Syensqo Sa/nv · EURONEXT:SYENS
Syensqo Sa/nv — FY2024 Earnings Presentation
38 slides from Syensqo Sa/nv's earnings presentation, Feb 27, 2025
Slide 1: Full Year 2024 Results
DR. ILHAM KADRI CHIEF EXECUTIVE OFFICER FULL YEAR 2024 RESULTS CHRISTOPHER DAVIS FEBRUARY 27, 2025 CHIEF FINANCIAL OFFICER
Slide 2: Disclaimer
DISCLAIMER This presentation may contain forward-looking information. Forward-looking statements describe expectations, plans, strategies, goals, future events or intentions. The achievement of forward-looking statements contained in this presentation is subject to risks and uncertainties relating t
Slide 3: Agenda
AGENDA 2024 REVIEW 1 2024 FINANCIAL REVIEW 2 LOOKING AHEAD 3 3
Slide 4: Fourth Quarter & Full Year 2024 Review
DR. ILHAM KADRI CHIEF EXECUTIVE OFFICER FOURTH 1 QUARTER & FULL YEAR 2024 REVIEW 4
Slide 5: Fourth Quarter 2024 Highlights
FOURTH QUARTER 2024 1.60bn NET +3% volumes € HIGHLIGHTS SALES -1% pricing 2% organic YoY revenue growth, led by GROSS 482mn 30.2% margin Novecare and Technology Solutions € PROFIT -60 bps YoY Robust YoY gross margin performance 5% organic YoY EBITDA growth, led by 18.6% margin Technology Solutions a
Slide 6: Fourth Quarter Segment Highlights
FOURTH MATERIALS CONSUMER & RESOURCES QUARTER Flat YoY[1] growth in Composite 8% YoY[1] net sales growth, Materials (including impact of led by Novecare & 2024 Boeing strike) Technology Solutions SEGMENT Space & Defense up double digits Market share gains in HPC and Coatings; double digit HIGHLIGHTS
Slide 7: Full Year 2024 Highlights
FULL YEAR 2024 NET 6.56bn +1% volumes € HIGHLIGHTS SALES -4% pricing Positive volume momentum with YoY growth in H2 2024 GROSS PROFIT 2.22bn € 33.8% margin -90bps YoY Robust YoY gross margin performance, despite -€97 million of net pricing Vitality index increased to 21% EBITDA in line with expectat
Slide 8: Executing Our Strategy
EXECUTING OUR STRATEGY Climate impulse Acquisition of Introduction Syensqo unveils First fluoro-ionomer Announcement of Syensqo achieves A non-stop 9 day ceramides of new ambitious water based on strategic partnership SBTi validation flight around the specialist epoxy-based stewardship non-fluorosur
Slide 9: Bringing Home the Customer Wins
Automotive Electronics Agro BRINGING New high performance slot liner for high voltage Continued to increase share of wallet, including New multi-year contract for heavy HOME THE e-motor applications significant wins in semiconductor fluids metal removal CUSTOMER Energy transition Mining WINS New ele
Slide 10: A Focused Company
A FOCUSED COMPANY NON CORE ASSETS Accelerating our pure play speciality strategy, aligned with attractive growth markets FOUR GLOBAL BUSINESS UNITS OIL & GAS SPECIALTY COMPOSITE TECHNOLOGY NOVECARE POLYMERS MATERIALS SOLUTIONS Portfolio Leader in of surface Global leader in € 0.4 bn Broadest portfol
Slide 11: Full Year 2024 Financial Review
CHRISTOPHER DAVIS CHIEF FINANCIAL OFFICER FULL YEAR 2 2024 FINANCIAL REVIEW 11
Slide 12: Fourth Quarter & Full Year 2024 Financial Results
FOURTH QUARTER & FULL YEAR 2024 FINANCIAL RESULTS YoY YoY QoQ YoY YoY (€ million) Q4 2024 Q4 2023 Q3 2024 FY 2024 FY 2023 change organic change change organic Net sales 1,598 1,577 1,633 1.3% 1.6% -2.1% 6,563 6,834 -4.0% -2.8% Gross profit 482 485 572 -0.6% - -15.7% 2,219 2,375 -6.6% - Gross profit
Slide 13: Fourth Quarter & Full Year 2024 Underlying EBITDA
FOURTH QUARTER & FULL YEAR 2024 UNDERLYING EBITDA Q4 2024 (€ million) Full year 2024 (€ million) Q4 Scope FX Q4 2023 Volume Net Fixed Q4 2024 FY 2023 Scope FX FY 2023 Volume Net Fixed FY 2024 2023 & mix (constant pricing costs & (constant & mix pricing costs & scope & FX) scope & FX) Others Others 1
Slide 14: Net Pricing Impact in Line with Expectations
NET PRICING IMPACT IN LINE WITH EXPECTATIONS Aroma + Oil & Gas Resilient gross margin Novecare + Technology Solutions Materials performance in FY 2024, including net pricing impact of -€97 million ■ ~Flat net pricing in Materials ■ Novecare net pricing impact offset by increased volumes to maximise
Slide 15: Resilient Gross Margin Performance
RESILIENT GROSS MARGIN PERFORMANCE Materials Syensqo excl. Aroma + Oil & Gas LTM increase Novecare + Technology Solutions since 2019 +410 bps +650 bps +760 bps Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 19 20 20 20 20 21 21 21 21 22 22 22 22 23 23 23 23 24 24 24 24 LTM Gross Prof
Slide 16: Capital Expenditure Focused on Growth
CAPITAL EXPENDITURE FOCUSED ON GROWTH € million Sustenance capital driven by Corporate Growth capex[1] Consumer & Resources Sustenance capex[2] ■ Maintenance, safety and compliance Materials across our global footprint ■ Investments in new digital architecture Growth capital driven by ■ Tavaux expan
Slide 17: 82% Cash Conversion in FY 2024
82% CASH CONVERSION IN FY 2024 € million Cash flow from operating activities Cash conversion [1] €167 million payment to the NJDEP in Q2 2024 Impact of €167 million payment to the NJDEP in Q2 2024 85% 82% 1,275 1,008 71% 841 2023 2024 2023 2024 [1] Cash conversion = (EBITDA +/- change in working cap
Slide 18: Strong Financial Position
STRONG FINANCIAL POSITION Strong investment grade rating GEARING[2] S&P Stable outlook €1.7 bn 21% Underlying Net Debt undrawn committed € 2.5 bn BBB+ facilities Total cash & undrawn committed NET DEBT MOODY’S € 1.9 bn facilities leverage ratio [3] €0.8 bn Stable outlook cash[1] 1.3X Baa1 [1] Total
Slide 19: Increasing Shareholder Returns in 2024
INCREASING SHAREHOLDER €300 million Share Buyback Program RETURNS IN 2024 Proposed dividend for 2024 €1.62 per share ■ Aligned with ■ First two tranches commitment to completed by Feb Subject to shareholders’ approval at the AGM | May 6, 2025 create shareholder 2025, totalling €100 € million value &
Slide 20: Looking Ahead
DR. ILHAM KADRI CHIEF EXECUTIVE OFFICER 3 LOOKING AHEAD 20
Slide 21: 2025 Priorities
2025 PRIORITIES ■ Deliver on cost saving initiatives; targeting >€200 million run rate savings by end of 2026 ■ Fully exit TSAs with Solvay and commence new ERP implementation ■ Divest non-core assets and redeploy proceeds to high return growth projects ■ Complete exploration of potential US Listing
Slide 22: FY 2025 Outlook
FY 2025 OUTLOOK END MARKET OUTLOOK SEGMENT OUTLOOK SYENSQO OUTLOOK ■ Macroeconomic & demand MATERIALS CONSUMER EBITDA[1] at least € 1.4 billion uncertainty expected to continue & RESOURCES ■ Cost savings expected to offset inflation, with net benefit weighted ■ Growth in Aerospace & Defense Mid sing
Slide 23: Q&A
Q&A 23
Slide 24: Supplementary Information
SUPPLEMENTARY INFORMATION 24
Slide 25: 2025 Financial Considerations
2025 FINANCIAL CONSIDERATIONS D&A ➔ ~€500 million (excl. PPA amortization for Cytec of €130m and ~€60m relating to leases under IFRS 16) Cost savings ➔ To exceed €200 million run rate by end of 2026 P&L Net financial expense ➔ €110-130 million, excluding cost of discounting & leases P&L Underlying t
Slide 26: Fourth Quarter & Full Year 2024 Key Figures
FOURTH QUARTER & FULL YEAR 2024 KEY FIGURES IFRS Underlying (€ million) Q4 2024 Q4 2023 % YoY Q4 2024 Q4 2023 % YoY YoY organic Net sales 1,598 1,577 1.3% 1,598 1,577 1.3% 1.6% EBITDA 198 180 10.1% 298 294 1.2% 5.1% EBITDA margin 12.4% 11.4% 100 bps 18.6% 18.7% 0 bps - EBIT -64 -111 -42.8% 135 155 -
Slide 27: Fourth Quarter & Full Year 2024 Underlying EBITDA
FOURTH QUARTER & FULL YEAR 2024 UNDERLYING EBITDA Q4 2024 Net Sales (€ million) FY 2024 Net Sales (€ million) Q4 Scope FX Q4 2023 Materials C&R Corporate Q4 FY 2023 Scope FX FY 2023 Materials C&R Corporate FY 2023 (constant 2024 (constant 2024 scope & FX) scope & FX) Q4 2024 EBITDA (€ million) FY 20
Slide 28: Fourth Quarter EBITDA to Free Cash Flow Bridge
FOURTH QUARTER EBITDA TO FREE CASH FLOW BRIDGE € million Growth: -€79m Sustenance: -€87m Underlying Capex Change in Change in Financing Taxes FCF to EBITDA Working Capital Provisions & Other shareholders 28
Slide 29: Full Year 2024 EBITDA to Free Cash Flow Bridge
FULL YEAR 2024 EBITDA TO FREE CASH FLOW BRIDGE € million Growth: -€378m Sustenance: -€293m Underlying Capex Change in NJDEP Change in Financing Taxes FCF to NJDEP FCF to EBITDA Working payment Provisions & Others shareholders payment shareholders Capital excl. NJDEP payment 29
Slide 30: Balanced Debt Maturity Profile
BALANCED DEBT MATURITY PROFILE LHS: in € or $ million RHS: in % $600 $600 €500 €500 5.85% 5.65% 4.28 3.95% 2.75% 2.50% Early redemption at par as of Feb 1, 2025 $163 2025 Dec 2026 Dec 2028 Jun 2030 2031 2032 2033 Jun 2025 2027 2029 2034 $ € € $ $ Senior Perp. Senior Senior Senior note Hybrid Note no
Slide 31: Segment Performance: Materials
SEGMENT PERFORMANCE: MATERIALS Lower Q4 net sales in Specialty Polymers and impact from strike action at major aviation customer, partially offset by double digit growth in Space & Defence applications; 110 bps of YoY EBITDA margin expansion Q4 2024 Q4 2023 Q3 2024 YoY change YoY change QoQ FY 2024
Slide 32: Segment Performance: Consumer & Resources
SEGMENT PERFORMANCE: CONSUMER & RESOURCES 8% YoY Q4 net sales growth, led by Novecare & Technology Solutions; 120 basis points of YoY EBITDA margin expansion Q4 2024 Q4 2023 Q3 2024 YoY change YoY change QoQ change FY 2024 FY 2023 YoY change YoY change Underlying (€ million) (€m) (€m) (€m) (%) (org
Slide 33: 2024 Review by End Market
2024 REVIEW BY END MARKET TOP 3 Market position [1] Materials % of 2024 net sales 2024 vs 2023 Comments Consumers net sales growth 18% & Resources Double digit growth with strong demand & pricing in civil & defense. Boeing strike AEROSPACE impact to continue in H1’25; broader supply chain challenges
Slide 34: One Planet Roadmap Progress in 2024
ONE PLANET ROADMAP PROGRESS IN 2024 50% of our 2030 climate targets achieved NATURE BETTER LIFE CLIMATE GROWTH 20% reduction in Safety freshwater withdrawal Aim for 29% reduction [2] zero RIIR[6] Carbon Neutrality in by 2030[2] at sites exposed to water availability challenges 18% of Circular sales
Slide 35: Glossary and One Planet Notes
GLOSSARY AND ONE PLANET NOTES Glossary One Planet ■ Cash flow from operating activities, or Operating cash flow are those generated from/(used by) the principal [1] Reduce scope 1 and 2 emissions by at least 80% revenue-producing activities of the Group and other activities that are not investing or
Slide 36: Full Year 2024 Regional Sales Mix
FULL YEAR 2024 REGIONAL SALES MIX ASIA & rest of AMERICAS the world EUROPE 1 2 3 41% net sales 36% net sales 23% net sales +40 bps YoY +100 bps YoY -140 bps YoY industrial industrial industrial 36 sites 12 sites 14 sites major major major 4 R&I centers 3 R&I centers 5 R&I centers 36
Slide 37: Investor Relations
IMPORTANT DATES ■ May 6, 2025: Annual General Meeting ■ May 15, 2025: Q1 2025 results INVESTOR ■ May 19, 2025: Proposed dividend payment date ■ July 31, 2025: Q2 2025 results RELATIONS ■ Nov 6, 2025: Q3 2025 results Sherief Bakr INVESTOR CONFERENCES +44 7920 575 989 ■ March 25, 2025: J.P. Morgan Eur
Slide 38: Thank You
THANK YOU 38