Slide 1: Preliminary Results Presentation
Supplier: © Gamiz PRELIMINARY RESULTS PRESENTATION For the year ended 31 March 2022 Accoya® windows, doors and cladding in Madrid, Spain © Accsys 2022 1
Slide 2: Disclaimer
DISCLAIMER NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION No representation or warranty, express or implied, is made or given by or on behalf of Ac
Slide 3: Agenda
AGENDA Results Overview Financial Results Business Review & Outlook © Accsys 2022 3
Slide 4: Overview: FY22 Results
OVERVIEW FY22 RESULTS • Good revenue growth, despite capacity SALES VOLUME1 constraints 59,649m3 -1% • Pricing power, successfully managing inflationary REVENUE2 environment €120.9m +21% • Continuing strong market demand GROSS PROFIT • Substantial progress on strategic projects, with €36m +9% ongoin
Slide 5: Financial Results
Supplier: © Boogaerdt Hout FINANCIAL RESULTS Will Rudge, Finance Director Accoya cladding at Hotel Rotterdam Airport – The Netherlands © Accsys 2020 2022 5
Slide 6: Financial Highlights
FINANCIAL HIGHLIGHTS Change FY22 FY21 € million % Accoya® sales volume (m3) 59,649 60,466 (1%) Group Revenue 120.9 99.8 21% Gross Profit 36.0 33.1 9% Gross Margin 30% 33% (3%) Underlying EBITDA1 10.4 10.1 3% Underlying EBIT1 4.2 4.4 (5%) Underlying profit before tax 1.3 1.1 18% Group operating cashf
Slide 7: Sales Mix
SALES MIX PIVOTING SALES MIX TO GROWTH MARKETS Balancing customer demand and capacity constraints Sales volume by end market Accoya® wood revenue (FY22 vs FY21 ) ROW 69% % change (↑ 2%) (FY22 vs FY21) UK & Ireland Americas (-) (↑5%) 44% (↓3%) (↓4%) Rest of Europe Tricoya® 6% 14% Numbers in brackets
Slide 8: EBITDA Progression
EBITDA PROGRESSION Gross profit increased 9% vs PY - Increased Accoya® sales prices more than offset input cost price Group underlying EBITDA pressures (€ million) - 11% increase in Manufacturing profit per m3 to €595/m3 - Net acetyls increased 39% vs PY, wood moderately higher Operating costs: - In
Slide 9: Profitability Progression
PROFITABILITY PROGRESSION 5 YEAR PERFORMANCE • 11% increase in manufacturing Accoya ® segment profitability 2018-2022 profit per m3 of Accoya® sold vs Manufacturing Manufacturing FY21 profit/m3 (€) margin (%) • 4th Accoya® reactor expected by € 700 40% Q2 FY23 33% 35% € 600 30% 30% • Net acetyls cos
Slide 10: Net Debt Bridge
NET DEBT BRIDGE Net Debt I- Adjusted Net Debt -I • Underlying Accoya® EBITDA I------------ Operating activities -----------I Investing I------ Financing activities ------I (€ million) activities in-line with prior year • Tricoya® EBITDA reflects its pre-operating position • Operational working capit
Slide 11: Balance Sheet
BALANCE SHEET INVESTMENT INTO KEY EXPANSION PROJECTS Cash at 31 March 2022 - €42.1m NET DEBT1 ADJUSTED • May 2021 Capital raise - €34.6m net proceeds to fund: NET DEBT1 o Accoya® North America JV to construct USA plant o Group growth and ongoing development €27.2m €55.0m • Adjusted Cash - €4.3m - ex
Slide 12: Financing
FINANCING Accoya USA JV Financing Group Debt Refinance • Total Project cost of c. $136m- Funded via: • €45m 3 year Loan utilised to repay existing 5 facilities. o $70m 8 year loan - First Horizon Bank, Tennessee, USA • €25m RCF o $66m equity contributions - Accsys – $39.6m (60%), and o ~ €20m utilis
Slide 13: Accsys Business Review & Outlook
Supplier: © ITI Timspec ACCSYS BUSINESS REVIEW & OUTLOOK Rob Harris, Chief Executive Accoya & Tricoya decking & siding – Christchurch, New Zealand © Accsys 2022 13
Slide 14: Overview: Changing Wood to Change the World
OVERVIEW CHANGING WOOD TO CHANGE THE WORLD World-leading product & technology High performance, sustainable wood products, with world leading technology Significant market opportunity Currently ~2% penetration of our 2.6 million m3 global achievable market Up to 1 million m3 achievable market opport
Slide 15: Our Products
OUR PRODUCTS CHANGING WOOD Our unique Creating superior Our technology performance wood Products World leading Durable Outperforming the best tropical Our world-leading process and hardwoods. technology is unique. 50 year warranty above ground and 25 year under ground or in water. • Solid timber pro
Slide 16: Accoya: FY22 Performance
ACCOYA® FY22 PERFORMANCE • Good full year revenue growth, driven by pricing • Isolated plant performance reliability issues addressed in Q4 • Continuing focus on operational production process improvement • Inventory re-build during the year ahead of R4 • ‘Accoya® Color’ very good sales in first yea
Slide 17: Accoya: Strong Growth in North America
ACCOYA® FY22 PERFORMANCE - STRONG GROWTH IN NORTH AMERICA Increased Accoya supply to North America in FY22 • Volume ramp-up ahead of new Accoya USA plant • North America a key growth market: Up to 1m1 potential achievable market for Accoya Strong market adoption and response - 44% volume growth yoy
Slide 18: Accoya: Strategic Development
ACCOYA® STRATEGIC DEVELOPMENT Arnhem (NL): 33% capacity expansion (R4) • Plant construction complete and commissioning has been progressing • June commissioning identified remedial work to repair defective installed equipment • Extended operational target date into Q2 by at least c. 8 weeks • Estima
Slide 19: Tricoya: FY22 & Project Status
TRICOYA® FY22 & PROJECT STATUS Hull construction largely complete & commissioning in progress: • Took over project management in H2 after lead contractor termination in H1. H2 Good progress with plant physical construction • Managing continuing challenges in labour productivity, supply chain, • Now
Slide 20: Building Organisational Capability
BUILDING ORGANISATIONAL CAPABILITY ONGOING GROUP DEVELOPMENT & INVESTMENT Organisational development Improving capital project delivery • Building organisation for growth • Review of Group engineering capabilities o Headcount growth from 199 to 244 people • Improved site-based accountability at Arnh
Slide 21: ESG
People and ESG wellbeing Innovation Health and and safety technology FY 22 PROGRESS Governance Fair and ethical management conduct and advocacy Changing Overall development wood… Sustainable …to change Society the world • Roadmap review of 10 ESG material issues with focus on improving and quality a
Slide 22: Summary
SUMMARY FY 22 results Outlook • Good revenue growth, despite flat volumes • Revenue growth acceleration though H2 as Hull and R4 plant volumes ramp up, supported by price increases in • Pricing power, maintaining profitability despite cost January 2022 and June 2022 headwinds • Targeting to nearly d
Slide 23: Appendix
APPENDIX Changing wood to change the world © Accsys 2022 23
Slide 24: Segmental Summary
SEGMENTAL SUMMARY R&D and Underlying EBITDA – FY22 vs FY21 FY22 Accoya® Tricoya® Corporate Group € million €m Revenue 119.4 1.5 0.0 120.9 Gross Profit 35.9 0.1 0.0 36.0 EBITDA 21.4 (3.2) (7.7) 10.5 Underlying EBITDA 21.3 (3.2) (7.7) 10.4 R&D and FY21 Accoya® Tricoya® Group €m Corporate Revenue 97.6
Slide 25: Profitability Progression
PROFITABILITY PROGRESSION 5 YEAR PERFORMANCE Group Underlying EBITDA 2018-2022 € million • Group Underlying EBITDA driven by Accoya® business growth • EBITDA growth has grown with economies of scale, pricing, and capacity • Further benefits expected from expanded Accoya® plant and post Hull start-up