Mersen Sa · EURONEXT:MRN
Mersen Sa — Investor Day (December 2024)
18 slides from Mersen Sa's investor day presentation, Dec 5, 2024
Slide 1: A solid financial profile
04 A solid financial Thomas Baumgartner Chief Financial profile Officer
Slide 2: A solid financial profile
A solid financial profile 1 2 3 A solid historical An adjustment of A sound financial performance the mid-term plan structure 58 Capital Market Day – December 5, 2024
Slide 3: An improved growth profile
An improved growth profile REPORTED SALES (€M) Average 1,083 +23% Average 1,400 879 1,200 1,000 800 600 400 200 2017 2018 2019 2020 2021 2022 2023 59 Capital Market Day – December 5, 2024
Slide 4: A more profitable Group
A more profitable Group Average EBITDA +27% €179m Average EBITDA €141m Average +60 bps EBITDA margin Average 16.6% EBITDA EBITDA margin (€m) 16.0% EBITDA 250 17% margin 17% 200 16% 16% 150 15% 100 15% 14% 50 14% 0 13% 2017 2018 2019 2020 2021 2022 2023 2017 and 2018 restated (IFRS16) 60 Capital Mark
Slide 5: Two profitable segments
Two profitable segments OPERATING INCOME BEFORE NON-RECURRING ITEMS (€M) Operating margin Synergies between segments before non-recurring items in % 15.7% • Sales and Marketing synergies between the 15.8% 120 two segments to develop new businesses • Optimization of manufacturing and sales 100 14.4%
Slide 6: A more effective cash-generating model
A more effective cash-generating model NET CASH GENERATED BY OPERATING ACTIVITIES Average +33% €134m Average €m 200 €101m 180 160 140 120 100 80 60 40 20 0 2017 2018 2019 2020 2021 2022 2023 2017 and 2018 restated (IFRS16) 62 Capital Market Day – December 5, 2024
Slide 7: A solid base to finance investments
A solid base to finance investments Solid base = Traditional markets (72% of 2023 sales): EBITDA LESS CAPEX (€M) – TRADITIONAL MARKETS aeronautics, rail, process industries, chemicals A capacity to generate substantial cash flows in 100 71 73 1 traditional markets 90 51 80 Resilience thanks to a div
Slide 8: Manufacturing capacity fully utilized from 2022 onwards
Manufacturing capacity fully utilized from 2022 onwards Capex decision driven by strong medium-term customer demand Capex Graphite (€m) 100% manufacturing capacity utilization rate 120 90% 85% 100 80 60 40 20 0 2020 2021 2022 64 Capital Market Day – December 5, 2024
Slide 9: The electric vehicle market: the new equation
The new equation 1 2 3 4 The electric vehicle market The electric vehicle market The electric vehicle market The electric vehicle market Delays on some Excess inventories An investment Heightened market prospects plan launched in geopolitical (EV and silicon (solar power, early 2023, with a tensions
Slide 10: Investments postponed and adapted to market trends
Investments postponed and adapted to market trends Capex for the growth plan (€m) Electric vehicle market ... with consequences for Reduction of €-30 to -40 m vs inital plan less buoyant than the SiC semiconductor expected, particularly in market... Europe... 2023 95 2024 est. 120 2025 est [65-75] .
Slide 11: A peak in investment in 2024
A peak in investment in 2024 Industrial capex 250 (€m) 200 150 100 On average~ 6.5% of sales 50 0 2022 2023 2024 2025 2026 2027 2028 2029 67 Capital Market Day – December 5, 2024
Slide 12: Acceleration of cost and cash flow optimization measures
Acceleration of cost and cash flow optimization measures Structural and contextual Strengthened action plan Cost/gain optimization measures for inventory management updated • Closure of workshop in the Netherlands and transfer of business to other European countries • Plan adapted to each plant • €1
Slide 13: A global presence that is an asset in the current geopolitical context
A global presence that is an asset in the current geopolitical context Limited impact of trade barriers Europe 1 80% local suppliers 33% 38% North America Asia-Pacific 2 Very limited foreign exchange risks 38% 26% 33% Borrowings in local currency (little Rest of the world 22% 3 currency effect on fi
Slide 14: A doubling of EBITDA over the duration of the plan
A doubling of EBITDA over the duration of the plan EBITDA (€m) [EBITDA less capex] (€m) 350 EBITDA 350 x1.8 300 300 [EBITDA less capex] x2.5 250 250 200 200 150 150 100 100 50 50 0 0 2022 2023 2029 2022 2023 2029 70 Capital Market Day – December 5, 2024
Slide 15: A financial structure that remains solid
A financial structure that remains solid Net debt (€m) Leverage Bank 500 4,0 covenants at 3.5 3,5 400 3,0 2,5 300 Group leverage 2,0 policy 200 1,5 1,0 100 0,5 0 0,0 2017 2018 2019 2020 2021 2022 2023 2024 71 Capital Market Day – December 5, 2024
Slide 16: Acquisitions: A disciplined approach
Acquisitions: A disciplined approach Over the 2017-2024 >200 Completed in period opportunities considered 2024 and turned down • Mainly consolidation A selective business • Expertise, know-how approach • Vertical markets and/or regions with sustained growth • Profitable and solid Strict financial •
Slide 17: Substantial free cash flow to finance acquisitions during the year
Substantial free cash flow to finance acquisitions during the year AVAILABLE LIQUIDITY At June 30, 2024 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
Slide 18: Key takeaways
Key takeaways 1 2 3 A financial Accelerated Medium-to- model focused adaptation long-term plan on creating measures unchanged value (EBITDA, cash) 74 Capital Market Day – December 5, 2024