Slide 1: Full Year 2023 results
Full Year 2023 results March 7, 2024 1
Slide 2: Agenda
Agenda Key developments & business update Financial performance Outlook Q&A Thijs Bakker Appendix: innovation examples Group CFO Anna Bertona Group CEO 2
Slide 3: Disclaimer
Disclaimer This document may contain statement relevant to Azelis Group NV (the “Company”) and/or its affiliated companies (collectively “Azelis” or the “Azelis Group”) which are not historical facts and are hereby identified as “forward-looking statements”. Such forward looking statements, include,
Slide 4: Key developments & business update
Key developments & business update 4
Slide 5: Key messages at a glance
Key messages at a glance Successful strategy in an attractive industry 1. Our results in 2023 reflect a strong performance in a challenging market. 2. The current industry challenges are temporary as the market normalizes following two years of disruptions. The fundamentals remain intact and growth
Slide 6: 2023 Highlights: strong performance in a challenging market
2023 Highlights: strong performance in a challenging market Performance highlighting diversity and resilience of business model o €4.2bn Group revenue, an increase of 1% y/y (+5.3% in ccy) despite challenging trends, underscoring the diversity of our business. o €466m Adjusted EBITA, an increase of
Slide 7: 2023 Azelis growth: driven by organic LS and M&A
2023 Azelis growth: driven by organic LS and M&A Organic M&A Life sciences slight growth Seven acquisitions representing combined total o Stable Food & Nutrition annual revenue of over EUR 400m completed o Strong Pharma performance o Smoky Light reinforces Group portfolio in Benelux o F&F stabilizat
Slide 8: 2023 progress report
2023 progress report Industry Azelis Strategy Strong future trends performance execution ahead Challenging markets Focus & resilience Growth pillars and strategic Well-positioned for the long focus on Innovation, Digital runway for growth • Overstocking • Intensification of customer- & Sustainabilit
Slide 9: Outperformance of mid-term guidance
Outperformance of mid-term guidance Revenue (€m) Adjusted EBITA1 (€m) Free cash flow2 (€m) 8.5% 270 b.p. Adjusted 11.2% 98.0% 97% average 127.4% EBITA Margin expansion 98% FCF conversion 4.109 4.152 601 457 466 438 2.827 2.223 268 190 188 182 2020 2021 2022 2023 2020 2021 2022 2023 2020 2021 2022 20
Slide 10: Financial performance
Financial performance 10
Slide 11: Headline growth 2023
Headline growth 2023 Azelis Performance F/X M&A Growth Organic Total FY 2023 FY 2022 (EUR m) Translation Contribution Growth Growth EMEA 1,793.9 1,811.6 -4.9% 6.5% -2.7% -1.0% Americas 1,454.3 1,549.9 -2.6% 8.9% -12.4% -6.2% Asia Pacific 904.0 747.5 -5.9% 27.3% -0.5% 20.9% Group Revenue 4,152.2 4,10
Slide 12: Regional financial update
Regional financial update EMEA Americas Asia Pacific Adjusted 11.9% 13.2% Adjusted 13.7% 12.7% Adjusted 7.8% 8.7% EBITA EBITA EBITA margin -1.0% margin margin € 1.812 € 1.794 -6.2% € 1.550 € 1.454 Revenue Revenue Revenue +20.9% € 904 (EUR m) (EUR m) (EUR m) € 748 FY 2022 FY 2023 Conversion 50,8% Con
Slide 13: Headline P&L 2023
Headline P&L 2023 Azelis Group Highlights Reported Reported Constant Q4 2023 Q4 2022 FY 2023 FY 2022 (EUR m) Change Change Currency Life Sciences 600.1 613.8 -2.2% 2,565.5 2,474.6 3.7% 7.7% Industrial Chemicals 372.6 387.5 -3.9% 1,586.7 1,634.5 -2.9% 1.6% Revenue 972.7 1,001.4 -2.9% 4,152.2 4,109.1
Slide 14: Net profit and net profit drivers
Net profit Azelis Group (EUR m) FY 2023 FY 2022 Net profit drivers Adjusted EBITA 466.3 456.9 Amortization of intangible assets -66.8 -56.9 Stable operating profit Adjustments -12.6 -11.6 o Scale benefits and cost Operating profit 386.9 388.4 management offset weak topline Net financial expense -139
Slide 15: Cashflow bridge and Group cash flow
Cashflow bridge EUR million Group cash flow 601,2 CF Drivers FY2023 FY2022 (EUR m) 500,6 Operating profit 386.9 388.4 466,3 Amortization 66.8 56.9 386,9 FCF conversion ratio 127.4% Adjustments 12.6 11.6 Adjusted EBITA 466.3 456.9 Depreciation 34.3 27.8 Adjusted EBITDA 500.6 484.7 Operating Amortizat
Slide 16: Working capital
Working capital Working capital Evolution of NWC* Receivables Inventory Payables EUR million NWC/ 10.9% 11.1% 15.3% 13.8% 13.4% Revenue* 1.100 900 700 628 563 467 500 300 262 268 376 443 445 100 200 218 -100 -227 -235 -369 -463 -434 -300 -500 2019 2020 2021 2022 2023 Jan Feb Mar Apr May Jun Jul Aug
Slide 17: Net debt
Net debt EUR million +68 +3 +10 -200 2.5x 2.2x +585 +29 +29 -618 +89 +15 + 103 1 275 1 162 Net Debt 31 Dec Operational CF Income tax Net Interest paid Capex M&A Leases Dividend payment Purchase of Transaction Costs Capital increase others* Net Debt 31 Dec 2022 to group treasury shares 2023 sharehold
Slide 18: Outlook
Outlook 18
Slide 19: Outlook: back to organic growth in 2024 and refreshing our strategy
Outlook: back to organic growth in 2024 and refreshing our strategy building on a Near-term strong legacy o At present, uncertainty remains high and comps remain tough in Q1 o We don’t expect further deterioration of the market conditions o Return to organic growth expected in 2024 o Costs will cont
Slide 20: Full Year 2023 Results Q&A
Full Year 2023 Results Q&A 20
Slide 21: Our commitment to sustainability
Our commitment to sustainability Sustainable Minimized Responsible Governance formulations footprint employer Our Action 2025 commitment 80% 50% 30% Zero of our revenue from reduction in Scope 1 of management material breaches TfS-assessed & 2 carbon intensity positions held by of laws and principal
Slide 22: Innovation in action: formulations for customers
Innovation in action: formulations for customers CASE Food & Nutrition Anti-slip coating for Egg-free muffins bathtubs Increased safety and sustainability Reduced cost by substituting eggs o CASE team formulated a water- o To reduce costs, our lab team based, isocyanate-free formulation researched a