synthomer plc a focused speciality aqueous polymer business
Transcription
synthomer plc a focused speciality aqueous polymer business
SYNTHOMER PLC A FOCUSED SPECIALITY AQUEOUS POLYMER BUSINESS SEPTEMBER 2014 2 Key Facets of Synthomer’s Aqueous Polymers Business • Our products typically provide one or both of two critical functions – Provide a barrier – Bind or stick two or more components together • We don’t sell a chemical – we sell a formulation – Intimate knowledge of customers’ products/production process AND frequently their customers’ products/production process – Significant technical service element to sales – Deep “know-how” required to be successful • 50% water – Logistics costs rapidly become a significant proportion of total cost – Need to manufacture close to customers – “In Built” defence mechanism to “Out of Region” competitors • Range of polymers – We have the broadest range of aqueous polymers of all of our major competitors 3 A Balanced Portfolio Supported by a Strong Polymer Technology Platform with Global Reach Relative Growth Potential Sales Health & Protection 20,2% Carpet, Compounds & Foam 19,3% Health & Protection (HP) Construction & Coatings (CC) Construction & Coatings 23,9% Paper 16,4% Performance Polymers 7,3% Functional Polymers 12,9% 2013 Sales: £1,054.9m Paper Performance Polymers (PP) Functional Polymers (FP) Carpet, Compound & Foam (CCF) EBITDA Margins Diameter of bubble is proportional to sales 4 SBU Sales Split Carpet, Compounds & Foam Binding and backing of tufted and other carpets, foam backed carpets, automotive and artificial grass. Foams for mattresses, pillows and shoes. Health & Protection Medical, clean room and industrial gloves, medical devices (e.g. catheters), condoms and other dipped latex goods. Paper Coated paper and paperboard, finecoated paper, lightweight coated paper, food packaging and other specialty paper grades. Construction & Coatings Construction Cement and mortar modification, bitumen modification, concrete repair systems and plasticisers, bonding aids, primers, flooring and construction adhesives, liquid applied membranes, flexible roof coatings, sealants and primers. Coatings Acrylic and Vinyl Acetate copolymers for walls (interior and exterior), gloss/semi-gloss emulsion paints, plasters/textured finishes, flexible wall coatings, wood paints and stains, anticorrosion paints, industrial coatings and water-based fillers. Performance Polymers Lithene® - for various automotive applications in electrical insulation and sound dampening. Alcotex - Polyvinyl alcohol used as a stabilising material in the PVC polymerisation process. Polyvinyl Acetate - for solvent adhesives, Polyester resins and composites. Inorganic (non-Polymer) Specialties - for catalysts, flame retardants and other niche applications. Functional Polymers Non-woven fabrics, insulation, textile coatings, printing, gaskets, masking tapes, specialty non-graphic papers, abrasives, tyre cord, pressure sensitive adhesives, packaging and wood adhesives. 5 A Wide Range of Polymers to a Wide Range of End Uses SBU Paper Carpet, Compounds & Foam Health & Protection Construction & Coatings Functional Polymers Performance Polymers Chemistry XSBR HS-SBR XNBR Acrylic & Vinyl Dispersions Other Compounds CR, NR CR, Alkyd & UPE resins CR, VP-SBR PVOH, PVAC, LPBD, metal salts 6 Creating Value – Our Strengths Innovative technology • Sell a unique formulation, not a chemical • Strong focus on aqueous polymers • Customer collaboration and alignment driving innovation Application diversity • High exposure to global mega-trends • Formulation in applications all around us • Over 4,000 customers across the word Manufacturing excellence • Highly cost effective production capabilities • Fast and commercially focused R&D • World class people • Flexible supply chain Global foot print • European engine room enabling investment in Asia • Emerging market exposure (37% of 2013 sales) • Local production sites: high water content of aqueous polymers excludes ‘out of region’ competitors 7 Synthomer Manufacturing Footprint Oss (Netherlands) Hasselt (Netherlands) Oulu (Finland) Stallingborough (UK) Ossett (UK) Langelsheim (Germany) Accrington (UK) Marl (Germany) Harlow (UK) Atlanta (USA) Worms (Germany) Milan (Italy) Filago (Italy) Dammam (Saudi Arabia) 10th of Ramadan City (Egypt) Shanghai (China) Guangzhou (China) Dubai (UAE) Ho Chi Minh City (Vietnam) Kuala Lumpur (Malaysia) Kluang (Malaysia) Pasir Gudang (Malaysia) Johannesburg (South Africa) Durban (South Africa) Sales Production 8 Synthomer Profit Development Operating Profit £m 120 110 100 90 80 70 60 50 40 30 20 10 0 2006 2007 2008 2009 Restated Underlying Group Operating Profit 2010 2011 2012 2013 PolymerLatex Pro-forma Adjustment 9 Sales by Geography – Destination Basis 2013 Sales: £1,054.9m Asia 28% East Europe and ROW 5% West Europe 54% South Africa and Middle East 9% Americas 4% 10 Growing Sales to Developing Markets 2013 Sales by Destination 2013 Sales by Origin Europe and North America 72% Asian Capacity ‘000MT/yr Asia and Rest of World 28% Asia and Rest of World 37% Europe and North America 63% 500 450 400 350 300 250 200 150 100 50 0 2006 2007 2008 2009 2010 2011 2012 2013 11 Building on Our Strengths for Future Growth • • • Key Strengths Strategy STRUCTURAL STRONG MARKET POSITIONS Exposed to global mega-trends High water content excludes “out of region” competitors Sell a formulation not a chemical GEOGRAPHIC • • • Emerging markets exposure • 37% of sales by destination Proximity to customers European “engine room” enabling Asian growth • CRITICAL ENABLERS Financial Capital and Human Capital LEVERAGE TO DRIVE “EM” GROWTH • • • 4,000 customers • Largest = 1.4% of sales • Top 20 = 18.6% of sales Broad product range Re-invest strong European cash flow and state of the art “knowhow” Utilise our existing management strengths in Asia and MEA INVESTING IN INNOVATION DIVERSITY • No. 1 or 2 position in our markets • No.1 Global Nitrile Latex producer • No.2 Aqueous Polymer producer in Europe • • • Our products are naturally “green” Intimate customer knowledge R&D and Technical Service to drive growth AND margins 12 Synthomer’s Exposure to Global Mega-Trends Category Mega-Trend Synthomer’s Leverage 1. Demographics 1.1 Population Growth • Large and growing developing world exposure 1.2 Rising Wealth in Emerging Markets • As personal wealth rises, spending on the home increases 1.3 Urbanization • Many of our products essential in modern construction 2.1 Resources & Energy • Numerous products for use in insulation applications 2.2 Environmental Protection • Aqueous Polymers replace solvent based Polymers 3.1 Health & Ageing • Health and Protection business unit growing strongly • Intimate customer knowledge and specifically formulated products support individualisation • Localised product ranges based on core technology 2.Resource Constraints 3. Needs Efficiency 3.2 Mobility 3.3 Global Information 3.4 Individualisation 13 Urbanisation and Energy Efficiency Anti Carbonisation External Insulation Systems Integral Insulation Systems Wood joinery Coatings Cool Roof Water Proof Membranes Cool Roof 14 Recent Product Launches - Examples • Elastomeric binder for roof coating applications • High performance binders for interior and exterior coatings • Tile adhesives for use in low emission systems • Acrylic binder for low emission outdoor coatings • Coater ready PSA for roof insulation foils • PSA grade for speciality tapes • Self cross-linking nitrile dipping latex • High stress-relaxation nitrile dipping latex • Lithene® Ultra • Fourth Generation nitrile dipping latex • APEO free coating polymers in emerging markets • Bio-polymer latex for paper coatings 15 Appendices • Sales by Chemistry • Market Position Examples 16 Sales by Product Chemistry (by sales value) Latex 49% Dispersions 22% Nitrile 34% Compounds 5% Specialities 24% SBR 66% 17 Latex Market Position Carpets & Foam SBR Latex and compounds for carpets, pillows and mattresses No 1 in Europe in SBR No 1 in Europe in Compounds No 1 Worldwide in HS-SBR Construction & Textiles SBR Latex for cement additives, textiles and glass fibre insulation No 1 Worldwide Dipped Goods Nitrile Latex for thin wall protective gloves and industrial gloves No 1 Worldwide Paper SBR Latex for coated paper & board No 2 in Europe 18 Dispersions Market Position Paint Decorative, speciality and industrial No 1 in UK, Middle East, S Africa and Malaysia No 4 in Europe Adhesives Construction Pressure sensitive labels and tapes, packaging and wood glues No 1 in UK, Middle East, and Malaysia Building adhesives and sealants, cement additives No 1 in UK, Middle East No 3 in Europe No 3 in Europe 19 Specialties Market Position Alcotex Speciality Polyvinyl Alcohol for use as a suspension agent in PVC polymerisation No 1 Worldwide Lithene Liquid Polybutadiene for automotive sealants, electronic encapsulants, printing plates and specialist coatings No 2 in Europe and USA Lipren/ Pyratex Speciality water-based polymers for protective gloves, contact adhesives, tyre cord adhesive Focused niche player END Summer 2013