Slide 1: H1 FY23 Half Year Results Presentation
/\ accsys H1 FY23 HALF YEAR RESULTS PRESENTATION For the six months ended 30 September 2022 22 November 2022 Accoya® cladding, decking and walled garden snug - Vilnius, Lithuania © Accsys 2022 1 vA AC Cc SYS
Slide 2: Disclaimer
DISCLAIMER NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION No representation or warranty, express or implied, is made or given by or on behalf of Ac
Slide 3: Agenda
AGENDA A j Results Overview 2 Financial Results 3 Business Review & Outlook = /\accsys
Slide 4: H1 Results Overview
H1 RESULTS OVERVIEW + Good revenue growth and steady EBITDA, reflecting increased average sales prices, despite lower volumes REVENUE! * Gross profit? up 5%, supported by Accoya® price increases ° offsetting higher raw materials costs €58.9m +5% * 30% increase in Accoya® profit per cubic metre SALES
Slide 5: Accoya® Color pool cover, private residence - Swiss Alps
Accoya® Color pool cover, private residence - Swiss Alps
Slide 6: Financial Highlights
FINANCIAL HIGHLIGHTS H1FY23 HiFy22 Change € million % z < Group Revenue 58.9 56.2 5% 5 Gross Profit 18.1 72 5% z Underlying EBITDA‘ 45 45 - oO 2 Underlying EBIT' 1.0 15 (33%) z z Non-cash exceptional item - Impairment of Tricoya Segment assets (58.0) - z Group operating cashflow? 52 5.0 g Ed Period
Slide 7: • 7% (↓1%) • 17% 27% (↓1%) (↑4%) • 27% 22% (↑3%) (↓5 %)
• 7% (↓1%) • 17% 27% (↓1%) (↑4%) • 27% 22% (↑3%) (↓5 %) •
Slide 8: Gross profit bridge: FX, EPP, sales price
FX EPP 1.5 0.7 8.9 Sales price increase
Slide 9: Mitigating Raw Material Cost Increases
MITIGATING RAW MATERIAL COST INCREASES Net Acetyls cost per m? (€ per m) 500 + Net acetyls cost increased by 49% vs H1 FY22 49% - Continued to benefit from ACA sales - natural partial a hedge - Energy Price Premium (EPP) implemented to mitigate Net acetyls cost volatility + Raw wood costs moderately
Slide 10: Growth in Profitability
GROWTH IN PROFITABILITY 5 YEAR PERFORMANCE er * 124% increase in manufacturing Accoya® segment profitability 2 profit per m3 of Accoya® sold vs FY19: Manufacturing Manufacturing profit/m3 (€) margin (%) . - S00 10% Increased sales prices 400 33% 35% - Economies of scale 600 30% target 30% 30% 30% =
Slide 11: Net Debt Bridge
NET DEBT BRIDGE Net Debt + Working capital includes (€ million) I--- Investing activities ---I_||---- Financing activities ----I] €12m inventory increase, ! ahead of Arnhem R4 ramp up & temporary build-up in | | | | | | 0.0 | | I I WIP and Finished goods, (10.0) | | | | expected to decrease in H2 :
Slide 12: 1. As at 30 September 2022
• • • • • 1. As at 30 September 2022
Slide 13: Business Review & Outlook
Supplier: © Delta Millworks ACCSYS BUSINESS REVIEW & OUTLOOK Rob Harris, Chief Executive -# Accoyacladding- Edgewater Public Market, Colorado, USA /\ accsys © Accsys 2022 8
Slide 14: Overview
OVERVIEW CHANGING WOOD TO CHANGE THE WORLD 1 World-leading product & technology High performance, sustainable wood products, with world leading technology ap ] Significant market opportunity mm Currently ~2% penetration of our 2.6 million m3 global achievable market Up to 1 million m$ achievable mar
Slide 15: Extensive know-how and over 400 patents
• • • • • • • • • We have extensive know-how and over 400 patents covering 28 distinct inventions in 45 countries.
Slide 16: Accoya® H1 FY23 Performance
ACCOYA® H1 FY23 PERFORMANCE 6% growth in revenues, 30% improvement in profitability per m*: Total first half revenue of €58.7m * Capex and COVID challenges largely behind us * Gross profit of €755/m° representing a 30% increase year on year + Price increases, together with Energy Pricing Premium, of
Slide 17: Accoya® Strategic Development: Arnhem
accoya 0) ACCOYA® STRATEGIC DEVELOPMENT: ARNHEM New R4 reactor now operational + Unexpected delays coming on stream - construction downtime leading to 19% sales volume decline in H1 + Issues largely resolved - R4 fully operational and performing in line with expectations + Targeting output to full c
Slide 18: Accoya® Strategic Development: USA JV Plant
ACCOYA® STRATEGIC DEVELOPMENT: USA JV PLANT Construction underway - on schedule and to budget (US$136m) - for commercial operation March 2024 + JVinvestment decisions and funding agreement in March 2022 * Ground broken in April and core drilling completed Strong project leadership and cost managemen
Slide 19: Market Demand: Case Studies
ACCOYA® accoya Q) MARKET DEMAND: CASE STUDIES Google new London HQ, Kings Cross, London, UK Accoya® specified for exterior frame of state of the art London HQ + Selected for sustainability and performance - Cradle to Cradle a requirement under Google's building materials health code + 11-storey buil
Slide 20: Tricoya® H1 FY23 Performance
TRICOYA® H1 FY23 PERFORMANCE Tricoya® revenue represents 27% of total Group sales volume Tricoya® revenue up 2% in H1 + Accoya® sold to Tricoya® customers down 9% in volume, up 2% in revenue at €8.7m + Revenue growth attributed to both price increases and Energy Price Premium + Price increase of c.3
Slide 21: Tricoya®: November 2022 Consortium Restructure
TRICOYA® tricoya: NOVEMBER 2022: CONSORTIUM RESTRUCTURE Structure simplified - Accsys now owns 100% of Tricoya® and IP + Share swap agreement with INEOS and Medite - Partners received 11.9m new Accsys shares, representing 5.74% of issued share capital + INEOS and Medite supply and offtake agreements
Slide 22: Tricoya® Hull Project Status & Outlook
TRICOYA® HULL PROJECT STATUS & OUTLOOK Plant construction substantially complete, commissioning progressing Project Hold for at least six months from November 2022: + C£€0.5m monthly cost during Hold Period * Further validation work ongoing + Allows focus on cash generation from Accoya® to strengthe
Slide 23: Summary
SUMMARY H1 Results Outlook for H2 . . + Revenue and profit growth to accelerate as R4 ramps up * Good EBITDA in H1 despite lower sales volumes + Targeting 50% growth in sales volumes vs. H1 + Pricing power, growing profitability despite cost headwinds + Continued pricing power and initiatives to off
Slide 24: Appendix
APPENDIX Changing wood to change the world
Slide 25: Segmental Summary
SEGMENTAL SUMMARY Underlying EBITDA - H1 FY23 vs H1 FY22 H1 FY23 &m Accoya® Tricoya® Cononte Group - Emilion Revenue 58.7 0.2 0.0 58.9 —_— Gross Profit 18.1 0.0 0.0 18.1 5 foo fom 0.1 os EBITDA 108 (14) (5.0) 44 (0.3) (03) =— Underlying EBITDA 10.4 (1.4) (4.5) 45 4 “" (0.2) H1 FY22 €m Accoya® Tricoy
Slide 26: Profitability Progression
PROFITABILITY PROGRESSION 5 YEAR PERFORMANCE Group Underlying EBITDA 2019-2023 € million + Group Underlying EBITDA driven by Accoya® business growth + EBITDA growth has grown with 59 economies of scale, pricing, 58 and capacity + Further benefits expected H2 AS =H from expanded Accoya® plant I and p
Slide 27: Financing
FINANCING * Total Project cost of c. $136m- Funded via: * Accsys loan: o $70m8 year loan $10m RCF - First Horizon Bank, o €25m committed loan to Tricoya UK, further €8m loan ' ‘ provided in H1 FY23, committed in November 2022 o €19.4 lent under the facility by 30 September 2022 Tennessee, USA o $66m