Slide 1: Elementis plc 2024 Interim Results
Unique chemistry, sustainable solutions Elementis plc 2024 Interim Results 1
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 Introduction and highlights Paul Waterman Segmental performance Paul Waterman Group financials Ralph Hewins Outlook Paul Waterman Unique chemistry, sustainable solutions Q&A Paul Waterman and Ralph Hewins Unique chemistry, sustainable solutions 3
Slide 4: Introduction and highlights
Unique chemistry, sustainable solutions Introduction and highlights Paul Waterman 4
Slide 5: Confidence in achieving 2026 CMD targets
Confidence in achieving 2026 CMD targets Strong Revenue and earnings growth driven by Good progress on financial targets first half Coatings and Personal Care Above market growth despite flat H1 2024 2026 targets Growth driven by demand environment self-help actions Efficiency delivery accelerated O
Slide 6: Improved safety performance
Improved safety performance Injuries Recordable injuries Elementis TRIR TRIR Highlights 9 2 Performance 8 50% reduction in total recordable injuries 7 85% of plants: zero employee injuries for >1 year 1.5 6 60% of plants: zero injuries >3 years 5 1 4 Safety initiatives 3 0.5 Global HSE Week campaign
Slide 7: Financial Performance
Financial Performance Best H1 profit result since 2019 $m (unless stated otherwise) H1 24 H1 23 % Change Revenue 383 364 5% Adjusted operating profit 65 53 24% Adjusted operating margin 17.0% 14.4% 260bps Adjusted profit before tax 50 45 12% Adjusted diluted EPS (cents) 6.1 5.6 9% Net debt 196 255 (
Slide 8: Strategic progress
Strategic progress Continued H1 progress supports delivery of CMD objectives Innovation Growth Efficiency 15 new products to launch On track for $20m-$25m above $15m annual cost savings in 2024, 9 launched in H1 market revenue growth in 2024 expected in 2024 15% revenues from Fit for the future rest
Slide 9: 2026 financial targets on track
2026 financial targets on track Adjusted operating Operating cash Return on capital profit margin1 conversion2 employed3 (ex. goodwill) 111% 19%+ >20% >90% 87% 18% 17% 81% 77% 15% 15% 14% 14% 13% 12% Unique chemistry, sustainable solutions 2021 2022 2023 H1 24 2026 2021 2022 2023 LTM 31 June 24 2026
Slide 10: Segmental performance
Unique chemistry, sustainable solutions Segmental performance Paul Waterman 10
Slide 11: Personal Care performance
Personal Care performance Expanded capabilities driving momentum and creating higher quality business $m H1 2024 H1 2023 Change (constant currency) >$10m of higher value new business Revenue 115 112 2% Route to market optimisation Self-help cost and price management Operating profit 1 34 27 22% Oper
Slide 12: Personal Care strategic progress
Personal Care strategic progress Higher quality business, now 45% of Elementis’ profits Innovation leading to higher quality business… …creating Personal Care business of scale Innovation sales as % of total sales Personal Care proportion of Group’s operating profit1 18% Operating profit margin 35%
Slide 13: Personal Care growth platforms
Personal Care growth platforms 2026 CMD target Opportunity Key deliverables by 2026 Add $10m Skinification, individualization, Launch 8 new products speed-to-market Colour above market Expand Asia direct customer revenue Enter $40m makeup film-former market relationships cosmetics Natural solutions
Slide 14: Skin Care
Skin Care Growth platform: 2023 new H1 progress products Bentone Hydroluxe 360 All-in-one hectorite based solution for suspension and stability challenges in natural formulations 100% naturally derived Launched April 2024, >700 samples sent First launch out of planned Hydroluxe series Increase share
Slide 15: Colour Cosmetics
Colour Cosmetics 2023 new Growth platform: products H1 progress Expanded capabilities leading to >30% revenue growth in Asia Strong growth in China and other Asian markets e.g. Korea, Taiwan and Japan Route to market changes leading to direct relationships with fast growing local companies Fast grow
Slide 16: Antiperspirants
Antiperspirants 2023 new Growth platform: products H1 progress 16% revenue growth for high-efficacy products Growth driven by high-efficacy antiperspirant actives allowing 72 to 96 hours claims Launched a new active, with improved sustainability profile (using waste aluminium) Patent pending deodora
Slide 17: Performance Specialties
Performance Specialties Coatings improvement offset challenging Talc performance $m H1 2024 H1 2023 Change Much improved Coatings financial (constant currency) performance Revenue 268 252 6% Improved volumes and mix driving higher margin Operating profit1 42 34 22% $19m of new business Operating mar
Slide 18: Coatings performance
Coatings performance Higher quality business, some restocking despite continued weak demand environment $m H1 2024 H1 2023 Change (constant currency) Revenue growth supported by growth platforms, modest restocking Revenue 200 181 10% Profit growth driven by improved mix and cost management Operating
Slide 19: Coatings performance
Coatings performance Higher quality portfolio, new business and cost efficiencies Significant margin improvement… …despite continued weak demand environment Operating profit margin (Coatings and Energy) Average volume growth of select chemical companies1 Global weighted industrial production growth
Slide 20: Coatings performance
Coatings performance More normalised volumes post destocking, but demand remains subdued Sector Growth Regional Growth AMERICAS EUROPE ASIA 16% 15% 14% +8% +7% +25% 12% 10% 8% 6% 5% 4% 2% 0% Deco DECO Industrial INDUSTRIAL Global key accounts: +1% Note: Data presented on constant currency sales grow
Slide 21: Performance Specialties growth platforms
Performance Specialties Performance Specialties growth platforms 2026 CMD target Opportunity Key deliverables by 2026 Penetrate Asian premium architectural market Asia supply from China NiSAT footprint Architectural Grow at 2x (>$300m market) Global launch of biobased and Coatings market Capture dem
Slide 22: Architectural Coatings
Architectural Coatings Growth platform: H1 progress New Martinsville: Songjiang: debottlenecked new facility 2022, capacity H1 2024 New state-of-the art China up 20% NiSAT1 facility Livingston: expansion 2023, Accessing growing Asian architectural market with capacity doubled new production site Pre
Slide 23: Industrial Coatings
Industrial Coatings Growth platform: H1 progress Entering $200m fast-growth powder coatings market Top paint producers announced >$100m investments into powder coatings Hectorite sustainability and durability benefits validated by leading players: – Desired texture effects allowing to substitute PFA
Slide 24: Adhesives, sealants and construction additives
Adhesives, sealants and construction additives Growth platform: H1 progress Penetrating $700m market through premium castor-based rheology Elementis’ Thixatrol range delivering sustainability and performance benefits over fumed silica: – 50% increase in direct buying customers in H1 – Up to 80% in-p
Slide 25: Talc performance
Talc performance Challenging first half Change $m H1 2024 H1 2023 (constant currency) March/April Finnish union strike shut down country Revenue 68 71 (4%) ― Paper segment revenues lost ― Operational costs increased Operating profit1 3 9 (65%) Near-term demand remains weak Operating margin1 4.5% 12.
Slide 26: Talc
Talc Strong business fundamentals, compelling medium-term growth opportunities Strong business fundamentals Vehicle Technical Barrier coatings lightweighting ceramics applications – High-quality mine-to-market share gains operating model New launch in the Finntalc K-line, Highly engineered Opportuni
Slide 27: Group financials
Unique chemistry, sustainable solutions Group financials Ralph Hewins, CFO 27
Slide 28: Group revenue ($m)
Group revenue ($m) Improved mix and volume benefit 14 383 364 1 4 Unique chemistry, sustainable solutions Unique chemistry, sustainable solutions 28
Slide 29: Group operating profit ($m)
Group operating profit ($m) Strong growth, supported by self-help actions 7 65 7 (3) (0) 2 53 Unique chemistry, sustainable solutions Note: Totals may not cast due to rounding. Unique chemistry, sustainable solutions 29
Slide 30: Cash flow
Cash flow $m H1 24 H1 23 EBITDA 85 74 Change in working capital (21) (46) Capital expenditure (17) (14) Working capital outflow driven by Operating Cash Flow 48 14 normal seasonality Pensions (0) (1) Interest (14) (11) Tax related payments (8) (11) Capex on track for $40m Adjusting items (12) - Othe
Slide 31: Strong balance sheet
Strong balance sheet Net debt to EBITDA evolution ($m)1 2021 2022 2023 H1 24 Completed RCF refinance in H1 On track for further deleveraging at (202) (196) year end (367) (401) LEVERAGE Unique 2.6x chemistry, 2.2x sustainable 1.4x solutions 1.3x Note: 1. Excluding finance leases on a pre IFRS 16 bas
Slide 32: Disciplined capital allocation
Disciplined capital allocation Priorities for sustainable growth and shareholder returns Focus on growth and Organic growth Capex c.$40m p.a. productivity Dividend payments 2024 interim dividend Progressive dividend reinstated in 2023 of 1.1 cents Additional returns Continued deleveraging Potential
Slide 33: Efficiency: faster delivery of $30m cost savings
Efficiency: faster delivery of $30m cost savings 2024 2025 Global Supply Chain and November 2023 CMD $12m $18m Procurement Fit for the future organisational H1 2024 $15m $15m restructuring Unique chemistry, sustainable solutions Unique chemistry, sustainable solutions 33
Slide 34: Fit for the future restructuring
Fit for the future restructuring Ahead of plan, expected to deliver $8m in 2024 Actions Progress Target Simpler and more efficient structure Optimising structure 40% redundancies completed Elementis Porto New R&D and support centre in Porto $20m Recruitment 90% complete annual savings by 2025 Outsou
Slide 35: Global Supply Chain and Procurement
Global Supply Chain and Procurement Ahead of plan, expected to deliver $7m in 2024 Actions Progress / Opportunity Target Plant consolidation: USA AP Actives plant closed in June Supply chain improvements Continuous improvement: >90 projects, >$1m savings in H1 $10m Process debottlenecking Kaizens at
Slide 36: Outlook
Unique chemistry, sustainable solutions Outlook Paul Waterman 36
Slide 37: Outlook
Outlook H1 results driven by One-off restocking benefit self-help actions will not recur Stable macro No demand environment acceleration assumed Growth $348m NBO pipeline platforms 15 new products Efficiency Progressing faster programmes than expected Unique chemistry, sustainable solutions Confiden
Slide 38: Q&A
Unique chemistry, sustainable solutions Q&A 38
Slide 39: Appendices
Appendices Business model and differentiators FY 2024 technical guidance Adjusting items Net debt: IFRS 16 reconciliation Unique chemistry, sustainable solutions Unique chemistry, sustainable solutions 39
Slide 40: Business model and differentiators
Business model and differentiators Business model Differentiators • Two focused businesses • Integrated model • Customer centric and Formulation expertise Rheology Hectorite innovation focus Holistic optimisation of Critical to end product Natural white clay formulation to achieve performance - make
Slide 41: Tax charge and 2024 technical guidance
Tax charge and 2024 technical guidance Tax charge 2024 technical guidance $m H1 24 H1 23 P&L items Depreciation of c.$40m (of which c.$5m is IFRS Adjusted tax charge 14 12 16 related) Amortisation of c.$10m (of which majority Tax charge: adjusting items (2) (3) relates to acquired intangibles) Net f
Slide 42: Adjusting items
Adjusting items $m Expense/(income) H1 24 H1 23 Amortisation of intangibles arising on H1 2024 cash component of adjusting 7 7 acquisition items of c.$12m (H1 2023: $1m) Environmental provisions (1) - Talc impairment $66m Business transformation/other 2 1 Settlement of Brazil customs case 3 - Impair
Slide 43: Unique chemistry, sustainable solutions
For more details North America Europe Asia United Kingdom please contact: Elementis Elementis UK Ltd Deuchem (Shanghai) Elementis PLC 469 Old Trenton Road c/o Elementis GmbH Chemical Co, LTD. The Bindery 5th Floor elementis.com East Windsor Stolberger Strasse 370 99, Lianyang Road 51-53 Hatton Garde