Slide 1: Second Quarter 2021 Results and Outlook
SECOND QUARTER 2021 RESULTS AND OUTLOOK 29 JULY 2021
Slide 2: Strong Performance and Acceleration of Sustainable Innovation
STRONG PERFORMANCE AND ACCELERATION OF SUSTAINABLE INNOVATION
Slide 3: Excellent Results Reflecting the Strength of Arkema's Positioning
EXCELLENT RESULTS REFLECTING THE STRENGTH OF ARKEMA’S POSITIONING EBITDA REBIT ADJ. NET INCOME NET DEBT (incl. hybrid bonds) In €m In €m In €m In €m 20.0% x2.4 €3.50 0.9x MARGIN vs Q2’20 ADJ. EPS LTM EBITDA 478 407 345 1,910 267 278 286 192 1,281 144 90 Q2'19 Q2'20 Q2'21 Q2'19 Q2'20 Q2'21 Q2'19 Q2'2
Slide 4: Performance Driven by All Segments
PERFORMANCE DRIVEN BY ALL SEGMENTS Q2’21 sales split Specialty Materials far above 2019 Q2’21 volumes +19.4% +3.5% 30.5% vs Q2’20 vs Q2’19 Specialty Materials 30% 84.5% €2,395m EBITDA (€m) 417 24% 15.5% Exceeding pre-Covid level +37% +79% 304 Adhesive Solutions Coating Solutions 233 Advanced Materia
Slide 5: Decisive Measures to Adapt to Rising Raw Materials
DECISIVE MEASURES TO ADAPT TO RISING RAW MATERIALS EBITDA margin (%) 25% Strong volumes Intermediates Pricing actions 20% Specialty Materials +17.5% price effect on sales in Q2’21 vs Q2’20 Neutral to positive net impact 15% versus raw materials in all segments Tight market conditions in acrylics 10%
Slide 6: Eco Friendly Solutions Driving Our Organic Growth 1/2
ECO FRIENDLY SOLUTIONS DRIVING OUR ORGANIC GROWTH 1/2 Saucony Endorphin Pro 2 with an ultralight Pebax® polymer foam used for high energy return outsoles A leader in PVDF (Kynar®) for Li-ion battery cells, used as Sustainable and high performance binder or for coated separator Rilsan® polyamide 11 p
Slide 7: Eco Friendly Solutions Driving Our Organic Growth 2/2
ECO FRIENDLY SOLUTIONS DRIVING OUR ORGANIC GROWTH 2/2 ADHESIVES COATINGS CROP NUTRITION New Butyl grade to replace Asphalt for Flashing Tapes (windows & doors, roofing) and Insulated Glass Sealants Low VOC powder coatings with low temperature cured properties, mainly for automotive applications Coat
Slide 8: Cutting Edge Innovation Serving Sustainability
CUTTING EDGE INNOVATION SERVING SUSTAINABILITY Supply of fluorinated specialty solution 1233zd New renewable PVDF grades for batteries New generation 100% renewable attributed carbon with no or minimal emissive impact derived from crude tall oil bio-feedstock Sustainable solutions in high efficiency
Slide 9: Progress of Our Major Capex
PROGRESS OF OUR 2 MAJOR CAPEX Final phase of our new integrated bio-factory Innovative partnership to supply AHF in Singapore on track to start mid-2022 +50% PA11 capacity in Asia (100% bio-based) Use of co-product from Nutrien to produce AHF Start-up expected in 2022 CO2 emissions reduction by 20 t
Slide 10: Bolt-on Acquisitions or Equity Investments in Specialty Materials
BOLT-ON ACQUISITIONS OR EQUITY INVESTMENTS IN SPECIALTY MATERIALS Bolt-on acquisitions Equity investments Acquisition in in Adhesives in innovative companies polymers’ recycling Specialist in large- Brazilian leader in Offering expansion French start-up A leader in the series additive hybrid-technol
Slide 11: Q2 Results and Outlook
Q2 RESULTS AND OUTLOOK InNovaTive SK cHEMIsSTRY
Slide 12: Q2'21 Financial Highlights
Q2’21 FINANCIAL HIGHLIGHTS Up 34.6% compared to Q2'20 at constant scope & currency, +12.1% vs Q2’19 • significant growth in volumes, +17.1% YoY, +3.0% vs Q2’19 pre-Covid level €2,395m sales - high demand in most of the Group's end markets - sharp acceleration in the benefits of sustainable innovat
Slide 13: Strong Sales Increase Driven Equally by Volumes and Prices
STRONG SALES INCREASE DRIVEN EQUALLY BY VOLUMES AND PRICES Sales in €m +17.5% -4.2% -4.5% +17.1% Stronger euro against the Integration of Fixatti, US dollar Ideal Work, Poliplas Prices increase and Edge Adhesives initiatives in all products lines to pass Functional Polyolefins on the steep rise in d
Slide 14: Adhesive Solutions (24% of Group Sales in Q2'21)
ADHESIVE SOLUTIONS (24% OF GROUP SALES IN Q2’21) Q2’21 KEY FIGURES Q2’21 SALES DEVELOPMENT In €m Q2’20 Q2’21 Change Volumes +20.5% HIGHLIGHTS Q2’21 Sales 453 575 +26.9% Prices +3.8% ● 20.5% volume increase EBITDA 50 82 +64.0% Positive trends in construction and DIY Significant rebound in industr
Slide 15: Advanced Materials (30.5% of Group Sales in Q2'21)
ADVANCED MATERIALS (30.5% OF GROUP SALES IN Q2’21) Q2’21 KEY FIGURES Q2’21 SALES DEVELOPMENT In €m Q2’20 Q2’21 Change Volumes +14.5% HIGHLIGHTS Q2’21 Sales 628 729 +16.1% Prices +5.9% ● Volumes up 14.5% EBITDA 124 178 +43.5% Excellent dynamic in High Performance Polymers Currency (4.3)% Accelera
Slide 16: Coating Solutions (30% of Group Sales in Q2'21)
COATING SOLUTIONS (30% OF GROUP SALES IN Q2’21) Q2’21 KEY FIGURES Q2’21 SALES DEVELOPMENT In €m Q2’20 Q2’21 Change Volumes +25.4% HIGHLIGHTS Q2’21 Sales 436 712 +63.3% Prices +44.3% ● Prices up 44.3% EBITDA 59 157 +166.1% Price initiatives to offset the increased cost of propylene, acrylics and VA
Slide 17: Intermediates (15.5% of Group Sales in Q2'21)
INTERMEDIATES (15.5% OF GROUP SALES IN Q2’21) Q2’21 KEY FIGURES Q2’21 SALES DEVELOPMENT In €m Q2’20 Q2’21 Change Volumes +7.7% HIGHLIGHTS Q2’21 Sales 379 371 (2.1)% Prices +22.4% EBITDA 66 87 +31.8% ● -29.0% scope effect related to Functional Currency (3.2)% Polyolefins and PMMA divestments EBITDA m
Slide 18: Key Figures
KEY FIGURES In €m Q2’20 Q2’21 Change H1’20 H1’21 Change Sales 1,902 2,395 +25.9% 3,990 4,621 +15.8% EBITDA 286 478 +67.1% 586 836 +42.7% Specialty Materials 233 417 +79.0% 489 723 +47.9% Intermediates 66 87 +31.8% 134 162 +20.9% Corporate (13) (26) (37) (49) EBITDA margin 15.0% 20.0% 14.7% 18.1% Spe
Slide 19: Q2'21 and H1'21 Cash Flow
Q2’21 AND H1’21 CASH FLOW Reconciliation of EBITDA to net cash flow In €m Q2’20 Q2’21 H1’20 H1’21 H1’21 tax rate EBITDA 286 478 20% of REBIT (excl. exceptional items) 586 836 Current taxes (29) (68) (55) (117) Cost of debt (17) (14) (42) (27) Working capital below normative level Change in working c
Slide 20: Net Debt Evolution (Including Hybrid Bonds)
NET DEBT EVOLUTION (INCLUDING HYBRID BONDS) In €m 1,910 (298) 0.9x LTM EBITDA 1 (896) 41 1,281 328 195 1,281 31/12/2020 Rec. cash Exceptional M&A Dividends & Share FX and 30/06/2021 flow items 1 Hybrid bonds buyback 2 others 1. Includes exceptional capex and non-recurring items 2. Includes the €300m
Slide 21: Outlook
OUTLOOK The positive dynamic observed in the first half is continuing, benefiting from solid demand in most of the Group’s end markets. Arkema will nevertheless remain vigilant and ready to respond rapidly to the current evolution of the health crisis and the rising raw materials context, and will p
Slide 22: 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 the evolution of the situat