Inorganic Pigments World market leader in iron oxide pigments

Transcription

1 Inorganic Pigments World market leader in iron oxide pigments Jörg Hellwig, Head of Business Unit Inorganic Pigments Cologne, November 5 th, 2015

2 Inorganic Pigments at a glance Segment Performance Chemicals Proportion of current sales Key figures Production capacity: ~375,000 t/a* Employees: ~2,000 Customers: ~5,000 IPG Products & brands Products: ~1,100 Product groups: Iron oxide (red, yellow, black, brown); Chromium oxide (green) Main brands: Markets & competition Market share: drivers: Competitors: ~35% in iron oxide pigments; leading position in chromium oxide pigments Urbanization, sustainability Chinese producers, Huntsman, some regional producers * incl. new site in Ningbo 2

3 Excellent strategic position in key end markets worldwide Wide range of applications #1 position in all regions Sales by end market in % Sales by region in % Other Paper Plastics Techn. applications LATAM 7% Paints & Coatings Asia/Pacific 21% North America 23% Construction Top 10 customers represent ~20% of sales EMEA 49% 3

4 Strong global production network Branston, UK Burgettstown, US Vilassar de Mar, ES Porto Feliz, BR Krefeld-Uerdingen, DE Sydney, AU Shanghai (Taopu), CN Shanghai (Jinshan), CN Ningbo, CN* Krefeld-Uerdingen/Germany as backbone of pigment business with 90 years experience New site in Ningbo increases already strong production footprint in China Sophisticated logistics network allows full utilization of all assets Integrated sites (chemical production of pigments and mixing & milling) Blending sites (mixing & milling) * Start of production Q

5 IPG uses full value chain of iron oxide pigment production Synthesis Sieving & washing Drying/ calcination Milling & color adjustment Packaging Laux process Precipitation process Penniman/ Ningbo process Integrated production sites (synthesis and blending) Blending sites (mixing and milling) 5

6 IPG contributes to a more balanced and resilient LANXESS portfolio Inorganic Pigments 6

7 Stable EBITDA margin and broad portfolio Stable EBITDA pre margin Broad portfolio EBITDA pre margin Q3 LTM Very stable EBITDA pre margin (+/- 2%pts) with low volatility even in crisis years Recent realignment improves cost structure High quality products for many applications in diverse industry setup Wide diversification in color applications (construction, paint & coatings, plastics, paper cosmetics, etc.) Growing portfolio for technical applications (toners, biogas desulfurization, li-ion batteries for e-cars, arsenic adsorbers, catalysts etc.) Diversification and innovation fosters long-term resilience 7

8 Excellent global distribution network resulting in #1 position in all key markets and regions EMEA Americas Asia/Pacific World 35% market share globally IPG Deqing Huntsman Yipin Yixing Cathay Other Chinese companies Europe remains global stronghold for IPG Good positioning in APAC s key countries and segments #1 position in US with ongoing growth opportunities Bubble size indicates sales volume by producer and region 8

9 Strong cash generation [ m] EBITDA pre Cash flow approximation * Capex 2015 Investment peak for Ningbo plant High profitability underlying profitability IPG as significant cash contributor for many years IPG as significant cash contributor for many years Further capex plans to allow further sales and EBITDA growth Financing capex projects on its own Further capex plans to allow further sales and EBIT * Before changes in working capital and M&A 9

10 Sustainability is key competitive advantage Changes in iron oxide industry Stronger environmental regulation accelerates market consolidation in China IPG growth in China Net Sales (k ) CAGR ~12% Significant shutdowns of competitors in China in the last 18 month and ongoing Environmental problems in China cause tight supply of iron red oxides globally Lower output of remaining yellow and black capacities due to general labor shortages and further environmental restrictions LTM Sales Tightening environmental regulations in China are major driver for changes 10

11 Highest environmental standards at the sites Krefeld- Uerdingen, Germany Innovative waste recycling process High efficiency in resource handling Massive plant automation allows high quality output and cost efficiency Porto Feliz, Brazil Co-generation plant using renewable feedstock CO 2 neutral production of energy Independence from external energy resources Jinshan, China State-of-the-art waste water treatment Reduced emissions due to improved energy utilization Investments in automation ongoing 11

12 New plant in Ningbo sets new standards for sustainable production globally IPG in China high quality red iron oxides Ningbo as benchmark for sustainable iron oxide production Completely new technology developed by IPG ( Ningbo process ) New process using innovative energy conservation, waste water and off-gas treatment processes to minimize emissions Extending the BAYFERROX product portfolio with bright, yellow-shade reds for specialized end markets Key data Start-up on schedule: Q Capex: ~ 60 m Production capacity red pigments: 25kt/a Mixing & Millling capacity: 70kt/a Employees:

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