Slide 1: 28th ODDO BHF Forum
28th ODDO BHF Forum 9-10 January 2025 – Lyon, FRANCE
Slide 2: Strategy and ambition
Strategy and ambition 28th ODDO BHF Forum 09-10/01/2025 2
Slide 3: Our vision is shaped by the accelerating demand for high performance materials
Our vision is shaped by the accelerating demand for high performance materials A SIGNATURE “Be the Specialty Materials leader, offering the most innovative and FOR A VISION sustainable solutions to address our customers’ current and future challenges” 28th ODDO BHF Forum 09-10/01/2025 3
Slide 4: We have built over time an attractive and well-balanced portfolio of Specialty Materials
We have built over time an attractive and well-balanced portfolio of Specialty Materials Towards 100% Specialty Materials Rebalanced geographical footprint 34% 38% Specialty Materials 92% €9.5bn Adhesive Solutions 37% 2023 2023 sales Advanced Materials 25% 29% Coating Solutions 24% 8% Intermediates
Slide 5: With our high performance solutions, we support our customers in their quest for innovation
With our high performance solutions, we support our customers in their quest for innovation and sustainability Additives, resins and polymers for green energies Adhesives, sealants and coatings for efficient buildings Resins, high performance films and polymers for advanced electronics Broad One Ark
Slide 6: Our strategy underpins ambitious financial objectives
Our strategy underpins ambitious financial objectives 2028 Strict financial discipline c. €12bn Sales Net debt to EBITDA ≤2 Solid investment grade rating EBITDA c. 18% margin Operating cash ~70% conversion rate1 Sales +4%/y Organic CAGR EBITDA +7-8%/y over 2024-28 ROCE ~10% 1. Free cash flow before
Slide 7: A clear CSR roadmap is embedded in our strategy
A clear CSR roadmap is embedded in our strategy Climate GHG emissions Sustainable Sales contributing Safety Total recordable by 2030 vs 2019 Towards significantly to UN SDGs by 2030 injury rate TRIR solutions Scopes 1 + 2 Net-Zero 0.8 2050 -48.5% > 1,800 65% Near-term researchers by 2030 Process saf
Slide 8: We have developed an unmatched range of cutting-edge technologies to serve 5 key submarkets
We have developed an unmatched range of cutting-edge technologies to serve 5 key identified submarkets with superior growth Advanced Materials Adhesive Solutions Coating Solutions Green energy and electric mobility Advanced electronics Sustainable lifestyle and goods Efficient buildings and homes He
Slide 9: This combination of technologies x submarkets will accelerate our growth
This combination of technologies x submarkets will accelerate our growth 15% 25% 2023 2028 85% €9.5bn sales 75% c. €12bn sales 3x higher organic sales CAGR than Group’s average Over 50% of Arkema R&D spendings Green energy Sustainable lifestyle Advanced electronics Efficient buildings and homes Heal
Slide 10: Capital allocation will be value driven and attractive for our shareholders
Capital allocation will be value driven and attractive for our shareholders Operating cash flow over 2024-28 period c. €7bn Allocated to: Maintenance and regulatory capex Around +15% vs last 5y period (2019-23) to reflect ~55% Capex inflation, decarbonization and increased focus on batteries Growth
Slide 11: 12 major projects nearly fully financed will generate strong additional EBITDA
12 major projects nearly fully financed will generate strong additional EBITDA Total EBITDA Organic CAPEX Recent major acquisitions contribution Start-up in 2023 & 2024 Ashland Performance Adhesives • PVDF (China, France) Feb. 2022 Pressure Sensitive Adhesives • UV curing resins (China) • Bio-based
Slide 12: Third quarter 2024 results
Third quarter 2024 results Extract from « Third-quarter 2024 results and highlights » presentation (6 November 2024) 28th ODDO BHF Forum 09-10/01/2025 12
Slide 13: Sales up and high EBITDA margin in a challenging context
Sales up and high EBITDA margin in a challenging context in €million Sales EBITDA Adj. Net Income Net Debt (incl. hybrid bonds) 2,394 407 177 3,270 2,326 386 168 3,111 Q3'23 Q3'24 Q3'23 Q3'24 Q3'23 Q3'24 30/06/24 30/09/24 Specialty 92% Margin 17.0% Adj. EPS €2.25 2.0x LTM EBITDA Materials 28th ODDO
Slide 14: Q3'24 financial highlights
Q3’24 financial highlights → Up 2.9% vs Q3’23 • Volumes up 2.2% in an environment of global weak demand, particularly in Europe €2,394m sales • Some more buoyant markets such as energy, sports, healthcare and packaging • Broadly stable price effect at a negative 0.2%, reflecting dynamic management o
Slide 15: Sales increase in a global weak demand environment
Sales increase in a global weak demand environment Sales in €million +2.2% -0.2% -1.4% +2.3% Benefit from some Dynamic selling Depreciation of US PIAM integration more buoyant price management dollar and Latin markets such as in line with the American currencies energy, sports, overall raw against e
Slide 16: Adhesive Solutions (29% of Group sales in Q3'24)
Adhesive Solutions (29% of Group sales in Q3’24) Key figures Highlights Q3’24 in €m Q3’24 Q3’23 Change 9m’24 9m’23 Change Sales 682 682 - 2,068 2,072 -0.2% → Volumes up 1.9% YoY EBITDA 107 98 +9.2% 321 286 +12.2% • Good dynamic in packaging and labelling markets • Construction sector remaining chall
Slide 17: Advanced Materials (37% of Group sales in Q3'24)
Advanced Materials (37% of Group sales in Q3’24) Key figures Highlights Q3’24 in €m Q3’24 Q3’23 Change 9m’24 9m’23 Change Sales 885 856 +3.4% 2,681 2,705 -0.9% → Volumes up 2.0% YoY • Supported by sports, energy and healthcare markets EBITDA 189 172 +9.9% 541 517 +4.6% • Slowdown in automotive secto
Slide 18: Coating Solutions (26% of Group sales in Q3'24)
Coating Solutions (26% of Group sales in Q3’24) Key figures Highlights Q3’24 in €m Q3’24 Q3’23 Change 9m’24 9m’23 Change → Volumes up 8.7% YoY Sales 627 572 +9.6% 1,890 1,850 +2.2% • Low comparison base last year, marked by destocking EBITDA 81 76 +6.6% 247 258 -4.3% • Supported mainly by coatings,
Slide 19: Intermediates (8% of Group sales in Q3'24)
Intermediates (8% of Group sales in Q3’24) Key figures Highlights Q3’24 in €m Q3’24 Q3’23 Change 9m’24 9m’23 Change Sales 191 206 -7.3% 603 636 -5.2% → Volumes down 12.1% YoY EBITDA 51 55 -7.3% 174 173 +0.6% • Effect of existing quota mechanisms in refrigerant gases EBITDA margin 26.7% 26.7% 28.9% 2
Slide 20: Solid recurring cash flow
Solid recurring cash flow in €million Q3’24 Q3’23 9m’24 9m’23 EBITDA 407 386 1,208 1,170 Current taxes -52 -69 -145 -181 → 9m’24 tax rate Cost of debt -15 -8 -41 -36 ~22% of REBIT (excl. exceptional items) Change in working capital and fixed assets payables (1) -6 131 -337 -154 (*) Others 23 9 13 -1
Slide 21: Debt successfully refinanced in 2024
Debt successfully refinanced in 2024 Debt maturity schedule (€m) 1,100 Average maturity (excluding hybrids) 4.3 years (at end-Q3 2024) 900 1.5% 700 700 Average coupon (excluding hybrids) 1.5% 4.25% 2.2% (at end-Q3 2024) 500 500 400 0.75% 400 3.5% 3.5% RCF 300 300 4.8% 3 CSR criteria taken into accou
Slide 22: FY 2024 outlook
FY 2024 outlook → With a still lackluster macroeconomic context expected for the rest of the year, marked by limited visibility and a continued weak demand environment, the Group will focus on strictly managing its operating costs and optimizing its working capital in line with demand → In parallel,
Slide 23: 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 a context marked by strong geopolitical tensions, where the evolution of the world economy remain uncertain