Slide 1: Second-Quarter 2020 Results
SECOND-QUARTER 2020 RESULTS 30 JULY 2020
Slide 2: Overall robust Q2'20 performance in the exceptional Covid-19 context
OVERALL ROBUST Q2’20 PERFORMANCE IN THE EXCEPTIONAL COVID-19 CONTEXT Global economy strongly impacted by Covid-19 pandemic Down 15.6% YoY (-10.7% in H1’20) €1,902m sales Significant slowdown in the construction, transportation and industrial sectors Good demand in the nutrition, packaging and hygien
Slide 3: Highlights in Q2'20
HIGHLIGHTS IN Q2’20 FUNCTIONAL POLYOLEFINS NUTRIEN FIXATTI Innovative partnership for the supply Divestment finalization Acquisition in Adhesive Solutions of anhydrous hydrogen fluoride (AHF) Sale of Arkema’s Functional Polyolefins business, Long term stable and competitive AHF supply for Leading gl
Slide 4: Robust Q2'20 performance in the context of lockdowns
ROBUST Q2’20 PERFORMANCE IN THE CONTEXT OF LOCKDOWNS SALES EBITDA ADJ. NET INCOME FREE CASH FLOW In €m In €m In €m In €m -15.6% 15.0% €1.18 x3.2 MARGIN ADJ. EPS 2,254 288 407 1,902 192 286 90 90 Q2'19 Q2'20 Q2'19 Q2'20 Q2'19 Q2'20 Q2'19 Q2'20 4 SECOND-QUARTER 2020 RESULTS
Slide 5: Q2'20 key figures
Q2’20 KEY FIGURES In €m Q2’19 Q2’20 Change Sales 2,254 1,902 (15.6)% EBITDA 407 286 (29.7)% Specialty Materials 1 304 233 (23.4)% Intermediates 127 66 (48.0)% Corporate -24 -13 EBITDA margin 18.1% 15.0% Recurring operating income (REBIT) 278 144 (48.2)% REBIT margin 12.3% 7.6% Adjusted net income 19
Slide 6: Q2'20 sales bridge
Q2’20 SALES BRIDGE In €m Volumes Prices Scope Currency (12.2)% (5.9)% +2.9% (0.4)% Effect of lockdowns Resilient prices in Integration of Devaluation of Adhesive Solutions ArrMaz, Lambson emerging Slowdown in and Advanced Prochimir and LIP currencies construction, Materials impacting mainly transpor
Slide 7: Adhesive Solutions (24% of group sales)
ADHESIVE SOLUTIONS (24% OF GROUP SALES) Q2’20 KEY FIGURES Q2’20 SALES DEVELOPMENT Q2’20 SALES BY BUSINESS LINE In €m Q2’19 Q2’20 Change Volumes (13.2)% Sales 520 453 (12.9)% Construction & Prices (0.9)% Consumer EBITDA 71 50 (29.6)% 216 237 Currency (1.5)% EBITDA margin 13.7% 11.0% Industrial Assemb
Slide 8: Advanced Materials (33% of group sales)
ADVANCED MATERIALS (33% OF GROUP SALES) Q2’20 KEY FIGURES Q2’20 SALES DEVELOPMENT Q2’20 SALES BY BUSINESS LINE In €m Q2’19 Q2’20 Change Volumes (11.5)% Sales 650 628 (3.4)% 178 High Performance Prices (2.0)% Polymers EBITDA 142 124 (12.7)% Currency 0.0% EBITDA margin 21.8% 19.7% 450 Performance Addi
Slide 9: Coating Solutions (23% of group sales)
COATING SOLUTIONS (23% OF GROUP SALES) Q2’20 KEY FIGURES Q2’20 SALES DEVELOPMENT Q2’20 SALES BY BUSINESS LINE In €m Q2’19 Q2’20 Change Volumes (15.8)% Sales 575 436 (24.2)% 122 Coating Resins Prices (9.5)% EBITDA 91 59 (35.2)% Currency (0.1)% EBITDA margin 15.8% 13.5% 314 Coating Additives Rec. oper
Slide 10: Intermediates (20% of group sales)
INTERMEDIATES (20% OF GROUP SALES) Q2’20 KEY FIGURES Q2’20 SALES DEVELOPMENT In €m Q2’19 Q2’20 Change Volumes (8.1)% Sales 502 379 (24.5)% Prices (12.3)% EBITDA 127 66 (48.0)% Currency +0.1% EBITDA margin 25.3% 17.4% Rec. operating income 99 35 (64.6)% Scope (4.2)% Q2’20 HIGHLIGHTS €379m sales, down
Slide 11: Q2'20 cash flow
Q2’20 CASH FLOW RECONCILIATION OF EBITDA TO NET CASH FLOW Q2’20 HIGHLIGHTS In €m Q2’19 Q2’20 EBITDA 407 286 Tax rate H1’20: ~22% of REBIT (excl. Current taxes (48)1 (29) exceptional items) Cost of debt (25) (17) Strict working capital management Change in working capital and fixed assets payables 2
Slide 12: Q2'20 net debt bridge (including hybrid bonds)
Q2’20 NET DEBT BRIDGE (INCLUDING HYBRID BONDS) In €m 1.7x LTM EBITDA 2,481 (288) (242) 168 21 (6) 2,134 1,000 hybrid bonds 1,000 hybrid bonds 1,481 1,134 31/03/2020 Free cash M&A Dividends Share FX and 30/06/2020 flow buybacks others 12 SECOND-QUARTER 2020 RESULTS
Slide 13: H1'20 performance
H1’20 PERFORMANCE SALES EBITDA ADJ. NET INCOME NET DEBT (incl. hybrid bonds) In €m In €m In €m In €m -10.7% 14.7% €2.49 1.7x MARGIN ADJ. EPS LTM EBITDA 4,469 3,990 2,331 777 2,134 357 586 190 H1'19 H1'20 H1'19 H1'20 H1'19 H1'20 31/12/2019 30/06/2020 13 SECOND-QUARTER 2020 RESULTS
Slide 14: H1'20 key figures
H1’20 KEY FIGURES In €m H1’19 H1’20 Change Sales 4,469 3,990 (10.7)% EBITDA 777 586 (24.6)% Specialty Materials 1 596 489 (18.0)% Intermediates 230 134 (41.7)% Corporate -49 -37 EBITDA margin 17.4% 14.7% Recurring operating income (REBIT) 525 304 (42.1)% REBIT margin 11.7% 7.6% Adjusted net income 3
Slide 15: 2020 outlook
2020 OUTLOOK Based on the progressive lifting of lockdown measures in some important countries for the Group, Arkema expects that demand will continue to improve gradually in the second part of the year, while remaining below last year’s level The pace and strength of this improvement are still unce
Slide 16: 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 continues to spread across the world, and the evolution of