Slide 1: Full year 2021 results and outlook
Full year 2021 results and outlook 24/02/2022
Slide 2: Excellent financial performance and strong strategic progress in 2021
Excellent financial performance and strong strategic progress in 2021 Full year 2021 results and outlook 24/02/2022 2
Slide 3: Excellent 2021 financial performance in a demanding context
Excellent 2021 financial performance in a demanding context EBITDA Adj. net income Sales €1,727m €896m €9,519m +46.1% vs 2020 x2.3 vs 2020 +25.9% vs 2020 at constant scope and currency Historic high €11.88 per share SPECIALTY EBITDA margin MATERIALS 18.1% EBITDA: €1.5bn +310 bps vs 2020 EBITDA margi
Slide 4: Innovative materials for a sustainable world
Innovative materials for a sustainable world A Specialty Materials leader offering unique innovative and sustainable solutions to address our customers’ current and future 24% challenges 29% €8.1bn sales 5 corporate values supporting our vision Simplicity Solidarity Inclusion 32.5% Performance Empow
Slide 5: Strong progress in our strategic roadmap
Strong progress in our strategic roadmap Key steps High return Expanding Strong CSR achieved in expansions to opportunities from commitment portfolio capture sustainable our sustainability- increasingly transformation growth driven innovation recognized Full year 2021 results and outlook 24/02/2022
Slide 6: Two major M&A steps with Ashland acquisition and PMMA disposal
Two major M&A steps with Ashland acquisition and PMMA disposal Major steps to refocus our portfolio towards Specialty Materials Specialty Materials sales 32.5% Ashland Performance Adhesives PMMA Specialty Acquisition, expected to close in Q1’22 Divestment to Trinseo, closing 3 May 2021 Materials 29%
Slide 7: High return expansions to capture sustainable growth
High return expansions to capture sustainable growth Bio-based, renewable Kynar® PVDF Forane® Sartomer® Pebax® Rilsan® PA11 Hydrofluoric acid +50% capacity in 15 kt/yr 1233zd +100% photocure +25% global capacity +50% global capacity 40 kt/yr supply Changshu, CN capacity in Calvert resins capacity in
Slide 8: Expanding opportunities from our sustainability-driven innovation
Expanding opportunities from our sustainability-driven innovation Global megatrends Urbanization Climate Resource Technological and social change scarcity transformation change We expect to generate Priorities from our 5 innovation platforms €1.5bn additional sales by 2030* vs €1.0bn previously anno
Slide 9: Significant opportunities in clean mobility
Significant opportunities in clean mobility HYDROGEN PA11 for tanks CHASSIS PVDF for fuel cells & electrolyzers 100% recyclable composites €1bn sales in batteries by 2030 BATTERY New Center of Excellence for batteries PVDF for cathode and separators HYBRID in France Ultrapure electrolyte salts PA11
Slide 10: High growth potential in 3D printing
High growth potential in 3D printing Leading portfolio of solutions for the major 3D printing technologies Consumer goods >20% CAGR 2019-2024 * Filament extrusion Industry * Source: market estimation, Wohlers report 2019 Radiation Aeronautics curing 3 Centers of Excellence dedicated to each technolo
Slide 11: Increased demand for sustainable lifestyle products
Increased demand for sustainable lifestyle products Consumer goods Customizable & bio-based eyeglass frames Bio-based, recyclable toys >20% CAGR 2020-2025 * Technical bio-based textile * Source: Arkema’s demand growth estimation High performance sports 100% recyclable running shoes High energy retur
Slide 12: Strong CSR commitment increasingly recognized
Strong CSR commitment increasingly recognized Top percentile → Improved ranking to 3rd in across all sectors DJSI World 2021 vs 6th in 2020 “Chemicals” category Score: 67 CSA by S&P Global score: 82 Rating: A 1st decile (global) (Sept 2021) B for Climate change CAC 40® ESG Among top 1% Integration i
Slide 13: Continued progress in our CSR structuring programs
Continued progress in our 3 CSR structuring programs Archimedes program Circular Economy Climate Plan Moving toward higher positive impact A sustainable resource management Contain global warming Commitment to Paris Agreement ImpACT+ target Life Cycle Analysis target Science Based Target wb 2°C In k
Slide 14: Strengthening safety and promoting diversity
Strengthening safety and promoting diversity Safety Diversity TRIR (Number of accidents per million hours worked) in senior management and executive positions 1.6 Women 1.3 1.4 30% 1.0 1.0 24% 26% ≤ 0.8 19% 21% 23% 23% 2017 2018 2019 2020 2021 2030 2017 2018 2019 2020 2021 2024 2030 NEW NEW PSER (Pr
Slide 15: High value creation for shareholders
High value creation for shareholders Dividend Share price evolution (in €/share) per financial year €/share Arkema 3.0 +32.5% 2.2 2.3 2.5 in Covid 2.5 context CAC 40 +28.9% Peers 2 1 2017 2018 2019 2020 2021 +15.2% → In line with the Group’s ambition to progressively increase shareholder returns (1)
Slide 16: Detailed Q4'21 & 2021 results and outlook
Detailed Q4’21 & 2021 results and outlook Full year 2021 results and outlook 24/02/2022 16
Slide 17: 2021 financial highlights
2021 financial highlights → Up by 25.9% vs 2020 at constant scope and currency • 7.3% growth in volumes, driven notably by robust demand for sustainable solutions with high technological content, particularly in batteries, €9,519m sales 3D printing, consumer goods and more environmentally friendly p
Slide 18: Key figures
Key figures in €m Q4’21 Q4’20 Change 2021 2020 Change Sales 2,500 1,985 +25.9% 9,519 7,884 +20.7% EBITDA 417 289 +44.3% 1,727 1,182 +46.1% Specialty Materials 359 261 +37.5% 1,503 1,018 +47.6% Intermediates 80 42 +90.5% 316 231 +36.8% Corporate -22 -14 -92 -67 EBITDA margin 16.7% 14.6% 18.1% 15.0% S
Slide 19: Strong organic sales growth
Strong organic sales growth Sales in €m +18.6% -1.1% -4.1% +7.3% Stronger euro against US Integration of Fixatti, dollar Ideal Work, Poliplas, Edge Adhesives Texas, and Agiplast Adaptation of Improved market selling prices in Disposals of PMMA on environment the face of high 3 May 2021 and raw mater
Slide 20: Adhesive Solutions (24% of Group sales)
Adhesive Solutions (24% of Group sales) Key figures 2021 highlights in €m Q4’21 Q4’20 Change 2021 2020 Change → Volumes up 5.4% YoY Sales 580 512 +13.3% 2,278 1,996 +14.1% • Robust demand in construction and DIY • Recovery in high performance industrial applications EBITDA 69 69 - 316 261 +21.1% pos
Slide 21: Advanced Materials (32.5% of Group sales)
Advanced Materials (32.5% of Group sales) Key figures 2021 highlights in €m Q4’21 Q4’20 Change 2021 2020 Change → Volumes up 10.3% YoY Sales 874 644 +35.7% 3,087 2,527 +22.2% • Driven by High Performance Polymers’ strong dynamic in most end markets, despite decline in EBITDA 168 123 +36.6% 662 496 +
Slide 22: Coating Solutions (29% of Group sales)
Coating Solutions (29% of Group sales) Key figures 2021 highlights in €m Q4’21 Q4’20 Change 2021 2020 Change → Prices up 37.6% YoY Sales 725 489 +48.3% 2,746 1,911 +43.7% • Necessary price increases in downstream product lines to offset very high raw materials and energy EBITDA 122 69 +76.8% 525 261
Slide 23: Intermediates (14.5% of Group sales)
Intermediates (14.5% of Group sales) Key figures 2021 highlights in €m Q4’21 Q4’20 Change 2021 2020 Change → Scope effect of -29.1% YoY related to PMMA Sales 312 334 -6.6% 1,378 1,425 -3.3% and Functional Polyolefins divestments EBITDA 80 42 +90.5% 316 231 +36.8% EBITDA margin 25.6% 12.6% 22.9% 16.2
Slide 24: 2021 cash flow
2021 cash flow in €m → 2021 tax rate Reconciliation of EBITDA to net cash flow • 20% of REBIT (excl. exceptional items) • In 2022, ~21% of REBIT (excl. exceptional 2021 2020 items) EBITDA 1,727 1,182 → Working capital well controlled Current taxes -233 -121 12.7% of annual sales (excl. PMMA) Cost of
Slide 25: Net debt evolution (including hybrid bonds)
Net debt evolution (including hybrid bonds) in €m 1,910 0.7x LTM EBITDA -756 277 -909 120 1,177 329 206 31/12/2020 Rec. cash Exceptional M&A Dividends & Share FX and 31/12/2021 flow items Hybrid bonds buyback others Full year 2021 results and outlook 24/02/2022 25
Slide 26: Further strengthen our Specialty Materials in 2022
Further strengthen our Specialty Materials in 2022 M&A High return projects Innovation CSR → Integrate Ashland → Start up our major → Accelerate development → Reinforce climate actions Performance Adhesives and expansion projects in clean mobility, along the value chain implement synergies with ligh
Slide 27: Outlook
Outlook → In 2022, Arkema should benefit from a positive level of global demand with nuances in different regions and markets, and from its leading positioning on innovative, high performance Specialty Materials. → Environment still volatile at the start of the year, marked by uncertainty related to
Slide 28: 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