Arkema Accelerates the Development of Its High Performance Materials Segment and Confirms Its Objectives

Regulatory News:

Arkema (Paris:AKE):

At its Capital Markets Day organized today, Arkema presents its strategy and its ambition for the coming years and confirms its mid- and long-term objectives. On this occasion, the Group also details the success of its in-depth transformation achieved since its stock market listing and the projects and strategic orientations that will drive its future growth.

In the last 9 years, Arkema has resolutely engaged on a path towards advanced materials. Its geographic positioning and its business portfolio have changed in depth as part of a focused growth strategy driven by customer intimacy, innovation, acquisitions, and a higher level of industrial investments in the activities offering the best growth prospects. The acquisition of Bostik, the start-up of the thiochemicals plant in Malaysia, and the announcement today of a 60 million euros investment on the Honfleur site in France to double molecular sieves production capacity, all illustrate this strategy.

On the strength of the various projects underway within the Group, Arkema confirms its mid- and long-term targets to achieve €1.3 bn EBITDA by 2017 and €10 bn sales with an EBIDTA margin close to 17% by 2020, both defined in normalized conditions.

To achieve these ambitious objectives, Arkema has set out a number of strong priorities, including:

• Accelerating the development of its High Performance Materials through innovation in composite materials, new energies and water treatment, and through bolt-on acquisitions. This segment will account for 50% of the Group's sales by 2020,
• Significantly developing Bostik acquired beginning of the year, with a strong ambition to double EBITDA generated in adhesives by 2020,
• Capitalizing on several other growth drivers: new thiochemicals site in Malaysia, introduction of new generation fluorogases, reinforcement of acrylics downstream, and additives for the oil and gas market,
• Continuing efforts in operational excellence with a target increased by 50 million euros compared to the previous plan,
• Carrying through the announced divestment program of non-core assets, the announced project of the divestment of Sunclear representing 25% of it.

Thierry Le Hénaff, Chairman and Chief Executive Officer, stated: "Arkema has many assets to enter this next phase of its development with confidence. A large number of promising projects have been finalized or announced in recent months, all representing growth platforms over the coming years. Arkema’s vision is built for the long term, and our teams are fully committed to turning the Group into one of the top players in specialty chemicals. A designer of materials and innovative solutions, particularly mindful of the demands of its customers and major partners as well as the societal issues that guide its innovation, Arkema is confident in its capacity to create value for its shareholders and all its other stakeholders."

A global chemical company and France’s leading chemicals producer, Arkema is building the future of the chemical industry every day. Deploying a responsible, innovation-based approach, we produce state-of-the-art specialty chemicals that provide customers with practical solutions to such challenges as climate change, access to drinking water, the future of energy, fossil fuel preservation and the need for lighter materials. With operations in close to 50 countries, some 19,000 employees and research centers in North America, France and Asia, Arkema generates pro forma annual revenue of some €7.5 billion, and holds leadership positions in all its markets with a portfolio of internationally recognized brands.

Arkema
420, rue d’Estienne d’Orves – F-92705 COLOMBES Cedex – France
Standard : +33 (0)1 49 00 80 80 – Fax : +33 (0)1 49 00 83 96
Société anonyme au capital de 728 226 950 euros – 445 074 685 RCS Nanterre
arkema.com

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