Elementis Plc · LSE:ELM
Elementis — Investor Day (November 2021)
29 slides from Elementis's investor day presentation, Nov 17, 2021
Slide 1: Innovation: Enhanced Performance Through Applied Innovation
INNOVATION JOE LUPIA, SVP Global Technology 17 November 2021 Enhanced Performance Through Applied Innovation
Slide 2: Cautionary statement
Cautionary statement This presentation, the presentation materials and discussion may contain certain forecasts, projections and forward-looking statements – that is, statements related to future, not past events – in relation to, or in respect of the financial condition, operations or businesses of
Slide 3: Agenda
Agenda Innovation Innovation Innovation Strategy In Action Pipeline Enhanced Performance Through Applied Innovation Agenda 3
Slide 4: Key messages
Key messages Innovation 1 Innovation momentum 2 Innovation pipeline 3 transformed delivering performance, supports over $100m of since 2017 efficiency & sustainability margin accretive revenue benefits growth opportunities * Examples from last 18 months: Examples over next 12 – 24 months: 10% more n
Slide 5: Innovation Strategy
Innovation Strategy How our innovation model works Enhanced Performance Through Applied Innovation
Slide 6: Innovation at the heart of value creation
Innovation at the heart of value creation GROUP STRATEGY INNOVATION GROWTH EFFICIENCY MEDIUM TERM OBJECTIVES PROFITABILITY CASH LEVERAGE Adjusted operating Operating cash Net debt/EBITDA profit margin of 17% conversion 90%+ <1.5x Enhanced Performance Through Applied Innovation Innovation Strategy 6
Slide 7: Global reach, local presence
Global reach, local presence INNOVATION NETWORK ~$15m Amsterdam Cologne Netherlands Germany Annual R&D and East Windsor US technical spend Songjiang China Hsinchu Taiwan 100 Palmital Brazil São Paulo Scientists Brazil CAPABILITIES Surface Science of surfaces and Creation of Rheology Science of flow
Slide 8: Elementis Innovation video
> Elementis Innovation video Enhanced Performance Through Applied Innovation 8
Slide 9: A powerful innovation model
A powerful innovation model INNOVATION NETWORK INTEGRATED SYNERGISTIC OPEN One global team Distinctive shared chemistries Innovation through collaboration Integrated R&D and technical Technology transfers across service segments Standardised KPIs and screening Attractive product combinations Enhance
Slide 10: Clear focus and ambition
Clear focus and ambition INNOVATION STRATEGY Ambition Strengthen the Focus the innovation culture innovation portfolio 17% • Commercial & technical alignment of revenue from new • Growth platform focus products by 2025* • Technologies with clear • Fast moving & sustainability benefits results driven
Slide 11: Growth linked to megatrends
Growth linked to megatrends FOCUS THE INNOVATION PORTFOLIO ELEMENTIS MEGATRENDS GROWTH FIELDS & INNOVATION FOCUS TECHNOLOGY COMPETENCIES PERSONAL CARE COATINGS TALC Skin Care Premium Decorative Long Life Plastics Performance Rheology Asia Cosmetics WB Industrial Ceramics Efficiency Surface Chemistry
Slide 12: Linking innovation and sustainability
Linking innovation and sustainability FOCUS THE INNOVATION PORTFOLIO ELEMENTIS SUSTAINABILITY INDEX Thixatro ® l AS 8053 Hybrid A dhesive s & S ea lants Sustainability drivers for all innovation projects and new product launches Overvie w Score: Sustainability rating for each project based on Sourci
Slide 13: Customer driven & fast commercialisation
Customer driven & fast commercialisation STRENGTHEN THE INNOVATION CULTURE Pipeline Refinement Innovation Idea Generation & Selection Portfolio Management Customer Needs Customer Concepts Feasibility Proof of Scale-up and & Market Direction Collaboration Assessment concept Commercialize & Ideas Prod
Slide 14: Elementis Customer Testimonials
> Elementis Customer Testimonials Enhanced Performance Through Applied Innovation 14
Slide 15: Innovation at speed & scale
Innovation at speed & scale STRENGTHEN THE INNOVATION CULTURE ANTIPERSPIRANT ACTIVES REACH 9000 – 16 MONTHS FROM CONCEPT TO LAUNCH CUSTOMER AP/DEO CUSTOMER PRODUCT DEVELOPMENT CONCEPT REGULATORY CUSTOMER PRODUCTION & REQUEST DEVELOPMENT APPROVAL CLINICAL TRIALS LAUNCH REACH 9000 Q1 Q2 2020 Q3 Q4 Q1
Slide 16: Measure success
Measure success AMBITION MORE NATURALLY DERIVED PRODUCTS… …AND MORE SALES FROM NEW PRODUCTS Naturally derived products (% of revenue) New products as % of sales** 2017 2021* Base business rebound post [x]% 2020 COVID-19 demand trough 17 45% 54% 14 13 12 …INCREASED SPEED TO MARKET… 11 10 Average time
Slide 17: Innovation In Action
Innovation In Action Product launches in last 18 months Enhanced Performance Through Applied Innovation
Slide 18: Natural skin care
Natural skin care TECHNOLOGY IN ACTION BENTONE HYDROCLAYTM 2100 – NATURAL RHEOLOGY MODIFIER FOR SKIN CARE MARKET Naturally derived rheology modifier for skin care NEED: with premium performance Bentone HydroclayTM 2100, launched Q2 21 – easily ELEMENTIS dispersible hectorite additive that imparts th
Slide 19: Natural skin care: value drivers and customer impact
Natural skin care VALUE DRIVERS AND CUSTOMER IMPACT BENTONE HYDROCLAYTM 2100 VS TRADITIONAL SYSTEMS Performance Luxurious touch & feel Light texture & easy spreadability Over 300 Efficiency customers testing Hydroclay 2100 Cold processable Formulation flexibility Sustainability 100% Natural “Micropl
Slide 20: Protective coatings
Protective coatings TECHNOLOGY IN ACTION THIXATROL® PM 8058 – HIGH PERFORMANCE PROTECTIVE COATINGS A more environmentally friendly rheology modifier for MARKET protective coatings with enhanced performance DIAMIDE BASED NEED: credentials THICKENING MECHANISM Thixatrol® PM 8058, launched Q1 21 – cast
Slide 21: Protective coatings: value drivers and customer impact
Protective coatings VALUE DRIVERS AND CUSTOMER IMPACT THIXATROL® PM 8058 VS TRADITIONAL SYSTEMS Performance Enhanced sag resistance Thicker coating application $3m+ new Efficiency business pipeline Improved formulation flexibility Reduced customer production time Sustainability Naturally derived, bi
Slide 22: Barrier coatings
Barrier coatings TECHNOLOGY IN ACTION FINNTALC C15B2 – TALC FOR BARRIER COATINGS Barrier Talc Regulatory action (e.g. EU Single Use Plastics MARKET Directive, China Plastics Ban) and consumer Barrier Binder NEED: preferences seek to restrict single use plastics ELEMENTIS Finntalc C15B2, launched Q3
Slide 23: Barrier coatings: value drivers and customer impact
Barrier coatings VALUE DRIVERS AND CUSTOMER IMPACT FINNTALC C15B2 VS ALTERNATIVE SYSTEMS Rapid growth in 2021, ~$5m NBO pipeline Performance Efficiency Sustainability Excellent oil & grease Formulation flexibility Natural material resistance Easy to use slurry Fully recyclable & Improved water vapou
Slide 24: Innovation Pipeline
Innovation Pipeline Product launches in the next 12 – 24 months Enhanced Performance Through Applied Innovation
Slide 25: Well positioned, margin accretive pipeline
Well positioned, margin accretive pipeline INNOVATION PIPELINE TOP 20 INNOVATION PROJECTS - OVERVIEW • Active management of innovation portfolio Target Margin (%)* Bubble size indicates project peak sales ($m) through digital platforms 30% • 60 active projects; ~15-20 new product 28% launches in nex
Slide 26: New concept development
New concept development INNOVATION PIPELINE BENTONE PLUS LINE – RHEOLOGY COMBINED WITH ACTIVE INGREDIENTS MARKET ELEMENTIS NEED: SOLUTION: Tailored to market trends Naturally derived Hectorite based personal care rheology modifiers Customer products with combined with specific products multisensory
Slide 27: Premium decorative coatings
Premium decorative coatings INNOVATION PIPELINE RHEOLATE® PHX 7025 – ENHANCED SUSTAINABILITY CREDENTIALS Rheolate® PHX 7025 – powdered associative MARKET Market leading performance characteristics & ELEMENTIS thickener resulting in 75% reduction in transportation NEED: enhanced sustainability creden
Slide 28: Talc suspension
Talc suspension INNOVATION PIPELINE TALC SUSPENSION IN COATINGS MARKET Paint industry looking to substitute powdered TiO2 for NEED: health and safety reasons ELEMENTIS Suspension combination of TiO2, Talc, wetting SOLUTION: agents and dispersants Performance Efficiency Sustainability Enhanced opacit
Slide 29: Key messages
Key messages Innovation 1 Innovation momentum 2 Innovation pipeline 3 transformed delivering performance, supports over $100m* of since 2017 efficiency & sustainability margin accretive revenue benefits growth opportunities Examples from last 18 months: Examples over next 12 – 24 months: 10% more na