Slide 1: Robust progress driven by self-help, with momentum building
Robust progress driven by self-help, with momentum building Synthomer plc | 2024 full year results Tuesday 11 March 2025 Synthomer plc 2024 full year results 1
Slide 2: Important notice
Important notice This presentation is being provided to you in good faith and solely contained therein have been obtained from sources believed to profit forecast or estimate for any period. Recipients of these for your information purposes, speaking as of the date hereof, be reliable, but that ther
Slide 3: Agenda
AGENDA 01 Overview – Michael Willome 02 Financial review – Lily Liu 03 Strategic progress – Michael Willome 04 Outlook and summary – Michael Willome 05 Q&A Synthomer plc 2024 full year results 3
Slide 4: Robust progress driven by self-help, with momentum building
Robust progress driven by self-help, with momentum building FY 2024 in line with expectations Speciality strategy gaining momentum • Robust revenue, EBITDA, EBIT and underlying EPS improvement • Manufacturing site rationalisation continues – now 31 sites (from 43) • 8.4% volume growth, despite mixed
Slide 5: Agenda
AGENDA 01 Overview – Michael Willome 02 Financial review – Lily Liu 03 Strategic progress – Michael Willome 04 Outlook and summary – Michael Willome 05 Q&A Synthomer plc 2024 full year results 5
Slide 6: Group financial summary
Group financial summary 2024 in line with expectations with robust revenue, EBITDA and EPS improvement • Revenue +5.1% in CC to £1,986.8m Underlying Continuing business – Group volume +8.4%, mainly AS and H&P recovery from historic lows % % – Activity levels and capacity utilisation improving, but s
Slide 7: Coatings & Construction Solutions (CCS)
Coatings & Construction Solutions (CCS) Share of higher operating costs limit scope for outperformance in mixed markets • FY divisional trading Underlying – Revenue (1.0)% in CC; +2.4% volume offset by raw material pricing FY % FY % pass-through £m FY 24 FY 23 change change CC – Gross margins increa
Slide 8: Adhesive Solutions (AS)
Adhesive Solutions (AS) Step-change in financial results driven by our performance improvement programme • FY divisional trading Underlying – Revenue +4.0% in CC, with +9.0% volume driven by regaining lost FY % FY % market share through improved reliability £m FY 24 FY 23 change change CC – Speciali
Slide 9: Health & Protection and Performance Materials (HPPM)
Health & Protection and Performance Materials (HPPM) Volumes for glove market recovering, unit margins still challenging • FY divisional trading Underlying Continuing business* – Revenue +15.6% in CC, principally reflecting 14.1% volume recovery FY % FY % £m FY 24 FY 23 change change CC – EBITDA +40
Slide 10: Cash flow
Cash flow After the non-recurring outflows in 2024, positive Free Cash Flow and deleveraging in 2025 • Self-help/cost savings supporting EBITDA growth Free cash flow and net debt – Targeting £25-30m benefits in FY 25 from self-help and strategy, including AS and £m FY 24 FY 23 Group procurement prog
Slide 11: Balance sheet and liquidity
Balance sheet and liquidity Stable financial position to support delivery of strategy and earnings recovery • Bond refinancing Net debt (£m) – Tendered and cancelled €370m of 3.875% bonds due 2025; reduced gross Dec Dec Dec debt and extended maturities by issuing €350m of 7.375% bonds due 2029 Matur
Slide 12: Agenda
AGENDA 01 Stronger foundations – Michael Willome 02 Financial review – Lily Liu 03 Strategic progress – Michael Willome 04 Outlook and summary – Michael Willome 05 Q&A Synthomer plc 2024 full year results 12
Slide 13: Synthomer's focus, strengthen, grow strategy
Synthomer’s focus, strengthen, grow strategy Becoming a more focused, more resilient, higher quality business Synthomer is a speciality solutions platform for Coatings & Construction, Adhesives and Health & Protection market segments 01 02 03 04 05 Organic growth in Rigorous and Operational and Diff
Slide 14: Strategic direction
Strategic direction Increasing our specialisation, global position and efficiency Pre-new strategy Synthomer 2024 Future Synthomer Portfolio Increasing % revenue base Speciality Base Speciality Base Speciality Base speciality vs. speciality weighting ~50% ~50% ~55% ~45% ~70% ~30% Geography More bala
Slide 15: Coatings & Construction Solutions
Coatings & Construction Solutions Enhancing alignment of people, capital and strategy in our most speciality-focused division Our strategic opportunity Strategic priorities: Leading positions with solutions to enhance energy • Further alignment with strategic end markets efficiency, waterproofing –
Slide 16: Adhesive Solutions
Adhesive Solutions Foundations rebuilt; strategic focus shifting increasingly towards growth opportunities Our strategic opportunity Evolving strategic priorities: Leading positions in the US and EMEA supported by • Complete transformation in reliability and cost competitiveness global production ne
Slide 17: Health & Protection and Performance Materials
Health & Protection and Performance Materials Leveraging our strengths to optimise value creation Our strategic opportunity Strategic priorities: Market leader in £2bn+ NBR market – base chemicals • Supporting customers’ growth objectives globally characteristics with high underlying structural grow
Slide 18: Operational excellence
Operational excellence Continuous improvement in how we run our business is a key pillar of the strategy Procurement Synthomer Excellence (SynEx) SHE excellence • Centrally-managed ‘business excellence’ function launched in Oct 2022 • 9 black / 70 green belts today • Target to increase trained popul
Slide 19: Driving innovation and sustainability
Driving innovation and sustainability Customer-led approach underpins our future growth Our sustainability approach is commercially-led and aligned to innovation agenda • First sales of FSC-certified resin to a tyre customer • 8 sites ISCC+ certified to allow mass balanced-based product offerings us
Slide 20: Agenda
AGENDA 01 Overview – Michael Willome 02 Financial review – Lily Liu 03 Strategic progress – Michael Willome 04 Outlook and summary – Michael Willome 05 Q&A Synthomer plc 2024 full year results 20
Slide 21: Outlook
Outlook Current trading Expectations for 2025 • Trading since the start of 2025 in • Further earnings progress expected – further £25-30m in self-help and strategy benefits line with our expectations, which targeted in 2025, with less offsetting cost headwinds than in 2024: assumed a muted start com
Slide 22: Increasing operating leverage as end markets recover
Increasing operating leverage as end markets recover Earnings power more than double current levels in the medium term 2024 EBITDA (£m) c.£90m+ potential from broad-based end-market recovery + Further earnings growth from strategic delivery CCS 86 • Strategy outlined in October 2022 to increase CCS
Slide 23: Summary
Summary • 2024 trading in line, with robust revenue, EBITDA, EBIT and EPS progress, despite mixed markets • Activity levels and capacity utilisation are improving • Making EBITDA progress through cost and reliability self-help, as well as strategic shift to speciality products, disciplined capital a
Slide 24: Agenda
AGENDA 01 Overview – Michael Willome 02 Financial review – Lily Liu 03 Strategic progress – Michael Willome 04 Outlook and summary – Michael Willome 05 Q&A Synthomer plc 2024 full year results 24
Slide 25: Appendices
APPENDICES 01 Special items 02 Foreign exchange and pensions Synthomer plc 2024 full year results 25
Slide 26: FY 2024 special items
Appendix 1 FY 2024 special items Continuing operations • Amortisation of acquired intangibles reflects the amortisation on the customer lists, £m FY 24 FY 23 patents, trademarks and trade secrets arising on historic acquisitions Amortisation of acquired intangibles (45.1) (49.3) • Restructuring and
Slide 27: Foreign exchange and pensions
Appendix 2 Foreign exchange and pensions FX translation exposure – EBITDA impact Pensions FY 24 translation • Net retirement obligation decreased by £15.0m to £49.7m at 31 December Currency Movement sensitivity 2024, primarily driven by cash contributions partially offset by actuarial losses EUR € 0