Syensqo Sa/nv · EURONEXT:SYENS
Syensqo Sa/nv — Q1 2024 Earnings Presentation
23 slides from Syensqo Sa/nv's earnings presentation, May 16, 2024
Slide 1: First Quarter 2024 Results
Dr. ILHAM KADRI First Quarter Chief Executive Officer 2024 Results CHRISTOPHER DAVIS Chief Financial Officer May 16, 2024
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 First Quarter 2024 Review First Quarter 2024 Financial Review 2024 Outlook 3
Slide 4: First Quarter Review
FIRST QUARTER REVIEW Dr. ILHAM KADRI Chief Executive Officer
Slide 5: First Quarter 2024 Highlights
First Quarter 2024 Highlights NET GROSS SALES PROFIT ■ Improved volume momentum € 1.62bn € 583mn ■ Underlying EBITDA in-line with -2% volumes 35.9% margin -6% pricing expectations ■ Strong sequential margin improvement EBITDA LEVERAGE ■ 89% cash conversion[1] RATIO ■ Net debt reduced to €1.5bn € 363
Slide 6: Accelerating our growth strategy
Accelerating our growth strategy Sponsorship Climate impulse: Innovation Inaugural of DS PENSKE A non-stop 9 day Week to 2023 annual Formula E Team flight around the showcase our integrated world, emission-free, investments in report powered by green innovation hydrogen Strategic Launched Offsite vi
Slide 7: First Quarter 2024 Segment Highlights
First Quarter 2024 Segment Highlights CONSUMER & RESOURCES ■ Improved momentum in most end markets, MATERIALS esp. Construction, HPC and Industrial applications ■ Strong YoY growth in Composite Materials; Aero and defence up double digits ■ Balancing price/volume to maximise value ■ YoY decline in S
Slide 8: First Quarter Financial Review
FIRST QUARTER FINANCIAL REVIEW CHRISTOPHER DAVIS Chief Financial Officer
Slide 9: Summary of First Quarter 2024 Financial Results
Summary of First Quarter 2024 Financial Results Underlying (€ million) Q1 2024 Q1 2023 YoY reported YoY organic Q4 2023 QoQ reported Net sales 1,624 1,813 -10% -8% 1,577 3% EBITDA 363 473 -23% -20% 294 23% EBITDA margin 22.3% 26.1% -380 bps - 18.7% 370 bps Operating Cash Flow 244 412 -41% - n.a. - P
Slide 10: First quarter 2024 underlying EBITDA in-line with outlook
First quarter 2024 underlying EBITDA in-line with outlook € million Q1 2023 Scope FX Q1 2023 Volume Net Fixed Other Q1 2024 (constant scope & mix pricing costs & FX) 10
Slide 11: Capital expenditure focused on growth projects
Capital expenditure focused on growth projects Corporate € million Consumer & Resources Growth capex[1] Materials Sustenance capex[2] Growth capital to support future 144 value creation 144 11 ■ Battery materials: PVDF expansion 118 118 in Tavaux, France and Augusta 37 16 ■ Growth Platforms: investm
Slide 12: Strong cash conversion
Strong cash conversion € million Cash flow from operating activities Cash conversion [1] FY 2023 LTM to Q1 2024 FY 2023 LTM to Q1 2024 [1] Cash conversion = (EBITDA +/- change in working capital - Sustenance Capex)/EBITDA) 12
Slide 13: Strong financial position and investment grade rating
Strong financial position Strong investment grade rating Net debt of €1.5 billion and leverage ratio of 1.0x GEARING[1] S&P Stable outlook €1.7 bn 17% BBB+ Underlying Net Debt undrawn committed € 2.9 bn facilities Total cash & undrawn committed NET DEBT MOODY’S leverage ratio[2] 1 5 bn facilities St
Slide 14: 2024 Outlook
2024 OUTLOOK Dr. ILHAM KADRI Chief Executive Officer
Slide 15: Reiterated FY 2024 Outlook
Reiterated FY 2024 Outlook Comments ● €50-100 million net pricing reduction EBITDA[3] € 1.4 - 1.55 ● Dissynergies (~€30 million) in 2024 related to separation ● R&I and IT investments, cost saving initiatives billion Q2 2024: Positive momentum set to continue, aligned with current consensus expectat
Slide 16: Q&A
Q&A
Slide 17: Supplementary Information
SUPPLEMENTARY INFORMATION
Slide 18: First Quarter 2024 key figures
First Quarter 2024 key figures IFRS Underlying (€ million) Q1 2024 Q1 2023 % YoY Q1 2024 Q1 2023 % YoY % organic Net sales 1,624 1,813 -10.4% 1,624 1,813 -10.4% -8.3% EBITDA 317 537 -40.9% 363 473 -23.4% -20.4% EBITDA margin 19.5% 29.6% -1,010 bps 22.3% 26.1% -380 bps - EBIT 173 386 -55.3% 252 356 -
Slide 19: Segment performance: Materials
Segment performance: Materials Strong YoY growth in Composite Materials, lower volumes and pricing in Specialty Polymers versus record Q1 2023 Q1 2024 (€m) Q1 2023 (€m) YoY change (%) YoY change (org %) Q4 2023 (€m) QoQ change (%) Materials Net Sales 940 1,023 -8% -6% 927 1% Specialty Polymers 652 7
Slide 20: Segment performance: Consumer & Resources
Segment performance: Consumer & Resources YoY performance driven by lower pricing; strong sequential growth in volumes and EBITDA Q1 2024 (€m) Q1 2023 (€m) YoY change (%) YoY change (org %) Q4 2023 (€m) QoQ change (%) Net Sales 684 788 -13% -11% 650 5% Novecare 348 386 -10% -8% 318 9% Tech Solutions
Slide 21: First quarter 2024 underlying EBITDA to Free Cash Flow bridge
First quarter 2024 underlying EBITDA to Free Cash Flow bridge € million Growth: -72 Sustenance: -46 Q1 2024 Capex Change in Change in Financing Taxes & FCF to Underlying Working Provisions Other shareholders EBITDA Capital 21
Slide 22: First quarter 2024 regional mix
First quarter 2024 regional mix EUROPE 25% 26 % of net sales ASIA & AMERICAS +X% ofYoY net sales Rest of the World -60 bps 41 % of net sales year-on-year 33% of net sales +40 bps +20 bps year-on-year year-on-year 22
Slide 23: Investor Relations
INVESTOR RELATIONS Sherief Bakr sherief.bakr@syensqo.com +44 7920 575 989 Bisser Alexandrov bisser.alexandrov@syensqo.com +33 607 635 280 Imtiyaz Lokhandwala imtiyaz.lokhandwala@syensqo.com +1 609 860 3959 investor.relations@syensqo.com