Slide 1: First-Half 2022 Results
First-Half 2022 Results J U LY 2 9 , 2 0 2 2
Slide 2: H1 2022: An Excellent First-Half Performance
H1 2022: AN EXCELLENT FIRST-HALF PERFORMANCE FULL-YEAR GUIDANCE RECENTLY RAISED SALES OPERATING INCOME EBITDA BEFORE NON-RECURRING ITEMS €524m €55m €87m Margin: 10.5% Margin: 16.6% Organic growth Change vs. H1 2021 Change vs. H1 2021 +11,1% +90 bps +90 bps 2 H1 2022 Results – July 29, 2022
Slide 3: Dynamic Markets in First-Half 2022
Dynamic Markets in First-Half 2022 Luc Themelin, CEO 3 H1 2022 Results – July 29, 2022
Slide 4: Record Sales in H1 2022: Sharp Growth in All Geographies
RECORD SALES IN H1 2022: SHARP GROWTH IN ALL GEOGRAPHIES €524m 1 Europe €178m 1 +11% vs. H1 2021 2 North America €179m 3 2 +16% vs. H1 2021 €149m 3 Asia-Pacific +7% vs. H1 2021 South America – 4 4 Africa €18m +4% vs. H1 2021 Organic growth (%) 4 H1 2022 Results – July 29, 2022
Slide 5: Strong Momentum in Renewable Energies and Process Industries
STRONG MOMENTUM IN RENEWABLE ENERGIES AND PROCESS INDUSTRIES CHEMICALS +++ 9% ENERGIES Solar 23% Wind ++ PROCESS INDUSTRIES €524m 34% + Semiconductors TRANSPORTATION 13% Rail + Aeronautics 5 H1 2022 Results – July 29, 2022
Slide 6: Growth Market Potential Confirmed
GROWTH MARKET POTENTIAL CONFIRMED Sales growth Outlook H1 2022 H2 2022 - 2023 SOLAR ++++ Limited graphite volume allocation for the POWER ++ solar industry in the second half New semiconductor plants announced: SI SEMICONDUCTOR ++ ++ MANUFACTURING significant medium-term potential for Mersen SIC SEM
Slide 7: First-Half 2022 Results
First-Half 2022 Results Thomas Baumgartner, CFO 7 H1 2022 Results – July 29, 2022
Slide 8: EBITDA Growth of 22%, 27% Growth in Operating Income
EBITDA GROWTH OF 22%, 27% GROWTH IN OPERATING INCOME BEFORE NON-RECURRING ITEMS In €m H1 2021 H1 2022 EBITDA 71.0 86.9 +22% EBITDA margin 15.7% 16.6% Depreciation and amortization (27.7) (31.9) Operating income before non- 43.3 55.0 +27% recurring items Operating margin before non- 9.6% 10.5% recurr
Slide 9: Sharp Improvement in Operating Margin Thanks to Volumes and Pricing
SHARP IMPROVEMENT IN OPERATING MARGIN BEFORE NON-RECURRING ITEMS THANKS TO VOLUMES AND PRICING H1 2021 operating margin before non- 9.6% In percentage recurring items points 10.5% Volume/mix effect +2.9 9.6% 55 Price effect +2.9 Raw material/energy inflation -2.3 43 -0.1 Productivity gains +1.1 Infl
Slide 10: Advanced Materials: Significant Margin Improvement
ADVANCED MATERIALS: SIGNIFICANT MARGIN IMPROVEMENT, MAINLY LINKED TO VOLUMES In €m H1 2021 H1 2022 Very significant positive volume effect Sales 284.4 292.3 Selling price increases offsetting the EBITDA 52.3 66.1 higher cost of energy and raw materials EBITDA margin 21.1% 22.6% Increase in dep
Slide 11: Electrical Power: Raw Material/Price Effect
ELECTRICAL POWER: A RAW MATERIAL/PRICE EFFECT THAT SHOULD BE MORE FAVORABLE IN THE SECOND HALF OF THE YEAR In €m H1 2021 H1 2022 Significant volume effect Sales 202.5 232.0 Raw material and wage inflation EBITDA 27.1 30.4 partially offset by selling price increases and productivity plan EBITDA m
Slide 12: Net Income Up 41%
NET INCOME UP 41% In €m H1 2021 H1 2022 Operating income before non- recurring items 43.3 55.0 Non-recurring income and expenses (1.6) (0.7) Competitive financial Net financial expense (5.6) (5.3) conditions of the most recent USPP Effective tax rate : 22% Income tax (9.0) (10.8) Net income 27.1
Slide 13: Operating Cash Flow Impacted by High Working Capital Requirement
OPERATING CASH FLOW IMPACTED BY HIGH WORKING CAPITAL REQUIREMENT In €m H1 2021 H1 2022 Operating cash flow before change in WCR 64.0 82.0 Very favorable cash seasonality Change in WCR (7.3) (70.6) in 2021. Payment in 2022 of very high 2021 bonuses o/w change in inventories (8.6) (55.2) Increase
Slide 14: Solid Financial Structure
SOLID FINANCIAL STRUCTURE NET DEBT (€m) Net debt/ EBITDA (7) (241) (36) (3) (7) 1.53 (193) 5 Net debt/ equity 34% Using the bank covenant method Not including Lease liabilities: €54m (vs. €53m at Dec. 31, 2021) Provisions for pension obligations: Dec. 31, 2021 Operating cash Capex including flow IT
Slide 15: Average Financing Maturity in Excess of 5 Years
AVERAGE FINANCING MATURITY IN EXCESS OF 5 YEARS FINANCING At June 30, 2022 (€m) Maturity* c. 5.5 years Undrawn confirmed credit lines 115 (maturing in 2024) c. €165m** including €24m in China c. €60m 58 Available cash 30 20 15 5 10 10 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 * Calculated ba
Slide 16: Outlook
Outlook Luc Themelin, CEO 16 H1 2022 Results – July 29, 2022
Slide 17: 2022 Targets Raised (July Announcement)
2022 TARGETS RAISED (JULY 20 ANNOUNCEMENT) OPERATING MARGIN BEFORE NON- CAPITAL EBITDA SALES RECURRING ITEMS EXPENDITURE MARGIN Organic growth of between Around Around Growth of INITIAL 3% and 6% 10% €80m-€85m 20-30 bps Organic growth of between Around Around Growth of around NEW 8% and 10% 10.5% €8
Slide 18: Ambitious Medium-Term Plan Confirmed
AMBITIOUS MEDIUM-TERM PLAN CONFIRMED SALES €1,200m OPERATING MARGIN BEFORE NEW CSR ROADMAP FOR 2022-2025 NON-RECURRING ITEMS ≥ 11% EV SiC semicon CAGR €923m Si semicon +18% Responsible Solar EBITDA MARGIN partner ≥ 17.5% EV SiC semicon Si semicon Solar Limiting our environmental impact CAGR +4% Deve