Slide 1: Preliminary Results Presentation for the year ended 31 March 2020
\ _ PRELIMINARY RESULTS PRESENTATION For the year ended 31 March 2020 Architect: Kengo Kuma
Slide 2: Disclaimer
DISCLAIMER The purpose of this document is to provide general information about Accsys Technologies PLC (“Accsys”) and its operations solely to the addressee. By accepting this document the recipient agreés to keep confidential at all times information contained in it or made available in connection
Slide 3: Overview of Accsys
OVERVIEW OF ACCSYS Changing wood to change the world Where we operate We use our unique patented technology to create consistently high performing, sustainable wood products that enable new opportunities for the built environment. Our process is extremely efficient and locks carbon into long-life pr
Slide 4: Accsys in Action: Honolulu, Hawaii
ACCSYS IN ACTION Honolulu, Hawaii YS The year-round sun and sea air made Accoya® wood the perfect choice for cladding this private residence on Kahala Beach. — /\ accsys
Slide 5: vs FY19 vs FY19 vs FY19
• • • vs FY19 • • vs FY19 • • vs FY19
Slide 6: COVID-19 Update
COVID-19 UPDATE * Board, senior management team and other senior staff have temporarily reduced salaries by 20% * Making use of UK and Netherlands job retention schemes * Reduced other third party costs, frozen non-essential hires and increased focus on managing working capital * 43% reduction in sa
Slide 7: Financial Results
FINANCIAL RESULTS Year ended 31 March 2020
Slide 8: Financial Highlights
FINANCIAL HIGHLIGHTS FY2020 FY2019 Change % € million Sales volume (m3) 57,842 49,716 16% Underlying* Group Revenue 90.9 75.2 21% Underlying* Gross Profit 27.5 18.6 48% Gross Margin 30% 25% Underlying* EBITDA 7.0 0.9 Underlying* EBIT 1.4 (3.1) Year end end cash balance 37.2 8.9 Year end net (debt) b
Slide 9: Segmental Summary
SEGMENTAL SUMMARY 2020 Accoya® Tricoya® R&D and Group €m Corporate Underlying Revenue 90.0 0.9 0.0 90.9 Underlying Gross profit 271 0.4 0.0 27.5 EBITDA 20.1 (3.0) (71) 10.0 Underlying EBITDA 16.9 (2.8) (7.1) 7.0 Underlying EBIT 12.6 (3.2) (8.0) 14 2019 Accoya® Tricoya® R&D and Group €m Corporate Und
Slide 10: Revenue by region
• • • € million 25.3 2017 2018 2019 18.0 15.3 2020 14.0 10.2 UK & Ireland Tricoya® Cerdia Americas Benelux, APA, RoW
Slide 11: Profitability
PROFITABILITY Accoya® manufacturing margin improved due to sales volumes up 16% reflecting full year benefit of third reactor and higher sales prices . * . Accoya® segment underlying revenue Accoya® segment underlying EBITDA* Accoya ® segment underlying revenue* Manufacturing margin (%) Accoya ® seg
Slide 12: Movement in Net Debt
MOVEMENT IN NET DEBT Net Debt (€ million) 70.90 24 sao 16.9) 7 28 sa0 200 oo — Net Debt Accoya® —Tricoya® = R&Dand © Working —_—Interest at April Underlying Underlying Corporate Capital paid 2019 «EBITDA —EBITDA Costs nm 22.0 (43.0) (9.2) 17 AcesysPLC Tricoya® Other —Net Debt at Equity Equity Moveme
Slide 13: Accsys in Action: Madrid, Spain
ACCSYS IN ACTION Madrid, Spaii Accoya® wood has b d extensively both the exterior and ——— interior of the NEN LSS -atal| building for its SS ’ durability and —— —~—, sustainability. - Architect: ADOM-STUDIO y /\ accsys
Slide 14: Strategic Update & Growth Initiatives
STRATEGIC UPDATE & GROWTH INITIATIVES — Arnhem plant expansion — Hull plant progress -— Developing our marketing strategy - Environmental, Social and Governance Outlook © Acesys 2020
Slide 15: Arnhem Plant Expansion
ARNHEM PLANT EXPANSION * Capex investment of c-€26m: - Progressing expansion with Reactor 4 + new chemical storage: c.€22m - Planning wood stacker and automated handling equipment: c.€4m + Adopting lessons learnt from previous projects + Expansion project progressing well within previous timelines:
Slide 16: Tricoya Hull Plant Progress
TRICOYA® HULL PLANT PROGRESS * Construction work substantially progressed and project team upskilled + Work accelerated in later part of FY20 following resolution of previously reported issues + Some elements of work on site stopped from March 2020 due to COVID-19, however all work has now safely re
Slide 17: Developing Our Marketing Strategy
DEVELOPING OUR MARKETING STRATEGY Targeted focus: ® 57,842m3 2.6+ million m? + Developing priority markets & core applications ( Accoya® 90% of _ total potential market * Accessing latent (substitutional) demand in the building materials sold in estimation for Accoya® market | / FY 2020 and Tricoya®
Slide 18: ESG
ESG Q + Accsys is ‘changing wood to change the world’ by giving the world a ~aall choice to build sustainably en * Commenced review of our ESG strategy, to build on sustainability of A Endlessh products renewable + Initial findings will be published in Annual Report, setting out the issues most impo
Slide 19: Capacity growth outlook
• 240,000 m³ • 200,000 m³ • 160,000 m³ • 120,000 m³ – 80,000 m³ – • 40,000 m³ – – 0 m³ H2 2018 H2 2019 Hull * 4th USA Malaysia – Tricoya® Reactor Accoya® Tricoya® Arnhem
Slide 20: Accsys in Action: Winchester, UK
ACCSYS IN ACTION Winchester, UK Accsys provided funding and wood to support this charity- led project to create a cycling centre and café for the local community. Architect: architecturePLB IN ACCSYS , © Acesys 2020
Slide 21: Appendix
APPENDIX Changing wood to change the world
Slide 22: Our Products
OUR PRODUCTS “ne: accoyaQ) Bas + Our solid timber product, acetylated at our Arnhem plant: - Ahigh performance, sustainable alternative to tropical hardwoods, treated softwoods, PVC & aluminium + Locks away carbon, while generations of new trees can grow in the extended lifetime of an Accoya® produc
Slide 23: Our Markets
e Accoya® sold in FY 2020 OUR MARKETS Ay see e * Sustainability and ecological responsibility are growing trends across all industries and markets * Our products are more sustainable and better performing than man-made, intensely resource depleting and heavily carbon- ~2% of polluting alternatives a
Slide 24: Investment Proposition
INVESTMENT PROPOSITION Substantial market opportunity Scalable growth Potential sales for Accoya® and Tricoya® estimated to Our manufacturing process and modular industrial design is be in excess of 2.6 million cubic metres per annum. based upon confidential know-how and protected IP which Accoya® s
Slide 25: International Expansion Opportunities
INTERNATIONAL EXPANSION OPPORTUNITIES United States + North America identified as largest Accoya® market opportunity + Progressing discussions with Eastman Chemicals concerning a potential joint venture Accoya® production facility + Preliminary site-specific engineering and economic evaluation work
Slide 26: Tricoya Consortium Structure
TRICOYA CONSORTIUM STRUCTURE The Tricoya® Consortium is based on two entities: Loan notes notes * Tricoya Technologies Limited (“TTL’) will continue to benefit MEDITE from all Tricoya® related intellectual property Eau opti option * Tricoya Ventures UK Limited ("“TVUK") incorporated as TTL's 0. m4 8
Slide 27: Accsys in Action: Cornwall, UK
ACCSYS IN ACTION Cornwall, UK These remarkable working and social spaces are called Unique Domes, created ; by L&R Furniture ym Joinery Ltd with Tricoya® panels and Accoya® frames. > © Acesys 2020