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www.chemtura.com
Chemtura Corporation
Jefferies 12th Annual Industrials Conference
AUGUST 10, 2016
This presentation contains forward-looking statements based on management's current expectations, estimates and projections. All statements that
address expectations or projections about the future, including our actions that will drive earnings growth, demand for our products and expectations
for growth, are forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties,
potentially inaccurate assumptions and other factors, some of which are beyond our control and difficult to predict. If known or unknown risks
materialize, or should underlying assumptions prove inaccurate, our actual results could differ materially from past results and from those expressed
in forward-looking statements. Important factors that could cause our results to differ materially from those expressed in forward-looking statements
include, but are not limited to, economic, business, competitive, political, regulatory, legal and governmental conditions in the countries and regions in
which we operate. These factors and others are discussed more fully in the reports we file with the Securities and Exchange Commission, particularly
our latest annual report on Form 10-K. We assume no obligation to provide revisions to any forward-looking statements should circumstances
change, except as otherwise required by securities and other applicable laws.
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Cautionary Statement Regarding Forward-Looking Statement
Forward Looking Statement & Non-GAAP Financial Measures
Non-GAAP Financial Measures
Our financial information as filed with the SEC is based on Generally Accepted Accounting Principles (GAAP) in the U.S. We utilize other measures
to manage our business and make resource allocations that are not prescribed by GAAP. We call these Non-GAAP Financial Measures.
The following Non-GAAP Financial Measures are used in this presentation:
Reconciliations of our GAAP to Non-GAAP Financial Measures are included in the Appendix to this presentation. Definitions of these Non-GAAP
Financial Measures and a description of why we use them can be found on the Investor tab of our website (www.chemtura.com) and in our Second
Quarter 2016 Press Release dated July 28, 2016, also available on our website.
We are unable to reconcile forecasted Adjusted EBITDA and Free Cash Flow estimates to GAAP equivalent estimates without unreasonable efforts
because the information required to forecast the GAAP estimates is not readily available and, therefore, the comparison is not practical.
Adjusted EBITDA
Last Twelve Months (LTM) Adjusted EBITDA
Free Cash Flow
LTM Free Cash Flow
Presenters
Craig Rogerson
Chairman, President and Chief Executive Officer
Matthew Sokol
Director, Investor Relations and Corporate Development
3
IPP $148
IEP 84
ACM 36
Segment operating income $268
General corporate expense, including amortization (58)
Facility closures, severance and related costs (2)
(Loss) gain on sale of business (1)
Impairment charges (2)
Pension settlement (162)
Total $43
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Summary of Last Twelve Months (LTM)1 Financial Information
GAAP Financial Information
LTM Net Sales
LTM Operating Income
LTM Depreciation & Amortization
LTM Net Earnings, Cash from Operations & Capex
LTM Non-Cash Share-Based Compensation Expense
Industrial Performance Products $1
Industrial Engineered Products 1
Agrochemical Manufacturing -
Corporate 10
Total $12
Net earnings (loss) $35
Net cash provided by (used in) operating activities $134
Capital expenditures ($86)
Industrial Performance Products (IPP) $856
Industrial Engineered Products (IEP) 713
Agrochemical Manufacturing (ACM) 129
Total $1,698
IPP $29
IEP 44
ACM 4
Corporate 11
Total $88
1 Last Twelve Months as of June 30, 2016
2 Agrochemical Manufacturing includes $38 million in LTM Net Sales and LTM Operating Income related to non-cash amortization, net of accretion, from a below-market contract
associated with the post-divestiture supply of product
3 Net of an after-tax pension settlement charge of $129 million arising from the First Quarter, 2016 pension annuity transaction
4 LTM Cash from Operating Activities includes a $35 million contribution made to our US Qualified Pension Plan as a result of our pension annuity transaction in the First Quarter of
2016
2
2
3
4
Company Snapshot
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Business Reporting
Segments Industrial Performance Products
Industrial Engineered Products 2
Chemtura By the Numbers
4 Business Units Petroleum Additives
Urethanes
Great Lakes Solutions
Organometallics Specialties
2,500 Employees Worldwide
$1.7billion
LTM 2016 Net Sales
#20 Global Production
Facilities
$270million
LTM 2016 Adjusted
EBITDA2
$970+million
Cash Returned to Shareholders Since 2011
Top Decile In Safety Performance3
80+ Countries Where We Do Business
$48million
LTM 2016 Free Cash Flow1
1 Non-GAAP financial measure. LTM Free Cash flow includes $35 million contribution to our US Qualified Pension Plan in pension made in connection with our pension annuity
transaction in First Quarter 2016. See Appendix for a reconciliation of Cash Flow from Operating Activities to Free Cash Flow
2 Non-GAAP financial measure. See Appendix for reconciliation of Net Earnings (Loss) to Adjusted EBITDA
3 American Chemistry Council Responsible Care® Company Safety Incident Rates for Medium Sized Companies
55% Sales outside
North America
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Actions taken to streamline and focus portfolio to drive shareholder value
Industrial Engineered Products
Great Lakes Solutions | Organometallics
Business Reporting Segments:
Core Specialty Chemical Portfolio
IEP Industrial Performance Products
Petroleum Additives | Urethanes IPP
Off-shore pipe protection bend stiffeners / restrictors
Oil transportation line pigging
Drilling equipment components
Mining sieves, screens, scraper blades and liners
Structured wheels / airless tires
High performance seals, valves, pistons, hoses and belts
Industrial rollers in printing, paper and steel industries
Electronics: CMP pads for semi-conductors manufacture
High performance military applications
Urethanes
Petroleum Additives
Drive line fluids across the transportation segment
High performance engine oils
Turbine fluids
Control valve hydraulic fluids
Gear oil for wind turbines and industrial gearboxes
Refrigerant compatible lubricants
Specialty grease in transportation and heavy industry
High performance military applications
Building blocks for active ingredients in fine chemicals
Catalysts in the chemical industry
Completion, fracking and work-over fluids in the oil & gas sector
Flame retardants (FRs) in printed wire board (circuit boards)
FRs for electronics connectors
FRs in electronics and appliances enclosures
FRs in cable/wire insulation
FRs in polystyrene rigid foam insulation for building construction
FRs in specialty textile coatings
Great Lakes Solutions
Specialized single-site catalysts for polyolefin polymerization
Traditional Ziegler-Natta catalysts
Metal organic chemical vapor deposition (MOCVD) materials
Tin intermediates for pharma, PVC and glass coatings
Photovoltaic coating materials
Fine Chemical intermediates and specialties
Rubber and paint catalysts
Organometallics Specialties
SELECTED PRODUCTS & APPLICATIONS
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Segment Overview
32%IEP
13%AM
55%IPP
42%IEP
50%IPP
8%
AM
Petroleum Additives
Urethanes
Great Lakes Solutions
Organometallics
CORPORATE SEGMENT:
LTM 2016 Stewardship (public company cost, corporate management) and legacy costs were $225 million2 on an Operating Income basis and
$40 million on an Adjusted EBITDA basis.
LTM Business Segment
Net Sales – $1,698 Million
LTM Business Segment
Operating Income – $268 Million1
1 Excludes Corporate Segment
2 LTM 2016 Corporate Operating Expense includes a $162 million charge associated with our pension annuity transaction reported in the First Quarter of 2016
Agrochemical Manufacturing
LTM Business Segment
Adjusted EBITDA – $310 Million1
42%IEP
57%IPP
1%AM
Rewarding Our Shareholders
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Over $1 Billion in targeted cumulative share repurchases
We continue to repurchase our stock at attractive prices
(1) As of June 30, 2016
$61 Million
REMAINING1
$22 million
$41 million
$95 million
$862 million
CUMULATIVE OPEN MARKET PURCHASES
2011 2012 2013 2014 2015
$719 million
$972 million
Q2 2016
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Exploit Our Differentiated Technology
Increasing customer demand for unique lubricant additives driven by market growth and
increasing regulatory requirements
Continued evolution to Emerald InnovationTM flame retardants
Take advantage of growing demand for bromine based chemistries in fine chemicals
Adiprene® LF Urethane Prepolymers and Ultralast® Thermoplastic Polyurethanes
Single-site polymerization catalysts offer enhanced performance
High purity metal organics for fast growing LED and other electronic applications
Leverage secular growth opportunities for our chemistries
Sales force effectiveness and other commercial excellence initiatives drive volume growth
Rapid market adoption of synthetic lubricant base-stocks and finished fluids
Maximize return from recent new capacity investments
Invest in further capacity and innovation
Maintain best-in-class safety and environmental stewardship
Sustainable and consistent results
Adjusted EBITDA margins approaching 20%
Consistent free cash flow generation
Long term leverage of 2X Adjusted EBITDA
Value creating repurchase of our common stock
Disciplined, accretive M&A
Profitably Grow Our Businesses
Deliver Shareholder Value
2016 Priorities
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REGIONAL GROWTH
Through Building Local
Presence and Utilizing
Global Scale
PERFORMANCE
Through a Performance
Driven Culture
PORTFOLIO
Continuing the
Transformation
TECHNOLOGY
Growth Through
Industry Focused
Innovation
› Focus on innovation and
technology
› Differentiation through
technology
› Investing in sustainable
technologies and
applications
› Expand global footprint and
infrastructure
› Increased exposure to
faster growing regions
› Regional shared service
centers enable cost and
strategic flexibility
› Continuous improvement
› Accountability
› Greater customer intimacy
and focus
› Sustainability
› Cost-Out
› Actively managed portfolio
to optimize value
› Sharpened focus on
Transportation, Electronics
and Energy markets
› Leadership and
organizational teams
experienced in M&A allows
us to move quickly and
decisively
Achieving our vision by focusing on:
Our Strategic Building Blocks
CONTINUE TO BE OUR STATEGIC BUILDING BLOCKS IN 2016 AND BEYOND
IPP: Key Revenue and Margin Growth Drivers
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Leveraging increasing customer demand with broad based portfolio of Lubricant Additives
› Inhibitors (antioxidants)
› Detergents and Friction modifiers
› Corrosion inhibitors and Anti-wear additives
Benefiting from growth in usage of Synthetic Lubricants
› HVPAO base-stocks
› Gear oils for wind turbines & industrial gearboxes
› Refrigerant compatible lubricants
Driving Commercial and Operational Excellence
› Focus on customer intimacy, executions and value creation
› Managing “price-over-raws”
› Incremental opportunities to reduce costs
› Innovation and continuous improvement
Positioned to deliver repeatable organic growth
Secular growth from increasing Regulation
› Increasing CAFE standards
› Reducing emission targets
› Hydrochlorofluorocarbon (HCFC) phase-out in Refrigerants
Developing Urethane products to meet customer performance needs
› ULTRALAST™ TPU demonstrated resilience and strong price: performance ratio
› Duracast® unparalleled performance benefits
IEP: Key Revenue and Margin Growth Drivers
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Continuing to introduce next generation Emerald InnovationTM products
› Emerald InnovationTM 3000 benefits from full market conversion in EPS/XPS foams
› Next generation products for connectors market
Diversifying applications for Bromine and Bromine Derivatives
› Fine chemical brominated intermediates
› Leverage strong relationships and geographic diversity for clear brine fluids
› Mercury control as utilities comply with MATS regulations
Driving Commercial and Operational Excellence
› Focus on customer intimacy, executions and value creation
› Manufacturing cost and productivity improvements in Bromine and Organometallics
› Driving for GLS margin recovery through increased selling prices
Leveraging 2015 Business Improvements
Diversifying Organometallics applications
› High purity MOCVD agents used in the production of high brightness LEDs and Photovoltaics
› MAO single site catalysts
› Octyl tin products
• Plant to be closed
Asia/Pacific
LTM 2016
Net Sales
22%
Europe/Africa
LTM 2016
Net Sales
30%
Latin America
LTM 2016
Net Sales
3%
North America
LTM 2016
Net Sales
45%
› 55% of LTM 2016 Net Sales outside North America
› Operate 20 manufacturing sites in 11 countries
North America
El Dorado, AR
Mapleton, IL
East Hanover, NJ
Fords, NJ
Perth Amboy, NJ
Gastonia, NC
Elmira, Canada
West Hill, Canada
EMEA
Latina, Italy
Bergkamen, Germany
Accrington, UK
Trafford Park, UK
Ankerweg, The
Netherlands
Asia/Pacific
Nantong, China
Nanjing, China*
Kaohsiung, Taiwan
Hyeongok, South Korea
Latin America
Rio Claro, Brazil
Altamira, Mexico
Reynosa, Mexico
Manufacturing Plants
by Region
Post-transformation global footprint
Geographic Diversity to Support Growth Initiatives
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Industrial Performance Products
$ in millions and Adjusted EBITDA as a % of Net Sales1
Industrial Engineered Products
Petroleum Additives and Urethanes
› Reduced raw material input costs accelerated margin expansion
› Have invested in the business team, business processes and
execution skills to lay the foundation for revenue and margin
growth
› Shortage of a key raw material constrained HVPAO capacity
utilization in 2015, but have now secured new source of supply;
working to regain customer base
› Expanding Inhibitor capacity to support growing customer demand
› The secular trends of the substitution of traditional lubricants with
synthetics and regulation driving lower emissions and higher MPG
› Nantong, China plant should cover fixed costs in 2016 but volume
growth rate depends on strength of Chinese economy
Great Lakes Solutions and Organometallics
› Bromine sales price increases combined with lower raw material
input costs led margin recovery in 2015; pricing levels sustained
through 1H 2016
› Substantial benefit in 2015 and 1H 2016 from manufacturing and
SG&A cost reductions
› Great Lakes Solutions continuing diversification from electronics
through growth from insulation foam, intermediates, fine chemicals
and mercury control applications
› Organometallics improved asset utilization, upgraded portfolio mix
and won additional contracted volume that creates attractive
baseload scenario
2013 – LTM 2016 Segment Operating Income & Adjusted EBITDA Trend
RECENT IMPROVEMENT LED BY COMMERCIAL EXECUTION AND COST REDUCTION EFFORTS
$55
$16
$58 $84
$99
$63
$107
$130
0
40
80
120
160
200
240
2013 2014 2015 LTM 2016
Operating Income Adjusted EBITDA
1 See Appendix for reconciliation Operating Income to of Adjusted EBITDA
$109 $106 $141 $148
$140 $141
$170 $178
0
50
100
150
200
250
300
350
2013 2014 2015 LTM 2016
Operating Income Adjusted EBITDA
14.3% 14.3%
19.2% 20.8%12.3%
7.9%
14.8%18.2%
Financial Performance Summary
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Adjusted EBITDA(1) Net Sales
Capital Expenditures Free Cash Flow2,3
( $ in Millions ) ( $ in Millions and % of Net Sales )
( $ in Millions ) ( $ in Millions )
(1) Last Twelve Months as of June 30, 2016
(2) Non-GAAP Measure. See Appendix for reconciliation of Net Earnings (Loss) to Adjusted EBITDA
(3) Non-GAAP Measure. See Appendix for reconciliation of Cash Flow from Operating Activities to Free Cash Flow
(4) Free Cash Flow includes contributions to pension and post-retirement benefits of $57 million (2013), $49 million (2014), $31 million (2015) and $40 million (LTM
2016)
(5) LTM 2016 excludes a $35 million cash contribution made to our US Qualified Pension Plan as a result of our pension annuity transaction in the First Quarter of
2016
$2,231 $2,190
$1,745 $1,698
$0
$500
$1,000
$1,500
$2,000
$2,500
2013 2014 2015 LTM 2016
$170
$113
$80 $86
$0
$50
$100
$150
$200
2013 2014 2015 LTM 2016
$281 $262
$237 $270
12.6% 11.9%13.6%
15.9%
$0
$100
$200
$300
$400
$500
2013 2014 2015 LTM 2016
$(91)
$(191)
$79 $83
-$250
-$200
-$150
-$100
-$50
$0
$50
$100
$150
2013 2014 2015 LTM 20165
Maintaining a Strong Balance Sheet
$0
$200
$400
$600
$800
$1,000
2013 2014 2015 Jun-16
$0
$20
$40
$60
$80
2013 2014 2015 LTM 2016$0
$100
$200
$300
$400
$500
16-'17 2018 2021
Outstanding Debt Interest Expense Maturity Profile
$26M
Other
$250M ABL
(Undrawn)
$450M 5.75%
Senior Notes
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Long term gross leverage target remains 2X Adjusted EBITDA. As of June 30, 2016, Total Debt/Adjusted
EBITDA was 1.8 times. Total Debt less Cash/Adjusted EBITDA was just over 1 times
Repaid all but $1 million of our Term Loan in the Second Quarter, 2016
Over $350 million of available liquidity including undrawn $250 million Asset Based Revolver
Flexible debt covenants and full access to Capital Markets
Cash interest expense has declined due to refinancing and debt repayments using divestiture net cash
proceeds
2016 Outlook
Extend progress we made in 2015, improving margins and earnings
power
Delivered $145 million of Adjusted EBITDA in the first half of 2016 –
anticipate comparable performance in the second half of 2016
Execute on our growth initiatives
Continue focus on cost control and commercial and operational
excellence
Drive our portfolio strategy to transform Chemtura by adding scale
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$100+million
Targeted Free Cash Flow in 20161
20% Targeted Increase in Adjusted EBITDA 2016 vs. 2015
1 Excludes a $35 million cash contribution made to our US Qualified Pension Plan as a result of our
pension annuity transaction in the First Quarter of 2016
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IR CONTACTS:
Matthew Sokol, Director, Investor Relations and Corporate Development
Daniel Murray, Senior Investor Relations Analyst
Investor Relations Tel: 1.203.573.2153
http://investor.chemtura.com, or
http://www.chemtura.com
NYSE / EURONEXT: CHMT
Investor Relations