Azelis Group N.v. · EURONEXT:AZE
Azelis — H1 2023 Earnings Presentation
20 slides from Azelis's earnings presentation, Aug 3, 2023
Slide 1: H1 2023 Update
H1 2023 Update August 3rd 2023
Slide 2: Agenda
Agenda 1• Key developments & business update 2• Financial performance 3• Outlook 4• Q&A 2 © 2023 Azelis group. All rights reserved
Slide 3: Disclaimer
Disclaimer This document may contain statements relevant to Azelis Group NV (the “Company”) and/or its affiliated companies (collectively “Azelis” or the “Azelis Group”) which are not historical facts and are hereby identified as “forward-looking statements”. Such forward looking statements, include
Slide 4: Key developments & business update H1 2023
Key developments & business update H1 2023 4 © 2023 Azelis group. All rights reserved
Slide 5: Key developments H1 2023
Key developments H1 2023 Volatile markets Resilient margins Progress on initiatives Balance Sheet • 6.1% total revenue • 5.8% increase in gross • Digital strategy on track • €245m Free Cash Flow growth (8.0% in constant profit (+76%) despite weaker o 118 customer portals* currency) demand environmen
Slide 6: Business update: Increased volatility as markets normalise
Business update: Increased volatility as markets normalise Organic growth: Demand slowdown • Volatile end-markets • Life Sciences: sustained demand in Food & Nutrition and Pharma • Industrial Chemicals: Weak demand across most end-markets M&A: Accelerated consolidation • 6 acquisitions representing
Slide 7: Innovation in Industrial Chemicals: CASE
Innovation in Industrial Chemicals: CASE Lithium reduction in construction • Lithium carbonate prices have been surging around the world, driven by their extensive use in industries ranging from medicine to batteries. • In addition to the significant costs, lithium mining is also very Innovation haz
Slide 8: Innovation in Life Sciences: Food & Nutrition
Innovation in Life Sciences: Food & Nutrition Lactose-free toffee caramel milk • In many parts of the world, dairy is a major part of daily consumption, but an increasing number of consumers are developing a sensitivity to lactose. With that in mind, our Food & Nutrition lab team worked Innovation a
Slide 9: Our commitment to sustainability
Our commitment to sustainability Action 2025 Our commitment Progress to date of our revenue from of our revenue in Sustainable TfS*-assessed 2022 was from Formulations 80% principals targeted 75.2% TfS-assessed by 20251 principals reduction in Scope reduction Minimized 1 & 2 carbon 50% intensity tar
Slide 10: Financial performance H1 2023
Financial performance H1 2023 10 © 2023 Azelis group. All rights reserved
Slide 11: Headline P&L H1 2023
Headline P&L H1 2023 Azelis Group Highlights Reported Reported Constant Q2 2023 Q2 2022 H1 2023 H1 2022 (EUR m) Change Change Currency Life Sciences 647.9 615.8 5.2% 1,316.9 1,208.6 9.0% 10.8% Industrial Chemicals 400.5 427.9 -6.4% 824.4 810.4 1.7% 3.7% Group Revenue 1,048.4 1,043.7 0.4% 2,141.2 2,0
Slide 12: Headline growth H1 2023
Headline growth H1 2023 Azelis Performance F/X M&A Growth Organic Total H1 2023 H1 2022 (EUR m) Translation Contribution Growth Growth EMEA 944.4 916.4 -3.2% 8.4% -2.2% 3.1% Americas 734.9 762.9 0.6% 8.9% -13.1% -3.7% Asia Pacific 461.9 339.7 -4.3% 33.4% 6.9% 36.0% Group Revenue 2,141.2 2,019.0 -1.9
Slide 13: Regional financial update
Regional financial update EMEA Americas Asia Pacific Adjusted Adjusted Adjusted 13.1% 14.8% 14.1% 13.6% 8.4% 8.9% EBITA EBITA EBITA margin +3.1% margin -3.7% margin € 944 € 916 € 763 € 735 +36.0% € 462 Revenue Revenue Revenue € 340 55,5% 56,7% 46,7% Conversion Conversion Conversion 54,8% margin 53,4
Slide 14: Net Profit
Net Profit Azelis Group Net profit drivers H1 2023 H1 2022 (EUR m) Operating profit 225.0 211.8 • 6% increase in Operating profit • Stable gross profit Net financial expense -71.2 -21.1 • EBITA growth from effective cost Financial income 3.4 0.3 management Financial expense -74.6 -21.4 • Financial e
Slide 15: Cashflow Bridge
Cashflow Bridge Group Cashflow CF Drivers 279 (EUR m) H1 2023 H1 2022 263 245 Operating profit 225.0 211.8 225 Amortization 32.6 28.1 Adjustments 5.8 2.7 Adjusted EBITA 263.4 242.6 FCF conversion ratio Depreciation 15.8 12.4 92.2% Adjusted EBITDA 279.2 255.0 Change in working capital -15.1 -96.9 Lea
Slide 16: Working Capital
Working Capital Working Capital Evolution of NWC* Receivables Inventory Payables NWC/ 10.9% 11.1% 15.3% 13.8% 15.4% 15.4% Revenue 1.100 900 611 650 700 628 467 500 300 262 268 443 491 524 376 100 200 218 -100 -227 -235 -369 -463 -469 -488 -300 -500 2019 2020 2021 2022 Q2 2022 Q2 2023 DSO 34 35 44 37
Slide 17: Net debt
Net debt 2.2x 2.6x +48 +3 +8 +13 -200 +558 1.621 -250 +34 +6 1.430 +48 1.162 Net Debt 31 Operational Income tax Net Interest Capex M&A* Leases Dividend Purchase of Transaction Capital Net Debt 30 Dec 2022 CF paid payment to treasury Costs increase Jun 2023 group shares shareholders x Leverage ratio
Slide 18: Outlook
Outlook 18 © 2023 Azelis group. All rights reserved
Slide 19: Outlook
Outlook Our strategy of driving growth is underpinned by a constantly strengthening lateral value chain, supported by continuous investments in innovation capabilities and digitalization, as well as a commitment to sustainability to create long-term value. In line with this, we are positive that we
Slide 20: H1 2023 Update Q&A
H1 2023 Update Q&A Contact Investor Relations investor-relations@azelis.com +32 (0) 478 51 23 89 20 © 2023 Azelis group. All rights reserved