Slide 1: Interim Results Presentation
- Baja California Sur, Mexico INTERIM RESULTS PRESENTATION For the six months ended 30 September 2021 Accoya® bulkheads, cladding, handrails and window frames, Baja Club hotel, Mexico @ Accsys 2021
Slide 2: Disclaimer
DISCLAIMER NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION believe", “plan”, “seek”, “continue” or similar expressions identify forward-looking stat
Slide 3: Agenda
AGENDA 4 Results Overview 2 Financial Results 3 Business Review & Outlook = /\ accsys
Slide 4: Overview: H1 FY22 Results
OVERVIEW H1 FY22 RESULTS * Good financial performance SALES VOLUME 29,555m$ +12% — Strong revenue growth and customer demand — Operating at capacit REVENUE ee ee €56.2m +31% — Pricing & supply chain resilience GROSS PROFIT * Strategic expansion projects on track €17.2m +20% * Investing in organisati
Slide 5: Financial Results
Oregon, USA FINANCIAL RESULTS Will Rudge, Finance Director Accoya®cladding, College of Forestry at Oregon State University TH F— OEE © Acesys 2021
Slide 6: Financial Highlights
FINANCIAL HIGHLIGHTS HH FY22 HIEY21 Changevs Change vs € million H1FY21 H1 FY20 + Strong revenue growth, Accoya® sales volume (m°) 29,555 26,422 12% 5% production at capacity Underlying Group Revenue 56.2 429 31% 28% Underlying Gross Profit 17.2 143 20% 34% + Higher sales prices mitigating increased
Slide 7: • 15% • (0%) 28% • 13% (↑ 6%) (↑ 5%) • 20% 24%
• 15% • (0%) 28% • 13% (↑ 6%) (↑ 5%) • 20% 24% (↓7%) (↓4%) • •
Slide 8: EBITDA Progression
EBITDA PROGRESSION G derlying EBITDA Emilion) + Accoya® profit growth: 100 - Higher average selling prices, offset by higher raw material 90 costs 3.0 - Sales volumes up 12%, prior period impacted by COVID-19 70 | 10 | - Maintenance stop deferred to (1.7) H2 to tie in with Reactor 4 6.0 project 50 (
Slide 9: Profitability Progression
PROFITABILITY PROGRESSION 5 YEAR PERFORMANCE Group underlying EBITDA 2018-2022 Accoya® segment profitability 2018-2022 33.4% ‘ Accoya® segment € million underlying EBITDA* 30.0% (€ million) 31.0% Manufacturing 1.8% 7 margin (%) H2 58 H2 93 =H =H 45 5.6 Pn a Bhs) (8) 28 as . . _ EJ ene Pa FY20 FY21 H
Slide 10: Margin Progression
MARGIN PROGRESSION Higher sales pri gating rising input costs ACCOYA® MARGIN 2018 - 2022 SUPPLY CHAIN INFLUENCE €700 40.0% Margin benefits from long term supply arrangements and cost structure 35.0% 30.0% ea0o 250% * Net acetyls cost increased by approx. 26% (vs H1 FY21): 300 _ * Benefits from parti
Slide 11: Strong Cashflow Generation
STRONG CASHFLOW GENERATION Net Debt. (E million) 5.0 [----= Investing activities ----- i [----= Financing activities -----1 : | | 12! + Underlying Accoya® EBITDA up oo | | mene | §PRM 12% to €10.3m : | | | | | + Tricoya® EBITDA reflects its 50) | ey | | pre-operating position | . (10.0) | | | + €17.
Slide 12: Balance Sheet
BALANCE SHEET FINANCIAL POSITION TO DELIVER GROWTH Cash position to deliver Growth * Cash balance of €60.9m at 30 September 2021, to be invested in strategic growth projects: + Accoya® USA investment NET CASH * Tricoya® Hull plant completion €2.4m + Accoya® Arnhem expansion completion Capital raise
Slide 13: Financial Summary
FINANCIAL SUMMARY Good Accoya® performance and sales price development Active supply chain cost management Maintain long term gross margin expectations: — 30% Accoya® margin — 40% Tricoya® margin Financial position to deliver Growth Investment in people and organisation in FY22 = : /\ accsys
Slide 14: Business Review & Outlook
ACCSYS BUSINESS REVIEW & OUTLOOK Rob Harris, Chief Executive ~/N\ 1 ACCSYS © Acesys 2021 4
Slide 15: Overview
OVERVIEW CHANGING WOOD TO CHANGE THE WORLD 1 World-leading product & technology High performance, sustainable wood products, with world leading technology ap ] Significant market opportunity Currently ~2% penetration and increasing our share of our 2.6 million m® global achievable market and benefit
Slide 16: Extensive know-how and patents covering 27 distinct inventions
• • • • • • • • We have extensive know-how and 399 patents covering 27 distinct inventions in over 40 countries.
Slide 17: Our Market
OUR MARKET .. TO CHANGE THE WORLD Well-positioned for global megatrends . oy: Wey oe ©) Sustainability <Q Consumer priorities * Global action on sustainable development & climate change + — Shifting to higher quality, better performance + Regulatory pressures to reduce carbon + Smart buildings and i
Slide 18: Our Products
OUR PRODUCTS ACCOYA® & TRICOYA® IN THE MARKET © Acesys 2021 8
Slide 19: Our Strategy
OUR STRATEGY DRIVEN BY OUR PURPOSE Our Purpose Changing wood to change the world Our Ambitious Respect Values The world depends on us. Respect & value all stakeholders Our Strategy 1 | Grow product demand | 2 | Practise manufacturing excellence | 3 | Develop our technology Build organisational capab
Slide 20: H1 FY22 vs H1 FY21 Accoya KPIs
• • • • • • • 1. Accoya® sales volume H1 FY22 vs H1 FY21 2. Underlying Accoya EBITDA H1 FY22 vs H1 FY21 .
Slide 21: Accoya Strategic Development
accoya 0) ACCOYA® STRATEGIC DEVELOPMENT Adding 33% capacity at Arnhem + Fourth reactor addition on track for around end Q1 CY2022. + Reactor delivered in May ‘21. New wood-stacker to help site efficiency + Will increase production capacity to 80,000m3. Expect 3 year payback Accoya® Color + Acquisiti
Slide 22: Tricoya: H1 FY22 & Hull Project Status
TRICOYA® tricoya H1 FY22 & HULL PROJECT STATUS On track to commence operations by July 2022 + World-first Tricoya® plant being constructed at Hull, UK + Expect 3 year ramp up to full capacity; Targeting 40% gross margin and EBITDA breakeven at 40% capacity. Accsys taken over plant - work progressing
Slide 23: Building for Sustainable Growth
BUILDING FOR SUSTAINABLE GROWTH INVESTING IN ...... an cms People ut d Processes & ESG * 27% increase in average FTE headcount to Investing in equipment and systems to 241 people improve processes + Increased Group leadership roles and skills * Ensure we expand effectively in new locations to manage
Slide 24: Summary and Outlook
SUMMARY H1 FY22 results Outlook * Strong revenue growth while operating at * Key expansion projects progressing: Doubling of capacity capacity to 120,000m% by July 2022 + Benefitting from average price rises * Active supply chain management + Maintaining Accoya® margin at target level, + Remain conf
Slide 25: Appendix
APPENDIX Changing wood to change the world /\accsys
Slide 26: Segmental Summary
SEGMENTAL SUMMARY H1 FY22 Accoya® Tricoya® eg and Group Underlying EBITDA - H1 FY22 vs H1 FY21 corporate €m € million Underlying revenue 55.4 0.8 0.0 56.2 6 Underlying Gross profit 17.2 0.0 0.0 17.2 Underlying EBITDA 10.3 (1.7) (4.1) 45 5 ja | iz Underlying EBIT 8.0 (2.0) (4.5) 15 (0.5) 4 (0.4) . R&
Slide 27: Tricoya Consortium Structure
TRICOYA CONSORTIUM STRUCTURE The Tricoya® Consortium is based on two entities: Loan notes (repaid Oct 2¢ Oct 2021) * Tricoya Technologies Limited (“TTL’) will continue to benefit MEDITE | cos from all Tricoya® related intellectual property \ option 1.3% 8.5% 76: | * Tricoya UK Limited ("TUK") incorp
Slide 28: Significant Global Growth Opportunity
OUR MARKET SIGNIFICANT GLOBAL GROWTH OPPORTUNITY ALarge Achievable wel Global Market Market Focus Market ® — 60,466m3 Accoya® > 800 million m3 wood High performance (( sold in FY 2021 4 we ~90 Annual lumber and engineered materialisubstitution 2% of wood products. on “ne a ; 2.6+ million m? So yy ge
Slide 29: Tricoya Overview
TRICOYA® OVERVIEW World-first Tricoya® plant Tricoya® consortium established in 2017 + €75m plant costs incurred to date * 3year ramp up to full capacity; break-even at ~40% capacity High value product, Strong market opportunity + Market seeding: strong demand, limited production + Customer agreemen
Slide 30: EUR 31m equity raised in May 2021 to accelerate US market opportunity
• • • • • • • • • • • • EUR 31m Equity raised in May 2021 to accelerate US market opportunity
Slide 31: Our ESG Framework
OUR ESG FRAMEWORK Our 10 material issues are aligned with our purpose, values, business strategy and external frameworks such as the UN SDGS: Changing wood... ..to change the world Governance, management and advocacy Sustainable & quality products Responsible sourcing Energy & climate change Society
Slide 32: H1 FY22 vs H1 FY21
H1 FY22 vs H1 FY21 H1 FY22 vs H1 FY21 H1 FY22 vs H1 FY21