Slide 1: Transforming for sustainable growth
26 JUNE 2024 Transforming for sustainable growth Accsys Preliminary Results for the year ended 31 March 2024 © ACCSYS 2024
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 No representation or warranty, express or implied, is made or given by or on behalf of Ac
Slide 3: Agenda
AGENDA 01 02 03 04 Highlights Financial Operational Strategy Review highlights & Outlook © ACCSYS 2024 3
Slide 4: Highlights
01 Highlights Dr Jelena Arsic van Os Chief Executive Officer © ACCSYS 2024 4
Slide 5: Transforming for sustainable growth
HIGHLIGHTS Transforming for sustainable growth FY24: FY25: FY25+: Re-focus Transform Grow Accsys FOCUS strategy launch Leverage growth platform Solid performance of underlying business Kingsport delivery - c43,000m3 production capacity Low CAPEX expansion of Accoya, Accoya Color and Successful fund
Slide 6: Transforming Accsys for all stakeholders
EARNING THE RIGHT TO GROW Transforming Accsys for all stakeholders © ACCSYS 2024 6
Slide 7: Financial Review
02 Financial Review Hans Pauli Interim Chief Financial Officer © ACCSYS 2024 7
Slide 8: Financial Overview
OVERVIEW Financial Revenue Sales volume Gross margin €136.2m 56,568m³ 30% (€162.0m FY23) (63,344m³ FY23) (34% FY23) Adjusted EBITDA¹ Free Cash flow2 Net Debt €4.8m €3.7m €37.1m (€22.9m FY23) ((€13.6m) FY23) (€44.1m FY23) 1 Adjusted EBITDA is defined as Operating profit/(loss) before Exceptional item
Slide 9: Financial Summary
FINANCIAL OVERVIEW Soft FY24 financial performance which is not reflective of Accsys’ potential Chang e FY24 FY23 € millio n % Gr oup Re ve nue 136.2 162.0 (16% ) FINANCIAL S UMMARY Gr os s Pr ofit 4 0 .9 55.2 (26% ) 1 Und e r lying op e r at ing cos t s (32.3) (31.6) (2% ) US JV EBITDA (3.7) (0 .7)
Slide 10: Five-Year Revenue and Gross Margin Performance
FIVE-YEAR REVENUE AND GROSS MARGIN PERFORMANCE Group revenue FY20-FY24 Underlying EBITDA (excl Projects) & Gross Margin FY20- FY24 2,265 2,177 1,761 1,507 1,432 162.0 136.2 120.9 90.9 99.8 FY20 FY21 FY22 FY23 FY24 Revenue Average Sales Price € million Underlying EBITDA (excluding projects) is calcul
Slide 11: Accoya FY24 Performance
ACCOYA FY24 PERFORMANCE Macroeconomic conditions and high customer inventory at the beginning of FY24 impacted demand FY24 Growth Revenue €123.1m (14%) Strong pricing discipline maintained Sales volumes 56,568m3 (11%) Wood revenues down 14% to €123.1m, driven primarily by lower sales volumes in a ch
Slide 12: Accoya for Tricoya FY24 Performance
ACCOYA FOR TRICOYA FY24 PERFORMANCE 14% growth in sales volumes of Accoya for Tricoya, reinforces our belief in the long-term market potential of Tricoya panel products. FY24 Growth Revenue €23.9m +13% Revenues from Accoya for Tricoya represent 31% of total Group sales volumes Sales volumes 17,347m3
Slide 13: EBITDA Segmental Breakdown in FY24
EBITDA SEGMENTAL BREAKDOWN IN FY24 Group Adjusted EBITDA (€ million) Continued strong operational performance from the Accoya segment (excl. Accoya USA and Tricoya) Accoya USA – represents pre-operating costs as project progresses to commercial start-up Tricoya EBITDA reflects its pre-operating posi
Slide 14: EBITDA Progression in FY24
EBITDA PROGRESION IN FY24 Group adjusted EBITDA (€ million) Sales price variance – prior year sales pricing included Energy pricing premium of €3.9m, not Revenue Cost of sales Other operating costs required in FY24 11% decrease in sales volumes, impacted by a challenging macroeconomic trading enviro
Slide 15: Net Debt Bridge
NET DEBT BRIDGE Net Debt (€ million) Net debt reduced by €7m year on year Accoya segment – continued strong cash generation, although lower than prior year Tricoya EBITDA reflects its pre-operating position Working capital increase due to a decrease in payables partially offset by €4.2m decrease in
Slide 16: Operational highlights
03 Operational highlights Dr Jelena Arsic van Os Chief Executive Officer © ACCSYS 2024 16
Slide 17: Project Highlights
PROJECT HIGHLIGHTS Caernarfon Google HQ, Lidl Zero, NL Clichy Black, Bow Bridge, Castle, Wales England France USA UNESCO World Heritage Site London Kings Cross. CO₂ neutral supermarket in Low carbon office building in Historic New York Central Park “Landscraper” opening 2025 Almere, NL Paris Bridge
Slide 18: Accoya USA
HIGHLIGHTS Accoya USA Construction completed and commissioning well underway JV 60:40 with Eastman. Construction completed 43,000m3 additional capacity – with ramp up over next three years Site includes space for six additional reactors First production test batches anticipated in coming weeks © ACC
Slide 19: Arnhem, Barry and Hull
STRATEGIC PROJECTS Arnhem, Barry and Hull Arnhem: Establishing a mature manufacturing centre of excellence Launch of Solid Roots programme Focus on reliability and improvement measures, including cost conversion, OEE Production capacity of 80,000 m3 Barry: Accoya Color demand on raise, double digit
Slide 20: Transformation programme and push for operational excellence
HIGHLIGHTS Transformation programme and push for operational excellence Sales and Solid Roots – Organisational marketing Arnhem design reset initiatives Professionalization of commercial organization Journey to zero €3m+ annualised cost savings Seven new global distribution partners, three new New K
Slide 21: Strategy & Outlook
03 Strategy & Outlook Jelena Arsic van Os Chief Executive Officer © ACCSYS 2024 21
Slide 22: Changing wood to change the world
ATTRACTIVE FUNDAMENTALS Changing wood to change the world 1 2 3 4 Significant market World-leading products Diversified routes Drive operational excellence opportunity & technology to global markets through FOCUS © ACCSYS 2024 22
Slide 23: Significant Market Opportunity
SIGNIFICANT MARKET OPPORTUNITY Global wood products Accoya production Demand drivers market size* capacity availability to fulfil market demand $805b 2024 FY22 – 60,000m3 Product performance $1,054b 2028 FY24 - 80,000m3 Global economic growth FY25+– c120,000m3 Megatrends e.g. Net zero *The global wo
Slide 24: Industry leading products
UNIQUE TECHNOLOGY Industry leading products Sustainable World leading Protected IP Produced from fast-growing, FSC® Our world-leading process and We have extensive know-how and (CO12330) certified wood sources. technology is unique. over 330 patents covering 27 Locks away carbon for longer. distinct
Slide 25: Drive demand creation to maximise enhanced global reach
DIVERSIFIED ROUTES TO GLOBAL MARKETS Drive demand creation to maximise enhanced global reach New distributors in FY24 © ACCSYS 2024 25
Slide 26: FOCUS: Driving performance and operational excellence
EARNING THE RIGHT TO GROW FOCUS: Driving performance and operational excellence Performance Asset reliability and Diversified Capital culture cost efficiency supply chain efficiency Safety: Journey to zero Create mature Diversify sourcing Optimize working capital manufacturing facility at Arnhem to
Slide 27: Operational and growth targets
OPERATIONAL TARGETS Clear set of operational and growth targets to provide clear drivers to shareholder value FY25 operational targets Growth aspirations 1. Kingsport commercially operational by end of the summer 1. Target Arnhem refill capacity, post Kingsport migration, double digit % underlying v
Slide 28: Outlook and Priorities FY25
OUTLOOK AND PRIORITIES FY25 OUTLOOK PRIORITIES • Good start to FY25 in line with expectations • Resolution on Hull • Transformation program delivery • Kingsport ramp up and group volume growth • Volume growth • Transitional year for Arnhem – target capacity refill post Kingsport migration, an underl
Slide 29: Q&A
Q&A © ACCSYS 2024 29