Slide 1: First-Half 2024 Results
First-Half 2024 Luc Themelin Thomas Baumgartner Results July 30, 2024
Slide 2: An excellent first-half 2024
An excellent first-half 2024 RECORD STRONG CASH ROLLOUT OF ACQUISITION HALF-YEAR FLOW THE CAPEX OF GMI SALES GENERATION PLAN €624m Annual sales: EBITDA margin: 16.9% €83m, including USD 40m Organic growth of €63m for the 2027 4.9% Operating cash flow growth plan Part of the up 39% 2027 plan 2 Mersen
Slide 3: Mersen, on track for 2027
Luc Themelin Chief Executive Officer MERSEN, ON TRACK FOR 2027 3 Mersen – first-half 2024
Slide 4: Well on track to meeting our 2027 targets
Well on track to meeting our 2027 targets 2027 plan (announced in March 2023) Sales ~€1,700m Renewable energies around Si semiconductors €1,211m 45% SiC semiconductors €1,115m GMI Electric vehicles (EV) 28% 27% 2022 2023 2024 2027 4 Mersen – first-half 2024
Slide 5: SiC semiconductors: a significant market for Mersen, set to further improve thanks to EV
SiC semiconductors: a significant market for Mersen, set to further improve thanks to EV opportunities ~€50m Organic growth >+20% Organic growth >+20% H1 2024 vs. H1 2023 Other customers ~€40m Customer 5 Current end markets: Other customers Customer 4 manufacturing, solar power, Customer 4 EV chargi
Slide 6: Mersen's EV expertise built around two product categories
Mersen's EV expertise built around two product categories Sales of ~€13m (H1 2024) Organic growth >+20% Charging stations EV fuses (auxiliary circuits and batteries) Busbars Fuses Fuses for charging stations EV Busbars for batteries (first ACC deliveries scheduled for Asia H2) and heavy vehicle Euro
Slide 7: Solar power: Mersen focusing on high value-added products
Solar power: Mersen focusing on high value-added products GW €m 600 200 A selective strategy • Limiting the volume of graphite 180 GW installed per year dedicated to solar power 500 160 • Positioned in the premium graphite Decision to allocate a portion of Mersen's 140 market (added value) 400 graph
Slide 8: Acquisition of GMI, strengthening our leading position in the United States
Acquisition of GMI, strengthening our leading position in the United States THE LARGEST INDEPENDENT AN EXPERT IN ANNUAL SALES: GRAPHITE MACHINING FACILITY INSULATION FELTS USD 40m IN THE UNITED STATES AND EXTRUDED AND ISOSTATIC GRAPHITE CASH-OUT: USD 50m PURIFICATION CAPACITY Machining and purificat
Slide 9: First-half 2024 financial results
Thomas Baumgartner Chief Financial Officer FIRST-HALF 2024 FINANCIAL RESULTS 9 Mersen – first-half 2024
Slide 10: Record half-year sales €624m
Record half-year sales ORGANIC GROWTH H1 2024 vs. H1 2023 9% +10% - +20% CHEMICALS +0% - +10% -10% - 0% 33% 15% PROCESS INDUSTRIES TRANSPORTATION €624m +5%* 19% 24% ENERGIES ELECTRONICS * Organic growth H1 2024 vs. H1 2023 10 Mersen – first-half 2024
Slide 11: Growth in EBITDA margin and increase in depreciation and amortization
Growth in EBITDA margin and increase in depreciation and amortization (€m) H1 2023 H1 2024 EBITDA before non-recurring items 100.5 105.5 +5% Recurring EBITDA margin 16.5% 16.9% Depreciation and amortization (31.7) (35.4) Operating income before non-recurring items 68.8 70.1 +2% Operating margin befo
Slide 12: Pricing power that protects our margins
Pricing power that protects our margins In % points H1 2023 operating margin before non-recurring items 11.3% Volume/mix effect +0.1 Price effect +2.2 High-tech customized products with limited cost versus total cost Raw material/energy inflation -1.1 + 0.6 pts Optimization measures and productivity
Slide 13: Slight growth in operating income before non-recurring items in both segments
Slight growth in operating income before non-recurring items in both segments Advanced Materials Electrical Power 15.2% Change from H1 2023 to H1 2024 15.1% 52,8 Slightly favorable volume 50,4 10.7% 10.7% effect, negative mix effect 29,4 29,6 Selling price rises offsetting inflation in wages and cos
Slide 14: Net income including an increase in non-recurring expenses
Net income including an increase in non-recurring expenses (€m) H1 2023 H1 2024 Operating income before non-recurring items 68.8 70.1 Acquisition-related costs, Non-recurring income and expenses (0.1) (5.4) optimization measures Net financial expense (9.0) (10.3) Higher interest rates and increase i
Slide 15: Growth in operating cash flow partly financing the capital expenditure plan
Growth in operating cash flow partly financing the capital expenditure plan (€m) H1 2023 H1 2024 Operating cash flow before change in WCR 99.2 101.3 Change in WCR (44.6) (40.5) WCR ratio of 21.8% (vs. 22.9% at June 30, 2023) o/w change in inventories (40.4) (22.3) Income tax paid (15.4) (6.3) One-of
Slide 16: A sound financial structure
A sound financial structure Net debt (€m) LEVERAGE: 1.33x (vs. 1.09x at Dec. 31, 2023) Does not include lease liabilities €52m (vs. €54m at Dec. 31, 2023) and pension obligations €37m (vs. €40m at Dec. 31, 2023) Operating cash flow Capital expenditure Intangible Dec. 31, 2023 assets Interest Other J
Slide 17: Significant liquidity available for the growth plan
Significant liquidity available for the growth plan AVAILABLE LIQUIDITY 6 Drawn credit lines (€m) 115 ~€320m (undrawn Group syndicated loan) 100 +~€100m cash 2 56 Maturity 6 30 6 4.3 years* 20 15 3 10 1 Fixed rate 2024 2025 2026 2027 2028 2029 2030 2031 ~58% of gross debt USPP Schuldschein NEU MTN B
Slide 18: 2024 and 2027 objectives confirmed
2024 and 2027 objectives confirmed 2024 ORGANIC GROWTH IN OPERATING MARGIN BEFORE CAPITAL EXPENDITURE SALES NON-RECURRING ITEMS Around 5% Around 11% between €200m and €240m of sales 2027 SALES OPERATING MARGIN RECURRING EBITDA BEFORE MARGIN ROCE NON-RECURRING ITEMS Around 12% +- 50 pts 19% +- 50 pts