Slide 1: Accsys Technologies plc Interim Results
26 NOVEMBER 2024 Accsys Technologies plc Interim Results For the six months to 30th September 2024 Oakencroft Farm and Winery, Virginia, USA. Photo credit: Ansel Olsen, Susphin Architecture
Slide 2: Agenda
AGENDA 01 02 03 04 Overview Financial Business Outlook Review Review 2
Slide 3: Overview
01 Overview Dr Jelena Arsic van Os Chief Executive Officer 3
Slide 4: H1 FY25 Highlights: Robust growth and EBITDA momentum
H1 FY25 HIGHLIGHTS Robust growth and EBITDA momentum 10% increase in total Accoya sales¹ volumes at 31,553m³ • Strong financial and operational performance for the period – transformation actions working 4% increase in revenue at €74.1m (inc. joint venture)² • Robust customer demand for Accoya in a
Slide 5: Financial Review
02 Financial Review Sameet Vohra Chief Financial Officer 5
Slide 6: Financial Overview – Good Financial Progress
FINANCIAL OVERVIEW – GOOD FINANCIAL PROGRESS €million H1 FY25 H1 FY24 Change Sales volumes (m³) Group 30,372 28,807 5% US JV – 100% 1,181 - - Total 31,553 28,807 10% Revenues Group 72.2 71.2 1% US JV – 60% share 1.9 - - Aggregated revenue 74.1 71.2 4% Group (excl US JV) Gross profit 22.2 20.3 9% Gro
Slide 7: Accoya H1 FY25 Performance
ACCOYA H1 FY25 PERFORMANCE Total Accoya sales volume up 10%, with growth ahead of broader building materials market H1 FY25 Growth Total sales volumes1 31,553m3 + 10% Strong performance in UK & Ireland (+24%) and North America (+18%) Wood revenue2 €67.4m + 7% Sales volume by end H1 FY25 Growth North
Slide 8: Accoya for Tricoya H1 FY25 Performance
ACCOYA FOR TRICOYA H1 FY25 PERFORMANCE 7% growth in sales volumes of Accoya for Tricoya, reinforces our belief in the long-term market potential for Tricoya panel products. H1 FY25 Growth Revenue €12.7m +11% Revenues from Accoya for Tricoya represent 28% (H1 FY24: 29%) of total Group sales volumes S
Slide 9: EBITDA Segmental Breakdown in H1 FY25
EBITDA SEGMENTAL BREAKDOWN IN H1 Group adjusted EBITDA FY25 (€ million) 20.0 Adjusted EBITDA increased by €2.4m to €4.0m (H1 FY24 : €1.6m) Strong financial performance from the 15.0 Accoya segment (excl. Accoya USA) Tricoya UK represents costs incurred (3.1) during the period in respect of the Hull
Slide 10: EBITDA Progression in H1 FY25 Reflecting Financial & Operational Improvements
EBITDA PROGRESSION IN H1 FY25 Group adjusted EBITDA REFLECTING FINANCIAL & (€ million) OPERATIONAL IMPROVEMENTS Revenue Cost of sales Other operating costs JV 10.0 Sales volume - 5% increase in sales volumes from Arnhem Average sales price reflects selective discounting to grow market share North Am
Slide 11: Net Debt Bridge
NET DEBT BRIDGE Net Debt (€ million) 70.0 Continued strong operational cashflow and focus on deleveraging 60.0 the balance sheet 50.0 Capex – €0.7m sustaining capex in Arnhem 1.5 40.2 & Barry 40.0 7.2 7.0 Interest: (8.3) 2.2 30.0 0.7 • Interest paid €0.8m (ABN AMRO facility) (0.1) • Interest capital
Slide 12: Business Review
03 Business Review Dr Jelena Arsic van Os Chief Executive Officer 12
Slide 13: Market Overview: Good topline growth in challenging market
MARKET OVERVIEW Good topline growth in challenging market Demand is resilient with 10% increase in sales volumes significantly outperforming the broader market¹ Challenging market conditions persist in the global building products market Continued trends favoring premium wood building materials and
Slide 14: Project Highlights
PROJECT HIGHLIGHTS Accoya Color decking Accoya cladding by Vincent Timber Accoya cladding by James Latham RHS Chelsea Flower Show - UK Unusual Rigging HQ - UK Willowburn Retail Park - UK Photography – Tammy Marlar Photography – Rachel Ferrimen Photography – Twofresh Accoya Color decking by Hobi wood
Slide 15: Accoya USA
ACCOYA USA A second Accoya production site in one of the most attractive markets Joint Venture 60:40 with Eastman Chemical Company Commercially operational since the end of the summer with manufacturing operations on track 43,000m³ additional capacity – with ramp up over next three years 15 L-R Stev
Slide 16: Sales and Marketing Boost
SALES AND MARKETING BOOST Bringing Accoya to more N.A. customers SALES CHANNEL – GROW NUMBER OF OUTLETS DISTRIBUTION – EXPAND FOOTPRINT AT HIGH DEMAND AREAS Grow selectively Grow aggressively Demand generation Dual distribution on all high Increase significantly number Keep investing heavily on dema
Slide 17: Tricoya
TRICOYA Continued strong future for Tricoya Accoya for Tricoya sales: • Revenue increased 11% in H1 FY25 • Represents 28% of Group sales volumes The Group is committed to producing Accoya for Tricoya from Arnhem for our long-standing customers 17
Slide 18: Operational Highlights
OPERATIONAL HIGHLIGHTS Good progress made on FY25 growth targets to provide clear drivers to shareholder value FY25 operational targets Accoya USA now commercially operational On track for cost savings target of €3m in year, in addition to savings from Hull Progress on FOCUS strategy Good pro
Slide 19: Outlook
04 Outlook Jelena Arsic van Os Chief Executive Officer 19
Slide 20: Outlook and Priorities FY25
OUTLOOK AND PRIORITIES FY25 • Full year results to be significantly ahead of market consensus1 • Sales volumes expected to keep growth momentum • Expanding commercial presence in N.A. and Europe while enhancing customer experience • Maintain Gross margin • Delivery of full year benefit of €3m actual
Slide 21: Yn a g &
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Slide 22: 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