Second-quarter 2021 results

• Group sales of €2.4 billion, up 34.6% versus 2020 and up 12.1% versus 2019 at constant scope and currency:
  • Significant growth in volumes (+17.1% vs. Q2’20 and +3.0% vs. Q2’19), driven by high demand in most end markets and the strong dynamic of new developments
  • 17.5% increase in selling prices on average compared to the prior year, reflecting the Group’s ability to offset the very marked rise in raw materials and energy costs
  • Sharp acceleration in the benefits of sustainable innovation, particularly in the fast-growing batteries, bio-based materials, 3D printing, electronics and environmentally friendly paints markets
• EBITDA of €478 million, up 67.1% compared to Q2’20, and a historically high EBITDA margin of 20.0%:
  • Strong growth in the three segments that constitute Specialty Materials, which recorded EBITDA of €417 million, up nearly 80% versus Q2’20 and 37% versus the pre-Covid reference of Q2’19
  • Intermediates’ EBITDA of €87 million, up 31.8% despite a negative scope effect related to the PMMA divestment on 3 May 2021, benefiting from more favorable market conditions than in the prior year, which was marked by the health crisis
• Adjusted net income up almost threefold to €267 million, representing €3.50 per share
• Net debt of €1.28 billion (including €700 million in hybrid bonds), representing 0.9x last-twelve-months EBITDA and including €1.1 billion in gross proceeds from the PMMA divestment, €191 million in dividend payments and a €300 million commitment relating to the share buyback program launched at the end of May
• Continuation of the strategy to refocus on Specialty Materials, with the finalization of the PMMA divestment and the acquisitions of Edge Adhesives and Agiplast
• Full-year guidance significantly raised; for 2021, Arkema is now targeting around 30% growth in Specialty Materials’ EBITDA relative to 2020 at constant scope and currency ⁽²⁾, which would result in Group EBITDA of around €1.4 billion, excluding a systemic resumption of the health crisis

^{(1) Specialty Materials includes the following three segments: Adhesive Solutions, Advanced Materials and Coating Solutions
(2) With the assumption of a €/$ exchange rate of 1.2 for 2021, the impact on 2020 EBITDA is estimated at a negative €30 million for Specialty Materials and a negative €10 million for Intermediate}

The positive dynamic observed in the first half is continuing, benefiting from solid demand in most of the Group’s end markets. Arkema will nevertheless remain vigilant and ready to respond rapidly to the current evolution of the health crisis and the rising raw materials context, and will pursue its price increase initiatives.

Moreover, Arkema will continue to leverage its strong sustainable innovation dynamic and its recent capacity expansions in order to capitalize on accelerating demand for sustainable, high-performance solutions, driven by global megatrends.

In light of its first-half financial performance, and while remaining attentive to the macroeconomic context which remains volatile, the Group has significantly raised its full-year guidance once again. Excluding a systemic resumption of the health crisis, Arkema is now targeting for 2021, around 30% growth in Specialty Materials’ EBITDA relative to 2020 at constant scope and currency (3), versus the 20% previously announced. Group EBITDA should therefore reach around €1.4 billion for the full year.

Finally, Arkema will continue to deploy its strategic roadmap, in line with its ambition to become a pure Specialty Materials player by 2024.

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

^{(3) With the assumption of a €/$ exchange rate of 1.2 for 2021, the impact on 2020 EBITDA is estimated at a negative €30 million for Specialty Materials and a negative €10 million for Intermediate}