Slides
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First quarter 2025 results and outlook 07/05/2025
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Q1'24 Q1'25 Resilient results in a globally challenging and uncertain environment Specialty Materials 93% Sales 31/12/24 31/03/25 2,341 3,241 3,425 in €million Adj. Net Income Net Debt and hybrid bonds Adj. EPS €1.31 2.3x LTM EBITDA 138 Margin 13.8% EBITDA 2,381 99 2 350 329 07/05/2025First quarter 2025 results and outlook Q1'24 Q1'25 Q1'24 Q1'25
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Q1’25 financial highlights €329m EBITDA 13.8% EBITDA margin €99m adj. net income €3,425m net debt and hybrid bonds €2,381m sales → Net debt and hybrid bonds representing 2.3x LTM EBITDA → Recurring cash flow at a negative €138m → EBITDA slightly down compared with Q1’24 • Good resilience of Specialty Materials (93% of the Group’s sales) with a 3% EBITDA decrease • Significant decline of nearly 40% in the EBITDA of Intermediates (7% of the Group’s sales), impacted by refrigerant gases → 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 sports • Contrasting trends by region with strong growth in Asia but broadly weak demand in Europe and North America • Price effect limited to a negative 0.5% in a broadly stable raw materials environment • First benefit of the integration of Dow's laminating adhesives → Representing €1.31 per share 307/05/2025First quarter 2025 results and outlook
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Highly profitable incremental PVDF investment announced in the US 4 Capacity expansion in Calvert City (US) 07/05/2025First quarter 2025 results and outlook $20m invested Increasing demand for locally manufactured high performance resins +15% US capacity Mid-2026 planned start-up Arkema PVDF production in all three regions Global footprint expansion at a pace and with capabilities matching market development Focus on attractive markets and applications: • Lithium-ion batteries for EV and Energy Storage Systems • Semiconductor manufacturing process • Cables
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A step forward in the decarbonization of the adhesives 507/05/2025First quarter 2025 results and outlook Coubert, Privas, Ribécourt and Venette 4 sites in France 25 GWh/year New biomethane supply agreement with ENGIE 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 2023 for the supply of biomethane for the Advanced Materials segment
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Key figures Q1’25 Q1’24 Change 2,381 2,341 +1.7% 329 331 24 -26 350 342 39 -31 -6.0% -3.2% -38.5% 13.8% 14.9% 15.3% 15.0% 15.7% 24.7% 160 202 -20.8% 6.7% 8.6% 99 138 -28.3% 3,425 3,063 Sales EBITDA Specialty Materials Intermediates Corporate EBITDA margin Specialty Materials Intermediates Recurring operating income (REBIT) REBIT margin Adjusted net income Net debt and hybrid bonds in €million 607/05/2025First quarter 2025 results and outlook
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Q1'24 Volumes Prices Currency Scope Q1'25 Slight sales increase supported by scope effect and stable volumes +0.5%-0.2% -0.5% +1.9% Strong growth in Asia Significant increase in High Performance Polymers notably in battery, electronics, and sports markets Weak demand in Europe and North America Integration of Dow’s laminating adhesives business Prices up in High Performance Polymers Sales in €million Stronger US dollar against the euro at the start of the year 707/05/2025First quarter 2025 results and outlook 2,3812,341 Lower prices for refrigerant gases in the United States Globally stable raw materials environment
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Adhesive Solutions (30% of Group sales) Sales by Business Line Construction & Consumer Industrial Assembly Key figures Highlights → 8.1% positive scope effect corresponding to the integration of Dow’s laminating adhesives → Volumes down 2.5% • Weak demand environment in North America and Europe • Lower industrial adhesives • Construction remaining stable → Prices at negative 0.3%, reflecting stable raw materials prices → EBITDA slightly down 5.7% and EBITDA margin at 13.8% • Impacted by lower volumes • Supported by strict control of operations and continued dynamic management of selling prices • Expected dilutive effect of Dow’s laminating adhesives consolidation on the margin rate (nearly 50 bps) 8 in €m Q1’25 Q1’24 Change Sales 715 680 +5.1% EBITDA 99 105 -5.7% EBITDA margin 13.8% 15.4% REBIT 73 82 -11.0% Sales development -2.5%Volumes Prices Currency Scope -0.3% -0.2% +8.1% 07/05/2025First quarter 2025 results and outlook 407 308
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Advanced Materials (38% of Group sales) High Performance Polymers Performance Additives 419 475 Key figures Sales by Business Line Highlights → Volumes up 0.3% • Positive dynamic in High Performance Polymers notably in Asia in the battery, electronics and sports markets • Weak demand in Performance Additives → Prices up 0.9% • Driven by High Performance Polymers → Strong EBITDA increase by 7.4% • Significant progression of PIAM in electronics • Positive momentum in high value-added fluorospecialties for energy efficiency of buildings • Growth in the battery and sports markets • Performance Additives slightly down in a weak demand environment → EBITDA margin significantly up 100 bps at 19.5% 9 in €m Q1’25 Q1’24 Change Sales 894 878 +1.8% EBITDA 174 162 +7.4% EBITDA margin 19.5% 18.5% REBIT 77 80 -3.8% Sales development +0.3%Volumes Prices Currency Scope +0.9% 07/05/2025First quarter 2025 results and outlook +0.6% -
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Coating Solutions (25% of Group sales) 441 166 Coating Resins Coating Additives Key figures Sales by Business Line Highlights → Volumes down 2.5% in a weak demand environment → Prices stable at positive 0.2% → EBITDA significantly down and EBITDA margin at 9.6% • Decrease in volumes • Low cycle margins in upstream acrylics 10 Sales development -2.5%Volumes Prices Currency Scope +0.2% +1.0% - in €m Q1’25 Q1’24 Change Sales 607 615 -1.3% EBITDA 58 75 -22.7% EBITDA margin 9.6% 12.2% REBIT 26 44 -40.9% 07/05/2025First quarter 2025 results and outlook
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Intermediates (7% of Group sales) Key figures Highlights → Volumes up 15.8% • Mainly driven by acrylics in Asia • Partially offset by lower quotas in refrigerant gases in Europe → Prices down 11.4% • Reflecting mainly lower refrigerant gas prices in the United States → EBITDA down 38.5% and EBITDA margin at 15.3% • Impacted by refrigerant gases, expected to remain significantly down in Q2 but to improve from mid-year • Progression in Asia acrylics 11 in €m Q1’25 Q1’24 Change Sales 157 158 -0.6% EBITDA 24 39 -38.5% EBITDA margin 15.3% 24.7% REBIT 16 29 -44.8% Sales development +15.8%Volumes Prices Currency Scope -11.4% +2.6% 07/05/2025First quarter 2025 results and outlook -7.6%
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Cash flow generation 12 → Q1’25 tax rate 22.5% of REBIT (excl. exceptional items) → Change in working capital of negative €210m reflecting Q1 seasonality 17.4% of annualized sales at end-March 2025 (16.1% at end-March 2024) → Fixed assets payables significantly down by €96m vs end-December 2024 → Lower Capex in line with guidance at €89m (vs €99m in Q1’24) 1. Excluding non-recurring items and impact of portfolio management in €million 07/05/2025First quarter 2025 results and outlook Q1’25 Q1’24 329 350 -33 -39 -23 -14 -306 -255 -16 -3 -49 39 -89 -99 -138 -60 0 0 -17 -22 -155 -82 -5 -21 -160 -103 EBITDA Taxes Cash items included in the financial result Change in working capital and fixed assets payables (1) Other Operating cash flow Recurring capital expenditure Recurring cash flow Exceptional capital expenditure Non-recurring cash flow Free cash flow Net cash flow from portfolio management operations Net cash flow
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31/12/2024 Rec. cash flow Exceptional items M&A Dividends & Hybrid … FX and others Q1'25 Net debt at 2.3x LTM EBITDA 31/12/2024 31/03/2025Rec. cash flow M&A FX and others 17138 2.3x LTM EBITDA 3,241 Dividends & Hybrid bonds 0 Exceptional items 5 24 3,425 in €million 1307/05/2025First quarter 2025 results and outlook
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Outlook 07/05/2025First quarter 2025 results and outlook 14 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 will remain vigilant about their effect on the macroeconomic environment and the global demand, which is difficult to assess reliably at this stage. In this context, the Group aims to achieve in 2025 an EBITDA at least equal to last year’s at constant exchange rates and a significantly increasing recurring cash flow of close to €600 million, unless a major slowdown in global growth occurs due to geopolitical disruptions. The second quarter is expected to be in relative continuity with the trends observed since the beginning of the year, with two specific points of attention on customer wait-and-see attitude linked to the announcements on tariffs and the evolution of exchange rates. Global economic environment remaining uncertain and marked by weak demand outside of Asia.
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15 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, the retained assumptions and forward-looking statements could ultimately prove inaccurate. Such statements are based on management’s current views and assumptions that could ultimately prove inaccurate and are subject to material risk factors such as among others, changes in raw material prices, currency fluctuations, implementation pace of cost-reduction projects, rising geopolitical tensions, and changes in general economic and business conditions. These risk factors are further developed in the 2024 Universal Registration Document. Arkema does not assume any liability to update such forward-looking statements whether as a result of any new information or any unexpected event or otherwise. Further information on factors which could affect Arkema’s financial results is provided in the documents filed with the French Autorité des marchés financiers. Financial information since 2005 is extracted from the consolidated financial statements of Arkema. Quarterly financial information is not audited. The business segment information is presented in accordance with Arkema’s internal reporting system used by the management. Definitions and reconciliation tables for the main alternative performance indicators used by the Group are provided in the “Arkema first-quarter 2025 results press release” available on Arkema’s website at: www.arkema.com/global/en/investor-relations/ 07/05/2025First quarter 2025 results and outlook
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