Accsys Technologies Plc · LSE:AXS
Accsys Technologies — H1 FY2021 Earnings Presentation
29 slides from Accsys Technologies's earnings presentation, Nov 30, 2020
Slide 1: Interim Results Presentation: six months ended 30 September 2020
WN Leukerbad, Swiss Alps INTERIM RESULTS PRESENTATION For the six months ended 30 September 2020 azz Over 2km above sea level, ice and snow pose no problems f ya® wood decking © Acesys 2020
Slide 2: Disclaimer
DISCLAIMER NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION believe", “plan”, “seek”, “continue” or similar expressions identify forward-looking stat
Slide 3: Agenda
AGENDA 7 Results Overview 2 Financial Results 3 Business Review & Outlook = /\ accsys
Slide 4: Overview: H1 FY21 Further Strategic Progress
OVERVIEW H1 FY21: FURTHER STRATEGIC PROGRESS * Excellent financial results: resilient sales, improved profitability and strong cashflow * Effectively managed COVID-19 enabling improved performance * Strong market demand and robust market fundamentals * Executing on our expansion projects and plans *
Slide 5: Effectively Managing COVID-19
EFFECTIVELY MANAGING COVID-19 8 Ensuring our _ ws JY\ Protecting our v & A people are safe OQ Operating with agility | growth plans + H1cost control New working practices Agile sales actions and marketing to and on-site protection mitigate disruption and target changing ; ; consumer trends * Working
Slide 6: Reaching New Milestones and Building Our Organisation
REACHING NEW MILESTONES... al Profitability 2 consecutive years of EBITDA profitability Tricoya® Top 3 floors of tower at Hull added USA a a JV with Eastman signed in August to progress towards Accoya® USA plant awn >6000m? Highest-ever global and North American monthly volume in October © Acesys 20
Slide 7: Financial Results
Basel, Switzerland FINANCIAL RESULTS Will Rudge, Finance Director Accoya® clads the Stadtcasino Basel's expansion by architects Herzog & De Meuron <— /\ accsys
Slide 8: Financial Highlights
FINANCIAL HIGHLIGHTS € milion Ht FY21 HI FY20 cnsnae Sales volume (m*) 26,422 28,113 (6%) Total Group Revenue 42.9 44.0 (3%) Underlying Gross Profit" 14.3 12.8 12% Underlying Gross Margin 33% 29% 4% Underlying EBITDA’ 4.3 25 22% Underlying EBIT' 1.6 (0.4) Underlying (loss) before tax (0.1) (2.2) Per
Slide 9: Improved Profitability
IMPROVED PROFITABILITY Underlying EBITDA by Segment Underlying EBITDA - H1 FY21 vs H1 FY20 € million € million 10.0 45 9.0 a. 4.0 — | 0.3 | 80 (1.2) 35 (0.1) 7.0 30 60 - 5.0 bo 4.0 : 15 3.0 20 10 1.0 0.5 0.0 0.0 Tricoya® R&D and HI FY21 H1FY20 Accoya® Tricoya® R&Dand HI FY21 Compora ate Total Total
Slide 10: Resilient Sales Performance
RESILIENT SALES PERFORMANCE * Global distribution of sales supported resilient sales performance + Adjusted regional focus and marketing to compensate for COVID-19 disruption in Q1 Sales volume by region Accoya® wood revenue by region Benelux, APA, ROW € million wH1 FY19 = H1 FY20 mH1 FY214 UK & Ire
Slide 11: Group Underlying EBITDA
Group underlying EBITDA (€ million) • • •
Slide 12: Strong Cashflow Generation
STRONG CASHFLOW GENERATION Net Debt (€ million) 32.0 140 120 NetDebt — Accoya® Tricoya® = R&Dand Capex’ © Capex Operational Cerdia at1April EBITDA EBITDA Corporate investment payables © Working _—_termin- 2020 Costs Capital ation fee 1 Capex investment includes Property, plant and equipment addition
Slide 13: Continued Profitability Improvement
CONTINUED PROFITABILITY IMPROVEMENT Accoya® segment underlying EBITDA* Accoya® segment underlying EBITDA* Manufacturing margin . Accoya® manufacturing margin t 10.8% (€ million) (%) vs FY17 H2 38.5% * 12 months of Accoya® manufacturing 30.0% i 9 ew HI margin over 30% 22.7% 21.8% 23.0%, * — Accoya® s
Slide 14: Business Review & Outlook
Minnesota, USA BUSINESS REVIEW & OUTLOOK Rob Harris, Chief Executive = —_______— IN ACCSYS
Slide 15: Overview: Changing Wood to Change the World
OVERVIEW CHANGING WOOD TO CHANGE THE WORLD 1 World-leading product & technology High performance, sustainable wood products, with world leading technology ap ] Significant market opportunity m= Currently ~2% penetration of our 2.6 million m3 achievable market , Global growth strategy re) Delivering
Slide 16: Extensive know-how and over 330 patents
• • • • • • • • We have extensive know-how and over 330 patents covering 27 distinct inventions in over 40 countries.
Slide 17: Market opportunity and wood supply
• • • • • • • • • • 1. Source: Food and Agriculture Organisation of the United Nations (FAO)
Slide 18: Production capacity growth
240,000 m³ 200,000 m³ 160,000 m³ 120,000 m³ 80,000 m³ 40,000 m³ 0 m³ H2 2018 H2 2019 Hull Tricoya® 4th Reactor USA Malaysia Arnhem Accoya® Tricoya®
Slide 19: Accoya EBITDA and manufacturing margin
• • • • • • • • 1. Underlying Accoya EBITDA H1 FY21 vs H1 FY20 2. Accoya Manufacturing Margin
Slide 20: Accoya: Strategic Development & Global Expansion
ACCOYA STRATEGIC DEVELOPMENT & GLOBAL EXPANSION Adding capacity at existing Arnhem plant + 4th reactor will increase production capacity by 33% to 80,000 m*. 3 year payback. + _EPCM contract entered & key long lead-time orders placed (including reactor) + Completion in QI CY2022 Expanding into large
Slide 21: Tricoya: H1 FY21 & Strategic Development
TRICOYA H1 FY21 & STRATEGIC DEVELOPMENT Good progress on Hull construction - completion on track for Q1 World-first Tricoya® plant being constructed at Hull, UK H1 FY21: Good progress after initial Covid-19 impact - Strong execution focus for work completing as quickly and safely as possible - Key m
Slide 22: Our ESG Framework
OUR ESG FRAMEWORK We have aligned our issues and impacts with our purpose, values, business strategy and external frameworks such as the UN SDGS: Changing wood... ..to change the world Governance, management and advocacy Sustainable & quality products Health & safety Innovation & technology Ecologic
Slide 23: Accsys Sustainability Report 2020
ACCSYS SUSTAINABILITY REPORT 2020 HOW WE GOT HERE Our products give the world a 2020: Our new ESG Report and strategy development Reponunignlig hts: choice to build more sustainably + Sustainability is a core competitive advantage for our business and products. + We offer a sustainable solution for
Slide 24: Summary and Outlook
SUMMARY Excellent H1 Performance Outlook Strong financial position; increasing profitability Resilience during COVID-19 Investing for growth & executing on our . strategy Strong market demand in large market Continued ESG focus H2 started with continuing strong demand & capacity-level production des
Slide 25: Appendix
APPENDIX Changing wood to change the world
Slide 26: Segmental Summary
SEGMENTAL SUMMARY H1 FY21 €m Accoya® Tricoya® Coneute Group Total revenue A1.8 1.1 0.0 42.9 Underlying Gross profit 14.3 0.0 0.0 14.3 Underlying EBITDA 9.2 (1.2) (3.7) 4.3 Underlying EBIT 7.0 (1.4) (4.0) 1.6 H1 FY20 Em} Accova® Tricoya® Comets Group Total revenue 43.7 0.3 0.0 44.0 Underlying Gross p
Slide 27: Share and shareholder information
• • • • • 1. Full year 2020 2. As at 27 November 2020
Slide 28: FY20 vs FY19
FY20 vs FY19 FY20 vs FY19 FY20 vs FY19
Slide 29: Tricoya Consortium Structure
TRICOYA CONSORTIUM STRUCTURE The Tricoya® Consortium is based on two entities: Loan notes notes * Tricoya Technologies Limited ("TTL") will continue to benefit MEDITE from all Tricoya® related intellectual property Eau opti option . oe me "ie , oye 1.3% 8.5% 76: | 3.7% * Tricoya UK Limited ("TUK") i
Accsys Technologies — H1 FY2021 Earnings Presentation on 6ix