Slide 1: Second-quarter 2023 results and outlook
Second-quarter 2023 results and outlook 28/07/2023
Slide 2: Q2'23 financial highlights
Q2’23 financial highlights → Down by 23% compared with the particularly high level of Q2’22 • Overall weak demand in most end markets and continued destocking €2,442m sales • • Positive momentum in high performance solutions driven by sustainability trends Normalization of PVDF and upstream acrylics
Slide 3: Solid results in a weak demand environment
Solid results in a weak demand environment in €million Sales EBITDA Adj. Net Income Net Debt (incl. hybrid bonds) 3,184 705 443 2,645 2,366 478 2,442 417 2,395 267 207 Q2'21 Q2'22 Q2'23 Q2'21 Q2'22 Q2'23 Q2'21 Q2'22 Q2'23 31/12/22 30/06/23 Specialty Materials 91% Margin 17.1% Adj. EPS €2.77 1.7x LTM
Slide 4: New significant milestone in Arkema's transformation into a pure Specialty Materials player
New significant milestone in Arkema’s transformation into a pure Specialty Materials player Proposed acquisition of 54% stake in PI Advanced Materials * > €200m → 13% p.a. expected growth in attractive Sales in 2022 consumer electronics and EV markets World → #1 c.30% Highly complementary product po
Slide 5: Second-quarter 2023 highlights
Second-quarter 2023 highlights Approval of our 1.5°C trajectory by SBTi Finalization of Polytec PT acquisition Across the whole value chain Thermal interface materials for batteries and engineering adhesives for electronics -48.5% GHG emissions for Scopes 1 + 2 c.€15m sales, one main production site
Slide 6: Key figures
Key figures in €million Q2’23 Q2’22 Change H1’23 H1’22 Change Sales 2,442 3,184 -23.3% 4,966 6,071 -18.2% EBITDA 417 705 -40.9% 784 1,324 -40.8% Specialty Materials 368 600 -38.7% 715 1,156 -38.1% Intermediates 69 129 -46.5% 118 223 -47.1% Corporate -20 -24 -49 -55 EBITDA margin 17.1% 22.1% 15.8% 21
Slide 7: Sales down relative to the particularly elevated level of Q2'22
Sales down relative to the particularly elevated level of Q2’22 Sales in €million -15.2% -6.6% -1.9% +0.4% Overall weak demand in most end markets Positive in most Weaker US Integration of product lines dollar and Permoseal, Continued Chinese yuan Polimeros Especiales destocking Normalization agains
Slide 8: Adhesive Solutions (28.5% of Group sales in Q2'23)
Adhesive Solutions (28.5% of Group sales in Q2’23) Key figures Highlights Q2’23 in €m Q2’23 Q2’22 Change H1’23 H1’22 Change Sales 692 779 -11.2% 1,390 1,449 -4.1% → Price effect +2.3% YoY, mostly reflecting 2022 price increases in response to cost inflation EBITDA 95 111 -14.4% 188 201 -6.5% EBITDA
Slide 9: Advanced Materials (37.5% of Group sales in Q2'23)
Advanced Materials (37.5% of Group sales in Q2’23) Key figures Highlights Q2’23 in €m Q2’23 Q2’22 Change H1’23 H1’22 Change → Price effect -7.1% YoY • Normalization, as expected, of PVDF in batteries Sales 912 1,113 -18.1% 1,849 2,188 -15.5% • Positive trend in other activities in the face EBITDA 18
Slide 10: Coating Solutions (25% of Group sales in Q2'23)
Coating Solutions (25% of Group sales in Q2’23) Key figures Highlights Q2’23 in €m Q2’23 Q2’22 Change H1’23 H1’22 Change Sales 617 960 -35.7% 1,278 1,822 -29.9% → Price effect -12.7%, reflecting markedly less favorable conditions in upstream EBITDA 88 207 -57.5% 182 399 -54.4% acrylics EBITDA margin
Slide 11: Intermediates (9% of Group sales in Q2'23)
Intermediates (9% of Group sales in Q2’23) Key figures Highlights Q2’23 in €m Q2’23 Q2’22 Change H1’23 H1’22 Change Sales 212 322 -34.2% 430 593 -27.5% → Prices down 8.4% YoY EBITDA 69 129 -46.5% 118 223 -47.1% • Positive price dynamics in refrigerant gases EBITDA margin 32.5% 40.1% 27.4% 37.6% • Le
Slide 12: Cash flow reflecting robust results and working capital seasonality
Cash flow reflecting robust results and working capital seasonality in €million → Q2’23 tax rate 21% of REBIT (excl. exceptional items) Q2’23 Q2’22 H1’23 H1’22 EBITDA 417 705 784 1,324 Current taxes -57 -117 -112 -218 → Working capital Cost of debt -12 -13 -28 -26 • Limited increase in a context of
Slide 13: Net debt evolution (including hybrid bonds)
Net debt evolution (including hybrid bonds) in €million 1.7x LTM EBITDA 258 51 2,645 2,366 55 39 -124 Dividend : €253m Hybrid bonds: €5m 31/12/2022 Rec. cash Exceptional M&A Dividends & FX and 30/06/2023 flow items Hybrid bonds others Q2'23 results and outlook - 28 July 2023 13
Slide 14: Outlook
Outlook → Macroeconomic environment in line with that of the first six months of the year. Volumes sharply lower than last year with reduced visibility at the start of the second half. Price of certain raw materials and energy continues to decrease. → In this context, the Group will strive to contin
Slide 15: 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 consequences of the Russian offensive in Ukraine and the economic sanctions