Slide 1: Third-quarter 2024 results and highlights
Third-quarter 2024 results and highlights 06/11/2024
Slide 2: Q3'24 financial highlights
Q3’24 financial highlights → Up 2.9% vs Q3’23 • Volumes up 2.2% in an environment of global weak demand, particularly in Europe €2,394m sales • Some more buoyant markets such as energy, sports, healthcare and packaging • Broadly stable price effect at a negative 0.2%, reflecting dynamic management o
Slide 3: Sales up and high EBITDA margin in a challenging context
Sales up and high EBITDA margin in a challenging context in €million Sales EBITDA Adj. Net Income Net Debt (incl. hybrid bonds) 2,394 407 177 3,270 2,326 386 168 3,111 Q3'23 Q3'24 Q3'23 Q3'24 Q3'23 Q3'24 30/06/24 30/09/24 Specialty 92% Margin 17.0% Adj. EPS €2.25 2.0x LTM EBITDA Materials Q3'24 resu
Slide 4: Further steps achieved to decarbonize our value chain
Further steps achieved to decarbonize our value chain Rilsan® PA11 carbon footprint Breakthrough in wind turbine blade recycling further decreased ZEBRA project demonstrates closed loop system for wind turbines made with Elium® resin -80% vs traditional polyamide resins Carbon footprint using fossil
Slide 5: Launch of more sustainable adhesive solutions
Launch of more sustainable adhesive solutions New Kizen LIME Fast Glue Ultra+ range for packaging for DIY > 80% 60% renewable ingredients bio-based materials Innovative and proprietary formulation Exceptional strength, durability, designed for recyclable paper and and resistance to extreme condition
Slide 6: Key figures
Key figures in €million Q3’24 Q3’23 Change 9m’24 9m’23 Change Sales 2,394 2,326 +2.9% 7,271 7,292 -0.3% EBITDA 407 386 +5.4% 1,208 1,170 +3.2% Specialty Materials 377 346 +9.0% 1,109 1,061 +4.5% Intermediates 51 55 -7.3% 174 173 +0.6% Corporate -21 -15 -75 -64 EBITDA margin 17.0% 16.6% 16.6% 16.0% S
Slide 7: Sales increase in a global weak demand environment
Sales increase in a global weak demand environment Sales in €million +2.2% -0.2% -1.4% +2.3% Benefit from some Dynamic selling Depreciation of US PIAM integration more buoyant price management dollar and Latin markets such as in line with the American currencies energy, sports, overall raw against e
Slide 8: Adhesive Solutions (29% of Group sales in Q3'24)
Adhesive Solutions (29% of Group sales in Q3’24) Key figures Highlights Q3’24 in €m Q3’24 Q3’23 Change 9m’24 9m’23 Change Sales 682 682 - 2,068 2,072 -0.2% → Volumes up 1.9% YoY EBITDA 107 98 +9.2% 321 286 +12.2% • Good dynamic in packaging and labelling markets • Construction sector remaining chall
Slide 9: Advanced Materials (37% of Group sales in Q3'24)
Advanced Materials (37% of Group sales in Q3’24) Key figures Highlights Q3’24 in €m Q3’24 Q3’23 Change 9m’24 9m’23 Change Sales 885 856 +3.4% 2,681 2,705 -0.9% → Volumes up 2.0% YoY • Supported by sports, energy and healthcare markets EBITDA 189 172 +9.9% 541 517 +4.6% • Slowdown in automotive secto
Slide 10: Coating Solutions (26% of Group sales in Q3'24)
Coating Solutions (26% of Group sales in Q3’24) Key figures Highlights Q3’24 in €m Q3’24 Q3’23 Change 9m’24 9m’23 Change → Volumes up 8.7% YoY Sales 627 572 +9.6% 1,890 1,850 +2.2% • Low comparison base last year, marked by destocking EBITDA 81 76 +6.6% 247 258 -4.3% • Supported mainly by coatings,
Slide 11: Intermediates (8% of Group sales in Q3'24)
Intermediates (8% of Group sales in Q3’24) Key figures Highlights Q3’24 in €m Q3’24 Q3’23 Change 9m’24 9m’23 Change Sales 191 206 -7.3% 603 636 -5.2% → Volumes down 12.1% YoY EBITDA 51 55 -7.3% 174 173 +0.6% • Effect of existing quota mechanisms in refrigerant gases EBITDA margin 26.7% 26.7% 28.9% 2
Slide 12: Solid recurring cash flow
Solid recurring cash flow in €million Q3’24 Q3’23 9m’24 9m’23 EBITDA 407 386 1,208 1,170 Current taxes -52 -69 -145 -181 → 9m’24 tax rate Cost of debt -15 -8 -41 -36 ~22% of REBIT (excl. exceptional items) Change in working capital and fixed assets payables (1) -6 131 -337 -154 (*) Others 23 9 13 -1
Slide 13: Debt successfully refinanced in 2024
Debt successfully refinanced in 2024 Debt maturity schedule (€m) 1,100 Average maturity (excluding hybrids) 4.3 years (at end-Q3 2024) 900 1.5% 700 700 Average coupon (excluding hybrids) 1.5% 4.25% 2.2% (at end-Q3 2024) 500 500 400 0.75% 400 3.5% 3.5% RCF 300 300 4.8% 3 CSR criteria taken into accou
Slide 14: Net debt tightly controlled at 2x EBITDA
Net debt tightly controlled at 2x EBITDA in €million 2.0x LTM EBITDA 3,270 15 1 11 4 3,111 - 190 30/06/2024 Rec. cash Exceptional M&A Dividends & FX and 30/09/2024 flow items Hybrid bonds others Q3'24 results and highlights - 6 November 2024 14
Slide 15: FY 2024 outlook
FY 2024 outlook → With a still lackluster macroeconomic context expected for the rest of the year, marked by limited visibility and a continued weak demand environment, the Group will focus on strictly managing its operating costs and optimizing its working capital in line with demand → In parallel,
Slide 16: 12 major projects generating strong additional EBITDA while being nearly fully financed
12 major projects generating strong additional EBITDA while being nearly fully financed Total EBITDA Organic CAPEX Recent major acquisitions contribution Start-up in 2023 & 2024 Ashland Performance Adhesives • PVDF (China, France) Feb. 2022 Pressure Sensitive Adhesives • UV curing resins (China) • B
Slide 17: 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