Slide 1: 2021 Full-Year Results
2021 Full-Year Results M A R C H 1 6 , 2 0 2 2
Slide 2: 2021: Remarkable performance
2021: REMARKABLE PERFORMANCE... INDUSTRIAL SALES OPERATING MARGIN BEFORE CAPEX NON-RECURRING ITEMS €923m 10% of sales €79m +8.6% vs. 2020 +190 bps SHAREHOLDER PROFIT SHARED RETURN WITH EMPLOYEES Dividend of €25m €1.00/share Bonuses, incentives, i.e., a €21m payout profit-sharing 2 2021 Results – Mar
Slide 3: Fueling a return to levels close to 2019
... FUELING A RETURN TO LEVELS CLOSE TO 2019 OPERATING MARGIN BEFORE SALES (€m) EBITDA MARGIN (% sales) NON-RECURRING ITEMS (% sales) 950 923 16.3% 16.1% 10.8% 10% 8.1% 847 14.5% 2019 2020 2021 2019 2020 2021 2019 2020 2021 Continuation of operational excellence plans, volume effect Growth driven by
Slide 4: Major achievements in the 2018-2021 roadmap
MAJOR ACHIEVEMENTS IN THE 2018-2021 ROADMAP STRONG COMMITMENT TO THE PLANET THROUGH THE POLAR POD PROJECT Sales Health & Safety 56% 4,927 in sustainable management development markets safety visits Pride in belonging 91% of employees proud to belong to the Group Diversity Recycling 24.4% 63% of wome
Slide 5: Mersen: a recognized key enabler in tomorrow's markets
MERSEN: A RECOGNIZED KEY ENABLER IN TOMORROW’S MARKETS 5 2021 Results – March 16, 2022
Slide 6: 2021 Results
2021 Results Thomas Baumgartner, CFO 6 2021 Results – March 16, 2022
Slide 7: 2021 Sales: sharp growth in all geographies
2021 SALES: SHARP GROWTH IN ALL GEOGRAPHIES 1 Europe +8% vs. 2020 North America 1 2 +8% vs. 2020 2 South America – 4 3 Africa +23% vs. 2020 4 Asia-Pacific +8% vs. 2020 3 €923m +8.6% like-for-like Like-for-like growth (%) 7 2021 Results – March 16, 2022
Slide 8: Major growth in all main end markets but transportation
MAJOR GROWTH IN ALL MAIN END MARKETS BUT TRANSPORTATION, WHICH WAS DRAGGED DOWN BY AERONAUTICS AND RAIL Energies Electronics Transportation 20% of sales 23% of sales 14% of sales Sales Solar Si and SiC semiconductors Rail in sustainable Wind Power electronics Aeronautics development markets Hydro El
Slide 9: Q4 2021: higher sales than in 2019
Q4 2021: HIGHER SALES THAN IN 2019 243 240 234 239 232 231 233 225 220 205 208 209 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Reported quarterly sales Annual quarterly average 9 2021 Results – March 16, 2022
Slide 10: Return to double-digit operating margin
RETURN TO DOUBLE-DIGIT OPERATING MARGIN 2020 operating margin 8.1% before non-recurring items 10.0% Volume/mix effects +3.1 bps 93 Price effect +0.4 8.1% Raw material inflation -0.8 69 Wage and cost inflation -1.2 Covid impact* -0.6 Productivity gains and adaptation plan +2.5 Bonuses/incentives -0.8
Slide 11: Improved profitability in both segments
IMPROVED PROFITABILITY IN BOTH SEGMENTS ADVANCED MATERIALS ELECTRICAL POWER 14.4% Volume/mix effect 9.1% 12.1% 73 Higher prices 7.5% 38 58 Positive effects 28 of adaptation and operational excellence plans Wage and cost inflation 2020 2021 2020 2021 Operating income before non-recurring items (€m) X
Slide 12: Net income up sharply
NET INCOME UP SHARPLY in €m 2020 2021 Operating income before non-recurring items 68.6 92.6 Non-recurring expenses: Non-recurring income and expenses (51.4) (4.9) mainly Columbia and end of the adaptation plan Net financial expense: Net financial expense (12.0) (10.7) Charge down thanks to a decline
Slide 13: Strong operating cash flow generation to fund the investment program
STRONG OPERATING CASH FLOW GENERATION TO FUND THE INVESTMENT PROGRAM OPERATING CASH FLOW BEFORE INVESTMENTS (€M) CASH FLOW CONVERSION (%) FCF in €m 133 Cash flow 123 117 conversion* 79% 108% 92 79% 79% 64 71% 56% WCR 19.4% of sales (20.5% in 2020) 2017* 2018* 2019 2020 2021 * Before IFRS 16 * Operat
Slide 14: Industrial capex to build the future
INDUSTRIAL CAPEX TO BUILD THE FUTURE Columbia (USA) Growth Solar: capacity extension (China) Semiconductors: extensions in India, China Environment SiC semiconductors: UK and safety Energy storage (Redox batteries): UK Buildings in line 2021 with environmental standards Process improvements €79m Sol
Slide 15: Maintaining a solid financial structure
MAINTAINING A SOLID FINANCIAL STRUCTURE NET DEBT (€m) Net debt/ EBITDA (14) (1) 193 180 117 (14) 1.42 (10) (7) (84) Net debt/ Equity 30% Not including Lease liabilities: €53m Provisions for pension obligations: Dec. 2020 Operating cash flow Capex including IT Acquisitions Interest Dividends Lease Ot
Slide 16: A dividend at €1 per share reflecting robust performance
A DIVIDEND AT 1€ PER SHARE REFLECTING THE YEAR’S ROBUST PERFORMANCES AND THE STRONG BALANCE SHEET 38% DIVIDEND 1.00 +54% POLICY 39% Payout of 30% to 40% of Group net income restated 0.65 for non-recurring items Payout for 2020: €14m Estimated payout for 2021: €21m 2020 2021 Dividend in € in respect
Slide 17: Refinancing in 2021 helping to significantly extend debt maturity
REFINANCING IN 2021 HELPING TO SIGNIFICANTLY EXTEND DEBT MATURITY USPP AND NEU MTN REFINANCING IN 2021 (€M) DECEMBER 31, 2021 Maturity* 130 c. 6 years Undrawn confirmed credit lines (2024 maturity) c. €224m including €24m in China c. €50m available cash 53 30 USPP 20 REFINANCING 5 10 10 2022 2023 20
Slide 18: 2022 Outlook & Medium-Term Vision
2022 Outlook & Medium-Term Vision Luc Themelin, CEO 18 2021 Results – March 16, 2022
Slide 19: 2022 Priorities
2022 PRIORITIES 01 02 03 Strengthen EV market Continue to invest Successfully start team and intensify our efforts operations in Columbia to harness with Soitec to serve surging for extruded graphite. the strong growth expected demand in the Invest in isostatic graphite in 2023-2024 SiC semiconducto
Slide 20: 2022 Targets
2022 TARGETS excluding potential indirect impacts resulting from the current situation, which are difficult to measure at this stage SALES OPERATING MARGIN INDUSTRIAL EBITDA BEFORE NON- CAPEX MARGIN RECURRING ITEMS Like-for-like growth of Around Around 3%-6% 10% €80m-€85m +20-30 bps While implementi
Slide 21: Promising trends through 2025
PROMISING TRENDS THROUGH 2025 Additional Strong growth available drivers industrial capacity at the heart of major lifestyle changes A proven A recognized policy of commitment excellence to CSR issues 21 2021 Results – March 16, 2022
Slide 22: Columbia, a strategic semi-finished product plant to drive growth
COLUMBIA, A STRATEGIC SEMI-FINISHED PRODUCT PLANT TO DRIVE GROWTH 2023 2019 2020 2021 2022 and beyond Acquisition Recommissioning of the facility First batch Production launch Manufacturing Manufacturing extruded graphite extruded graphite extruded graphite extruded graphite (2,000t) (4,000t) Transf
Slide 23: Strong growth drivers
STRONG GROWTH DRIVERS Sales growth 2025 target Market trend Market trend 2019-2021 (€m) 2022 2023-2025 SOLAR POWER +30% 100 SI SEMICONDUCTOR +4% 60 MANUFACTURING SIC SEMICONDUCTOR MANUFACTURING +16% 110 ELECTRIC VEHICLES +14% 40-70 23 2021 Results – March 16, 2022
Slide 24: Solar: a major supplier across the value chain
SOLAR: A MAJOR SUPPLIER ACROSS THE VALUE CHAIN Electricity generation PROCESS STAGE Silicon ingot Cell Electrical panel Storage Power manufacturing manufacturing protection conversion MERSEN EXPERTISE 2021 SALES CUSTOMERS €71m 2025 EST. SALES €100m 24 2021 Results – March 16, 2022
Slide 25: Essential materials expertise in the Si semiconductor manufacturing process
ESSENTIAL MATERIALS EXPERTISE IN THE SI SEMICONDUCTOR MANUFACTURING PROCESS PROCESS STAGE Ingot pulling Wafer epitaxy Deposition Photolithography Etching Ion & wafer cutting implantation MERSEN EXPERTISE 2021 SALES CUSTOMERS €47m 2025 EST. SALES €60m 25 2021 Results – March 16, 2022
Slide 26: Unique position in the SiC manufacturing process
UNIQUE POSITION IN THE SOPHISTICATED AND INTRICATE SIC MANUFACTURING PROCESS Monocrystalline Wafer Ion Power SiC ingot epitaxy implantation semiconductors SiC wafer PVT 2,400°C +/- 1°C PROCESS MERSEN EXPERTISE SiC powder 2021 SALES CUSTOMERS €36m 2025 EST. SALES €80m 26 2021 Results – March 16, 2022
Slide 27: Soitec partnership: new range of substrates for the EV market
SOITEC PARTNERSHIP: DEVELOPING A NEW RANGE OF SUBSTRATES FOR THE EV MARKET 2021 SALES €0m 2025 EST. SALES SiC ingot Monocrystalline SiC wafer P-SiC wafer €30m Monocrystalline SiC Monocrystalline SiC Polycrystalline Ultra prime SiC (p-SiC) PVT process SiC power Soitec SmartSiCTM semiconductor process
Slide 28: Mersen's offering for EV/HEV applications
MERSEN’S OFFERING FOR EV/HEV APPLICATIONS Inverter 2021 SALES €16m Electrical circuit Battery MERSEN protection Courtesy: Exagon EXPERTISE Courtesy: Würth Electronic 2025 EST. SALES €40-70m 28 2021 Results – March 16, 2022
Slide 29: The means to grow
THE MEANS TO GROW A powerful A strengthened industrial tool team 3 sites IATF-qualified or in progress - fuses 50 people (Shanghai, Juarez, Kaposvar) (in the 3 regions) at end-2021 1 site IATF-qualified - bus bars (Angers) 80 people by end-2022 €10-€1,000 per vehicle A dedicated Quality product rang
Slide 30: A diversified accessible market for Mersen
A DIVERSIFIED ACCESSIBLE MARKET FOR MERSEN Car Tier-1 Battery module New entrants manufacturers suppliers manufacturers 30 2021 Results – March 16, 2022
Slide 31: Ambitious mid-term plan
AMBITIOUS MID-TERM PLAN SALES €1,200m OPERATING MARGIN BEFORE NEW CSR ROADMAP NON-RECURRING ITEMS ≥ 11% EV SiC semicon CAGR €923m Si semicon +18% Responsible Solar EBITDA MARGIN partner ≥ 17.5% EV SiC semicon Si semicon Solar Limiting our environmental impact CAGR +4% Developing incl. human capital
Slide 32: Appendix
Appendix 32 2021 Results – March 16, 2022
Slide 33: Major achievements in the 2018-2021 roadmap
MAJOR ACHIEVEMENTS IN THE 2018-2021 ROADMAP 2021 target 2021 ECOLOGICAL TRANSITION % of sustainable development sales 55% 56% RESPONSIBLE PARTNER Assessment of 45% CSR assessment of our suppliers strategic suppliers self-assessments received PLANET WASTE RECYCLING Waste recycling rate +15 points +16
Slide 34: KPI related to the 2022-2025 CSR roadmap
KPI RELATED TO THE 2022-2025 CSR ROADMAP 2025 Target* Responsible partner Supplier CSR sef-assessment 100% in 2022 Supplier mapping and audits Limiting our environmental impact PLANET Reduce GHG emission intensity -20% Reduce water consumption -10% Increase the share of waste recycled 75% Human Capi