Nexam Chemical Holding Ab · OMXSTO:NEXAM
Nexam Chemical Holding Ab — Q1 2025 Earnings Presentation
28 slides from Nexam Chemical Holding Ab's earnings presentation, Apr 24, 2025
Slide 1: Nexam Chemical Q1 2025 Presentation
Nexam Chemical Q1 2025 Presentation 25-04-24 | Ronnie Törnqvist, CEO Marcus Nyberg, CFO
Slide 2: The future of plastics. Patented.
The future of plastics. Patented.
Slide 3: Q1 2025 Sales of Reactive Recycling increased 50% vs. Q4 2024
Q1 2025 Sales of Reactive Recycling increased 50% vs. Q4 2024!* *) More on this later on in the presentation
Slide 4: The future of plastics. Patented.
The future of plastics. Patented. Innovative additives to modify polymers for new challenges Light weighting and Renewable energy Waste and recycling Plastics for the future miniaturization Driven by global megatrends
Slide 5: Sharpened commercial strategy
Sharpened commercial strategy Light Weighting High Temperature - Develop strong position in PET foam additives through R&D - Drive composites and coatings that endure higher temperatures Aesthetics Recycling - Deliver unique solutions for recycled, biobased and virgin plastics - Leverage development
Slide 6: Extremely heat-resistant composites
Extremely heat-resistant composites Composites containing Nezam’s additives (>400 C)
Slide 7: Recycling predicted to grow substantially
Recycling predicted to grow substantially • Portfolio of tailored additives to suit a broad range of applications • Improves the business cases for our customers, key to secure business • Enable customers to use recycled plastics in more advanced applications, or lower grade recycled materials for d
Slide 8: Industrial scale rollout with Kullaplast
Industrial scale rollout with Kullaplast • Collaboration with local Skåne company Kullaplast, leading packaging materials’ producer • Addition of Nexam’s R305 additive enables Kullaplast to introduce a significantly higher share of recycled materials (PCR) than previously • Quality and performance o
Slide 9: Clear customer value proposition
Clear customer value proposition EXPENSIVE Reduce total cost using Nexam Additive Reduced raw material cost* -30% Additional cost (Nexam Additive)* +6% Reduced cost final product* -25% CHEAP r-PET 30% Expensive Grade 80% 10% Cheap Grades 60% 10% Virgin * Indicative numbers, based on customer case
Slide 10: Scientifically validated
Scientifically validated 2000 Multiple extrusion cycles 1500 1 to simulate recycling process VISCOSITY Polymer highly degraded 4 1000 after 9 cycles! 6 9 500 0 0 PROCESSING CYCLES 1 2 3 4 5 6 7 8 9 10 9th cycle back to 4th cycle! Bernagozzi et al, Polymer Degradation and Stability, Volume 223, May
Slide 11: Global Plastic Production
Global Plastic Production 450 RECYCLED & BIO 0.1 2.4 400 1.2 0.1 0.1 1.4 0.1 1.5 1.1 0.1 32.8 35.5 30.8 31.5 350 30 300 250 FOSSIL-BASED 200 359.8 362.3 400 Mt 339.4 347.7 347.3 150 (2022) 100 50 0 2018 2019 2020 2021 2022 Source: plasticseurope.org
Slide 12: Global Plastic Production
Global Plastic Production >200 Mt Solutions and patents for Polyolefins & PET up to 50% of the global production of plastics! Source: plasticseurope.org
Slide 13: ATH Sales of Recycling in Q1
ATH Sales of Recycling in Q1 • Q1 2025 Sales 3.6 mSEK (1.3 mSEK), corresponding to 50% QoQ growth! • New major customer ramping up full scale production – Q2 outlook positive Recycling Sales 23Q1 to 25Q1 4,000,000 3,469,187 3,500,000 3,000,000 2,574,324 2,500,000 2,282,490 2,000,000 1,804,681 1,500,
Slide 14: Q1 2025 - Business Update
Q1 2025 - Business Update Financial Highlights (Q1) • Net Sales: 49.3 mSEK (53.2 mSEK); impacted by continued very low call-offs from some major customers • Gross Margin: Increased to 48% (45%) • EBITDA: 1.3 mSEK (2.2 mSEK) • Financial stability achieved, funded by self-generated cash flows; 25 mSEK
Slide 15: Q1 2025 - Financial update
Q1 2025 - Financial update 2025 2024 2024 2024 2024 2023 2023 2023 Financial comments for the quarter kSEK Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Net sales 49 281 48 640 44 092 53 626 53 219 50 461 45 834 41 623 • Net sales in Q1 amounted to MSEK 49.2 compared Operating expenses -22 347 -21 191 -18 066 -22 538 -21
Slide 16: Improved margin nine quarters in a row
Improved margin nine quarters in a row
Slide 17: Resilient business prepared for growth
Resilient business prepared for growth Revenue split per segment FY22, FY23 and FY24 100% 2.9 5.4 7.3 23.9 90% 28.9 27.6 80% 70% 3 recurring 77.8 50.4 55.1 9 recurring customers customers 60% 50% 33.4 38.7 40.9 40% 30% 20% 83.8 66.9 68.7 10% 0% FY 2022 FY 2023 FY 2024 MB Nordics MB Eastern Europe Li
Slide 18: Significant increase in Recycling activity
Significant increase in Recycling activity Customers per Segment 70 60 50 40 30 20 10 0 Light Weight High Temperature Recycling 22 Q2-23 Q1 23 Q2 -24Q1 24 Q2-25 Q1
Slide 19: Scalability
Scalability Reduced break-even (EBITDA) from ~55 to ~ 45 MSEK per quarter Beyond break-even point, top line increase contributes ~35% to bottom line Past year has shown organization’s ability to generate incremental sales and new business >90% of sales are recurring to serial production, to
Slide 20: Project pipeline overview
Project pipeline overview Same standardized, and well proven, project pipeline process also for Recycling (with 3-10X more volume) Recycling High Temp Lightweight Customer interest / early stage Evaluation stage Typically Non-disclosed >100 10 15-20 Development stage Proof-of-concept stage Scale-up/
Slide 21: Three underlying business logics
Three underlying business logics Recycling (7%): 7% 100% ”The scale-up" 90% 80% Light Weight & High 41% Temperature (34%): 70% ”The growth engine” 60% 50% 40% 30% Aesthetics (59%): 55% ”The base business” 20% 10% 0% Q1 2025 Performance MB Light weight & High Temperature Recycling
Slide 22: Three underlying business logics
Three underlying business logics Recycling (4%): • Start-up within the company, now scaling up, leveraging Nexam’s additive expertise and with solid IP portfolio (~50% of plastics) 7% • Proven product market fit and ~100% sustainable growth achievable 100% • Self-funded, peers include Waste Plastic
Slide 23: Positive turnaround - strong 2025 outlook
Positive turnaround - strong 2025 outlook Returning to growth in key segments, with increasing profitability and a broader customer base Past cost savings program enables profitable growth and balanced cash flow. Focused commercial strategy and recycling innovation driving market differentiati
Slide 24: Why invest in Nexam Chemical?
Why invest in Nexam Chemical? Strong Growth Potential Focused Commercial Strategy, in line with Key Global Trends Huge untapped potential in Recycling Enhanced Innovation Capacity and Diverse Portfolio of Patented Solutions Improving Profitability and solid Financial Position Scalable Or
Slide 25: The future of plastics. Patented.
The future of plastics. Patented.
Slide 26: Q&A
Q&A
Slide 27: Download our 2024 Annual Report
Download our 2024 Annual Report
Slide 28: Contact
Ronnie Törnqvist, Johan CEO Arvidsson, CEO NEXAMCHEMICAL NEXAM CHEMICAL CONTACT: +46 +46 706708 254974 185 439 johan.arvidsson@nexamchemical.com ronnie.tornqvist@nexamchemical.com Industrigatan Industrigatan 27,27, 234 234 www.nexamchemical.com www.nexamchemical.com 35 Lomma 35 Lomma, Sweden
Nexam Chemical Holding — Q1 2025 Earnings Presentation on 6ix