2020 annual and sustainable performance report

Free cash flow

(in € million)

Arkema generated free cash flow of €651 million in 2020, nearly matching the excellent performance in 2019 (€667 million).

Net debt including hybrid bonds

(in € million)

Net debt fell to €1.9 billion, including hybrid bonds (€700 million), equivalent to 1.6 times EBITDA for the year.

A dividend returning to pre-Covid levels in 2020

(in € per share)

1. Dividend recommended at the Annual Shareholders’ Meeting on May 20, 2021.

The dividend is a key component of the Group’s policy for shareholder returns. At Capital Markets Day on April 2, 2020, the Group restated its intention to gradually increase the dividend, with a target payout of 40% in 2024. The Board of Directors has decided to propose a dividend of €2.50 per share at the Annual Shareholders’ Meeting on May 20, 2021. In addition, the Group will be implementing a share buyback program totaling €300 million once the divestment of its PMMA business has been finalized. These provisions include returning to shareholders the portion of the dividend (€0.50 per share) that was suspended in 2020 as a result of the pandemic.

CONSISTENT IMPROVEMENT IN NON-FINANCIAL INDICATORS

Through the use of precise indicators and targets, Arkema has set itself a course of continuous improvement in CSR, embodied in three commitments:

• offer innovation-driven, sustainable solutions;
• manage industrial activities responsibly;
• and cultivate an open dialogue with internal and external stakeholders.

Its ambition is to provide its customers with sustainable, innovative solutions that help to fulfill the Sustainable Development Goals (SDGs) defined by the United Nations.

1 - SUSTAINABLE PRODUCTS

Share of revenue that has made a significant contribution to the U.N.’s Sustainable Development Goals¹

In 2020, 50% of Arkema’s sales were connected with ImpACT+ solutions, and the Group has set a strategic goal of raising that figure to 65% by 2030, as further proof of its commitment to offering sustainable products.

1. The share of sales making a significant contribution to the SDGs (ImpACT+) is based on an evaluation of 72% of the Group’s sales to third parties in 2020 and 44% in 2018 and 2019.

Share of revenue generated from renewable feedstock