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January 2012

Creativity Performance Stability. January 2012.

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January 2012

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  1. Creativity Performance Stability January 2012

  2. This presentation may contain certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 concerning the business, operations and financial condition of Rockwood Holdings, Inc. and its subsidiaries (“Rockwood”). Although Rockwood believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, there can be no assurance that its expectations will be realized. "Forward-looking statements" consist of all non-historical information, including the statements referring to the prospects and future performance of Rockwood. Actual results could differ materially from those projected in Rockwood’s forward-looking statements due to numerous known and unknown risks and uncertainties, including, among other things, the "Risk Factors" described in Rockwood’s 2010 Form 10-K with the Securities and Exchange Commission. Rockwood does not undertake any obligation to publicly update any forward-looking statement to reflect events or circumstances after the date on which any such statement is made or to reflect the occurrence of unanticipated events. Forward Looking Statements

  3. Representing Rockwood Seifi Ghasemi Chairman & Chief Executive Officer of Rockwood since November 2001 • Director of the Main Board of GKN plc, a $6 billion global industrial company (1997-2001) • Chairman and CEO of GKN Sinter Metals and Hoeganes Corporation • Employed with the BOC Group plc (now part of The Linde Group) from 1979-1997, a $7 billion global industrial gas company • Director of the Main Board of The BOC Group, plc; President of BOC Americas and Chairman & CEO of BOC Process Plants and Cryostar • M.S. in Mechanical Engineering from Stanford University

  4. Representing Rockwood Robert J. Zatta Senior Vice President & Chief Financial Officer since April 2001 • Previously employed by the Campbell Soup Company (1990-2001) and held a variety of senior level finance positions including VP, Corporate Development and Strategic Planning • Prior to Campbell, worked for General Foods Corporation (Philip Morris / Kraft) and Thomas J. Lipton, Inc. • B.S. in Business Administration and M.B.A. in Finance Timothy McKenna Vice President Investor Relations & Communications since April 2006 • Previously Senior Vice President, Investor Relations, Communications and Government Relations, for Smurfit-Stone Container Corporation, the largest North American producer of paperboard and packaging, headquartered in Chicago • Previously 14 years in investor relations and communications with Union Camp Corporation, a producer of paper, packaging and chemicals • B.A. degree in mathematics, with minors in German and English, from Montclair State University, and an M.A. in linguistics from New York University

  5. Rockwood Today • Global inorganic specialty chemicals and advanced materials company • LTM net sales of $3,653 million (9/30/11) • LTM Adjusted EBITDA of $821 million, 22.5% of net sales • Q3 Adjusted EBITDA margin of 24.1% of net sales • Established in 2000 • Public as of August 2005 • Traded on NYSE - ROC Note: Numbers exclude the AlphaGary business sold Note: Where non-GAAP measures are used throughout this presentation, see Appendix for reconciliations between the non-GAAP measure and the most comparable US GAAP measure.

  6. Key Features of Rockwood • Excellent portfolio of niche businesses - No. 1 or No. 2 market position globally - Technology leaders - Limited exposure to oil prices • High margin businesses, 22.5% of net sales • Generating excellent free cash flow - $320M in 2010 and $276M in the last twelve months ended September 30, 2011 • Established track record as a public company since 2005 • Significant improvement in balance sheet since 2008, net debt/LTM Adjusted EBITDA of 1.67x as of September 2011 • Excellent opportunities for organic growth • Leading global producer of lithium products

  7. Rockwood Business Sectors – LTM September 2011 Net Sales: $3,653M Adjusted EBITDA: $821M % Margin: 22.5% Specialty Chemicals PerformanceAdditives TiO2 Pigments Advanced Materials Net Sales: $1,328M Adj. EBITDA: $343M % Margin: 25.8% Net Sales: $930M Adj. EBITDA: $228M % Margin: 24.5% Net Sales: $777M Adj. EBITDA: $141M % Margin: 18.1% Net Sales: $586M Adj. EBITDA: $182M % Margin: 31.0% Note: Numbers exclude the AlphaGary business sold

  8. Lithium Brine Evaporating Ponds in Chile Largest Global Producer of Lithium Products Largest Global Producer of Lithium Products Pharmaceutical Batteries

  9. Surface Treatment Chemicals Second Largest Global Producer of Lithium Products Second Largest Global Producer of Products & Services for Metal Processing

  10. Performance Additives • Global Ranking No2 • No2 No2 Pigments Timber Treatment Clay-Based Additives

  11. TiO2 Pigments • Global Ranking No1 Anatase TiO2 TiO2 Pigments TiO2 Specialties/Nano Particles

  12. Advanced Materials Ceramics – Piezo Applications Ceramics – Medical Ceramics – Electronic Applications Ceramics – Cutting Tools

  13. Attractive Global Businesses in Diversified End-Markets 2010 Net Sales by End Market Total : $3.19 billion Note: Numbers exclude the AlphaGary business sold

  14. Attractive Global Businesses in Diversified End-Markets 2010 Net Sales by Geography

  15. Steady Growth and Strong Adjusted EBITDA Margins Net Sales Adjusted EBITDA • ($ in millions) • ($ in millions) Margin: 20.0% 19.5% 18.9% 19.6% 19.2% 20.3% 18.7% 18.4% 19.9% 22.5% Note: Reflects the divestitures of Groupe Novasep, electronics and AlphaGary businesses. 2002-2004 pro forma for the Dynamit Nobel acquisition. 2002 PF based on the combined Dynamit Nobel FYE 9/30 and Rockwood FYE 12/31 results. 2008 on a proforma basis including bolt-on acquisitions.

  16. Key Features of Rockwood • Excellent cash generation • Free cash after capital expenditures, interest expense, working capital changes and cash taxes ($ in millions) 320.3 301.6 276.4 175.9 127.8 123.1 95.0 Note: Numbers do not reflect the sale of AlphaGary Includes changes in accounts receivable, inventories, prepaid expenses, accounts payable, income taxes payable and accrued expenses. All figures net of the effect of foreign currency translation and impact of acquisitions and divestitures. Represents current portion of income tax provision. Interest expense, net minus deferred financing costs and MTM of Swaps. CAPEX net of proceeds on sale of property, plant and equipment.

  17. Net Debt/LTM Adjusted EBITDA

  18. [$M] 2008 2009 2010 LTM Sept 2011 @ actual rates Net Sales 3,137.4 2,769.4 3,191.6 3,653.2 Adj. EBITDA 608.6 509.9 634.4 820.7 Margin 19.4% 18.4% 19.9% 22.5% Note: Total Rockwood: Continuing Operations only Total Rockwood – Net Sales & Adjusted EBITDA

  19. Consolidated Net Debt

  20. History

  21. Rockwood History 2001 Net Sales $743M Adjusted EBITDA $140M Net Debt/Adjusted EBITDA 6.9x

  22. Strategy & Management Philosophy

  23. Corporate Strategy

  24. Management Philosophy • Small corporate center • Self-sufficient and accountable business units • Detailed operating metrics • Short term incentive plan based on cash generation • Long term equity plan for key executives • On-site communication and motivation of all employees

  25. History ($ in millions) We have evolved into a leading specialty chemical and advanced materials company through a combination of organic growth, disciplined strategic acquisitions, seamless integration and cost control. Net sales as reported – not on a proforma basis for acquisitions or divestments

  26. Change company culture Service the debt and live within the covenants Grow through acquisitions to +$3.0B net sales Take company public First 5 Years – 2001-2005    

  27. Second 5 Years – 2006-2010  • Optimize portfolio • Execute bolt-on acquisitions to strengthen the core businesses • Improve Adjusted EBITDA margin to 20% of net sales • Pay down debt to strengthen the balance sheet. Goal of 3.0x times net debt/Adjusted EBITDA.   

  28. Last 10 Years – 2001-2010 • 22 acquisitions and 7 divestitures to build Rockwood • Focus on • Culture change • Innovation • Organic growth • Productivity • Building a global team

  29. Last 10 Years – 2001-2010 We have built a first-rate, global inorganic specialty chemicals and advanced materials company with an established track record. We have delivered what we promised.

  30. Moving Forward2011-2015

  31. Rockwood Performance Q3 & YTD (a) The constant currency effect is the translation impact of the change in the average rate of exchange of another currency to the US dollar for the applicable period as compared to the preceding period. The impact relates primarily to the conversion of the Euro to the US dollar.

  32. LTM Net Sales Trend – Total Rockwood [$K] @ Constant Currency(a) (a) The constant currency effect is the translation impact of the change in the average rate of exchange of another currency to the US dollar for the applicable period as compared to the preceding period. The impact relates primarily to the conversion of the Euro to the US dollar.

  33. LTM Net Sales Trend – Specialty Chemicals [$K] @ Constant Currency(a) (a) The constant currency effect is the translation impact of the change in the average rate of exchange of another currency to the US dollar for the applicable period as compared to the preceding period. The impact relates primarily to the conversion of the Euro to the US dollar.

  34. LTM Net Sales Trend – Performance Additives [$K] @ Constant Currency(a) (a) The constant currency effect is the translation impact of the change in the average rate of exchange of another currency to the US dollar for the applicable period as compared to the preceding period. The impact relates primarily to the conversion of the Euro to the US dollar.

  35. Residential Investment (Percentage of GDP)

  36. LTM Net Sales Trend – Titanium Dioxide Pigments [$K] @ Constant Currency(a) (a) The constant currency effect is the translation impact of the change in the average rate of exchange of another currency to the US dollar for the applicable period as compared to the preceding period. The impact relates primarily to the conversion of the Euro to the US dollar.

  37. LTM Net Sales Trend – Advanced Ceramics [$K] @ Constant Currency(a) (a) The constant currency effect is the translation impact of the change in the average rate of exchange of another currency to the US dollar for the applicable period as compared to the preceding period. The impact relates primarily to the conversion of the Euro to the US dollar.

  38. Strategic Goal – Third 5 Years – 2011-2015 Maximize shareholder value

  39. Moving Forward – Third Five Years – 2011-2015 Focus Portfolio • Focus on our core businesses • Global market position of #1 or #2 • Global technology leadership • Adjusted EBITDA margin of +22% Focus Portfolio Focus On Growth • Invest heavily in organic growth +5% per year • Bolt-on acquisitions: +3% per year Focus On Growth & Productivity • Net Debt to Adjusted EBITDA of less than 2.0x in two years • Further reduction in future years • EPS growth of +20% per year Improve Financial Ratios Improve Financial Ratios Invest in The Business Transportation Revolution • Position the lithium business for the coming transportation revolution (electric cars)

  40. Diversity. Flexibility. Results. LITHIUM: The Driver of the Coming Transportation Revolution

  41. Lithium – Selected Applications

  42. Lithium Growth + 10% CAGR in Last 10 Years • Significant growth of lithium ion batteries for cell phones, laptop computers and other mobile communication devices, • Penetration of lithium ion batteries for mobile power tools (drills, etc.), • Pharmaceutical applications, • and • Alloys in aerospace structures.

  43. Sources of Lithium • Minerals – spodumene • High cost, environmental issues • Salt form (brine pools) • Lowest cost, environmentally friendly • Embedded in hard clay • High cost, difficult to extract

  44. Lithium Value Chain Li-tri (t-butoxy)- alanate Li-Acetylide Phenyl- lithium Li- Chromate Li- Alanate LHS LDA Methyl- lithium Li-Tetra- borate Li- Hydride LiBOB Butyl- lithium Li- Amide Li- Silicate Li- Perchlorate Lithium Metal Li- Nitride Li-t- Butoxide Li- Methoxide Li- Phosphate Li- Iodide Foils Li- Nitrate Sabalith Lithium Chloride Li- Fluoride Li- Salicylate Anodes Li- Sulphate Li- Zeolite Li- Bromide Li- Citrate Lithium Carbonate Li- Peroxide Li- Benzoate Life-Science Products Li- Acetate Li- Hydroxide Potash Metal and Battery Products Brines CO2- Absorption Products Bischofite Other Products

  45. Operations in Chile

  46. La Porte, TX, USA New Johnsonville, TN, USA Langelsheim, Germany Silver Peak, NV, USA Taichung, Taiwan Kings Mountain, NC, USA Antofagasta, Chile Rockwood Lithium Facilities Around the World

  47. Expansion 2005 2002 2006 2008

  48. Lithium compounds will experience significant growth due to the introduction of all electric and plug-in hybrid electric vehicles. WHY?

  49. Dependence on imported oil from unstable regions of the world is a clear and present danger to the national security and economic stability of the developed economies of the world.

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