Arkema's 2020 Annual Results

(February 26, 2021, Shanghai, China / Colombe, France) Arkema Group's 2020 EBITDA margin remained at 15.

Volume rebound in Q4 2020 and solid performance for the full year

● Group performance rebounded in the fourth quarter

o Sales increased by 2.

o Continued positive momentum in construction, decorative coatings and batteries and a visible recovery in several industrial markets

o Earnings before interest, tax, depreciation and amortization (EBITDA) was largely stable at EUR 289 million (EUR 295 million in Q4 2019), driven by Adhesive Solutions (+15%) and Coating Solutions (+19%) strong growth

Sales in 2020 amounted to EUR 7.

● EBITDA in 2020 reached EUR 1,182 million (down 18.

● 2020 adjusted net income of EUR 391 million or EUR 5.

Free cash flow of EUR 651 million, comparable to 2019 levels, reflecting excellent management of working capital (11.

● Net debt, including hybrid debt, fell significantly to EUR 1,910 million (EUR 2,331 million as at 31 December 2019), equivalent to 1.

With Confidence: Looking to 2021 and Executing the 2024 Roadmap

●Major progress in refocusing on specialty materials strategy in 2020

●Strengthen the ambitious goal of corporate social responsibility, and create a new committee of the board of directors: the Innovation and Sustainability Committee

●Dynamic cash allocation in line with the guidelines for the April 2020 Capital Markets Day

o Proposed dividend returns to pre-COVID-19 levels of EUR 2.

o Upon completion of the divestiture of the PMMA business (4), a share repurchase program totaling EUR 300 million will be initiated

●EBITDA growth in 2021 will be concentrated in specialty materials (82% of group sales in 2020)

On February 24, 2021, Arkema convened its Board of Directors to approve the 2020 Group Consolidated Financial Statements

“Last year, we faced the challenges of the COVID-19 pandemic

In 2020, fundamentally, Arkema has made a major qualitative leap

2021 should be a year of good growth for Arkema, despite the uncertainty surrounding the health and wellness environment

Outlook 2021

At the beginning of the year, extending into the fourth quarter of 2020, global demand levels continued to rise, in a still uncertain environment, especially against the backdrop of the COVID-19 pandemic

In addition, Arkema's EBITDA growth during the year should be concentrated in the specialty materials segment (82% of group sales in 2020)

Arkema is targeting an EBITDA increase of around 10% in 2021 compared to 2020 for Specialty Materials on a constant exchange rate (5) basis

○ Bostik aims to achieve an EBITDA margin of 14% in 2021, in line with its strategic trajectory through 2024, based on its positioning in the construction and high-performance industrial adhesives market, its operational excellence plan, and its acquisition strategy

○ The Advanced Materials business should rebound, driven by innovations in batteries, electronics, lightweight materials, sporting goods and filtration, as well as higher demand in certain industrial markets, animal nutrition and crop protection
.

○ Finally, the growth momentum and sustainable innovations in the coatings, electronics and 3D printing markets should support the benefits of coatings solutions
.

●EBITDA for the Intermediates business in 2021 is expected to be comparable to 2020 levels at constant exchange rates (5) and range
.
The divestment of the PMMA business is expected to be completed by mid-year
.

In addition, in 2021, the Group will continue to implement its medium-term strategy outlined at the Capital Markets Day in April 2020 to achieve its ambitious goal of becoming a pure-play specialty materials producer by 2024
.
To this end, two major industrial projects, a bio-based polyamide plant in Singapore and a hydrofluoric acid plant in the United States, will proceed as scheduled and start production in mid-2022
.
In the field of specialty materials, especially adhesive solutions, Arkema will continue to advance its acquisition strategy and accelerate its strategic evaluation of its fluorine gas business
.
Finally, given the opportunities presented by the government's incentive programs to revolutionize mobility, home comfort and natural resource management, the Group will intensify innovation to contribute to sustainable development
.

Earnings Calendar

Announcement of the first quarter financial report of 2021 on May 6, 2021

Annual General Meeting on May 20, 2021

Announcement of the first half of 2021 financial report on July 29, 2021

Announcement of third quarter 2021 financial results on November 10, 2021

(1) Specialty Materials consists of three business segments: Adhesive Solutions, Advanced Materials and Coating Solutions

(2) Before enterprise cost allocation

(3) Dividends proposed at the general meeting of shareholders on May 20, 2021

(4) The project still needs to be approved by the relevant antitrust authorities and go through an information and consultation process involving Arkema employee representatives
.

(5) Assuming a EUR/USD exchange rate of 1.
2 in 2021, the impact of specialty materials on EBITDA in 2020 is expected to be minus EUR 30 million and intermediate business to minus EUR 10 million

Based on unique materials science expertise, Arkema offers a range of world-leading technologies to meet the growing demand for new sustainable materials
.
By 2024, Arkema aims to become a pure-play specialty materials producer, focusing on three complementary, robust and highly innovative Specialty Materials business units - Adhesive Solutions, Advanced Materials and Coating Solutions - which account for approximately 30% of Group sales 82%, and a well-positioned and competitive Intermediates segment
.
Arkema provides cutting-edge technological solutions to address challenges including new energy, water access, recycling, urbanization and mobility, and fosters long-term dialogue with all stakeholders
.
In 2020, Arkema achieved annual sales of EUR 7.
9 billion, operates in approximately 55 countries and employs 20,500 people
.