Slide 1: Full year 2023 results and highlights
Full year 2023 results and highlights 29/02/2024
Slide 2: Arkema in a snapshot (2023)
Arkema in a snapshot (2023) €9.5bn sales Europe €275m 34% of sales R&D expenditure North America Asia 37% of sales 24% of sales €634m total capex Rest of the world 5% of sales 21,100 employees 55 countries 151 production sites Full year 2023 results and highlights 29/02/2024 2
Slide 3: 3 coherent Specialty Materials segments serving attractive markets
3 coherent Specialty Materials segments serving attractive markets Segments 31% Building & construction Specialty Materials 38% 92% 27% General industry 25% 19% Consumer goods & electronics 29% 8% 12% Water, health & nutrition Adhesive Solutions Coating Solutions Advanced Materials Intermediates 11%
Slide 4: 2023 financial highlights
2023 financial highlights → Down 16.1% YoY at constant scope and currency • Volumes down 10%, reflecting the overall slowdown in demand and destocking €9,514m sales • Positive dynamic in innovation-driven high performance solutions addressing sustainable megatrends, such as in new energies, bio-base
Slide 5: 2023 key take-aways
2023 key take-aways Solid results Excellent in a challenging cash generation macroeconomic context and strong balance sheet Strengthening of the Group’s cutting-edge technologies with PIAM acquisition and organic capex Ambitious 2028 Continuous progress roadmap in CSR unveiled during the CMD includi
Slide 6: Solid results in a challenging context
Solid results in a challenging context EBITDA (€m) and EBITDA margin 2,110 1,727 €1,630m 1,457 on average 1,501 over 2020-23 1,182 18.1% 18.3% 16.7% 15.8% 15.0% 2019 2020 2021 2022 2023 EBITDA EBITDA margin Full year 2023 results and highlights 29/02/2024 6
Slide 7: Excellent cash generation
Excellent cash generation Recurring cash flow (€m) & cash conversion 933 786 762 756 761 64% 51% 54% on average over 2020-23 51% 44% 44% 2019 2020 2021 2022 2023 EBITDA to cash Recurring cash flow conversion rate Full year 2023 results and highlights 29/02/2024 7
Slide 8: Growing dividend policy
Growing dividend policy Dividend (€/share) per fiscal year 2023 + 12%/y over 2019-23 period €3.50 3.4 3.5 Dividend proposed to the annual general 3.0 meeting of 15 May 2024 2.5 2.2 Up 3% vs 2022 in line with the Group’s policy of progressively increasing the dividend 40% Payout ratio (1) in line wit
Slide 9: Extension of debt maturity through successful refinancing in 2023
Extension of debt maturity through successful refinancing in 2023 in €m → Refinancing of €1,100m senior bonds in 2023 1,100 → Average maturity (incl. hybrids) 900 3.7 years (end of Q4’23) 1.5% 700 700 1.5% 4.25% → Average coupon (incl. hybrids) 500 400 2.1% 0.75% 400 2.75% 300 300 3.5% 1.5% 0.125% →
Slide 10: PIAM acquisition closed in December offering superior growth potential
PIAM acquisition1 closed in December offering superior growth potential in attractive markets PI Advanced Materials Progressive rebound expected from Q2’24 Superior sales growth after slow 2023 expected at 13%/y • Volume ramp-up from March • In line with electronics market dynamic PI films and varni
Slide 11: Promising bolt-on acquisitions for Bostik
Promising bolt-on acquisitions for Bostik Arc Building Products (Ireland) Tile adhesives and floor preparation systems Polytec PT Key Irish manufacturer, notably in powder adhesives (Germany) €15m annual sales Thermal interface materials Closing in January 24 for batteries and engineering adhesives
Slide 12: Sustainable innovation driving new business
Sustainable innovation driving new business > 1,800 Acceleration in Recyclable turbine researchers batteries blades with Elium® 216 • Validation testing completed new patents filed Acquisition of for first blade (65m long) >90% linked to a stake in Tiamat, • Second blade (77m) partly made sustainabl
Slide 13: Organic capex in cutting-edge technologies to drive future growth
Organic capex in cutting-edge technologies to drive future growth UV curing PVDF Bio-based PA11 Pebax® Fluorospecialties resins Expansions Doubling capacity New units Expansion HF with Nutrien (US) (China, France) (China) (Singapore, China) (France) HFO 1233zd (US) Batteries, semicon New energies, C
Slide 14: Delivering 1.5°C trajectory by 2030, paving the way for Net-Zero in 2050
Delivering 1.5°C trajectory by 2030, paving the way for Net-Zero in 2050 GHG emissions 2030 targets (vs 2019) -48.5% for Scopes 1 & 2 -39% in 2023 vs 2019 -54% for Scope 3 -53% in 2023 vs 2019 Net energy purchases 2030 targets (vs 2012) - 25% - 9% in 2023 vs 2012 Full year 2023 results and highlight
Slide 15: Major steps achieved in the shift towards renewable energy
Major steps achieved in the shift towards renewable energy New long-term supply agreements 20 GWh/year from solar energy with EDF Renouvelables 70% of Bostik’s power needs in France starting 2026 27% 150 GWh/year electricity from from solar energy and certificates renewable sources with 3 US provide
Slide 16: Continued progress in CSR in line with 2030 objectives
Continued progress in CSR in line with 2030 objectives Environment Circular economy 2030 2023 targets 56% of sales covered by a Life Cycle Assessment Chemical oxygen demand in 2023 in water - 62% 2030 target : 90% - 65% vs 2012 VOC emissions in air - 51% - 65% vs 2012 51% of sales 1 Water withdrawal
Slide 17: Strong CSR recognition by non-financial ratings agencies
Strong CSR recognition by non-financial ratings agencies Improved to A- for Climate change B for Water security IMPROVED RATING Rating A → ranked 4th in DJSI World 2023 Category “Chemicals” 78 S&P Global 1st decile (global) Sustainability Yearbook 2024 Inclusion in the CAC® SBT 1.5° index created in
Slide 18: Arkema recognized as an employer of choice
Arkema recognized as an employer of choice Certified Top Employer Europe for 2024 and Top Employer in 4 other countries 3rd in the ranking of France’s 500 Favorite 4th consecutive year Employers for 2024 in the ranking Full year 2023 results and highlights 29/02/2024 18
Slide 19: Promoting well-being at work and diversity
Promoting well-being at work and diversity Engagement survey ARKEMA CARES 2023* 29% Women in senior management and executive positions 77% Employee engagement rate 2030 target : ≥ 80% 40% Non-French in senior management and executive positions *Annual internal survey proposed to all the Group’s empl
Slide 20: Maintaining high safety standards
Maintaining high safety standards Continued focus on safety Rates per million hours worked 5 4 2.8 2030 targets 3 PSER 2 process safety events 2.0 per million hours worked (PSER) 0.9 1 TRIR 0 accident per million 0.8 2018 2019 2020 2021 2022 2023 hours worked (TRIR) Full year 2023 results and highli
Slide 21: Outlook 2024
Outlook 2024 → Q1’24 has started in the continuity of the previous quarter. The macroeconomic context remains marked by a lack of visibility and soft demand. First-quarter EBITDA should thus be comparable to the fourth-quarter 2023 level and below the first-quarter 2023 level, which still benefited
Slide 22: Detailed Q4 & FY 2023 results
Detailed Q4 & FY 2023 results Full year 2023 results and highlights 29/02/2024 22
Slide 23: Key figures
Key figures Q4’23 Q4’22 Change 2023 2022 Change Sales 2,222 2,507 -11.4% 9,514 11,550 -17.6% EBITDA 331 291 +13.7% 1,501 2,110 -28.9% Specialty Materials 312 286 +9.1% 1,373 1,900 -27.7% Intermediates 40 24 +66.7% 213 306 -30.4% Corporate -21 -19 -85 -96 EBITDA margin 14.9% 11.6% 15.8% 18.3% Special
Slide 24: Sales reflecting lower demand and destocking
Sales reflecting lower demand and destocking Sales in €million -10.0% -6.1% -2.2% +0.7% Overall slowdown and destocking Normalization Positive dynamic in Stronger euro Integration of of PVDF and solutions addressing against US dollar Polytec PT in June and upstream acrylics sustainable and Chinese y
Slide 25: Adhesive Solutions (29% of Group sales in 2023)
Adhesive Solutions (29% of Group sales in 2023) Key figures 2023 highlights in €m Q4’23 Q4’22 Change 2023 2022 Change → Prices up 0.9% YoY Sales 642 692 -7.2% 2,714 2,898 -6.3% • Positive impact in H1’23 of the price increases EBITDA 94 75 +25.3% 380 366 +3.8% implemented in 2022 in response to cost
Slide 26: Advanced Materials (38% of Group sales in 2023)
Advanced Materials (38% of Group sales in 2023) Key figures 2023 highlights in €m Q4’23 Q4’22 Change 2023 2022 Change → Volumes down 8.0% YoY Sales 857 1,022 -16.1% 3,562 4,341 -17.9% • Soft demand overall and destocking notably in Performance Additives in Europe EBITDA 149 148 +0.7% 666 941 -29.2%
Slide 27: Coating Solutions (25% of Group sales in 2023)
Coating Solutions (25% of Group sales in 2023) Key figures 2023 highlights in €m Q4’23 Q4’22 Change 2023 2022 Change Sales 552 603 -8.5% 2,402 3,250 -26.1% → Prices down 13.1% YoY • Progressive normalization of market conditions in EBITDA 69 63 +9.5% 327 593 -44.9% upstream acrylic prices after an e
Slide 28: Intermediates (8% of Group sales in 2023)
Intermediates (8% of Group sales in 2023) Key figures 2023 highlights in €m Q4’23 Q4’22 Change 2023 2022 Change Sales 161 181 -11.0% 797 1,020 -21.9% → Volumes down 18.7% YoY EBITDA 40 24 +66.7% 213 306 -30.4% • Low demand for acrylics in Asia EBITDA margin 24.8% 13.3% 26.7% 30.0% REBIT 35 8 +337.5%
Slide 29: Excellent cash flow generation
Excellent cash flow generation in €m → 2023 tax rate 21% of REBIT (excl. exceptional items) Q4’23 Q4’22 2023 2022 EBITDA 331 291 1,501 2,110 → Strict working capital management Current taxes -3 -32 -184 -326 13.1% of annual sales excluding PIAM (12.6% at end-2022) Cost of debt -17 -24 -53 -71 Change
Slide 30: Net debt tightly controlled below 2x EBITDA
Net debt tightly controlled below 2x EBITDA in €million 1.95x EBITDA 2023 212 269 708 -761 136 2,930 2,366 Mainly PIAM 54% stake 31/12/2022 Rec. cash Exceptional M&A Dividends & FX and 31/12/2023 flow items Hybrid bonds others Full year 2023 results and highlights 29/02/2024 30
Slide 31: 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