MIRA INFORM REPORT

Report Date :

14.01.2014

IDENTIFICATION DETAILS

Name :	ARKEMA SA

Registered Office :	420, rue d'Estienne-d'Orves Colombes, 92700

Country :	France

Financials (as on) :	31.12.2012

Date of Incorporation :	31.01.2003

Com. Reg. No.:	319632790

Legal Form :	Public Subsidiary

Line of Business :	Manufacture and marketing of chemical products.

No. of Employees :	14,000

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	No Complaints
Litigation :	Clear

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – March, 31^st,2013

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

France

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

france - ECONOMIC OVERVIEW

The French economy is diversified across all sectors. The government has partially or fully privatized many large companies, including Air France, France Telecom, Renault, and Thales. However, the government maintains a strong presence in some sectors, particularly power, public transport, and defense industries. With at least 79 million foreign tourists per year, France is the most visited country in the world and maintains the third largest income in the world from tourism. France's leaders remain committed to a capitalism in which they maintain social equity by means of laws, tax policies, and social spending that reduce income disparity and the impact of free markets on public health and welfare. France's real GDP contracted 2.6% in 2009, but recovered somewhat in 2010 and 2011, before stagnating in 2012. The unemployment rate increased from 7.4% in 2008 to 10.3% in 2012. Youth unemployment shot up to 24.2% during the third quarter of 2012 in metropolitan France. Lower-than-expected growth and high unemployment costs have strained France's public finances. The budget deficit rose sharply from 3.4% of GDP in 2008 to 7.5% of GDP in 2009 before improving to 4.8% of GDP in 2012, while France's public debt rose from 68% of GDP to 90% over the same period. Under President SARKOZY, Paris implemented some austerity measures to bring the budget deficit under the 3% euro-zone ceiling by 2013 and to highlight France's commitment to fiscal discipline at a time of intense financial market scrutiny of euro-zone debt. Socialist Party candidate Francois HOLLANDE won the May 2012 presidential election, after advocating pro-growth economic policies, the separation of banks' traditional deposit taking and lending activities from more speculative businesses, increasing the top corporate and personal tax rates, and hiring an additional 60,000 teachers during his five-year term. The government's attempt to introduce a 75% wealth tax on income over one million euros for two years was struck down by the French Constitutional Council in December 2012 because it applied to individuals rather than households. France ratified the EU fiscal stability treaty in October 2012 and HOLLANDE's government has maintained France's commitment to meeting the budget deficit target of 3% of GDP during 2013 even amid signs that economic growth will be lower than the government's forecast of 0.8%. Despite stagnant growth and fiscal challenges, France's borrowing costs declined during the second half of 2012 to euro-era lows.

Source : CIA

Company name and address

ARKEMA SA

420, rue d'Estienne-d'Orves

Colombes, 92700

France



Tel:	33-1-49008080
Fax:	33-1-49008396

www.arkema.com

Employees:

14,000

Company Type:

Public Subsidiary

Corporate Family:

106 Companies

Ultimate Parent:

Arkema

Traded:

Euronext Paris:	AKE
Over The Counter:	ARKAY

Incorporation Date:

31-Jan-2003

Auditor:

Ernst & Young Audit

Financials in:	USD (In Millions)
Fiscal Year End:	31-Dec-2012
Reporting Currency:	Euro
Annual Sales:	8,217.3 ¹
Net Income:	282.7
Total Assets:	7,323.6 ²
Market Value:	7,057.1
	(27-Sep-2013)

Business Description

Arkema SA is a France-based company which specializes in the manufacture and marketing of chemical products. The Company operates through its two business segments: Industrial Chemicals and Performance Products. The Industrial Chemicals division offers the production of acrylics, polymethyl methacrylate (PMMA), hydrogen peroxide, fluorochemicals and thiochemicals, and includes such brands as Forane, Albone, Norsocryl, Altuglas and Sarbio. The Performance Products include the production of technical polymers, specialty chemicals and functional additives. The Company's products are used in the construction, automotive and transportation, health, electrical and electronics, agricultural and packaging industries, among others. In April 2013, it acquired a majority stake in AEC Polymers. For the six months ended 30 June 2013, Arkema SA revenues decreased 4% to EUR3.19B. Net income before extraordinary items decreased 67% to EUR82M. Revenues reflect a decrease in demand for the Company's products and services due to unfavorable market conditions. Net income also reflects Corporate segment loss increase from EUR13M to EUR164M. Basic Earnings per Share excluding Extraordinary Items decreased from EUR4.07 to EUR1.30.

Industry

Industry	Synthetic Chemical Manufacturing
ANZSIC 2006:	1821 - Synthetic Resin and Synthetic Rubber Manufacturing
ISIC Rev 4:	2013 - Manufacture of plastics and synthetic rubber in primary forms
NACE Rev 2:	2016 - Manufacture of plastics in primary forms
NAICS 2012:	325211 - Plastics Material and Resin Manufacturing
UK SIC 2007:	2016 - Manufacture of plastics in primary forms
US SIC 1987:	2821 - Plastics Materials, Synthetic Resins, and Nonvulcanizable Elastomers

Key Executives

Name	Title
Thierry Le Henaff	Chairman of the Board, Chief Executive Officer, Member of the Executive Committee
Thierry Lemonnier	Executive Vice President and Chief Financial Officer, Member of the Executive Committee
Bernard Boyer	Executive Vice President - Strategy, Member of the Executive Committee
Pierre Chanoine	Executive Vice President - High Performance Materials Business Segment and Fluorochemicals and Hydrogen Peroxide Activities, Member of the Executive Committee
Michel Delaborde	Executive Vice President - Human Resources and Communication, Member of the Executive Committee

Significant Developments

Topic	#*	Most Recent Headline	Date
Corporate Litigation	1	Arkema SA Sued by Klesch Group over Vinyl Unit Sale-Reuters	4-Mar-2013
Mergers & Acquisitions	1	Arkema SA Acquires Majority Stake in AEC Polymers	3-Apr-2013
Strategic Combinations	2	Arkema SA Sign Joint Venture Agreement with Watan Industrial Investment for Construction of Organic Peroxide Production Site on Al Jubail Platform	30-Sep-2013
General Products	2	Arkema SA Announces Worldwide Expansion of Its Bis-peroxide Capacity	18-Jun-2013
Other Earnings Pre-Announcement	4	Arkema SA Issues H2 2013, Q3 2013 and Q4 2013 EBITDA Guidance in Line with Analysts' Estimates; Confirms FY 2016 Revenue and EBITDA Margin Guidance	1-Aug-2013

* number of significant developments within the last 12 months

News

Title	Date
New Market Research Report: Schneider Electric SA - Mergers & Acquisitions (M&A), Partnerships & Alliances and Investment Report SBWire (579 Words)	16-Oct-2013
Now Available: Pernod Ricard SA - Mergers & Acquisitions (M&A), Partnerships & Alliances and Investment Report SBWire (579 Words)	16-Oct-2013
Vivalis SA - Mergers & Acquisitions (M&A), Partnerships & Alliances and Investment Report - New Market Study Published SBWire (572 Words)	16-Oct-2013
Indonesia: Malaysia's biotech industry hits total revenue of US$1.1b World News Connection (842 Words)	16-Oct-2013
Roseland emerges from bankruptcy Richmond Times-Dispatch (VA) (734 Words)	16-Oct-2013
Roseland emerges from bankruptcy protection Richmond Times-Dispatch (VA) (734 Words)	16-Oct-2013

Financial Summary

As of 30-Jun-2013

Key Ratios	Company	Industry
Current Ratio (MRQ)	1.73	2.18
Quick Ratio (MRQ)	1.06	1.35
Debt to Equity (MRQ)	0.64	0.82
Sales 5 Year Growth	2.42	6.26
Net Profit Margin (TTM) %	4.02	10.56
Return on Assets (TTM) %	4.36	8.26
Return on Equity (TTM) %	11.12	22.07

Stock Snapshot

Traded: Euronext Paris: AKE

As of 27-Sep-2013

Financials in: EUR

Recent Price	83.39	EPS	6.96
52 Week High	87.77	Price/Sales	0.82
52 Week Low	63.55	Dividend Rate	1.80
Avg. Volume (mil)	0.21	Price/Earnings	17.61
Market Value (mil)	5,235.56	Price/Book	2.29
		Beta	1.63

	Price % Change	Rel S&P 500%
4 Week	9.05%	2.46%
13 Week	18.23%	5.58%
52 Week	13.01%	-7.16%
Year to Date	5.28%	-8.44%

Registered No.(FRA) :319632790

1 - Profit & Loss Item Exchange Rate: USD 1 = EUR 0.7782366
2 - Balance Sheet Item Exchange Rate: USD 1 = EUR 0.7566

Corporate Overview

Location
420, rue d'Estienne-d'Orves
Colombes, 92700
France

Tel:	33-1-49008080
Fax:	33-1-49008396

www.arkema.com

Quote Symbol - Exchange
AKE - Euronext Paris

Sales EUR(mil):	6,395.0
Assets EUR(mil):	5,541.0
Employees:	14,000
Fiscal Year End:	31-Dec-2012

Industry:

Chemicals - Plastics and Rubber

Incorporation Date:	31-Jan-2003
Company Type:	Public Subsidiary
Quoted Status:	Quoted
Registered No.(FRA):	319632790


Chairman of the Board, Chief Executive Officer, Member of the Executive Committee:	Thierry Le Henaff

Industry Codes

ANZSIC 2006 Codes:
1821	-	Synthetic Resin and Synthetic Rubber Manufacturing
1812	-	Basic Organic Chemical Manufacturing

ISIC Rev 4 Codes:
2013	-	Manufacture of plastics and synthetic rubber in primary forms
2011	-	Manufacture of basic chemicals

NACE Rev 2 Codes:
2016	-	Manufacture of plastics in primary forms
2014	-	Manufacture of other organic basic chemicals

NAICS 2012 Codes:
325211	-	Plastics Material and Resin Manufacturing
325199	-	All Other Basic Organic Chemical Manufacturing

US SIC 1987:
2821	-	Plastics Materials, Synthetic Resins, and Nonvulcanizable Elastomers
2869	-	Industrial Organic Chemicals, Not Elsewhere Classified

UK SIC 2007:
2016	-	Manufacture of plastics in primary forms
2014	-	Manufacture of other organic basic chemicals

Business Description

Arkema SA (Arkema) is a France-based chemicals company that operates through its three business segments: Vinyl Products, Industrial Chemicals and Performance Products. The Vinyl Products division includes the production of chlorochemicals, polyvinyl chloride (PVC) and vinyl compounds, as well as downstream converting. The Industrial Chemicals division includes the production of acrylics, polymethylmethacrylate (PMMA), hydrogen peroxide, fluorochemicals and thiochemicals. The Performance Products division includes the production of technical polymers, specialty chemicals, organic products, additives and agrochemicals. The Companyâ€™s products are used in the construction, transport, health, electrical, agricultural and pharmaceutical industries, among others. Arkema operates 120 facilities and over 80 production plants throughout Europe, North America and Asia. In December 2007, the Company's coagulant business for water treatment was acquired by Kemira Chimie S.A. in France, and Kemira Iberica SA in Spain. The acquired Arkema's coagulant business includes three production units located in France and Spain. In August 2009, Arkema announced that it has acquired a monomere acrylic production site in Clear Lake (Texas) and latex acrylic activities (UCAR Emulsion Systems) from The Dow Chemical Company. In January 2010, the Company completed the acquisition of the acrylic acid and esters business, and the UCAR Emulsion Systems specialty latex business of The Dow Chemical Company. In October 2010, the Company acquired PIEZOTECH.

Vinyl Products

Vinyl Products consists of four business units: Chlorine/Caustic Soda, PVC, Vinyl Compounds, and Pipes and Profiles (Alphacan). Its integrated activities range from brine electrolysis to PVC processing and encompass the manufacture of chlorine and caustic soda, vinyl chloride monomer (VCM), chloromethane, chlorine derivatives, PVC and vinyl compounds, as well as the downstream processing of pipes and profiles.

The Chlorine/Caustic Soda business unit encompasses membrane cell, diaphragm cell and mercury cell electrolysis processes and the products immediately downstream, including VCM, chloromethane and chlorine derivatives. The PVC business unit produces general purpose and specialty PVCs. Some of the Companyâ€™s PVC production is earmarked for captive use by Alphacan and the Vinyl Compounds business unit. The Vinyl Compounds business unit manufactures and markets an array of ready-to-use products, made by blending PVC and various additives, including plasticizers, stabilizers and dyes. The PVC and some of the additives are sourced from Arkema plants. The Pipes and Profiles business unit specializes in PVC extrusions and consists of a group of subsidiaries under the Alphacan banner.

Industrial Chemicals

Industrial Chemicals encompasses five business units that produce intermediates: Acrylics, PMMA and Methacrylics, Thiochemicals, Fluorochemicals and Hydrogen Peroxide. Arkema has production units in Europe and North America for most of its major products, such as acrylic acid, methyl methacrylate, PMMA, fluorochemicals, hydrogen peroxide and sulfur derivatives. The Company also has operations in Asia, including local production facilities for fluorochemicals, hydrogen peroxide and PMMA.

The main Acrylics products are acrylic acid and its derivatives, especially acrylic esters and superabsorbents, oxo alcohol, phthalic anhydride and dioctyl phthalate. The main markets for these products are coatings, plastic additives, water treatment, paper and adhesives. The PMMA business unit spans methyl methacrylate through PMMA production. Altuglas International has operations worldwide and two brands, Plexiglas in North America and South America and Altuglas in the rest of the world. Its main products include PMMA granules and cast or extruded sheets, which have applications in a variety of markets, including the construction, automotive, plumbing, store sign, electronics and home appliance industries.

In addition to sulfur chemicals, Thiochemicals makes other product lines, such as amines, oxygenated solvents and rubber additives, which are produced by MLPC International, an Arkema subsidiary. Its primary markets are animal feed, polymers, pharmaceuticals, cosmetics, natural gas odorants, solvents and petrochemicals. Thiochemicals has production facilities in Europe and the United States. Fluorochemicals produces and markets a range of hydrochlorofluorocarbons (HCFC) and hydrofluorocarbons (HFC) under the Forane brand. These products are usually used in refrigeration and foam applications. They are also the monomers for the manufacture of polytetrafluoroethylene (PTFE) and polyvinylidene fluoride (PVDF). The Hydrogen Peroxide business unit comprises three product lines: hydrogen peroxide, chlorate and sodium perchlorate, and hydrazine hydrate and its derivatives. Hydrogen peroxide is primarily used in the pulp, chemical (including organic peroxides), textile and electronics industries.

Performance Products

Performance Products comprises three business units: Technical Polymers, Specialty Chemicals (CECA) and Functional Additives. Technical Polymers comprises three main product lines: specialty polyamides, PVDF and functional polyolefins, which are marketed under brands, such as Rilsan, Orgasol, Pebax, Kynar, Lotryl, Lotader and Orevac. The Specialty Chemicals subsidiary, CECA, is organized around two segments. Based mainly on specialty chemicals, surfactants/interface agents are used chiefly in detergents, oil and gas production, asphalt and fertilizers. Adsorption/filtration covers inorganic products, such as Siliporite molecular sieves, diatoms, Acticarbone active carbon and perlite, which are used mainly in the building, agrifood, pharmaceutical and environmental protection segments. The Functional Additives business unit comprises a number of product lines, including Luperox polymerization initiators, PVC additives, coating additives and catalysts.

More Business Descriptions

Holding company with interests in the manufacture of chemicals. The activities are divided into three business segments: the High Performance Materials segment produces specialty polyamides, fluoropolymers and functional additives. The Industrial Specialties segments manufactures thiochemicals, fluorchemicals, PMMAs and hydrogen peroxide. The Coatings Solutions divisions produces acrylics, coating resins, photocure resins and reology additives

Vinyl Products, Industrial Chemicals & Performance Chemicals Mfr

Arkema France is primarily engaged in manufacture of other organic basic chemicals: acyclic hydrocarbons, saturated and unsaturated; cyclic hydrocarbons, saturated and unsaturated; acyclic and cyclic alcohols, including synthetic ethyl alcohol; mono- and polycarboxyclic acids including acetic acid; other oxygen-function compounds including aldehydes, ketones, quinones and dual or poly oxygen-function compounds; nitrogen-function organic compounds including amines; other organic compounds including wood distillation products, etc.; manufacture of charcoal; production of pitch and pitch coke; manufacture of synthetic aromatic products; and distillation of coal tar.

Arkema SA (Arkema) is one of the leading chemical producers. The company manufactures and distributes a wide range of chemical products including chlorochemicals, industrial chemicals and specialty chemicals. The company divides its operations into three business segments, namely, High Performance Materials, Industrial Specialties and Coating Solutions.The High Performance Materials segment includes Technical Polymers, Filtration and Adsorption (CECA) and Organic Peroxides business units. Its technical polymers include specialty polyamides, polyvinylidene fluorides, and polyolefins. The company sells polyamides under the brand names of Hiprolon, Rilsan, Rilsamid and Pebax; and fine powders and polyamide powders under the brand name of Orgasol. Polyamides are used in automotive industry, aeronautics, oil, electronics and consumer goods, and in the manufacture of hot melts. The companyâ€™s subsidiary, CECA, is a leading manufacturer of surfactants, filtration and adsorption agents and functional polymers. These products are used in food and agrochemical industries, construction, oil and gas, electronics, packaging and renewable energies. Arkema is one of the leading producers of organic peroxides, glass coatings, additives for PVC, catalysts for synthesis in fine chemicals, polyester resins and specialty epoxides. The companyâ€™s products are used in various sectors such as transportation, oil extraction, renewable energies including photovoltaics, lithium-ion batteries, and consumer goods such as beauty products, sports equipment, packaging, electronics, construction, coatings and water treatment. In 2012, the company derived 54% sales from its technical polymers business unit, 27% from organic peroxides and 19% from filtration and adsorption. For the fiscal year ended December 2012, the High Performance Materials segment of the company reported revenue of â‚¬2,101m, indicating an increase of 7.63% over revenue in 2011. The segment contributed 33% of the total revenue in 2012. The Industrial Specialties segment includes Thiochemicals, Fluorochemicals, Polymethyl Methacrylate (PMMA) and Hydrogen Peroxide business units. The Thiochemicals business unit offers intermediates for methionine and derivatives, mercaptans, amines, oxygenated solvents, thioglycolic acids, and a wide range of additives for rubber. The flourochemicals unit manufactures refrigerants, blowing agents for foam, solvents and propellants for aerosols under the brand name of Forane. It also sells hydrochlorofluorocarbons (HCFCs), hydrofluorocarbons (HFCs), and hydrochlorocarbons (HCCs). The companyâ€™s subsidiary, Altuglas International, manufactures polymethyl methacrylate also called acrylic glass. Arkema is the third largest producer of hydrogen peroxide in the world. The companyâ€™s products are used in several industrial sectors such as production of cold (refrigeration and air conditioning), oil and gas, paper pulp, animal nutrition, electronics and the automotive industry. In 2012, the company derived 31% sales from PMMA business unit, 29% from fluorochemicals, 28% from thiochemicals and 12% from hydrogen peroxide. For the fiscal year ended December 2012, the Industrial Specialties segment of the company reported revenue of â‚¬2,096m, reflecting a decrease of 0.8% over revenue in 2011. This segment contributed 33% of the total revenue in 2012. The Coating Solutions segment comprises Acrylics, Coatings Resins, Rheology Additives (Coatex) and UV-curing resins (Sartomer) business units. The Acrylics business unit manufactures and sells intermediate products such as acids and esters for the chemical industry. It also supplies cationic monomers for water treatment and plasticizers. It sells acrylic products under the brand name of Norsocryl. The company manufactures a wide range of coatings and adhesives, powder resins, emulsions for architectural, inks and construction markets. The subsidiary of the company, Sartomer, supplies monomers and acrylate, and methacrylate oligomers. The coatex business unit manufactures rheology additives for aqueous phase formulations and processes. This segment provides solutions for decorative paints, industrial coatings, adhesives and high growth acrylic applications such as superabsorbers for disposable nappies, water treatment, and oil and gas extraction. In 2012, the company derived 38% sales from acrylics and coating resins business unit, 15% from sartomers, and 9% from coatex. For the fiscal year ended December 2012, the companyâ€™s Coating Solutions segment reported revenue of â‚¬2,175m, showing an increase of 19.9% over revenue in 2011. This segment contributed 34% of total revenue in 2012. The company has operations in 40 countries with 91 production sites in Europe, North America and Asia. The company has ten research and development (R&D) centers, of which six are in France, two in the US and one each in Japan and China. For the fiscal year ended December 2012, the company R&D expense stood at â‚¬148m, around 2.3% of the total sales. For the fiscal ended year 2012, the company generated 22% revenue from consumer goods, 13% from industrial coatings, 12% from decorative paints, 7% from transportation, 6% from energy and construction, 4% from nutrition, and 3% from electronics. Geographically, the company divides its operations into five regions, namely, France, Rest of Europe, NAFTA (the US, Canada and Mexico), Asia and Rest of the World. For the fiscal year ended 2012, the company generated 34.3% of the total revenue from NAFTA, followed by 29.9% from Rest of Europe, 20.7% from Asia, 10% from France and 5.2% from Rest of the World. In July 2013, the company launched Kepstan, a new range of PEKK (Poly Ether Ketone Ketone) ultra high performance polymers. These new materials expand the companyâ€™s high performance material offerings to high added value markets. In June 2013, the company announced plans to expand bis-peroxide capacity in both its Spinetta (Italy) and Franklin (Virginia) factories. It also started the expansion of acrylic acid capacity at its Texas facility. In May 2013, Arkema launched Rilsan Clear G-170 MED, a fully transparent polyamide used in breathing masks, tubing and other transparent medical components. In April 2013, the company entered into a partnership with Jayant Agro in India and acquired 25% stake in Ihsedu Agrochem, a subsidiary of Jayant Agro, which specialized in the production of castor oil. In the same month, the company acquired majority stake in AEC Polymers, a France-based manufacturer of structural adhesives. AEC Polymers developed a range of methacrylate glues based on Arkema technology, which boast unrivalled mechanical properties. This acquisition illustrates Arkemaâ€™s strategy to expand in high added value specialty chemicals, in particular composite materials and advanced materials.

Arkema SA (Arkema) manufacturers and distributes a wide range of chemical products. The company divides its operation into three segments, namely, High Performance Materials, Industrial Specialties and Coating Solutions. These segments are subdivided into 11 business units, namely, Technical Polymers, Filtration and Adsorption (Ceca), Organic Peroxides, Thiochemicals, Fluorochemicals, PMMA (Altuglas International), Hydrogen Peroxide, Acrylics, Coating Resins, Photocure Resins (Sartomer), and Rheology Additives (Coatex). The companyâ€™s products are used in various sectors such as agriculture, air conditioning, automotive, chemicals, construction, coating, consumer goods, electrical, health, oil, packaging, plastics, pulp, rubber, sports and water treatment, among others. Geographically, the company has operations in Europe, the US, Canada and Mexico, Asia and others. Arkema is headquartered in Colombes, France.The companyâ€™s strategy has been to expand its operations in Asian markets. In February 2012, the company acquired HiPro Polymers and Casda Biomaterials and expanded its presence in China. The company also started the construction of bio-methionine plant and Thiochemicals platform in Asia through partnership with CJ CheilJedang, a South Korean Company.The company reported revenues of (Euro) EUR 6,395.00 million during the fiscal year ended December 2012, an increase of 8.39% over 2011. The operating profit of the company was EUR 651.00 million during the fiscal year 2012, a decrease of 9.21% from 2011. The net profit of the company was EUR 220.00 million during the fiscal year 2012, whereas the company reported a net loss of EUR 19.00 million during 2011.

A global chemical company and Frances 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 more than 40 countries some 13200 employees and 9 research centers Arkema generates annual revenue of 5.9 billion* and holds leadership positions in all its markets with a portfolio of internationally recognized brands. The world is our inspiration.

Chemicals - Diversified (Major)

Brand/Trade Names

Lacovyl(R)

Nakan(R)

Lucobay(R)

Bactivel(R)

Forane(R)

Albone(R)

Norsocryl(R)

Altuglas(R)

Plexiglas(R)

Rilsan(R)

Luperox(R)

Pebax(R)

Kynar(R)

Orgasol(R)

Evatane(R)

Siliporite

Financial Data

Financials in:	EUR(mil)

Revenue:	6,395.0
Net Income:	220.0
Assets:	5,541.0
Long Term Debt:	1,071.0
Total Liabilities:	3,259.0
Working Capital:	1.0

Date of Financial Data:	31-Dec-2012

1 Year Growth

8.4%

-26.1%

3.9%

Market Data

Quote Symbol:	AKE
Exchange:	Euronext Paris
Currency:	EUR
Stock Price:	83.4
Stock Price Date:	09-27-2013
52 Week Price Change %:	13.0
Market Value (mil):	5,235,559.0

SEDOL:	B0Z5YZ2
ISIN:	FR0010313833

Subsidiaries

Company	Percentage Owned	Country
Arkema (China) Investment Co Ltd	100%	PEOPLE'S REPUBLIC OF CHINA
Arkema Srl	100%	ITALY
Arkema GmbH	100%	GERMANY
Arkema Asie SAS	59.40%	FRANCE
Arkema Afrique	100%	FRANCE
Arkema France SA	100%	FRANCE
Arkema AmÃ©riques SAS	99.46%	FRANCE
Arkema QuÃmica, S.A.	100%	SPAIN
ARKEMA QuÃmica Ltda	100%	BRAZIL
Arkema Pty Limited		AUSTRALIA
Arkema KK	100%	JAPAN
Dorlyl Snc		France
Ceca Sa		France
Mlpc International		France
Altuglas International Sas		France
Vinylfos		France
Soc Etude Realisat Financieres		France
Arkema Co., Ltd.		South Korea
Resil Belgium Nv		Belgium
Arkema France Sa, Frankrike Filial		Sweden
Atofina Mexico, S.A. De C.V.		Mexico
Arkema MÃ©xico, S.A. De C.V.		Mexico
Arkema, S.A. De C.V.		Mexico
Arkema International Sa		Switzerland
Atofina Vietnam Co. Limitted		Vietnam
Pred Arkema France		Russian Federation
Arkema Sdn Bhd		Malaysia
Arkema Delaware Inc.		United States of America
Atofina (Thailand) Co Ltd		Thailand

Shareholders

Major Shareholders

Groupe Bruxelles Lambert (10%); Greenlight Capital, USA (5.5%)

Key Corporate Relationships

Auditor:	Ernst & Young Audit
Bank:	Lcl Le Credit Lyonnais, Societe Generale, Bnp Paribas

Auditor:	Ernst & Young Audit, KPMG Audit, Ernst & Young Audit SAS

Strategic Initiatives

Key Organizational Changes

It also reported a net income of â‚¬116m, or â‚¬1.85 per diluted share, for the third quarter of 2012, compared with the net income of â‚¬205m, or â‚¬3.25 per diluted share, in the year-ago quarter.Third quarter 2012 performance The +2.8% net contribution of acquisitions and divestments (acquisition of Hipro Polymers and Casda Biomaterials and of Seppicâ€™s alcoxylates) offset the 2.4% decrease in volume resulting from a slowdown in some end-markets in September 2012 (automotive and construction in Europe, photovoltaics). The 4.5% sales price decrease primarily concerns, as expected, acrylic acid and fluorogases. The currency translation effect was positive at +5.3%, reflecting the strengthening of the US dollar versus the euro. In a less favorable and more volatile economic environment, EBITDA stood at â‚¬266m, at the same level as in the third quarter 2011, demonstrating the strength of the groupâ€™s results.

Partnerships
This collaboration is the logical continuation of our dedication to the ongoing development of lithium-ion batteries."Nov 08, 2012Arkema Reports Revenue Of â‚¬1.6 Billion In Q3 2012Arkema SA (Arkema) reported revenue of â‚¬1.61 billion for the third quarter of 2012, compared with the revenue of â‚¬1.58 billion in the year-ago quarter. It also reported a net income of â‚¬116m, or â‚¬1.85 per diluted share, for the third quarter of 2012, compared with the net income of â‚¬205m, or â‚¬3.25 per diluted share, in the year-ago quarter.Third quarter 2012 performance The +2.8% net contribution of acquisitions and divestments (acquisition of Hipro Polymers and Casda Biomaterials and of Seppicâ€™s alcoxylates) offset the 2.4% decrease in volume resulting from a slowdown in some end-markets in September 2012 (automotive and construction in Europe, photovoltaics). The 4.5% sales price decrease primarily concerns, as expected, acrylic acid and fluorogases.
Jan 08, 2013Oxis Energy And Arkema Partner For Next Generation Battery Technology DevelopmentOxis Energy Limited and Arkema SA signed a joint development agreement to further improve the performance of polymer lithium sulfur cells battery. The companies have identified several areas where key enhancements could be made, both in terms of both power delivered and reliability of polymer lithium sulfur electro-chemical technology.The parties have agreed that Arkema will provide access to different specialty materials like carbon nanotubes, electrolyte and advanced technical polymers that could be tested by Oxis Energy for use in developing and extending its technology. The collaboration's aim is to optimize two aspects: the conductivity increase of the electrolyte that should improve energy density, and reinforcement of mechanical resistance of some components in order to extend the lifetime and safety of the battery. Huw Hampson-Jones, CEO of Oxis Energy, said, "This is a significant step forward for Oxis Energy. The use of 'designer' compounds, currently undergoing development by Arkema, could have remarkable results in improving the power available for use in polymer lithium sulfur battery systems and their longevity in battery life cycles.
These improvements would have a significant impact in powering electric vehicles safely and over much longer distances than the current lithium-ion battery technology." Christian Collette, Arkema's R&D vice president, said, "This agreement with Oxis Energy, a recognized expert in polymer lithium sulfur cells battery, fully illustrates the commitment of Arkemaâ€™s R&D for the improvement and expansion of new alternative energies. This collaboration is the logical continuation of our dedication to the ongoing development of lithium-ion batteries."Nov 08, 2012Arkema Reports Revenue Of â‚¬1.6 Billion In Q3 2012Arkema SA (Arkema) reported revenue of â‚¬1.61 billion for the third quarter of 2012, compared with the revenue of â‚¬1.58 billion in the year-ago quarter. It also reported a net income of â‚¬116m, or â‚¬1.85 per diluted share, for the third quarter of 2012, compared with the net income of â‚¬205m, or â‚¬3.25 per diluted share, in the year-ago quarter.Third quarter 2012 performance The +2.8% net contribution of acquisitions and divestments (acquisition of Hipro Polymers and Casda Biomaterials and of Seppicâ€™s alcoxylates) offset the 2.4% decrease in volume resulting from a slowdown in some end-markets in September 2012 (automotive and construction in
Resource Management
In addition, as part of this divestment, Arkema has set up some warranties to third parties for certain contracts transferred. These warranties, which are covered by a collateral and by a clause for indemnification by Klesch Chemicals Ltd, represent a maximum net amount of â‚¬60MM. Taking into account the groupâ€™s confidence in its mid-term prospects and in the strength of its balance sheet, and willing to continue to share with its shareholders the success of its targeted growth strategy, the board of directors has decided to increase the dividend proposed to the next shareholders general meeting, raising it to â‚¬1.80 per share from â‚¬1.30 in 2011. This decision is consistent with the new dividend policy announced by the group at the Investor Day held in September 2012, and its intention to significantly increase its dividend for 2012. The shares will be quoted ex-dividend from June 6, 2013 and the dividend will be paid as from June 11, 2013.
Sales and Distribution
In the first quarter of 2013, Arkema generated -â‚¬100 MM free cash flow which reflects the traditional seasonality of working capital related to the strong increase in sales compared to the end of 2012 and which includes capex totaling â‚¬75 MM consistent with the annual target of â‚¬500 MM. Net debt stood at â‚¬1,009 MM at March 31, 2013 against â‚¬900 MM at December 31, 2012, i.e. 43.5% gearing. Highlights Since January 1, 2013, Arkema completed two acquisitions in line with its strategy in High Performance Materials: â€¢ Securing access to its strategic raw materials: On April 11, 2013, Arkema signed an agreement with Indian company Jayant Agro, one of the worldâ€™s leading producers of castor oil and derivatives with a view to acquiring a stake of some 25% in Ihsedu Agrochem, one of its subsidiaries which specializes in the production of castor oil. This joint venture aims to develop castor oil production and will provide Arkema with long-term secure and competitive access to this strategic raw material for the manufacture of its biosourced polyamides (PA 10 and PA 11). The project should be finalized in the third quarter of 2013; â€¢ Speeding up development through innovation: On April 3, 2013, Arkema announced its purchase of a majority stake in AEC Polymers, which produces in particular methacrylate structural adhesives based on a technology developed by Arkema.Mar 01, 2013Arkema Announces Price Increase Of Evatane EVAArkema SA announced a price increase of â‚¬100/MT for its whole Evatane EVA (high content ethylene vinyl acetate copolymer) range starting March 1

Corporate Family

Corporate Structure News:

Total Corporate Family Members: 106

Company Name	Company Type	Location	Country	Industry	Sales (USD mil)	Employees
Arkema	Parent	Colombes	France	Rubber and Plastic Product Manufacturing	18.0	7
Arkema SA	Subsidiary	Colombes	France	Synthetic Chemical Manufacturing	8,217.3	14,000
Arkema France SA	Subsidiary	Colombes	France	Basic Chemical Manufacturing	5,121.0	6,300
Arkema Inc.	Subsidiary	Philadelphia, PA	United States	Miscellaneous Chemical Manufacturing	1,500.0	2,400
Arkema Coating Resins	Unit	Cary, NC	United States	Miscellaneous Chemical Manufacturing		1,650
Arkema Coating Resins - Torrance Plant	Facility	Torrance, CA	United States	Miscellaneous Chemical Manufacturing		60
Arkema Coating Resins	Branch	Hahnville, LA	United States	Synthetic Chemical Manufacturing	230.8	47
Arkema Coating Resins - Alsip	Facility	Alsip, IL	United States	Miscellaneous Chemical Manufacturing	48.9	40
Arkema Coating Resins	Branch	Grand Rapids, MI	United States	Synthetic Chemical Manufacturing	35.7	25
Arkema Coating Resins	Branch	Torrance, CA	United States	Synthetic Chemical Manufacturing	8.4	7
Arkema Research Center	Unit	King of Prussia, PA	United States	Research and Development Services		600
Arkema	Branch	Calvert City, KY	United States	Miscellaneous Chemical Manufacturing	99.2	268
Arkema	Branch	Axis, AL	United States	Miscellaneous Chemical Manufacturing	189.8	200
Sartomer USA, LLC	Subsidiary	Exton, PA	United States	Miscellaneous Chemical Manufacturing	125.0	150
Sartomer USA, LLC	Branch	Chatham, VA	United States	Miscellaneous Chemical Manufacturing	59.1	100
Sartomer USA, LLC	Branch	West Chester, PA	United States	Miscellaneous Chemical Manufacturing	127.9	90
Cray Valley USA, LLC	Branch	Grand Junction, CO	United States	Basic Chemical Manufacturing		31
Cray Valley USA, LLC	Branch	Stratford, CT	United States	Basic Chemical Manufacturing	12.6	23
Sartomer Asia Limited	Subsidiary	Quarry Bay	Hong Kong	Miscellaneous Chemical Manufacturing
Arkema	Branch	Pasadena, TX	United States	Miscellaneous Chemical Manufacturing	212.6	140
Arkema	Branch	Seabrook, TX	United States	Miscellaneous Chemical Manufacturing	212.6	140
Arkema	Branch	Louisville, KY	United States	Miscellaneous Chemical Manufacturing	154.3	140
Arkema	Branch	Cary, NC	United States	Miscellaneous Chemical Manufacturing	130.2	140
Arkema	Branch	Southgate, MI	United States	Miscellaneous Chemical Manufacturing	129.0	140
Arkema	Branch	Chicago, IL	United States	Miscellaneous Chemical Manufacturing	124.3	140
Arkema	Branch	Kansas City, MO	United States	Miscellaneous Chemical Manufacturing	120.2	140
Arkema	Branch	Willow Grove, PA	United States	Miscellaneous Chemical Manufacturing	115.5	140
Arkema	Branch	Saukville, WI	United States	Miscellaneous Chemical Manufacturing	107.4	140
Arkema	Branch	Chatham, VA	United States	Miscellaneous Chemical Manufacturing	106.6	140
Arkema	Branch	Bristol, PA	United States	Miscellaneous Chemical Manufacturing	89.9	109
Arkema	Branch	Piffard, NY	United States	Miscellaneous Chemical Manufacturing	66.9	96
Arkema	Branch	Beaumont, TX	United States	Miscellaneous Chemical Manufacturing	136.7	90
Arkema	Branch	Crosby, TX	United States	Miscellaneous Chemical Manufacturing	121.5	80
Arkema	Branch	Memphis, TN	United States	Miscellaneous Chemical Manufacturing	52.2	60
Arkema Canada Inc	Subsidiary	Burlington, ON	Canada	Basic Chemical Manufacturing		60
Arkema Canada Inc.	Division	Becancour, QC	Canada	Basic Chemical Manufacturing		65
Arkema Canada Inc	Branch	Burlington, ON	Canada	Chemical Wholesale	11.9	9
Arkema	Branch	Houston, TX	United States	Miscellaneous Chemical Manufacturing	83.5	55
Arkema	Branch	Birdsboro, PA	United States	Miscellaneous Chemical Manufacturing	42.1	51
Arkema	Branch	Blooming Prairie, MN	United States	Miscellaneous Chemical Manufacturing	36.1	50
Arkema	Branch	Kensington, CT	United States	Miscellaneous Chemical Manufacturing	35.0	50
Coatex Inc.	Subsidiary	Chester, SC	United States	Basic Chemical Manufacturing	26.6	41
ODOR-TECH LLC	Subsidiary	Pineville, LA	United States	Natural Gas Distribution		20
Delaware Chemicals Corporation	Subsidiary	Wilmington, DE	United States	Miscellaneous Chemical Manufacturing	17.9	5
Arkema	Branch	Milford, MI	United States	Synthetic Chemical Manufacturing	1.4	1
Arkema	Branch	Wetmore, CO	United States	Miscellaneous Chemical Manufacturing	0.8	1
Viking chemical company	Subsidiary	Blooming Prairie, MN	United States	Basic Chemical Manufacturing
Arkema GmbH	Subsidiary	DÃ¼sseldorf	Germany	Basic Chemical Manufacturing	264.2	630
CECA SA	Subsidiary	La Garenne Colombes	France	Synthetic Chemical Manufacturing	394.3	628
Ceca Italiana S.p.A	Subsidiary	Pioltello, MI	Italy	Basic Chemical Manufacturing	38.1	62
Febex S.A.	Subsidiary	Bex	Switzerland	Miscellaneous Chemical Manufacturing	17.1	45
Altuglas International SA	Subsidiary	La Garenne-Colombes	France	Synthetic Chemical Manufacturing	114.1	267
Sunclear	Subsidiary	Marcq En Baroeul	France	Construction and Hardware Materials Wholesale	190.7	254
MLPC International SA	Subsidiary	Rion des Landes	France	Basic Chemical Manufacturing	76.5	224
Arkema Quimica S.A	Subsidiary	Madrid	Spain	Synthetic Chemical Manufacturing	213.8	167
ARKEMA QuÃmica Ltda	Subsidiary	SÃ£o Paulo, SP	Brazil	Basic Chemical Manufacturing		96
Altuglas International Denmark A/S	Subsidiary	Bronderslev	Denmark	Rubber and Plastic Product Manufacturing	0.0	81
Arkema Pte. Ltd.	Subsidiary	Singapore	Singapore	Basic Chemical Manufacturing	106.9	60
Shanghai Arkema Gaoyuan Chemicals Co. Ltd	Subsidiary	Shanghai	China	Basic Chemical Manufacturing		60
Dorlyl SNC	Subsidiary	Colombes	France	Synthetic Chemical Manufacturing		50
Rionil Compostos Vinilcos Ltda	Subsidiary	Rio de Janeiro	Brazil	Synthetic Chemical Manufacturing	11.6	28
Changshu Coatex Additives Co. Ltd	Subsidiary	Changshu, Jiangsu	China	Basic Chemical Manufacturing		40
Arkema B.V.	Subsidiary	Amsterdam	Netherlands	Chemical Wholesale		20
Arkema Vlissingen B.V.	Subsidiary	Vlissingen	Netherlands	Synthetic Chemical Manufacturing		160
Sunclear Srl	Subsidiary	Casorezzo, Milan	Italy	Chemical Wholesale	15.5	16
Arkema Pty. Ltd.	Subsidiary	Richmond, VIC	Australia	Chemical Wholesale		15
Arkema Sdn Bhd	Subsidiary	Subang Jaya, Selangor	Malaysia	Chemical Wholesale	0.6	10
Oxford Performance Materials	Subsidiary	South Windsor, CT	United States	Rubber and Plastic Product Manufacturing	1.8	8
Resil Belgium Nv	Subsidiary	Wetteren, Oost-Vlaanderen	Belgium	Chemical Wholesale	0.3	1
Arkema KK	Subsidiary	Tokyo	Japan	Chemical Wholesale	180.0
Akishima Chemical Industries Co. Ltd	Subsidiary	Tokyo	Japan	Chemical Wholesale	15.2
Arkema Co., Ltd.	Subsidiary	Seoul, Seoul	Korea, Republic of	Miscellaneous Chemical Manufacturing	104.6
Arkema Pty Limited	Subsidiary	Canterbury, VIC	Australia	Chemical Wholesale	22.0
Arkema (China) Investment Co Ltd	Subsidiary	Beijing	China	Basic Chemical Manufacturing
ARKEMA (Changshu) Fluorochemical Co. Ltd	Subsidiary	Changshu	China	Basic Chemical Manufacturing
Arkema Shanghai Distribution Co. Ltd	Subsidiary	Shanghai	China	Chemical Wholesale
Arkema Co. Ltd	Subsidiary	Kowloon	Hong Kong	Chemical Wholesale
SEKI Arkema Co Ltd	Subsidiary	Gyenae	Korea, Republic of	Basic Chemical Manufacturing
Luperox Iniciadores SA de CV	Subsidiary	Veracruz	Mexico	Miscellaneous Chemical Manufacturing
Arkema sp Z.o.o	Subsidiary	Inowroclaw	Poland	Chemical Wholesale
Arkema Beijing Chemicals Co. Ltd	Subsidiary	Beijing	China	Basic Chemical Manufacturing
Arkema Changshu Chemicals Co. Ltd	Subsidiary	Changshu	China	Basic Chemical Manufacturing
Altuglas International S.A.S.	Subsidiary	La Garenne-Colombes	France	Rubber and Plastic Product Manufacturing
Altuglas International	Subsidiary	Seoul	Korea, Republic of	Rubber and Plastic Product Manufacturing		10
Altuglas International	Subsidiary	Bristol, PA	United States	Rubber and Plastic Product Manufacturing
Maquiladora General de Matamoros S.A. de C.V	Subsidiary	Matamoros	Mexico	Rubber and Plastic Product Manufacturing		150
Altuglas International	Unit	Louisville, KY	United States	Rubber and Plastic Product Manufacturing		72
Coatex Central Eastern Europe s.r.o.	Subsidiary	Bratislava	Slovakia	Basic Chemical Manufacturing
Arkema Iniciadores SA de CV	Subsidiary	Tlalnepantla	Mexico	Miscellaneous Chemical Manufacturing
Arkema Mexico SA de CV	Subsidiary	Tlalnepantla	Mexico	Chemical Wholesale
Coatex SAS	Subsidiary	Genay	France	Miscellaneous Chemical Manufacturing	158.0	251
Coatex Netherlands BV	Subsidiary	Moerdijk	Netherlands	Chemical Wholesale	66.8	20
Coatex Cee S.R.O.	Subsidiary	Bratislava	Slovakia	Synthetic Chemical Manufacturing		5
Arkema Quimica Ltda	Subsidiary	Rio Claro, Sao Paulo	Brazil	Synthetic Chemical Manufacturing		50
Arkema Group	Subsidiary	Richmond, VIC	Australia	Chemical Wholesale	4.1	25
Adhesifs Et Composites Polymers	Subsidiary	Le Barp	France	Paint, Coating, and Adhesive Manufacturing	3.7	19
Arkema Magyarorszag Kereskedelmi Korlatolt Felelossegu Tarsasag	Subsidiary	Budapest	Hungary	Chemical Wholesale	0.7	6
ARKEMA EUROPE SA	Subsidiary	Colombes, Cedex	France	Basic Chemical Manufacturing
Arkema Srl	Subsidiary	Rho, MI	Italy	Miscellaneous Chemical Manufacturing	314.5	513
ARKEMA NORTH EUROPE BV	Subsidiary	Rotterdam	Netherlands	Chemical Wholesale	2.9	160
Arkema Rotterdam BV	Subsidiary	Rotterdam	Netherlands	Miscellaneous Chemical Manufacturing	19.9	50
Arkema Ltd.	Subsidiary	Rochester	United Kingdom	Basic Chemical Manufacturing	6.4	25
Arkema Coatings Resins Ltd.	Subsidiary	Grimsby	United Kingdom	Paint, Coating, and Adhesive Manufacturing	67.1	91
ARKEMA Gmbh	Subsidiary	DÃ¼sseldorf, Nordrhein-Westfalen	Germany	Miscellaneous Chemical Manufacturing	320.9	40
Arkema S.R.O.	Subsidiary	Praha 2	Czech Republic	Miscellaneous Wholesale	1.2	3
Arkema Kimya Sanayi Ve Ticaret Anonim Sirketi	Subsidiary	Istanbul (Europe)	Turkey	Basic Chemical Manufacturing

Competitors Report

CompanyName	Location	Employees	Ownership
Akzo Nobel N.V.	Amsterdam, Netherlands	55,590	Public
BASF SE	Ludwigshafen Am Rhein, Germany	111,614	Public
Clariant International AG	Muttenz, Switzerland	21,202	Public
Cytec Industries Inc	Woodland Park, New Jersey, United States	6,600	Public
Lanxess AG	Leverkusen, Germany	17,381	Public
NIPPON SHOKUBAI CO., LTD.	Osaka-Shi, Japan	3,938	Public
Solvay S.A.	Bruxelles, Belgium	29,000	Public
The Dow Chemical Company	Midland, Michigan, United States	52,714	Public

Executives Report

Board of Directors

Name

Title

Function

Thierry Le Henaff

Chairman of the Board, Chief Executive Officer, Member of the Executive Committee

Chairman

Biography:

Mr. Thierry Le Henaff has been the Chairman of the Board, Chief Executive Officer and Member of the Executive Committee of Arkema SA since March 6, 2006. He holds a degree from Ecole Polytechnique and Ecole Nationale des Ponts et Chaussees and a Masters in industrial management from Stanford University. After he began his career at Peat Marwick Consultants he moved to Bostik, the adhesives division at Total, in 1992. He held several positions of operational responsibility in France and abroad. In July 2001, he became Chief Executive Officer of Bostik Findely, a new entity created through the merger of the adhesives activities of Total and Elf Atochem. On January 1, 2003, he joined the Management Committee of Atofina, within which he supervised three business units (Agrochemicals, Fertilizers and Thiochemicals) and three functional divisions. He was Chairman and Managing Director of Arkema France, Managing Director of Grande Paroisse, Director of Cray Valley, Bostik Findley S.A. and Cerexagri Inc. He has served as Chairman of the Board of Directors of Arkema France since April 18, 2006, in which he was Chairman and Chief Executive Officer since 2004. He is also a Director of Eramet.

Age: 50

Education:

Stanford University, M (Industrial Management)
Ecole Nationale Polytechnique
Ecole Nationale des Ponts et Chaussees

Compensation/Salary:750,000

Compensation Currency: EUR

Luc Benoit-Cattin

Executive Vice President Industry, Member of the Executive Committee

Director/Board Member

Biography:

Mr. Luc Benoit-Cattin has served as Executive Vice President Industry and Member of the Executive Committee at Arkema SA as of July 1, 2011. He is a graduate of Ecole Polytechnique and Ecole des Mines in Paris. Between 1988 and 1995 he held a number of positions in administration at the French Ministry for Economy, Finance and Industry. From 1995 to 1997 he was Technical Adviser to the Minister for Industry. In 1997 he joined the Pechiney Group as Plant Manager and later on Head of a business unit for rolling and aluminium. In 2002 he joined CGG Veritas, where he was successively Director of Resources and Operating Performance, Director of Offshore, and, from 2009, Managing Director of Geophysical Services and a Member of the Executive Committee.

Age: 50

Education:

Ecole Polytechnique
Ecole des Mines de Paris

Bernard Boyer

Executive Vice President - Strategy, Member of the Executive Committee

Director/Board Member

Biography:

Mr. Bernard Boyer has been the Executive Vice President of Strategy and a Member of the Executive Committee of Arkema SA since 2006. He is also the Secretary of the Company's Strategy Committee. He has a degree from Ecole Polytechnique and Ecole Nationale Superieure des Petroles et Moteurs. He has spent his career working in the chemicals industry in operational positions, starting out in a factory then moving to Elf Atochem's head office (Finance & Strategy), from 1992 to 1998. In 1998, he joined Elf Atochem's Adhesives affi liate as Executive Vice-President. He was appointed Atofinaâ€™s Director of Acquisitions and Divestitures in 2000, then Director of Economy, Planning and Strategy, Acquisitions and Divestitures at the end of 2003.

Age: 53

Education:

Ecole Nationale Superieure des Petroles et des Moteurs (ENSPM)
Ecole Polytechnique

Patrice Breant

Director - Shareholder Employees Representative

Director/Board Member

Biography:

Mr. Patrice Breant has been the Shareholder Employees Representative on the Board of Directors of Arkema SA since June 1, 2010. He is an Engineer in Experimental Methodology and in Statistical Process Control. He serves as a member of the Supervisory Board of the Arkema Actionnariat France Mutual Investment Fund (Fonds Commun de Placement d'Entreprise â€“FCPE). He is a graduate of the Rouen Institut National Superieur de la Chimie Industrielle (since renamed as Institut national des sciences appliquees (INSA) de Rouen), and holds a Doctorate in Organic Chemical Engineering. He began his career within the Group in 1983 at the CDF Chimie, later Orkem, Nord Research Center as Polyethylene Formulation and Modification Research Engineer. In 1990 he joined the Cerdato R&D Center in Serquigny, and later the Technical Polymers Division within the Materials Study Laboratory. He has been a member of the Serquigny works council and of the central works council since 1994. He was also rapporteur to the research commission of Arkema France's central works council from 1994 to 2007. He has also been a member of Arkema's European works council, union representative for Arkema's Serquigny site, and CFE-CGC central trade union representative for Arkema France since 2004.

Age: 59

Education:

Institut National des Sciences Appliquees de Rouen (INSA de Rouen)

Pierre Chanoine

Executive Vice President - High Performance Materials Business Segment and Fluorochemicals and Hydrogen Peroxide Activities, Member of the Executive Committee

Director/Board Member

Biography:

Mr. Pierre Chanoine is Executive Vice President in charge of the High Performance Materials Business Segment and Fluorochemicals and Hydrogen Peroxide Activities of Arkema SA and has been a Member of the Company's Executive Committee since February 1, 2008. Mr. Chanoine is a graduate of the Ecole Superieure de Commerce in Reims, France, and also holds an MBA from Sherbrooke University, Canada. He started his career in 1974 at Elf Aquitaine. After holding a number of financial positions he joined Texas Gulf in the US in 1989, in charge of commercial development. From 1991 to 2001, he was in charge of Corporate Planning and Strategy and took over the Chlorine/ Caustic Soda business at Elf Atochem. After holding a position in Spain, in 2002 he became Group President in charge of the Urea Formaldehyde Resins Business, and in 2004 he became Group President in charge of this business, and Director of the Fluorogas BU in 2005.

Age: 64

Education:

University of Sherbrooke, MBA
Ecole Superieure de Commerce, Reims

Victoire de Margerie

Independent Director

Director/Board Member

Biography:

Ms. Victoire de Margerie has been an Independent Director of Arkema SA since November 7, 2012 and is also a Member of the Company's Nominating, Compensation and Corporate Governance Committee. She has been Chairman and principal shareholder of Rondol Technology since 2009. She previously held operational posts in industry in Germany, France and the United States within Elf Atochem, Carnaud MetalBox and Pechiney. Between 2002 and 2011, she also taught strategy and management of technology at the Grenoble School of Management. She serves as a Director in a number of listed companies, including Norsk Hydro (aluminium), Eurazeo and Morgan Crucible (advanced materials). Ms. de Margerie is a graduate of the Ecole des Hautes Etudes Commerciales (HEC) in Paris and of the Institut d'Etudes Politiques de Paris in Paris, and she holds a postgraduate degree (DESS) in Private Law from the Universite de Paris 1 Pantheon Sorbonne, and a PhD in Management Science from the Universite de Paris 2 Pantheon Assas. She also holds other mandates, including Director of Eurazeo, Norsk Hydro and Morgan Crucible.

Age: 50

Education:

Universite Paris II Pantheon-Assas, PHD (Management Science)
Universite Paris 1 Pantheon-Sorbonne (Law)
Institut d'Etudes Politiques de Paris

Michel Delaborde

Executive Vice President - Human Resources and Communication, Member of the Executive Committee

Director/Board Member

Biography:

Mr. Michel Delaborde is Executive Vice President of Human Resources and Communication of Arkema SA, and has also been a Member of the Company's Executive Committee since 2006. He is also the Secretary of the Company's Nominating, Compensation and Corporate Governance Committee. He holds a degree in economic sciences from Universite Paris IV Sorbonne. In 1980 he joined Total, where he was in charge of Human Resources in both the head office and refineries. After two years as Head of the Human Resources Department Trading & Middle-East head office, he was in charge of communication for Total in 1996, serving as Director of Communications first for TotalFina, then for TotalFinaElf after the merger in 1999. In 2002 he joined Atofina as Director of Human Resources and Communication and was appointed to the Chemicals Executive Committee of Total.

Age: 57

Education:

Universite Paris-Sorbonne (Paris IV) (Economic Sciences)

Francois Enaud

Independent Director

Director/Board Member

Biography:

Mr. Francois Enaud has been an Independent Director of Arkema SA since May 10, 2006 and is a Member of the Company's Nominating, Compensation and Corporate Governance Committee. He holds a degree from the Ecole Polytechnique and graduated as a civil engineer from the Ecole nationale des Ponts et Chaussees. He has been Chairman and Chief Executive Officer of Steria since 1998. After spending two years with Colas as works engineer (1981-1982), Mr. Enaud joined Steria in 1983, where he held various management positions (Technical and Quality division, Chief Executive Officer of a subsidiary, Transport division and Telecom division), before becoming Chief Executive Officer. He also serves as Executive Manager of Groupe Steria SCA, Chairman of the Board of Directors of Agence Nouvelle des Solidarites Actives (ANSA), Director and Chairman of the Board of Directors of Steria Holding Limited, and Director of Steria UK Limited and Steria Mummert Consulting GmbH.

Age: 54

Education:

Ecole Nationale des Ponts et Chaussees (Civil Engineering)
Ecole Polytechnique

Bernard L. Kasriel

Independent Director

Director/Board Member

Biography:

Mr. Bernard L. Kasriel has been an Independent Director of Arkema SA since May 10, 2006 and is a Member of the Company's Nominating, Compensation and Corporate Governance Committee. He holds a degree from Ecole Polytechnique and a Masters of Business Administration from Harvard Business School and INSEAD. He was a partner of LBO France from September 2006 to September 2011. He joined Lafarge in 1977 as Executive Vice-President (and then Chief Executive Officer) of the health division. He was appointed Executive Vice-President of the Lafarge group and member of its Executive Committee in 1981. After spending two years in the United States as Chairman and Chief Operating Officer of National Gypsum, in 1989 he became Director and Chief Executive Officer, then Vice-Chairman and Chief Executive Officer of Lafarge in 1995. He was Chief Executive Officer of Lafarge from 2003 to end 2005. Before joining Lafarge, Mr. Kasriel had begun his career at the Institut de developpement industriel (1970), before becoming Chief Executive Officer in regional companies (1972), and then joining the Societe Phoceenne de Metallurgie as Executive Vice-President (1975). Mr. Kasriel also serves as a Director of l'Oreal and Nucor (USA) and was a Director of Lafarge until May 2010.

Age: 67

Education:

Harvard Business School, MBA
Ecole Polytechnique
Harvard Business School, MBA

Isabelle Kocher

Board Member

Director/Board Member

Biography:

Isabelle Kocher 42 years old has been Managing Director of Lyonnaise des Eaux since 2007. She graduated from Ecole Normale Superieure and is a Corps des Mines Engineer. Isabelle Kocher was in particular responsible for the post and telecommunications and the defence budgets at the Ministry for Economy Finance and Industry from 1997. From 1999 to 2002 she was Industrial Affairs Adviser to the Prime Minister. She joined the Suez Groups Strategy and Development Department in 2002 as Central Director in charge of performance and organization until 2007.

Education:

Ecole SupÃ©rieure de Commerce de Paris, master's (Media Management)
Ecole Normale SupÃ©rieure
Ecole SupÃ©rieure de Commerce de Paris, master's (Media Management)

Thierry Lemonnier

Executive Vice President and Chief Financial Officer, Member of the Executive Committee

Director/Board Member

Biography:

Mr. Thierry Lemonnier is Executive Vice President and Chief Financial Officer of Arkema SA and has been a Member of the Company's Executive Committee since 2006. He holds a degree from lâ€™Ecole Nationale Superieure de Geologie de Nancy and a Masters from Stanford University. He moved to Total in 1979 as an Economic Engineer in the management of exploration and production. In 1983, he joined Total's Finance and Treasury department. In 1987, he was appointed Head of Downstream Affiliates Operations, and in 1993 became Chief Financial Officer for Refining and Marketing. In 2000, he was appointed Director of Chemical Affiliates Operations. He then joined Totalâ€™s Chemical branch in 2001 and was appointed to the Executive Committee, in charge of finance, controlling and accounting.

Age: 60

Education:

Stanford University, M
Ecole Nationale Superieure de Geologie in Nancy

Laurent Mignon

Independent Director

Director/Board Member

Biography:

Mr. Laurent Mignon has been an Independent Director of Arkema SA since May 10, 2006. He holds a degree from Hautes Etudes Commerciales and the Stanford Executive Program. He has served as Manager of Oddo et Cie since October 2007. He has been Chief Executive Officer of Natixis since May 2009. From September 2007 to May 2009, he was Managing Partner of Oddo et Cie alongside Philippe Oddo, in charge particularly of asset management (Oddo Asset Management), corporate finance (Oddo Corporate Finance), and of overseeing permanent control. Prior to this, he was Managing Director of the AGF Group, Chairman of the Executive Committee, and a member of the International Executive Committee of Allianz from January 2006 to June 2007. He joined AGF in 1997 as Chief Financial Officer, and was appointed member of the Executive Committee in 1998. In 2002, he was appointed to head the investment activities of Banque AGF, of AGF Asset Management, AGF Immobilier, and, in 2003, of the Life and Financial Services sector (asset management, banking, real estate) and of Credit Insurance (Euler Hermes Group). Before joining the AGF Group, for over 10 years he held various positions in the banking business within Indosuez Bank, ranging from trading to investment banking. In 1996 he joined Schroders Bank in London, in charge of mergers and acquisitions of financial institutions in France.

Age: 50

Education:

Hautes Etudes Commerciales
Stanford University (Executive Programs)

Thierry Morin

Independent Director

Director/Board Member

Reuters

Biography:

Mr. Thierry Morin has been an Independent Director of Arkema SA since May 10, 2006 and is the Chairman of the Companyâ€™s Nominating, Compensation and Corporate Governance Committee. He holds an MBA from Universite Paris IX Dauphine. An Officier de l'Ordre National du Merite, and a Chevalier de la Legion d'Honneur et des Arts et des Lettres, he is also Chairman of the Board of Directors of INPI (Institut National de la Propriete Industrielle), and Chairman of Thierry Morin Consulting. Mr. Morin joined the Valeo group in 1989, where he held various positions (business segment financial director, group financial director, and director for purchases and strategy) before becoming Executive Vice-President in 1997, Chief Executive Officer in 2000, Chairman of the Executive Board in 2001, then Chairman and Chief Executive Officer from March 2003 to March 2009. Prior to that, he had been in charge of various functions at Burroughs, Schlumberger and Thomson Consumer Electronics.

Age: 61

Education:

Universite Paris IX Dauphine, MBA

Marc Pandraud

Independent Director

Director/Board Member

Biography:

Mr. Marc Pandraud has been an Independent Director of Arkema SA since June 15, 2009. A graduate of Ecole Superieure de Commerce de Paris, Mr. Pandraud has been Chairman of Deutsche Bankâ€™s activities in France since June 2009. He began his career as an auditor with Peat Marwick Mitchell (1982- 1985). Subsequently, he was Vice President of Bear Stearns & Co Inc (1985-1989), Chief Executive of SG Warburg France SA (1989-1995), Chief Executive of Deutsche Morgan Grenfell (1995-1998), and then Chief Executive in charge of investment banking (1998). He later joined Merrill Lynch as Chief Executive of Merrill Lynch & Co Inc and Chief Executive of Merill Lynch France (1998) before becoming President of Merrill Lynch France (2005-March 2009). Mr. Pandraud is a Chevalier de l'ordre national du Merite.

Age: 54

Education:

Ecole Superieure de Commerce de Paris

Claire Pedini

Independent Director

Director/Board Member

Reuters

Biography:

Ms. Claire Pedini has an Independent Member of the Board of Directors of Arkema SA since June 1, 2010 and is also a Member of the Company's Audit and Accounts Committee. She has been Senior Vice-President of Compagnie Saint-Gobain in charge of Human Resources since June 1, 2010. She is a graduate of Hautes Etudes Commerciales, and holds a Masters in Media Management from ESCP (Ecole Superieure de Commerce de Paris). After holding a number of finance and management control roles at Total, Ms. Pedini headed the Groupâ€™s financial communication from 1992 to 1994, after completing the Groupâ€™s IPO on the New York stock exchange in 1991. She was Head of Totalâ€™s Press department from 1995 to 1997. She then joined Alcatel in September 1998 as Director of Financial Communication and Investor Relations. In 2002, she became Director of Financial Communication and Corporate Relations. In February 2004 she was appointed Deputy Chief Financial Officer for the Group. In 2006, she was appointed Director of Human Resources and a member of Alcatel-Lucentâ€™s Executive Committee, Director of Human Resources and Communications in June 2006, then Head of Human Resources and Transformation in 2009.

Age: 47

Education:

Ecole Superieure de Commerce de Paris, M
Hautes Etudes Commerciales

Marc Schuller

Executive Vice President - Coating Solutions Business Segment and Thiochemicals, PMMA (Altuglas International), and Organic Peroxides Activities, Member of the Executive Committee

Director/Board Member

Biography:

Mr. Marc Schuller is Executive Vice President, in charge of Coating Solutions Business Segment and Thiochemicals, PMMA (Altuglas International), and Organic Peroxides Activities of Arkema SA and also supervises energy and raw material global procurement. Mr. Schuller has been a Member of the Executive Committee of Arkema SA since 2006. He holds a degree from lâ€™Ecole Superieure des Sciences Economiques et Commerciales (ESSEC). He joined Orkem in 1985 as Head of acrylic products. In 1990, he moved to the Strategy Segment of Total Chimie and then became Deputy Managing Director of the Structural Resines department at Cray Valley. In 1995, he became Commercial Director of Petrochemicals/Special Fluids at Total and then director Base Petrochemicals at TotalFina. In 2000, Mr. Schuller was appointed director of Atofinaâ€™s Butadiene/Aromatics BU, and special project manager for the Chairman. In 2003, he became director of the Thiochemicals and Fine Chemicals BU.

Age: 53

Education:

ESSEC Business School

Jean-Pierre Seeuws

Independent Director

Director/Board Member

Biography:

Mr. Jean-Pierre Seeuws has been an Independent Director of Arkema SA since May 10, 2006 and is also a Member of the Company's Audit and Accounts Committee as well as Chairman of its Strategy Committee. He holds a degree from Ecole Polytechnique. In 1967 he joined Rhone-Poulenc, where he was responsible for the production and chemical engineering sectors. In 1981, he became Chief Executive Officer of the Base Mineral Chemicals, Films and then Fine Minerals businesses. In 1989, he joined Orkem as divisional Chief Executive Officer and became Deputy Chief Executive Officer of Total's Chemicals business (and a member of the Management Committee) in 1990. He has been Chief Executive Officer of Total's Chemicals business since 1995 and Chairman of Hutchinson since 1996. He was a member of Total S.A.'s Executive Committee between 1996 and 2000. Between 2000 and 2005, Mr. Seeuws was Total's general delegate for Chemicals in the United States and Chief Executive Officer of Atofina Chemicals Inc. and Total Petrochemicals Inc.

Age: 68

Education:

Ecole Polytechnique

Philippe Vassor

Independent Director

Director/Board Member

Biography:

Mr. Philippe Vassor has been an Independent Director of Arkema SA since May 10, 2006 and is also the Chairman of the Companyâ€™s Audit and Accounts Committee. He holds a degree from Ecole Superieure de Commerce de Paris and is also a chartered accountant and auditor. He has been the President of Baignas SAS since June 2005. He spent the core of his professional career (1975 to 2005) at Deloitte & Touche where he became Chairman and Chief Executive Officer for France and a member of the worldwide Executive Group, responsible for human resources (from 2000 to 2004).

Age: 60

Education:

Ecole Superieure de Commerce de Paris

Executives

Name

Title

Function

Thierry Le Henaff

Chairman of the Board, Chief Executive Officer, Member of the Executive Committee

Chief Executive Officer

Biography:

Age: 50

Education:

Stanford University, M (Industrial Management)
Ecole Nationale Polytechnique
Ecole Nationale des Ponts et Chaussees

Compensation/Salary:750,000

Compensation Currency: EUR

Alain Devic

Deputy general manager

Administration Executive

Biography:

Born in 1947 Alain Devic is a graduate of the Ecole Centrale. For over 30 years he has held a variety of positions in production facilities and in corporate offices in the French chemical industry. After holding various positions as engineer with Ethylene Plastiques and CdF Chimie Alain Devic was assigned to Qatar in 1980 as operations manager running the steam cracker of Qapco. Between 1982 and 1993 Mr Devic held a variety of managerial positions in production planning/strategy and as plant manager with Copenor and later Norsolor and Grande Paroisse. In 1993 he became managing director of Elf Atochems petrochemicals complex in Gonfreville. In 2000 he was appointed director Industrial Coordination and Human Resources at the head office of the newly created Atofina before becoming Vice-Executive Officer in June 2002. Mr Devic was also elected Chairman of Union des Industries Chimiques in March 2004 and re-elected on 15 December 2005 for a term ending in March 2007. Mr. Alain Devic is executive vice-president in charge of Industry. In this capacity he oversees Industrial Safety Environment and Sustainable Development Technology Logistics Quality and Goods and Services Procurement.

Thierry Lemonnier

Executive Vice President and Chief Financial Officer, Member of the Executive Committee

Finance Executive

Biography:

Age: 60

Education:

Stanford University, M
Ecole Nationale Superieure de Geologie in Nancy

Michel Delaborde

Executive Vice President - Human Resources and Communication, Member of the Executive Committee

Human Resources Executive

Biography:

Age: 57

Education:

Universite Paris-Sorbonne (Paris IV) (Economic Sciences)

Marc Schuller

Executive Vice President - Coating Solutions Business Segment and Thiochemicals, PMMA (Altuglas International), and Organic Peroxides Activities, Member of the Executive Committee

International Executive

Biography:

Age: 53

Education:

ESSEC Business School

Gilles Galinier

Manager-Product Communications

Corporate Communications Executive

Sophie Fouillat

Vice President of Investor Relations

Investor Relations Executive

Biography:

Ms. Sophie Fouillat has been appointed Vice President of Investor Relations of Arkema SA, effective September 1, 2009. She graduated from HEC (Hautes Etudes Commerciales) business school. She began her career in 1999 in Total's Finance Division as an International Tax Specialist. In March 2006, she joined Arkema's Investor Relations Department as Investor Relations Manager.

Age: 35

Education:

Hautes Etudes Commerciales

Otto Takken

Executive Vice President Vinyl Products

Product Management Executive

Biography:

Otto Takken born in 1955 a Dutch national holds a CPA certification and a Business Administration degree. After several years as sales manager within a Dutch group Otto Takken joined in 1981 Elf Aquitaine and held various positions including deputy finance director of Elf Petroland BV in the Netherlands project financing within the financial department in Paris and CFO of the Refining and Marketing activities in Germany. In 1999 he was appointed in the United States executive vice-president CFO for Total Holdings USA Inc and CFO of Atofina Chemicals Inc. Since 2004 he is managing director of Alphacan Business Unit leader in the plastic transformation market. Otto Takken is executive vice-president in charge of Vinyl Products.

Bernard Boyer

Executive Vice President - Strategy, Member of the Executive Committee

Planning Executive

Biography:

Age: 53

Education:

Ecole Nationale Superieure des Petroles et des Moteurs (ENSPM)
Ecole Polytechnique

Florence Schlegel

General Counsel-Arkema Group

Legal Executive

Pierre Chanoine

Executive Vice President - High Performance Materials Business Segment and Fluorochemicals and Hydrogen Peroxide Activities, Member of the Executive Committee

Purchasing Executive

Biography:

Age: 64

Education:

University of Sherbrooke, MBA
Ecole Superieure de Commerce, Reims

Jean-Francois Chesneau

VP-Raw Materials Purchasing

Purchasing Executive

Tidjane Thiam

Non Executive Independent Director

Other

Biography:

Tidjane Thiam has been an executive director of Prudential since 25 March 2008. He was the Chief Financial Officer until 30 September 2009 and became Group Chief Executive with effect from 1 October 2009. Tidjane Thiam was previously Chief Executive Officer Europe at Aviva where he also held successively the positions of Group Strategy and Development Director and Managing Director Aviva International. Tidjane Thiam spent the first part of his professional career with McKinsey & Company in Paris London and New York serving insurance companies and banks. He then spent a number of years in Africa where he was Chief Executive and then Chairman of the National Bureau for Technical Studies and Development in Cote dIvoire and a cabinet member as Secretary of Planning and Development. Tidjane Thiam returned to France to become a partner with McKinsey & Company as one of the leaders of their Financial Institutions practice before joining Aviva in 2002. He is a non-executive director of Arkema in France a member of the Council of the Overseas Development Institute (ODI) in London a sponsor of Opportunity International a charity focusing on microfinance in developing countries and a member of the Africa Progress Panel.

Significant Developments

Arkema SA Sign Joint Venture Agreement with Watan Industrial Investment for Construction of Organic Peroxide Production Site on Al Jubail Platform

Sep 30, 2013

Arkema SA announced that it has signed an agreement with Saudi investment company Watan Industrial Investment for the construction of an organic peroxide production site on the Al Jubail platform, Saudi Arabia. The facility requires an investment of approximately USD 30 million. Organic peroxides are widely used as polymerization initiators in the thermoplastic industry. The Arkema SA - Watan Industrial Investment joint venture will be majority held by Arkema SA, with the latter overseeing the operational management and sales of the site. The plant's startup is scheduled in the first months of 2015.

Arkema SA Issues H2 2013, Q3 2013 and Q4 2013 EBITDA Guidance in Line with Analysts' Estimates; Confirms FY 2016 Revenue and EBITDA Margin Guidance

Aug 01, 2013

Arkema SA announced that it expects to achieve in the second half of fiscal year 2013 an EBITDA similar to the record level of the second half of fiscal year 2012. Compared to fiscal year 2012, the third quarter 2013 EBITDA should be lower than the high reference of last year and the fourth quarter 2013 stronger. The Company also confirmed its ambition for fiscal year 2016 to achieve EUR 8 million revenue and 16% EBITDA margin while maintaining gearing below 40%. The Company reported EBITDA of EUR 266 million for the third quarter of fiscal year 2012 and EUR 171 million for the fourth quarter of fiscal year 2012. According to I/B/E/S Estimates, analysts on average are expecting the Company to report EBITDA of EUR 259.27 million for the third quarter of fiscal year 2013 and EBITDA of EUR 203.73 million for the fourth quarter of fiscal year 2013.

Arkema SA Announces Fonds Strategique de Acquired 6% Stake In Share Capital

Jul 03, 2013

The Fonds Strategique de Participation (FSP), a mutual fund created by four major French insurance companies - BNP Paribas Cardif, CNP Assurances, Credit Agricole Assurances through its subsidiary Predica and Sogecap (Groupe Societe Generale) announced that it now owns 6% of Arkema SA's share capital. Arkema considers this acquisition of a stake in its share capital as a positive sign showing the confidence of the FSP in the long-term strategy implemented by the Group and in its management.

Arkema SA Announces Worldwide Expansion of Its Bis-peroxide Capacity

Jun 18, 2013

Arkema SA announced a 15% debottlenecking of its bis-peroxide capacity in both its Spinetta (Italy) and Franklin (Virginia) factories. This new capacity will allow the Company to respond immediately to demand in the synthetic rubber crosslinking industry, in particular in Asia, and to support recent developments in fast-growing markets. This increase capacity, already effective, is the first stage of a multi-step plan which intends to grow the global bis-peroxide capacity by 30% by end 2014.

Arkema SA Announces Successful Start-up of Its Acrylic Acid Capacity Expansion

Jun 05, 2013

Arkema SA announced that it has brought on stream additional acrylic acid capacity at its Clear Lake, Texas, site. A ramp-up period is planned to continue over the next few months associated with commercial qualification of newly manufactured products. This project will improve reliability and increase competitiveness of the Clear Lake plant and brings the site to a nameplate capacity of 270 KT per year.

Global Bioenergies SA to Receive EUR 5.2 Million State Financing Together with Arkema SA

Jun 04, 2013

Global Bioenergies SA announced that the industrial pilot testing of its isobutene process, scheduled for July 2013, will be supported by a EUR 5.2 million state financing via the Investissements d'Avenir program managed by the Commissariat General a l'Investissement. This project, led by Global Bioenergies SA, brings together Arkema SA, two CNRS laboratories and the companies ARD and Processium. Global Bioenergies SA is developing a process that converts renewable resources (sugar, cereals, agricultural and forestry waste) into isobutene, a key building block of the petrochemical industry from which plastics, elastomers and fuels are derived. This industrial pilot will be comprised of a 500 liter fermenter, which represents a yearly production capacity of 10 tons, and of a purification unit installed downstream of the fermenter which will allow the production of intermediate-purity isobutene batches. These will be transferred to Arkema SA for its own research. In the context of the collaborative project supported by the State, Arkema SA will develop a selective oxidation process adapted to the specifications of renewable products obtained by fermentation in collaboration with two CNRS laboratories, IRCELYON and UCCS. The State will contribute EUR 5.2 million over three years to this industrialization program, of which EUR 4 million will go to Global Bioenergies SA (one third as subsidies and two thirds as repayable advance).

Arkema SA Confirms FY 2016 Revenue and EBITDA Margin Guidance

May 15, 2013

Arkema SA announced that it confirms its ambition to achieve in 2016 EUR 8 billion revenue and a 16% EBITDA margin while maintaining gearing below 40%.

Arkema SA Signs Joint Venture Agreement with Jayant Agro Organics Ltd

Apr 11, 2013

Arkema SA announced that it has signed a joint venture agreement with Jayant Agro Organics Ltd whereby Arkema SA will acquire a stake of some 25% in Ihsedu Agrochem, a subsidiary of Jayant Agro Organics Ltd, specializing in the production of castor oil. This joint venture aims to develop castor oil production in order to provide Arkema with long-term access to this raw material for the manufacture of its biosourced polyamides. The project should be finalized in the third quarter of fiscal year 2013.

Arkema SA Acquires Majority Stake in AEC Polymers

Apr 03, 2013

Arkema SA announced that it has acquired a majority stake in AEC Polymers, a French manufacturer of structural adhesives. The financial terms of the deal were not disclosed.

Arkema SA Sued by Klesch Group over Vinyl Unit Sale-Reuters

Mar 04, 2013

Reuters reported that Klesch Group is suing Arkema SA for EUR 310 million (USD 403 million), in a dispute over its purchase of the Company's vinyl division last year. Klesch Group, led by American investor Mr. Gary Klesch, said it had discovered gaps in the information presented by Arkema SA's management before it completed the acquisition in July 2012 of Kem One SAS, whose products are used in items ranging from pipes and packaging to paper. Arkema SA rejected the allegations and said that Klesch Group had access to all the necessary information.

Arkema SA Confirms FY 2016 Revenue Guidance; Above Proposes FY 2012 Dividend

Feb 28, 2013

Arkema SA announced that it confirms its expectation to report by fiscal year 2016 EUR 8 billion revenue and a 16% EBITDA margin for fiscal year 2016while maintaining its gearing below 40%. Moreover, the Board of Directors has decided to propose an increase in the dividend, to EUR 1.80 per share.

Arkema SA Confirms FY 2012 EBITDA Guidance

Nov 08, 2012

Arkema SA announced that it confirms its target to achieve an EBITDA close to EUR 1 billion in 2012. According to I/B/E/S Estimates, analysts on average are expecting the Company to report fiscal year EBITDA of EUR 1 billion.

News

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Annual Profit & Loss

	31-Dec-2012	31-Dec-2011	31-Dec-2010
Period Length	12 Months	12 Months	12 Months
Filed Currency	EUR	EUR	EUR
Exchange Rate (Period Average)	0.778237	0.71919	0.755078
Consolidated	No	No	No

Total income	4,474.2	5,593.8	4,432.9
Net sales	4,163.3	5,121.0	4,121.1
Change in stock	-6.4	-12.5	7.2
Unfinished work in progress	41.1	173.8	45.4
Own work capitalised	23.1	20.9	14.0
Subsidies for operating costs	10.3	12.5	7.5
Supplementary operating income	197.9	223.9	217.5
Other operating income	38.5	41.7	27.4
Other external charges	1,061.4	1,137.4	1,041.1
Cost of goods sold	2,593.0	3,310.7	2,444.7
Taxes and social security costs	77.1	79.3	69.4
Social charges	222.3	241.9	206.3
Total payroll costs	372.6	415.7	393.1
Cost of stock depreciation and amortisation	152.9	184.9	155.5
Fixed asset depreciation and amortisation	168.3	190.5	181.9
Other operating costs	12.8	18.1	13.5
Total operating costs	4,655.4	5,566.0	4,512.8
Net operating income	-181.2	27.8	-79.8
Total financial income	154.2	169.6	163.7
Interest payable on loans	59.1	62.6	27.9
Other expenses	45.0	72.3	89.3
Total expenses	104.1	134.9	117.2
Profit before tax	-131.1	62.6	-33.4
Extraordinary income	1,295.2	166.9	119.7
Extraordinary expenses	1,314.5	698.0	108.9
Extraordinary result	-19.3	-531.2	10.8
Total taxation	-21.8	-25.0	-22.4
Net loss	128.5	443.6	0.2

Annual Balance Sheet

Financials in: USD (mil)

	31-Dec-2012	31-Dec-2011	31-Dec-2010
Filed Currency	EUR	EUR	EUR
Exchange Rate	0.7566	0.770327	0.745406
Consolidated	No	No	No

Issued capital	356.9	357.0	368.7
Legal reserves	17.2	220.7	233.6
Total reserves	9.3	9.1	9.2
Profits for the year	-132.2	-412.8	-0.2
Profit brought forward from previous year(s)	-	-111.6	-113.3
Capital subsidies and grants	22.5	13.0	0.6
Total stockholders equity	272.3	75.3	498.7
Provisions and allowances	568.3	1,133.3	690.1
Trade creditors	504.9	651.7	603.0
Advances received	9.3	6.5	5.8
Bank loans and overdrafts	189.0	166.2	184.2
Current bank debts	-	-	9.0
Other loans	2,956.6	2,582.0	2,651.6
Other liabilities	116.3	67.5	73.0
Debts on fixed assets	56.8	93.5	82.8
Income stated in advance	9.3	2.6	3.0
Taxation and social security	145.4	270.0	275.6
Total current liabilities	-	-	2,876.5
Total debts	3,988.9	3,839.9	3,879.2
Regularisation account	5.3	15.6	5.4
Total liabilities (including net worth)	4,834.8	5,064.1	5,073.3
Patents	42.3	38.9	26.5
Goodwill	1.3	5.2	0.2
Other intangibles	72.7	71.4	15.6
Land	27.8	38.9	40.4
Buildings	111.0	128.5	120.7
Other fixed assets	678.0	765.9	740.6
Long-term investments	1,134.0	1,124.2	1,194.0
Other financial assets	388.6	858.1	733.7
Total non-current assets	2,455.7	3,028.6	2,871.7
Prepayments	91.2	79.2	90.7
Net stocks and work in progress	506.2	590.7	472.4
Trade debtors	696.5	664.7	624.3
Other receivables	777.2	534.8	327.8
Prepaid expenses	11.9	2.6	2.3
Cash and liquid assets	4.0	11.7	4.8
Marketable securities	272.3	115.5	622.4
Total current assets	2,357.9	1,999.2	2,144.7
Prepaid expenses and deferred costs	23.8	33.8	56.9
Total assets	4,836.1	5,062.8	5,073.3

Annual Ratios

Financials in: USD (mil)

	31-Dec-2012	31-Dec-2011	31-Dec-2010
Period Length	12 Months	12 Months	12 Months
Filed Currency	EUR	EUR	EUR
Exchange Rate	0.7566	0.770327	0.745406
Consolidated	No	No	No

Current ratio	-	-	0.70
Quick ratio	-	-	0.60
Total liabilities to net worth	30.18%	-51.90%	9.71%
Net worth to total assets	0.03%	-0.02%	0.08%
Collection period	49.40	42.20	45.40
Stock turnover rate	8.50	8.10	8.80
Asset turnover	0.89%	0.94%	0.82%
Profit margin	-0.03%	0.01%	-0.01%
Return on assets	-0.03%	0.01%	-0.01%
Shareholders' return	-1.02%	-0.79%	-0.09%
Net worth	272.3	75.3	498.7

Annual Income Statement

Financials in: USD (mil)
Except for share items (millions) and per share items (actual units)

	31-Dec-2012	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2012	Updated Normal 31-Dec-2011	Restated Normal 31-Dec-2011	Updated Normal 31-Dec-2009	Updated Normal 31-Dec-2008
Filed Currency	EUR	EUR	EUR	EUR	EUR
Exchange Rate (Period Average)	0.778237	0.71919	0.755078	0.719047	0.683679
Auditor	Ernst & Young Audit	KPMG Audit	KPMG Peat Marwick LLP	KPMG LLP	KPMG LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation

Net Sales	8,217.3	8,203.7	6,448.3	6,180.4	8,239.2
Revenue	8,217.3	8,203.7	6,448.3	6,180.4	8,239.2
Total Revenue	8,217.3	8,203.7	6,448.3	6,180.4	8,239.2

Cost of Revenue	6,600.8	6,440.6	5,090.9	5,439.1	7,079.3
Cost of Revenue, Total	6,600.8	6,440.6	5,090.9	5,439.1	7,079.3
Gross Profit	1,616.5	1,763.1	1,357.5	741.3	1,159.9

Selling/General/Administrative Expense	555.1	520.0	450.3	496.5	574.8
Total Selling/General/Administrative Expenses	555.1	520.0	450.3	496.5	574.8
Research & Development	190.2	183.5	162.9	189.1	219.4
Restructuring Charge	3.9	29.2	50.3	126.6	92.1
Litigation	15.4	1.4	0.0	16.7	17.6
Impairment-Assets Held for Use	3.9	18.1	-22.5	2.8	2.9
Loss (Gain) on Sale of Assets - Operating	11.6	13.9	5.3	-4.2	-33.6
Unusual Expense (Income)	34.7	62.6	33.1	141.9	79.0
Other, Net	-	0.0	-21.2	9.7	-1.5
Other Operating Expenses, Total	-	0.0	-21.2	9.7	-1.5
Total Operating Expense	7,380.8	7,206.7	5,716.0	6,276.4	7,951.1

Operating Income	836.5	997.0	732.4	-96.0	288.1

Interest Expense - Non-Operating	-50.1	-43.1	-14.6	-15.3	-
Interest Capitalized - Non-Operating	3.9	2.8	1.3	1.4	-
Interest Expense, Net Non-Operating	-46.3	-40.3	-13.2	-13.9	-
Investment Income - Non-Operating	11.6	23.6	19.9	18.1	11.7
Interest/Investment Income - Non-Operating	11.6	23.6	19.9	18.1	11.7
Interest Income (Expense) - Net Non-Operating Total	-34.7	-16.7	6.6	4.2	11.7
Other Non-Operating Income (Expense)	-21.8	-11.1	-19.9	-25.0	-51.2
Other, Net	-21.8	-11.1	-19.9	-25.0	-51.2
Income Before Tax	780.0	969.1	719.1	-116.8	248.7

Total Income Tax	239.0	173.8	152.3	121.0	100.9
Income After Tax	541.0	795.3	566.8	-237.8	147.7

Minority Interest	-1.3	-5.6	-4.0	-1.4	-1.5
Net Income Before Extraord Items	539.7	789.8	562.9	-239.2	146.3
Discontinued Operations	-257.0	-816.2	-103.3	0.0	0.0
Total Extraord Items	-257.0	-816.2	-103.3	0.0	0.0
Net Income	282.7	-26.4	459.6	-239.2	146.3

Income Available to Common Excl Extraord Items	539.7	789.8	562.9	-239.2	146.3

Income Available to Common Incl Extraord Items	282.7	-26.4	459.6	-239.2	146.3

Basic/Primary Weighted Average Shares	62.2	61.6	61.0	60.4	60.5
Basic EPS Excl Extraord Items	8.68	12.81	9.22	-3.96	2.42
Basic/Primary EPS Incl Extraord Items	4.55	-0.43	7.53	-3.96	2.42
Dilution Adjustment	-0.3	-	-	0.0	-
Diluted Net Income	282.4	-26.4	459.6	-239.2	146.3
Diluted Weighted Average Shares	63.0	62.3	61.2	60.4	60.6
Diluted EPS Excl Extraord Items	8.57	12.68	9.20	-3.96	2.42
Diluted EPS Incl Extraord Items	4.48	-0.42	7.51	-3.96	2.42
Dividends per Share - Common Stock Primary Issue	2.31	1.81	1.32	0.83	0.88
Gross Dividends - Common Stock	145.2	111.8	81.4	52.1	52.7
Interest Expense, Supplemental	46.3	38.9	13.2	13.9	-
Interest Capitalized, Supplemental	-3.9	-2.8	-1.3	-1.4	-
Depreciation, Supplemental	465.2	422.7	333.7	381.1	358.4
Total Special Items	34.7	62.6	33.1	141.9	79.0
Normalized Income Before Tax	814.7	1,031.7	752.2	25.0	327.6

Effect of Special Items on Income Taxes	10.6	11.2	7.0	49.6	32.1
Inc Tax Ex Impact of Sp Items	249.6	185.0	159.3	170.6	133.0
Normalized Income After Tax	565.0	846.7	592.9	-145.6	194.7

Normalized Inc. Avail to Com.	563.7	841.1	589.0	-147.0	193.2

Basic Normalized EPS	9.07	13.65	9.65	-2.43	3.19
Diluted Normalized EPS	8.95	13.50	9.63	-2.43	3.19
Amort of Intangibles, Supplemental	-	33.4	33.1	34.8	32.2
Research & Development Exp, Supplemental	190.2	183.5	162.9	189.1	219.4
Normalized EBIT	871.2	1,059.5	765.5	45.9	367.1
Normalized EBITDA	1,336.4	1,515.6	1,132.3	461.7	757.7
Current Tax - Total	237.7	223.9	169.5	98.7	80.4
Current Tax - Total	237.7	223.9	169.5	98.7	80.4
Deferred Tax - Total	1.3	-50.1	-17.2	22.3	20.5
Deferred Tax - Total	1.3	-50.1	-17.2	22.3	20.5
Income Tax - Total	239.0	173.8	152.3	121.0	100.9
Interest Cost - Domestic	28.3	29.2	34.4	37.5	36.6
Service Cost - Domestic	14.1	13.9	14.6	15.3	19.0
Prior Service Cost - Domestic	1.3	1.4	-14.6	2.8	5.9
Expected Return on Assets - Domestic	-18.0	-19.5	-23.8	-23.6	-32.2
Curtailments & Settlements - Domestic	-3.9	1.4	-2.6	-5.6	-1.5
Domestic Pension Plan Expense	21.8	26.4	7.9	26.4	27.8
Interest Cost - Post-Retirement	3.9	36.2	5.3	5.6	8.8
Service Cost - Post-Retirement	3.9	15.3	2.6	4.2	4.4
Prior Service Cost - Post-Retirement	-1.3	-15.3	-1.3	0.0	-21.9
Expected Return on Assets - Post-Retir.	-	-25.0	0.0	-	-
Actuarial Gains and Losses - Post-Retir.	-	0.0	4.0	1.4	-1.5
Curtailments & Settlements - Post-Retir.	-	-2.8	0.0	0.0	-7.3
Other Post-Retirement, Net	10.3	-	-	-	-
Post-Retirement Plan Expense	16.7	8.3	10.6	11.1	-17.6
Total Pension Expense	38.5	34.8	18.5	37.5	10.2
Discount Rate - Domestic	3.00%	4.35%	4.50%	5.00%	5.40%
Discount Rate - Foreign	-	-	-	5.60%	6.20%
Discount Rate - Post-Retirement	2.50%	4.00%	3.60%	-	-
Expected Rate of Return - Domestic	3.39%	3.39%	3.39%	3.39%	3.39%
Expected Rate of Return - Foreign	-	-	-	7.45%	7.49%
Compensation Rate - Domestic	1.50%	2.00%	2.00%	1.80%	1.80%
Compensation Rate - Foreign	-	-	-	4.00%	4.00%
Compensation Rate - Post-Retirement	1.80%	1.80%	1.80%	-	-
Total Plan Interest Cost	32.1	65.4	39.7	43.1	45.3
Total Plan Service Cost	18.0	29.2	17.2	19.5	23.4
Total Plan Expected Return	-18.0	-44.5	-23.8	-23.6	-32.2
Total Plan Other Expense	10.3	-	-	-	-

Annual Balance Sheet

Financials in: USD (mil)

	31-Dec-2012	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008
UpdateType/Date	Updated Normal 31-Dec-2012	Updated Normal 31-Dec-2011	Updated Normal 31-Dec-2010	Updated Normal 31-Dec-2009	Updated Normal 31-Dec-2008
Filed Currency	EUR	EUR	EUR	EUR	EUR
Exchange Rate	0.7566	0.770327	0.745406	0.696986	0.719399
Auditor	Ernst & Young Audit	KPMG Audit	KPMG Peat Marwick LLP	KPMG LLP	KPMG LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation

Cash	175.8	190.8	77.8	114.8	80.6
Cash & Equivalents	-	136.3	629.2	12.9	12.5
Short Term Investments	310.6	11.7	5.4	5.7	-
Cash and Short Term Investments	486.4	338.8	712.4	133.4	93.1
Accounts Receivable - Trade, Gross	1,254.3	1,111.2	1,216.8	1,064.6	1,213.5
Provision for Doubtful Accounts	-38.3	-28.6	-42.9	-45.9	-48.7
Trade Accounts Receivable - Net	1,216.0	1,082.7	1,173.9	1,018.7	1,164.9
Other Receivables	240.5	198.6	187.8	182.2	237.7
Total Receivables, Net	1,456.5	1,281.3	1,361.7	1,200.9	1,402.6
Inventories - Finished Goods	873.6	889.2	810.3	710.2	973.0
Inventories - Raw Materials	342.3	337.5	348.8	347.2	453.2
Total Inventory	1,216.0	1,226.8	1,159.1	1,057.4	1,426.2
Discontinued Operations - Current Asset	-	-	-	0.0	0.0
Other Current Assets	-	-	-	-	41.7
Other Current Assets, Total	-	-	-	0.0	41.7
Total Current Assets	3,158.9	2,846.8	3,233.1	2,391.7	2,963.6

Land/Improvements	1,761.8	1,662.9	1,880.9	1,919.7	1,805.7
Machinery/Equipment	2,346.0	2,178.3	2,879.0	2,931.2	2,657.8
Construction in Progress	437.5	314.2	307.2	265.4	318.3
Other Property/Plant/Equipment	3,835.6	3,662.1	4,213.8	4,304.3	4,157.6
Property/Plant/Equipment - Gross	8,380.9	7,817.5	9,280.8	9,420.6	8,939.4
Accumulated Depreciation	-5,933.1	-5,602.8	-6,996.2	-7,113.5	-6,662.5
Property/Plant/Equipment - Net	2,447.8	2,214.6	2,284.7	2,307.1	2,276.9
Goodwill, Net	885.5	606.2	378.3	394.6	371.1
Intangibles - Gross	918.6	954.1	834.4	846.5	782.6
Accumulated Intangible Amortization	-532.6	-551.7	-550.0	-550.9	-506.0
Intangibles, Net	385.9	402.4	284.4	295.6	276.6
LT Investment - Affiliate Companies	93.8	85.7	73.8	84.7	73.7
LT Investments - Other	63.4	45.4	51.0	30.1	30.6
Long Term Investments	157.3	131.1	124.8	114.8	104.3
Note Receivable - Long Term	178.4	124.6	104.6	-	-
Deferred Income Tax - Long Term Asset	109.7	85.7	38.9	30.1	34.8
Discontinued Operations - Long Term Asset	-	493.3	0.0	-	-
Other Long Term Assets	-	16.9	14.8	126.3	190.4
Other Long Term Assets, Total	109.7	595.9	53.7	156.4	225.2
Total Assets	7,323.6	6,921.7	6,463.6	5,660.1	6,217.7

Accounts Payable	902.7	863.3	1,045.1	865.2	959.1
Accrued Expenses	-	-	218.7	208.0	259.9
Notes Payable/Short Term Debt	249.8	0.0	0.0	0.0	0.0
Current Portion - Long Term Debt/Capital Leases	-	353.1	45.6	495.0	685.3
Income Taxes Payable	74.0	50.6	49.6	28.7	23.6
Other Payables	420.3	344.0	155.6	126.3	100.1
Other Current Liabilities	2.6	15.6	4.0	2.9	62.6
Other Current liabilities, Total	497.0	410.2	209.3	157.8	186.3
Total Current Liabilities	1,649.5	1,626.6	1,518.6	1,726.0	2,090.6

Long Term Debt	1,411.6	752.9	771.4	101.9	73.7
Capital Lease Obligations	4.0	3.9	16.1	20.1	22.2
Total Long Term Debt	1,415.5	756.8	787.5	122.0	95.9
Total Debt	1,665.3	1,109.9	833.1	616.9	781.2

Deferred Income Tax - LT Liability	43.6	45.4	69.8	76.0	65.3
Deferred Income Tax	43.6	45.4	69.8	76.0	65.3
Minority Interest	38.3	35.1	28.2	31.6	30.6
Reserves	1,160.5	512.8	562.1	601.2	1,160.7
Pension Benefits - Underfunded	-	460.8	472.2	483.5	-
Other Long Term Liabilities	-	53.2	48.3	50.2	-
Discontinued Operations - Liabilities	-	588.1	0.0	0.0	-
Other Liabilities, Total	1,160.5	1,614.9	1,082.6	1,134.9	1,160.7
Total Liabilities	4,307.4	4,078.8	3,486.7	3,090.5	3,443.2

Common Stock	831.4	803.6	825.1	868.0	841.0
Common Stock	831.4	803.6	825.1	868.0	841.0
Additional Paid-In Capital	2,097.5	1,325.4	1,356.3	1,433.3	2,051.7
Retained Earnings (Accumulated Deficit)	-	601.0	745.9	380.2	-
Treasury Stock - Common	-21.1	-13.0	-8.0	0.0	-1.4
Translation Adjustment	108.4	125.9	57.7	-111.9	-116.8
Other Equity, Total	108.4	125.9	57.7	-111.9	-116.8
Total Equity	3,016.1	2,842.9	2,976.9	2,569.6	2,774.5

Total Liabilities & Shareholdersâ€™ Equity	7,323.6	6,921.7	6,463.6	5,660.1	6,217.7

Shares Outstanding - Common Stock Primary Issue	62.6	61.7	61.4	60.5	60.4
Total Common Shares Outstanding	62.6	61.7	61.4	60.5	60.4
Treasury Shares - Common Stock Primary Issue	0.3	0.2	0.1	0.0	0.0
Employees	13,759	15,277	13,449	13,409	14,413
Accumulated Intangible Amort, Suppl.	532.6	551.7	550.0	550.9	506.0
Total Long Term Debt, Supplemental	1,982.6	1,295.6	1,038.4	641.3	802.1
Long Term Debt Maturing within 1 Year	278.9	380.4	75.1	500.7	690.9
Long Term Debt Maturing in Year 2	64.8	38.9	67.1	12.9	11.1
Long Term Debt Maturing in Year 3	68.7	44.1	38.9	41.6	11.1
Long Term Debt Maturing in Year 4	70.1	45.4	36.2	8.6	37.5
Long Term Debt Maturing in Year 5	740.2	50.6	37.6	8.6	4.2
Long Term Debt Maturing in 2-3 Years	133.5	83.1	106.0	54.5	22.2
Long Term Debt Maturing in 4-5 Years	810.2	96.1	73.8	17.2	41.7
Long Term Debt Matur. in Year 6 & Beyond	760.0	736.1	783.5	68.9	47.3
Interest Costs	-1.3	-1.3	-4.0	-5.7	-7.0
Total Capital Leases, Supplemental	1.3	1.3	17.4	20.1	25.0
Capital Lease Payments Due in Year 1	0.0	0.0	2.7	2.9	4.2
Capital Lease Payments Due in Year 2	0.0	0.0	2.7	2.9	4.2
Capital Lease Payments Due in Year 3	0.0	0.0	2.7	2.9	4.2
Capital Lease Payments Due in Year 4	-	-	2.7	-	2.8
Capital Lease Payments Due in 2-3 Years	0.0	0.0	5.4	5.7	8.3
Capital Lease Payments Due in 4-5 Years	-	-	2.7	-	2.8
Cap. Lease Pymts. Due in Year 6 & Beyond	2.6	2.6	10.7	17.2	16.7
Total Operating Leases, Supplemental	126.9	118.1	216.0	236.7	209.9
Operating Lease Payments Due in Year 1	29.1	26.0	42.9	34.4	27.8
Operating Lease Payments Due in Year 2	26.4	26.0	29.5	31.6	27.8
Operating Lease Payments Due in Year 3	25.1	22.1	26.8	28.7	23.6
Operating Lease Payments Due in Year 4	21.1	-	24.1	-	22.2
Operating Lease Pymts. Due in 2-3 Years	51.5	48.0	56.3	60.3	51.4
Operating Lease Pymts. Due in 4-5 Years	21.1	-	24.1	-	22.2
Oper. Lse. Pymts. Due in Year 6 & Beyond	25.1	44.1	92.6	142.0	108.4
Pension Obligation - Domestic	540.6	463.4	423.9	519.4	506.0
Plan Assets - Domestic	358.2	315.5	315.3	401.7	386.4
Funded Status - Domestic	-182.4	-148.0	-108.7	-117.6	-119.5
Unfunded Plan Obligations	379.3	302.5	346.1	352.9	328.1
Total Funded Status	-561.7	-450.5	-454.8	-470.6	-447.6
Discount Rate - Domestic	3.00%	4.35%	4.50%	5.00%	5.40%
Discount Rate - Foreign	-	-	-	5.60%	6.20%
Discount Rate - Post-Retirement	2.50%	4.00%	3.60%	-	-
Expected Rate of Return - Domestic	3.39%	3.39%	3.39%	3.39%	3.39%
Expected Rate of Return - Foreign	-	-	-	7.45%	7.49%
Compensation Rate - Domestic	1.50%	2.00%	2.00%	1.80%	1.80%
Compensation Rate - Foreign	-	-	-	4.00%	4.00%
Compensation Rate - Post-Retirement	1.80%	1.80%	1.80%	-	-
Net Domestic Pension Assets	-428.2	-338.8	-320.6	-335.7	-323.9
Net Post-Retirement Assets	-133.5	-115.5	-138.2	-137.7	-139.0
Net Assets Recognized on Balance Sheet	-561.7	-454.4	-458.8	-473.5	-462.9
Equity % - Domestic	0.00%	14.00%	22.00%	26.00%	27.00%
Equity % - Foreign	-	-	-	55.00%	57.00%
Debt Securities % - Domestic	100.00%	-	-	-	-
Debt Securities % - Foreign	-	-	-	23.00%	23.00%
Real Estate % - Domestic	0.00%	0.00%	0.00%	1.00%	1.00%
Real Estate % - Foreign	-	-	-	13.00%	11.00%
Other Investments % - Domestic	-	7.00%	0.00%	0.00%	1.00%
Other Investments % - Foreign	-	-	-	9.00%	9.00%
Total Plan Obligations	919.9	765.9	770.0	872.3	834.0
Total Plan Assets	358.2	315.5	315.3	401.7	386.4

Annual Cash Flows

Financials in: USD (mil)

	31-Dec-2012	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2012	Updated Normal 31-Dec-2011	Updated Normal 31-Dec-2010	Updated Normal 31-Dec-2009	Updated Normal 31-Dec-2008
Filed Currency	EUR	EUR	EUR	EUR	EUR
Exchange Rate (Period Average)	0.778237	0.71919	0.755078	0.719047	0.683679
Auditor	Ernst & Young Audit	KPMG Audit	KPMG Peat Marwick LLP	KPMG LLP	KPMG LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified with Explanation	Unqualified with Explanation	Unqualified with Explanation

Net Income/Starting Line	284.0	-20.9	463.5	-237.8	147.7
Depreciation	465.2	823.1	365.5	414.4	392.0
Depreciation/Depletion	465.2	823.1	365.5	414.4	392.0
Deferred Taxes	-29.6	122.4	-30.5	-40.3	-81.9
Unusual Items	-33.4	-51.4	-14.6	-29.2	-55.6
Equity in Net Earnings (Loss)	-1.3	-11.1	-9.3	-11.1	-11.7
Non-Cash Items	-34.7	-62.6	-23.8	-40.3	-67.3
Other Assets & Liabilities, Net	-54.0	-118.2	-103.3	534.0	81.9
Other Operating Cash Flow	10.3	11.1	5.3	-1.4	11.7
Changes in Working Capital	-43.7	-107.1	-98.0	532.6	93.6
Cash from Operating Activities	641.2	755.0	676.8	628.6	484.1

Purchase of Fixed Assets	-615.5	-589.6	-417.2	-418.6	-490.0
Capital Expenditures	-615.5	-589.6	-417.2	-418.6	-490.0
Acquisition of Business	-339.2	-806.5	-23.8	-4.2	-26.3
Sale of Business	-7.7	0.0	0.0	4.2	0.0
Sale of Fixed Assets	52.7	18.1	22.5	37.5	58.5
Sale/Maturity of Investment	0.0	62.6	4.0	5.6	2.9
Other Investing Cash Flow	-59.1	5.6	42.4	27.8	-45.3
Other Investing Cash Flow Items, Total	-353.4	-720.3	45.0	70.9	-10.2
Cash from Investing Activities	-968.9	-1,309.8	-372.1	-347.7	-500.2

Other Financing Cash Flow	-1.3	0.0	-1.3	-1.4	0.0
Financing Cash Flow Items	-1.3	0.0	-1.3	-1.4	0.0
Cash Dividends Paid - Common	-104.1	-84.8	-49.0	-50.1	-67.3
Total Cash Dividends Paid	-104.1	-84.8	-49.0	-50.1	-67.3
Repurchase/Retirement of Common	-16.7	-13.9	-9.3	-1.4	-36.6
Common Stock, Net	43.7	0.0	21.2	-1.4	-11.7
Issuance (Retirement) of Stock, Net	43.7	0.0	21.2	-1.4	-11.7
Short Term Debt, Net	-120.8	246.1	-419.8	-214.2	32.2
Long Term Debt, Net	638.6	20.9	662.2	29.2	29.3
Issuance (Retirement) of Debt, Net	517.8	267.0	242.4	-185.0	61.4
Cash from Financing Activities	456.2	182.1	213.2	-237.8	-17.6

Foreign Exchange Effects	7.7	-7.0	62.2	-12.5	46.8
Net Change in Cash	136.2	-379.6	580.1	30.6	13.2

Net Cash - Beginning Balance	326.4	732.8	117.9	93.2	84.8
Net Cash - Ending Balance	462.6	353.2	697.9	123.8	98.0
Cash Interest Paid	41.1	50.1	13.2	13.9	-
Cash Taxes Paid	203.0	236.4	156.3	72.3	86.3

Annual Income Statement

Financials in: USD (mil)
Except for share items (millions) and per share items (actual units)

	31-Dec-2012	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2012	Updated Normal 31-Dec-2011	Restated Normal 31-Dec-2011	Updated Normal 31-Dec-2009	Updated Normal 31-Dec-2008
Filed Currency	EUR	EUR	EUR	EUR	EUR
Exchange Rate (Period Average)	0.778237	0.71919	0.755078	0.719047	0.683679
Auditor	Ernst & Young Audit	KPMG Audit	KPMG Audit	KPMG LLP	KPMG LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified with Explanation	Unqualified with Explanation

Revenue	8,217.3	8,203.7	6,448.3	6,180.4	8,239.2
Total Revenue	8,217.3	8,203.7	6,448.3	6,180.4	8,239.2

Cost of Sales	6,600.8	6,440.6	5,090.9	5,439.1	7,079.3
Research and Development	190.2	183.5	162.9	189.1	219.4
General/Administrative/Comm. Exp.	555.1	520.0	450.3	496.5	574.8
Restructuring	3.9	29.2	50.3	126.6	92.1
Litigation	15.4	1.4	0.0	16.7	17.6
Gain/Loss on the Sale of Assets	11.6	13.9	5.3	-4.2	-33.6
Other Income/Expenses	-	0.0	-21.2	9.7	-1.5
Impairment of Goodwill	0.0	0.0	0.0	0.0	0.0
Impairment	3.9	18.1	-22.5	2.8	2.9
Total Operating Expense	7,380.8	7,206.7	5,716.0	6,276.4	7,951.1

Other Net financing income/expense	-1.3	-	-	-	-
Equity in Affiliates	12.8	23.6	19.9	18.1	11.7
Cost of Debt	-50.1	-43.1	-14.6	-15.3	-
Cost of Financial Debts	-21.8	-12.5	-19.9	-23.6	-51.2
Interest Capitalized	3.9	2.8	1.3	1.4	-
Adjustment	-	1.4	-	-1.4	-
Net Income Before Taxes	780.0	969.1	719.1	-116.8	248.7

Provision for Income Taxes	239.0	173.8	152.3	121.0	100.9
Net Income After Taxes	541.0	795.3	566.8	-237.8	147.7

Minority Interest	-1.3	-5.6	-4.0	-1.4	-1.5
Net Income Before Extra. Items	539.7	789.8	562.9	-239.2	146.3
Discontinued Operations	-257.0	-816.2	-103.3	0.0	0.0
Net Income	282.7	-26.4	459.6	-239.2	146.3

Income Available to Com Excl ExtraOrd	539.7	789.8	562.9	-239.2	146.3

Income Available to Com Incl ExtraOrd	282.7	-26.4	459.6	-239.2	146.3

Basic Weighted Average Shares	62.2	61.6	61.0	60.4	60.5
Basic EPS Excluding ExtraOrdinary Items	8.68	12.81	9.22	-3.96	2.42
Basic EPS Including ExtraOrdinary Items	4.55	-0.43	7.53	-3.96	2.42
Dilution Adjustment	-0.3	-	-	0.0	-
Diluted Net Income	282.4	-26.4	459.6	-239.2	146.3
Diluted Weighted Average Shares	63.0	62.3	61.2	60.4	60.6
Diluted EPS Excluding ExtraOrd Items	8.57	12.68	9.20	-3.96	2.42
Diluted EPS Including ExtraOrd Items	4.48	-0.42	7.51	-3.96	2.42
DPS-Ordinary Shares	2.31	1.81	1.32	0.83	0.88
Gross Dividends - Common Stock	145.2	111.8	81.4	52.1	52.7
Normalized Income Before Taxes	814.7	1,031.7	752.2	25.0	327.6

Inc Tax Ex Impact of Sp Items	249.6	185.0	159.3	170.6	133.0
Normalized Income After Taxes	565.0	846.7	592.9	-145.6	194.7

Normalized Inc. Avail to Com.	563.7	841.1	589.0	-147.0	193.2

Basic Normalized EPS	9.07	13.65	9.65	-2.43	3.19
Diluted Normalized EPS	8.95	13.50	9.63	-2.43	3.19
Research and Development	190.2	183.5	162.9	189.1	219.4
Depreciation	465.2	422.7	333.7	381.1	358.4
Amortization of Intangibles	-	33.4	33.1	34.8	32.2
Interest Expense, Supplemental	46.3	-	-	-	-
Interest Expense, Supplemental	-	38.9	13.2	13.9	-
Interest Capitalized, Supplemental	-3.9	-2.8	-1.3	-1.4	-
Current Tax	237.7	223.9	169.5	98.7	80.4
Current Tax - Total	237.7	223.9	169.5	98.7	80.4
Deferred Tax	1.3	-50.1	-17.2	22.3	20.5
Deferred Tax - Total	1.3	-50.1	-17.2	22.3	20.5
Income Tax - Total	239.0	173.8	152.3	121.0	100.9
Service Cost	14.1	13.9	14.6	15.3	19.0
Interest Cost	28.3	29.2	34.4	37.5	36.6
Expected Return on Plan Assets	-18.0	-19.5	-23.8	-23.6	-32.2
Prior Service Cost	1.3	1.4	-14.6	2.8	5.9
Curtailments and Settlements	-3.9	1.4	-2.6	-5.6	-1.5
Domestic Pension Plan Expense	21.8	26.4	7.9	26.4	27.8
Other Post-Retirement, Net	10.3	-	-	-	-
Service Cost	3.9	15.3	2.6	4.2	4.4
Interest Cost	3.9	36.2	5.3	5.6	8.8
Expected Return on Plan Assets	-	-25.0	0.0	-	-
Actuarial Gains and Losses	-	0.0	4.0	1.4	-1.5
Prior Service Cost	-1.3	-15.3	-1.3	0.0	-21.9
Curtailments and Settlements	-	-2.8	0.0	0.0	-7.3
Post-Retirement Plan Expense	16.7	8.3	10.6	11.1	-17.6
Total Pension Expense	38.5	34.8	18.5	37.5	10.2
Discount Rate - Europe	-	-	-	5.00%	5.40%
Expected Return on Plan Assets - Europe	-	-	-	3.39%	3.39%
Compensation Rate - Europe	-	-	-	1.80%	1.80%
Discount Rate - France	3.00%	4.35%	4.50%	-	-
Expected Rate of Return - France	3.39%	3.39%	3.39%	-	-
Compensation Rate - France	1.50%	2.00%	2.00%	-	-
Discount Rate - UK	4.00%	5.00%	5.20%	-	-
Expected Rate of Return - UK	5.97%	5.97%	6.37%	-	-
Compensation Rate - UK	3.00%	3.60%	4.10%	-	-
Discount Rate - Rest Europe	3.00%	4.35%	4.50%	-	-
Expected Rate of Return - Rest Europe	4.35%	4.35%	4.90%	-	-
Compensation Rate - Rest Europe	2.00%	3.00%	3.00%	-	-
Discount Rate - USA	3.75%	4.85%	5.25%	5.60%	6.20%
Expected Return on Plan Assets - USA	6.17%	6.17%	7.29%	7.45%	7.49%
Compensation Rate - USA	4.00%	4.00%	4.00%	4.00%	4.00%
Discount Rate - Long Service Awards	2.50%	4.00%	3.60%	-	-
Compensation Rate - Long Service Awards	1.80%	1.80%	1.80%	-	-

Annual Balance Sheet

Financials in: USD (mil)

	31-Dec-2012	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008
UpdateType/Date	Updated Normal 31-Dec-2012	Updated Normal 31-Dec-2011	Updated Normal 31-Dec-2010	Updated Normal 31-Dec-2009	Updated Normal 31-Dec-2008
Filed Currency	EUR	EUR	EUR	EUR	EUR
Exchange Rate	0.7566	0.770327	0.745406	0.696986	0.719399
Auditor	Ernst & Young Audit	KPMG Audit	KPMG Audit	KPMG LLP	KPMG LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified with Explanation	Unqualified with Explanation

Raw Materials	342.3	337.5	348.8	347.2	453.2
Finished Goods	873.6	889.2	810.3	710.2	973.0
Accounts Receivable, Gross	1,254.3	1,111.2	1,216.8	1,064.6	1,213.5
Provisions for Doubtful Debts	-38.3	-28.6	-42.9	-45.9	-48.7
Other Receivables & Prepaid Expenses	194.3	151.9	161.0	169.3	207.1
Tax Receivables	46.3	46.7	26.8	12.9	30.6
Cash	175.8	190.8	77.8	114.8	80.6
Short Term Cash Advances	300.0	-	-	-	-
Other Financial Assets	10.6	11.7	5.4	5.7	-
Cash and Equivalents	-	136.3	629.2	12.9	12.5
Discontinued Operations	-	-	-	0.0	0.0
Other Current Assets	-	-	-	-	41.7
Total Current Assets	3,158.9	2,846.8	3,233.1	2,391.7	2,963.6

Goodwill, Net	885.5	606.2	378.3	394.6	371.1
Intangibles Gross	918.6	954.1	834.4	846.5	782.6
Amort. of Intangible Assets	-532.6	-551.7	-550.0	-550.9	-506.0
Land/Building	1,761.8	1,662.9	1,880.9	1,919.7	1,805.7
Complex Industrial Facilities	3,835.6	3,662.1	4,213.8	4,304.3	4,157.6
Plant, Machinery, Equipment, Gross	2,346.0	2,178.3	2,879.0	2,931.2	2,657.8
Construction in Progress, Gross	437.5	314.2	307.2	265.4	318.3
Acc Depr Land & Buildings	-1,149.9	-	-	-	-
Acc Depr Complex Industrial Facilities	-3,021.4	-	-	-	-
Acc Depr Plant/Machinery/Equipment	-1,760.5	-	-	-	-
Acc Depr Construction in Progress	-1.3	-	-	-	-
Depreciation	-	-5,602.8	-6,996.2	-7,113.5	-6,662.5
Equity in Affiliates	93.8	85.7	73.8	84.7	73.7
Non-current Marketable Securities	15.9	-	-	-	-
Other Investment	47.6	45.4	51.0	30.1	30.6
Deferred Tax	109.7	85.7	38.9	30.1	34.8
Loans and Advances	178.4	124.6	104.6	-	-
Other Long Term Assets	-	16.9	14.8	126.3	190.4
Assets Held for Sale	-	493.3	0.0	-	-
Total Assets	7,323.6	6,921.7	6,463.6	5,660.1	6,217.7

Current Portion of Capital Lease	-	1.3	2.7	2.9	2.8
Current Portion of LT Debts	249.8	-	-	-	-
Current Portion of Bank Loans	-	193.4	33.5	482.1	665.8
Other Financial Debt	-	158.4	9.4	10.0	16.7
Account Payables	902.7	863.3	1,045.1	865.2	959.1
Personnel/Social Liabilities	-	-	218.7	208.0	259.9
Government Liabilities	-	-	69.8	48.8	-
Other Payables	420.3	344.0	85.9	77.5	100.1
Tax Payables	74.0	50.6	49.6	28.7	23.6
Other Current Liabilities	2.6	15.6	4.0	2.9	62.6
Total Current Liabilities	1,649.5	1,626.6	1,518.6	1,726.0	2,090.6

Bonds	1,307.2	643.9	664.1	0.0	-
Capital Lease Obligations	4.0	3.9	16.1	20.1	22.2
Bank Loans	78.0	62.3	69.8	61.7	38.9
Other LT Debt	26.4	46.7	37.6	40.2	34.8
Total Long Term Debt	1,415.5	756.8	787.5	122.0	95.9

Deferred Tax	43.6	45.4	69.8	76.0	65.3
Pension Provisions	-	460.8	472.2	483.5	-
Environmental Provisions	-	245.4	265.6	282.6	-
Restructation Provisions	-	93.5	134.2	159.3	-
Other Provisions	-	174.0	162.3	159.3	-
Other LT Liabilities	-	53.2	48.3	50.2	-
Provisions	1,160.5	-	-	-	1,160.7
Discontinued Operations	-	588.1	0.0	0.0	-
Minority Interest	38.3	35.1	28.2	31.6	30.6
Total Liabilities	4,307.4	4,078.8	3,486.7	3,090.5	3,443.2

Share Capital	831.4	803.6	825.1	868.0	841.0
Premiums	2,097.5	1,325.4	1,356.3	1,433.3	2,051.7
Consolidated Reserves	-	601.0	745.9	380.2	-
Conversion Adjustment	108.4	125.9	57.7	-111.9	-116.8
Treasury Shares	-21.1	-13.0	-8.0	0.0	-1.4
Total Equity	3,016.1	2,842.9	2,976.9	2,569.6	2,774.5

Total Liabilities & Shareholders' Equity	7,323.6	6,921.7	6,463.6	5,660.1	6,217.7

S/O-Ordinary Shares	62.6	61.7	61.4	60.5	60.4
Total Common Shares Outstanding	62.6	61.7	61.4	60.5	60.4
T/S-Ordinary Shares	0.3	0.2	0.1	0.0	0.0
Accululated Amort. Intangibles	532.6	551.7	550.0	550.9	506.0
Full-Time Employees	13,759	15,277	13,449	13,409	14,413
LT Debt Maturing Within 1Y	278.9	380.4	75.1	500.7	690.9
LT Debt Maturing in 2Y	64.8	38.9	67.1	12.9	11.1
LT Debt Maturing in 3Y	68.7	44.1	38.9	41.6	11.1
LT Debt Maturing in 4Y	70.1	45.4	36.2	8.6	37.5
LT Debt Maturing in 5Y	740.2	50.6	37.6	8.6	4.2
LT Debt - Remaining Maturities	760.0	736.1	783.5	68.9	47.3
Total Long Term Debt, Supplemental	1,982.6	1,295.6	1,038.4	641.3	802.1
Capital Leases Due Within 1 Year	0.0	0.0	2.7	2.9	4.2
Capital Leases Due Wihtin 2 Years	0.0	0.0	2.7	2.9	4.2
Capital Leases Due Within 3 Years	0.0	0.0	2.7	2.9	4.2
Capital Leases Due Within 4 Years	-	-	2.7	-	2.8
Capital Leases - Remaining Payments	2.6	2.6	10.7	17.2	16.7
Interest Cost	-1.3	-1.3	-4.0	-5.7	-7.0
Total Capital Leases, Supplemental	1.3	1.3	17.4	20.1	25.0
Operating Lease Payments Due Within 1Y	29.1	26.0	42.9	34.4	27.8
Operating Lease Payments Due in 2Y	26.4	26.0	29.5	31.6	27.8
Operating Lease Payments Due in 3Y	25.1	22.1	26.8	28.7	23.6
Operating Lease Payments Due in 4Y	21.1	-	24.1	-	22.2
Operating Lease - Remaining Payments	25.1	44.1	92.6	142.0	108.4
Total Operating Leases, Supplemental	126.9	118.1	216.0	236.7	209.9
Unfunded Pension Liab./Oblig. - Domestic	255.1	-	-	-	-
Unfunded Healthcare Benefits/Obligations	124.2	-	-	-	-
Unfunded Pension Obligation	-	198.6	221.4	231.0	205.7
Pension Obligation	540.6	463.4	423.9	519.4	506.0
Plan Assets	358.2	315.5	315.3	401.7	386.4
Funded Status	-182.4	-148.0	-108.7	-117.6	-119.5
Unfunded Post Rtrmnt.Obligations	-	103.9	124.8	122.0	122.3
Total Funded Status	-561.7	-450.5	-454.8	-470.6	-447.6
Discount Rate - Europe	-	-	-	5.00%	5.40%
Expected Return on Plan Assets - Europe	-	-	-	3.39%	3.39%
Compensation Rate - Europe	-	-	-	1.80%	1.80%
Discount Rate - France	3.00%	4.35%	4.50%	-	-
Expected Rate of Return - France	3.39%	3.39%	3.39%	-	-
Compensation Rate - France	1.50%	2.00%	2.00%	-	-
Discount Rate - UK	4.00%	5.00%	5.20%	-	-
Expected Rate of Return - UK	5.97%	5.97%	6.37%	-	-
Compensation Rate - UK	3.00%	3.60%	4.10%	-	-
Discount Rate - Rest Europe	3.00%	4.35%	4.50%	-	-
Expected Rate of Return - Rest Europe	4.35%	4.35%	4.90%	-	-
Compensation Rate - Rest Europe	2.00%	3.00%	3.00%	-	-
Discount Rate - USA	3.75%	4.85%	5.25%	5.60%	6.20%
Expected Return on Plan Assets - USA	6.17%	6.17%	7.29%	7.45%	7.49%
Compensation Rate - USA	4.00%	4.00%	4.00%	4.00%	4.00%
Discount Rate - Long Service Awards	2.50%	4.00%	3.60%	-	-
Compensation Rate - Long Service Awards	1.80%	1.80%	1.80%	-	-
Net Pension Assets	-428.2	-338.8	-320.6	-335.7	-323.9
Net Post-Retirement Assets	-133.5	-115.5	-138.2	-137.7	-139.0
Net Assets Recognized on Balance Sheet	-561.7	-454.4	-458.8	-473.5	-462.9
Bonds -France	100.00%	100.00%	100.00%	100.00%	100.00%
Equity % - Foreign Plan 2	24.00%	-	-	-	-
Equity % - Foreign Plan 3	57.00%	-	-	-	-
Shares - UK	60.00%	57.00%	48.00%	-	-
Debt Securities % - Foreign Plan 2	68.00%	-	-	-	-
Debt Securities % - Foreign Plan 3	33.00%	-	-	-	-
Bonds- UK	40.00%	38.00%	44.00%	-	-
Other Investments % - Foreign Plan 2	0.00%	-	-	-	-
Other Investments % - Foreign Plan 3	0.00%	-	-	-	-
Other Investments % - Foreign Plan 2	8.00%	-	-	-	-
Other Investments % - Foreign Plan 3	0.00%	-	-	-	-
Monetary - UK	0.00%	1.00%	0.00%	-	-
Real Estate % - Foreign Plan 2	0.00%	-	-	-	-
Real Estate % - Foreign Plan 3	10.00%	-	-	-	-
Real Estate - UK	0.00%	4.00%	7.00%	-	-
Other - UK	0.00%	0.00%	1.00%	-	-
Shares - Europe	0.00%	14.00%	22.00%	26.00%	27.00%
Bonds - Europe	-	79.00%	78.00%	73.00%	71.00%
Property - Europe	0.00%	0.00%	0.00%	1.00%	1.00%
Other - Europe	0.00%	-	-	-	-
Other - Europe	0.00%	7.00%	0.00%	0.00%	1.00%
Shares - USA	-	57.00%	57.00%	55.00%	57.00%
Bonds - USA	-	23.00%	23.00%	23.00%	23.00%
Property - USA	-	11.00%	11.00%	13.00%	11.00%
Other - USA	-	9.00%	9.00%	9.00%	9.00%

Annual Cash Flows

Financials in: USD (mil)

	31-Dec-2012	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2012	Updated Normal 31-Dec-2011	Updated Normal 31-Dec-2010	Updated Normal 31-Dec-2009	Updated Normal 31-Dec-2008
Filed Currency	EUR	EUR	EUR	EUR	EUR
Exchange Rate (Period Average)	0.778237	0.71919	0.755078	0.719047	0.683679
Auditor	Ernst & Young Audit	KPMG Audit	KPMG Audit	KPMG LLP	KPMG LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified with Explanation	Unqualified with Explanation

Net Income	284.0	-20.9	463.5	-237.8	147.7
Depreciation	465.2	823.1	365.5	414.4	392.0
Deferred Tax	-29.6	122.4	-30.5	-40.3	-81.9
Gain/Loss on Sale of Assets	-33.4	-51.4	-14.6	-29.2	-55.6
Undistributed Affiliate Equity Earnings	-1.3	-11.1	-9.3	-11.1	-11.7
Working Capital	-54.0	-118.2	-103.3	534.0	81.9
Other Variation	10.3	11.1	5.3	-1.4	11.7
Cash from Operating Activities	641.2	755.0	676.8	628.6	484.1

Acquisition of Fixed Assets	-615.5	-589.6	-417.2	-418.6	-490.0
Assets Payables	-10.3	33.4	47.7	-64.0	7.3
Acq. Subsidiaries	-339.2	-806.5	-23.8	-4.2	-26.3
Increase in Loans	-77.1	-44.5	-55.6	-45.9	-71.7
Sale of Fixed Assets	52.7	18.1	22.5	37.5	58.5
Assets Receivables	3.9	0.0	-4.0	19.5	-20.5
Sale/Associates	-7.7	0.0	0.0	4.2	0.0
Sale/Investment	0.0	62.6	4.0	5.6	2.9
Repayment of Loans	24.4	16.7	54.3	118.2	39.5
Cash from Investing Activities	-968.9	-1,309.8	-372.1	-347.7	-500.2

Variation of Capital	60.4	13.9	30.5	0.0	24.9
Purchase of Own Shares	-16.7	-13.9	-9.3	-1.4	-36.6
Dividends-Shareholders	-104.1	-84.8	-49.0	-50.1	-67.3
Dividends-Minority	-1.3	0.0	-1.3	-1.4	0.0
Increase/Decrease in LT Debts	638.6	20.9	662.2	29.2	29.3
Increase/Decrease in ST Debts	-120.8	246.1	-419.8	-214.2	32.2
Cash from Financing Activities	456.2	182.1	213.2	-237.8	-17.6

Foreign Exchange Effects	7.7	-7.0	62.2	-12.5	46.8
Net Change in Cash	136.2	-379.6	580.1	30.6	13.2

Net Cash- Beginning Balance	326.4	732.8	117.9	93.2	84.8
Net Cash- Ending Balance	462.6	353.2	697.9	123.8	98.0
Cash Interest Paid	41.1	50.1	13.2	13.9	-
Cash Taxes Paid	203.0	236.4	156.3	72.3	86.3

Financial Health

Financials in: USD (mil)
Except for share items (millions) and per share items (actual units)

Key IndicatorsÂ USD (mil)
Â	Quarter Ending 30-Jun-2013	Quarter Ending Yr Ago	Annual Year End 31-Dec-2012	1 Year Growth	3 Year Growth	5 Year Growth
Total Revenue1 (?)	2,127.1	-5.24%	8,217.3	8.39%	12.90%	2.42%
Research & Development1 (?)	48.3	2.78%	190.2	12.12%	2.86%	-1.30%
Operating Income1 (?)	237.6	-10.78%	836.5	-9.21%	-	24.12%
Income Available to Common Excl Extraord Items1 (?)	146.2	-13.18%	539.7	-26.06%	-	31.95%
Basic EPS Excl Extraord Items1 (?)	2.33	-13.87%	8.68	-26.71%	-	31.21%
Capital Expenditures2 (?)	228.5	-19.82%	615.5	12.97%	16.75%	8.07%
Cash from Operating Activities2 (?)	81.4	-20.51%	641.2	-8.10%	3.35%	9.36%
Free Cash Flow (?)	-146.0	-	26.4	-83.19%	-49.03%	-
Total Assets3 (?)	7,388.2	-3.28%	7,323.6	3.92%	11.99%	4.50%
Total Liabilities3 (?)	4,414.4	-7.08%	4,307.4	3.72%	14.80%	5.15%
Total Long Term Debt3 (?)	1,392.4	31.53%	1,415.5	83.70%	132.70%	77.37%
Employees3 (?)	-	-	13759	-9.94%	0.86%	-1.30%
Total Common Shares Outstanding3 (?)	62.7	0.80%	62.6	1.48%	1.15%	0.69%
1-ExchangeRate: EUR to USD Average for Period	0.765841	Â	0.778237	Â	Â	Â
2-ExchangeRate: EUR to USD Average for Period	0.761519	Â	0.778237	Â	Â	Â
3-ExchangeRate: EUR to USD Period End Date	0.767034	Â	0.756600	Â	Â	Â

Key Ratios
Â	31-Dec-2012	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008
Profitability
Gross Margin (?)	19.67%	21.49%	21.05%	11.99%	14.08%
Operating Margin (?)	10.18%	12.15%	11.36%	-1.55%	3.50%
Pretax Margin (?)	9.49%	11.81%	11.15%	-1.89%	3.02%
Net Profit Margin (?)	6.57%	9.63%	8.73%	-3.87%	1.78%
Financial Strength
Current Ratio (?)	1.92	1.75	2.13	1.39	1.42
Long Term Debt/Equity (?)	0.47	0.27	0.26	0.05	0.03
Total Debt/Equity (?)	0.55	0.39	0.28	0.24	0.28
Management Effectiveness
Return on Assets (?)	7.74%	11.27%	9.77%	-4.06%	2.26%
Return on Equity (?)	18.78%	25.77%	21.20%	-9.08%	5.12%
Efficiency
Receivables Turnover (?)	6.12	5.89	5.26	4.81	5.16
Inventory Turnover (?)	5.51	5.12	4.80	4.44	4.74
Asset Turnover (?)	1.18	1.16	1.11	1.06	1.26

Market ValuationÂ USD (mil)
P/E (TTM) (?)	21.10	.	Enterprise Value2 (?)	8,368.0
Price/Sales (TTM) (?)	0.84	.	Enterprise Value/Revenue (TTM) (?)	1.03
Price/Book (MRQ) (?)	2.29	.	Enterprise Value/EBITDA (TTM) (?)	7.99
Market Cap as of 27-Sep-20131 (?)	7,057.1	.
1-ExchangeRate: EUR to USD on 27-Sep-2013	0.741884
2-ExchangeRate: EUR to USD on 30-Jun-2013	0.767034

Ratio Comparisons

Traded:

Industry: Chemical Manufacturing

Sector: Basic Materials

Financials in: USD (actual units)

As of 27-Sep-2013

	Company	Industry	Sector	S&P 500
Valuation Ratios
P/E Excluding Extraordinary (TTM) (?)	21.10	23.47	24.91	19.68
P/E High Excluding Extraordinary - Last 5 Yrs (?)	11.88	29.37	40.00	32.79
P/E Low Excluding Extraordinary - Last 5 Yrs (?)	6.00	11.37	8.69	10.71
Beta (?)	1.63	1.21	1.47	1.00
Price/Revenue (TTM) (?)	0.84	2.41	2.38	2.57
Price/Book (MRQ) (?)	2.29	4.13	3.90	3.67
Price to Tangible Book (MRQ) (?)	3.99	7.79	5.81	5.21
Price to Cash Flow Per Share (TTM) (?)	9.12	14.85	13.98	14.22
Price to Free Cash Flow Per Share (TTM) (?)	111.39	40.81	37.21	26.26

Dividends
Dividend Yield (?)	2.16%	1.82%	1.75%	2.26%
Dividend Per Share - 5 Yr Avg (?)	1.06	2.13	2.50	1.99
Dividend 5 Yr Growth (?)	19.14%	10.42%	1.06%	0.08%
Payout Ratio (TTM) (?)	-	31.59%	29.68%	25.98%

Growth Rates (%)
Revenue (MRQ) vs Qtr 1 Yr Ago (?)	-5.24%	20.41%	20.15%	15.58%
Revenue (TTM) vs TTM 1 Yr Ago (?)	-1.33%	15.77%	23.47%	17.69%
Revenue 5 Yr Growth (?)	2.42%	6.26%	7.38%	8.97%
EPS (MRQ) vs Qtr 1 Yr Ago (?)	-15.33%	2.09%	13.63%	19.49%
EPS (TTM) vs TTM 1 Yr Ago (?)	-45.74%	12.44%	42.74%	32.55%
EPS 5 Yr Growth (?)	30.99%	19.42%	8.05%	9.86%
Capital Spending 5 Yr Growth (?)	8.07%	11.74%	9.93%	-2.04%

Financial Strength
Quick Ratio (MRQ) (?)	1.06	1.35	1.78	1.24
Current Ratio (MRQ) (?)	1.73	2.18	2.73	1.79
LT Debt/Equity (MRQ) (?)	0.47	0.76	0.81	0.64
Total Debt/Equity (MRQ) (?)	0.64	0.82	0.88	0.73
Interest Coverage (TTM) (?)	9.80	13.67	11.21	13.80

Profitability Ratios (%)
Gross Margin (TTM) (?)	19.28%	33.98%	32.32%	45.21%
Gross Margin - 5 Yr Avg (?)	17.90%	32.62%	31.54%	44.91%
EBITD Margin (TTM) (?)	12.86%	19.75%	22.23%	24.43%
EBITD Margin - 5 Yr Avg (?)	14.08%	17.18%	18.43%	22.84%
Operating Margin (TTM) (?)	7.69%	14.67%	16.99%	20.63%
Operating Margin - 5 Yr Avg (?)	7.52%	13.24%	13.64%	18.28%
Pretax Margin (TTM) (?)	6.90%	14.52%	15.86%	17.95%
Pretax Margin - 5 Yr Avg (?)	7.10%	12.15%	12.57%	17.10%
Net Profit Margin (TTM) (?)	4.02%	10.56%	11.55%	13.65%
Net Profit Margin - 5 Yr Avg (?)	4.96%	8.73%	8.64%	12.10%
Effective Tax Rate (TTM) (?)	41.76%	27.39%	28.04%	28.45%
Effective Tax rate - 5 Yr Avg (?)	30.11%	27.15%	29.65%	29.92%

Management Effectiveness (%)
Return on Assets (TTM) (?)	4.36%	8.26%	8.05%	8.54%
Return on Assets - 5 Yr Avg (?)	5.73%	7.52%	7.49%	8.40%
Return on Investment (TTM) (?)	5.86%	6.33%	5.86%	7.90%
Return on Investment - 5 Yr Avg (?)	7.97%	5.79%	5.78%	8.27%
Return on Equity (TTM) (?)	11.12%	22.07%	18.78%	19.72%
Return on Equity - 5 Yr Avg (?)	13.03%	19.44%	17.45%	20.06%

Efficiency
Revenue/Employee (TTM) (?)	453,884.70	665,165.50	613,510.56	927,613.77
Net Income/Employee (TTM) (?)	18,242.61	84,229.57	82,492.56	116,121.92
Receivables Turnover (TTM) (?)	5.97	7.02	8.71	13.25
Inventory Turnover (TTM) (?)	5.06	8.06	8.16	14.53
Asset Turnover (TTM) (?)	1.08	0.80	0.82	0.93

Annual Ratios

Financials in: USD (mil)
Except for share items (millions) and per share items (actual units)

	31-Dec-2012	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008
Financial Strength
Current Ratio (?)	1.92	1.75	2.13	1.39	1.42
Quick/Acid Test Ratio (?)	1.18	1.00	1.37	0.77	0.72
Working Capital1 (?)	1,509.4	1,220.3	1,714.5	665.7	873.0
Long Term Debt/Equity (?)	0.47	0.27	0.26	0.05	0.03
Total Debt/Equity (?)	0.55	0.39	0.28	0.24	0.28
Long Term Debt/Total Capital (?)	0.30	0.19	0.21	0.04	0.03
Total Debt/Total Capital (?)	0.36	0.28	0.22	0.19	0.22
Payout Ratio (?)	26.65%	14.11%	14.36%	-21.08%	36.31%
Effective Tax Rate (?)	30.64%	17.93%	21.18%	-	40.59%
Total Capital1 (?)	4,681.5	3,952.9	3,810.0	3,186.6	3,555.7

Efficiency
Asset Turnover (?)	1.18	1.16	1.11	1.06	1.26
Inventory Turnover (?)	5.51	5.12	4.80	4.44	4.74
Days In Inventory (?)	66.26	71.27	76.01	82.27	77.03
Receivables Turnover (?)	6.12	5.89	5.26	4.81	5.16
Days Receivables Outstanding (?)	59.62	61.93	69.42	75.81	70.73
Revenue/Employee2 (?)	614,310	501,347	485,687	475,504	543,270
Operating Income/Employee2 (?)	62,536	60,926	55,162	-7,383	19,000
EBITDA/Employee2 (?)	97,310	88,798	82,793	24,610	44,750

Profitability
Gross Margin (?)	19.67%	21.49%	21.05%	11.99%	14.08%
Operating Margin (?)	10.18%	12.15%	11.36%	-1.55%	3.50%
EBITDA Margin (?)	15.84%	17.71%	17.05%	5.18%	8.24%
EBIT Margin (?)	10.18%	12.15%	11.36%	-1.55%	3.50%
Pretax Margin (?)	9.49%	11.81%	11.15%	-1.89%	3.02%
Net Profit Margin (?)	6.57%	9.63%	8.73%	-3.87%	1.78%
R&D Expense/Revenue (?)	2.31%	2.24%	2.53%	3.06%	2.66%
COGS/Revenue (?)	80.33%	78.51%	78.95%	88.01%	85.92%
SG&A Expense/Revenue (?)	6.76%	6.34%	6.98%	8.03%	6.98%

Management Effectiveness
Return on Assets (?)	7.74%	11.27%	9.77%	-4.06%	2.26%
Return on Equity (?)	18.78%	25.77%	21.20%	-9.08%	5.12%

Valuation
Free Cash Flow/Share2 (?)	0.42	2.51	4.29	3.58	-0.09
Operating Cash Flow/Share 2 (?)	10.54	11.43	11.17	10.73	7.62
1-ExchangeRate: EUR to USD Period End Date	0.7566	0.770327	0.745406	0.696986	0.719399
2-ExchangeRate: EUR to USD Average for Period	0.7566	0.770327	0.745406	0.696986	0.719399

Current Market Multiples
Market Cap/Earnings (TTM) (?)	21.12
Market Cap/Equity (MRQ) (?)	2.30
Market Cap/Revenue (TTM) (?)	0.84
Market Cap/EBIT (TTM) (?)	10.91
Market Cap/EBITDA (TTM) (?)	6.52
Enterprise Value/Earnings (TTM) (?)	25.89
Enterprise Value/Equity (MRQ) (?)	2.81
Enterprise Value/Revenue (TTM) (?)	1.03
Enterprise Value/EBIT (TTM) (?)	13.37
Enterprise Value/EBITDA (TTM) (?)	7.99

Stock Report

Stock Snapshot

Traded:

As of 27-Sep-2013 US Dollars

Recent Price	$83.39	EPS	$6.96
52 Week High	$87.77	Price/Sales	0.82
52 Week Low	$63.55	Dividend Rate	$1.80
Avg. Volume (mil)	0.21	Price/Earnings	17.61
Market Value (mil)	$5,235.56	Price/Book	2.29
		Beta	1.63

	Price % Change	Rel S&P 500%
4 Week	9.05%	2.46%
13 Week	18.23%	5.58%
52 Week	13.01%	-7.16%
Year to Date	5.28%	-8.44%

Stock History

Market Cap History
	30-Jun-13	% Chg	31-Mar-13	% Chg	31-Dec-12	% Chg	30-Sep-12	% Chg	30-Jun-12	% Chg
Total Common Shares Outstanding	63	0.3	63	0.0	63	0.5	62	0.0	62	0.9

Yearly Price History
	2013	% Chg	2012	% Chg	2011	% Chg	2010	% Chg	2009	% Chg
High Price	118.25	6.9	110.58	-1.4	112.12	54.0	72.80	65.3	44.03	-34.4
Low Price	84.00	44.5	58.15	16.8	49.80	50.3	33.13	168.3	12.35	-19.3
Year End Price	112.46	4.1	108.08	52.9	70.70	-0.1	70.80	91.4	37.00	116.6

Monthly Price History
Price Ending Date	Open	High	Low	Close	Volume
27-Sep-13	103.85	115.65	102.53	112.46	18,842
30-Aug-13	100.30	108.55	98.01	100.71	26,760
31-Jul-13	94.50	102.60	90.90	100.65	28,647
28-Jun-13	101.82	103.55	89.65	92.00	24,969
31-May-13	93.36	103.95	92.47	102.95	28,014
30-Apr-13	91.50	94.00	84.00	94.00	44,047
28-Mar-13	99.48	102.75	87.65	91.10	36,535
28-Feb-13	116.50	118.25	101.90	101.95	20,150
31-Jan-13	108.48	114.98	101.90	113.78	32,580
31-Dec-12	102.64	110.58	101.73	108.08	47,732
30-Nov-12	93.69	102.40	89.12	102.40	33,445
31-Oct-12	94.75	99.02	88.70	91.35	18,406
27-Sep-12	85.11	99.99	85.11	95.71	13,095

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.52
UK Pound	1	Rs.101.48
Euro	1	Rs.84.11

INFORMATION DETAILS

Report Prepared by :

NNA

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
----	NB	New Business	----

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.