Slide 1: Preliminary Results Presentation for the year ended 31 March 2021
se oe PALI ulphur Mountain, Canada /\ accsys PRELIMINARY RESULTS PRESENTATION For the year ended 31 March 2021 Leet ui Wet = Accoya® decking at tHe Banff Gondola aT in the SEW Reesr Mountains | & SBE 2. WAREMAN NS SSS © Acesys 2021 1 JS a “ACCSYS
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 believe", “plan”, “seek”, “continue” or similar expressions identify forward-looking stat
Slide 3: Agenda
AGENDA 4 Results Overview 2. Financial Results 3S Hull Tricoya Update 4 Business Review & Outlook = /\ accsys
Slide 4: Overview: Strong FY21 Results
OVERVIEW STRONG FY21 RESULTS * Good revenue performance, despite capacity constraints * Strong profitability progression, cash generation & robust balance sheet * Continuing strong market demand, COVID-19 resilience * Strategic progress on 2025 5x growth target * Building organisation for sustainabl
Slide 5: Financial Results
FINANCIAL RESULTS Will Rudge, Finance Director © Acesys 2020 Bespoke Accoya® floating boat dock, British Columbia, Canada Michael Green Architecture
Slide 6: Financial Highlights
FINANCIAL HIGHLIGHTS Change € million yal FY20 6 Accoya® sales volume (m°) 60,466 57,842 4.5% Underlying Group Revenue 99.8 90.9 10% Underlying Gross Profit 33.1 27.5 20% Underlying Gross Margin 33% 30% 3% Underlying EBITDA" 10.1 7.0 44% Underlying EBIT' 44 1.4 214% Underlying profit/ (loss) before
Slide 7: Sales Mix: Global Distribution Supporting Resilience
SALES MIX GLOBAL DISTRIBUTION SUPPORTING RESILIENCE veraged regional mix to mitigate COVID-19 disruption Sales volume by end market Accoya® wood revenue (FY21 vs FY20) % change Benelux, APA, RoW, (FY21 vs FY20) UK & Ireland 19% pee 15% 27% Americas N% 7 13% (10%) 11% 22% 26% (24%) (24%) Tricoya® Res
Slide 8: EBITDA Progression
EBITDA PROGRESSION Group underlying EBITDA (Enillion) 14.0 + Accoya® profit growth: 120 13 | - Manufacturing margin +340bps to 33.4% | ca | - Higher average selling prices, : partially offset by higher costs 10.0 * Operating costs: - Increased staff and organisational capability 60 investment 8.0 +
Slide 9: Profitability Progression
PROFITABILITY PROGRESSION 5 YEAR PERFORMANCE Group EBITDA 2017-2021 € million Accoya® segment profitability 2017-2021 oe . , FY19 FY20 (15) + Group EBITDA driven by Accoya® business growth + EBITDA growth continuing over time with economies of scale, pricing, and capacity + FY21second consecutive ye
Slide 10: Strong Cashflow Generation
STRONG CASHFLOW GENERATION Net Debt € milion) ae | | | j b---- Investing ----I | * Underlying Accoya® EBITDA up 350 | activities | | 27% to €21.4m | | | | 300 | | | * Tricoya® EBITDA reflects its | | | | pre-operating position 250 \ | \ | | | | * €20.7m Capex investment 200 207 \ includes: I H I | -
Slide 11: Balance Sheet: Robust Financial Position
BALANCE SHEET ROBUST FINANCIAL POSITION Net debt * €13.0m reduction to €12.2m NET DEBT/EBITDA' 1.2x Cash * Cash balance of €47.6m at 31 March 2021 CASH2 * €13.9m undrawn bank facilities €47.6m Capital raise May 2021 MAY 21 CAPITAL RAISES Placing and Open Offer €35m net raised, funding: €35m - Accoya
Slide 12: Tricoya Hull Update
TRICOYA® HULL UPDATE Rob Harris, Chief Executive /\ accsys
Slide 13: Tricoya FY21 & Project Status
TRICOYA® tricoya FY21 & PROJECT STATUS FY21 Hull construction progressed to final stages * World-first Tricoya® plant being constructed at Hull, UK * FY21 progress: good progress in Q2 after initial Covid-19 impact; final floors of acetylation tower lifted into place in October 2020 Ongoing recent c
Slide 14: Tricoya Overview
TRICOYA® OVERVIEW World-first Tricoya® plant Tricoya® consortium established in 2017 * €80m plant costs incurred to date * 3year ramp up to full capacity; break-even at ~40% capacity High value product, Strong market opportunity + Market seeding: strong demand, limited production + Customer offtake
Slide 15: Business Review & Outlook
California, USA ACCSYS BUSINESS REVIEW & OUTLOOK Rob Harris, Chief Executive © Acesys 2020 15
Slide 16: Overview: Changing Wood to Change the World
OVERVIEW CHANGING WOOD TO CHANGE THE WORLD 1 World-leading product & technology High performance, sustainable wood products, with world leading technology ap ] Significant market opportunity mm Currently ~2% penetration of our 2.6 million m? global achievable market Up to 1 million m? achievable mar
Slide 17: Extensive know-how and over 330 patents
• • • • • • • • We have extensive know-how and over 330 patents covering 27 distinct inventions in over 40 countries.
Slide 18: Our Market: Significant Global Growth Opportunity
OUR MARKET SIGNIFICANT GLOBAL GROWTH OPPORTUNITY A Large Global Market Significant Demand Achievable Market wil The global wood production market. produces over 800 million m$ annually across lumber and engineered wood products!. Our products also compete within adjacent construction materials marke
Slide 19: Production capacity growth
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 Tricoya® 4th Reactor USA Malaysia Arnhem Accoya® Tricoya®
Slide 20: Underlying Accoya EBITDA and Manufacturing Margin
• • • • • • 1. Underlying Accoya EBITDA FY21 vs FY20 2. Accoya Manufacturing Margin FY21 vs FY20
Slide 21: Accoya Strategic Development
accoya 0) ACCOYA® STRATEGIC DEVELOPMENT Adding 33% capacity at Arnhem Good progress in fourth reactor addition; on track to be operational Q4 FY22 * Ground works commenced in February, detailed engineering complete, reactor delivered in May + Fourth reactor will increase production capacity by 33% t
Slide 22: EUR 31m equity raised to accelerate US market opportunity
• • • • • • • • • • • • • • • EUR 31m Equity raised in May 2021 to accelerate US market opportunity
Slide 23: Building for Sustainable Growth
BUILDING FOR SUSTAINABLE GROWTH DEVELOPING ORGANISATIONAL CAPABILITY & APPROACH TO ESG © Acesys 2021 Managing growth & Operational effectiveness + Operational readiness for growth, 11% employee growth year on year + Streamlining and improving internal processes + R&D centre of excellence Expanded le
Slide 24: Summary
SUMMARY FY 21 results Outlook * Good sales and revenue, despite COVID-19 + Revenue growth driven by pricing and R4 coming and capacity constraints online in Q4 + Strong profitability progression * Supporting growth with increased organisational + Robust balance sheet with strong Accoya® cxpaialls) c
Slide 25: Appendix
APPENDIX Changing wood to change the world
Slide 26: Sales Volume
SALES VOLUME COVID-19 RESILIENCE, STRONG RECOVERY FROM Q2 Demand continues to exceed me production capacity 40,000 as00 =15% * QI - Decrease of 138% vs H1 FY20 30,000 * USA performed strongly in H2 up 25,000 48% moe + All 3reactors run at capacity after '5,000 early May maintenance stop 10,000 5,000
Slide 27: Segmental Summary
SEGMENTAL SUMMARY FY21 ém Accoya® Tricoya® Componnte Group Underlying revenue 97.6 2.2 0.0 99.8 Underlying Gross profit 329 0.2 0.0 33.1 EBITDA 21.6 (2.8) (8.4) 10.4 Underlying EBITDA 214 (2.9) (8.4) 10.1 FY20 ém Accoya® Tricoya® Corpornte Group Underlying revenue 90.0 09 0.0 90.9 Underlying Gross p
Slide 28: 1. Full year 2021 2. As at 18 June 2021
• • • • • 1. Full year 2021 2. As at 18 June 2021
Slide 29: FY21 vs FY20 FY21 vs FY20 FY21 vs FY20
FY21 vs FY20 FY21 vs FY20 FY21 vs FY20
Slide 30: 4.7m m 3 4.2m
4.7m 4.2m 3.7m m3 2.7m 3.1m 2.3m 0.3m 0.3m 0.3m 1.2m 1.4m 1.5m 2020 2025P 2030P Windows Doors Decking Siding Source: Principia Consulting report dated 1 February 2021
Slide 31: Tricoya Consortium Structure
TRICOYA CONSORTIUM STRUCTURE The Tricoya® Consortium is based on two entities: pom | * Tricoya Technologies Limited ("TTL") will continue to benefit “nsx. 85% 765% from all Tricoya® related intellectual property | —s | 1 f * Tricoya UK Limited ("TUK") incorporated as TTL's subsidiary and will own an