Arkema Sa · EURONEXT:AKE
Arkema Sa — Morgan Stanley Chemicals Cannonball Run Field Trip 2025
33 slides from Arkema Sa's conference presentation, Jun 19, 2025
Slide 1: Morgan Stanley Chemicals Cannonball Run Field Trip
Thierry Le Hénaff Chairman and CEO Morgan Stanley Chemicals Cannonball Run Field Trip 19 June 2025 – Paris, FRANCE
Slide 2: A vision shaped by the accelerating demand for high performance materials
A vision shaped by the accelerating demand for high performance materials a SIGNATURE “Be a Specialty Materials leader offering innovative and sustainable for a VISION solutions to address our customers’ current and future challenges” Morgan Stanley Chemicals Cannonball Run Field Trip - June 2025 2
Slide 3: Arkema 2024 overview
Arkema 2024 overview 92% sales on Balanced Specialty Materials geographical footprint Markets Specialty Building & Construction Materials 37% 5% 28% 92 % 33% General Industry 27% €9.5bn €9.5bn 27% sales sales 26% Consumer goods & Electronics 29% 21% 8% 35% Health, water & nutrition Adhesives Solutio
Slide 4: 2024 key figures
2024 key figures Sales Adjusted net income €9,544m €616m Stable vs 2023 8.23 € per share Net debt EBITDA and hybrid bonds €1,532m €3,241m 16.1% EBITDA margin 2.1x EBITDA 2024 Morgan Stanley Chemicals Cannonball Run Field Trip - June 2025 4
Slide 5: Superior resilience in different macro environments
Superior resilience in different macro environments Lower margin volatility Comparative EBITDA margin evolution compared to peers (2018-24) 25% EBITDA margin volatility1 20% Arkema (Specialty Materials) Arkema Specialty Materials 270 bps 15% Peers1 10% Peers2 average 540 bps 1. Difference between hi
Slide 6: Continuous cost-cutting initiatives
Continuous cost-cutting initiatives Better products and €55m process yields, and cost savings improved energy efficiency in 2024 1/3 fixed costs Digitalization, automation 2/3 variable costs and process simplification Global procurement strategy for goods and services In line with 2028 target Improv
Slide 7: Attractive technologies serving high-growth platforms
Attractive technologies serving 5 identified high-growth platforms One Arkema portfolio in EV batteries, and additives, High performance and High performance resins and polymer in bio-based polymers for polymers for green energy and sustainable lifestyle health and electric mobility and goods well-b
Slide 8: Latest sustainable innovations serving these high-growth platforms
Latest sustainable innovations serving these high-growth platforms Textile and paint markets Flooring adhesive Product carbon footprint R3Bond® SYSTEM enabling reduction up to 30% to recycle floor covering with bio-based ethyl acrylate Green hydrogen 3D printing New grades of molecular sieves Recycl
Slide 9: High density of projects to support our growth
High density of projects to support our growth CAPEX EBITDA contribution > 95% disbursed at end of 2024 UV curing resins (China) > +€400m Electronics and medical Bio-based Amino 11 and PA11 (Singapore, China) Consumer goods > €600m Niche additives (China) Renewable energy PVDF (China) Batteries PVDF
Slide 10: Major growth projects located in North America and Asia
Major growth projects located in North America and Asia Acquisition CAPEX Asia & RoW PI Advanced Materials (54%) Bio-based Amino 11 and PA11 Additive for renewable energy PVDF for batteries UV curing resins for electronics and medical North America Ashland Performance Adhesives Europe Dow laminating
Slide 11: Startup of attractive industrial investments during the 1st semester 2025
Startup of 3 attractive industrial investments during the 1st semester 2025 Fluorospecialty for building insulation New unit for 1233zd US$60m investment in Calvert City (US) Additive for biofuels and refining 35% increase of our global capacities of DMDS €130m investment in Beaumont (US) Ni
Slide 12: Significant growth opportunities confirmed for PIAM
Significant growth opportunities confirmed for PIAM Growth drivers +165% EBITDA in 2024 vs. 2023 New product High-value-added launches in mobile ultra-thin films in devices mobile and display (foldable, 5G) (OLED, slimmer devices) Promising start of the year 2025 New certifications Double-digit grow
Slide 13: Promising first steps for Dow's laminating adhesives business
Promising first steps for Dow’s laminating adhesives business Development potential and synergies confirmed Start of the year aligned with expectations +US$30m EBITDA synergies within 5 years One of the global leaders of adhesives Detailed roadmap defined and short-term initiatives launched for the
Slide 14: Strengthening our targets on key CSR indicators
Strengthening our targets on 5 key CSR indicators CLIMATE WATER PEOPLE Scope 3 GHG emissions Water withdrawals TRIR (in Mt CO2e) (in million of cu.m) (accident per million hours worked) 109 1.4 152 Initial Revised 82 82 80 Initial Revised 0.8 0.8 0.7 -25% -27% 2019 2024 2030 target 2030 2030 2019 20
Slide 15: A CSR performance recognized by rating agencies and external labels
A CSR performance recognized by rating agencies and external labels A on climate change Rating B- Top 2% Rating A A- on water security vs 2023 vs 2023 vs 2023 vs 2023 European Responsible 19 ISCC+ Solar Impulse Efficient Numerous external Care Awards certifications Solutions labels awards for our wa
Slide 16: A cash generation reflecting the finalization of major growth projects
A cash generation reflecting the finalization of major growth projects Recurring cash flow (€m) 933 Strict management of working capital at 13.8% of sales at 762 761 end-December 2024 756 EBITDA to operating cash conversion rate at 77% 419 (in line with the 70% target) Recurring capex at €761m
Slide 17: Continuous increase of shareholder return
Continuous increase of shareholder return Dividend (1) Dividend per share (€/share) €3.60 for the year 2024 3.6 3.5 Payout ratio 3.4 in 2024 3.0 44% in line with the Group’s 2.5 long term objective 2.2 Annual growth 2019 2020 2021 2022 2023 2024 +10%/y of the dividend paid over the 2020-24 period (1
Slide 18: Continuous debt refinancing
Continuous debt refinancing Refinancing of €400m of hybrid bond in March 2024 in €million 1,100 Issuance of a €500m senior Repayment on 900 January 20th 2025 bond in September 2024 1.5% 700 700 1.5% 4.25% Reimbursement of a 500 500 €700m senior bond in 400 0.75% 400 400 3.5% January 2025 300 3
Slide 19: First quarter 2025 results
First quarter 2025 results Extract from « First quarter 2025 results and outlook » presentation (7 May 2025) Morgan Stanley Chemicals Cannonball Run Field Trip - June 2025 19
Slide 20: Resilient results in a globally challenging and uncertain environment
Resilient results in a globally challenging and uncertain environment in €million Sales EBITDA Adj. Net Income Net Debt and hybrid bonds 2,381 350 3,425 2,341 138 3,241 329 99 Q1'24 Q1'25 Q1'24 Q1'25 Q1'24 Q1'25 31/12/24 31/03/25 Specialty Materials 93% Margin 13.8% Adj. EPS €1.31 2.3x LTM EBITDA Mo
Slide 21: Q1'25 financial highlights
Q1’25 financial highlights → Up 1.7% YoY • Stable volumes (down 0.2%) supported by significant growth in High Performance Polymers and their dynamic of new businesses, notably in batteries, electronics and €2,381m sales sports • Contrasting trends by region with strong growth in Asia but broadly wea
Slide 22: Highly profitable incremental PVDF investment announced in the US
Highly profitable incremental PVDF investment announced in the US Capacity expansion Increasing demand for locally manufactured in Calvert City (US) high performance resins Focus on attractive markets and applications: +15% • Lithium-ion batteries for EV and Energy Storage Systems US capacity • Semi
Slide 23: A step forward in the decarbonization of the adhesives
A step forward in the decarbonization of the adhesives New biomethane supply agreement with ENGIE 4 sites in France 25 GWh/year 85% of the gas consumption of the major Bostik sites in France 8-year contract Following the 300 GWh/year long-term contract signed in early Coubert, Privas, 2023 for the s
Slide 24: Key figures
Key figures in €million Q1’25 Q1’24 Change Sales 2,381 2,341 +1.7% EBITDA 329 350 -6.0% Specialty Materials 331 342 -3.2% Intermediates 24 39 -38.5% Corporate -26 -31 EBITDA margin 13.8% 15.0% Specialty Materials 14.9% 15.7% Intermediates 15.3% 24.7% Recurring operating income (REBIT) 160 202 -20.8%
Slide 25: Slight sales increase supported by scope effect and stable volumes
Slight sales increase supported by scope effect and stable volumes Sales in €million -0.2% -0.5% +0.5% +1.9% Strong growth in Asia Prices up in High Stronger US dollar Integration of Dow’s Performance against the euro at laminating adhesives Significant increase Polymers the start of the business in
Slide 26: Adhesive Solutions (30% of Group sales)
Adhesive Solutions (30% of Group sales) Key figures Highlights in €m Q1’25 Q1’24 Change → 8.1% positive scope effect corresponding to the Sales 715 680 +5.1% integration of Dow’s laminating adhesives EBITDA 99 105 -5.7% → Volumes down 2.5% EBITDA margin 13.8% 15.4% • Weak demand environment in North
Slide 27: Advanced Materials (38% of Group sales)
Advanced Materials (38% of Group sales) Key figures Highlights in €m Q1’25 Q1’24 Change → Volumes up 0.3% Sales 894 878 +1.8% • Positive dynamic in High Performance Polymers EBITDA 174 162 +7.4% notably in Asia in the battery, electronics and sports markets EBITDA margin 19.5% 18.5% • Weak demand in
Slide 28: Coating Solutions (25% of Group sales)
Coating Solutions (25% of Group sales) Key figures Highlights in €m Q1’25 Q1’24 Change → Volumes down 2.5% in a weak demand Sales 607 615 -1.3% environment EBITDA 58 75 -22.7% EBITDA margin 9.6% 12.2% REBIT 26 44 -40.9% → Prices stable at positive 0.2% Sales development → EBITDA significantly down a
Slide 29: Intermediates (7% of Group sales)
Intermediates (7% of Group sales) Key figures Highlights in €m Q1’25 Q1’24 Change Sales 157 158 -0.6% → Volumes up 15.8% • Mainly driven by acrylics in Asia EBITDA 24 39 -38.5% • Partially offset by lower quotas EBITDA margin 15.3% 24.7% in refrigerant gases in Europe REBIT 16 29 -44.8% → Prices dow
Slide 30: Cash flow generation
Cash flow generation in €million Q1’25 Q1’24 EBITDA 329 350 Taxes -33 -39 → Q1’25 tax rate 22.5% of REBIT (excl. exceptional items) Cash items included in the financial result -23 -14 Change in working capital and fixed assets payables (1) -306 -255 → Change in working capital of negative Other -16
Slide 31: Net debt at 2.3x LTM EBITDA
Net debt at 2.3x LTM EBITDA in €million 2.3x LTM EBITDA 138 17 5 24 0 3,425 3,241 31/12/2024 Rec. Rec.cash flow cash Exceptional M&A M&A Dividends & FXFX andand others 31/03/2025 31/12/2024 Exceptional items Dividends & Hybrid… Q1'25 flow items Hybrid bonds others Morgan Stanley Chemicals Cannonball
Slide 32: Outlook
Outlook Global economic environment remaining uncertain and marked by weak demand outside of Asia. Relying on its industrial footprint close to customers in the three major regions of the world, Arkema anticipates a limited direct impact from the recent increase in tariffs. Nevertheless, the Group w
Slide 33: 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
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