Azelis Group N.v. · EURONEXT:AZE
Azelis — H1 2024 Earnings Presentation
20 slides from Azelis's earnings presentation, Aug 1, 2024
Slide 1: H1 2024 Update
H1 2024 Update August 1, 2024 1
Slide 2: Agenda
Agenda Key messages at a glance Business update Financial performance Outlook Thijs Bakker Q&A Group CFO Anna Bertona Group CEO 2
Slide 3: Disclaimer
Disclaimer This document may contain statement relevant to Azelis Group NV (the “Company”) and/or its affiliated companies (collectively “Azelis” or the “Azelis Group”) which are not historical facts and are hereby identified as “forward-looking statements”. Such forward looking statements, include,
Slide 4: Key messages at a glance
Key messages at a glance Strong margins through the cycle 1. Maintain strong conversion margin (H1 2024: 48.2%) by balancing preparations for growth recovery and prudent cost management 2. Gradual recovery with sustained volume improvement tempered by ongoing price pressures and continued volatility
Slide 5: Key developments & business update
Key developments & business update 5
Slide 6: H1 2024 Highlights
H1 2024 Highlights Start of organic revenue stabilization o €2.1bn Group revenue, +0.2% y/y (+1.5% in ccy) supported by M&A contribution o Q2 organic revenue broadly stable, following declines of 8.1% in Q1 and 5.9% in 2023 o €526m Gross Profit, driving 39 bp gross margin uplift. €254m Adjusted EBIT
Slide 7: Growth Drivers
Growth Drivers Organic M&A End-markets: Volume recovery, continuing price discovery Six acquisitions YTD, representing combined annual o Strong H&IC performance revenue of over €70m o F&N positive volume offset by price pressure Four acquisitions completed across our three regions o First green shoo
Slide 8: Innovation in action
Innovation in action Personal Care Food & Nutrition Sustainable Exfoliating Innovative, high whey Coconut Jelly Cube protein coffee beverage Award-winning product made with First annual Azelis Innovation Award renewable raw materials Gold prize winner o Personal Care team formulated a o Food & Nutri
Slide 9: Our commitment to sustainability
Our commitment to sustainability Sustainable Minimized Responsible Governance formulations footprint employer Our Action 2025 commitment 80% 50% 30% Zero of our revenue from reduction in Scope 1 of management material breaches TfS-assessed & 2 carbon intensity positions held by of laws and principal
Slide 10: Financial performance
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Slide 11: Headline P&L H1 2024
Headline P&L H1 2024 Azelis Group Highlights Reported Reported Constant Q2 2024 Q2 2023 H1 2024 H1 2023 (EUR m) Change Change Currency Life Sciences 679.6 647.9 4.9% 1,348.4 1,316.9 2.4% 3.8% Industrial Chemicals 415.0 400.5 3.6% 797.3 824.4 -3.3% -2.3% Group Revenue 1,094.6 1,048.4 4.4% 2,145.7 2,1
Slide 12: Headline growth H1 2024
Headline growth H1 2024 Azelis Performance F/X M&A Growth Organic Total H1 2024 H1 2023 (EUR m) Translation Contribution Growth Growth EMEA 917.2 944.4 -2.1% 4.2% -5.0% -2.9% Americas 786.7 734.9 1.2% 9.8% -4.0% 7.1% Asia Pacific 441.8 461.9 -3.5% 2.8% -3.6% -4.4% Group Revenue 2,145.7 2,141.2 -1.2%
Slide 13: Regional financial update
Regional financial update EMEA Americas Asia Pacific Adjusted 14.8% 14.0% Adjusted 13.6% 12.5% Adjusted 8.9% 10.1% EBITA EBITA EBITA margin -2.9% margin margin € 944 +7.1% € 917 -4.4% € 787 € 735 € 462 € 442 Revenue Revenue Revenue (EUR m) (EUR m) (EUR m) Conversion 55,5% 53,2% Conversion 56,7% 50,9
Slide 14: Net profit and net profit drivers
Net profit Azelis Group Net profit drivers H1 2024 H1 2023 (EUR m) Operating profit 214.7 225.0 Lower operating profit Net financial expense -72.4 -71.2 o Limited topline growth, higher Financial income 15.3 3.4 operating costs Financial expense -87.7 -74.6 Increase in financial expense Interest exp
Slide 15: Cashflow bridge
Cashflow bridge EUR million Group cash flow 275 CF Drivers 254 H1 2024 H1 2023 (EUR m) 215 Operating profit 214.7 225.0 Amortization 35.3 32.6 Adjustments 4.0 5.8 FCF conversion ratio 136 53.3% Adjusted EBITA 254.0 263.4 Depreciation 20.8 15.8 Adjusted EBITDA 274.8 279.2 Change in working capital -1
Slide 16: Working capital
Working capital Working capital Evolution of NWC* Receivables Inventory Payables EUR million NWC/ 11.1% 15.3% 13.8% 13.4% 15.4% 15.4% Revenue* 1.100 900 650 607 700 628 563 467 500 300 268 584 376 443 445 524 100 218 -100 -235 -369 -300 -463 -434 -488 -525 -500 2020 2021 2022 2023 2023 Jun 2024 Jun
Slide 17: Net debt
Net debt 2.5x 2.7x +48 +19 +3 +122 +53 +5 -153 +22 1.394 1.275 (2) Net Debt 31 Operational CF Income tax Net Interest Capex M&A (1) Leases Purchase of Others Net Debt 30 Dec 2023 paid treasury shares Jun 2024 x Leverage ratio at period end (1) Includes deferred payments for acquisitions in prior yea
Slide 18: Outlook
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Slide 19: Outlook: back to organic growth in 2024
Outlook: back to organic growth in 2024 Near-term o Green shoots are taking root; end-market deterioration is easing. o Return to organic growth expected in H2 2024, assuming no significant market disruptions o Continue balancing preparations for growth recovery and prudent cost management to protec
Slide 20: H1 2024 Results Q&A
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