Slide 1: Third Quarter 2018 Results
THIRD QUARTER 2018 RESULTS 6 NOVEMBER 2018
Slide 2: 3Q'18 Key Take-aways
3Q’18 KEY TAKE-AWAYS +7.3% up YoY €2,167m sales +6.7% at constant scope and FX +5.4% up on excellent 3Q’17 (€355m) All time high EBITDA in 3Q €374m EBITDA Up YoY in all three divisions On track with FY guidance 17.3% EBITDA margin Resilient at high levels (17.6% in 3Q’17) +18% up YoY on higher EBITD
Slide 3: Main Announcements Since 30 June 2018
MAIN ANNOUNCEMENTS SINCE 30 JUNE 2018 Bostik ACQUISITIONS WITHIN BOSTIK BOLT-ON PEKK ADVANCED MATERIALS Acquisition of Acquisition of Creation of a joint-venture 3D printing Nitta-Gelatin’s Afinitica with Barrday industrial adhesives ~€30m annual sales Small bolt-on acquisition Thermoplastic composi
Slide 4: 3Q'18 Highlights
3Q’18 HIGHLIGHTS EBITDA REBIT ADJUSTED EPS NET DEBT In €m In €m In € In €m 24% +5.4% +7.3% +17.3% GEARING 1,372 374 355 2.44 1,167 265 247 2.08 3Q'17 3Q'18 3Q'17 3Q'18 3Q'17 3Q'18 30/06/18 30/09/18 4 THIRD QUARTER 2018 RESULTS
Slide 5: 3Q'18 Key Figures
3Q’18 KEY FIGURES In €m (except EPS) 3Q’17 3Q’18 CHANGE Sales 2,019 2,167 +7.3% EBITDA 355 374 +5.4% EBITDA margin 17.6% 17.3% Recurring operating income (REBIT) 247 265 +7.3% REBIT margin 12.2% 12.2% Adjusted net income 158 186 +17.7% Net income – Group share 142 174 +22.5% Adjusted EPS (in euros)
Slide 6: 3Q'18 Sales Bridge
3Q’18 SALES BRIDGE SALES In €m Scope Volumes Price Currency of business +0.1% +6.6% +0.9% (0.3)% Strong base of Continued Integration of 3Q’17 actions to XL Brands and increase selling Nitta industrial Priority given to prices to recover adhesives price increases higher raw 2,019 over volumes materi
Slide 7: High Performance Materials (46% of Group Sales)
HIGH PERFORMANCE MATERIALS (46% OF GROUP SALES) 3Q’18 KEY FIGURES 3Q’18 SALES DEVELOPMENT 3Q’18 SALES BY BUSINESS LINE In €m 3Q’17 3Q’18 Change Volumes +0.5% Bostik Sales 955 987 +3.4% 25% 23% Prices +1.9% EBITDA 161 162 +0.6% Performance Additives Currency (1.0)% EBITDA margin 16.9% 16.4% 52% Techn
Slide 8: Industrial Specialties (30% of Group Sales)
INDUSTRIAL SPECIALTIES (30% OF GROUP SALES) 3Q’18 KEY FIGURES 3Q’18 SALES DEVELOPMENT 3Q’18 SALES BY BUSINESS LINE In €m 3Q’17 3Q’18 Change Volumes (3.3)% 13% PMMA Sales 594 646 +8.8% 31% Prices +11.4% Thiochemicals EBITDA 149 165 +10.7% 32% Fluorogases Currency +0.6% EBITDA margin 25.1% 25.5% 24% H
Slide 9: Coating Solutions (24% of Group Sales)
COATING SOLUTIONS (24% OF GROUP SALES) 3Q’18 KEY FIGURES 3Q’18 SALES DEVELOPMENT 3Q’18 SALES BY BUSINESS LINE In €m 3Q’17 3Q’18 Change Volumes +3.5% Sales 463 527 +13.8% Prices +10.2% Coating Resins 45% and Additives EBITDA 62 65 +4.8% 55% Currency +0.1% EBITDA margin 13.4% 12.3% Acrylics Rec. opera
Slide 10: 3Q'18 Cash Flow
3Q’18 CASH FLOW In €m 3Q’17 3Q’18 3Q’18 highlights EBITDA 355 374 In a context of higher raw material costs Change in working capital (1) 94 65 16.1% WC over annualized sales ratio versus 15.5% at 30/09/17 and 16.8% at 30/09/16 Change in fixed assets payables (1) 4 9 Current taxes (50) (45) US tax r
Slide 11: 2018 Outlook
2018 OUTLOOK Macro-economic environment should remain contrasted ● Different dynamics by end-markets and regions ● Geopolitical tensions ● High raw material prices Arkema will continue to focus on internal drivers ● Innovation in advanced materials ● Integration of bolt-on acquisitions in adhesives
Slide 12: 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