Slide 1: Accsys Preliminary Results 27 June 2023
ACCSYS PRELIMINARY RESULTS 27 JUNE 2023 For the year ended 31 March 2023 CHANGING WOOD TO CHANGE THE WORLD Pilarin Bayes Library, Barcelona Spain. Grupo Gámiz, BCQ Arquitectura Barcelona © Accsys 2023 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 Highlights Financial Review Business Review & Outlook © Accsys 2023 3
Slide 4: Highlights
HIGHLIGHTS Stephen Odell, Executive Chairman Monkey Mia decking, Perth, Australia. Accoya supplied by M&B © Accsys 2023 4
Slide 5: Highlights – Financial
HIGHLIGHTS – FINANCIAL Revenue Sales volume Gross margin Underlying EBITDA +34% +6% +4% +120% +34% growth in revenue to €162.0m. +6% growth in Accoya +4% pts improvement in gross 120% growth in underlying Driven by continuing strong product volumes at 63,344m3. margin at 34%. EBITDA1 at €22.9m. dema
Slide 6: Highlights - Strategic Growth Projects
HIGHLIGHTS - STRATEGIC GROWTH PROJECTS Arnhem Kingsport, Tennessee Tricoya UK (Hull Project) +34% 34.1% Successful completion of reactor 4, Good progress with construction of our Good progress with Board review of Hull. adding additional 33% capacity. Accoya USA JV with Eastman. Continued belief in
Slide 7: Financial Review
FINANCIAL REVIEW Steven Salo, Chief Financial Officer Villa Harmony Ibiza. Carpentry by Carpintería Gil Almansa, Accoya distributed by Grupo Gámiz © Accsys 2023 7
Slide 8: Financial Highlights, Cashflow, Financial Summary
FINANCIAL HIGHLIGHTS Change FY23 FY22 € million % Group Revenue 162.0 120.9 34% FINANCIAL SUMMARY Gross Profit 55.2 36.0 53% Underlying EBITDA1 22.9 10.4 120% Underlying Earnings per share 0.05 0.01 Non-cash exceptional item - Impairment of Tricoya Segment assets (86.0) - 3 Exceptional item - Natwes
Slide 9: Sales Mix
SALES MIX Pivoting sales mix to key markets Sales volume by end market • 6% growth in Accoya sales volumes: ROW Reactor 4 operational from September 2022 26% 10% H2 sales of 39,387m3 – a 64% increase on H1 (↑1%) 23% (↓2%) UK & Ireland • Targeted sales growth in markets ahead of capacity expansio
Slide 10: Accoya
ACCOYA FY23 PERFORMANCE FY23 Growth • Revenues up 37% to €143.5m, driven by strong product demand, higher average sales prices and implementation of Energy Price Premium Revenue €143.5m +37% • 6% growth in Accoya sales volumes at 63,344m3 Sales volumes 63,344m3 +6% • H2 sales volumes of up 64% on H1
Slide 11: Tricoya
TRICOYA FY23 PERFORMANCE FY23 Growth • Revenues from Tricoya represent 24% of total Group Revenue €21.2m +33% sales volumes Sales volumes 15,193m3 +18% • FY23 revenues up 33% to €21.2m, driven by continued strong product demand, price increases and implementation of Energy Price Premium: Off-take
Slide 12: EBITDA Progression in FY23
EBITDA PROGRESION IN FY23 Group underlying EBITDA (€ million) I------ Revenue ------I I----- Cost of Sales -----I I--------- Other operating costs ----------I 53% increase in Gross profit • Higher average Accoya sales prices have more than offset input cost price pressures • 19% increase in net acet
Slide 13: Five-Year Revenue & Profit Performance
FIVE-YEAR REVENUE & PROFIT PERFORMANCE Group revenue FY19-FY23 Group underlying EBITDA FY19-FY23 € million € million 162.0 22.9 120.9 99.8 10.1 10.4 90.9 75.2 7.0 0.9 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 • New reactor 4 in Arnhem operational from September 2022 • Group underlying EBITDA
Slide 14: Net Debt Bridge
NET DEBT BRIDGE Net Debt (€ million) I------------- Operating activities -------------I I--------- Investing activities --------I I- Financing activities -I • Underlying Accoya EBITDA up €17.2m vs prior year • Tricoya EBITDA reflects its pre- operating position • Working capital includes €9.6m incre
Slide 15: Balance Sheet
BALANCE SHEET € million FY23 FY22 Change Intangible Assets 10.5 10.8 (0.3) • Investment in JV - investment contribution into Accoya USA in H1 (€29.0m) Investment in Accoya USA JV 30.9 3.2 27.7 Tangible Assets 110.1 181.3 (71.2) • Tangible assets – decreased due to Tricoya CGU impairment (€86.0m) par
Slide 16: Reorganisation of Tricoya Consortium
REORGANISATION OF TRICOYA CONSORTIUM Ownership: • Accsys acquired full ownership of the Tricoya entities in November 2022: 38.2% holding in TUK that TTL did not already own 23.5% holding in TTL that it did not already own • Consideration of 11.9m new ordinary Accsys shares valued at €9.5m NatWes
Slide 17: Business Review & Outlook
BUSINESS REVIEW & OUTLOOK Stephen Odell, Executive Chairman The Old Rectory, The Cotswolds. Windows by Hawker Joinery, Accoya distributed by James Latham © Accsys 2023 17
Slide 18: Overview
OVERVIEW CHANGING WOOD TO CHANGE THE WORLD World-leading products & technology High-performance, sustainable wood products, with industry-leading technology. Significant market opportunity Positioned within global wood products market, estimated to be worth $748bn in 2023 with a CAGR of 7.4%1 . As o
Slide 19: Our Products
OUR PRODUCTS CHANGING WOOD TO CHANGE THE WORLD Our unique Creating superior Our technology performance wood products Industry-leading Durable Outperforming the best tropical Our world-leading process and hardwoods. technology is unique. • Solid timber product • Tricoya wood elements 50-year warranty
Slide 20: Accoya Strategic Development
ACCOYA STRATEGIC DEVELOPMENT Arnhem • Successful plant expansion through addition of 20,000m3 reactor 4, enabling maximum annual capacity to increase to 80,000m3: Reactor 4 fully operational from September 2022 leading to record output in Q3 and Q4 Further work on optimising reactor 4 – to reduc
Slide 21: Accoya Strategic Development Cont'd
ACCOYA STRATEGIC DEVELOPMENT CONT’D Accoya USA Joint Venture with Eastman • Construction of Accoya plant in USA with initial approximate 43,000m3 capacity at Eastman’s Kingsport, Tennessee site: Good progress on construction, which commenced April 2022 Key milestones include completion of ground
Slide 22: Tricoya Strategic Development
TRICOYA STRATEGIC DEVELOPMENT Tricoya UK (Hull Plant) • Announcement in November 2022 of Accsys’ 100% ownership and control of Hull project – put in hold period for at least six months to assess future capability and funding options • Good progress with Board review: Construction substantially com
Slide 23: Summary & Outlook
SUMMARY & OUTLOOK FY23 Results Outlook for FY24 • 34% increase in revenue despite operational challenges • Further leverage from greater economies of scale associated with higher plant volumes • 6% growth in Accoya volumes; H2 volumes 64% higher than H1 • Implementation of actions to secure future s