Arkema Sa · EURONEXT:AKE
Arkema Sa — CIC Forum by Market Solutions 2024
23 slides from Arkema Sa's conference presentation, Nov 20, 2024
Slide 1: CIC Forum by Market Solutions
ARKEMA CIC Forum by Market Solutions 20 November 2024 – Paris, FRANCE
Slide 2: Strategy and ambition
Strategy and ambition CIC Forum by Market Solutions 20/11/2024 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” CIC Forum by Market Solutions 20/11/2024 3
Slide 4: We have built 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: 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% 65% Near-term > 1,800 researchers by 2030 Process saf
Slide 6: 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 7: Cutting-edge technologies to serve key identified submarkets
We have developed an unmatched range of cutting-edge technologies to serve key identified submarkets Advanced Materials Adhesive Solutions Coating Solutions Green energy and electric mobility Advanced electronics Sustainable lifestyle and goods Efficient buildings and homes Healthcare and well-being
Slide 8: 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 9: 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 10: Third quarter 2024 results
Third quarter 2024 results Extract from « Third-quarter 2024 results and highlights » presentation (6 November 2024) CIC Forum by Market Solutions 20/11/2024 10
Slide 11: 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 CIC Forum
Slide 12: 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 13: Further steps achieved to decarbonize our value chain
Further steps achieved to decarbonize our value chain Rilsan® PA11 carbon footprint Breakthrough in wind turbine blade recycling further decreased ZEBRA project demonstrates closed loop system for wind turbines made with Elium® resin -80% vs traditional polyamide resins Carbon footprint using fossil
Slide 14: Launch of more sustainable adhesive solutions
Launch of more sustainable adhesive solutions New Kizen LIME Fast Glue Ultra+ range for packaging for DIY > 80% 60% renewable ingredients bio-based materials Innovative and proprietary formulation Exceptional strength, durability, designed for recyclable paper and and resistance to extreme condition
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