Arkema (AKE) BNPP Exane CEO Conference Presentation summary

Business overview and market positioning

• Generated €9.5bn in 2023 sales, with 92% from specialty materials across 151 production sites in 55 countries.

• Key markets include building & construction, general industry, consumer goods & electronics, water, health & nutrition, and transportation & energy.

• North America, Europe, and Asia represent the largest sales regions, with 37%, 34%, and 24% of sales, respectively.

• Focused on three specialty materials segments: Adhesive Solutions, Coating Solutions, and Advanced Materials.

Financial performance and capital management

• 2023 sales reached €9.5bn with an EBITDA of €1,457m and a margin of 15.8%.

• Recurring cash flow in 2023 was €761m, with a 50.7% EBITDA to cash conversion rate, exceeding the 40% target.

• Debt successfully refinanced in 2023 and early 2024, maintaining a solid investment grade rating (Baa1/BBB+).

• Dividend has grown at a 12% average annual rate from 2019 to 2023, with a 40% payout ratio for 2023.

Strategic vision and growth ambitions

• Aims to be a specialty materials leader, offering innovative and sustainable solutions.

• Targets €12bn sales and ~18% EBITDA margin by 2028, with organic sales CAGR of 4% and EBITDA CAGR of 7-8% (2024-28).

• Each segment has set aligned growth and margin targets, with Advanced Materials aiming for 6% annual sales growth.

• EBITDA growth driven by major capex in growth markets and ongoing organic growth, targeting €10bn cumulative EBITDA (2024-28).

• Capital allocation prioritizes maintenance, growth capex, M&A, and shareholder returns, with ~€7bn operating cash flow expected (2024-28).