Slide 1: Ercros Annual Results Financial Year 2023
ERCROS ANNUAL RESULTS FINANCIAL YEAR 2023 Barcelona, 27 February 2024
Slide 2: Adjusted EBITDA, Benefit, Shareholder Remuneration
ADJUSTED EBITDA €48 MILLION BENEFIT €28 MILLION SHAREHOLDER REMUNERATION €9 MILLION 2
Slide 3: Keys to the Exercise
KEYS TO THE EXERCISE (i) The ruling of the Constitutional Court on the compensation of negative tax bases adds 26.1 million to Ercros' initial profit. (ii) The initial profit of 1.5 million is obtained in an environment of low demand in the European chemical sector present since mid-2022, characteri
Slide 4: Tons
"1 TONS Tons sold per quarter (thousands) Variation 2023/2022: -11.8% 294 280. 295 378 237 253 1 242 1Q 2a 3Q 4Q ee 2022 oe 2023.
Slide 5: Sales
"1 SALES Product sales per quarter (million euros) Variation 2023/2022: -29.2% 300.00 275.26 256.60 242.31 250.00 SS “ 213.40 206.12 200.00 152.16 ° 135.53 150.00 100.00 50.00 0.00 1Q 2Q 3Q 4Q ee 2022 em 2023.
Slide 6: Effects on Sales Variation
"1 EFFECTS ON SALES VARIATION Price and volume effects on sales reduction (millions of euros) 1,200.00 _ — | 800.00 -196.71 | 23.21 707.21 600.00 -117.83 OO 400.00 200.00 0.00 Sales 2022 Price effect Volume effect Mix effect Sales 2023
Slide 7: Quarterly Evolution of the Contribution
QUARTERLY EVOLUTION OF THE CONTRIBUTION 7
Slide 8: Effects on the Variation in the Contribution
EFFECTS ON THE VARIATION IN THE CONTRIBUTION 8
Slide 9: Evolution of Adjusted EBITDA
EVOLUTION OF ADJUSTED EBITDA Adjusted ebitda: ebitda excluding atypical items. 9
Slide 10: Effects of Unit Contribution and Volume on Adjusted EBITDA
EFFECTS OF UNIT CONTRIBUTION AND VOLUME ON THE REDUCTION OF ADJUSTED EBITDA (millions of euros) 10
Slide 11: Profit/Loss for the Year
PROFIT/LOSS FOR THE YEAR Thousands of euros 2023 2022 % Continuing operations Revenue 757,626 1,059,685 -28.5 Sales of finished goods 707,214 998,532 -29.2 Service provision 18,080 26,370 -31.4 Other income 32,332 34,783 -7.0 Expenses -713,320 -937,024 -23.9 Procurements and supplies -494,673 -698,5
Slide 12: Balance Sheet
BALANCE SHEET Thousands of euros 31-12-23 31-12-22 Change % Non-current assets 419,152 393,040 26,112 6.6 Working capital 64,218 77,349 -13,131 -17.0 Current assets 169,527 241,119 -71,592 -29.7 Current liabilities -105,309 -163,770 58,461 -35.7 Resources used 483,370 470,389 12,981 2.8 Equity 363,1
Slide 13: Why Does Net Financial Debt Increase?
WHY DOES NET FINANCIAL DEBT INCREASE? 13
Slide 14: Detail of Financial Debt
DETAIL OF FINANCIAL DEBT Thousands of euros 31-12-23 31-12-22 Change % Loans 108,831 85,007 23,822 28.0 Finance lease liabilities 9,260 12,324 -3,062 -24.9 Working capital financing 13,158 38,096 -24,938 -65.5 Gross financial debt 131,249 135,427 -4,178 -3.1 Cash 39,145 58,283 -19,138 -32.8 Deposits
Slide 15: Liquidity
LIQUIDITY Thousands of euros 31-12-2023 31-12-2022 % Cash 39,145 58,283 -32.8 Undrawn financing 109,487 99,863 9.6 Total liquidity 148,632 158,146 6.0 15
Slide 16: Shareholder Remuneration
SHAREHOLDER REMUNERATION SHAREHOLDER REMUNERATION CHARGED TO THE 2023 PROFIT* Amount Payout (millions of euros) (%) Dividend payment (0.07 euros/share) 6.40 23.9 Disbursement for repurchase of own shares 2.32 8.6 Total remuneration 8.72 32.5 * Proposal pending approval by the June 2024 general meeti
Slide 17: Accumulated Shareholder Remuneration
ACCUMULATED SHAREHOLDER REMUNERATION 2016-2023 Millions of euros* % Dividend payment 49.55 40.3 Disbursement for repurchase of treasury shares 73.55 59.7 Total remuneration 123.10 100.0 • Approximate figures, pending approval of the remuneration by the general meeting in June 2024. • These figures i
Slide 18: Business Results
BUSINESS RESULTS Thousands of euros 2023 2022 % Chlorine derivatives division Product sales 442,729 673,099 -34.2 Adjusted ebitda 33,873 124,816 -72.9 Adjusted ebitda/product sales (%) 7.7 18.5 -58.7 Intermediate chemicals division Product sales 197,392 260,518 -24.2 Adjusted ebitda 13,423 14,819 -9
Slide 19: Differences Between Businesses
DIFFERENCES BETWEEN BUSINESSES Sales (millions of euros) Adjusted ebitda (millions of euros) 1.200 180 -34.2% -24.2% 3.4% -29.2% -72.9% -9.4% -75.0% -66.3% 999 1.000 150 143 125 800 707 120 673 600 90 443 400 60 48 261 34 197 200 30 65 67 15 13 3 1 0 0 Derivados delIntermediate Chlorine Química Phar
Slide 20: Differences Between Businesses
DIFFERENCES BETWEEN BUSINESSES Adjusted ebitda margin* 20,0 18.5% 16,0 13.9% 12,0 7.7% 8,0 6.8% 6.6% 5.7% 5.0% 4,0 1.2% 0,0 Derivados Chlorine del cloro derivatives Química intermedia Intermediate chemicals Farmacia Pharmaceuticals Ercros 2022 2023 * Adjusted ebitda/sales. 20
Slide 21: Foreign Trade by Business
FOREIGN TRADE BY BUSINESS Sales in the export and domestic markets 100% 7% 80% 34% 48% 60% 60% 93% 40% 66% 52% 20% 40% 0% Derivados Chlorine del cloro Intermediate derivatives Química intermedia chemicals Farmacia Pharmaceuticals Ercros Export Domestic market 21
Slide 22: Sales Structure
SALES STRUCTURE Sales by destination Sales by currency Rest of the world 9% Other* 1% Dollars 17% Rest of the OECD 13% Spain 48% Rest of the EU 30% Euros 82% * Pound sterling and yen. 22
Slide 23: 3D Plan Investments
3D PLAN INVESTMENTS As of today, the following actions have been completed: Diversification: ▪ Expansion of the polyols plant in Tortosa. ▪ Expansion of the moulding compounds plant in Cerdanyola. ▪ Expansion of the sodium chlorite and TCCA plants in Sabiñánigo. ▪ Expansion of the fosfomycin trometa
Slide 24: What Do We Expect from 2024?
WHAT DO WE EXPECT FROM 2024? ▪ The environment of high uncertainty, weak demand and strong international competition continues. ▪ Specialized publications delay the start of the recovery in demand in the European chemical sector - initially planned for the first quarter of 2024 - until the second ha
Slide 25: For more information: Ercros
For more information: Ercros Av. Diagonal, 593-595 08014 Barcelona Tel.: (+34) 934 393 009 (+34) 609 880 630 E-mail: ercros@ercros.es www.ercros.es