Slide 1: Full-year 2022 results and outlook
Full-year 2022 results and outlook 23/02/2023
Slide 2: 2022 highlights
2022 highlights Full-year 2022 results and outlook 23/02/2023 2
Slide 3: Helping to shape the future with our strength in materials
Helping to shape the future with our strength in materials Innovative materials for a sustainable world Addressing tomorrow’s challenges Urbanization and social change Climate change Resource scarcity Technological transformation Full-year 2022 results and outlook 23/02/2023 3
Slide 4: Materials science at the core of our portfolio
Materials science at the core of our portfolio Adhesive Solutions Bonding solutions Strong synergies between the 3 Specialty Materials Coating Resins segments Shared expertise in design, formulation, polymerization Advanced Coating Materials Solutions Numerous customers, Material substitution Protec
Slide 5: Arkema in a snapshot (2022)
Arkema in a snapshot (2022) €11.5bn 21,100 55 sales employees countries 148 €270m €707m production R&D expenditure total capex* sites *€584m recurring, €123m exceptional Full-year 2022 results and outlook 23/02/2023 5
Slide 6: Diversified end-markets and balanced geographic footprint
Diversified end-markets and balanced geographic footprint Segments Markets Regions Specialty Materials 38% 16% 35% 91% 19% 4% 4% 27% 16% 27% 28% 36% 36% 8% 28% 33% 25% 28% 9% 8% 5% 4% Adhesive Solutions Coating Solutions Industry Consumer goods Europe Asia Advanced Materials Intermediates Paints and
Slide 7: 2022 key take-aways
2022 key take-aways Excellent financial results Superior cash generation in a year of two halves and strong balance sheet Further strengthening of the Acceleration of innovation Group’s Specialty Materials in sustainable megatrends Reinforced commitment Among best-in-class ESG to decarbonization and
Slide 8: Excellent financial performance achieved in 2022
Excellent financial performance achieved in 2022 Sales €11,550m Adj. net income up 21% vs. 2021 €1,167m Record EBITDA €15.75 €2,110m per share Strong recurring cash flow €933m Full-year 2022 results and outlook 23/02/2023 8
Slide 9: 2022 financial highlights
2022 financial highlights → Up by 21.3% vs. 2021 • 13.6% organic sales growth, reflecting price increases in the face of significant €11,550m sales raw materials and energy cost inflation, the improved product mix, as well as demand slowdown and significant destocking in Q4 • Acceleration in opportu
Slide 10: Strong cash generation and attractive shareholder returns
Strong cash generation and attractive shareholder returns In line with the Group’s policy of increasing progressively the dividend 2022 Dividend €933m recurring cash flow €3.40 in 2022* EBITDA to cash conversion €3.0 in 2021 44.2% *Dividend proposed at the shareholders’ annual general meeting of 11
Slide 11: Group's profile strengthened by recent M&A
Group’s profile strengthened by recent M&A Acquisition of Acquisition of Ashland Polimeros Performance Especiales SA Adhesives (US) (Mexico) Adhesive Coating Solutions Solutions Acquisition of Permoseal (South0Africa) Febex disposal Adhesive to Prayon Solutions Full-year 2022 results and outlook 23/
Slide 12: High return investments supporting our sustainable growth strategy
High return investments supporting our sustainable growth strategy Key current expansion projects Combined Capex €750m Pebax® PVDF EBITDA contribution €50-70m in 2023 (mainly H2) PA11 powders ~€180-200m at maturity Hydrofluoric acid (Nutrien) PVDF Sartomer® A11 / PA11 Bio-based, renewable Solvent-fr
Slide 13: Sustainability at the heart of Arkema's strategy
Sustainability at the heart of Arkema’s strategy Full-year 2022 results and outlook 23/02/2023 13
Slide 14: 3-pronged approach driving Arkema's commitment to sustainability
3-pronged approach driving Arkema’s commitment to sustainability Contribute to Design materials, society and cultivate driven by innovation open dialogue with stakeholders Operate as a responsible manufacturer Full-year 2022 results and outlook 23/02/2023 14
Slide 15: Strong innovation serving sustainability
Strong innovation serving sustainability Up to €1.5bn additional sales from sustainable innovation by 2030 vs. 2019 5 R&D platforms >90% patents filed relating to Natural resources management sustainable development in 2022 New energies 53% of sales significantly contributing to UN SDGs* in 2022 Lig
Slide 16: Broader renewable and recyclable product ranges
Broader renewable and recyclable product ranges Coating New recycled Solutions high performance polyamides New mass made by Agiplast balance acrylic materials, ISCC+ certified Advanced Materials 97% bio-based Bostik SF10M adhesive approved Synaqua® resins for by RecyClass for waterborne decorative p
Slide 17: For the world to change… we must change the materials we use
For the world to change… we must change the materials we use Arkema makes sport better Arkema makes mobility better Pebax® foam for lightweight, flexibility Outside battery cell (PA11, Piezotech®, and exceptional energy return in Adhesives, Sartomer® UV resins) Kiprun KD900X running shoe Inside batt
Slide 18: For the world to change… we must change the materials we use
For the world to change… we must change the materials we use Arkema makes goods more durable Arkema enhances boat recyclability New leading and integrated offer for Pressure Sensitive Adhesives with 4 Eco-responsible boat concept by key technologies: Hot melt, Waterborne, Beneteau in Elium® resin UV
Slide 19: Circular economy as a priority to reduce environmental impact
Circular economy as a priority to reduce environmental impact Materials Implementation, Maximize use of 2024 target use, end-of-life renewable or recycled materials and packaging Maintain products and materials in the use-loop 50% of sales covered by a Measurement Life Cycle Assessment Roll out Life
Slide 20: Reinforced commitment to decarbonization
Reinforced commitment to decarbonization 2022 (vs. 2021) 1.5°C SBT trajectory across the whole value chain -16% GHG emissions for Scopes 1 & 2 -15% GHG emissions for Scope 3 At constant perimeter 2030 target (vs. 2019) -46% GHG emissions for Scopes 1 & 2 and for Scope 3 At constant perimeter Full-ye
Slide 21: Accelerating the switch to low carbon sources of energy
Accelerating the switch to low carbon sources of energy Long-term contracts signed in 2022 100% wind energy PPA covering all Bayport site (US) needs 300 GWh/year renewable biomethane with ENGIE in France 61% of electricity from low carbon sources in 2022 Full-year 2022 results and outlook 23/02/2023
Slide 22: Reducing environmental footprint and preserving biodiversity
Reducing environmental footprint and preserving biodiversity Reducing water use -7% in 2022 vs. 2021 (> 6 million m3/year) 2030 targets (vs. 2012) 2022 (vs. 2012) Air: -65% VOC* emissions -47% Water: -60% COD* -58% *Volatile Organic Compounds, Chemical Oxygen Demand Full-year 2022 results and outloo
Slide 23: 5 core values ingrained in our corporate culture
5 core values ingrained in our corporate culture 5 core values Solidarity Performance Simplicity Empowerment Inclusion Full-year 2022 results and outlook 23/02/2023 23
Slide 24: Ensure employees' health and equipment safety
Ensure employees’ health and equipment safety 2030 targets 2022 Safety in Action 0.8 accident per million hours worked (TRIR) 0.9 promote safety culture The Essentials program process safety events 14 golden rules to be 2.0 per million hours worked (PSER) 2.8 applied without compromise Full-year 202
Slide 25: Pursuing initiatives as part of Arkema's societal commitment
Pursuing initiatives as part of Arkema’s societal commitment 2nd annual castor 6th year of Fund for scholarship Education, financing program in India projects to promote education Sport dans la Ville, 6th year of Pragati for professional program for insertion of young sustainable castor girls from p
Slide 26: Promoting diversity, inclusion and equal opportunity
Promoting diversity, inclusion and equal opportunity 1st publication of Arkema’s Diversity and Inclusion Charter 2030 targets in senior management and executive positions Committed with 30% women UN Women 26% in 2022 to promote professional equality between 50% non-French women and men 40% in 2022 F
Slide 27: Arkema recognized as an employer of choice
Arkema recognized as an employer of choice Top Employer certification renewed in 4 countries Arkema among the world’s best employers by Forbes Full-year 2022 results and outlook 23/02/2023 27
Slide 28: Among best-in-class ESG recognition in the sector
Among best-in-class ESG recognition in the sector MSCI: A CDP: B (climate change) Moody’s ESG Solutions: 69 Superior percentile across all sectors 3rd place Ecovadis: top 3% DJSI World 2022 Among the best performing in the sector “Chemicals” category Sustainalytics: Rated S&P Global Sustainability Y
Slide 29: Detailed Q4'22 & 2022 results and outlook
Detailed Q4’22 & 2022 results and outlook Full-year 2022 results and outlook 23/02/2023 29
Slide 30: Key figures
Key figures in €m Q4’22 Q4’21 Change 2022 2021 Change Sales 2,507 2,500 +0.3% 11,550 9,519 +21.3% EBITDA 291 417 -30.2% 2,110 1,727 +22.2% Specialty Materials 286 360 -20.6% 1,900 1,512 +25.7% Intermediates 24 79 -69.6% 306 307 -0.3% Corporate -19 -22 -96 -92 EBITDA margin 11.6% 16.7% 18.3% 18.1% Sp
Slide 31: Sales increase driven by price adjustments to pass on high inflation
Sales increase driven by price adjustments to pass on high inflation Sales in €m +6.5% +1.2% +21.4% Integration of Ashland Performance -7.8% Stronger US Adhesives, Permoseal, dollar and CN yuan Polimeros Especiales against euro PMMA and epoxides Volume in H2’22 disposals Price increase impacted by i
Slide 32: Adhesive Solutions (25% of Group sales)
Adhesive Solutions (25% of Group sales) Key figures 2022 highlights in €m Q4’22 Q4’21 Change 2022 2021 Change Sales 692 580 +19.3% 2,898 2,278 +27.2% → Prices up 14.8% YoY, in response to inflation in raw materials, energy and transport costs EBITDA 75 69 +8.7% 366 316 +15.8% EBITDA margin 10.8% 11.
Slide 33: Advanced Materials (38% of Group sales)
Advanced Materials (38% of Group sales) Key figures 2022 highlights in €m Q4’22 Q4’21* Change 2022 2021* Change → Volumes down 5.5% YoY Sales 1,022 933 +9.5% 4,341 3,307 +31.3% • Solid demand in areas linked to megatrends • Slowdown and destocking in EU in Performance EBITDA 148 169 -12.4% 941 671 +
Slide 34: Coating Solutions (28% of Group sales)
Coating Solutions (28% of Group sales) Key figures 2022 highlights in €m Q4’22 Q4’21 Change 2022 2021 Change → Prices up 19.1% YoY, driven by price increases in Sales 603 725 -16.8% 3,250 2,746 +18.4% the downstream, as well as in upstream acrylics, in a context of high inflation in raw materials an
Slide 35: Intermediates (9% of Group sales)
Intermediates (9% of Group sales) Key figures 2022 highlights in €m Q4’22 Q4’21* Change 2022 2021* Change → Scope effect of -17.9% YoY related to Sales 181 253 -28.5% 1,020 1,158 -11.9% PMMA disposal in May 2021 EBITDA 24 79 -69.6% 306 307 -0.3% → Volumes down 14.0% YoY EBITDA margin 13.3% 31.2% 30.
Slide 36: Strong EBITDA to cash conversion
Strong EBITDA to cash conversion in €m → 2022 tax rate • 21% of REBIT (excl. exceptional items) 2022 2021 • In 2023, ~21% of REBIT (excl. except. items) EBITDA 2,110 1,727 Current taxes -326 -233 → Strict working capital management Cost of debt -71 -52 12.6% of annual sales (12.7% end-2021) Change i
Slide 37: Net debt evolution (including hybrid bonds)
Net debt evolution (including hybrid bonds) in €m Mainly Ashland’s 1.1x 2022 EBITDA adhesives 84 2,366 238 22 1,629 1,177 -933 149 31/12/2021 Rec. cash Exceptional M&A Dividends & Share FX and 31/12/2022 flow items Hybrid bonds buyback others Full-year 2022 results and outlook 23/02/2023 37
Slide 38: Outlook
Outlook → At the beginning of the year, the macroeconomic context is marked by a lack of visibility and ongoing weak demand. A progressive improvement is expected from the spring, gathering momentum in the second part of the year. The Group will maintain its strong focus on cash generation and cost
Slide 39: 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 the current context, where the Covid-19 epidemic persists across the world, and where the consequences of t