Slide 1: 20ème ODDO Forum, Lyon, 5 & 6 January 2017
20ème ODDO FORUM LYON, 5 & 6 JANVIER 2017 SOPHIE FOUILLAT, VICE PRESIDENT INVESTOR RELATIONS
Slide 2: Arkema in 2015
ARKEMA IN 2015 € 7.7 bn 19,000 Worldwide presence 136 3 R&D sales employees industrial sites and innovation worldwide in 50 countries geographical hubs 2
Slide 3: Sales breakdown by business
SALES BREAKDOWN BY BUSINESS 10% Acrylics Coating Performance Additives 14% Solutions 24% 14% Coating Resins and Additives Technical Polymers 10% 2015 SALES €7,683 m Specialty Adhesives 11% PMMA (Bostik) 20% High Performance Industrial Materials 44% 9% Specialties 32% Thiochemicals 4% 8% Hydrogen Flu
Slide 4: Main strategic directions
MAIN STRATEGIC DIRECTIONS 1 2 3 ACCELERATE GROWTH SELECTIVE GROWTH IN REINFORCE ACRYLICS OF HIGH PERFORMANCE INDUSTRIAL SPECIALTIES DOWNSTREAM MATERIALS 4 5 6 FINALIZE THE FULL MAINTAIN EMPHASIS DISPOSAL OF NON-CORE GEOGRAPHICAL ON OPERATIONAL BALANCING ASSETS EXCELLENCE 4
Slide 5: A step change in the group's profile
A STEP CHANGE IN THE GROUP’S PROFILE FY’15 SALES BY SEGMENT FY’15 SALES BY REGION Specialty “More cyclical” Asia and 28% businesses businesses RoW 38% Europe (Acrylics, 71% €7.7 bn 29% Fluorogases, €7.7 bn PMMA) (39% in 2014) 34% North America 5
Slide 6: Dividend
DIVIDEND DIVIDEND AND PAYOUT RATIO IN € / SHARE AND IN % 1.90 1.85 1.85 1.8 1.3 Dividend policy: 1.0 “aims at paying a stable to 51% growing dividend each year” 0.75 45% 0.6 0.6 32% 24% 25% 25% 17% 14% 2007 2008 2009 2010 2011 2012 2013 2014 2015 A key element of shareholder return 6
Slide 7: A strong value creation
A STRONG VALUE CREATION Since 1 January 2016: (at 30 November 2016) Arkema: +40% Peers average: +8% CAC 40: -2% 100,00 Share price since 18 May 2006 at 30 November 2016 90,00 Arkema 80,00 +241% 70,00 60,00 50,00 Peers average 40,00 +58% 30,00 CAC 40 20,00 -7% 10,00 0,00 18/05/2006 18/05/2007 18/05/2
Slide 8: 3Q'16 key take-aways
3Q’16 KEY TAKE-AWAYS +6% above strong 3Q’15 (€286 m) €303 m EBITDA Excellent results in High Performance Materials and Industrial Specialties All time high in a 3rd quarter Significantly up YoY (14.7%) 16.5% Reflects growing share of higher value added businesses and Bostik’s EBITDA margin progress
Slide 9: New developments since 30 June 2016
NEW DEVELOPMENTS SINCE 30 JUNE 2016 TECHNICAL TECHNICAL BOSTIK BOSTIK COATING RESINS POLYMERS POLYMERS AND ADDITIVES Expansion of 25% Kynar® PVDF Acquisition of Den Opening of a new New polyester specialty polyamides production capacity Braven production plant for powder resin facility production ca
Slide 10: A strong third quarter
A STRONG THIRD QUARTER EBITDA EBITDA MARGIN ADJUSTED EPS NET DEBT Down in €m +6% +180 bps in € +14% in €m €205 m 16.5% 1.45 1,406 303 1,201 286 14.7% 1.27 3Q'15 3Q'16 3Q'15 3Q'16 3Q'15 3Q'16 30/06/16 30-juin 30/09/16 3Q'16 10
Slide 11: 3Q'16 key figures
3Q’16 KEY FIGURES IN €M (EXCEPT EPS) 3Q’15 3Q’16 VARIATION Sales 1,946 1,838 -5.5% EBITDA 286 303 +5.9% EBITDA margin 14.7% 16.5% Recurring operating income 176 190 +8.0% (REBIT) REBIT margin 9.0% 10.3% Adjusted net income 95 110 +15.8% Net income - Group share 61 96 +57.4% Adjusted EPS (in euros) 1
Slide 12: 3Q'16 sales bridge
3Q’16 SALES BRIDGE SALES In €m Scope Volumes Price of business Currency +2.0% (4.5)% (2.0)% (1.0)% Up YoY in Reflects Divestment all 3 divisions changes in of Sunclear raw material 1,946 prices 1,838 3Q’15 3Q’16 12
Slide 13: High Performance Materials
HIGH PERFORMANCE MATERIALS 3Q’16 KEY FIGURES 3Q’16 SALES DEVELOPMENT IN €M 3Q’15 3Q’16 variation Volumes +1.2% Sales 866 836 (3.5)%* Prices (2.5)% EBITDA 131 140 +6.9% Currency (1.4)% EBITDA margin 15.1% 16.7% Rec. operating income 94 102 +8.5% Scope - 3Q’16 HIGHLIGHTS 3Q’16 SALES BY BUSINESS LINE S
Slide 14: Industrial Specialties
INDUSTRIAL SPECIALTIES 3Q’16 KEY FIGURES 3Q’16 SALES DEVELOPMENT IN €M 3Q’15 3Q’16 variation Volumes +1.1% Sales 608 553 (9.0)%* Prices (4.1)% EBITDA 114 123 +7.9% Currency (0.7)% EBITDA margin 18.8% 22.2% Rec. operating income 70 80 +14.3% Scope (6.4)% 3Q’16 HIGHLIGHTS 3Q’16 SALES BY BUSINESS LINE
Slide 15: Coating Solutions
COATING SOLUTIONS 3Q’16 KEY FIGURES 3Q’16 SALES DEVELOPMENT IN €M 3Q’15 3Q’16 variation Volumes +4.6% Sales 465 442 (4.9)% Prices (8.9)% EBITDA 53 54 +1.9% Currency (0.7)% EBITDA margin 11.4% 12.2% Rec. operating income 24 23 (4.2)% Scope - 3Q’16 HIGHLIGHTS 3Q’16 SALES BY BUSINESS LINE Overall good
Slide 16: 3Q'16 cash flow
3Q’16 CASH FLOW IN €M 3Q’16 EBITDA 303 Usual seasonality of working capital Working capital variation (1) 107 16.8% working capital over annualized sales ratio(2) (17.6% end of September 2015) Taxes (56) Current taxes excluding non-cash items Cost of debt (22) Capital expenditure (3) (94) 2016e cape
Slide 17: The new profile turns into higher cash generation
THE NEW PROFILE TURNS INTO HIGHER CASH GENERATION FREE CASH FLOW* IN €M 9m’14 9m’10 9m’11 9m’12 9m’13 9m’15 9m’16 Driven by higher profitability, strict working capital management and reduced capital intensity * Cash flow from operations and investments excluding the impact of portfolio management 1
Slide 18: 2016 outlook
2016 OUTLOOK Assuming an energy, raw material and currency environment in the continuity of the third quarter, and taking account of the traditional year-end seasonality, Arkema now aims to achieve a significant EBITDA growth of some 9% to 10% over the year compared to 2015 18
Slide 19: 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. Such statements are based on management’s current views and assumptions that could ultimately prove inaccurate