2021 Annual and Sustainable Performance Report

In 2022, the geopolitical context of the war in Ukraine is affecting our economies. What might the consequences be for Arkema?

Firstly, like many, I am deeply concerned by this tragedy and the fate of the Ukrainian people suffering the consequences of the war and in many cases being forced into exile. Arkema decided to make a donation to UNICEF, which works on the ground to help children and their families.

We do not have an industrial base in Ukraine, Russia or Belarus and this area accounts for less than 1% of our sales, with 65 employees based in Russia. Of course, we will be keeping a very close eye on how the situation develops. In terms of our activity as a whole,
during the first months of the year, global demand remained relatively strong, but with some slight variations according to market and region. Our growth this year will be further driven by our innovation with regard to major societal trends. One of our priorities at the start of this year is our ability to pass on the sharp increases in raw materials and energy and to cope with disruptions in supply chains. This year promises to be similar to last year in terms of the troubled operational environment, but we remain confident and are ready to adapt. We believe that 2022 will be another very good year, as presented in our guidance, which forecasts an EBITDA comparable to last year on a consistent, and replace basis in Specialty Materials.

How did Arkema’s profile evolve in 2021?

The product portfolio continued to evolve toward Specialty Materials, both through organic developments and our M&A activity. Following the completion of the sale of our PMMA business (Altuglas International) and the acquisition of Ashland’s performance adhesives, nearly 90% of Arkema's sales are now generated in specialties. We have come a long way since our initial public offering in 2006, when the Group generated €5 billion in revenue, mainly through Intermediates. We are thus on track to achieve our ambition of becoming a 100% Specialty Materials player by 2024, with revenue in excess of €10 billion.

Will you continue to make new acquisitions in 2022 and beyond?

Today, we have a solid balance sheet with a net debt ratio of approximately
1.7 times EBITDA, after the acquisition of Ashland’s adhesives. As a result, we have the financial capacity to continue to make small and medium-sized acquisitions across our three segments. Our acquisition strategy is to target high-quality assets that enable us
to accelerate our development in high-growth technologies, with a strong focus on sustainability. We plan to make three or four small acquisitions this year.