Arkema Sa · EURONEXT:AKE
Arkema Sa — FY2024 Earnings Presentation
30 slides from Arkema Sa's earnings presentation, Feb 27, 2025
Slide 1: Full year 2024 results and highlights
Full year 2024 results and highlights 27/02/2025
Slide 2: A vision shaped by the accelerating demand for high performance materials
A vision shaped by the accelerating demand for high performance materials a SIGNATURE “Be a Specialty Materials leader offering innovative and sustainable for a VISION solutions to address our customers’ current and future challenges” Full year 2024 results and highlights 27/02/2025 2
Slide 3: Arkema 2024 overview
Arkema 2024 overview 92% sales on Balanced Specialty Materials geographical footprint Markets Specialty Building & Construction Materials 37% 5% 28% 92 % 33% General Industry 27% €9.5bn €9.5bn 27% sales sales 26% Consumer goods & Electronics 29% 21% 8% 35% Health, water & nutrition Adhesives Solutio
Slide 4: 2024 key achievements
2024 key achievements Solid financial performance reflecting the Group’s resilience and capacity to adapt in a challenging macroeconomic Sales EBITDA environnement €9,544m €1,532m Growth driven by Adhesives and High Performance Polymers, Volumes EBITDA margin Asia, and new business developments link
Slide 5: Specialty Materials growth driven by Adhesives and HPP
Specialty Materials growth driven by Adhesives and HPP Adhesives Solutions Advanced Materials Coating Solutions 8.4% EBITDA increase EBITDA up 6.2% EBITDA up in downstream activities driven by good dynamics in industrial Good dynamics in packaging Significant growth in High coatings and electronics
Slide 6: Superior resilience in different macro environments
Superior resilience in different macro environments Lower margin volatility EBITDA margin evolution compared to peers (2018-24e) (2018-24e) 25% EBITDA margin volatility1 20% Arkema Specialty Materials 270 bps 15% 10% Peers2 average 690 bps 5% 1. Difference between highest and lowest annual EBITDA ma
Slide 7: Continuous cost-cutting initiatives
Continuous cost-cutting initiatives Better products and €55m process yields, and cost savings improved energy efficiency in 2024 1/3 fixed costs Digitalization, automation 2/3 variable costs and process simplification Global procurement strategy for goods and services In line with 2028 target Improv
Slide 8: Attractive technologies serving identified high-growth platforms
Attractive technologies serving 5 identified high-growth platforms One Arkema portfolio in EV batteries, and additives, High performance and High performance resins and polymer in bio-based polymers for polymers for green energy and sustainable lifestyle health and electric mobility and goods well-b
Slide 9: Latest sustainable innovations serving these high-growth platforms
Latest sustainable innovations serving these high-growth platforms Textile and paint markets Flooring adhesive Product carbon footprint R3Bond® SYSTEM enabling reduction up to 30% to recycle floor covering with bio-based ethyl acrylate Green hydrogen 3D printing New grades of molecular sieves Recycl
Slide 10: High density of projects to support our growth
High density of projects to support our growth CAPEX EBITDA contribution > 95% disbursed at end of 2024 UV curing resins (China) > +€400m Electronics and medical Bio-based Amino 11 and PA11 (Singapore, China) Consumer goods > €600m Niche additives (China) Renewable energy PVDF (China) Batteries PVDF
Slide 11: Major growth projects located in North America and Asia
Major growth projects located in North America and Asia Acquisition CAPEX Asia & RoW PI Advanced Materials (54%) Bio-based Amino 11 and PA11 Additives for renewable energy PVDF for batteries UV curing resins for electronics and medical North America Ashland Performance Adhesives Europe Dow laminatin
Slide 12: Significant growth opportunities confirmed for PIAM
Significant growth opportunities confirmed for PIAM Growth drivers +15%p EBITDA +165% EBITDA in 2024 vs. 2023 New product High-value-added launches in mobile ultra-thin films in devices mobile and display (foldable, 5G) (OLED, slimmer devices) Promising start of the year 2025 New certifications Doub
Slide 13: Promising first steps for Dow's laminating adhesives business
Promising first steps for Dow’s laminating adhesives business Development potential and synergies confirmed Start of the year aligned with expectations +US$30m EBITDA synergies within 5 years One of the global leaders of adhesives Detailed roadmap defined and short-term initiatives launched for the
Slide 14: Strengthening our targets on key CSR indicators
Strengthening our targets on 5 key CSR indicators CLIMATE WATER PEOPLE Scope 3 GHG emissions Water withdrawals TRIR (in Mt CO2e) (in million of cu.m) (accident per million hours worked) 109 1.4 152 Initial Revised 82 82 80 Initial Revised 0.8 0.8 0.7 -25% -27% 2019 2024 2030 target 2030 2030 2019 20
Slide 15: CSR great achievements in 2024
CSR great achievements in 2024 Innovation Recognitions Acculturation > 1,800 researchers Numerous external awards Climate Fresk across the 3 regions in China with 4,000+ participants in 20 countries 245 new patents applications Solar Impulse labels for Climate School fundamentals >90% of filed paten
Slide 16: Continuous increase of shareholder return
Continuous increase of shareholder return Dividend (1) Dividend per share (€/share) €3.60 proposed at the next AGM on 22 May 2025 (2) 3.6 3.5 Payout ratio 3.4 in 2024 3.0 44% in line with the Group’s 2.5 long term objective 2.2 Annual growth 2019 2020 2021 2022 2023 2024 +10%/y of the dividend over
Slide 17: 2020-24 performance in line with the 2020 CMD ambition
2020-24 performance in line with the 2020 CMD ambition in a volatile environment 2024 Average 2024 Ambition1 2020-24 in a challenging global macroeconomic environment from 2020 CMD Net Sales €10-11bn €9.6bn €9.5bn Group EBITDA margin c. 17% 16.7% 16.1% EBITDA to cash conversion rate >40% 46% 27% Net
Slide 18: Cash allocation fully in line with the 2020-24 targets
Cash allocation fully in line with the 2020-24 targets 2020 CMD target Cash allocation 2020-24 2020-24 1 €1.55bn returned to shareholders Return to 40- €1.1bn in dividends shareholders €1.4-1.6bn 42% 45% €0.3bn 2021 share buyback €0.15bn employee shareholder programs 2 €1.60bn across platforms 40- A
Slide 19: Outlook FY'25
Outlook FY’25 Macroeconomic environment remains uncertain and marked by weak demand at the start of the year The Group aims for its EBITDA to grow in 2025 and reach between €1.53 bn and €1.67 bn depending on the evolution of macroeconomic conditions, supported by an additional significant contributi
Slide 20: Detailed Q4 & FY 2024 results
Detailed Q4 & FY 2024 results Full year 2024 results and highlights 27/02/2025 20
Slide 21: 2024 financial highlights
2024 financial highlights → Stable YoY • Volumes up 2.4% supported by growth in Specialty Materials in Asia €9,544m sales • More favorable volume dynamics in certain markets such as sports, packaging, batteries and energy • Negative 3.0% price effect reflecting the slight decrease in raw materials p
Slide 22: Key figures
Key figures Q4’24 Q4’23 Change 2024 2023 Change Sales 2,273 2,222 +2.3% 9,544 9,514 +0.3% EBITDA 324 331 -2.1% 1,532 1,501 +2.1% Specialty Materials 311 312 -0.3% 1,420 1,373 +3.4% Intermediates 24 40 -40.0% 198 213 -7.0% Corporate -11 -21 -86 -85 EBITDA margin 14.3% 14.9% 16.1% 15.8% Specialty Mate
Slide 23: Stable sales in a globally weak demand environment
Stable sales in a globally weak demand environment Sales in €million +2.4% -3.0% -1.1% +2.0% Sustained growth Slight decrease in Latin American PIAM integration in Asia raw materials currencies and and acquisition of prices, stabilizing Chinese yuan Arc Building Products Overall low demand during H2
Slide 24: Adhesive Solutions (29% of Group sales in 2024)
Adhesive Solutions (29% of Group sales in 2024) Key figures 2024 highlights in €m Q4’24 Q4’23 Change 2024 2023 Change → Volumes up 2.4% Sales 654 642 +1.9% 2,722 2,714 +0.3% • Good growth in industrial adhesives • Construction market stabilized at low level EBITDA 91 94 -3.2% 412 380 +8.4% • Positiv
Slide 25: Advanced Materials (37% of Group sales in 2024)
Advanced Materials (37% of Group sales in 2024) Key figures 2024 highlights in €m Q4’24 Q4’23 Change 2024 2023 Change → Volumes up 1.2% Sales 881 857 +2.8% 3,562 3,562 - • Positive dynamics in Asia, partly offset by marked decline in Europe EBITDA 166 149 +11.4% 707 666 +6.2% • Good growth in HPP an
Slide 26: Coating Solutions (26% of Group sales in 2024)
Coating Solutions (26% of Group sales in 2024) Key figures 2024 highlights in €m Q4’24 Q4’23 Change 2024 2023 Change → Volumes up 6.8% Sales 565 552 +2.4% 2,455 2,402 +2.2% • Strong dynamics in downstream activities in industrial coatings and electronics EBITDA 54 69 -21.7% 301 327 -8.0% • Ramp-up o
Slide 27: Intermediates (8% of Group sales in 2024)
Intermediates (8% of Group sales in 2024) Key figures 2024 highlights in €m Q4’24 Q4’23 Change 2024 2023 Change → Volumes down 4.8% Sales 165 161 +2.5% 768 797 -3.6% • Lower quotas in refrigerant gases in Europe and United States EBITDA 24 40 -40.0% 198 213 -7.0% • Higher acrylics volumes in China E
Slide 28: Solid cash flow
Solid cash flow in €million Q4’24 Q4’23 2024 2023 EBITDA 324 331 1,532 1,501 → 2024 tax rate 22% of REBIT (excl. exceptional items) Taxes -54 -3 -199 -184 Cash items included in the financial result -17 -17 -58 -53 → Working capital Change in working capital and fixed assets payables (1) 277 281 -60
Slide 29: Net debt maintained around 2x EBITDA
Net debt maintained around 2x EBITDA in €million 2.1x EBITDA 2024 241 3,241 2,930 - 419 277 35 177 Including debt linked to renewal of 10-yr lease Dividend : €261m commitment for HQs Hybrid bonds : €16m Rec. cash Dividends & Share FX and 31/12/2023 M&A 31/12/2024 flow Hybrid bonds buyback others Ful
Slide 30: 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