Colombes, 6 November 2024



ARKEMA: THIRD-QUARTER 2024 RESULTS

High-level EBITDA margin and increase in third-quarter sales despite a
macroenvironment remaining challenging, notably in Europe

Sales of €2.4 billion, up by 2.9% year-on-year:
• Volumes up by 2.2% in an environment of global weak demand, particularly in Europe, while
supported by certain markets such as energy, sports, healthcare and packaging
• Broadly stable price effect at a negative 0.2%, reflecting dynamic management of selling prices in a
raw materials environment that has stabilized overall

EBITDA up by 5.4% to €407 million (€386 million in Q3'23), driven in particular by strong growth in
Adhesive Solutions and Advanced Materials, and better resilience in the US and Asia

EBITDA margin up, reaching the high level of 17.0% (16.6% in Q3'23), reflecting the quality of the
Group's positioning and technologies, its balanced geographical footprint, as well as strict management
of its operations

Adjusted net income down slightly to €168 million, representing €2.25 per share (€2.38 in Q3'23)

Solid recurring cash flow of €190 million and net debt tightly controlled at €3.1 billion (including hybrid
bonds), down from €3.3 billion at the end of June and representing 2.0x last twelve-months EBITDA

2024 guidance: As the rebound of the macroeconomic environment has not materialized yet, the Group
is targeting for 2024 an EBITDA at the lower end of its guidance range of €1.53 billion.


Following Arkema’s Board of Directors’ meeting held on 5 November 2024 to review the Group’s consolidated
financial information for the third quarter of 2024, Chairman and CEO Thierry Le Hénaff said:


“Arkema's Specialty Materials sales grew by 4% year-on-year despite a third quarter marked by a challenging
environment, particularly in Europe. After an encouraging July, the end of the quarter was marked by weaker
demand. I would like to congratulate our teams, whose efforts in this unfavorable environment have enabled
the Group to achieve a strong financial performance. In particular, our EBITDA margin increased to reach 17%,
showing our resilience and validating our strategy of focusing on Specialty Materials.
Over the coming months, we will be maintaining our efforts on strict management of costs, capital
expenditure and working capital. We will also continue to progress on our major growth projects in order to
start 2025 in the best possible position. We are also looking forward to welcoming Dow’s teams very soon,
following the closing of the acquisition of the flexible packaging laminating adhesives business, expected by
the end of the year, and which will mark a new chapter in Bostik's growth in high-performance adhesives.”
KEY FIGURES FOR THIRD-QUARTER 2024


in millions of euros Q3'24 Q3'23 Change

Sales 2,394 2,326 +2.9%

EBITDA 407 386 +5.4%
Specialty Materials 377 346 +9.0%
Intermediates 51 55 -7.3%
Corporate -21 -15

EBITDA margin 17.0% 16.6%
Specialty Materials 17.2% 16.4%
Intermediates 26.7% 26.7%

Recurring operating income (REBIT) 246 246 -

REBIT margin 10.3% 10.6%

Adjusted net income 168 177 -5.1%

Adjusted net income per share (in €) 2.25 2.38 -5.5%

Recurring cash flow 190 312

Free cash flow 175 273
Net debt including hybrid bonds 3,111 2,419
€2,930m as of 31/12/2023




THIRD-QUARTER 2024 BUSINESS PERFORMANCE

At €2,394 million, Group sales were up by 2.9% compared with third-quarter 2023, supported by Specialty
Materials, which benefited in particular from positive organic growth in Asia and North America, while Europe
was down, and from PIAM integration. In a macroeconomic environment still challenging, with no recovery
in demand and marked by customer destocking at the end of the quarter, Group volumes were nevertheless
up 2.2% on last year. Specialty Materials volumes increased by 3.8%, supported by some more buoyant
markets such as energy, sports, packaging and healthcare, while construction is showing no signs of
improvement and the automotive sector is slowing down, notably in Europe. Intermediates volumes were
down by 12.1%, impacted by existing quota mechanisms in refrigerant gases. The price effect remained
broadly stable (down 0.2%), with a slight decrease in Specialty Materials (down 0.7%), in line with the overall
raw materials’ evolution, offset by a positive dynamic in refrigerant gases. The 2.3% positive scope effect
corresponds essentially to the acquisition of PIAM in Advanced Materials. The currency effect was a negative
1.4%, reflecting the depreciation of the US dollar and Latin American currencies against the euro.
Group EBITDA was up 5.4% year-on-year to €407 million (€386 million in Q3'23). With an increase in each
of its three segments and particularly in Adhesive Solutions and Advanced Materials, Specialty Materials
EBITDA increased significantly by 9.0%. Intermediates remained at a solid level, although down on the prior
year. EBITDA included the contribution of major organic growth projects, which will continue to ramp up
over the coming quarters to serve attractive markets such as sustainable consumer goods, green energy,
mobility, sports and efficient housing. The EBITDA margin was up 40 bps on last year, at a very good level
of 17.0% (16.6% in Q3'23), reflecting, in this lackluster market environment, the quality of the Group's
positioning and technology portfolio, its balanced geographical footprint as well as its strict management of
operations.
At €246 million, recurring operating income (REBIT) was stable compared with third-quarter 2023, including
€161 million in recurring depreciation and amortization, up €21 million year-on-year, mainly reflecting the
consolidation of PIAM and the start-up of new production units for Advanced Materials. REBIT margin in the
third quarter of 2024 thus amounted to 10.3% (10.6% in Q3’23).
Adjusted net income came to €168 million (€177 million in Q3’23), representing €2.25 per share, including a
tax rate, excluding exceptional items, of 22% of recurring operating income.

2
CASH FLOW AND NET DEBT AT 30 SEPTEMBER 2024

Arkema delivered a solid recurring cash flow of €190 million. It was down compared with the prior year
(€312 million in Q3'23), reflecting a less significant change in working capital and an increase in capital
expenditure to €167 million (€137 million in Q3'23) corresponding to the implementation of major projects.
Working capital remained well controlled, representing 16.4% of annualized sales at end-September 2024
(16.3% at end-September 2023). Over the full year, capital expenditure is expected to come in at around
€770 million, in line with full-year guidance. After fine-tuning its analysis of potential future capital
expenditure, and taking into account a slower pace of ramp-up of the electric vehicle market, the Group
has adjusted the envelop of capital expenditure that was announced at the Capital Markets Day in
September 2023, and now plans to spend between €650 million and €700 million a year.
At €175 million, free cash flow included a non-recurring cash outflow of €15 million related notably to
start-up costs for the Singapore platform and restructuring expenses.
Net debt (including hybrid bonds) remained tightly controlled and decreased slightly over the quarter to
€3,111 million (€3,270 million at end-June 2024), returning to the level of 2x last twelve-months EBITDA.


THIRD-QUARTER 2024 PERFORMANCE BY SEGMENT

ADHESIVE SOLUTIONS (29% OF TOTAL GROUP SALES)


in millions of euros Q3'24 Q3'23 Change

Sales 682 682 -

EBITDA 107 98 +9.2%

EBITDA margin 15.7% 14.4%

Recurring operating income (REBIT) 86 77 +11.7%

REBIT margin 12.6% 11.3%


Sales in the Adhesive Solutions segment were stable year-on-year at €682 million. This was supported by
a 1.9% rise in volumes, reflecting notably a good dynamic in the packaging and labelling markets, while the
construction sector remained challenging. At negative 1%, the price effect was limited and reflected the
lower price of certain raw materials. The positive scope effect of 0.6% corresponds to the integration of Arc
Building Products, and the currency effect was a negative 1.5%.
At €107 million, EBITDA was up significantly by 9.2% compared with the previous year, and EBITDA margin
reached a record level at 15.7%, up 130 bps on third-quarter 2023. This very good performance confirms the
relevance of the segment's development strategy, which is based on product mix improvement toward higher
value-added solutions, targeted high-quality acquisitions, active price and cost management as well as
operational excellence initiatives.




3
ADVANCED MATERIALS (37% OF TOTAL GROUP SALES)


in millions of euros Q3'24 Q3'23 Change

Sales 885 856 +3.4%

EBITDA 189 172 +9.9%

EBITDA margin 21.4% 20.1%

Recurring operating income (REBIT) 95 100 -5.0%

REBIT margin 10.7% 11.7%


Sales in the Advanced Materials segment were up by 3.4% compared with third-quarter 2023 to €885 million.
The segment’s volumes rose by 2.0%, supported by the sports, energy and healthcare markets. However,
they were negatively impacted by the slowdown in the automotive sector, notably in Europe, and the
temporary shutdown of our German organic peroxides facility following the exceptional flooding of the
Danube in early June. The price effect was a negative 2.3%, mainly reflecting changes in raw material prices.
The segment's sales also benefited from a positive 5.7% scope effect due to the contribution of PIAM, and
the currency was a negative 2.0%.

At €189 million, the segment's EBITDA rose sharply by 9.9% year-on-year (€172 million in Q3'23). High
Performance Polymers EBITDA was up significantly, benefiting from the contribution of new projects, the
integration of PIAM and good momentum in high value-added fluorospecialties. Performance Additives
EBITDA was down on the Q3’23 high comparison base and included the negative impact of the temporary
shutdown of the organic peroxides facility in Germany, estimated at approximately €8 million over the
quarter. The EBITDA margin was substantially up reaching a very good level at 21.4% (20.1% in Q3’23).


COATING SOLUTIONS (26% OF TOTAL GROUP SALES)


in millions of euros Q3'24 Q3'23 Change

Sales 627 572 +9.6%

EBITDA 81 76 +6.6%

EBITDA margin 12.9% 13.3%

Recurring operating income (REBIT) 49 43 +14.0%

REBIT margin 7.8% 7.5%


Sales in the Coating Solutions segment were up by a sharp 9.6% compared with third-quarter 2023 to
€627 million. Compared with last year's baseline, which was marked by destocking, volumes rose by 8.7%
in an environment that remains relatively challenging, particularly in the upstream, and were supported
mainly by the coatings, notably architectural, hygiene and water treatment markets. At a positive 2.1%, the
price effect mainly reflected the impact of higher propylene prices in the United States on acrylic monomer
prices, and the currency effect was a negative 1.2%.
At €81 million, the segment's EBITDA rose substantially by 6.6% (€76 million in Q3'23), supported by positive
volume trends, strict management of costs and operations and the ramp-up of Sartomer's organic project
in China. In this environment, the EBITDA margin held up well and stood at 12.9% (13.3% in Q3'23).




4
INTERMEDIATES (8% OF TOTAL GROUP SALES)


in millions of euros Q3'24 Q3'23 Change

Sales 191 206 -7.3%

EBITDA 51 55 -7.3%

EBITDA margin 26.7% 26.7%

Recurring operating income (REBIT) 39 42 -7.1%

REBIT margin 20.4% 20.4%


Sales in the Intermediates segment totaled €191 million, down by 7.3% compared with third-quarter 2023.
Volumes were down 12.1%, impacted by the effect of existing quota mechanisms in refrigerant gases, partly
offset by higher acrylics volumes in China. Prices rose by 4.8%, driven essentially by the impact of quota
mechanisms in refrigerant gases.
In this context, segment EBITDA came in at €51 million (€55 million in Q3’23) and the EBITDA margin
remained at a good level at 26.7% (26.7% in Q3’23).


HIGHLIGHTS

On 29 August 2024, Arkema announced several appointments to its Executive Committee. Sophie Fouillat
has been appointed as Executive Vice President, Strategy, replacing Bernard Boyer who is retiring. Tilo Quink
has joined the Group to take up the role of Senior Vice President, Performance Additives. Laurent Tellier,
who previously held this position, has been appointed Senior Vice President High Performance Polymers and
Fluorogases, replacing Erwoan Pezron. Erwoan Pezron becomes advisor to the Chairman and Chief Executive
Officer, while remaining a member of the Executive Committee until his retirement at the end of the year.

On 5 September 2024, Arkema successfully completed a €500 million senior bond issue with a 10-year
maturity and an annual coupon of 3.50%. This operation will enable the Group to continue to refinance its
upcoming bond maturities and extend the average maturity of its debt.

On 30 October 2024, Arkema finalized a share capital increase reserved for employees, for a total of close
to 8,700 subscriptions and a global amount of €61.8 million, thus demonstrating the strong commitment of
Group employees and their confidence in Arkema’s development opportunities. The newly issued shares are
fully assimilated to the existing shares and will be entitled to the dividend payment in 2025.


OUTLOOK FOR 2024

With a still lackluster macroeconomic environment expected for the rest of the year, marked by limited
visibility and a continued weak demand environment, the Group will focus on strictly managing its operating
costs and optimizing its working capital in line with demand. In parallel, work on the longer term will
continue, with the ongoing ramp-up of the organic projects, the closing of the acquisition of Dow's flexible
packaging laminating adhesives business, as well as the first steps in the start-up of the HFO-1233zd
fluorospecialties unit in the United States.

In this context, based on the results of the first nine months, Arkema expects to achieve in 2024 an EBITDA
at the lower end of its guidance range of €1.53 billion.

Finally, the Group will continue to implement its strategic roadmap, leveraging its cutting-edge innovation,
strengthening partnerships with its customers, and deploying its portfolio of technologies to support the
development of solutions for a less carbon-intensive and more sustainable world.




5
Further details concerning the Group's third-quarter 2024 results are provided in the "Third-quarter 2024
results and outlook" presentation and the "Factsheet", both available on Arkema's website at:
www.arkema.com/global/en/investor-relations/




FINANCIAL CALENDAR
27 February 2025: Publication of full-year results
7 May 2025: Publication of first-quarter 2025 results




DISCLAIMER


The information disclosed in this press release may contain forward-looking statements with respect to the
financial position, results of operations, business and strategy of Arkema.
In a context of significant geopolitical tensions, where the outlook for the global economy remains uncertain,
the retained assumptions and forward-looking statements could ultimately prove inaccurate.
Such statements are based on management's current views and assumptions that could ultimately prove
inaccurate and are subject to risk factors such as (but not limited to) changes in raw material prices, currency
fluctuations, the pace at which cost-reduction projects are implemented, escalating geopolitical tensions,
and changes in general economic and financial conditions. Arkema does not assume any liability to update
such forward-looking statements whether as a result of any new information or any unexpected event or
otherwise. Further information on factors which could affect Arkema's financial results is provided in the
documents filed with the French Autorité des marchés financiers.
Balance sheet, income statement and cash flow statement data, as well as data relating to the statement
of changes in shareholders' equity and information by segment included in this press release are extracted
from the consolidated financial information at 30 September 2024, as reviewed by Arkema's Board of Directors
on 5 November 2024. Quarterly financial information is not audited.
Information by segment is presented in accordance with Arkema's internal reporting system used by
management.




6
Details of the main alternative performance indicators used by the Group are provided in the tables appended
to this press release. For the purpose of analyzing its results and defining its targets, the Group also uses
EBITDA margin, which corresponds to EBITDA expressed as a percentage of sales, EBITDA equaling recurring
operating income (REBIT) plus recurring depreciation and amortization of tangible and intangible assets, as
well as REBIT margin, which corresponds to recurring operating income (REBIT) expressed as a percentage of
sales.
For the purpose of tracking changes in its results, and particularly its sales figures, the Group analyzes the
following effects (unaudited analyses):
scope effect: the impact of changes in the Group's scope of consolidation, which arise from acquisitions
and divestments of entire businesses or as a result of the first-time consolidation or deconsolidation of
entities. Increases or reductions in capacity are not included in the scope effect;
currency effect: the mechanical impact of consolidating accounts denominated in currencies other than
the euro at different exchange rates from one period to another. The currency effect is calculated by
applying the foreign exchange rates of the prior period to the figures for the period under review;
price effect: the impact of changes in average selling prices is estimated by comparing the weighted
average net unit selling price of a range of related products in the period under review with their weighted
average net unit selling price in the prior period, multiplied, in both cases, by the volumes sold in the period
under review; and
volume effect: the impact of changes in volumes is estimated by comparing the quantities delivered in
the period under review with the quantities delivered in the prior period, multiplied, in both cases, by the
weighted average net unit selling price in the prior period.




Building on its unique set of expertise in materials science, Arkema offers a portfolio of first-class technologies to address
ever-growing demand for new and sustainable materials. With the ambition to become a pure player in Specialty Materials,
the Group is structured into three complementary, resilient and highly innovative segments dedicated to Specialty Materials
– Adhesive Solutions, Advanced Materials, and Coating Solutions – accounting for some 92% of Group sales in 2023, and a
well-positioned and competitive Intermediates segment. Arkema offers cutting-edge technological solutions to meet the
challenges of, among other things, new energies, access to water, recycling, urbanization and mobility, and fosters a
permanent dialogue with all its stakeholders. The Group reported sales of around €9.5 billion in 2023, and operates in some
55 countries with 21,100 employees worldwide.




Investor relations contacts
Béatrice Zilm +33 (0)1 49 00 75 58 beatrice.zilm@arkema.com
James Poutier +33 (0)1 49 00 73 12 james.poutier@arkema.com
Alexis Noël +33 (0)1 49 00 74 37 alexis.noel@arkema.com
Colombe Boiteux +33 (0)1 49 00 72 07 colombe.boiteux@arkema.com

Media contacts
Gilles Galinier +33 (0)1 49 00 70 07 gilles.galinier@arkema.com
Anne Plaisance +33 (0)6 81 87 48 77 anne.plaisance@arkema.com
A French société anonyme (limited company) registered in Nanterre:
RCS 445 074 685 Nanterre
Résultats Arkema Q3 2024
3




ARKEMA financial statements




Consolidated financial information at the end of September 2024




Consolidated financial statements as end of December 2023 have been audited.
CONSOLIDATED INCOME STATEMENT




3rd quarter 2024 3rd quarter 2023
(In millions of euros)




Sales 2,394 2,326


Operating expenses (1,917) (1,835)
Research and development expenses (47) (68)
Selling and administrative expenses (222) (209)
Other income and expenses (24) (32)
Operating income 184 182
Equity in income of affiliates (2) (2)
Financial result (20) (9)
Income taxes (42) (54)
Net income 120 117
Attributable to non-controlling interests 2 3
Net income - Group share 118 114
Earnings per share (amount in euros) 1.43 1.39
Diluted earnings per share (amount in euros) 1.42 1.37




End of September 2024 End of September 2023
(In millions of euros)



Sales 7,271 7,292


Operating expenses (5,755) (5,757)
Research and development expenses (184) (204)
Selling and administrative expenses (695) (661)
Other income and expenses (101) (71)
Operating income 536 599
Equity in income of affiliates (4) (7)
Financial result (53) (44)
Income taxes (130) (146)
Net income 349 402
Attributable to non-controlling interests 7 4
Net income - Group share 342 398
Earnings per share (amount in euros) 4.36 5.12
Diluted earnings per share (amount in euros) 4.34 5.09
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME


rd rd
3 quarter 2024 3 quarter 2023
(In millions of euros)

Net income 120 117
Hedging adjustments 13 (13)
Other items — 0
Deferred taxes on hedging adjustments and other items (1) 0
Change in translation adjustments (155) 109
Other recyclable comprehensive income (143) 96
Impact of remeasuring unconsolidated investments 0 0
Actuarial gains and losses (14) 26
Deferred taxes on actuarial gains and losses 3 (5)
Other non-recyclable comprehensive income (11) 21
Total income and expenses recognized directly in equity (154) 117
Total comprehensive income (34) 234
Attributable to non-controlling interest 2 3
Total comprehensive income - Group share (36) 231




End of September 2024 End of September 2023
(In millions of euros)


Net income 349 402
Hedging adjustments 10 (51)
Other items 0 0
Deferred taxes on hedging adjustments and other items (1) 2
Change in translation adjustments (84) (34)
Other recyclable comprehensive income (75) (83)
Impact of remeasuring unconsolidated investments (1) 0
Actuarial gains and losses 4 19
Deferred taxes on actuarial gains and losses (1) (4)
Other non-recyclable comprehensive income 2 15
Total income and expenses recognized directly in equity (73) (68)
Total comprehensive income 276 334
Attributable to non-controlling interest (4) 2
Total comprehensive income - Group share 280 332
INFORMATION BY SEGMENT




3rd quarter 2024


Adhesive Advanced Coating
(In millions of euros) Intermediates Corporate Total
Solutions Materials Solutions


Sales 682 885 627 191 9 2,394
EBITDA 107 189 81 51 (21) 407
Recurring depreciation and amortization of property, plant and
equipment and intangible assets (21) (94) (32) (12) (2) (161)

Recurring operating income (REBIT) 86 95 49 39 (23) 246

Depreciation and amortization related to the revaluation of property,
plant and equipment and intangible assets as part of the allocation of the
purchase price of businesses (28) (8) (2) - - (38)
Other income and expenses (9) (13) 0 0 (2) (24)
Operating income 49 0 74 47 39 (25) 184

Equity in income of affiliates - (2) - - - (2)


Intangible assets and property, plant, and equipment additions 21 100 28 3 15 167
Of which: recurring capital expenditure 21 100 28 3 15 167




3rd quarter 2023


Adhesive Advanced Coating
(In millions of euros) Intermediates Corporate Total
Solutions Materials Solutions


Sales 682 856 572 206 10 2,326
EBITDA 98 172 76 55 (15) 386
Recurring depreciation and amortization of property, plant and
equipment and intangible assets (21) (72) (33) (13) (1) (140)

Recurring operating income (REBIT) 77 100 43 42 (16) 246

Depreciation and amortization related to the revaluation of property,
plant and equipment and intangible assets as part of the allocation of the
purchase price of businesses (26) (5) (1) 0 - - (32)
Other income and expenses (10) (21) 00 (1) 0 (32)
Operating income 41 # 74 42 0 41 (16) 182

Equity in income of affiliates - (2) -0 - - (2)


Intangible assets and property, plant, and equipment additions 15 93 23 0 7 4 142
Of which: recurring capital expenditure 15 88 23 0 7 4 137
INFORMATION BY SEGMENT




End of September 2024


Adhesive Advanced Coating
(In millions of euros) Intermediates Corporate Total
Solutions Materials Solutions


Sales 2,068 2,681 1,890 603 29 7,271
EBITDA 321 541 247 174 (75) 1,208
Recurring depreciation and amortization of property, plant and equipment
and intangible assets (65) (263) (93) (32) (5) (458)

Recurring operating income (REBIT) 256 278 154 142 (80) 750
Depreciation and amortization related to the revaluation of property, plant
and equipment and intangible assets as part of the allocation of the
purchase price of businesses (81) (27) (5) - - (113)
Other income and expenses (25) (64) 0 (1) (11) (101)
Operating income 150 187 149 141 (91) 536
Equity in income of affiliates - (4) - - - (4)

Intangible assets and property, plant, and equipment additions* 48 276 71 14 27 436
Of which: recurring capital expenditure* 48 276 71 14 27 0 436

*includes a correction related to Q1’24 data resulting from a transfer of figures between Coating Solutions and Intermediates

End of September 2023


Adhesive Advanced Coating
(In millions of euros) Intermediates Corporate Total
Solutions Materials Solutions


Sales 2,072 2,705 1,850 636 29 7,292
EBITDA 286 517 258 173 (64) 1,170
Recurring depreciation and amortization of property, plant and equipment
and intangible assets (62) (207) (94) (38) (4) (405)
Recurring operating income (REBIT) 224 310 164 135 (68) 765
Depreciation and amortization related to the revaluation of property, plant
and equipment and intangible assets as part of the allocation of the
purchase price of businesses (77) (13) (5) — — (95)
Other income and expenses (22) (37) (1) (1) (10) (71)
Operating income 125 260 158 134 (78) 599
Equity in income of affiliates — (7) — — — (7)

Intangible assets and property, plant, and equipment additions 48 230 62 15 11 366
Of which: recurring capital expenditure 48 213 62 15 11 349
CONSOLIDATED CASH FLOW STATEMENT



End of September 2024 End of September 2023


(In millions of euros)




Operating cash flows

Net income 349 402
Depreciation, amortization and impairment of assets 582 512
Other provisions and deferred taxes 16 (70)
(Gains)/losses on sales of long-term assets 3 (29)
Undistributed affiliate equity earnings 4 7
Change in working capital (262) (27)
Other changes 22 15

Cash flow from operating activities 714 810

Investing cash flows

Intangible assets and property, plant, and equipment additions (436) (366)
Change in fixed asset payables (75) (131)
Acquisitions of operations, net of cash acquired (29) (66)
Increase in long-term loans (63) (45)

Total expenditures (603) (608)

Proceeds from sale of intangible assets and property, plant, and equipment 5 8
Proceeds from sale of operations, net of cash transferred — 32
Repayment of long-term loans 52 56
Total divestitures 57 96
Cash flow from investing activities (546) (512)

Financing cash flows

Issuance (repayment) of shares and paid-in surplus — 0
Purchase of treasury shares (24) (32)
Issuance of hybrid bonds 399 —
Redemption of hybrid bonds (400) —
Dividends paid to parent company shareholders (261) (253)
Interest paid to bearers of subordinated perpetual notes (16) (16)
Dividends paid to non-controlling interests and buyout of minority interests (2) (3)
Increase in long-term debt 494 397
Decrease in long-term debt (764) (63)
Increase / (Decrease) in short-term debt 327 (31)

Cash flow from financing activities (247) (1)

Net increase/(decrease) in cash and cash equivalents (79) 297

Effect of exchange rates and changes in scope 29 11
Cash and cash equivalents at beginning of period 2,045 1,592
Cash and cash equivalents at end or the period 1,995 1,900
CONSOLIDATED BALANCE SHEET
30 September 2024 31 December 2023

(In millions of euros)
ASSETS
Goodwill 3,011 3,040
Intangible assets, net 2,331 2,416
Property, plant and equipment, net 3,735 3,730
Equity affiliates: investments and loans 11 13
Other investments 56 52
Deferred tax assets 111 157
Other non-current assets 258 251

TOTAL NON-CURRENT ASSETS 9,513 9,659

Inventories 1,392 1,208
Accounts receivable 1,412 1,261
Other receivables and prepaid expenses 195 170
Income tax receivables 106 142
Other current financial assets 24 32
Cash and cash equivalents 1,995 2,045
Assets held for sale 19 —
TOTAL CURRENT ASSETS 5,143 4,858

TOTAL ASSETS 14,656 14,517

LIABILITIES AND SHAREHOLDERS' EQUITY

Share capital 750 750
Paid-in surplus and retained earnings 6,402 6,304
Treasury shares (44) (21)
Translation adjustments 97 170
SHAREHOLDERS' EQUITY - GROUP SHARE 7,205 7,203
Non-controlling interests 247 252
TOTAL SHAREHOLDERS' EQUITY 7,452 7,455

Deferred tax liabilities 407 436
Provisions for pensions and other employee benefits 391 397
Other provisions and non-current liabilities 429 416
Non-current debt 3,540 3,734
TOTAL NON-CURRENT LIABILITIES 4,767 4,983

Accounts payable 993 1,036
Other creditors and accrued liabilities 472 392
Income tax payables 71 83
Other current financial liabilities 23 27
Current debt 866 541
Liabilities related to assets held for sale 12 —
TOTAL CURRENT LIABILITIES 2,437 2,079

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 14,656 14,517
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY




Shares issued Treasury shares
Shareholders'
Non-controlling Shareholder
(In millions of euros) Number Amount Paid-in Hybrid Retained Translation Number Amount equity - Group
interests s' equity
surplus bonds earnings adjustments share


At 1 January 2024 75,043,514 750 1,067 700 4,537 170 (228,901) (21) 7,203 252 7,455
Cash dividend - - - - (277) - - - (277) (2) (279)

Issuance of share capital - - - - - - - - - - -
Capital decrease by cancellation of treasury shares - - - - - - - - - - -
Purchase of treasury shares - - - - - - (271,070) (24) (24) - (24)
Cancellation of purchased treasury shares - - - - - - - - - - -
Grants of treasury shares to employees - - - - (1) - 12,601 1 0 - 0
Sale of treasury shares - - - - - - - - - - -
Share-based payments - - - - 21 - - - 21 - 21
Issuance of hybrid bonds - - - 400 (1) - - - 399 - 399
Redemption of hybrid bonds - - - (400) - - - - (400) - (400)
Other - - - - 3 - - - 3 1 4

Transactions with shareholders - - - 0 (255) - (258,469) (23) (278) (1) (279)
Net income - - - - 342 - - - 342 7 349

Total income and expense recognized directly through
- - - - 11 (73) - - (62) (11) (73)
equity

Comprehensive income - - - - 353 (73) - - 280 (4) 276
At 30 September 2024 75,043,514 750 1,067 700 4,635 97 (487,370) (44) 7,205 247 7,452
ALTERNATIVE PERFORMANCE INDICATORS

To monitor and analyse the financial performance of the Group and its activities, the Group management uses alternative performance indicators. These are financial indicators that are not defined by the IFRS. This note presents a
reconciliation of these indicators and the aggregates from the consolidated financial statements under IFRS.



RECURRING OPERATING INCOME (REBIT) AND EBITDA

(In millions of euros) End of September 2024 End of September 2023 3rd quarter 2024 3rd quarter 2023

OPERATING INCOME 536 599 184 182
- Depreciation and amortization related to the revaluation of tangible and intangible assets as part of the
allocation of the purchase price of businesses (113) (95) (38) (32)
- Other income and expenses (101) (71) (24) (32)
RECURRING OPERATING INCOME (REBIT) 750 765 246 246
- Recurring depreciation and amortization of tangible and intangible assets (458) (405) (161) (140)
EBITDA 1,208 1,170 407 386



Details of depreciation and amortization of tangible and intangible assets:


(In millions of euros) End of September 2024 End of September 2023 3rd quarter 2024 3rd quarter 2023


Depreciation and amortization of tangible and intangible assets (582) (512) (200) (178)

Of which: Recurring depreciation and amortization of tangible and intangible assets (458) (405) (161) (140)
Of which: Depreciation and amortization related to the revaluation of assets as part of the allocation of the
purchase price of businesses (113) (95) (38) (32)
Of which: Impairment included in other income and expenses (11) 12 (1) (6)




ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER SHARE

(In millions of euros) End of September 2024 End of September 2023 3rd quarter 2024 3rd quarter 2023

NET INCOME - GROUP SHARE 342 398 118 114
- Depreciation and amortization related to the revaluation of tangible and intangible assets as part of the
allocation of the purchase price of businesses (113) (95) (38) (32)
- Other income and expenses (101) (71) (24) (32)
- Other income and expenses - Non-controlling interests — — — —
- Taxes on depreciation and amortization related to the revaluation of assets as part of the allocation of the
purchase price of businesses 25 23 9 10
- Taxes on other income and expenses 17 14 5 6
- One-time tax effects (6) (19) (2) (15)
ADJUSTED NET INCOME 520 546 168 177
Weighted average number of ordinary shares 74,699,795 74,636,305
Weighted average number of potential ordinary shares 75,114,108 75,043,514
ADJUSTED EARNINGS PER SHARE (in euros) 6.96 7.32 2.25 2.38
DILUTED ADJUSTED EARNINGS PER SHARE (in euros) 6.92 7.28 2.23 2.36




RECURRING CAPITAL EXPENDITURE

(In millions of euros) End of September 2024 End of September 2023 3rd quarter 2024 3rd quarter 2023

INTANGIBLE ASSETS AND PROPERTY, PLANT, AND EQUIPMENT ADDITIONS 436 366 167 142
- Exceptional capital expenditure — 17 — 5
- Investments relating to portfolio management operations — — — —
- Capital expenditure with no impact on net debt — — — —
RECURRING CAPITAL EXPENDITURE 436 349 167 137




CASH FLOWS

(In millions of euros) End of September 2024 End of September 2023 3rd quarter 2024 3rd quarter 2023

Cash flow from operating activities 714 810 334 393
+ Cash flow from investing activities (546) (512) (160) (125)
NET CASH FLOW 168 298 174 268
- Net cash flow from portfolio management operations (42) (44) (1) (5)
FREE CASH FLOW 210 342 175 273
Exceptional capital expenditure — (17) — (5)
- Non-recurring cash flow (52) (77) (15) (34)
RECURRING CASH FLOW 262 436 190 312
- Recurring capital expenditure (436) (349) (167) (137)
OPERATING CASH FLOW 698 785 357 449

Operating cash flow corresponds to recurring cash flow before recurring capital expenditure

Net cash flow from portfolio management operations corresponds to the impact of acquisition and disposal operations.
Non-recurring cash flow corresponds to cash flow from other income and expenses.
NET DEBT

(In millions of euros) End of September 2024 End of December 2023

Non-current debt 3,540 3,734
+ Current debt 866 541
- Cash and cash equivalents 1,995 2,045
NET DEBT 2,411 2,230
+ Hybrid bonds 700 700
NET DEBT AND HYBRID BONDS 3,111 2,930




WORKING CAPITAL

(In millions of euros) End of September 2024 End of December 2023

Inventories 1,392 1,208
+ Accounts receivable 1,412 1,261
+ Other receivables including income taxes 301 312
+ Other current financial assets 24 32
- Accounts payable 993 1,036
- Other liabilities including income taxes 543 475
- Other current financial liabilities 23 27
WORKING CAPITAL 1,570 1,275




CAPITAL EMPLOYED

(In millions of euros) End of September 2024 End of December 2023

Goodwill, net 3,011 3,040
+ Intangible assets (excluding goodwill), and property, plant and equipment, net 6,066 6,146
+ Investments in equity affiliates 11 13
+ Other investments and other non-current assets 314 303
+ Working capital 1,570 1,275
CAPITAL EMPLOYED 10,972 10,777