Arkema Sa · EURONEXT:AKE
Arkema Sa — Non-Deal Roadshow (September 2024)
24 slides from Arkema Sa's roadshow presentation, September 2024
Slide 1: Arkema Roadshow Presentation
ARKEMA ROADSHOW PRESENTATION SEPTEMBER 2024
Slide 2: Strategy and ambition
Strategy and ambition Arkema - Roadshows September 2024 2
Slide 3: Our vision is shaped by the accelerating demand for high performance materials
Our vision is shaped by the accelerating demand for high performance materials A SIGNATURE “Be the Specialty Materials leader, offering the most innovative and FOR A VISION sustainable solutions to address our customers’ current and future challenges” Arkema - Roadshows September 2024 3
Slide 4: We have built an attractive and well-balanced portfolio of Specialty Materials
We have built over time an attractive and well-balanced portfolio of Specialty Materials Towards 100% Specialty Materials Rebalanced geographical footprint 34% 38% Specialty Materials 92% €9.5bn Adhesive Solutions 37% 2023 2023 sales Advanced Materials 25% 29% Coating Solutions 24% 8% Intermediates
Slide 5: A clear CSR roadmap is embedded in our strategy
A clear CSR roadmap is embedded in our strategy Climate GHG emissions Sustainable Sales contributing Safety Total recordable by 2030 vs 2019 Towards significantly to UN SDGs by 2030 injury rate TRIR solutions Scopes 1 + 2 Net-Zero 0.8 2050 -48.5% 65% Near-term > 1,800 researchers by 2030 Process saf
Slide 6: With our high performance solutions, we support our customers in their quest for innovation
With our high performance solutions, we support our customers in their quest for innovation and sustainability Additives, resins and polymers for green energies Adhesives, sealants and coatings for efficient buildings Resins, high performance films and polymers for advanced electronics Broad One Ark
Slide 7: Cutting-edge technologies to serve key identified submarkets
We have developed an unmatched range of cutting-edge technologies to serve key identified submarkets Advanced Materials Adhesive Solutions Coating Solutions Green energy and electric mobility Advanced electronics Sustainable lifestyle and goods Efficient buildings and homes Healthcare and well-being
Slide 8: Technologies x submarkets will accelerate our growth
This combination of technologies x submarkets will accelerate our growth 15% 25% 2023 2028 85% €9.5bn sales 75% c. €12bn sales 3x higher organic sales CAGR than Group’s average Over 50% of Arkema R&D spendings Green energy Sustainable lifestyle Advanced electronics Efficient buildings and homes Heal
Slide 9: Unique density of high-quality and almost entirely financed investments
We will benefit in the coming years from a unique density of high-quality and almost entirely financed investments Recent CAPEX and new announcements Recent major acquisitions Combined CAPEX c. €1.1bn Combined EV c. €3.0bn(1) (€1bn financed end-24) (including 100% of PIAM) EBITDA contribution c. €30
Slide 10: Second quarter 2024 results
Second quarter 2024 results Extract from « Second quarter 2024 results and outlook » presentation (1 August 2024) Arkema - Roadshows September 2024 10
Slide 11: Solid financial performance in a challenging environment
Solid financial performance in a challenging environment Sales EBITDA Margin €2,536m 17.8% Volumes +4.7% YoY +70 bps vs Q2’23 Q2’24 key figures EBITDA Recurring cash flow €451m €132m +8.2% vs Q2’23 vs €145m in Q2’23 Arkema - Roadshows September 2024 11
Slide 12: Q2'24 financial highlights
Q2’24 financial highlights → Up 3.8% YoY • +4.7% volume growth €2,536m sales • Improved momentum in certain markets such as sports, batteries and energy, and in industrial adhesives • Negative 2.4% price effect in line with raw material price evolution → EBITDA up 8.2% YoY • Good growth in most of t
Slide 13: Making progress in our strategic priorities
Making progress in our strategic priorities Acquisition of Ramp-up of Dow flexible packaging organic projects laminating adhesives H1’24 highlights Delivering our roadmap Significant achievements in EV batteries toward more sustainable operations Arkema - Roadshows September 2024 13
Slide 14: Acquisition of Dow's flexible packaging laminating adhesives
Acquisition1 of Dow’s flexible packaging laminating adhesives: a high-quality business strengthening our existing position One of the global leaders for adhesives in flexible packaging Key figures Annual sales US$150m US$50m around US$ 250m Enterprise value Implementation (~10x EBITDA 2024F) costs a
Slide 15: Delivering our roadmap in EV batteries
Delivering our roadmap in EV batteries Stake acquisition in Tiamat Leveraging the One Arkema offer January 2024 New IncellionTM range Pioneer in new generation of waterborne acrylic based Cell sodium-ion batteries binders for the anode Synergistic combination with PVDF binders for the cathode Partne
Slide 16: Significant achievements toward more sustainable operations
Significant achievements toward more sustainable operations Commitment with Decarbonizing the global Act4nature coating value chain May 2024 4 new Coating Solutions sites certified Mass Balance ISCC+ in H1 2024 New engagements to map and reduce our impacts on biodiversity In addition to Carling (cer
Slide 17: Sales growth in a still subdued demand environment
Sales growth in a still subdued demand environment Sales in €million +4.7% -2.4% -0.8% +2.3% Improved momentum Reflecting lower Depreciation of Mostly integration in certain markets price of certain Argentinian peso of PIAM such as batteries, raw materials and Chinese yuan sports, energy, against eu
Slide 18: Adhesive Solutions (28% of Group sales in Q2'24)
Adhesive Solutions (28% of Group sales in Q2’24) Key figures Highlights Q2’24 in €m Q2’24 Q2’23 Change H1’24 H1’23 Change Sales 706 692 +2.0% 1,386 1,390 -0.3% → Volumes up 5.1% YoY • Supported by industrial adhesives, in particular EBITDA 109 95 +14.7% 214 188 +13.8% in durable goods, packaging and
Slide 19: Advanced Materials (36% of Group sales in Q2'24)
Advanced Materials (36% of Group sales in Q2’24) Key figures Highlights Q2’24 in €m Q2’24 Q2’23 Change H1’24 H1’23 Change → Volumes down 1.0% YoY Sales 918 912 +0.7% 1,796 1,849 -2.9% • Impacted by planned maintenance turnarounds in EBITDA 190 185 +2.7% 352 345 +2.0% Thiochemicals • Supported by pos
Slide 20: Coating Solutions (26% of Group sales in Q2'24)
Coating Solutions (26% of Group sales in Q2’24) Key figures Highlights Q2’24 in €m Q2’24 Q2’23 Change H1’24 H1’23 Change → Volumes up by a very strong 10.4% YoY Sales 648 617 +5.0% 1,263 1,278 -1.2% • Driven by downstream activities, particularly in EBITDA 91 88 +3.4% 166 182 -8.8% industrial coatin
Slide 21: Intermediates (10% of Group sales in Q2'24)
Intermediates (10% of Group sales in Q2’24) Key figures Highlights Q2’24 in €m Q2’24 Q2’23 Change H1’24 H1’23 Change Sales 254 212 +19.8% 412 430 -4.2% → Volumes up 9.9% YoY EBITDA 84 69 +21.7% 123 118 +4.2% • Higher demand for acrylics in China EBITDA margin 33.1% 32.5% 29.9% 27.4% REBIT 74 57 +29.
Slide 22: Cash flow generation reflecting usual seasonality
Cash flow generation reflecting usual seasonality in €million Q2’24 Q2’23 H1’24 H1’23 EBITDA 451 417 801 784 → Q2’24 tax rate 22% of REBIT (excl. exceptional Current taxes -54 -57 -93 -112 items) Cost of debt -12 -12 -26 -28 Change in working capital and fixed assets payables (1) -76 -42 -331 -285 O
Slide 23: Outlook
Outlook → At the start of the third quarter the macroeconomic context remains in line with that of previous quarters, with no tangible signs of a rebound in demand. → In this environment, Arkema will continue to focus on elements under its control, in particular the strict management of operations a
Slide 24: Disclaimer
Disclaimer The information disclosed in this document may contain forward-looking statements with respect to the financial condition, results of operations, business and strategy of Arkema. In a context marked by strong geopolitical tensions, where the evolution of the world economy remain uncertain