Slide 1: Morgan Advanced Materials plc 2024 Preliminary Results
Morgan Advanced Materials plc 2024 Preliminary Results Pete Raby, Chief Executive Officer Richard Armitage, Chief Financial Officer 28 February 2025
Slide 2: Agenda
© Morgan Advanced Materials 2 Agenda • Introduction and summary – Pete Raby • 2024 Full year results – Richard Armitage • Operational update – Pete Raby
Slide 3: Introduction
© Morgan Advanced Materials 3 Introduction • Organic constant-currency* revenue growth of 3.7%, with 7.6% from our faster growing markets, reflecting challenging market conditions in the second half • Simplification programme accelerated; annual savings of £27 million from 2026 now expected (previou
Slide 4: 2024 Full year results
© Morgan Advanced Materials 4 2024 Full year results Richard Armitage
Slide 5: Group Performance
© Morgan Advanced Materials 5 Group Performance % change from FY 2023 £m FY 2024 FY 2023 At organic constant- As reported currency Revenue 1,100.7 1,114.7 (1.3)% 3.7% Group adjusted operating profit1 128.4 120.3 6.7% 16.5% Group adjusted operating profit margin % 11.7% 10.8% Return on invested capit
Slide 6: Group adjusted operating profit bridge
6 Group adjusted operating profit bridge • Volume reflects weak market conditions Organic constant currency growth +16.5% in H2 across core industrial and 7.0m 128.4m Semiconductors markets 120.3m 7.2m • 2023 Cyber impact recovered • Pricing & Efficiency measures more than 15.0m offset cost inflatio
Slide 7: Cash flow summary
7 Cash flow summary Working capital inflow of £m FY 2024 FY 2023 £14.6m FY 2023: £(3.0)m EBITDA 171.1 159.8 Change in working capital 14.6 (3.0) Net capital investment of Net capital expenditure (90.2) (58.5) Net interest (15.3) (11.6) £90.2m Tax paid (29.2) (30.3) FY 2023: £58.5m Lease payments & o
Slide 8: Simplification and restructuring
8 Simplification and restructuring £m 2023 2024 2025 2026 2027 Total Incremental adjusted operating profit¹ benefits 1 8 24 27 27 - Costs charged to specific adjusting items (7) (13) (25) - - (45) Programme accelerated: • Additional savings identified in response to weak 85 Sites market conditions 7
Slide 9: 2024 Specific adjusting items
9 2024 Specific adjusting items Global ERP implementation: Costs associated with the design, configuration and implementation costs of Global ERP £5.2m Restructuring programme: Redundancy and site closure costs associated with our business simplification and restructuring £13.1m programmes Other: Ma
Slide 10: Capital investment
10 Capital investment Revised 2027 Semiconductor guidance 100 Semiconductor c.£60m Capex investment underway Other capacity 80 Maintenance 60 Estimated 40 +£40m £m additional revenue from investment 20 0 Expected at least 2024 2025 2026 2027 +£12m in incremental profit by 2027
Slide 11: FY2025 technical guidance
11 FY2025 technical guidance Capital expenditure c. £90m Net finance charge: Interest charges (c. £16-17m) c. £18-20m IAS 19 pensions net interest charge (c. £0.5m) IFRS 16 lease interest (c. £2m) © Morgan Advanced Materials Effective tax rate 26-28% Dividend Policy in the medium term c. 2.5x Foreig
Slide 12: Operational Review
© Morgan Advanced Materials 12 Operational Review Pete Raby
Slide 13: Growth across major market segments
© Morgan Advanced Materials 13 Growth across major market segments Year-on-year organic % change at constant-currency Semiconductors 0.9% • Slowdown in SiC power electronics 1 Healthcare 9.2% • Growth in feedthroughs for implantable medical devices Clean Energy & Clean Transportation 19.3% • Ceramic
Slide 14: Segmental performance
© Morgan Advanced Materials 14 Segmental performance Revenue Organic constant- Adjusted operating profit1 Margin £m currency growth £m % FY 2024 FY 2023 % FY 2024 FY 2023 FY 2024 FY 2023 Thermal Products 418.2 454.4 (0.6)% 40.0 40.2 9.6% 8.8% Performance Carbon 345.2 327.2 9.3% 55.1 50.0 16.0% 15.3%
Slide 15: CO2e emissions now 50% below 2015 baseline
© Morgan Advanced Materials 15 CO2e emissions now 50% below 2015 baseline Absolute CO2e (Scope 1 and 2)1 3% reduction in absolute CO2e emissions compared with FY 2023 driven by: • Green energy procurement: transition to renewable and other carbon free energy sources • Efficiency and process optimisa
Slide 16: Water, Safety and Diversity
© Morgan Advanced Materials 16 Water, Safety and Diversity Water usage Water usage in stressed areas Lost time accident rate % Female leadership population1 1 Leadership population consists of approximately 400 of the most senior individuals in the organisation.
Slide 17: WBG Semiconductor impacted by BEV slower growth
© Morgan Advanced Materials 17 WBG Semiconductor impacted by BEV slower growth • BEV market grew at 11% in 2024 against an expected BEV forecast has changed significantly 30% growth. Capacity and supply have exceeded 35 PwC/S&P (Dec 2023) short-term demand, creating inventory challenges in Millions
Slide 18: Medium term outlook unchanged
© Morgan Advanced Materials 24 April 2024 18 Medium term outlook unchanged Faster Growing Markets 22% Semiconductors, 10-15% Healthcare, Clean Energy and CAGR Clean Transportation 52% Global Industrial, 2-4% Metals, Oil and CAGR Gas, Energy Transportation 26% Aerospace, Defence, Fire Protection, Ind
Slide 19: Financial framework unchanged
19 Financial framework unchanged Delivering enhanced EPS growth Clear through cycle financial framework Organic revenue growth 4-7% organic revenue growth + Continuing profit growth 12.5% to 15% adjusted operating profit margin + Accretive M&A ROIC 17-20% + Additional shareholder returns Leverage of
Slide 20: Outlook
© Morgan Advanced Materials 20 Outlook • Looking ahead to this year, European and Chinese industrial and metals markets are weak, and we expect those to be a headwind, partially offset by the US • Semiconductors also a headwind given the stronger H1 last year along with weakness in the SiC power ele
Slide 21: Summary
© Morgan Advanced Materials 21 Summary • Despite increasingly weak market conditions, we have grown revenue +3.7%, with +7.6% growth from our faster growing markets • Margin improved to 11.7%; foundations laid for return to 12.5% during 2025 • Restructuring delivers a leaner more efficient business
Slide 22: Appendix
© Morgan Advanced Materials 22 Appendix
Slide 23: End-market mix (as a % of revenue)
© Morgan Advanced Materials 23 End-market mix (as a % of revenue) Main markets by GBU1 Thermal Products Industrial, Chemical and petrochemical, Metals, Automotive, Copper (construction), Precious metals Performance Carbon Rail, Industrial equipment, Power generation, Electronics and semiconductor, P
Slide 24: Reported statutory figures
© Morgan Advanced Materials 24 Reported statutory figures £m Results before Results before Specific adjusting Specific adjusting specific adjusting Total specific adjusting Total items items items items Revenue 1,100.7 - 1,100.7 1,114.7 - 1,114.7 Operating costs before amortisation of intangible ass
Slide 25: Cash flow summary
© Morgan Advanced Materials 25 Cash flow summary £m FY 2024 FY 2023 EBITDA 171.1 159.8 Change in working capital 14.6 (3.0) • Working capital shows a strong inflow Change in provisions and other (22.8) (30.5) with a £17.6m improvement versus Cash generated from continuing operations 162.9 126.3 2023
Slide 26: Strong balance sheet and available liquidity
© Morgan Advanced Materials 26 Strong balance sheet and available liquidity Facilities maturity profile • Headroom on banking covenants 400 • Net debt to EBITDA excluding the 350 impact of IFRS 16: 1.4x (FY2023: 1.2x) 300 250 200 • Significant liquidity £m 150 100 • £275m available RCF and Delayed D
Slide 27: Foreign currency impacts
© Morgan Advanced Materials 27 Foreign currency impacts The principal exchange rates used in the translation of the results of overseas subsidiaries were as follows: FY 2024 FY 2023 Closing Average Closing Average GBP to: rate rate rate rate USD 1.25 1.28 1.27 1.24 Euro 1.21 1.18 1.15 1.15 For illus
Slide 28: Adjusted earnings per share
© Morgan Advanced Materials 28 Adjusted earnings per share £m FY 2024 FY 2023 Profit for the period attributable to shareholders of the Company 50.3 47.3 Profit from discontinued operations (0.1) (0.7) Profit from continuing operations 50.2 46.6 Specific adjusting items 23.1 25.1 Amortisation of int
Slide 29: Contact
© Morgan Advanced Materials 29 Contact investor.relations@morganplc.com +44 (0)1753 837 000 morganadvancedmaterials.com