Croda International Plc · LSE:CRDA

Croda International — FY2024 Earnings Presentation

33 slides from Croda International's earnings presentation, Feb 25, 2025

Slide 2: Disclaimer
Disclaimer C A U T I O N A R Y S TAT E M E N T A LT E R N AT I V E P E R F O R M A N C E M E A S U R E S ( A P M S ) This review is intended to focus on matters which are relevant to the interests of We use a number of APMs to assist in presenting information in this statement in shareholders in the
Slide 5: Strengthening our business in a transitional year
Strengthening our business in a transitional year R E S U LT S S U M M A R Y HIGHLIGHTS1 Changes • Group sales -1% (+2% ex CV192) £m 2024 2023 ( constant FX) Change • Sales of New & Protected Products up 6% Sales 1,628.1 1,694.5 (1)% (4)% • 17.2% adjusted operating profit margin (2023: 18.9%); Adjus
Slide 6: Mixed business performance against a subdued economic backdrop
Mixed business performance against a subdued economic backdrop CONSUMER LIFE INDUSTRIAL GROUP CARE SCIENCES S P E C I A LT I E S KEY Sales Sales1 Sales Sales1 +7% -6% +2% +2% Sales (constant FX) 17.4% 20.6% 7.6% 17.2% Op margin Op margin Op margin Op margin Adj op margin 2025 sales expectations Sale
Slide 7: More stable customer inventories and demand
More stable customer inventories and demand CONSUMER CARE PHARMA A G R I C U LT U R E L&R customers continue to flourish Pharma markets mixed Crop prices stabilising L&R share of beauty product launches1 Analyst consensus for biopharma organic growth2 Prices indexed to 100 30% 250 25% 225 20% 91% 20
Slide 8: Restoring Croda earnings and returns
Restoring Croda earnings and returns CHALLENGES SALES 1 Market fragmentation Reduced customer new product 2 development through pandemic 3 Recent investments need to deliver MARGINS Under-utilised at shared 4 manufacturing assets Cost base inflation ahead of 5 revenue delivery RETURNS ROIC depressed
Slide 9: Strengthening Croda in a transitional year
2 Strengthening Croda in a transitional year FINANCE REVIEW Anthony Fitzpatrick Interim Chief Financial Officer © Copyright 2024 Croda International Plc
Slide 10: Group performance summary
Group performance summary Change Adjusted results, £m 2024 2023 (Constant FX) Change Sales 1,628.1 1,694.5 (0.8)% (3.9)% Operating profit 279.7 320.0 (8.2)% (12.6)% Operating margin 17.2% 18.9% – (1.7)ppts Profit before tax 260.0 308.8 (11.6%) (15.8)% Basic earnings per share 142.6p 167.6p – (14.9)%
Slide 11: Sales supported by volume growth
Sales supported by volume growth Average raw material costs: Reported change (4)% • 2023 (12)% • 2024 (4)% (3)% (3)% (6)% +7% +1% • Raw materials are ~35% sales • Enabled lower prices and volume recovery in certain business units • Stable gross margins1 +2% at constant currency, ex CV19 1,694.5 1,62
Slide 12: Continued Asian growth underpin
Continued Asian growth underpin ASIA L AT I N A M E R I C A NORTH AMERICA EMEA KEY Sales growth (constant FX) +7% +0% -1% -6% Sales growth (constant FX ex CV191) - - +1% +0% Constant currency 1Where indicated sales exclude £48m of lipid sales for CV19 vaccine applications in 2023. They are excluded
Slide 13: Profit margin lower but improved in H224
Profit margin lower but improved in H224 A D J U S T E D O P E R AT I N G M A R G I N 17.7% 17.2% ~(1.3)% 16.6% ~(1.8)% +2.3% H1 H2 FY Sequential improvement 18.9% driven by: ~(0.9)% 1. Active and prudent cost control 17.2% 2. Higher sales volumes, notably in Life Sciences 2023 CV19 lipids Bouncebac
Slide 14: Consumer Care
Consumer Care CONSUMER CARE SALES HIGHLIGHTS +11% +4% • 7% increase in sales1 driven by 11% +1% increase in sales volumes (5)% (3)% • F&F standout performance • NPP sales improved to 43% of total + 11% NPP sales (2023: 42%) sales growth1 Price/mix Volume Acquisitions Currency Total • 4% increase in
Slide 15: Life Sciences
Life Sciences LIFE SCIENCES SALES HIGHLIGHTS +1% • Returned to growth in H224 (ex (4)% (3)% (2)% CV19) driven by higher sales 4.6ppt (8)% volumes in Crop Protection (6)% ex CV19 at constant FX (16)% • NPP sales improved to 31% of total sales (2023: 28%) + Operating margin Price/mix Volume Acquisitio
Slide 16: Industrial Specialties
Industrial Specialties I N D U S T R I A L S P E C I A LT I E S S A L E S HIGHLIGHTS +9% • Contributing to the efficiency of our shared manufacturing sites 3.0ppt (1)% • Sales 2% higher at constant (3)% (7)% currency driven by a 9% increase in volumes + Price/mix Volume Currency Industrial Operating
Slide 17: Strong free cash flow supported by working capital inflow
Strong free cash flow supported by working capital inflow Cash flow, £m 2024 2023 EBITDA 378.3 409.5 Working capital inflow driven by: Working capital 20.9 29.1 • Payment of CV19 lipids receivable Interest & tax (84.4) (93.5) from 2023 Other cash movements (4.6) (7.6) Net cash from operating activit
Slide 18: Recent investments need to deliver
Recent investments need to deliver 1 CORE CRODA 2 M&A 3 PHARMA CAPEX Capital expenditure Acquisition spend £175m Pharma investment programme (inc. contingent consideration) 2018 2019 2020 2021 2022 2023 2024 2025e 2018 2019 2020 2021 2022 2023 2024 2025e 2018 2019 2020 2021 2022 2023 2024 2025e Not
Slide 19: 2025 technical factors
2025 technical factors R A W M AT E R I A L S NET FINANCE D E P R E C I AT I O N COSTS ~1% ~£25m ~£105-110m increase in raw material costs total depreciation expected in Q125 including leases* EFFECTIVE WORKING C A P I TA L TA X R AT E C A P I TA L EXPENDITURE ~26% £10-20m ~£135m dependent on geogra
Slide 20: Accelerating actions to grow earnings and improve returns
3 Accelerating actions to grow earnings and improve returns CEO REVIEW Steve Foots Group Chief Executive Officer © Copyright 2024 Croda International Plc
Slide 21: Accelerating actions to grow earnings and returns
Accelerating actions to grow earnings and returns CHALLENGES ACTIONS SALES Market fragmentation 1 Leveraging proximity to L&R customers Reduced customer new product Stepping up innovation development through pandemic 2 Recent investments need to deliver Delivering growth and returns 3 from all recen
Slide 22: Leveraging proximity to L&R customers
Leveraging proximity to L&R customers CONSUMER CARE CROP PROTECTION ASIA Localising innovation Diversifying customer base Driving rapid growth in key countries L&R share of sales L&R share of sales Consumer Care sales growth in key countries1 +11%1 +7%1 80% 56% 26% 77% 17% 12% 12% 48% 7% 2023 2024 2
Slide 23: Stepping up innovation
Stepping up innovation I N C R E A S I N G I N N O VAT I O N A P P L I C AT I O N - F O C U S E D INCREASING PORTFOLIO INTENSITY I N N O VAT I O N D I F F E R E N T I AT I O N R&D expenditure increasing as a % of sales Rapid increase in customer projects1 NPP climbing NPP sales as a % of total sales
Slide 24: Delivering growth and returns from all recent investments
Delivering growth and returns from all recent investments 1 CORE CRODA 2 M&A 3 PHARMA CAPEX Growth capex focused on Asia F&F growing ahead of market £175m programme 2021-25 • Surfactants, Dahej, India • Fragrances, Guangzhou, China 17% Sales CAGR 2021-24 • Alabama, USA – lipid development • Lamar, U
Slide 25: Driving sales volumes and operating leverage
Driving sales volumes and operating leverage Shared site volumes indexed to 100 (4 QTR moving average) 110 Eleven largest shared manufacturing assets Industrials divestment1 • ~70% of total sales volumes 105 June 2022 • ~60% of total sales 100 95 2024 sales volume performance by relevant business un
Slide 26: Realigning our cost base
Realigning our cost base M U LT I - Y E A R M O D E R N I S AT I O N P R O G R A M M E NEAR-TERM BENEFITS Versus 2024 baseline • Embedding cost disciplines to permanently capture benefits 2025 2026 T O TA L • Identified significant opportunities to simplify, standardise and modernise Pre-tax benefit
Slide 27: 2025 benefits largely offset inflation and investment costs
2025 benefits largely offset inflation and investment costs Indicative movements in profit before tax Outlook • Consumer Care and Life £295m Sciences to grow sales 2025 PBT • Improved volumes in 2024 guidance at constant • Price/mix headwind likely to currency diminish £265m £(10)m £25m • Operationa
Slide 28: Restoring Croda earnings and returns
Restoring Croda earnings and returns SALES Driving growth by stepping up innovation and maximising returns from recent investments MARGINS Driving margin by improving capacity utilisation and operational efficiency RETURNS Driving returns as capex moderates by prudently managing invested capital © C
Slide 31: Quarterly sales breakdown
Quarterly sales breakdown Consumer Life Industrial Life Sciences Group Quarterly sales £m Care Sciences Specialties Group (ex-CV19)* (ex-CV19)* Q1 2023 236.8 170.8 69.1 476.7 170.8 476.7 Q2 2023 218.8 132.4 53.0 404.2 132.4 404.2 Q3 2023 218.2 125.0 43.7 386.9 125.0 386.9 Q4 2023 212.3 174.1 40.3 42
Slide 32: Currency exposure
Currency exposure The US Dollar and the Euro together represent approximately 65% of the Group’s currency translation exposure. 2024 average rates: • US$1.28 (2023: US$1.24) • €1.18 (2023: €1.15) Average annual impact: • £1m per $cent pa • £1m per €cent pa Sterling strengthened against both the US D

Croda International — FY2024 Earnings Presentation on 6ix

Croda International — FY2024 Earnings Presentation

Slide 1: Croda FY24 results

Slide 2: Disclaimer

Slide 3: Strengthening Croda in a transitional year

Slide 4: Agenda

Slide 5: Strengthening our business in a transitional year

Slide 6: Mixed business performance against a subdued economic backdrop

Slide 7: More stable customer inventories and demand

Slide 8: Restoring Croda earnings and returns

Slide 9: Strengthening Croda in a transitional year

Slide 10: Group performance summary

Slide 11: Sales supported by volume growth

Slide 12: Continued Asian growth underpin

Slide 13: Profit margin lower but improved in H224

Slide 14: Consumer Care

Slide 15: Life Sciences

Slide 16: Industrial Specialties

Slide 17: Strong free cash flow supported by working capital inflow

Slide 18: Recent investments need to deliver

Slide 19: 2025 technical factors

Slide 20: Accelerating actions to grow earnings and improve returns

Slide 21: Accelerating actions to grow earnings and returns

Slide 22: Leveraging proximity to L&R customers

Slide 23: Stepping up innovation

Slide 24: Delivering growth and returns from all recent investments

Slide 25: Driving sales volumes and operating leverage

Slide 26: Realigning our cost base

Slide 27: 2025 benefits largely offset inflation and investment costs

Slide 28: Restoring Croda earnings and returns

Slide 29: Question and Answer

Slide 30: Appendices

Slide 31: Quarterly sales breakdown

Slide 32: Currency exposure

Slide 33: Smart science to improve lives