Full-year 2021 results

• Group sales of €9.5 billion, up by 25.9% compared with 2020 at constant scope and currency:
  • Growth in volumes of +7.3%, driven notably by robust demand for sustainable solutions with high technological content, particularly in batteries, 3D printing, consumer goods and more environmentally friendly paints
  • Increase in selling prices of 18.6% over the year, reflecting the Group’s initiatives to offset strong raw materials and energy inflation, an improved product mix, as well as a the tightness of upstream acrylics
• EBITDA at historic high of €1,727 million, up by 46.1% compared with 2020, and EBITDA margin of 18.1%, in an environment marked by operational disruptions and high raw materials and energy costs:
  • Excellent performance of Specialty Materials, up strongly in each of the segments, with EBITDA of €1,503 million (€1,018 million in 2020) and EBITDA margin of 18.5%
  • Increase in EBITDA of the Intermediates segment (€316 million vs. €231 million in 2020), driven by favorable conditions in the acrylics market in Asia and despite the negative scope effect related to the PMMA and Functional Polyolefins divestments
• Adjusted net income multiplied by 2.3 to €896 million, representing €11.88 per share (€5.11 in 2020)
• Recurring cash flow stable at €756 million (€762 million in 2020) and net debt down sharply to €1,177 million, including €700 million in hybrid bonds (net debt of €1,910 million at end-2020), representing 0.7x 2021 EBITDA
• Proposed dividend of €3.0 per share (€2.5 in 2020)

• Major steps taken to refocus on Specialty Materials, which represent close to 90% of 2021 pro forma sales ⁽¹⁾, with the finalization of the PMMA divestment and the proposed acquisition of Ashland’s performance adhesives business
• Numerous customer partnerships and targeted capacity increase projects to support the Group’s sustainable growth strategy, particularly in bio-based products, materials lightweighting, clean mobility, new energies, electronics and more environmentally friendly coatings

^{(1) Including the full year contribution of all M&A operations announced in 2021}

• Continued implementation of the Group’s strategy, in particular with the closing of the Ashland performance adhesives acquisition, the start-up at mid-year of the PA11 plant in Singapore and the hydrofluoric acid plant in the United States, as well as the strengthening of innovation and targeted investments to support our organic growth
• In 2022, in a global environment that should remain volatile, the Group aims, at constant scope ⁽²⁾, to achieve a Specialty Materials’ EBITDA comparable to the record high of 2021
• 2024 targets fully supported by the level of performance achieved in 2021 and the significant progress made in executing the strategic roadmap

^{(2) Excluding the acquisition of Ashland’s adhesives expected to close in first quarter 2022}

In 2022, Arkema should benefit from a positive level of global demand, with nuances in different regions and markets and from its leading positioning on innovative, high performance Specialty Materials. In particular, the Group will leverage its innovation dynamic in fields such as clean mobility, materials lightweighting, natural resources management and living comfort & home efficiency, as well as the start-up of production units in high-growth regions.

At the start of the year, the environment remains volatile, marked by uncertainty related to the health crisis, growing geopolitical tensions and continued strong constraints in raw materials and energy in the continuity of second-half 2021. In this demanding context, while remaining attentive to demand trends, the Group will continue to pass on higher costs in its selling prices and will ensure to optimize supply chain management.

In first-quarter 2022, Group EBITDA is expected to increase strongly, driven by the growth in Advanced Materials and Coating Solutions. The Adhesive Solutions segment will still remain temporarily impacted by raw materials shortages, and its EBITDA is expected to come in, at constant scope, somewhere between the first-quarter 2020 and the record first-quarter 2021 levels. Intermediates should achieve a solid start to the year.

For full-year 2022, Arkema is aiming to achieve at constant scope Specialty Materials EBITDA comparable to the record high of 2021. Moreover, the scope effect at Group level will include the contribution of Ashland’s performance adhesives, expected to close in the first quarter, and the residual effect of the divestment of PMMA.

In line with its strategy to become a pure Specialty Materials player by 2024, the Group will continue its bolt-on acquisition policy in 2022, as well as its review of the Intermediates segment. Lastly, in addition to the start-up, expected in the middle of the year, of the two major industrial projects, namely the bio-based polyamides plant in Singapore and the hydrofluoric acid plant in the United States, Arkema will continue to strengthen its innovation and capacities to support, in a targeted manner, customer demand in fast-growing markets.

On the strength of its 2021 performance and the significant progress made in executing its strategic roadmap, the Group is fully reaffirming its confidence in its ability to achieve its ambitious 2024 targets.

Further details concerning the Group’s 2021 results are provided in the “Full year 2021 results and outlook” presentation and the Factsheet, both available on Arkema’s website at: www.finance.arkema.com.

The consolidated financial statements at 31 December 2021 have been audited, and an unqualified certification report has been issued by the Company’s statutory auditors. These financial statements and the statutory auditors’ report will be available in late March in the Company’s Universal Registration Document, which will be posted on Arkema’s website at: www.finance.arkema.com.