Morgan Advanced Materials Plc · LSE:MGAM
Morgan Advanced Materials — H1 2025 Earnings Presentation
28 slides from Morgan Advanced Materials's earnings presentation, Aug 7, 2025
Slide 1: Morgan Advanced Materials plc 2025 Interim Results
Morgan Advanced Materials plc 2025 Interim Results Damien Caby, Chief Executive Officer Richard Armitage, Chief Financial Officer 7 August 2025
Slide 2: Disclaimer
© Morgan Advanced Materials 2 Disclaimer This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of the Group. Although the Group believes that the expectations reflected in such forward-looking statements are reasonable, these s
Slide 3: Agenda
© Morgan Advanced Materials 3 Agenda 1. INTRODUCTION & MARKET CONTEXT 2. FINANCIAL PERFORMANCE Damien Caby, CEO 3. OPERATIONAL REVIEW & OPPORTUNITIES 4. CONCLUDING REMARKS AND Q&A Richard Armitage, CFO Interim Results 2025
Slide 4: Revenue in-line with expectations in difficult markets; good progress across operational priorities
© Morgan Advanced Materials 4 Interim Results 2025 Revenue in-line with expectations in difficult markets; good progress across operational priorities 1 Challenging conditions as expected; signs of stabilisation 2 Revenue down 5.8% (OCC), in-line with continued soft markets 3 Adjusted operating prof
Slide 5: End markets challenging; signs of stabilisation
© Morgan Advanced Materials 5 Interim Results 2025 End markets challenging; signs of stabilisation Clean Energy and Transportation 4.2% • Faster growing markets down 17.2% Healthcare 8.0% • Slow down and destocking in silicon carbide semicon Semiconductor 35.1% • Progressive uptick in silicon semico
Slide 6: Financial Performance
© Morgan Advanced Materials 6 Financial Performance Richard Armitage, CFO
Slide 7: Resilient performance in challenging markets
© Morgan Advanced Materials 7 Interim Results 2025 Resilient performance in challenging markets Faster Growing Markets OCC1 revenue Adj. earnings per share3 (5.8)% 10.8p 20% Semiconductors, Healthcare, Clean Energy and Clean Transportation £522.6m H1 ‘24: £572.6m H1 ‘24: 14.7p 52% Revenue Adj. opera
Slide 8: Adjusted operating profit supported by efficiency and simplification benefits
© Morgan Advanced Materials 8 Interim Results 2025 Adjusted operating profit supported by efficiency and simplification benefits • Profit impacted by a 9% decline in £71.3m OCC1 growth% (13.0)% volume reflecting weak markets, and (£4.6m) £66.7m adverse sales mix Adj. margin 12.5% £58.0m • Self-help
Slide 9: Segmental performance
© Morgan Advanced Materials 9 Interim Results 2025 Segmental performance Revenue Adjusted operating profit2 Margin OCC1 growth £m £m % H1 ‘25 H1 ‘24 % H1 ‘25 H1 ‘24 H1 ‘25 H1 ‘24 Thermal Products 195.5 221.5 (8.0)% 15.7 24.2 8.0% 10.9% Performance Carbon 154.1 178.9 (11.2)% 25.1 31.3 16.3% 17.5% Tec
Slide 10: Free cash flow to improve in H2 as Semicon investment completes
© Morgan Advanced Materials 10 Interim Results 2025 Free cash flow to improve in H2 as Semicon investment completes H1 ’25 H1 ‘24 Working capital outflow EBITDA 78.9 92.6 £(4.7)m Change in working capital (4.7) (22.0) H1 ‘24: £(22.0)m Net capital expenditure (40.5) (44.6) Net interest (9.0) (7.3) Ca
Slide 11: Specific adjusting items
© Morgan Advanced Materials 11 Interim Results 2025 Specific adjusting items H1 ‘25 H1 ‘24 Costs associated with the cyber security incident - £1.1m Business simplification programmes £10.7m £2.3m Global ERP; design, configuration, customisation and implementation £5.6m - Total charged to specific a
Slide 12: Business simplification is driving meaningful P&L benefit
© Morgan Advanced Materials 12 Interim Results 2025 Business simplification is driving meaningful P&L benefit 21 17 28 20 17 17 Annual benefit Total cost to deliver 10 £27.0m £45.0m 4 from end 2026 (vs. 2023 baseline) 10 4 4 FY23 FY24 FY25 FY26 FY27 3 Incremental adjusted £1m £8m £24m £27m £27m oper
Slide 13: Capital investment normalises from 2026
© Morgan Advanced Materials 13 Interim Results 2025 Capital investment normalises from 2026 Capital investment profile • Semiconductor investment reduced to £96m Maintenance match capacity with demand Other capacity • Flexibility to increase investment in Semiconductor £30m Semiconductor capacity, a
Slide 14: Technical Guidance for 2025
© Morgan Advanced Materials 14 Interim Results 2025 Technical Guidance for 2025 Capital expenditure c. £70m Net finance charge: Interest charges (c. £16-17m) IAS 19 pensions net interest charge (c. £0.5m) c. £18 - 20m IFRS 16 lease interest (c. £2m) Effective tax rate 26 – 28% Dividend Policy in the
Slide 15: Operational review and opportunities
© Morgan Advanced Materials 15 Operational review and opportunities Damien Caby, CEO
Slide 16: The global leader in advanced ceramics and carbon
© Morgan Advanced Materials 16 Interim Results 2025 The global leader in advanced ceramics and carbon • Carbon reduction, electrification Diversified end markets; global mega trends • Healthcare • Power electronics • Customer centric solution development Technology & application science • Applicatio
Slide 17: Opportunity to unlock significant value
© Morgan Advanced Materials 17 Interim Results 2025 Opportunity to unlock significant value Operational excellence Supply chain Growth in targeted Strategic focus on high and simplification performance high-value areas quality, high growth • Increase operational gearing • Improve procurement • Scale
Slide 18: Financial framework
© Morgan Advanced Materials 18 Interim Results 2025 Financial framework 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% + Add
Slide 19: Outlook
© Morgan Advanced Materials 19 Interim Results 2025 Outlook • We are cautious about demand in a number of our end-markets as the geopolitical and economic environment remains uncertain • Revenue guidance for the full year remains unchanged, with organic constant currency revenue expected to decline
Slide 20: Key takeaways
© Morgan Advanced Materials 20 Interim Results 2025 Key takeaways Revenue in-line despite Leaner and more efficient challenging market business backdrop Strong foundations and Well positioned to grow and significant further expand margins as markets opportunities recover
Slide 21: Appendix
© Morgan Advanced Materials 21 Appendix
Slide 22: Financial calendar
© Morgan Advanced Materials 22 Interim Results 2025 Financial calendar Event Date Trading update Early November 2025 Strategy update Early December 2025 FY 2025 results February 2026
Slide 23: Strong balance sheet and available liquidity
© Morgan Advanced Materials 23 Interim Results 2025 Strong balance sheet and available liquidity Facilities maturity profile Headroom on banking covenants 400 Private placement • Net debt to EBITDA excluding the impact 350 Bank term debt of IFRS 16: 1.7x (FY2024: 1.4x) Revolving credit facility 300
Slide 24: Foreign currency impacts
© Morgan Advanced Materials 24 Interim Results 2025 Foreign currency impacts The principal exchange rates used in the translation of the results of overseas subsidiaries were as follows: H1 2025 H1 2024 Closing Average Closing Average GBP to: rate rate rate rate USD 1.37 1.30 1.26 1.27 Euro 1.16 1.1
Slide 25: Adjusted earnings per share
© Morgan Advanced Materials 25 Interim Results 2025 Adjusted earnings per share £m H1 2025 H1 2024 Profit for the period attributable to shareholders of the Company 15.0 37.4 Profit from discontinued operations - - Profit from continuing operations 15.0 37.4 Specific adjusting items 16.3 3.4 Amortis
Slide 26: Reported statutory figures
© Morgan Advanced Materials 26 Interim Results 2025 Reported statutory figures Six m o n t h s e n d e d 3 0 J u n e 2 0 2 5 Six mo n th s en d ed 3 0 Ju n e 2 0 2 4 £m Re su lt s b e fo re Sp e cific ad ju st in g Resu lts b efo re sp ecific Sp ecific ad ju stin g sp e cific ad ju st in g To t al T
Slide 27: Good performance against our key ESG objectives
© Morgan Advanced Materials 27 Interim Results 2025 Good performance against our key ESG objectives Absolute CO2e emissions 230 211 158 171 153 +4% 77 80 1 Scope 1 and 2 CO2e up 4% 53% below 2015 baseline (2030 Goal: 50% below) 2021 2022 2023 2024 H1 24 H1 25 2030 Target 2 Overall water usage down 1
Slide 28: Contact
© Morgan Advanced Materials 28 Contact investor.relations@morganplc.com +44 (0)1753 837 000 morganadvancedmaterials.com
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