Arkema prepares for the future, aiming to become a leader in specialty materials

at the strategic update meeting held on april,,2,
, Akoma presented its ambitious goal of being a world leader in specialty materials, restructuring the three potential growth-oriented businesses, Adhesive Solutions, Advanced Materials and Coatings SolutionsAt the meeting, the Group presented its development blueprint and2024 targetsIn the context of the current outbreak of new coronary pneumonia (
Covid-19), Arkema also provides the latest information on the management and impact of this unprecedented health crisisDespite crisis management related to the new coronal pneumonia outbreak, everyone was mobilized-do everything in its power to support customers and other stakeholders while prioritizing the health and safety of employees, Arkema decided to hold a strategic update meeting on
April,,, to share its vision and announce ambitious medium-term goals since of 2006, the Group has continued its in-depth transformation, advancing and developing into the leading position of specialty materials through targeted investments, innovative policies focusing on key sustainability trends, and active portfolio management These activities now account for nearly 80 % of its sales at present, Akoma is entering a new stage of transformation Based on three associated and complementary business units focusing on specialty materials, namely adhesive solutions, advanced materials and coating solutions, Acoma enjoys a unique position around the growing demand for sustainable and high-performance materials in today's world These businesses combine true in-house innovation expertise, strong business and industrial synergies, and a common approach to serving customers in sustainable and growing markets therefore, the Group has decided to align its organizational structure and reporting mechanisms in line with this vision, including: the three departments of the will report separately, covering all of Acoma's special tying materials: "
adhesive solutions
, "s advanced materials "
and "
coating softos solutions ", ; In particular, the Group will assess the strategic options for MMA/PMMA , explore possible alternatives to fluorine gases, thereby minimizing their high emission applications and rebalancing the upstream and downstream operations of acrylic in Asia to 2024 , Arkema aims to become a pure specialty materials manufacturer with a strong and focused business portfolio characterized by high profitability and strong cash creation As a result, Acoma aims to achieve sales of 10 to 1.1 billion euros, with a ebitda of about 17
per cent (now 15.8 %) To implement this latest phase of development, the Group plans to focus on a number of innovative projects and investments in major projects, such as the expansion of specialty polyamides in Asia, which will help to meet the needs of material lightweighting, 3D printing, new energy and energy efficiency of buildings Arkema also plans to continue to play an active role in the integration of the adhesive market In a world that is undergoing dramatic changes, innovation, corporate social responsibility and business excellence will be at the heart of the Group's strategy than ever before Acoma will maintain strict financial criteria
and will have a ratio of net debt (including hybrid bonds) to earnings before interest, tax, depreciation and amortisation (
EBITDA ) of less than 202
4 by , and a return on capital (
ROCE ) will exceed 10
Over the next five years, the Group's cash creation capacity is expected to grow further compared to the previous five-year period, 2015-2019 By maintaining the ratio of net debt (including hybrid bonds) to EBITDA at the end of 2019, this will allow Acoma to finance key organic growth projects and portfolio management businesses while increasing shareholder returns
to achieve the 40 per cent of dividend payout stake by 2024 to 2024 It will also allow Arkema to make opportunistic share buybacks under favourable market conditions the 2024 target, as outlined in this press release, is our best estimate for the year Achieving these goals will depend on the duration of the crisis and its long-term economic impact all of these elements are detailed in the presentation and presentation and presentation sprung the Strategy Update , which will be visible on the corporate website:
in the short term, in the context of an unprecedented outbreak of new coronapneumonia, the Group is implementing crisis management measures that prioritize the health of its employees, adjust its supply chain and production facilities to optimize the management of potential production disruptions and ensure continuity of supply to its customers in key markets The Group will continue to monitor its cash creation and is taking proactive steps to reduce the initial forecast of investment and fixed expenditure levels for 2020 In the first quarter, the impact of the outbreak on the Group's EBITDA is expected to between 40 million and 5
0 million euros Based on a very strong financial structure and level of liquidity, the Group is confident in its ability to weather difficult times in the global economy and to take a strong position