Slide 1: Third-quarter 2023 results and highlights
Third-quarter 2023 results and highlights 09/11/2023
Slide 2: Q3'23 financial highlights
Q3’23 financial highlights → Down 17.2% at constant currency vs Q3’22 • Volumes down 6.6% YoY in an environment of generally slow demand, as in previous €2,326m sales quarters • Negative 10.6% price effect reflecting lower raw materials as well as price normalization in PVDF and upstream acrylics fo
Slide 3: Solid EBITDA margin and high cash generation in a low volume context
Solid EBITDA margin and high cash generation in a low volume context in €million Sales EBITDA Adj. Net Income Net Debt (incl. hybrid bonds) 2,972 2,366 2,419 495 258 260 474 386 2,398 2,326 177 Q3'21 Q3'22 Q3'23 Q3'21 Q3'22 Q3'23 Q3'21 Q3'22 Q3'23 31/12/22 30/09/23 Specialty 91% Margin 16.6% Adj. EP
Slide 4: Attractive growth projects announced during September's CMD
Attractive growth projects announced during September’s CMD DMDS, a critical additive enabling Luperox®, a high-end process initiator biofuel development for renewable energy A strategic investment in Beaumont (Texas, US) A major investment in Changshu (China) consolidating our global leadership pos
Slide 5: Further significant steps to decarbonize our value chain
Further significant steps to decarbonize our value chain Decarbonization of Rilsan® PA11 carbon acrylics production footprint further decreased Major project c. -20% of CO2 -46% carbon footprint contributing to our emissions in Carling site reduction of global production 2030 decarbonization targets
Slide 6: Key figures
Key figures in €million Q3’23 Q3’22 Change 9m’23 9m’22 Change Sales 2,326 2,972 -21.7% 7,292 9,043 -19.4% EBITDA 386 495 -22.0% 1,170 1,819 -35.7% Specialty Materials 346 458 -24.5% 1,061 1,614 -34.3% Intermediates 55 59 -6.8% 173 282 -38.7% Corporate -15 -22 -64 -77 EBITDA margin 16.6% 16.7% 16.0%
Slide 7: Sales down compared to Q3'22 high level
Sales down compared to Q3’22 high level Sales in €million -6.6% -10.6% Continued weak -4.5% demand in EU and 0% the US in most end markets Expected normalization Stronger euro Integration of Good performance in PVDF and against US dollar Polytec PT and of certain sectors upstream acrylics and Chines
Slide 8: Adhesive Solutions (29% of Group sales in Q3'23)
Adhesive Solutions (29% of Group sales in Q3’23) Key figures Highlights Q3’23 in €m Q3’23 Q3’22 Change 9m’23 9m’22 Change → Impact of a 5.2% negative currency effect Sales 682 757 -9.9% 2,072 2,206 -6.1% → Volumes down 3.4% YoY EBITDA 98 90 +8.9% 286 291 -1.7% • Last year’s baseline already affected
Slide 9: Advanced Materials (37% of Group sales in Q3'23)
Advanced Materials (37% of Group sales in Q3’23) Key figures Highlights Q3’23 in €m Q3’23 Q3’22 Change 9m’23 9m’22 Change Sales 856 1,131 -24.3% 2,705 3,319 -18.5% → Prices down 13.9% YoY, mainly reflecting normalization of PVDF in batteries in China EBITDA 172 237 -27.4% 517 793 -34.8% EBITDA margi
Slide 10: Coating Solutions (25% of Group sales in Q3'23)
Coating Solutions (25% of Group sales in Q3’23) Key figures Highlights Q3’23 in €m Q3’23 Q3’22 Change 9m’23 9m’22 Change → Prices down 18.4% YoY Sales 572 825 -30.7% 1,850 2,647 -30.1% • Less favorable market conditions in upstream acrylics EBITDA 76 131 -42.0% 258 530 -51.3% • Lower raw materials p
Slide 11: Intermediates (9% of Group sales in Q3'23)
Intermediates (9% of Group sales in Q3’23) Key figures Highlights Q3’23 in €m Q3’23 Q3’22 Change 9m’23 9m’22 Change Sales 206 246 -16.3% 636 839 -24.2% → Volumes down 12.6% YoY • Mainly due to weak demand for acrylics EBITDA 55 59 -6.8% 173 282 -38.7% in Asia EBITDA margin 26.7% 24.0% 27.2% 33.6% RE
Slide 12: Solid cash flow generation
Solid cash flow generation in €million → 9m’23 tax rate Q3’23 Q3’22 9m’23 9m’22 ~21% of REBIT (excl. exceptional items) EBITDA 386 495 1,170 1,819 Current taxes -69 -76 -181 -294 Cost of debt -8 -21 -36 -47 → Working capital Change in working capital and fixed assets payables (1) 131 138 -155 -490 1
Slide 13: Net debt tightly controlled
Net debt tightly controlled in €million 1.7x LTM EBITDA 2,366 -436 82 2,419 269 94 44 31/12/2022 Rec. cash Exceptional M&A Dividends & FX and 30/09/2023 flow items Hybrid bonds others Q3'23 results and highlights - 9 November 2023 13
Slide 14: Outlook
Outlook → The economic environment remains challenging at the end of the year, in line with the level seen since the beginning of the year, and is marked by low volumes in most end markets and uncertainties in all three regions, as well as by heightened geopolitical tensions. → In this context, the
Slide 15: 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