group’sshare, stood at EUR - 19 million.Arkema continuing operations generateda free cash flow of EUR 377 millioncompared to EUR 320 million in 2010.This strong cash generation reflects highEBITDA and the strict control of workingcapital which, at constant scope ofbusiness, represents 13.8% of salesdespite a significant sales increase.It also includes recurring capitalexpenditures of EUR 311 million.Net debt amounts to EUR 603 millionat 31 December 2011 compared toEUR 94 million end 2010. Gearingremains moderate at 27% representing0.6 times 2011 EBITDA. Net debtincludes the impact of acquisitions anddivestments finalized during the year fora total amount of EUR 568 million.Taking into account the progressachieved by the group, its confidencein its outlook and according to itsdistribution policy, the Board of Directorshas decided to propose to the nextshareholders Annual General Meetingdue on 23 May 2012 the payment ofa dividend of EUR 1.30 per share, anincrease of 30% vs 2011.Geographical breakdown of turnover (in %)Evolution of turnover by sector (in EUR million)Evolution of current operating income (EBIT)by sector (in EUR million)6005004003002001000Asia and Restof the World 26%560417240167(38)(22)33% North Asia and 4,000 Rest 600America of the World 26%5003,0004003002,0002001,00010003,9283,1715604171,9521,68024016733% NorthAmerica(38)(22)60050040030020010005604,0003,0004172,0001,0003,928240 3,1711671,9521,680(38)(22)4,0003,0002,0001,000(100)Europe 41%IndustrialChemicalsPerformanceProductsCorporateEurope 41%0(100)IndustrialChemicalsIndustrialChemicalsPerformanceProductsPerformanceProducts2018CorporateCorporate(100)IndustrialChemicals0IndustrialPerformance ChemicalsProductsPerformanceProducts Corporate2011 20102018Corporate0In62 Annual Report 2011