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June 10-11, 2009. 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

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June 10-11, 2009


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    Presentation Transcript
    1. June 10-11, 2009

    2. 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

    3. Who is Rockwood Holdings All-electric vehicles (EV) and plug-in hybrid vehicles (PHEV) are the best way forward to address energy independence Key enabling technology: the further development of Li-ion batteries Rockwood capabilities in lithium The world has sufficient lithium resources Agenda

    4. Rockwood at a Glance • Global specialty chemicals and advanced materials company • 2008 net sales of $3.4 billion • 2008 Adjusted EBITDA of $639 million (17.9% margin) • Free cash of $174 million in 2007 and $101 million in 2008 • $18.9 million free cash in Q1 2009 • Traded on the New York Stock Exchange (NYSE) - ROC

    5. Key Features of Rockwood • Outstanding portfolio of businesses • Excellent free cash generation • Established track record • Experienced and motivated management team • Excellent long term growth potential in lithium business

    6. Rockwood Business Sectors – LTM March 2009 ($ millions) Net Sales: $3,196 Adjusted EBITDA: 579 % Margin: 18.1% Specialty Chemicals (Chemetall) Pigments & Additives Advanced Materials Net Sales: $1,146 Adj. EBITDA: 283 % Margin: 24.7% Net Sales: $1,342 Adj. EBITDA: 176 % Margin: 13.1% Net Sales: $704 Adj. EBITDA: 163 % Margin: 23.1% 12 months ended 03/31/09 – excluding Pool and Spa Chemicals

    7. 46% (1) Specialty Chemicals (Chemetall) Brine Evaporating Ponds in Chile Largest Global Producer of Lithium Products Largest Global Producer of Lithium Products Pharmaceutical Batteries (1) Represents percentage of total Adjusted EBITDA before corporate costs.

    8. Lithium Growth Potential • Lithium Ion batteries for: • Consumer electronics • Hand tools • Electric and hybrid cars of the future • Pharmaceutical applications: • Organo-metallic compounds

    9. 46% (1) Specialty Chemicals (Chemetall) Second Largest Global Producer of Lithium Products Second Largest Global Producer of Products & Services for Metal Processing (1) Represents percentage of total Adjusted EBITDA before corporate costs.

    10. Compelling Organic Growth Platforms Specialty Chemicals

    11. 28% (1) Pigments and Additives • Global Ranking No2 No1 Anatase TiO2 No2 No2 Pigments TiO2 Pigments Timber Treatment TiO2 Specialties/Nano Particles Clay-Based Additives • Represents percentage of total Adjusted EBITDA before corporate costs.

    12. Compelling Organic Growth Platforms Pigments & Additives

    13. 27% (1) Advanced Materials Ceramics – Piezo Applications Ceramics – Medical Ceramics – Electronic Applications Ceramics – Cutting Tools (1) Represents percentage of total Adjusted EBITDA before corporate costs.

    14. Compelling Organic Growth Platforms Advanced Materials

    15. Attractive Global Businesses in Diversified End-Markets 2008 Net Sales by End Market Environmental 2% Consumer Paper Products Other 2% 2% Specialty 8% Life Coatings Sciences 9% 10% Automotive 14% Metal Treatment & General Industrial 17% Electronics & Telecommunications 10% Construction Chemicals & 14% Plastics 12% Total : $3.4 billion Note: Continuing Operations Only.

    16. Attractive Global Businesses in Diversified End-Markets (update) 2008 Net Sales by Geography Total : $3.4 billion Note: Continuing Operations Only. Net Sales by geography based on Ship-to Locations.

    17. Inorganic Raw Material Base Limited Exposure to Energy Prices • Top 10 raw materials represent only 9.5% of 2008 net sales Raw Material Position RAW MATERIAL BUSINESS % OF 2008 NET SALES Titanium-bearing Slag Titanium Dioxide Pigments 1.6% Plasticizer Specialty Compounds 1.2% Tin Specialty Chemicals 1.1% Copper Timber Treatment Chemicals 1.0% Quaternary Amines Clay-based Additives 1.0% Phosphoric Acid Specialty Chemicals/Timber 0.9% PVC Resin Specialty Compounds 0.8% Iron Oxide Color Pigments 0.8% Monoethanolamine Timber Treatment Chemicals 0.6% Zinc/Zinc Oxide Specialty Chemicals, Titanium Dioxide 0.5% Pigments, Color Pigments Total 9.5% Energy Exposure • Energy purchases account for approximately 5% of 2008 net sales • Very limited exposure to oil price fluctuations due to inorganic focus

    18. $174 $147 $133 $123 $101 2005 2006 2007 2008 3/31/09 LTM Key Features of Rockwood • Excellent Cash Generation • Free cash after capital expenditures (capital, interest expense, working capital changes and cash taxes)

    19. Key Features of Rockwood • Established Track Record • ($ in millions) Net Sales Adjusted EBITDA CAGR: 10.9% CAGR: 11.5% Margin: 19.7% 19.0% 18.6% 18.9% 18.6% 19.6% 18.9% Note: Reflects the Groupe Novasep divestiture. 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. 2007 excludes electronics business. 2002-2006 includes electronics. 2008 excludes Pool & Spa Chemicals.

    20. Net Debt/LTM Adjusted EBITDA

    21. Key Features of Rockwood • Experienced and Motivated Management Team • Current team has been in place since 2001 • Built Rockwood from $650 million/year in 2001 to $3.4 billion in 2008 • Management owns 6% of the company

    22. Current installed electric generating capacity is sufficient to support conversion of all cars to EV or PHEV The US could save almost 7.5 million barrels of oil a day with an EV/PHEV strategy This shift would reduce US dependence on oil from the Middle East—eliminating a major security issue and providing economic and environmental benefits All-electric (EV) and Plug-in Hybrid Electric Vehicles

    23. To convert on a large scale to practical EVs and PHEVs we need increased energy storage capability, i.e., much larger, more efficient Li-ion batteries Li-ion batteries for mobile phones, laptops and other portable electronics are fully developed and commercialized All major players are focused on this technology Key Enabling Technology—Li-ion Batteries

    24. Rockwood believes that EV and PHEV development is a very attractive alternative to address energy independence, environmental and national security issues facing the US Rockwood has the resources and advanced technology to produce the advanced lithium products to achieve the auto industry’s goals There are enough lithium molecules to support the conversion to EV and PHEVs Rockwood’s Strategic Position

    25. Lithium – Selected Applications

    26. Lithium Carbonate Demand for Batteries—Historical and Forecast Rockwood estimate of Li-Carbonate demand based on IIT data on KW-hour demand Million lbs Li carbonate

    27. Lithium Products for Battery Industry

    28. Market Developments

    29. HEV/PHEV/EV Market Growth – IIT Report (March 2009) Vehicles per year (000)

    30. Lithium Value Chain Comments • Providing lithium compounds throughout all stages of the value chain • Constant expansion due to new applications • Optimization according to customer needs 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

    31. Estimation of Lithium Carbonate Demand 2020

    32. Estimation of Lithium Carbonate Demand 2020

    33. Estimation of Lithium Carbonate Demand 2020

    34. # cars (MT p.a.) Estimation of Lithium Carbonate Demand 2020 @ 1.6% market penetration Scenario A—many Teslas(EVs): 10,000 tons/22 million lbs/yr Scenario B—many S400s (HEVs): 5,000 tons/11 million lbs/yr

    35. # million cars (thousand MT p.a.) Estimation of Lithium Carbonate Demand 2020 @ 10% market penetration Scenario A—many Teslas(EVs): 60,000 tons/132 million lbs/yr Scenario B—many S400s (HEVs): 30,000 tons/66 million lbs/yr

    36. Estimation of Lithium Carbonate Demand 2020

    37. Estimation of Lithium Carbonate Demand 2020

    38. Estimation of Lithium Carbonate Demand 2020

    39. Sustainability of Worldwide Resources Salar de Atacama resources will completely satisfy global market needs for at least the coming hundred years • Salar de Atacama resources: 31,5 million MT LCE • For • Scenario A (10% penetration): reserves will last for 216 years • Scenario B (10% penetration): reserves will last for 271 years • Worldwide available resources: 150 million MT LCE • For • Scenario A (10% penetration): reserves will last for 1030 years • Scenario B (10% penetration): reserves will last for 1293 years

    40. Rockwood believes that EV and PHEV development is a very attractive alternative to address energy independence, environmental and national security issues facing the US Rockwood has the resources and advanced technology to produce the advanced lithium products to achieve the auto industry’s goals There are enough lithium molecules to support the conversion to EV and PHEVs Rockwood’s Strategic Position