Slide 1: Essentra plc Full Year Results 2024
Essentra plc Full Year Results 2024 19 March 2025
Slide 2: Welcome and Overview
Welcome and Overview L£ Scott Fawcett CEO FE \ESSENTRA ESSENTRA 2
Slide 3: Agenda
Agenda 1 2024 highlights 2 Financial performance 3 Regional update 4 Strategic update 5 Outlook 6 Q&A ye E JESSENTRA 3
Slide 4: 2024 highlights
• • • • • • • • • • • 1. Excludes the impacts of acquisitions, and foreign exchange 2. On a continuing operations basis, before amortisation of acquired intangible assets and adjusting items 3. Excluding lease liabilities 4
Slide 5: Financial performance
Financial performance Rowan Baker CFO FE \ESSENTRA jESSENTRA 5
Slide 6: Initial reflections
Initial reflections First impressions Well-positioned for success Focus areas * Experienced team * Resilient business model * Navigated well through tough market conditions * Robust balance sheet * Flexibility and capacity within regional footprint * Significant opportunity to realise benefits of op
Slide 7: Financial summary
1. On a continuing operations basis, before amortisation of acquired intangible assets and adjusting items 2. Presented excluding lease liabilities. Net debt to adjusted EBITDA including lease liabilities was 1.6x (2023: 1.0x) 3. ROIC adjusted for the acquisition of BMP TAPPI in October 2023 7
Slide 8: Earnings and EPS
• • • 1. Adjusted to exclude intangible amortisation of £11.5m and an adjusting items pre-tax charge of £14.0m along with associated tax impact 2. Adjusted basic EPS has been amended to remove the effect of material movements in the Company's recognition/(derecognition) of deferred tax assets on tax
Slide 9: Revenue performance
• • • • • 1. Like-for-like excluding the impacts of foreign exchange and the acquisition of BMP TAPPI, completed in October 2023 9
Slide 10: Operating profit and margin
• • • 1. On a continuing operations basis, before amortisation of acquired intangible assets and adjusting items 10
Slide 11: Adjusting items
• • • 1. Defined benefit pension scheme charges which no longer pertain to the continuing operations of the Group 2. Costs in relation to major restructuring activities to “right size” the continuing operations of the business following business disposals 3. Includes a credit of £1.8m (2023: £3.7m e
Slide 12: Cash flow
• • • • 1. Presented excluding lease liabilities 2. Adjusted to exclude amortisation of acquired intangible assets and adjusting items 3. Non-cash items being depreciation and amortisation £11.6m, right-of-use-assets £6.3m and share option expense £1.1m 4. Principal lease payments, movement in loan
Slide 13: Net debt and covenants
• • • • • • • 1. Excluding IFRS-16, in line with banking covenants 13
Slide 14: Capital allocation policy unchanged
Capital allocation policy unchanged Organic * Capital investment remains core to strategic growth + Capex to be maintained between 4-5% of sales * Sustainable new product development and propositions * Digitalising the customer experience Acquisitions iy * Strong pipeline of potential acquisitions +
Slide 15: Regional update
Regional update Scott Fawcett CEO FE \ESSENTRA ESSENTRA 15
Slide 16: Our global footprint provides optionality
Our global footprint provides optionality * Essentra’s global network extends to 28 countries worldwide and includes c.3,000 employees + We continue to assess our footprint and optimise our operations, including responding to tariff uncertainty * Eight acquisitions over the past ten years, expanding
Slide 17: EMEA results
• • • • • • 1. Excluding the impacts of foreign exchange and the acquisition of BMP TAPPI, completed in October 2023 17
Slide 18: Americas results
• • • • Numbers on a reported basis • • 1. Excluding the impacts of foreign exchange 18
Slide 19: Asia Pacific results
• • • • Numbers on a reported basis • 1. Excluding the impacts of foreign exchange 19
Slide 20: Strategic update
Strategic update ye E JESSENTRA 20
Slide 21: Driving growth through market focus and targeted strategic investment
Driving growth through market focus and targeted strategic investment Breadth and depth of product expertise across low-cost components: Our strong balance sheet enables disciplined investment in future growth through: PProtection New Product Introductions C Electronics hardware Sustenable products
Slide 22: Multiple product expertise and a broad range of customer categories
Multiple product expertise and a broad range of customer categories Typical product HIGH VOLUME TARGET SECTORS LOW VOLUME range to unlock target category customer re . ~ 3 7 9 222 =a eel lO lar] |} ea] aT] oO Le = Aftercustomer = = = is unlocked, : = wecan cross-sell = =, our full range Equipment ‘O
Slide 23: Volume performance
£50,000,000 60 • £40,000,000 58 £30,000,000 56 • £20,000,000 54 £10,000,000 52 • £0 50 (£10,000,000) 48 (£20,000,000) 46 1. Internal metric. Volume defined as same customers, buying the same products. Excluding price, new customers, and new product sales. 23
Slide 24: Customer survey results
1. Data taken from 2024 Customer Survey: Q14. What is the main reason why you would be likely to recommend Essentra Components 24
Slide 25: Investment in digital enabling further opportunities
Investment in digital enabling further opportunities Improving our customer experience, 26 websites and 17 languages * Commenced projects on two new digital platforms with roll out expected in 2025 * Replacing old technologies and integration with ERP Putting our customer interactions first * ‘Custo
Slide 26: Product expertise across diverse industries
Product expertise across diverse industries We uniquely bring together a wide range of product capabilities, which enables us to serve a wide range of end-customer markets Access hardware continues to grow * Greater exposure to faster growing markets including energy transformation and digital infra
Slide 27: Sustainability focus is enhancing our proposition
Sustainability focus is enhancing our proposition Sustainability criteria driving business wins across all three regions 2024 ESG Ratings including customers from specialist vehicles and general industrial end-markets * CDP 2024: * A- Climate Change * B Water Security * B- Forests a + MSCI: AA MN *
Slide 28: An active pipeline of value-enhancing M&A
An active pipeline of value-enhancing M&A ° We continue to apply a disciplined approach to deal >100 on radar rationale * Our focus remains on bolt-on acquisitions with an EMEA and Americas focus * Targeting new product capabilities including existing >50 relationships suppliers of sourced products,
Slide 29: M&A case studies
M&A case studies 5m Wixroud Wixroyd Acquired in December 2022 AN ESSENTRA COMPANY Deal rationale: Targeting new product adjacencies and capabilities in machine and automation European growth through cross-selling to existing Essentra customers Strong profit margins Integration: Acceleration of new b
Slide 30: Unchanged c.18% adjusted operating margin target
Unchanged c.18% adjusted operating margin target Reaffirming confidence in our business model Pricing discipline offsetting inflation c.5% organic; c.10% total CAGR Enhanced operating | growth leverage and scale Variable || || Market through focus on comp . \_ share : Efficiencies Investment Price v
Slide 31: Outlook
Outlook ye E JESSENTRA 31
Slide 32: 2025 outlook
2025 outlook We remain focused on market share growth, delivering on the elements that remain within our control * Supported by our unique manufacturing and distribution business model * Capacity for growth and flexibility to take advantage of increasingly complex global trade dynamics * Driving ope
Slide 33: Q&A
Q&A ye E JESSENTRA 33
Slide 34: Essentra plc Full Year Results 2024
Essentra plc Full Year Results 2024 19 March 2025
Slide 35: Appendices
Appendices ye E JESSENTRA 35
Slide 36: ESG Framework
ESG Framework Plan Driving resource and energy efficiency, reducing emissions and embracing renewables Culture Asafe, supportive work environment that champions equality and celebrates diversity m © our Communities Communities Working with suppliers to ensure ethical practices and contribute to equi
Slide 37: Income Statement - Reported basis
Income Statement -— Reported basis Adjusted operating profit 40.1 43.2 Intangible amortisation of acquired assets (11.5) (11.3) Adjusting items (14.0) (21.0) Reported operating profit 14.6 10.9 Net finance charge (8.9) (2.5) Profit before tax 5.7 8.4 Taxation credit/ (expense) 5.9 (2.6) Net income 1
Slide 38: Net debt reconciliation, excluding lease liabilities
Net debt reconciliation, excluding lease liabilities As of 1 January 2024: net debt 31.6 Free cash flow (22.5) Ordinary dividends 10.5 Share buyback 49 Acquisitions less cash acquired 4.1 Adjusting items 17.7 Cash flow from discontinued businesses including 14.8 disposal costs FX including hedging d
Slide 39: Disclaimer
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