Slide 1: Third-quarter 2021 results and outlook
Third-quarter 2021 results and outlook 10 November 2021
Slide 2: Specialty Materials at the heart of our new brand territory
Specialty Materials at the heart of our new brand territory Third-quarter 2021 results and outlook 10/11/2021 2
Slide 3: Sustainability supporting strong Q3'21 performance
Sustainability supporting strong Q3’21 performance Third-quarter 2021 results and outlook 10/11/2021 3
Slide 4: Excellent Q3'21 results in a challenging operational context
Excellent Q3’21 results in a challenging operational context in €m EBITDA REBIT Adj. Net Income Net Debt (incl. hybrid bonds) 474 385 343 1,910 258 307 250 1,255 166 171 109 Q3'19 Q3'20 Q3'21 Q3'19 Q3'20 Q3'21 Q3'19 Q3'20 Q3'21 31/12/20 30/09/21 Margin 19.8% x2.0 vs Q3’20 Adj. EPS €3.44 0.8x LTM EBI
Slide 5: Specialty Materials performance significantly above 2019
Specialty Materials performance significantly above 2019 Q3’21 sales split Specialty Materials’ EBITDA 421 32.5% Exceeding +35% pre-Covid level Specialty +57% Materials 31% 87.5% €2,398m 312 268 24% 12.5% Q3’19 Q3’20 Q3’21 → Volumes up YoY, particularly in High Performance Polymers and Coating Solut
Slide 6: Accelerating demand for new materials driven by megatrends
Accelerating demand for new materials driven by megatrends GLOBAL MEGATRENDS 65% of our sales should significantly contribute to UN SDGs by 2030 KEY CHALLENGES ADDRESSED INCREASING BY ARKEMA RESOURCE SCARCITY CLIMATE CHANGE NEW TECHNOLOGIES URBANIZATION Boost new energies and low carbon mobility Dev
Slide 7: Significant opportunities in clean mobility
Significant opportunities in clean mobility Bio-based HYDROGEN Recyclable Rilsan® PA11 composites & liners for tanks PVDF membranes for fuel cells & Kynar® electrolyzers CHASSIS Rilsan® 100% recyclable Elium® composites MEGATRENDS BATTERY Kynar® High-performance and safe Li-ion battery Kynar CTO® PV
Slide 8: Extended range of products for living comfort and home efficiency
Extended range of products for living comfort and home efficiency Bio-based Low VOC Kynar Aquatec® Cool roofs, eco-friendly alternative to air-conditioning Siliporite® High thermal insulation double gazing for windows Forane® Highly insulated 1233zd foam panels MEGATRENDS Bostik solutions “Free from
Slide 9: Increased demand for high-performance bio-based lifestyle products
Increased demand for high-performance bio-based lifestyle products Bio-based CONSUMER GOODS Recyclable Design, customizable & bio- Rilsan® based glass frames Durable dishwasher baskets CONSUMER ELECTRONICS Bio-based, recyclable toys Rilsan® Durable components Rilsan® Sartomer solutions for smartphon
Slide 10: Portfolio and ESG highlights
Portfolio and ESG highlights EPOXIDES BUSINESS V.E ESG RATING → Divestment project to Cargill → Score of 67/100 → Bio-based and specialty epoxides → In the top percentile across all sectors in Blooming Prairie (US) → Annual sales of ~US$40m ASHLAND PERFORMANCE ADHESIVES → Proposed acquisition based
Slide 11: Detailed Q3'21 results and outlook
Detailed Q3’21 results and outlook Third-quarter 2021 results and outlook 10/11/2021 11
Slide 12: Q3'21 financial highlights
Q3’21 financial highlights → Up nearly 30% vs Q3'20 and 17% vs Q3’19, at constant scope and currency • Accelerating demand for cutting-edge and sustainable solutions • Volumes up by a solid 5.3% YoY, in an operational context marked by the shortage €2,398m sales of an increasing number of raw materi
Slide 13: Key figures
Key figures in €m Q3’21 Q3’20 Change Sales 2,398 1,909 +25.6% EBITDA 474 307 +54.4% Specialty Materials 421 268 +57.1% Intermediates 74 55 +34.5% Corporate -21 -16 EBITDA margin 19.8% 16.1% Specialty Materials 20.1% 16.9% Intermediates 24.7% 17.5% Recurring operating income (REBIT) 343 171 +100.6% R
Slide 14: Strong organic sales growth
Strong organic sales growth Sales in €m +23.8% +1.1% -4.6% Stronger US dollar against Integration of Fixatti, euro Ideal Work, Poliplas, +5.3% Edge Adhesives Texas, and Agiplast Ongoing price PMMA disposal on increase initiatives Continued strong 3 May 2021 in all product lines growth in batteries,
Slide 15: Adhesive Solutions (24% of Group sales)
Adhesive Solutions (24% of Group sales) Key figures Highlights in €m Q3’21 Q3’20 Change → +6.6% price effect, reflecting the Group's Sales 568 516 +10.1% actions to pass on sustained raw materials inflation EBITDA 79 73 +8.2% EBITDA margin 13.9% 14.1% → Volumes down 2.3% from Q3’20 high comparison b
Slide 16: Advanced Materials (32.5% of Group sales)
Advanced Materials (32.5% of Group sales) Key figures Highlights in €m Q3’21 Q3’20 Change → Volumes up 13.3% YoY Sales 781 603 +29.5% • Strong increase in High Performance Polymers volumes, in particular in batteries, sports and EBITDA 174 127 +37.0% bio-based consumer goods • Automotive (excluding
Slide 17: Coating Solutions (31% of Group sales)
Coating Solutions (31% of Group sales) Key figures Highlights in €m Q3’21 Q3’20 Change → Prices up 52.4% YoY Sales 742 469 +58.2% • Price actions in downstream product lines to offset high raw materials inflation EBITDA 168 68 +147.1% • Relative tightness of the acrylics market EBITDA margin 22.6% 1
Slide 18: Intermediates (12.5% of Group sales)
Intermediates (12.5% of Group sales) Key figures Highlights in €m Q3’21 Q3’20 Change → Scope effect of -37.5% related to PMMA Sales 300 315 -4.8% divestment EBITDA 74 55 +34.5% EBITDA margin 24.7% 17.5% → Prices up by a significant 27.6% YoY, reflecting more favorable market conditions REBIT 53 27 +
Slide 19: Q3'21 Cash flow
Q3’21 Cash flow in €m Reconciliation of EBITDA to net cash flow Q3’21 Q3’20 → Q3’21 tax rate EBITDA 474 307 20% of REBIT (excl. exceptional items) Current taxes -60 -31 Cost of debt -13 -19 → Working capital tightly controlled 12.3% of annualized sales at Change in working capital and fixed assets p
Slide 20: Net debt evolution (including hybrid bonds)
Net debt evolution (including hybrid bonds) in €m 0.8x LTM EBITDA 1,281 -236 1,255 162 10 11 27 Exceptional capex(1): €64m Tax on PMMA disposal: €99m 30/06/2021 Rec. cash Exceptional M&A Dividends & FX and 30/09/2021 flow items Hybrid bonds others 1. PA11 expansion in Asia and Nutrien project Third-
Slide 21: Outlook
Outlook → Activity in Q4’21 should be in line with the past few months. Operational performance will continue to be impacted by the unavailability of certain raw materials, logistical difficulties, and rising input costs, which will guide the Group's selling price policy. The automotive sector will
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