2018 annual and sustainable performance report

A rising global population, the need to protect the environment, climate change, the growing scarcity of resources and the digital transition all present both challenges and opportunities for an industrial company like ours. The solutions we are developing for our customers in lighter materials, new energies and bio-based products make us a key player in meeting those challenges. Our ability to innovate enables us to respond to the sometimes extreme challenges our customers and partners face in the cutting-edge sectors of aerospace, electronics, oil and gas production, automotive manufacturing and sports. It also helps us move them toward more sustainable growth every day.

How does Arkema’s social commitment contribute to its success?

Thierry Le Hénaff : – We’re interested in a bigger picture than our financial performance. To prosper over time, companies must not only post solid financial results, they must also contribute in some way to the society we live in. Our program is increasingly grounded in a commitment to the community. In terms of being a responsible producer, we want to rank with the best for safety and environmental footprint. But we’ve also made strong social commitments. For example, we have ambitious gender equality goals. We aim to have 23 to 25% women senior managers by 2025, up from 18%  in 2016. More and more women are entering our fields, a trend that is picking up speed, and that’s a good thing. It’s why we wanted to be a national sponsor this year of the FIFA Women’s World Cup 2019™, which is being held in France. As a good corporate citizen, we’re also stepping up our initiatives to promote education and youth inclusion through sports and music. We’re building strong ties with various nonprofits in low-income neighborhoods. Supporting communities and acting locally are important values to me. They also motivate many Arkema employees.

What approach are you taking to the future?

Thierry Le Hénaff : – 2018’s excellent results prove that the strategy we’ve pursued since Arkema was created is the right one. We’re on target to meet our goals. But also and most important, we are honing a vision focused on the long term. What we want to do in 2019, given 2018’s very strong results, is demonstrate Arkema’s resilience in a more complex environment, while continuing to strengthen our specialty chemicals so that they generate 80% of our revenue in 2023. We’ll continue to invest to keep up with our customers’ needs, especially in Asia and North America. Several major start-ups are planned in 2019. Among them are a plant to produce Kepstan ® PEKK, an extreme performance thermoplastic, in the United States, a resin plant for Sartomer in China and an acrylics unit in the United States. We’re making active progress on our big projects to grow thiochemicals in Malaysia and specialty polyamides in Asia in general.

We’re also continuing our policy of targeted acquisitions, notably in adhesives. This is shown by our three acquisitions in 2018 in growing niche markets that offer synergies with bostik – in the United States, Japan and in quick-drying adhesives in Europe. All these projects will help bolster the already majority share of our specialty chemicals activities, cementing our position as a leading producer of specialty chemicals and advanced materials. We’ve launched demanding cross-functional programs worldwide to push marketing excellence and digital transformation.
They will be stepped up and will help us achieve our goals.

I know that I can also count on the engagement of our 20,000 employees worldwide, our entrepreneurial culture and our values of performance, solidarity, simplicity and responsibility to meet these challenges. All Arkema directors and Executive Committee members are with me in believing that our many assets and quality projects position us well for the next few years and will sustain our ability to create value for years to come. Arkema is an incredible personal, industrial and technological adventure for our employees, stakeholders, customers and regions. For me, our future depends on further quickening Arkema’s momentum, a challenge as ambitious as it is exciting.

TO SUCCEED, I KNOW THAT I CAN ALSO COUNT ON THE ENGAGEMENT OF OUR 20,000 EMPLOYEES WORLDWIDE.