Essentra Plc · LSE:ESNT
Essentra — H1 2025 Earnings Presentation
33 slides from Essentra's earnings presentation, Jul 29, 2025
Slide 1: Essentra plc Half Year Results 2025
Essentra plc Half Year Results 2025 29 July 2025
Slide 2: Welcome and Overview
Welcome and Overview L£ Scott Fawcett CEO 5 E JESSENTRA 2
Slide 3: Agenda
Agenda ou kW NY = H1 2025 summary Financial performance Regional update Strategic update Outlook Q&A Dp ES ennenennEneEnee E JESSENTRA 3
Slide 4: H1 2025 summary
• o o o • • • • • • • • • 1. Like-for-like excluding the impacts of foreign exchange 2. On a continuing operations basis, before amortisation of acquired intangible assets and adjusting items 4
Slide 5: Financial performance
Financial performance Rowan Baker CFO = E JESSENTRA 5
Slide 6: Financial performance overview
1. On a continuing operations basis, before amortisation of acquired intangible assets and adjusting items 2. Presented excluding lease liabilities 6
Slide 7: Earnings and adjusted items
• • • • 1. Adjusted to exclude intangible amortisation of £5.5m and an adjusting items pre-tax charge of £5.7m along with associated tax impact 7
Slide 8: Revenue like-for-like excluding foreign exchange
• • • • • • • 1. Like-for-like excluding the impacts of foreign exchange 8
Slide 9: Cash flow and pension charges
• • 1. Defined benefit pension scheme charges which no longer pertain to the continuing operations of the Group 2. Release of provisions associated with property and historic indemnity 9
Slide 10: Net debt and liquidity
• • • • • • • 68.2 68.7 • • • • 1. Adjusted to exclude amortisation of acquired intangible assets and adjusting items 2. Presented excluding lease liabilities 3. Movement in loan hedging derivatives, pre-paid facility fees and foreign exchange 10
Slide 11: Medium term c.18% adjusted operating margin target
Medium term c.18% adjusted operating margin target c.5% organic; c.10% total CAGR Pricing discipline offsetting inflation LI Enhanced operating Fe Market leverage and scale re growth through focus on Variable | | | Market footprint, product and comp . \ Share J end-markets Efficiencies Investment Pr
Slide 12: Regional update
Regional update Scott Fawcett CEO = E JESSENTRA 12
Slide 13: EMEA
EMEA Signs of improvement in market conditions Revenue -4.5% constant currency compared to the prior year Year on year new order growth, supporting momentum at the start of H2 Strength in access hardware (led by Turkey) serving faster growing end-markets including energy transformation and digital i
Slide 14: Americas
Americas Improving opportunity pipeline and customer activity levels. Focus on gaining market share H1 2025 H2 2024 H1 2024 . 9 . Revenue +0.7% constant currency compared to the prior Revenue 50.0 475 513 year, supported by pricing initiatives Gross Profit 19.4 18.5 19.5 * Stabilisation within the w
Slide 15: APAC
APAC China export market to rest of the APAC region continues to drive growth * Revenue +9.5% constant currency compared to the prior year * Mixed domestic market in China; growth continues to be led by the export market to the rest of the APAC region + Access hardware product range and higher growt
Slide 16: Strategic update
Strategic update Dp ES ennenennEneEnee E JESSENTRA 16
Slide 17: Driving growth through market focus and targeted strategic investment
Driving growth through market focus and targeted strategic investment Breadth and depth of product expertise across low-cost components: Our strong balance sheet enables disciplined investment in future growth through: Protection New product introductions C Electronics hardware Susroinable product o
Slide 18: A diverse footprint with well-positioned supply chains
A diverse footprint with well-positioned supply chains ~90% of Americas and EMEA manufactured ~60% of China manufactured * Predominantly local-for-local products are sold in region products are sold in region manufacturing and distribution model with a regional management structure * Diverse footpri
Slide 19: Sustainability focus is enhancing our proposition
Sustainability focus is enhancing our proposition We continue to innovate and develop relationships with our customers . . ‘. . sae ESG Ratings to identify new commercial opportunities * The sustainability Centre of Excellence continues to drive the CDP 2024: development of new and more sustainable
Slide 20: Product categories by region
• • • • Electronics hardware EMEA Machine and Automation Americas Access hardware • APAC Fastening solutions 20
Slide 21: Outlook
Outlook Dp ES ennenennEneEnee E JESSENTRA 21
Slide 22: Volume trend chart
£60,000,000 59 £50,000,000 57 £40,000,000 £30,000,000 55 £20,000,000 53 £10,000,000 51 £0 49 (£10,000,000) 47 (£20,000,000) (£30,000,000) 45 1. Internal metric. Volume defined as: same customers, buying the same products. Excluding price, new customers, and new product sales. 23
Slide 23: 2025 outlook
2025 outlook The Board's expectations remain unchanged * The group has traded as anticipated through H1 * Management retains its cautious approach to growth in 2025 given the mixed trading environment * H2 margin expansion supported by * Maintenance of Q2 exit volumes * Enhanced pricing initiatives
Slide 24: Q&A
Q&A I E JESSENTRA 24
Slide 25: Essentra plc Half Year Results 2025
Essentra plc Half Year Results 2025 29 July 2025
Slide 26: Appendices
Appendices I E JESSENTRA 26
Slide 27: Net debt excluding IFRS-16 lease liabilities
Note: 1. Excluding IFRS-16 lease liabilities 27
Slide 28: Product expertise across diverse industries
Product expertise across diverse industries We uniquely bring together a wide range of product capabilities, which enables us to serve a wide range of end-customer markets . J Fastening Ss + We continue to focus on customer solutions sectors where we can gain market share Se-= * Growth of access har
Slide 29: ESG Framework
ESG Framework Planet Driving resource and energy efficiency, reducing emissions and embracing renewables Culture Asafe, supportive work environment that champions equality and celebrates diversity <S) © Our Communities Communities Working with suppliers to ensure ethical practices and contribute to
Slide 30: A clear capital allocation policy
A clear capital allocation policy + Capital investment remains core to strategic growth + Capex to be maintained between 4-5% of sales 5 nnova + Sustainable new product development and propositions + Digitalising the customer experience nes alee + Strong pipeline of potential acquisitions + Addition
Slide 31: Income Statement — Reported basis
Income Statement — Reported basis H1 2025 H1 2024 £m £m Adjusted operating profit 16.5 21.8 Intangible amortisation of acquired assets (5.5) (5.9) Adjusting items (5.7) (7.8) Reported operating profit Boxe) 8.1 Net finance charge (4.0) (4.1) Profit before tax 1.3 4.0 Taxation expense (1.0) (1.5) Net
Slide 32: Banking facilities
Banking facilities * £200.0m Revolving Credit Facility ("RCF"), £37.2m drawn 30 June 2025 + $102.5m of long dated US Private Placement debt (“USPP”) with an average coupon rate of 3.8% USPP USPP USPP Interest Rate | Maturity £200.00m $32.80m $34.85m $34.85m Floating 3.62% 3.90% 4.00% July 2030 July
Slide 33: Disclaimer
THIS DOCUMENT IS STRICTLY CONFIDENTIAL TO THE RECIPIENT AND HAS BEEN SUBMITTED TO YOU SOLELY FOR YOUR INFORMATION. THE RECIPIENT MAY NOT REPRODUCE OR REDISTRIBUTE ANY PART OF THIS DOCUMENT TO ANY PERSON IN ANY FORM. This document and the presentation to which it relates (“presentation”) neither cons