Slide 1: HY25 Results
BODYCOTE. HY25 RESULTS. 30 July 2025
Slide 2: Disclaimer
Disclaimer Bodycote plc (the ‘Group’) is providing the following cautionary statement: this presentation has been prepared solely to provide additional information to shareholders to assess the Group’s strategies and the potential for those strategies to succeed. The presentation should not be relie
Slide 3: Agenda
AGENDA 01 INTRODUCTION 02 HY25 RESULTS 03 STRATEGY UPDATE 04 Q & A Bodycote plc Half Year 2025 Results 3
Slide 4: Introduction. Jim Fairbairn
INTRODUCTION. JIM FAIRBAIRN. Bodycote plc Half Year 2025 Results 4
Slide 5: Strategic progress in challenging end markets
01 INTRODUCTION Strategic progress in challenging end markets Key highlights: 01 Challenging market conditions, though revenue improved sequentially vs soft H2 2024 02 Good momentum on Optimise; new actions deliver increased benefit for lower costs 03 Progress on future growth initiatives, including
Slide 6: End Market Environment
01 INTRODUCTION End Market Environment Core revenue down 3.6% year-on-year, but up 4.3% sequentially versus weak H2 2024: ▪ Aerospace growth accelerated through H1 as supply chain conditions improved ▪ Demand remains weak in Automotive & Industrial Markets, albeit with sequential improvement vs H2 2
Slide 7: HY Results. Ben Fidler
HY RESULTS. BEN FIDLER. Bodycote plc Half Year 2025 Results 7
Slide 8: Key highlights
02 HY25 RESULTS Key highlights Continued focus on cost control; balanced capital deployment to drive returns Core revenue growth Core operating margin Earnings per share (3.6)% 15.4% 21.3p Organic year-on-year 1 -220bps vs H1 24 H1 24: 25.0p Cash conversion Leverage Shareholder returns 68% 0.6x ~£60
Slide 9: Results summary
02 HY25 RESULTS Results summary Organic Total £m, unless stated HY 2025 HY 2024 Change Change Challenging market conditions and Specialist CORE 1 Revenue 351.9 374.6 -3.6% -6.1% Technologies phasing headwind Adjusted operating profit 54.3 65.9 -14.7% -17.6% Core adjusted operating margin of 15.4%, w
Slide 10: Lower revenue partly offset by cost control
02 HY25 RESULTS Lower revenue partly offset by cost control ▪ Profit reduction in H1 reflects lower organic revenue and FX headwind, partly offset by reduced Central costs Adjusted operating profit (£m) Overhead savings Predominantly & lower long-term reflects weaker incentive cost USD rate 66.8 1.7
Slide 11: Specialist Technologies
02 HY25 RESULTS Specialist Technologies Improving momentum through H1, with recovery in H2 underpinned by new orders HY HY Organic Total ▪ Revenue decline reflects phasing headwinds, challenging Industrial £m 2025 2024 Change Change and Automotive markets and end of Energy project work Revenue 105.6
Slide 12: Precision Heat Treatment
02 HY25 RESULTS Precision Heat Treatment Sequential growth vs H2 2024 and continued cost control HY HY Organic Total ▪ Organic revenue -1.8% YoY £m 2025 2024 Change Change ▪ Revenue +7% higher sequentially vs H2 2024 with strong Revenue 246.3 258.3 -1.8% -4.6% improvement in all end markets compared
Slide 13: Cash flow statement
02 HY25 RESULTS Cash flow statement Headline operating cash conversion broadly stable year-on-year £m H1 2025 H1 2024 Change Adjusted operating profit 55.1 66.8 -11.7 Depreciation & amortisation 35.1 37.7 -2.6 EBITDA reflects lower adjusted operating profit Other - 0.1 -0.1 Adjusted EBITDA 90.2 104.
Slide 14: Capital allocation
02 HY25 RESULTS Capital allocation Strong balance sheet enables further capital deployment to drive returns ▪ Net debt (excluding leases) of £112.5m at period end; leverage remains low at 0.6x net debt/EBITDA ▪ Modest increase in capex investment to support growth strategy, focused on Aerospace in N
Slide 15: Technical guidance
02 HY25 RESULTS Technical guidance Guidance FY 2024 HY 2025 FY 2025 Reported Reported Prior Updated Translational foreign exchange Revenue impact £(24.3)m £(9.6)m ~£(7)m ~£(12)m Estimated translational FX impact for Adjusted operating profit impact £(4.9)m £(2.0)m ~£(1)m ~£(3)m FY 2025 based on curr
Slide 16: Strategy Update. Jim Fairbairn
STRATEGY UPDATE. JIM FAIRBAIRN. Bodycote plc Half Year 2025 Results 16
Slide 17: Executing our strategy at pace
03 STRATEGY UPDATE Executing our strategy at pace ▪ Programme progressing on track with lower execution costs to-date ▪ More than half of site consolidations now underway and ~20% completed Optimise ▪ Enhanced scope of programme & significantly reduced net cash costs ▪ Continued progress on HEAT pro
Slide 18: Optimise programme update
03 STRATEGY UPDATE Optimise Optimise programme update Delivering a greater benefit for materially lower cost ▪ Strong execution of original plan at lower cost: latest total cash cost estimate £5m below initial guidance ▪ Scope increased with additional sites and overhead actions, with attractive pay
Slide 19: Perform: becoming consistently high-performing
03 STRATEGY UPDATE Perform Perform: becoming consistently high-performing H E A T Enhanced Service Quality Case Study Eden Prairie, MN, USA: Results: ▪ Implemented Daily Management and 5S1 ▪ Turnaround Time reduced by >20% from FY23 ▪ Streamlined order entry and scheduling processes ▪ OTIF2 increase
Slide 20: Growth strategy in action: A&D
03 STRATEGY UPDATE Grow Growth strategy in action: A&D Multiple levers to drive growth in our target areas 1 Sales capability & focus 2 Organic investment 3 Enhancing value proposition Actions: Actions: Actions: ▪ Enhanced sales team capability ▪ Two major US site upgrades ▪ ‘One-stop shop’ in South
Slide 21: Outlook. Jim Fairbairn
OUTLOOK. JIM FAIRBAIRN. Bodycote plc Half Year 2025 Results 21
Slide 22: H2 profit improvement
04 OUTLOOK H2 profit improvement Market environment Specialist Technologies Optimise benefits ▪ Macro outlook remains ▪ H2 trading improvement ▪ Full year Core benefit of uncertain expected, supported by: £4-5m, with second-half – Delivery phasing of HIP PF weighting ▪ Continued growth in Aerospace
Slide 23: Unchanged outlook
04 OUTLOOK Unchanged outlook ▪ Outlook for the full year unchanged and in line with market expectations1 ▪ Uncertain macro-economic environment; focus remains on operational delivery and strict cost control ▪ Improved adjusted operating profit expected in the second half, supported by Optimise benef
Slide 24: Q & A
Q&A Bodycote plc Half Year 2025 Results 24
Slide 25: Appendix
Appendix Bodycote plc Half Year 2025 Results 25
Slide 26: Optimise programme
APPENDIX Optimise programme Updated view of costs, charges and benefit phasing Updated Non-core reflecting expanded scope to be provided in H2; Pro-forma Non-core revenue ~£80m (FY24) 2024 2025 2026-27 Total programme Broadly Net cash costs £3.9m Remainder weighted to 2026 £10-15m neutral P&L charge
Slide 27: Non-core
APPENDIX Non-core Optimise programme results in reduced Non-core revenue HY HY Organic Total ▪ Plan to exit all Non-Core sites as part of the Optimise programme £m 2025 2024 Change Change ▪ Revenue reduction driven largely by early site closures and Revenue 17.1 24.4 -21.1% -29.9% beginning of reven
Slide 28: Statutory income statement
APPENDIX FY 2024 Statutory income statement £m H1 2025 H1 2024 Revenue 369.0 399.0 Adjusted operating profit 55.1 66.8 Amortisation of acquired intangible assets (4.8) (5.3) Acquisition costs - (2.4) Exceptional items (9.1) (28.3) Operating profit 41.2 30.8 Net finance charge (4.6) (4.6) Profit befo
Slide 29: HY 2025 Cash flow statement
APPENDIX HY 2025 Cash flow statement £m HY 2025 HY 2024 Adjusted EBITDA 90.2 104.6 Net capital expenditure (38.0) (34.6) Principal element of lease payments (6.8) (6.7) Provisions movement (0.1) (6.4) Working capital movement (7.6) (7.7) Adjusted operating cash flow 37.7 49.2 Restructuring (7.0) (0.
Slide 30: Foreign Exchange
APPENDIX Foreign Exchange B/S currency (at closing rates) HY 2025 HY 2024 EUR 1.17 1.18 USD 1.37 1.26 SEK 13.06 13.40 TRY 54.53 41.43 Annual Annual P&L currency % of HY 2025 revenue profit (at average rates) HY 2025 HY 2024 revenue sensitivity1 sensitivity1 EUR 1.19 1.17 33% ~£2.5m ~£0.4m USD 1.30 1
Slide 31: Definitions
APPENDIX Definitions Term Definition Organic measures At constant currency, and excluding corporate acquisition and disposal activities from the current and comparative periods Adjusted operating profit Operating profit before acquisition costs, exceptional items and amortisation of acquired intangi