Slide 1: ESG presentation
ESG presentation September 2021
Slide 2: Key figures and commitments for sustainability
A global player at the heart of technologies who drives the industry forward and shapes a more sustainable society Key figures Commitments for sustainability Sustainable Waste Safety Human capital Diversity development recycling at work richness € 847m 2020 sales € 123m 2020 EBITDA 14.5% of sales 56
Slide 3: What makes Mersen unique?
What makes Mersen unique? Competitive Positioned on Excellence to Expertise differentiation attractive markets drive cash-flow Solid balance sheet High barriers Sustainable and cash generation of entry (graphite development Advanced formulation, electrical Materials markets (Renewable High gross mar
Slide 4: Advanced Materials and competitors
Advanced Materials: High value-added customized solutions relying on a unique materials expertise Anticorrosion Equipment Graphite Specialties Power Transfer Technologies N° 1-2 Worldwide N° 1-2 Worldwide N° 1-2 Worldwide Engineering systems Columns, reactors and Laser galvo scanning Wafers carrier
Slide 5: Electrical Power: A unique portfolio serving two key applications
Electrical Power: A unique portfolio serving two key applications Electrical Protection N° 2 Worldwide in industrial fuses Coverage of all standards worldwide: UL, IEC, DIN, etc. Competitors: Eaton(US), Littelfuse (US) Fuses and fuse holders Surge protection devices Power Conversion N° 2 Worldwide (
Slide 6: A global footprint to maximize customer intimacy
A global footprint to maximize customer intimacy 24 sites 34% of sales 14 sites 33% of sales 13 sites 30% of sales Present in all large industrial countries with dedicated plant per business unit 5 sites 3% of sales Multi-activities plants in other countries (20% of total sales) Situation as of Dece
Slide 7: Prestigious and exacting customers
Prestigious and exacting customers PROCESS INDUSTRIES CHEMICALS TRANSPORTATION ELECTRONICS ENERGY > 65% customized products Replacement market 65% of sales Largest client ~3% of sales Longstanding ties 7 CSR investors – Sept 2021
Slide 8: A longstanding sustainability strategy
A longstanding sustainability strategy 2010 2018 2021 2022 Set-up of a Sustainability Materiality matrix sustainability report New non financial Update of Sustainability roadmap and mid-term objectives on: Sustainability targets on: - Climate change materiality matrix - Ecological transition - Diver
Slide 9: A strong commitment to social responsibility
A strong commitment to social responsibility Target 2021 Achieved in 2020 ECOLOGICAL TRANSITION 55% 56% % of sales to sustainable dvpt CLIMATE CHANGE - 20% by 2025 compared with 2018 N/M. Target set up early 2021 PLANET Intensity of GHG emissions (scopes 1 & 2) WASTE +15-point +14-point Industrial w
Slide 10: CSR Governance
CSR Governance AUDIT & ACCOUNT COMMITTEE BOARD OF DIRECTORS OF THE BOARD CSR Strategy review CSR Risk analysis review EXECUTIVE COMMITTEE Promotes the Group's CSR strategy and implements it. Compliance HSE committee CSR committee Committee CEO CEO HR CEO HR CFO HR Operational Excellence Operational
Slide 11: A recognized commitment and improvement for all stakeholders
A recognized commitment and improvement for all stakeholders from BBB in October 2019 2020: first year to disclose on Climate to A in 2021 Change and Water Security 2021: Ongoing from Bronze in Feb. 2020 to Gold in Sept. 2021 Signatory since 2009 Advanced scope status since 2021 11 CSR investors – S
Slide 12: Values & Ethics shared by all employees
Values & Ethics shared by all employees Governance Chief Compliance Officer reporting to the Audit & Account committee Quarterly Ethics & Compliance committee chaired by the CEO Whistleblowing system (global and local – France, China, USA) Training programs Ethics: for all employees An
Slide 13: High quality board of directors
High quality board of directors Executive Listed Mersen Industrial Innovation Strategy International Finance CSR Management Company businesses expertise M&A Isabelle Azemard Pierre Creusy 62% independent (employee representative) Michel Crochon 50% women Carolle Foissaud Magali Joessel 97% Olivier L
Slide 14: Diversified shareholding base
Diversified shareholding base BpiFrance + CdC Individuals (incl. employees) 13% 16% European investors 21% as of June 2021 27% French investors 23% North American investors 14 CSR investors – Sept 2021
Slide 15: Our growth markets
01 Our growth markets
Slide 16: Sustainable development markets are propelling growth
Sustainable development markets are propelling growth 56% of sales linked to sustainable development markets +11%* vs H1 2020 Transportation Energies Solar power Rail Wind power Electric vehicles 14% 21% 10% Chemicals €445m +7% 23% Electronics Manufacture of SiC semi-conductors Processes 32% Manufac
Slide 17: Strong first-half performances, raising 2021 objectives
Strong first-half performances, enabling the Group to raise its objectives for 2021 2021 2021 Original forecasts New forecasts Solar power Energy Wind power Conventional energy Manufacture of SiC semi-conductors Electronics Manufacture of Si semi-conductors Power electronics Rail Transportation Aero
Slide 18: Solar power: significant potential for Mersen
Solar power: significant potential for Mersen by focusing on premium quality TRUSTED A GROWING RELATIONS WITH CONTINUED CUSTOMERS TECHNICAL 2021 MARKET across the whole value INNOVATIONS MID-TERM chain ANNUAL ▪ Solar cell ▪ Increasing the size REVENUE ▪ Expected ▪ H1 sales: €33m manufacturers: of ce
Slide 19: Power semiconductor market is growing fast
The power semiconductor market is growing fast and is preparing for the needs of the EV market A UNIQUE OPERATING ACROSS ALL 2021 EXPERTISE GEOGRAPHIES, CLOSE TO INDUSTRY PLAYERS MID-TERM ▪ Key products for the SiC Long-standing market ▪ H1: €20m ANNUAL ingot manufacturing players (including ▪ Ver
Slide 20: EV: major steps forward
EV: major steps forward RELATIONS PARTNER OF THE 2021 WITH AUTOMOTIVE INDUSTRY MID-TERM ANNUAL ▪ Traditional car ▪ Contract with REVENUE manufacturers ▪ H1 sales: €8m Marquardt, production ▪ New players to start-up in 2022 €40-70M ▪ Tier-one suppliers for ▪ Strong growth in H1 manufacturers ▪ Strate
Slide 21: Continued optimization of the manufacturing base
Continued optimization of the manufacturing base to prepare for the future Semiconductor Electric vehicle Columbia (USA) market market ▪ Project for a new extended plant in ▪ Strengthened dedicated team ▪ Start-up of the GRI insulation line South Korea (Americarb) ▪ Large-scale production of EV fuse
Slide 22: First-half 2021 results
02 First-half 2021 results
Slide 23: Return to growth in H1 2021
Return to growth in H1 2021, with an acceleration in the 2nd quarter €451m +7% North +6% Q1 Q2 America vs. H1 2020 +0% +15% Europe +6% vs. H1 2020 Like-for-like growth (as a %) Asia-Pacific +7% vs. H1 2020 South America/ +33% Africa vs. H1 2020 23 CSR investors – Sept 2021
Slide 24: Significant increase in profitability
Significant increase in profitability Operating margin before non-recurring items (% of sales) Operating income before non-recurring items (€m) 9.6% H1 2020 operating margin before 8.1% non-recurring items 8.1% Volume/mix effects +2.1 H1 2021 EBITDA 43 Structural savings (adaptation plan) +1.1 €71m
Slide 25: Structural and temporary impacts
Structural and temporary impacts Structural savings (Adaptation plan) Temporary Impacts (Covid crisis) millions d’€ 2020 H1 FY 2022 Total H1 2021 vs H1 2020 2021 2021 Restructuring cost (P&L) 17 2 5 22 - Reduction in travel expenses, Trade shows, … - Non-renewal of Covid-related financial aids Expec
Slide 26: Both segments contributed to profitability growth
Both of the Group’s segments contributed to profitability growth Operating margin before non-recurring items (% of sales) Operating income before non-recurring items (€m) Advanced Materials Electrical Power 13.6% 12.8% AM segment Slight positive volume effect 9.3% Positive effect of adaptation
Slide 27: Net income up by more than 50%
Net income up by more than 50% In €m H1 2020 H1 2021 Operating income before non-recurring 34.7 43.3 items Non-recurring expenses Mainly Columbia (USA), Non-recurring income and expenses (4.9) (1.6) restructuring costs partly offset by favorable dispute settlements Net financial expense (6.1) (5.6)
Slide 28: Higher operating cash flow generation
Higher operating cash flow generation Cash flow conversion* 65% 46 35 Operating cash Funding for capex flow BEFORE capex (€m) €28m Capex in €m 28 WCR 20% of sales 24 (28% in H1 2020) S1 2020 S1 2021 * Operating cash flow before capex/EBITDA 28 CSR investors – Sept 2021
Slide 29: Stable net debt, enabling the Group to finance future growth
Stable net debt, enabling the Group to finance its future growth Not including Lease liabilities: €46m 180 184 Provisions for pension obligations: €60m 46 (6) (4) (3) (9) Included (28) Net debt/EBITDA Adaptation plan 1.4 Net debt/Equity 31% Dec. 2020 Operating cash Industrial capex IT Acquisitions I
Slide 30: A solid balance sheet with debt maturity raised to 6 years
A solid balance sheet with average debt maturity raised to 6 years after the new USPP REPAYMENT SCHEDULE OF COMMITTED FACILITIES DRAWN DOWN AT JUNE 30, 2021 INCLUDING A SIMULATION OF THE NEW USPP (IN €M) MATURITY SCHEDULE OF CONFIRMED FACILITIES DRAWN DOWN AT DECEMBER 31, 2020 (IN €M) 130 130 New US
Slide 31: 2021 guidance revised upwards
2021 guidance revised upwards Original guidance: Organic sales growth of between 2% and 6% Guidance revised in early July Revision based on trends Organic sales growth of between 6% and 8% observed in H1 Original guidance: Operating margin before non-recurring items of between 8% and 8.8% Revision O
Slide 32: KPI on sustainability
KPI on sustainability
Slide 33: Key KPI on Environment (2020 results)
Key KPI on Environment (2020 results*) 40% 289k 60% Recycled wastes Ratio of certified Tons CO2 equivalent Target 61% in 2020 (53% in 2019) plants in 2020 in 2020 in 2021 (39% in 2019) (370k in 2019) 16k Tons of wastes in 2020 (19k in 2019) ISO 14001 Certification Greenhouse Gas Emissions Wastes +1%
Slide 34: Greenhouse gas emissions, the carbon footprint of the Group
Greenhouse gas emissions, The carbon footprint of the Group 289,000 tCO2e emitted in 2020* 52,581 Top 5 5 Sources of tons emissions 93,915 142,687 tons Scope 11 SCOPE tons Direct Scope 22 SCOPE Scope 33 SCOPE Indirect Indirect 4 Employees 2 Travels & Fuel Purchase of Commute Combustion products Phys
Slide 35: Key KPI on Human Capital (2020 results)
Key KPI on Human Capital (2020 results) 91% 92% Site managers with 24.2% of employees proud to Women engineers and be part of the Group local nationality professionals Target 25 to 30% by 2022 Sense of belonging Cultural Diversity Gender Diversity +3 pts vs 2018 +3 pts vs 2019 +1.2 pts vs 2019 87% 1
Slide 36: Safety: Mersen among the best in class
Safety: Mersen among the best in class Benchmark with the best practices Strengthen our safety culture Our training and From a managed safety to prevention effort place us a behavioral safety in the first ranks 36 CSR investors – Sept 2021