w. r. grace & co
DESCRIPTION
W. R. Grace & Co. . COMPANY OVERVIEW Presented by Larry Marchman Global Director of Credit. Grace Fast Facts (NYSE: GRA). 2011 Grace Sales. 2011 sales of $3.2 billion True specialty chemicals business High value, high margin product portfolio Strong franchises in large, global markets - PowerPoint PPT PresentationTRANSCRIPT
1
November 12, 2012
COMPANY OVERVIEWPresented by Larry MarchmanGlobal Director of Credit
W. R. Grace & Co.
2
27%
5%7%
19%10%
32%
31%
27%
42%
Grace Fast Facts (NYSE: GRA)
2011 sales of $3.2 billion
True specialty chemicals business High value, high margin product portfolio
Strong franchises in large, global markets
Global leadership positions Number 1 or 2 in over 75% of 2011 sales
Catalysts Technologies#1 in FCC catalysts#1 in resid hydroprocessing catalysts#1 in independent polyethylene catalysts#2 in independent polypropylene catalysts
Materials Technologies#1 in specialty silica gel#1 in can sealants
Construction Products#1 in cement additives#2 in concrete admixtures
Operations in over 40 countries
2011 Grace Sales
2011 Grace Sales by Region
$3.2 billion
$3.2 billion
Catalysts Technologies
Construction Products
Materials Technologies
North America
Western Europe
Eastern Europe
Middle East & Africa
Asia Pacific
Latin America
3
Global Headquarters Columbia, MD, USA
22
2
5
2
5
2
44
2
Grace Around the World
Recent Investments Hydroprocessing catalyst capacity in the Middle East with Kuwait Catalyst Company Polypropylene catalyst capacity in Europe and U.S. for global supply Silica capacity in Brazil and Malaysia Specialty construction chemicals investments in Asia, Latin America, and the Middle East Specialty building materials acquisitions in China and Europe
Global headquartersKey officesRegional headquarters93 manufacturing sites44 R&D/Tech Service sites
44 © 2012 W.R. Grace & Co.
Summary Profile
CatalystsTechnologies
$1.3 billion sales (2011) Addressable Sector Size:
$16B, growing at 5-6% Industries
Energy and Refining Plastics, Petro- and
Biochemicals
Product Lines Refining Technologies Advanced Refining
Technologies (ART) JV Specialty Catalysts &
Process Technologies
5 © 2012 W. R. Grace & Co.
Summary Profile
MaterialsTechnologies
$0.9 billion sales (2011) Addressable Sector Size:
$6B, growing at 4-6% Industries
Industrial Consumer Coatings Pharmaceutical Packaging
Product Lines Engineered Materials Discovery Sciences Darex Packaging
6
Key ApplicationsMATERIALS TECHNOLOGIES
We provide enabling technologies for many of the consumer and industrial products you use every day – invisible, but you would see, feel and taste the difference without them
Garage
Tire [reinforcer]
Golf club[casting binder]
Shoes [rubber additives]
Toothpaste [abrasive]
Cosmetics [thickener]
Aerosol can [coating]
Pharmaceutical [drug formulation]
WashroomKitchen
Spices[free-flow]
Furniture[coating]
Appliances[matting agent]
Vegetable oil [purification]
Beer[clarification]
Soda can [can coating and sealant]
Window [desiccant]
Photos[digital printing]
Silica gel Packaging Precipitated silica Colloidal silica Molecular sieves
Water bottle[closure sealant]
Silica excipients
7 © 2012 W. R. Grace & Co.
Summary Profile
Construction Products
$1.0 billion sales (2011) Sector Size: $8T,
growing at 5-6% Industry Segments
Commercial Industrial Residential
Product Lines Specialty Construction Chemicals Specialty Building Materials
8
ICTF Conference
Country Approved Maximum Terms – LATIN AMERICA
Country Risk Net Approved Terms (DAYS)
Argentina High Net 45
Barbados Low Net 30
Bolivia High Net 30
Brazil Low Net 60
Chile Low Net 30
Colombia Low Net 60
Costa Rica Low Net 30
Domnican Republic Moderate Net 60
Ecuador High Net 60
Guatemala High Net 45
Honduras High Net 30
Mexico Low Net 60
Nicaragua High 0
Panama Moderate Net 45
Paraguay Moderate Net 30
Peru Moderate Net 60
Trinidad, Tobago Low Net 30
Uruguay Low Net 30
Venezuela High Net 30
9
ICTF Conference
• DSO YTD Average 82 Days
• Best Possible DSO 45 Days
• Average Days Delinquent 37 Days
• Past Dues 12%
Argentina
Net 30 60 Days BOL
Net 45 Net 60 Net 20 Net 90 Cash with Order
Net 120 Net 150%
5%
10%
15%
20%
25%
30%28%
17%15% 14%
10%
6% 5%3% 3%
% of Sales by Payment Term
Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-1265
70
75
80
85
90
72
78
7576
81
7779
82
8683 83 83
Argentina DSO Trending
0%
5%
10%
15%
20%
25%
30%
7%
23%
9% 8%10%
8%6%
11%
15%
18%
10%
25%Argentina Past Due Trending
10
ICTF Conference
• DSO average 75 Days
• Best Possible DSO 54 Days
• Average Days Delinquent 21 Days
• Past Dues 11%
Oct-11
Nov-11
Dec-11
Jan-12
Feb-12
Mar-
12
Apr-12
May
-12
Jun-12
Jul-1
2
Aug-12
Sep-12
0102030405060708090
100
6778 74
8593
82
6470
5768
75
90
Chile DSO Trending
Chile
Net 60 Net 30 Net 75-Draft
Net 75 Net 60-Draft
Net 80 Net 90-Draft
80% 30, 20% 45
Net 45 Net 90 Net 45-Draft
0%
10%
20%
30%
40%
50%
60%
52%
18%
6% 6% 6% 4% 3% 2% 1% 1% 1%
% of Sales by Payment Term
Oct-11
Nov-11
Dec-11
Jan-12
Feb-12
Mar-
12
Apr-12
May
-12
Jun-12
Jul-1
2
Aug-12
Sep-12
0%
5%
10%
15%
20%
25%
30%
10%
26%
13% 14% 12%
5%
10%
5%
10%
14%
19%
13%
Chile Past Due Trending
11
ICTF Conference
• DSO average 56 Days
• Best Possible DSO 42 Days
• Average Days Delinquent 14 Days
• Past Dues 10%Net 30 Net 60 Net 30 BOL Net 45 Net 90 Net 7 Net 60 BOL Cash in Advance
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%46%
24%
13%
8% 6%2% 1% 1%
% of Sales by Payment Term
Colombia
Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-120
10
20
30
40
50
60
70
8073
56
38
53
6460
5158
51 51 52
63
Colombia DSO Trending
Oct-11
Nov-11
Dec-11
Jan-12
Feb-12
Mar-
12
Apr-12
May
-12
Jun-12
Jul-1
2
Aug-12
Sep-12
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
7%6%
10% 10%
13%
6%
12%
18%
3%
10%
16%
10%
Colombia Past Due Trending
12
ICTF Conference
• DSO Average 67 Days
• Best Possible DSO 51 Days
• Average Days Delinquent 16 Days
• Past Dues Average 16%
Oct-11
Nov-11
Dec-11
Jan-12
Feb-12
Mar-
12
Apr-12
May
-12
Jun-12
Jul-1
2
Aug-12
Sep-12
58
60
62
64
66
68
70
72
74
70
67
63
6768
66
7170
63
66
70
64
Mexico DSO Trending
Mexico
Net 60 Net 30 Net 45 Net 90 Net 120 Cash in Advance0%
10%
20%
30%
40%
50%
60%54%
31%
9%
3% 2% 1%
% of Sales by Payment Term
Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12May-12 Jun-12 Jul-12 Aug-12 Sep-120%
5%
10%
15%
20%
25%22%
21% 21% 21%
18%
13%
20%18%
15%14%
10%
16%
Mexico Past Due Trending
13
ICTF Conference
• DSO YTD Average 90 Days
• Best Possible DSO Average 58 Days
• Average Days Delinquent 32 Days
• Past Dues Average 7%
Peru% of Sales by Payment Term
Oct-11
Nov-11
Dec-11
Jan-12
Feb-12
Mar-
12
Apr-12
May
-12
Jun-12
Jul-1
2
Aug-12
Sep-12
0
20
40
60
80
100
120
9079 82
9484 89 94 94
10691
7986
Peru DSO Trending
Oct-11
Nov-11
Dec-11
Jan-12
Feb-12
Mar-
12
Apr-12
May
-12
Jun-12
Jul-1
2
Aug-12
Sep-12
0%
2%
4%
6%
8%
10%
12%
14%
16%
13%
9%
3%
11%
7% 7%
15%
1%
4%
12%
2%
9%
Peru Past Due Trending
Net 60 Net 30 Net 75-Draft
Net 75 Net 60-Draft
Net 80 Net 90-Draft
80% 30, 20% 45
Net 45 Net 90 Net 45-Draft
0%
10%
20%
30%
40%
50%
60%
52%
18%
6% 6% 6% 4% 3% 2% 1% 1% 1%
14
ICTF Conference
• DSO YTD Average 66 Days
• Best Possible DSO Average 34 Days
• Average Days Delinquent 32 Days
• Past Dues Average 35%
Venezuela% of Sales by Payment Term
Oct-11
Nov-11
Dec-11
Jan-12
Feb-12
Mar-
12
Apr-12
May
-12
Jun-12
Jul-1
2
Aug-12
Sep-12
0102030405060708090
100
5161
7283
8978
6860 61 60
5161
Venezuela DSO Trending
Oct-11
Nov-11
Dec-11Jan
-12
Feb-12
Mar-
12
Apr-12
May
-12
Jun-12
Jul-1
2
Aug-12
Sep-12
0%
10%
20%
30%
40%
50%
60%
70%
80%
23%30%
59%54%
68%62%
45%
20%13%
29%
12% 15%
Venezuela Past Due Trending
Net 30 net 60 Cash with Order
Net 90 Net 15 60 Days BOL Net 450%
10%
20%
30%
40%
50%
60%
70%
80%
90%
78%
11%5% 3% 2% 1% 1%
15
Latin America DSOICTF Conference
Dutch Antille
s
Argentina
Aruba
Barbad
os
Bolivia
Chile
Colombia
Costa Rica
Dominican Rep.
Ecuad
or
Guadeloupe
Guatemala
HondurasHaiti
Cayman Isl
ands
Marti
nique
Mexic
o
Nicarag
ua
Panama
Peru
Paraguay
El Sa
lvador
Trinidad,Tobag
o
Uruguay
Venezuela
0
40
80
120
160
30
8246 30
156
7556 44
159
8961
136
5491
43
159
67 79112
90 92
2962
11066
DSO Latin America 2012 YTD Average
Dutch Antille
s
Argentina
Aruba
Barbad
os
Bolivia
Chile
Colombia
Costa Rica
Dominican Rep.
Ecuad
or
Guadeloupe
Guatemala
Honduras Haiti
Cayman Isl
ands
Marti
nique
Mexic
o
Nicarag
ua
Panam
aPeru
Paraguay
El Sa
lvador
Trinidad
,Tobag
o
Urugu
ay
Venezuela
0
20
40
60
3045
3044
27
5442 39
59 5950 56 59
3043
22
51
29 34
58
279
59
30 33
Best Possible DSO
Dutch Antilles
Argentina
Aruba
Barbad
os
Bolivia
Chile
Colombia
Costa Rica
Dominican Rep.
Ecuador
Guadeloupe
Guatemala
Honduras Haiti
Cayman
Islan
ds
Marti
nique
Mexic
o
Nicarag
ua
Panam
aPeru
Paragu
ay
El Sa
lvador
Trinidad
,Tobag
o
Uruguay
Venezuela-40
0
4080
120160
037
16
-15
130
21 14 5
100
30 11
81
-4
61
0
137
1650
7832
6519 3
8032
Average Days Delinquent
16
BRICS – Brazil, Russia, India, China and South Africa
ICTF Conference
17
BrazilICTF Conference
Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-1235
36
37
38
39
40
41
42
43
40
3839
38
4041 40
4341
40
41 41
Brazil DSO Trending
Net 28 Net 30 Net 60 EOM
Net 35 Net 45 Net 45 BOL
40% 30 days, 30%
45days 30% to 60 days
Net 40 Net 21 Net 10 Cash in Advance
Net 7 0%
5%
10%
15%
20%
25%
30%
35%
40%37%
15%11%
9%7% 6%
2% 2% 2% 2% 2% 1%
% of Sales by Payment Term
• DSO YTD Average 40 Days
• Best Possible DSO Days
• Average Days Delinquent Days
• Past Dues 3%
-2%
-1%
0%
1%
2%
3%
4%
5%
6% 5%
2% 2%2%
1%
4%
3%
4%4%
4%
-1%
2%
Brazil Past Due Trending
18
Russia
Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-120
10
20
30
40
50
6054 54
43
52
2935
4944
4953
4952
Russian Federation DSO Trending
-10%
-5%
0%
5%
10%
15%
20%
25%
5%8%
4%
21%
0%
-2%-1% 0%
1%
-5%
-1%
-4%
Russian Federation Past Due Trending
Net 45 Net 60 End of Month
Net 90 Net 30 30 Days Receipt of
Goods
5% Disc Advance Payment
Cash in Advance
30 Days EOM
30 Days BOL
Nt 15 3% Disc Advance Payment
0%
5%
10%
15%
20%
25%
30%
35%
40% 37%
19%17%
10%
5% 4% 3% 2% 1% 1% 1%
% of Sales by Payment Term
• DSO YTD Average 46 Days
• Best Possible DSO Average 49 Days
• Average Days Delinquent -3 Days
• Past Dues Average 7%
19
India
• DSO YTD Average 71 Days
• Best Possible DSO Average 56 Days
• Average Days Delinquent 15 Days
• Past Dues Average 5%
% of Sales by Payment Term
Cash Aga
nst Docu
ments
Net 45 Day
s
D/A 60 Day
s
Net 60 Day
s
D/A 30 Day
s
D/A 60 day
s EOM
Net 90
D/P at
Sight
Letter o
f Cre
dit
L/C 45 Days
D/A 90 Day
s
Cash Aga
inst Docs
L/C 90 Day
s
Cash in
Advance
Net 30
L/C 60 Days
L/C 45 Days
Bill of L
ading
30 Days B
OL date
0%
10%
20%
30%
40%
50%
60%52%
10%5% 5% 4% 3% 3% 2% 2% 2% 2% 2% 1% 1% 1% 1% 1% 1%
Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-120
10
20
30
40
50
60
70
80
90
65 6864 67
79
6168 71 74 73 70
78
India DSO Trending
Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-120%
2%
4%
6%
8%
10%
12%
6%
10%
3%
5% 5%
4%
7% 7%5%
3%4%
8%
India Past Due Trending
20
ChinaICTF Conference
• DSO YTD Average 88 Days
• Best Possible DSO 45 Days
• Average Days Delinquent 43 Days
• Past Dues 10%
Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12May-12 Jun-12 Jul-12 Aug-12 Sep-120
102030405060708090
100
77 80 7783 86
94 93 88 89 88 87 88
China DSO Trending
Net 60
Cash in
Advance
Net 30
31 Days E
OMNet 9
0
Letter o
f Cre
dit
Net 45
L/C 30 Day
s, BOL D
ate
5th of 2
nd Next M
onth
Net 15
Net 5
D/A 30 days
L/C 60 Day
s, BOL Date
25th of N
ext M
onth
L/C 60 day
s
Net 60 EOM
30% Advance
, Net 3
00%
5%
10%
15%
20%
25%
30%
35% 33%
15% 14%
8% 8%5%
3% 2% 2% 2% 1% 1% 1% 1% 1% 1% 1%
% of Sales by Payment Term
Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12May-12 Jun-12 Jul-12 Aug-12 Sep-12
-10%
-5%
0%
5%
10%
15%
20%
25%
2%
-4%
4%
19%
14%
20%
8% 7%
3%6% 7%
5%
China Past Due Trending
21
South Africa
• DSO YTD Average 48 Days
• Best Possible DSO Average Days
• Average Days Delinquent Days
• Past Dues Average 9%
% of Sales by Payment Term
Oct-11 Nov-11 Dec-11 Jan-12 Feb-12Mar-12 Apr-12May-12 Jun-12 Jul-12 Aug-12 Sep-120
10
20
30
40
50
60 54
4347
52 53
45 4843
46 45
5550
South Africa DSO Trending
Net 30 Net 45 31 Days EOM
30 Days BOL
Net 60 60 Days BOL
Net 75 90 Days BOL
Net 60 EOM
2% 10 Net 45
0%
5%
10%
15%
20%
25%
30% 28%
23%21% 20%
3%1% 1% 1% 1% 1%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
40% 36%
3% 5%
17%
9%
-6%
5%8%
3%7%
27%
6%
South Africa Past Due Trending
22
Larry MarchmanGlobal Director of CreditW. R. Grace & Co.
Lawrence Marchman is the Global Director of Credit for W. R. Grace & Co., a $3.2 billion global leader in specialty chemical manufacturing. Mr. Marchman concentrates on optimizing the turnover of worldwide trade receivables, and formulating and managing the company’s global credit policy while continually driving process improvements in the order-to-cash cycle.
His accomplishments include working capital optimization and generating efficiencies through compliance and risk management. He has led Six Sigma Revenue Chain workout sessions in Europe, Asia and South America, as well as the United States.
Prior to Grace, Mr. Marchman held senior credit management positions with large manufacturing companies, including Becton Dickinson and International Paper Company.