Arkema Sa · EURONEXT:AKE
Arkema Sa — Q2 2024 Earnings Presentation
19 slides from Arkema Sa's earnings presentation, Aug 1, 2024
Slide 1: Second quarter 2024 results and outlook
Second quarter 2024 results and outlook 01/08/2024
Slide 2: Solid financial performance in a challenging environment
Solid financial performance in a challenging environment Sales EBITDA Margin €2,536m 17.8% Volumes +4.7% YoY +70 bps vs Q2’23 Q2’24 key figures EBITDA Recurring cash flow €451m €132m +8.2% vs Q2’23 vs €145m in Q2’23 Second quarter 2024 results and outlook 01/08/2024 2
Slide 3: Q2'24 financial highlights
Q2’24 financial highlights → Up 3.8% YoY • +4.7% volume growth €2,536m sales • Improved momentum in certain markets such as sports, batteries and energy, and in industrial adhesives • Negative 2.4% price effect in line with raw material price evolution → EBITDA up 8.2% YoY • Good growth in most of t
Slide 4: Making progress in our strategic priorities
Making progress in our strategic priorities Acquisition of Ramp-up of Dow flexible packaging organic projects laminating adhesives H1’24 highlights Delivering our roadmap Significant achievements in EV batteries toward more sustainable operations Second quarter 2024 results and outlook 01/08/2024 4
Slide 5: Acquisition of Dow's flexible packaging laminating adhesives
Acquisition1 of Dow’s flexible packaging laminating adhesives: a high-quality business strengthening our existing position One of the global leaders for adhesives in flexible packaging Key figures Annual sales US$150m US$50m around US$ 250m Enterprise value Implementation (~10x EBITDA 2024F) costs a
Slide 6: Organic projects in cutting-edge technologies to drive future growth
Organic projects in cutting-edge technologies to drive future growth UV curing PVDF Pebax® Bio-based PA11 Fluorospecialties resins Expansions Doubling capacity Expansion New units HF with Nutrien (US) (China, France) (China) (France) (Singapore, China) HFO 1233zd (US) Batteries, semicon New energies
Slide 7: Delivering our roadmap in EV batteries
Delivering our roadmap in EV batteries Stake acquisition in Tiamat Leveraging the One Arkema offer January 2024 New IncellionTM range Pioneer in new generation of waterborne acrylic based Cell sodium-ion batteries binders for the anode Synergistic combination with PVDF binders for the cathode Partne
Slide 8: Significant achievements toward more sustainable operations
Significant achievements toward more sustainable operations Commitment with Decarbonizing the global Act4nature coating value chain May 2024 4 new Coating Solutions sites certified Mass Balance ISCC+ in H1 2024 New engagements to map and reduce our impacts on biodiversity In addition to Carling (cer
Slide 9: Detailed Q2 Results
Detailed Q2 Results 01/08/2024
Slide 10: Key figures
Key figures in €million Q2’24 Q2’23 Change H1’24 H1’23 Change Sales 2,536 2,442 +3.8% 4,877 4,966 -1.8% EBITDA 451 417 +8.2% 801 784 +2.2% Specialty Materials 390 368 +6.0% 732 715 +2.4% Intermediates 84 69 +21.7% 123 118 +4.2% Corporate -23 -20 -54 -49 EBITDA margin 17.8% 17.1% 16.4% 15.8% Specialt
Slide 11: Sales growth in a still subdued demand environment
Sales growth in a still subdued demand environment Sales in €million +4.7% -2.4% -0.8% +2.3% Improved momentum Reflecting lower Depreciation of Mostly integration in certain markets price of certain Argentinian peso of PIAM such as batteries, raw materials and Chinese yuan sports, energy, against eu
Slide 12: Adhesive Solutions (28% of Group sales in Q2'24)
Adhesive Solutions (28% of Group sales in Q2’24) Key figures Highlights Q2’24 in €m Q2’24 Q2’23 Change H1’24 H1’23 Change Sales 706 692 +2.0% 1,386 1,390 -0.3% → Volumes up 5.1% YoY • Supported by industrial adhesives, in particular EBITDA 109 95 +14.7% 214 188 +13.8% in durable goods, packaging and
Slide 13: Advanced Materials (36% of Group sales in Q2'24)
Advanced Materials (36% of Group sales in Q2’24) Key figures Highlights Q2’24 in €m Q2’24 Q2’23 Change H1’24 H1’23 Change → Volumes down 1.0% YoY Sales 918 912 +0.7% 1,796 1,849 -2.9% • Impacted by planned maintenance turnarounds in EBITDA 190 185 +2.7% 352 345 +2.0% Thiochemicals • Supported by pos
Slide 14: Coating Solutions (26% of Group sales in Q2'24)
Coating Solutions (26% of Group sales in Q2’24) Key figures Highlights Q2’24 in €m Q2’24 Q2’23 Change H1’24 H1’23 Change → Volumes up by a very strong 10.4% YoY Sales 648 617 +5.0% 1,263 1,278 -1.2% • Driven by downstream activities, particularly in EBITDA 91 88 +3.4% 166 182 -8.8% industrial coatin
Slide 15: Intermediates (10% of Group sales in Q2'24)
Intermediates (10% of Group sales in Q2’24) Key figures Highlights Q2’24 in €m Q2’24 Q2’23 Change H1’24 H1’23 Change Sales 254 212 +19.8% 412 430 -4.2% → Volumes up 9.9% YoY EBITDA 84 69 +21.7% 123 118 +4.2% • Higher demand for acrylics in China EBITDA margin 33.1% 32.5% 29.9% 27.4% REBIT 74 57 +29.
Slide 16: Cash flow generation reflecting usual seasonality
Cash flow generation reflecting usual seasonality in €million Q2’24 Q2’23 H1’24 H1’23 EBITDA 451 417 801 784 → Q2’24 tax rate 22% of REBIT (excl. exceptional Current taxes -54 -57 -93 -112 items) Cost of debt -12 -12 -26 -28 Change in working capital and fixed assets payables (1) -76 -42 -331 -285 O
Slide 17: Net debt integrating dividend payment in May
Net debt integrating dividend payment in May in €million ~2.2x LTM EBITDA 266 68 -72 37 41 Dividend : €261m Hybrid bonds: €5m 2,930 3,270 31/12/2023 Rec. cash Exceptional M&A Dividends & FX and 30/06/2024 flow items Hybrid bonds others Second quarter 2024 results and outlook 01/08/2024 17
Slide 18: Outlook
Outlook → At the start of the third quarter the macroeconomic context remains in line with that of previous quarters, with no tangible signs of a rebound in demand. → In this environment, Arkema will continue to focus on elements under its control, in particular the strict management of operations a
Slide 19: 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