Arkema: Full year 2015 results

March 2016

The Group ended 2015 well, and, as we are about to celebrate the 10-year anniversary of our spin off, Arkema’s teams are proud to present very solid results in a contrasted and volatile global economic environment. Both our earnings and cash generation have exceeded our full year targets.

€7,683 million sales, +29% up on 2014 including +26% related to changes in the scope of business

• €1,057 million EBITDA, significantly above full-year guidance, and strongly up (+35%) over 2014 (€784 million)
• Very good growth of Bostik within the Group (€183 million EBITDA over 12 months versus €158 million in 2014). As announced in September 2014, the acquisition is accretive in earnings and cash from first year
• Significant contribution of internal growth projects to the results, in particular of thiochemicals plant in Malaysia
• 13.8% EBITDA margin up year-on-year (13.2% in 2014) despite Bostik dilutive effect of almost half a percentage point
• €285 million net income Group share, +71% up on 2014 (€167 million)
• €4.23 adjusted net income per share, +14% up year-on-year
• Strong cash generation with +€442 million free cash flow1 and €1,379 million net debt, with a gearing back at 35% just one year after Bostik acquisition
• Proposed dividend increase to €1.90 per share (€1.85 per share for 2014)

The Board of Directors of Arkema met on 2 March 2016 to close the consolidated accounts of Arkema for 2015 and the annual financial statements of the parent company. At the close of the meeting, Chairman and CEO Thierry Le Hénaff stated: “The Group ended 2015 well, and, as we are about to celebrate the 10-year anniversary of our spin off, Arkema’s teams are proud to present very solid results in a contrasted and volatile global economic environment. Both our earnings and cash generation have exceeded our full year targets.

A number of transformative developments have contributed to this performance, such as the new thiochemicals platform in Malaysia, a technological success that also had a very good commercial start, and the promising start of Bostik which confirms the relevance of this acquisition and the long-term potential of adhesives within our Group. From an external perspective, some factors had a negative impact, as the acrylics cycle and worldwide growth, and others a positive impact, including a weaker euro.

Beyond the figures, the Group’s profile changed a lot in 2015. The implementation year after year of the strategy defined in 2006 positions Arkema as an innovative player in specialty chemicals and materials, with a balanced geographic presence and product lines that have demonstrated both resilience and growth in 2015. On the back of these elements, we are confident in our ability to maintain a good momentum in the Group’s development over the coming years.”