Mersen Sa · EURONEXT:MRN
Mersen Sa — Shareholder Meeting (May 2025)
45 slides from Mersen Sa's shareholder meeting presentation, May 16, 2025
Slide 1: Annual General Meeting
Annual General Meeting May 16, 2025
Slide 2: Agenda
Agenda Results 2024 Market trends and outlook Report by the Statutory Auditors Corporate Governance Report Explanation of resolutions Answers to shareholder’s questions Vote of resolutions 2 Annual General Meeting – May 16, 2025
Slide 3: A solid 2024
01 A solid Thomas Baumgartner CFO 2024
Slide 4: Record sales
Record sales Reported sales (€m) 1,244 1 400 1,211 1 200 1,115 1 000 923 847 800 600 400 200 0 2020 2021 2022 2023 2024 4 Annual General Meeting – May 16, 2025
Slide 5: Strong sales growth in North America in 2024
Strong sales growth in North America in 2024 Sales 2024 €400m Organic growth +1.8% Europe North America Asia-Pacific €509m Organic growth €298m South America Organic growth +6.3% Africa - 1.2% €37m Organic growth - 4.0% 5 Annual General Meeting – May 16, 2025
Slide 6: Growth in end markets over the course of the year, with the exception of the energy market (solar)
Growth in end markets over the course of the year, with the exception of the energy market (solar) 9% CHEMICALS + 33% 16% PROCESS INDUSTRIES TRANSPORTATION + ++ 1,244 M€ +2.6%* 19% ENERGY 23% - ELECTRONICS Organic growth 2024 vs 2023 + ++ +10% ; +20% + + 0% ; +10% - -10% ; 0% *Estimated breakdown of
Slide 7: Profitability maintained at a high level
Profitability maintained at a high level EBITDA before EBITDA non-recurring items margin (€m) 206 250 18% 16.7% 16.7% 16.5% 16.1% 203 200 186 16% 14.5% 149 150 14% 123 100 12% 50 10% 2020 2021 2022 2023 2024 7 Annual General Meeting – May 16, 2025
Slide 8: Operating income before non-recurring items
Operating income before non-recurring items En M€ 2023 2024 EBITDA before non-recurring items 202.7 205.5 As a % of sales 16.7% 16.5% Depreciation & amortization (65.4) (74.5) Operating income before non-recurring items 137.3 131.1 As a % of sales 11.3% 10.5% 8 Annual General Meeting – May 16, 2025
Slide 9: Pricing power and productivity gains helped offset inflation
Pricing power and productivity gains helped offset inflation Operating margin before non-recurring items (in % points) 11.3 -1.2 +1.2 10.5 -0.4 +2 -1.7 -0.6 -0.1 -0.6 +0.6 +0.3 Operating Volume-mix Price effect Inflation raw Productivity Payroll p-SiC project, Currency and Amortization Other Operati
Slide 10: Acceleration of cost and cash flow optimization measures
Acceleration of cost and cash flow optimization measures Structural optimization and Reinforced action plan adaptation measures on inventory management accelerated at the end of 2024 Costs 2024-2025: €23m Cash costs: €14m (2025) Inventory reduction objective -€30m at comparable business level Gain:
Slide 11: Net income
Net income in € million 2023 2024 Operating income before non-recurring items 137.3 131.1 Non-recurring income & expenses (5.9) (23.5) Mainly adaptation Plan Increase in gross debt and interest Net financial expense (19.3) (24.0) rates Effective tax rate restated from Income tax (26.2) (22.0) adapta
Slide 12: A cash-generating model
A cash-generating model Cash flow from operating activities before capital expenditure (€m) 250 194 200 179 150 133 117 106 100 50 0 2020 2021 2022 2023 2024 12 Annual General Meeting – May 16, 2025
Slide 13: Capex in line with the revised growth plan
Capex in line with the revised growth plan Other growth projects 44 Growth plan (SiC, EV) 110 €204m + €12m Maintenance intangible assets 40 -€15m compared with forecasts (carried forward to 2025) Safety and environment 10 13 Annual General Meeting – May 16, 2025
Slide 14: A financial structure that remains robust
A financial structure that remains robust Net debt (€m) Leverage Bank 500 4,0 covenants at 3.5 3,5 400 370 3,0 2,5 300 1.8 Leverage 241 2,0 Group 180 193 212 Policy 200 1,5 1,0 100 0,5 0 0,0 2020 2021 2022 2023 2024 Includes €74m cash-out for the acquisitions of which €8m earn-out payments 14 Annual
Slide 15: Solid extra-financial performance in 2024
Solid extra-financial performance in 2024 Ethics training completed by 98% of new Ethics and compliance employees with a PC Improved CSR rating of our suppliers (only 8 have Upstream value chain a rating below 25) 121 90 Reduction in GHG 77 79 Environmental impact of emissions intensity objective pl
Slide 16: Solid extra-financial performance in 2024
Solid extra-financial performance in 2024 2.78 Frequency 2.08 1.80 1.53 Develop and consolidate a Developing our human capital health and safety culture 66 68 70 60 Severity 2022 2023 2024 29% 27% objective Increase the percentage of 26.1% women engineers & 25.3% managers 2022 2023 2024 2027 Non-exh
Slide 17: The first year of the CSRD sustainability report
The first year of the CSRD sustainability report A double materiality 3 compliance reports: assessment leading to 21 double materiality, ESRS Impacts, Risks and and Taxonomy Opportunities 12 material issues for the Group Around 500 data points published 7 material standards 17 Annual General Meeting
Slide 18: Dividend payout in line with Group policy
Dividend payout in line with Group policy Amount distributed (€m) 1.25 € PAYOUT RATIO*: 1.25 € 0.90 € 37% of net income 1.00 € 30% of restated net income** 0.65 € 30 26 21 22 13 In line with the Group's dividend policy (30% to 40% payout) 2020 2021 2022 2023 2024 Dividend per share * Dividend / Grou
Slide 19: Our Medium-term Growth Drivers
02 Our Medium-term Growth Luc Themelin CEO Drivers
Slide 20: A global presence is an asset in the current geopolitical context
A global presence is an asset in the current geopolitical context Continental Europe 17 industrial sites €375m 2024 sales ~92% locally produced United States China 15 industrial sites €450m 2024 sales 7 industrial sites ~75% locally produced €145m 2024 sales ~95% locally produced Sales of Destinatio
Slide 21: Acquisitions in 2024: An opportunity for consolidation in a dynamic market
Acquisitions in 2024: An opportunity for consolidation in a dynamic market • Graphite consolidation (downstream) • Annual sales: ~40M USD • Consolidation from July 1st 2024 AVERAGE • Expertise in cooling and consolidation of other Mersen expertise at a single site ACQUISITION MULTIPLE: • Annual sale
Slide 22: Solar energy: Sustained growth in installed capacity
Solar energy: Sustained growth in installed capacity to stimulate energy storage and transportation markets Annual installations in GW 1400 1270 1190 1200 1070 Actual 2024: beyond expectations, 1000 with strong growth in China 930 790 800 680 560 600 400 810 840 840 750 610 660 200 440 170 228 99 10
Slide 23: Renewable energies: Untapped medium- to long-term potential
Renewable energies: Untapped medium- to long-term potential 2024 2025 2029 Horizon Sales €142m Trend: downward Sales > €200m Solar Materials Materials Sharp slowdown in the 2nd half-year, Solar: Anticipated decline Leverage our industrial capabilities due to very high inventory levels in in 1st half
Slide 24: Electric vehicles' market growth strongly linked to China
Electric vehicles’s market growth strongly linked to China; For Mersen, the accessible market remains important BEV and PHEV production in millions Forecasts for 2026 onwards are still to be confirmed 50 45 2024: higher than 40 estimated in China, lower in the rest of the 35 21.5 Chinese market worl
Slide 25: A 3-year delay in the EV market, but positive outlook beyond
A 3-year delay in the EV market, but positive outlook beyond this time horizon 2024 2025 2029 Horizon Sales €30m Trend: Sales ~ €100m moderate growth Strong growth in sales compared with Continued deliveries to ACC Accessible market outside China 2023, mainly fuses (small series). Acceleration expec
Slide 26: High inventory levels impacting SiC market growth rates
High inventory levels impacting SiC market growth rates SiC power wafer market in $m 3000 Initial scenario 2500 Updated 2000 Mersen scenario 1500 1000 500 0 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Source : Annual growth Yole Power SiC Coupound semiconductor +40% +46% +72% +6
Slide 27: SiC semiconductors: A 3-year delay compared with the original plan
SiC semiconductors: A 3-year delay compared with the original plan 2024 2025 2029 Horizon Sales €100m Trend: downward Sales > €220m Potential mainly linked to the EV market Lower-than-expected growth Decrease in 2025 (cf. 3-year delay in Mersen SiC market and customer inventories) Strategy: Slower g
Slide 28: Silicon semiconductor market outlook boosted by AI and data centers
Silicon semiconductor market outlook boosted by AI and data centers Global semiconductor market in $ bn 1200 ~ 1000 est. 1000 Growth strongly linked to 800 720 data centers and 640 high-speed +18% 600 540 computing (AI) 400 HBM (High Bandwith Memory): CAGR > 50% 200 0 2023 2024 2025e 2026e 2027e 202
Slide 29: Resilient medium-term potential for the silicon semiconductor market
Resilient medium-term potential for the silicon semiconductor market 2024 2025 2029 Horizon Sales €58m Trend: growth Sales > €100m Inventory-related decline in 2024, Recovery at the end of 2024, Considerable demand for high-speed with a recovery at the end of the continuing into 2025 computing (AI)
Slide 30: A strategy based on sustainability issues
A strategy based on sustainability issues Reducing carbon Adapting to climate Human capital Continuing our policy footprint change development of local presence Pursue the competitiveness and Contribute to the Continue to develop performance program by development of Prioritize geographic solutions
Slide 31: 2025 outlook
2025 outlook Sales Profitability Industrial capex Reported sales stable to EBITDA margin between €160-170m of which €15m positive on the basis of a 16% and 16.5% carried forward from 2024 EUR/USD exchange rate of (includes normative capex 1.05 and EUR/RMB of 7.65 and growth capex) Operating margin b
Slide 32: First Quarter 2025 Sales
First Quarter 2025 Sales: Solar impacts growth in Asia, SiC semiconductors impacts growth in North America Q1 2025 sales €103m Organic growth -1.4% €305m Organic growth Europe North America -6.4% Reported growth €128m Asia-Pacific -2.5% Organic growth €62m South America Organic growth -4.9% Africa -
Slide 33: Medium-term plan 2029
Medium-term plan 2029 Around SALES € 1,700 m 2029 OPERATING MARGIN CURRENT EBITDA ROCE BEFORE NON-RECURRING MARGIN ITEMS 13% ± 50 pts 12% ± 50 pts 19% ± 50 pts of sales of sales 33 Annual General Meeting – May 16, 2025
Slide 34: Reports by the Statutory Auditors
03 Reports by the Statutory Auditors
Slide 35: Corporate Governance Report
04 Corporate Governance Olivier Legrain Chairman of the Report Board of Directors
Slide 36: Composition of the Board
Composition of the Board *: independent 36 Annual General Meeting – May 16, 2025
Slide 37: Group Executive Committee
Group Executive Committee 37 Annual General Meeting – May 16, 2025
Slide 38: Compensation for 2024
Compensation for 2024 Luc Themelin, Chief Executive Officer 2024 Comments Fixed compensation 500,000 Unchanged from 2023 Annual variable compensation 359,050 53.7% of max for operating margin before non-recurring items 150% of max for cash-flow target 38.5% of max for EBITDA target 60% of extra-fina
Slide 39: Proposed compensation policy for 2025
Proposed compensation policy for 2025 Chairman of the Board of Directors • Fixed compensation (€120,000), unchanged from 2024 Members of the Board of Directors • Maximum ceiling (€330,000) unchanged from 2024 Chief Executive Officer • Fixed compensation (€500,000), unchanged from 2024 • Annual varia
Slide 40: Main work performed by the Board of Directors in 2024
Main work performed by the Board of Directors in 2024 9 meetings in 2024 with 98% attendance Strategy and development: strategic plans, budget, acquisitions, SiC and EV markets, review of medium-term roadmap CSR policy: CSR performance, sustainability reporting, CSR governance, HR roadmap Group resu
Slide 41: Main work performed by the Governance, Appointments and Remuneration Committee in 2024
Main work performed by the Governance, Appointments and Remuneration Committee in 2024 4 meetings in 2024 with 100% attendance Compensation: 2024 compensation and 2025 proposals, LTI plans Governance: Assessment of the Board of Directors, Review of director’s expertise, Review of the Corporate Gover
Slide 42: Main work performed by the Audit and Accounts Committee in 2024
Main work performed by the Audit and Accounts Committee in 2024 6 meetings in 2024 with 100% attendance Results: review of financial statements and reporting process Universal Registration Document Financing CSRD: governance, double materiality matrix Risk mapping (including environment, compliance
Slide 43: Share grants
Share grants 3 plans for 3 types of beneficiaries 1. Executives (including the Chief Executive Officer) - 129,360 shares for 15 beneficiaries 2. Managers - 119,520 shares for around 200 beneficiaries 3. Experts and Talents - 16,800 shares for around 50 beneficiaries Common principles Duration: 3 yea
Slide 44: Amendment of the Articles of Association
Amendment of the Articles of Association 3 amendments Possibility of renewing the appointment of a director for a one-year term Raising of the age limit applicable to directors to 75 Consultation of directors in writing for Board deliberations 44 Annual General Meeting - May 16, 2025
Slide 45: Questions
QUESTIONS