09.29.23
Arkema presents the new stage of its development at the Capital Markets Day Sept. 27, 2023. Building on the achievements since the April 2020 strategy update, the group now aims to accelerate its organic sales growth in the medium term, by capitalizing on its recent or future industrial investments in high value-added technological solutions serving fast-growing market segments supported by sustainable megatrends.
• By 2028, Arkema aims to achieve sales of around €12 billion with an elevated EBITDA margin of around 18%.
• Average organic sales growth is expected at around 4% per year and average organic EBITDA growth at 7% to 8% per year over the 2024-28 period.
• Cash generation should remain strong and shareholder returns increase by 30% over the 2024-28 period versus the prior five-year period.
• The group will also capitalize on the recent validation of its 1.5°C trajectory by SBTi to further strengthen its decarbonization initiatives, paving the way for Net-Zero by 2050.
Since the April 2020 Strategy Update, the group has continued its value-creative transformation, nearly completing its shift into a pure specialty materials player thanks to targeted investments, cutting-edge sustainable innovation and a high value-added portfolio management strategy.
Arkema’s materials science expertise is now built around the three coherent and comple-mentary segments of Adhesive Solutions, Advanced Materials, and Coating Solutions, with a portfolio of cutting-edge technologies.
This transformation has generated strong financial returns for Arkema and enabled the group to increase structural profitability. Arkema is thus on track to achieve the ambitious financial targets it set for 2024, while delivering €1.3 billion of shareholder returns since 2020 via dividends and share buybacks and maintaining strict financial discipline.
Importantly, Arkema has also markedly improved its corporate social responsibility profile, notably with an ambitious climate plan aligned with the 1.5°C trajectory validated by SBTi.
Building on its successful evolution since 2020, having acquired or built its portfolio of technologies, the group is now ready to progress to the next level of its growth trajectory by leveraging its unique position.
Thus, by 2028, Arkema aims to achieve sales of around €12 billion with an elevated EBITDA margin of around 18%, translating into average organic sales growth of around 4% per year and average organic EBITDA growth at 7% to 8% per year in the 2024-28 period. The group will also maintain its strict financial discipline with a net debt to EBITDA ratio not greater than 2x.
In order to achieve this ambition, Arkema will place sustainability at the heart of its strategy through five main drivers:
1. Leveraging the strength of One Arkema to enhance employee empowerment and customer intimacy.
2. Achieving superior growth from sustainable innovation in five key submarkets driven by megatrends where Arkema has built leading positions with cutting-edge technologies.
3. Ramping up recent capex, notably the bio-based PA11 plant in Singapore and PVDF expansions, and carrying out new high return projects in batteries, renewable energy, de-carbonization and bio-based products.
4. Further strengthening the portfolio with bolt-on acquisitions and the finalization of the divestment of Intermediates.
5. Driving manufacturing excellence including a strong focus on decarbonization and digitalization.
• By 2028, Arkema aims to achieve sales of around €12 billion with an elevated EBITDA margin of around 18%.
• Average organic sales growth is expected at around 4% per year and average organic EBITDA growth at 7% to 8% per year over the 2024-28 period.
• Cash generation should remain strong and shareholder returns increase by 30% over the 2024-28 period versus the prior five-year period.
• The group will also capitalize on the recent validation of its 1.5°C trajectory by SBTi to further strengthen its decarbonization initiatives, paving the way for Net-Zero by 2050.
Since the April 2020 Strategy Update, the group has continued its value-creative transformation, nearly completing its shift into a pure specialty materials player thanks to targeted investments, cutting-edge sustainable innovation and a high value-added portfolio management strategy.
Arkema’s materials science expertise is now built around the three coherent and comple-mentary segments of Adhesive Solutions, Advanced Materials, and Coating Solutions, with a portfolio of cutting-edge technologies.
This transformation has generated strong financial returns for Arkema and enabled the group to increase structural profitability. Arkema is thus on track to achieve the ambitious financial targets it set for 2024, while delivering €1.3 billion of shareholder returns since 2020 via dividends and share buybacks and maintaining strict financial discipline.
Importantly, Arkema has also markedly improved its corporate social responsibility profile, notably with an ambitious climate plan aligned with the 1.5°C trajectory validated by SBTi.
Building on its successful evolution since 2020, having acquired or built its portfolio of technologies, the group is now ready to progress to the next level of its growth trajectory by leveraging its unique position.
Thus, by 2028, Arkema aims to achieve sales of around €12 billion with an elevated EBITDA margin of around 18%, translating into average organic sales growth of around 4% per year and average organic EBITDA growth at 7% to 8% per year in the 2024-28 period. The group will also maintain its strict financial discipline with a net debt to EBITDA ratio not greater than 2x.
In order to achieve this ambition, Arkema will place sustainability at the heart of its strategy through five main drivers:
1. Leveraging the strength of One Arkema to enhance employee empowerment and customer intimacy.
2. Achieving superior growth from sustainable innovation in five key submarkets driven by megatrends where Arkema has built leading positions with cutting-edge technologies.
3. Ramping up recent capex, notably the bio-based PA11 plant in Singapore and PVDF expansions, and carrying out new high return projects in batteries, renewable energy, de-carbonization and bio-based products.
4. Further strengthening the portfolio with bolt-on acquisitions and the finalization of the divestment of Intermediates.
5. Driving manufacturing excellence including a strong focus on decarbonization and digitalization.
