Syensqo Sa/nv · EURONEXT:SYENS
Syensqo Sa/nv — Q3 2024 Earnings Presentation
25 slides from Syensqo Sa/nv's earnings presentation, Nov 5, 2024
Slide 1: Third Quarter 2024 Results
Dr. ILHAM KADRI Third Quarter Chief Executive Officer 2024 Results CHRISTOPHER DAVIS Chief Financial Officer November 5, 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 Third Quarter 2024 Review Third Quarter 2024 Financial Review 2024 Outlook 3
Slide 4: Third Quarter 2024 Review
THIRD QUARTER 2024 REVIEW Dr. ILHAM KADRI Chief Executive Officer
Slide 5: Third Quarter 2024 Group Highlights
Third Quarter 2024 Group Highlights NET GROSS ■ Return to volume and net sales growth, led by SALES PROFIT Composite Materials and Novecare € 1.63bn € 572mn ■ Robust gross margin performance, including -€12 +5% volumes 35.0% margin -4% pricing +90bps QoQ million of net pricing ■ EBITDA margin increa
Slide 6: Executing our growth strategy
Executing our growth strategy Syensqo Syensqo and Syensqo introduces Syensqo unveils introduces more General Motors' Riza, ambitious water sustainable Innovative Battery a new range of stewardship polymers on the Module Wins 2024 natural flavors and targets new Trek Madone Altair Enlighten antioxida
Slide 7: Third Quarter 2024 Segment Highlights
Third Quarter 2024 Segment Highlights CONSUMER & RESOURCES ■ Improved volume momentum with 12% YoY MATERIALS growth, led by Novecare & Technology Solutions ■ Strong YoY growth in Composite Materials; ■ Higher YoY and QoQ gross margin in Technology Defense & Civil Aviation up double digits Solutions
Slide 8: Third Quarter 2024 Financial Review
THIRD QUARTER 2024 FINANCIAL REVIEW CHRISTOPHER DAVIS Chief Financial Officer
Slide 9: Summary of 3rd quarter & 9 month 2024 Financial Results
Summary of 3rd quarter & 9 month 2024 Financial Results YoY YoY QoQ YoY YoY (€ million) Q3 2024 Q3 2023 Q2 2024 9M 2024 9M 2023 change organic change change organic Net sales 1,633 1,629 1,708 0.2% 1.6% -4.4% 4,965 5,257 -5.6% -4.1% Gross profit 572 592 582 -3.4% - -1.7% 1,737 1,890 -8.1% - Gross ma
Slide 10: Third quarter & YTD underlying EBITDA 2024
Third quarter & YTD underlying EBITDA 2024 Q3 2024 (€ million) Year to date 2024 (€ million) Q3 Scope FX Q3 2023 Volume Net Fixed Q3 2024 Q3 YtD Scope FX Q3 YtD Volume Net Fixed Q3 YtD 2023 (constant & mix pricing costs & 2023 2023 & mix pricing costs & 2024 scope & FX) Others (constant Others scope
Slide 11: Structural net pricing gains, in line with expectations
Structural net pricing gains, in line with expectations Consumer & Resources Materials Year-to-date net pricing impact of -€71 million ■ Flat YTD net pricing in Materials ■ Novecare net pricing impact offset by increased volumes to maximise value ■ ~€20 million of the reduction from Aroma and Oil &
Slide 12: Capital expenditure focused on value creation
Capital expenditure focused on value creation € million Corporate Growth capex[1] Consumer & Resources Sustenance capex[2] Sustenance capital driven by Materials ■ Planned maintenance in Q3 ■ Investments in new digital architecture Growth capital driven by ■ Tavaux expansion: PVDF (auto, oil & gas,
Slide 13: Strong cash conversion
Strong cash conversion € million Cash flow from operating activities Cash conversion [1] €167 million payment to the NJDEP in Q2 2024 Impact of €167 million payment to the NJDEP in Q2 2024 85% 81% 1,275 859 69% 692 FY 2023 LTM Q3 2024 FY 2023 LTM Q3 2024 [1] Cash conversion = (EBITDA +/- change in w
Slide 14: Strong financial position
Strong financial position Strong investment grade rating GEARING[2] S&P Underlying €1.7 bn Stable outlook 22% Net Debt undrawn committed € 2.4 bn BBB+ facilities Total cash & undrawn committed € 1.9 bn facilities NET DEBT MOODY’S €0.7 bn leverage ratio[3] Stable outlook [1] Cash 1.3X Baa1 [1] Cash +
Slide 15: Share buyback program
Share buyback program Successful completion of share purchase EUR 300 million share buyback program program ■ covers current and future obligations aligned with designed to to be executed under Syenqo’s current commitment to enhance capital in multiple Long Term Incentive create structure through tr
Slide 16: 2024 Outlook
2024 OUTLOOK Dr. ILHAM KADRI Chief Executive Officer
Slide 17: Updated FY 2024 Outlook
Updated FY 2024 Outlook Comments EBITDA [3] ● Year-on-year volume growth to continue in Q4 €1.4 - 1.44 bn ● Outlook reflects Q4 seasonality, the expected impact of the strike at Boeing and its related support chain disruption ● €50-100 million net pricing reduction remains unchanged ● Dissynergies (
Slide 18: is ae eae /
is ae eae /
Slide 19: Supplementary Information
SUPPLEMENTARY INFORMATION
Slide 20: Q3 & 9M 2024 Key figures
Q3 & 9M 2024 Key figures IFRS Underlying (€ million) Q3 2024 Q3 2023 % YoY Q3 2024 Q3 2023 % YoY YoY organic Net sales 1,633 1,629 0.2% 1,633 1,629 0.2% 1.6% EBITDA 352 414 -15.0% 374 418 -10.5% -7.9% EBITDA margin 21.6% 25.4% -390 bps 22.9% 25.7% -280 bps - EBIT 188 263 -28.3% 243 302 -19.4% - Net
Slide 21: Segment performance: Materials
Segment performance: Materials Strong YoY growth in Composite Materials with flat volumes Specialty Polymers; 200 basis points of QoQ EBITDA margin expansion Q3 2024 Q3 2023 Q2 2024 YoY change YoY change QoQ 9M 2024 9M 2023 YoY change YoY change Underlying (€ million) (€m) (€m) (€m) (%) (org %) chan
Slide 22: Segment performance: Consumer & Resources
Segment performance: Consumer & Resources 12% YoY volume growth & 6% YoY net sales growth, led by Novecare; 70 basis points of QoQ EBITDA margin expansion Q3 2024 Q3 2023 Q2 2024 YoY change YoY change QoQ change 9M 2024 9M 2023 YoY change YoY change Underlying (€ million) (€m) (€m) (€m) (%) (org %)
Slide 23: Third quarter 2024 underlying EBITDA to Free Cash Flow bridge
Third quarter 2024 underlying EBITDA to Free Cash Flow bridge € million Growth: -€117m Sustenance: -€94m Underlying Capex Change Change in Financing Taxes FCF to EBITDA in Working Provisions & Other shareholders Capital 23
Slide 24: Third quarter 2024 regional sales mix
Third quarter 2024 regional sales mix ASIA & AMERICAS EUROPE Rest of the World 40% of net sales 24 % 36% of net sales of net sales +12 bps +5 bps -17 bps YoY YoY YoY 36 14 12 industrial sites industrial sites industrial sites 4 5 3 major R&I centers major R&I centers major R&I centers 24
Slide 25: Investor Relations
INVESTOR RELATIONS IMPORTANT DATES ■ Feb 27, 2025: FY 2024 results Sherief Bakr ■ May 6, 2025: Annual General Meeting +44 7920 575 989 ■ May 15, 2025: Q1 2025 results ■ July 31, 2025: Q2 2025 results Bisser Alexandrov +33 607 635 280 ■ Nov 6, 2025: Q3 2025 results Loïc Flament INVESTOR CONFERENCES +