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spk_0: good morning and welcome to overuse per quarter and four year two thousand and twenty two earnings conference call as we turned aside one or participants will be initial the only mode should you need assistance pushing we call from specialist by touching the strategy followed by zero after today's presentational real opportunity to ask questions to ask questions you a press star than one hundred touchstone for to return question please post all them to please note that this event is being recorded i would not like turn a conference over to whoever was a real arrears of russell issues roster please go ahead sir
spk_1: radio operator
spk_2: good morning and welcome to be a third quarter and four year twenty twenty two news conference call we appreciate your time and participation today during the today are some beer battered wife ceo and jim kelly fearful before we continue a friendly reminder that some of her comments today will contain forward looking statements based on our current view of our business an actual future results may differ materially today's call should be considering conjunction with cautionary statements contain in our earnings release and in our most recent polls and that you can a lot of as report the company disclaims any obligate it any obligation to update or revise any such forward looking statements now i will like to turn the go over to some year
spk_3: thank you had out and
spk_4: good morning everyone in our present environment of macro economic uncertainty
spk_2: barbier is in a solid position because that for two thousand and twenty two performance and strong balance sheet in difficult times the value or potential solutions that support lethal security infrastructure resilience connectivity energy efficiency and well being is magnified
spk_4: it is especially important that on today's only gone
spk_2: i efforts take the opportunity to take or twenty three thousand employees for that ownership and ingenuity and showing up for our global customers the last year and continuing to deliver cleaner smarter more efficient solution
spk_5: that improve life today for the model
spk_2: don't we have spread across the globe
spk_4: we are united by our common values
spk_5: and up purpose to advance live together and on behalf of our organization
spk_2: they must express our deep and felt sympathy
spk_5: or and solidarity with the over twenty four million people impacted by the devastating earthquake than turkey and syria the are our colleague family members and friends
spk_2: as albeit operate the number of sites in the region we have immediately mobilized or crisis task force to relocate all be i employee than their families out of harm's way and land a to the surrounding communities we hope for the speedy recovery of the region entered people
spk_6: now turning to three
spk_5: i would like to share a high level overview of our fourth quarter and folio performance for be tied and twenty two and i shared am happy to report that all be delivered funded results for the full year two thousand twenty two
spk_2: and even at feet it the upper end of our annual a big dog guidance
spk_5: during the fourth quarter however we continue to experience the business impact of a challenging macroeconomic and mine inflation rising interest rate increased input costs and effects from the war in ukraine the energy crisis in europe and unfavorable currency translation
spk_2: if the altered and lord year over year profitability for the caught up with degrees event polymer solution building and infrastructure and precision agriculture partially offset by strength and connectivity solution
spk_5: like for both the quarter and a year regenerated significant cash flow and meant maintained a strong balance sheet demonstrating the resilience of our businesses and of strength of our long term fundamentals
spk_2: revenues for the quarter totaled two point one billion dollars which was ten percent below the patio level a bit dull for the quarter to three hundred and eight million dollars a decree the thirty nine percent and ebitda margin was thirteen point six percent which declined by roughly six hundred and eighty nine basis points is the prior yet excluding one time charges the gym their discuss in more detail he big dog or three hundred and forty million in the quarter representing your sixteen point two percent margin finally regenerated pandered and eight million dollars a free cash flow of four million dollar increase compared to the prior year for the full year twenty twenty two revenues daughter nine point six billion dollars an increase of ten percent as compared to twenty twenty one ebitda to be one point nine billion dollars a decree those seven percent compared to the prior year and ebitda margin of nineteen point eight percent a decrease of approximately three hundred and fifty basis points
spk_7: excluding one time charges
spk_2: earlier a big dog was one point nine five billion and margin was twenty point two percent free cash flow for the year was four hundred and sixty six million dollars a decree that nineteen percent related to higher capital expenditures
spk_5: in spite of the difficult operating environment
spk_2: we remain focused on executing a long term strategy for value creation
spk_5: as outlined at or investor day last may we concentrated on three areas investing and profitable growth and innovation maximizing the value of vertical integration
spk_2: and creating shareholder value by being thoughtful stores of capital and disciplined operators as we go to tackle the major challenges of decarbonization and resource security to out solutions
spk_5: the that end i would like to share a few not will be milestones from the quarter as we continue to carry out a plan for long term get
spk_8: in november
spk_3: he joined forces with found way what a joint venture to supply critical materials to the lithium ion battery market in mathematical
spk_6: it's venture that support the largest media production facility in the region
spk_5: while the t badly material
spk_6: for context
spk_5: maybe the earth is a crucial for the polymer and component of the lithium ion battery doesn't in the cathode and the separated
spk_3: albeit is uniquely positioned to add value to this venture with the vertically integrated value chain till the job chlorinated solutions business and baltimore business
spk_5: supplied the necessary materials in combination
spk_9: i'll be as
spk_5: lol medina that it's and production next would be and fault with solar pv of technology innovation will enable delivery of pdf that optimizes energy storage efficiency my including baggy energy density safety and follow
spk_6: the total investment for this joint venture is an estimated eight hundred and fifty million dollars partially funded by a grant to somebody from the us department of energy
spk_10: in addition
spk_4: all be i received a hundred million dollar award
spk_2: from the us department of energy under the president bipartisan infrastructure law which supports domestic manufacturing of batteries
spk_11: battery materials
spk_2: and components for electric lakers and great skill energy storage
spk_5: the ground will enable our fluorinated solutions business
spk_2: to build the first us manufacturing plant for lithium picks up a little phosphate and ip up sticks
spk_5: an essential electrolyte sword use and lithium ion batteries
spk_2: this land will be constructed on the grounds of our existing photochemical production side and san gabriel louisiana
spk_5: following the seat of the world
spk_2: ah floating a good solutions business
spk_5: find a licensing agreement with gone to bangkok or girl
spk_2: bill access control than or goes world class and i'd be of six technology and industry expertise and commotion llp executed option
spk_5: we expect to invest approximately three hundred million dollars in the construction of the land and out and i'd be at six manufacturing operations over the next three years
spk_3: investment and a joint venture are contributing to state of the art lithium ion battery mcgill production supply chain security and competitiveness of the not to medical transportation and energy storage industries
spk_5: no shooting especially to mexico is becoming more prevalent as companies look to reduce dependency on long and uncertain supply chain particularly from asia
spk_2: we expect to continue to invest in materials technology than assets
spk_5: that accelerate renewable power world and as we remain committed to creating sustainable value
spk_2: we expect to remain resilient twelve economic cycles as the implement a long term strategy at this time either turned up all over to jim to go what our financial performance and further detail gym
spk_12: thank you very good morning everyone
spk_2: i so they're like to recognize what our teams accomplished and twenty twenty two despite a challenging macro economic climate our business and functional teams demonstrated incredible agility and dedication to generating value for all of our stakeholders worldwide add to our fourth quarter results and twenty two i'll remind you that we're comparing to one of or be strong as quarters them history it's final quarter of twenty twenty one as you see on flight for on a consolidated basis net revenues were two point one billion dollars down ten percent year over year with lower sales and polymer solutions building and infrastructure and precision agriculture he starts often demand due to call that lockdowns and china as well as weaker and markets do the macro economic turbulence and the ongoing impacts from the war in ukraine
spk_7: in addition evaluations digital currencies particular the euro and the british pound contributed to the year over year decline and revenues
spk_2: in the fourth quarter he bit of three hundred eight million dollars decreased by thirty nine percent year over year with any that are margin of fourteen point six percent which was six hundred and eighty nine basis points below the prior years margin excluding one time change charges you better was three hundred forty million dollars in the quarter which was thirty five percent decrease year over year get any better margin of sixteen point two percent which was six hundred and ten basis points below the prior years margin these christians will largely due to demand slow down across some markets along with higher input costs and palmer solutions doing in infrastructure and precision agriculture partially offset by higher profitability and connectivity solutions the thirty two million dollars of one time items impact either tough for the quarter was primarily comprised of restructuring costs adoption of i a far as guidelines on software accounting acquisition related costs and hyperinflation impacts
spk_6: operating cash flow and free cash flow or five hundred five five hundred fifty five million dollars and three hundred eight million dollars during the quarter reflecting er effective management of working capital
spk_2: this more than offset lower he better and an increase in capital expenditures capital expenditures of two hundred twenty one million dollars increased by ninety nine million dollars in the quarter as compared to the prior year
spk_7: expenditures included ongoing maintenance spending and investments in support of the companies growth initiatives particularly connectivity solutions and building and infrastructure
spk_2: or effective tax rate in the color was one hundred and twenty six point four percent which increased from a rate of forty one point nine percent in the prior year this was mostly driven by one time items including a not deductible impairments of or be a goodwill totaling one hundred and thirty six million dollars in our precision agriculture business this impairment was due to higher discount rates used them the analysis caused by increases and interest rates in the year other factors contributing to the higher tax rate included the strengthening of the mexican peso and additional reserved for uncertain tax positions partially offset by the release evaluation allowances and nontaxable option revaluation benefits we continue to return cash to our shareholders during the fourth quarter through seventy five million dollars of dividends turning to slide five an hour view or sonia results for twenty twenty two
spk_6: on a consolidated basis net revenues were nine point six five billion dollars up ten percent year over year with higher sales across all businesses except for precision agriculture
spk_2: to see increased was driven by strong pricing and palmer's to oceans particularly during the first half of the year robust demand and connectivity solutions and improve pricing and floor unaided solutions abita of one point nine one billion dollars decreased seven percent year over year with any better margin of nineteen point eight percent which was three hundred fifty basis points below the prior years margin excluding one time charges you better was one point nine five billion dollars which was a six percent decrease year over year while either damn margin was twenty point two percent which was approximately three hundred and ten basis points below prior year these decreases were due to softening demand across certain markets in the second half of the year coupled with higher input costs particularly and polymer solutions will a in infrastructure and precision in agriculture partially offset by higher profitability and connectivity solutions and fluorinated solo
spk_13: since operating cash flow and free cash flow were one point one billion dollars and four hundred sixty six million dollars during the year
spk_2: reflecting effective working capital management
spk_7: that's more than offset increased and capital expenditures and higher taxes
spk_13: oh your capital expenditures of five hundred and forty nine million dollars or up seventy seven percent from the prior year
spk_2: expenditures included ongoing maintenance spending and investments in support of the company's got initiatives with the most significant year over year increases in building infrastructure more native solutions and connectivity solutions close the year would net debt of three point one five million dollars and our net debt either da ratio was one point six five times which increased from one point three four times in the prior year this increase was due to higher that balances at year end and the year over year decrease and either done
spk_6: during the fourth quarter we successfully completed offerings short and long term super us notes introducing ten billion pesos into the mexican market with the sustainability linked bond feature
spk_2: pursuits than the issuance will be used to repay short term debt maturity and twenty twenty three to fun growth investments and for general corporate purposes our fact effective tax rate for the year was thirty five point six percent which increased two hundred sixty basis points year over year this increased me effective tax rate was primarily due to same factors that drove the increase in the quarterly right where the full year he returned four hundred and forty two million dollars in cash to our shareholders with two hundred ninety nine million dollars and dividends and a hundred and forty two million dollars in share repurchases turning to slide sex i'll go to our quarterly performance in more detail by business and polymer solutions revenue for the fourth quarter was seven hundred thirty five million dollars a decrease of twenty six percent year over year the street decrease was driven by lower volumes because the slow down and demand and lower prices in general purpose pv sick lower prices reflected increased and product availability as result of high industry operating rates to capture profitability and the core alkali segment this phenomenon was partially offset by higher prices and specialty to be see corrine and caustic soda revenue for the full year with three point seven billion dollars up seven percent year over year as resulted strong prices during the first half of the year as well as higher performance in our special to do the same and core alkali businesses you beat up for the fourth quarter was one hundred and one million dollars a decrease of sixty nine percent year over year with anybody margin up thirteen point seven percent down approximately one thousand eight hundred thirty six patients points as compared to the fourth quarter of the previous year for the full year either dog was eight hundred and four million dollars a decrease of twenty nine percent year over year but any the da margin of twenty one point eight percent down approximately one thousand one hundred twenty three basis points year over year the decreases and a better and on march and were due to lower prices and volumes and general purpose producing and higher feedstock and energy costs particularly in europe this was partially offset by strong pricing and a specialty pvc and poor alkali seconds and building and infrastructure revenues of six hundred sixty one million dollars were down six percent in the fourth quarter driven by lower volumes
spk_13: we think that's what are ticket really prevalent in europe
spk_2: when inflationary cost environment and demand volatility and in brazil from political disruptions and currency devaluation oh dear revenue was two point nine billion dollars which was flat compared to the prior year he better for the fourth quarter was forty seven million dollars a decrease of forty three percent with a margin of seven point one percent down approximately four hundred sixty basis points year over year this decrease was largely due to lower volumes and continued and could cost increases particularly in europe full year a better were three hundred and twenty one million dollars down twenty four percent compared to the prior year ebitda margin came in and eleven percent representing a decrease of approximately three hundred fifty five basis points is decreased was primarily driven by lower volumes as well as continued input costing increases and currency depreciation primarily for me a markets excluding one time items to the restructuring costs and hyper inflationary effects from turkey you better for the quarter was fifty five million dollars and better margin for the quarter was a point four percent this is a decrease of approximately three hundred and thirty three basis points as compared to the fourth quarter of the previous year with a full year excluding is one up items you better was three hundred and thirty million dollars anybody margin was eleven point three percent which was a decrease of approximately three hundred and twenty basis points turning to precision agriculture revenue for the fourth quarter who's two hundred twenty nine million dollars a decrease of fourteen percent year over year this was primarily due to softening demand and many markets and currency devaluation the slowdown in europe was directly related to economic weakness from the war in ukraine and high energy costs into market segments especially the greenhouse segment the slowdown in the us was partly related to continue to start going after an inventory build up during the first half of the year the decreased was partially offset by strength and latin america and turkish oh dear revenue was one point one billion dollars a decrease of four percent year over year he better for the fourth quarter was a lot of support million dollars a decrease of fourteen million dollars year over year excluding sixteen million dollars of one time items to to hyperinflation a legal settlement and newly included corporate service allocations the also be included going forward either for the quarter was twelve million dollars excluding use items ebitda margin was five point two percent down five hundred and sixty basis points as compared to the fourth quarter of the previous year
spk_6: the decrease in a bit off for the quarter excluding one time items was driven by lower demand unfavorable product next and currency devaluation
spk_2: but a full year you better was one hundred and nineteen million dollars down eighteen percent compared to the prior year with a margin of eleven percent a decrease of approximately two hundred basis points year over year excluding twenty five million dollars of one time items you better was one hundred and forty four million dollars and either done margin was thirteen point three percent down approximately one hundred ninety five basis points year over year to decrease in a bit after the full year excluding one time items was due to lower demand unfavorable product next and currency devaluation
spk_7: in performing or annual assessment of or be as good will balances at the end of the year we determined that the goodwill associated with precision agriculture was impaired
spk_2: as a result a charge of one hundred and thirty six million dollars was recorded in the fourth quarter the impairment was due to an increase in the discount rate used to me analysis driven by increases in interest rates during the year connectivity solutions once again achieved strong performance in the quarter with revenues a three hundred seventeen million dollars this represented a seven percent increase year every year supported by investments in production capacity along with growing demand for fiber infrastructure revenues for the phone here will one point four billion dollars an increase of thirty eight percent year over year driven primarily by robots demand eat it up the fourth quarter was eighty four million dollars an increase of one hundred and eight percent you become margin was twenty six point seven percent approximately one thousand three hundred five basis points as compared to the fourth quarter of the previous year excluding one time items due to restructuring cost you better for and a quarter was ninety five million dollars any better margin for the quarter was thirty point one percent at approximately one thousand six hundred fifty basis points to the full year either dad was three hundred fifty seven million dollars up one hundred sixty seven percent with any better margin of twenty six point one percent this was an increase of approximately one thousand two hundred sixty basis points year over year excluding one time items you better for the full year was three hundred sixty eight million any better margin was twenty six point nine percent got approximately one thousand three hundred forty basis points the significantly better growth in connectivity solutions was due to higher revenues and stabilization of material costs it's more native solutions revenues for the quarter of two hundred one million dollars increased by two percent year over year does increase is primarily due to strong pricing across a product portfolio and particularly and refrigerants this was partially offset by lower volumes pull your revenue was eight hundred fifty two million dollars a fifteen percent increase your career driven by strengthen pricing across all product groups and personally upset by lower volumes fourth quarter eat dogs sixty five million dollars a decrease of three percent as compared to the fourth quarter of the previous year ebitda margin or thirty two point one percent down approximately one hundred fifty three basis points year over year he's decreases were due to high input and strategic not cost partly offset by strong pricing across the product portfolio
spk_13: oh deary but hours three hundred five million dollars up twenty five percent year over year
spk_2: i'm either da margin was thirty five point eight percent up approximately three hundred basis points year over year
spk_11: these increases were due to revenue growth including strong pricing which helped upset lower volumes and higher and put and logistics costs
spk_6: in summary despite the volatile market environment during the year or teams remain laser focused on delivering shareholder value through strong operational efficiency and disciplined capital and asset management
spk_14: i'm out to to call back to severe
spk_6: thank you again
spk_5: i am on flight seven at our investor they loved me he shared a strategy for value creation he continue to believe in the resilience of our businesses and have evidence of it and challenging times
spk_2: the a balancing on the other needs diplo you manage costs with a long term commitment to grow our businesses to meet customer needs and generate shareholder value
spk_7: i kinda walked through the quarter and over the years to come through on the strategy
spk_2: in parliament solution
spk_15: he continued to optimize mobility production volumes and maximized to alkali production and sales to take advantage of the positive market environment for those products
spk_2: oh the course of the year
spk_16: the team but hard to minimize variable and fixed costs in order to help offset been created an input costs notably electricity costs and europe and shipping costs
spk_2: and building an infrastructure
spk_5: we kept our focus on productivity operating efficiencies and cost optimization to footprint rationalizations
spk_2: we completed successful integrations of vectors and bowl plumping to capture synergies and expand our reach in india and north america
spk_5: and we continue to see a double digit top line group for my indoor climate system as well as from our urban climate resilient solutions
spk_2: in position agriculture he responded to our demand slowdown in the second half of two thousand and twenty two by maximizing operating efficiency than optimizing costs
spk_5: he continued to implement group projects and target geography is that will support growing an emerging market demand in areas including extensive crops and irrigation services
spk_2: in connectivity solutions we continue to expand our capacity for support group and fiber optic infrastructure and networks we draw the adoption of advanced direct offerings such as micro duct and future bad and completed the integration of brt networks to extend into and to and connectivity services that are filled with india
spk_5: last but not the least infuriated solutions we continue to focus on generating value for my existing assets
spk_2: and invested in downstream value creation
spk_5: in particular be invested in portfolio enhancements including low carbon footprint refrigerant than propellers and next generation lithium ion battery materials
spk_6: during to slide eight i would like to share updates on the progress we've made pertinent to are ambitious sustainability goals
spk_5: the thin ability is centered was itself as a company
spk_17: and accelerating the path to a lead the world as we help our customers achieve that on sustainability commitments
spk_5: if our bottom line in two thousand twenty two the science based targets initiative validated are near term targets
spk_6: to reduce got one two and three greenhouse gas emissions
spk_5: by two thousand and thirty
spk_6: making all be one of the fuel companies in the world who had spp i little goes
spk_5: for all three scott we remain a line with what the world and human guy need to keep temperatures below a one point five degrees centigrade rice we were upgraded in assistant olympics and msc i ratings and two thousand twenty two without i miss the iterating upgraded from be to be
spk_18: double and reflection of our ethical practices and a continuous focus on sustainable performance
spk_5: in addition he received an equal that if gold medal in two thousand and twenty two
spk_19: shut up within a bloody performance
spk_5: we also maintained our place in the dow jones sustainability indices
spk_20: finally
spk_5: and as not a single example of a widespread progress in embedding decarbonization and circularity into a prophecy solution than ah thanks to our customers
spk_21: obviously should agriculture business
spk_2: debited the first ever got them credit program
spk_5: i've repeated get advice the inaugural program seeks to drastically reduce methane emissions from rice cultivation to nearly zero
spk_15: while also providing additional long time income to gloss
spk_5: i consistently embedding sustainability into a structure solutions partnerships and engagement he can achieve profitable good as we have to fill our purpose
spk_22: i've been out on the called back to gym
spk_6: to discuss our family or two thousand twenty three outlook and business lunches
spk_2: that you smell i'm five nine i'd like to introduce our outlook for twenty twenty three broad market uncertainty including impacts of monetary tightening exchange rate volatility inflation challenges and the war in ukraine continue to impact the global environment
spk_6: all of which make our near near term forecasting challenging
spk_11: that said and i'm assuming no significant or unexpected disruptions or be a is a resilient company we've had a good start to the year across all businesses while it's early in the year to get definitive ranges based on where we are we anticipate a flat to mid single digit percentage
spk_2: revenue decline and he better of one point six type billion dollars or higher to twenty twenty three
spk_23: will refine our guidance as the progress its
spk_2: or be is also expect and capital expenditures in the range of six hundred million dollars to seven hundred million dollars for twenty twenty three including three hundred million dollars to three hundred fifty million dollars that mainland standing and three hundred million dollars to three hundred fifty million dollars and of grudge related investments depending on the a
spk_6: underlying economic environment
spk_11: effective tax rate for the year is expected to be between twenty nine percent and thirty two percent
spk_2: as we look ahead into twenty twenty three we expect to see ongoing impact from a challenging macro economic environment least during the first half of the year
spk_6: and you'll continue pro actively manage costs and cash flow
spk_2: i'd like to share some market outlook commentary by business
spk_13: beginning with owner solutions he expected pvc market to prove over the course of twenty thousand three is china reopens and construction markets worldwide stabilize
spk_7: cuisine general purpose tbc prices rebound from the bottom in the start of twenty twenty three and ultimately we expect general purpose ptc prices to settle above pretend i'm iq levels you continue to believe that the industry supply demand balance will remain it for the long term
spk_2: rebuilding infrastructure we expect inflationary cost pressures to the first half of the year with conditions improve improving and the second half energy costs gluten european countries have come down below prewar levels but uncertainty remains we will continue to manage margins and to focus on driving a higher guy yourselves next in this business the precision agriculture mixtape demand for precision irrigation products to strengthen over the course of the year supported by continued investment and technologies that are dressed water shortages worldwide
spk_7: and connectivity solutions we expect continued growth throughout the year supported by favorable market conditions and continued investments and incremental capacity
spk_2: and finally and fluorinated solutions we expect improvements in revenue and profitability across the product portfolio align with market strengthening and new regulations partly offset by incremental costs to invest in long term growth initiatives as we've demonstrated or businesses have been strong across all economic cycles will continue to remain balance in addressing are short term business needs while keeping our long term view and perspective
spk_7: only the company's board of directors has approved and attempt to recommend to shareholders to their approval et orbi of next annual general meeting of shareholders ordinary dividend payments of two hundred forty million dollars payable and for quarterly installments and twenty twenty three am
spk_24: amd and authorization to establish a share repurchase fun to repurchase company shares up to the maximum amount permitted by law
spk_5: tamir i'll join the call back over to you for closing commons tiger gym as be closed out two thousand and twenty two and move into two thousand twenty three our team continues to be optimistic that we can deliver sustainable profitable growth over the long term and create value or are many stakeholders we can do that to executing our strategy continuing to innovate and differentiate that solution and by maintaining our daily focus on operational commercial and financial discipline he can feel all that food and water are plentiful city than community that climate proof connectivity to information is extended everywhere and living clean and green as the way of life for everyone this is the world we're making possible mall at rbl to our work everyday
spk_0: thank you for your continued interest in our company as we take on the toughest challenges and help to advance life around the world operator we're ready to take question that the time i have all have a question answer session kerr ask a question in my purse starving grad on her couch on found if you're using a smoker her way asking a place for up our hands up for facilities
spk_25: rich charlie hodgson class fast armento today's hard question cause for battle sasha off your be us please god hi some your high g i i have on our think farm for get my questions may be my first question of your if you could provide a little bit more good be using the topics breakdown for beaten his make friends or i get for trying to twenty three specially mean be grew from there meant and also good time to start benefits fine for to bash match is it expected for on the twenty three not that they did the gardens already girls that are maybe i do become more clear really or mid or late trend trend for and think on that side to be that they have full my second question regarding the camera location and the company has read about that meant for guy the of for the next few years up to twenty twenty seven as you guys really do for meet the guidance wife and in the short him you plan to continue with strong be been pay man's and share buybacks i think it would be great to hear from you guys as well ah the company's position i mean when we look at that point you should think about them didn't have a year ago flir are in a player
spk_2: where's the focus on what are the did mangos you guys are seeking
spk_4: these are my two questions thank you
spk_5: that's all that thank you for your questions let me take your first question on growth capek you know at investor day last year
spk_2: that outlined you know our five year investment plan and he had ended types of projects in which we would be investing and and that you know that begins your this year and so which is why we gave the guidance of yeah pixel group in the range of three hundred to three hundred fifty million in terms of the projects yeah i anticipate your some spending on our it is the expansion project will mainly on engineering land acquisition type of costs are than the issue engineering and investments required for the allied the of six and pdf projects are somewhat later in the year
spk_7: the eared expansion plans for your alignment of we've announced the building or for a renewed plans to get a line in the western part of united states and canada and that project is the ongoing and then now and then finally we have our indonesia project that we talked about the last year it has led and so
spk_5: these and come over the course of the earth you know i would say model for them the second half of them in the first tough timing of these can be you know somebody variable and baghdad but but i think that's what we can shed at this time
spk_2: in terms of fab
spk_5: our dividends than share buybacks and you know once again in a consistent but what we have said before will we believe that all be or can continue to maintain
spk_26: and as earnings globe potentially it'll grow dividend year over year to this a phase of the next or five years and and given the earnings followed of the company at baseline dividend today as two hundred forty million dollars a year and we see no reason why that's gonna change and
spk_2: as the earnings part of the business evolves and goes in a beaver love you grow that
spk_5: with time
spk_6: in terms of share buybacks our first parody of course will be to invest in a group project
spk_2: but from time to time
spk_5: you know should dad be a b c good opportunities as to buy back stock like lower price you know we deserve that flexibility but i can tell you that our foster priority will be group project so so what i can bring i would classify the company is
spk_2: yeah we are committed to the growth that we shared with you
spk_27: on him mr dean are plans are on track
spk_0: but at the same time yeah all be out your gives a very good diverted and for those investors what patient for the long term and will reap the rewards of a long term investments
spk_28: yeah will be a benefit from the dividends in the interim period i can i was on fire house on the has walkman or morehouse family guy aren't you are more char for cough taking my question stood to to to question questions if i'm i am to my how to talk about their the right down on and in and and nothing of him quite clearly a huge you mentioned the discount rate which which seems sensible but could you talk little bit about or to what degree your your your your it also has to do with the revenue a problem and and and maybe if if if you can provide a bit more color on on on on what's going on wouldn't matter him with this is the second quarter with the the transfuser quite different and and and and so if you can talk address the issue of market share if it's related to the specific market you're in if it's related to innovation so that they are just some color on that of him is is my question number one
spk_2: and a and question number to relate to the pvc expansion you know when when do you think that we we can have know the zip code and day the timing of the in a what what when when do you expect to greenlight bad and start deploying cap access to that specific project thank you very much
spk_13: but a gym thanks were questions i'll start with the other discussion the impairments not a feminine all as samir meditate to talk it over bit more the details of their the market share and and business growth but in terms of the impairments it was entirely due to increase in
spk_29: not interest rates over the course of the year and in their forties have a higher whack and discounting the the future expected results of the the castro the business
spk_28: the the future results continue to be very positive we continue to ever very optimistic view of both not net of them itself as well as the underlying markets that that we support and the really has been no change under some year by year in terms of our our our forecasts our long term view for that business
spk_15: kinder gentler love what can i can i ask just on the market share to you feel that in in net of him today and i am i'm biased the same question last quarter
spk_5: in but but you know is to what degree is just met him a specific and what great the could relate to the marcus that you're in a you losing market share and that of him
spk_2: like i was just about to get more i'm sorry to market
spk_5: in of so you know what happened in the second half of last year
spk_2: is that yeah we had a to effect a significant or was talking in the fourth tough and so many of the dealers will economies weekend
spk_4: oh significantly slowed down their purchases and this was coupled with the you know relatively lower prices in the high value clot the net of place and dad resulted in in a week revenues in the third and fourth quarters
spk_2: what i can tell you as we're off to a pretty good start to the year in that often and as seeing a strong rebound in revenues across all markets and bitches very encouraging so the this you know we are convinced that this is not a net of them specific market share it you know the this is a broader market decline and everybody you know face the same market conditions as we did find out if you see that as a rebound in the united states in your
spk_30: up our market thing turkey china brazil and mexico continue to remain strong in the never experienced a slowdown
spk_5: and yes i'm quite encouraged by the by the start to the yard and that of him and out in israel a couple weeks ago
spk_2: and looking at the
spk_5: you have the the development pipeline the focus on extensive clubs and services yeah i'm quite optimistic about the opportunities ahead of net of them having said that you know the to the long term opportunity the long term opportunity is huge
spk_1: and and we are working to realize the benefits of the opportunity is over the course of the year
spk_2: in in terms of your second question on pdp expansion dining
spk_5: you're right now we're in be the file to engineering favor the project and it'll be a working on you're negotiating incentives with the state
spk_2: we are working on lining up
spk_31: yeah long term supply agreements and yeah we're looking at potential yeah land locations and he had this project will come up for final approval your more towards the end of the gates or real the a the spending that we will have a will be more on the engineering so
spk_0: i'd
spk_32: for this project dad and the the significant capital investments others will not ramp up until the middle of barely twenty four god thank you very much i had on expression cause my heart on cash or if my life was go ahead
spk_13: movement i think your party to make was just so given this quarter you took to spend their detailing long for for for five hundred million dollars about the also said that a portion of started trying to be used to repay some show them that so i was wondering what's the debt level that you're targeting by
spk_2: the end of the year and also lead to that are taken a more brother view in the last couple of years you're gonna it has been increasing and there were no significant acquisitions in disappear so i was wondering if we should read hear that you are running now the company with a higher level as level than in the past aiming human also for the growth opportunity tell you how the hell so maybe that through this upcoming cycle were going to see grass also maybe also metallurgist writing a little bit on your much you realize your growth opportunities
spk_13: no thanks for the question and know and first vala become a done the and to boris we're really excited to be able to issue the other ten billion pesos and the mexican marketed the first time the door be i had gone public and the mexican market in in quite a long time so we're very happy with that is to answer
spk_6: in fact it was that significantly oversubscribed so we're very excited to be able to participate in the market i'm in terms of the use of the proceeds we did indicate that down in a part of it would be used to pay down some short term maturities that would be taken place as well as to fund growth investments that are expected
spk_13: in the course of the coming year and years ongoing as well as you ongoing corporate purposes
spk_2: so i wouldn't say get in general that there's an expectation to be a know to be operating or be at a higher leverage level from an uniformed ongoing period of time we did discuss back at investor day it will be making growth investments over the course of the next to no five to six years at least and that we both that go you know will be continuing to keep our leverage at a net debt to either da range of two point five or thereabouts didn't know we may slightly exceed that personally periods of time as long as we see the possibility and none in the near term to bring it back down to that level but i would say roughly speaking
spk_23: two and a half times net debt to either dog is the target that we would be looking to operate and that's at the highest level
spk_32: so um yeah you live in terms of way out forecast for this particular year we don't go into that level of detail it it's i'd say it's fair to say that there would be a gradual increase in the leverage ratio as we make me investments for growth that we've been talking about as you saw a we do have in the beginnings
spk_0: of the wrap up that damn samir just spoke of later and this year related to the growth investments and the batteries patients well as an rpg expansions in continuing their connectivity solutions expansions those will drive some knives and increases would go through the year but it will be gradual increase toward that dad two and a half
spk_33: times level that that we've been talking about
spk_6: got it thank you very much yeah are not talk or much wasn't for my come from prime her grandma was funny or her
spk_33: a good morning everyone for somebody to come on up from see the a good morning everyone i am i have a question about p c a you are lagging that asian and but you can reopen may be support for margins by would like to get
spk_2: your sense allowed got it's happening they are made of cash a how to respect bill would supplied to go along two thousand and twenty three and if you're seeing cows quick so until nine so the margins been supportive of these expansion abuse he markings on what could be that krieger for these progressive normalization and the second one is if you can't share song in for allowed the cash flow in two thousand and twenty three just looking for some collar working capital cash taxes and all us thanks and they said thank you for your question your and then the comment on your p the feet and as we had shared earlier you know the the precipitous decline and bbc prices that before the second half of last year was largely a supply shock phenomenon in are driven by covert locked down in china
spk_5: and yet the the significant exports from the us at very low prices to be or to maintain a caustic soda your in profits
spk_7: now what you have seen in the past couple months is that these prices have rebounded in a very significant way you know from the bottom of the attitude that export prices at achieved a bottom of around six hundred fifty or done even the domestic prices were still in the range of fourteen hundred fifteen hundred a done
spk_2: and what you thing that the at full price for that rebounded to the nine fifty thousand dollars but done range and what i can say is you know markets worldwide are coming back but slowly date for years that even in the for or less than strong demand you're think prices going up and a third party due to some supply issues which again really emphasizes are point all along that didn't industry is operating at very high utilization rate and the slightest deception than supply can have a disproportionate impact on pricing now we've seen some retreat and posted for a places worldwide from the beak and they are answer those that don't have retreated to some extent but still nowhere close to the level they used to be a year and a half or two years ago chlorine place of continue to remain high and ghost one of the things you're in the united states air that will actually benefit us over the course of the years that of natural gas prices are low and airport at hand prices are also know the which is benefiting up in the process and simultaneously the derivatives market that strong and especially ravens my it gets a strong but is also benefiting us and thought you know keeping fingers crossed we're off to a good start to the year and hope to see things stabilize more and strength and more over the course of the year as china will be reopened
spk_0: on the cash flow at let him take that wasn't sure so thanks so for twenty twenty two cash flow we generated one point one billion dollars at the operating cash flow level i would say or expectation for twenty twenty three would be to maintain somewhere around that same lap
spk_34: and that you unite decline that dad it might be seen through lower a better would be offset generally buys lower taxes paid you did are specifically about tax and so i would expect those to come down a little bit year over year and then also while continuing efforts to work to manage are working capital i think we may
spk_2: good progress particularly in the fourth quarter of twenty twenty two in bringing working capital down our efforts there continue and i expected dad will continue to see benefits from that is we go through twenty twenty three
spk_34: i care and on i wasn't i come from for mccann can pack of america please go ahead
spk_25: okay thank you very much and i'm just a fall off a little bit on the on the guidance and
spk_35: you're thinking at you with your different segments and you look out over the year where you see the potential for for more upside draw a line has been very strong and you extract that to to continue judge it's to go at the at the same pace that it is ah
spk_5: pvc which you've kind of address patio the their thoughts therefore for additional outside relative to to what you've been assuming in the in the guidance that you've given would be very helpful thank you very good frank nice to have you on the goal or your the me let me talk about each other businesses your soul in a visa bad very strong or continued strong their momentum and do it alone
spk_36: ended up on activity solutions business and dead in already strong backlog all five years six months or higher
spk_20: and you know the deer in raw material costs have stabilized and the margins are relatively stable and so we see that does trend continued you know
spk_2: as of now be haven't seen any weakness
spk_5: back in that business offloading aged solution business yeah continues to experience said he strong volumes then strong driving across the board your visited the at the pharmacological fluorspar aluminium foil age of region and gases then all medical to balance the businesses and that we expect that went to continue the like adopt about btc you i had as meet the stabilization you're in those markets in the leverage on orleans is very significant evidence so you're the one source of upside could be you know your greater and more improvement in btc playthings with the course of the year would be a big organisers salsa upside your on forget gary business is that is very stable and you know we're off to a good start involving in and out of him in a for the year and so keeping fingers crossed that dad will be market especially in europe but continue to recover energy costs have come down again all been below war loving on the effect will also
spk_2: gone in the other direction in and when we should benefit from that as well and for our blog that the that's the story you to go business by business across the board
spk_20: now it's only the february federally anatolian the yard and which is why you know in terms of guidance we we chose to settle floor and job and will refine the
spk_5: as we go along and we get a better read on the economy over the course of a year ago the full impact of the rate increases all and deferred pursued be achieved two percent inflation is still not known yet and and especially you know how the second half of the group i will perform but if you know it's current conditions continue i a very well place i also want to point out there are questions about got back to the most significant or announcement that we you made in the goal on our projects you know wtf joint venture with zombie that we're kicking off and the a be a effect on your bitches one hundred percent or are beyond venture that have also been kicked off the wall transformational and very significant tape and saga of we're putting up a little than done belfort be bdf and ten thousand and ten the that ip of thing let the market potential for the over the course of the next ten years you know you're looking at a five to ten expansion in the market or in the course of the decade and in terms of investment you know the bbt at investment over and eight hundred fifty million dollar investment with and of course the be at a forty nine percent stake through to be proportional and the llp of six investment is roughly three hundred million dollar investment to the hundred million dollar grant from the department of energy not remember think it the investor debut had shared that most of like lot will control organic growth project veritas a lot of coming from organically project under five year period the investment to either today shows have two to four times and what i can say yeah to all about investors and be analysts the community that the economics on these two projects on the more favorable and mortar collective side of that range did you a you know which is a huge deal right and of course it's gonna take three years to live your deploy that capital and non and get that off and then plan for subsequent expansions baghdad years specially given de niro shorting all for supply chain and the united states desire to has been curious apply for both are badly and semiconductor value chain and the fact that get a we are fully integrated you know from mind to market
spk_34: in mexico to the united states
spk_0: a different the big big deal
spk_37: dishonored to make sure we i get that out there thank you thank you very much krishna ah ha question cause i'm a have a high rgb app
spk_2: the morning part hard to the my question are following i'm the previous question on the topic sky them for my now you just said that mouth without on come from some organic products of i feel want to drop does that mean that are three hundred to three hundred fifty million dollars
spk_38: fine two girls carpet for the year that did not include try back and organic route thirty or forty year or how much could you possibly a fine so that they are very in know any more details you can share with a about topics for the next couple of years and finally i different draft
spk_37: yeah we should expect another are be a day for the beer thank you regina was a little hard to follow the specific detail you're looking for on the topic gutters would you mind repeating that bought a good question
spk_5: yeah no worries
spk_2: yeah is buried and me ah detail for the next couple of years on i mean i know rather than sixty seven million dollars in a billion dollars in the garbage by in there anything
spk_5: where where do you expect mouth and that our topic to choose to go out he just a good good for look i think god feel a we're glad good disclosure the the big investment
spk_2: you're the ceo fields we are continuing on the expansions and do it only mind and those are you do not appear to the funeral said you're around one hundred and fifty million dollars and that will happen over the course of the year we have the indonesia project
spk_5: and then later on in the snow it will start deploying the early phase of the capital for the and i'd be a big than the bbb of projects
spk_2: for our big btp expansion via we don't expect significant capital deployment is your other than engineering and then over the course of the next two years at twenty for and twenty five you see the ramp up and capital required particularly for the an ip of six and be media projects
spk_37: and then you know from your i would say from the latter half off twenty four already bought a twenty five to twenty seven is when you see the capital diploma for the beatles the expansion
spk_0: so regina you also as question about investor day so the intend to this point in time is to have what we'd call a more a strategic update to work to investor day and to do that by a call
spk_2: and we expect that would be and the months of may june timeframe so will be a form of eyes in the plan for that soon and announcing a specific date and time for that call her drink think evening meal think it family liar who have an awesome ha ha science recession or upon a half years back i have my her can have your followers
spk_5: but thank you very much for joining the of the conference call
spk_0: yeah i'd like to emphasize that doe or be or yeah continues to remain a very resilient company that a very strong balance sheet in a strong management team here have strong portfolio of group project and disciplined approach to capital allocation and
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