Accelerate toward specialty chemicals
Arkema is holding world leading positions on 90% of its business portfolio. Arkema's strategy is based on innovation, an increased presence in the emerging markets and targeted acquisitions.
These three strategic priorities are based on four fundamental pillars in the Group's management:
- Business excellence;
- Operational excellence in industrial processes;
- CSR policy for responsible growth;
- Digital transformation of the Group.
The Group's transformation since its IPO in 2006 has enabled to reposition its activities towards specialty chemicals – which now accounts for 72% of its portfolio – and to balance its geographical presence.
This transformation has included an ambitious acquisition program : acquisitions by Arkema have totaled about €4 billion and divestments €2.2 billion.
Arkema is aiming to become one of the global leaders in chemical specialties and advanced materials.
The Group has fixed three deadlines for achieving specific objectives:
- In 2017, achieve between €1,310 million and €1,350 million EBITDA;
- In 2020, achieve revenues of €10 billion and an EBITDA margin close to 17%, with a balanced three-way distribution by region (Europe, North America and Asia);
- In 2023, achieve a REBIT margin (margin after depreciations and amortizations) between 11,5 and 12,5% and a free cash conversion EBITDA of 35%.
To achieve these financial targets for 2023, Arkema will rely on three new investments in Asia announced in 2017, its innovation efforts to serve major societal challenges and a targeted acquisitions strategy.
Over the coming years, the Group will pursue its development and acquisitions focusing on specialties, which should represent more than 80% of the Group’s sales by 2023.
Arkema aims in particular to invest significantly in adhesives market and advanced materials segment (Technical Polymers and Performance Additives) that offers broad development and innovation opportunities in material lightweighting, bio-based polymers and design of consumer goods. Its ambition is to achieve 1/4 of its turnover in Advanced Materials and 1/3 in Advanced Materials.
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71% of these activities correspond to specialty chemicals in 2017.
The aim is to have more than 80% of specialty chemicals in 2023.