Slide 1: H1 2022 Update
H1 2022 Update August 9th 2022
Slide 2: Agenda
Agenda 1• Key developments & business update 2• Financial performance 3• Outlook 4• Q&A 2 © 2022 Azelis group. All rights reserved
Slide 3: Disclaimer
Disclaimer This document may contain statement relevant to Azelis Group NV (the “Company”) and/or its affiliated companies (collectively “Azelis” or the “Azelis Group”) which are not historical facts and are hereby identified as “forward-looking statements”. Such forward looking statements, include,
Slide 4: Key developments & business update H1 2022
Key developments & business update H1 2022 4 © 2022 Azelis group. All rights reserved
Slide 5: Key developments H1 2022
Key developments H1 2022 Sustained momentum Profit improvements Progress on initiatives Balance Sheet • 54% total revenue • 64.9% increase in • Digital strategy on track • €139m Free Cash Flow growth gross profit (+74%) despite o 89 portals* elevated working • 27.6% organic growth • 90.7% increase i
Slide 6: Business update: Sustained momentum
Business update: Sustained momentum Organic growth: 27.6% in H1 2022 • Robust end-market demand • Life Sciences: Sustained demand in Food and Personal Care; Pharma recovery • Industrial Chemicals: Robust CASE, R&PA; continued positive pricing environment M&A: 5 closed; 5 more signed • 5 acquisitions
Slide 7: Innovation in Life Sciences: Agricultural and Environmental Solutions
Innovation in Life Sciences: Agricultural and Environmental Solutions Formulating for organic agriculture Innovation • A customer was looking to improve an existing solvent-based formulation with a new greener solution. To have a more favorable eco-tox profile, the Challenge replacement of its paraf
Slide 8: Innovation in Industrial Chemicals: CASE
Innovation in Industrial Chemicals: CASE Collaborating to find solutions for wood coatings Innovation • A customer turned to Azelis for a solution to their Challenge wood coating sealer formulation which was producing grit and reducing yield. • Our lab team analyzed the existing formulation and dete
Slide 9: Our commitment to sustainability
Our commitment to sustainability Action 2025 Our commitment Progress in 2021 of our revenue from of our revenue in Sustainable TfS*-assessed 2021 was from Formulations 80% principals targeted 55.8% TfS-assessed by 20251 principals reduction in Scope reduction Minimized 1 & 2 carbon 50% intensity tar
Slide 10: Financial performance H1 2022
Financial performance H1 2022 10 © 2022 Azelis group. All rights reserved
Slide 11: Headline P&L H1 2022
Headline P&L H1 2022 Azelis Group Highlights Reported Reported Constant Q2 2022 Q2 2021 H1 2022 H1 2021 (EUR m) Change Change Currency Life Sciences 615.8 430.1 43.2% 1208.7 802.8 50.6% 46.8% Industrial Chemicals 427.9 267.6 59.9% 810.4 506.7 59.9% 54.9% Group Revenue 1043.7 697.8 49.6% 2019.0 1309.
Slide 12: Headline growth H1 2022
Headline growth H1 2022 Azelis Performance F/X M&A Growth Organic Total H1 2022 H1 2021 (EUR m) Translation Contribution Growth Growth EMEA 916.4 598.6 -1.3% 22.0% 32.3% 53.1% Americas 762.9 528.5 9.8% 11.5% 23.0% 44.3% Asia Pacific 339.7 182.4 6.3% 54.4% 25.6% 86.3% Group Revenue 2019.0 1309.5 4.2%
Slide 13: Regional financial update
Regional financial update EMEA Americas Asia Pacific EBITA EBITA EBITA 11.2% 13.1% 10.9% 14.1% 7.6% 8.4% margin margin margin +53.1% € 916 +44.3% € 763 € 599 € 529 Revenue Revenue Revenue +86.3% € 340 € 182 H1 2021 H1 2022 H1 2021 H1 2022 H1 2021 H1 2022 Conversion 53,4% Conversion 54,8% Conversion
Slide 14: Net Profit
Net Profit Azelis Group H1 2022 H1 2021 Net profit drivers (EUR m) Operating profit 211.8 104.7 • 102% increase in Operating profit Net financial expense • Strong top line growth -21.1 -29.8 Financial income 0.3 2.7 • EBITA growth from scale and efficiency improvements Financial expense -21.4 -32.5
Slide 15: Cashflow Bridge
Cashflow Bridge Group Cashflow CF Drivers 255,0 H1 2022 H1 2021 (EUR m) 242,6 Operating profit 211.8 104.7 211,8 Amortization 28.1 17.2 Adjustments 2.7 5.2 Adjusted EBITA 242.6 127.2 FCF conversion ratio 139,2 Depreciation 12.4 9.2 56.9% Adjusted EBITDA 255.0 136.4 Change in working capital -96.9 -4
Slide 16: Working Capital
Working Capital Working Capital Evolution of NWC* Receivables Inventory Payables NWC/ 9.2% 10.9% 11.1% 15.3% 12.5% 15.4% Revenue 611 467 336 262 268 256 491 376 333 167 200 218 -247 -227 -235 -329 -369 -469 2018 2019 2020 2021 Q2 2021 Q2 2022 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec DSO 32 34
Slide 17: Net debt
Net debt 2.7x 2.3x +13 +10 +6 +3 +3 +172 -151 +17 +8 991 974 +39 871 Net Debt 31 Operational Income tax Interest paid Capex M&A Leases Dividend Purchase of Transaction Others Net Debt 30 Dec 2021 CF payment to treasury Costs Jun 2022 group shares shareholders x Leverage ratio at period end 17 © 2022
Slide 18: Outlook
Outlook 18 © 2022 Azelis group. All rights reserved
Slide 19: Outlook
Outlook Our strategy of driving growth is underpinned by a constantly strengthening lateral value chain, supported by continuous investments in innovation capabilities and digitalization, as well as a commitment to sustainability to create long-term value. In line with this, we are positive that we
Slide 20: Q2 2022 Update Q&A
Q2 2022 Update Q&A Contact Investor Relations investor-relations@azelis.com +32 (0) 478 51 23 89 20 © 2022 Azelis group. All rights reserved