Slide 1: 2024 Annual Results
2024 Annual Results March 13, 2025
Slide 2: A solid 2024
A solid 2024 Record Strengthened Growth Solar and sales presence in the in transportation, semiconductor (Si United States, with wind and process and SiC) markets €1,244m 3 acquisitions industries markets weaker than in the country expected 2 Mersen - Annual Results 2024
Slide 3: The Group's new dimension helped us generate solid results
The Group’s new dimension helped us generate solid results Acceleration of the Excellent cash generation Solid EBITDA margin adaptation plan allows us to propose a margin of 16.5% (with impact on inventories dividend of and EBITDA in 2024) 0.90 € per share A robust financial Secured financing struct
Slide 4: A solid 2024 (Thomas Baumgartner, CFO)
01 A solid Thomas Baumgartner CFO 2024
Slide 5: Record sales
Record sales Reported sales (€m) 1,244 1 400 1,211 1 200 1,115 1 000 923 847 800 600 400 200 0 2020 2021 2022 2023 2024 5 Mersen - Annual Results 2024
Slide 6: Strong sales growth in North America in 2024
Strong sales growth in North America in 2024 Sales 2024 €400m Organic growth +1.8% Europe North America Asia-Pacific €509m Organic growth €298m South America Organic growth +6.3% Africa - 1.2% €37m Organic growth - 4.0% 6 Mersen - Annual Results 2024
Slide 7: Growth in end markets over the course of the year, with the exception of the energy market (solar)
Growth in end markets over the course of the year, with the exception of the energy market (solar) 9% CHEMICALS + 33% 16% PROCESS INDUSTRIES TRANSPORTATION + ++ 1,244 M€ +2.6%* 19% ENERGY 23% - ELECTRONICS Organic growth 2024 vs 2023 + ++ +10% ; +20% + + 0% ; +10% - -10% ; 0% *Estimated breakdown of
Slide 8: Profitability maintained at a high level
Profitability maintained at a high level EBITDA before EBITDA non-recurring items margin (€m) 206 250 18% 16.7% 16.7% 16.5% 16.1% 203 200 186 16% 14.5% 149 150 14% 123 100 12% 50 10% 2020 2021 2022 2023 2024 8 Mersen - Annual Results 2024
Slide 9: Operating income before non-recurring items
Operating income before non-recurring items En M€ 2023 2024 EBITDA before non-recurring items 202.7 205.5 As a % of sales 16.7% 16.5% Depreciation & amortization (65.4) (74.5) Operating income before non-recurring items 137.3 131.1 As a % of sales 11.3% 10.5% 9 Mersen - Résultats Annuels 2024
Slide 10: Two profitable segments
Two profitable segments Operating income before non-recurring items (€m) 120 15.7% Advanced Materials 13.9% Profitability impacted by negative mix 100 and higher depreciation and amortization 80 10.5% Current EBITDA: €147m 10.1% EBITDA margin: 21.4% 60 40 Electrical Power 20 Higher profitability tha
Slide 11: Pricing power and productivity gains helped offset inflation
Pricing power and productivity gains helped offset inflation Operating margin before non-recurring items (in % points) 11.3 -1.2 +1.2 10.5 -0.4 +2 -1.7 -0.6 -0.1 -0.6 +0.6 +0.3 Operating Volume-mix Price effect Inflation raw Productivity Payroll p-SiC project, Currency and Amortization Other Operati
Slide 12: Acceleration of cost and cash flow optimization measures
Acceleration of cost and cash flow optimization measures Structural optimization and Reinforced action plan adaptation measures on inventory management accelerated at the end of 2024 Costs 2024-2025: €23m Cash costs: €14m (2025) Inventory reduction objective -€30m at comparable business level Gain:
Slide 13: Net income
Net income in € million 2023 2024 Operating income before non-recurring items 137.3 131.1 Non-recurring income & expenses (5.9) (23.5) Mainly adaptation Plan Increase in gross debt and interest Net financial expense (19.3) (24.0) rates Effective tax rate restated from Income tax (26.2) (22.0) adapta
Slide 14: A cash-generating model
A cash-generating model Cash flow from operating activities before capital expenditure (€m) 250 194 200 179 150 133 117 106 100 50 0 2020 2021 2022 2023 2024 14 Mersen - Annual Results 2024
Slide 15: Capex in line with the revised growth plan
Capex in line with the revised growth plan Other growth projects 44 Growth plan (SiC, EV) 110 €204m + €12m Maintenance intangible assets 40 -€15m compared with forecasts (carried forward to 2025) Safety and environment 10 15 Mersen - Annual Results 2024
Slide 16: A financial structure that remains robust
A financial structure that remains robust Net debt (€m) Leverage Bank 500 4,0 covenants at 3.5 3,5 400 370 3,0 2,5 300 1.8 Leverage 241 2,0 Group 180 193 212 Policy 200 1,5 1,0 100 0,5 0 0,0 2020 2021 2022 2023 2024 Includes €74m cash-out for the acquisitions of which €8m earn-out payments 16 Mersen
Slide 17: Strong liquidity strengthened by a new USPP to cover medium-term repayments
Strong liquidity strengthened by a new USPP to cover medium-term repayments Situation as of December 31, 2024 AVAILABLE LIQUIDITY Situation as of December 31, 2024 (Credit lines drawn in €m) USPP 2025 (funds available in April 2025) ~ 265 M€ (Group bank revolving facility available) 96 ~ 50 M€ 90 Ca
Slide 18: Dividend payout in line with Group policy
Dividend payout in line with Group policy Amount distributed (€m) 1.25 € PAYOUT RATIO*: 1.25 € 0.90 € 37% of net income 1.00 € 30% of restated net income** 0.65 € 30 26 21 22 13 In line with the Group's dividend policy (30% to 40% payout) 2020 2021 2022 2023 2024 Dividend per share * Dividend / Grou
Slide 19: Our Medium-term Growth Drivers (Luc Themelin, CEO)
02 Our Medium-term Growth Luc Themelin CEO Drivers
Slide 20: Our pillars for the medium term
Our pillars for the medium term A global, well-balanced Energy transition: medium- geographic footprint term growth markets 20 Mersen - Annual Results 2024
Slide 21: A global presence is an asset in the current geopolitical context
A global presence is an asset in the current geopolitical context Continental Europe 17 industrial sites €375m 2024 sales ~92% locally produced United States China 15 industrial sites €450m 2024 sales 7 industrial sites ~75% locally produced €145m 2024 sales ~95% locally produced Sales of Destinatio
Slide 22: The United States: An essential market to accelerate growth
The United States: An essential market to accelerate growth Sales in the United States (€m) 450 500 450 410 400 Electrical distribution 343 350 Semiconductors 300 256 242 250 Energy storage 200 150 Aeronautics 100 50 Process industries 0 2020 2021 2022 2023 2024 22 Mersen - Annual Results 2024
Slide 23: Acquisitions in 2024: An opportunity for consolidation in a dynamic market
Acquisitions in 2024: An opportunity for consolidation in a dynamic market • Graphite consolidation (downstream) • Annual sales: ~40M USD • Consolidation from July 1st 2024 AVERAGE • Expertise in cooling and consolidation of other Mersen expertise at a single site ACQUISITION MULTIPLE: • Annual sale
Slide 24: Solar energy: Sustained growth in installed capacity
Solar energy: Sustained growth in installed capacity to stimulate energy storage and transportation markets Annual installations in GW 1400 1270 1190 1200 1070 Actual 2024: beyond expectations, 1000 with strong growth in China 930 790 800 680 560 600 400 810 840 840 750 610 660 200 440 170 228 99 10
Slide 25: New solar cell manufacturing projects: Growth potential for Mersen
New solar cell manufacturing projects: Growth potential for Mersen Solar cell manufacturing plant projects (vertical integration, from polysilicon to solar cell) 2 projects 10 GW each India United States 2 projects 3 + 5 GW Turkey 1 project South-East Asia 1 GW 6 projects ~25 GW For Mersen, a potent
Slide 26: Renewable energies: Untapped medium- to long-term potential
Renewable energies: Untapped medium- to long-term potential 2024 2025 2029 Horizon Sales €142m Trend: downward Sales > €200m Solar Materials Materials Sharp slowdown in the 2nd half-year, Solar: Anticipated decline Leverage our industrial capabilities due to very high inventory levels in in 1st half
Slide 27: Electric vehicles' market growth strongly linked to China
Electric vehicles’s market growth strongly linked to China; For Mersen, the accessible market remains important BEV and PHEV production in millions Forecasts for 2026 onwards are still to be confirmed 50 45 2024: higher than 40 estimated in China, lower in the rest of the 35 21.5 Chinese market worl
Slide 28: A 3-year delay in the EV market, but positive outlook beyond
A 3-year delay in the EV market, but positive outlook beyond this time horizon 2024 2025 2029 Horizon Sales €30m Trend: Sales ~ €100m moderate growth Strong growth in sales compared with Continued deliveries to ACC Accessible market outside China 2023, mainly fuses (small series). Acceleration expec
Slide 29: High inventory levels impacting SiC market growth rates
High inventory levels impacting SiC market growth rates SiC power wafer market in $m 3000 Initial scenario 2500 Updated 2000 Mersen scenario 1500 1000 500 0 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Source : Annual growth Yole Power SiC Coupound semiconductor +40% +46% +72% +6
Slide 30: p-SiC: Industrial project and technical solution developments in 2024
p-SiC: Industrial project and technical solution developments in 2024 site rehabilitation Gennevilliers’ p-SiC wafers Installation of equipment 30 Mersen - Annual Results 2024
Slide 31: SiC semiconductors: A 3-year delay compared with the original plan
SiC semiconductors: A 3-year delay compared with the original plan 2024 2025 2029 Horizon Sales €100m Trend: downward Sales > €220m Potential mainly linked to the EV market Lower-than-expected growth Decrease in 2025 (cf. 3-year delay in Mersen SiC market and customer inventories) Strategy: Slower g
Slide 32: Silicon semiconductor market outlook boosted by AI and data centers
Silicon semiconductor market outlook boosted by AI and data centers Global semiconductor market in $ bn 1200 ~ 1000 est. 1000 Growth strongly linked to 800 720 data centers and 640 high-speed +18% 600 540 computing (AI) 400 HBM (High Bandwith Memory): CAGR > 50% 200 0 2023 2024 2025e 2026e 2027e 202
Slide 33: Resilient medium-term potential for the silicon semiconductor market
Resilient medium-term potential for the silicon semiconductor market 2024 2025 2029 Horizon Sales €58m Trend: growth Sales > €100m Inventory-related decline in 2024, Recovery at the end of 2024, Considerable demand for high-speed with a recovery at the end of the continuing into 2025 computing (AI)
Slide 34: Outlook
03 Luc Themelin CEO Outlook
Slide 35: 2025 outlook
2025 outlook Sales Profitability Industrial capex Reported sales stable to EBITDA margin between positive on the basis of a 16% and 16.5% €160-170m of which €15m EUR/USD exchange rate of carried forward from 2024 1.05 and EUR/RMB of 7.65 (includes normative capex Operating margin before non- and gro
Slide 36: Medium-term plan 2029
Medium-term plan 2029 Around SALES € 1,700 m 2029 OPERATING MARGIN CURRENT EBITDA ROCE BEFORE NON-RECURRING MARGIN ITEMS 13% ± 50 pts 12% ± 50 pts 19% ± 50 pts of sales of sales 36 Mersen - Annual Results 2024
Slide 37: Questions
Questions