Mersen Sa · EURONEXT:MRN
Mersen Sa — H1 2025 Earnings Presentation
21 slides from Mersen Sa's earnings presentation, Jul 31, 2025
Slide 1: First-Half 2025 Results
First-Half 2025 Results July 31, 2025 Luc Themelin Thomas Baumgartner CEO CFO
Slide 2: First half in line with full-year guidance
First half in line with full-year guidance Sales Profitability Financial structure €610m EBITDA margin: 16 % Current operating Leverage ratio: 2.2x -2.2% vs 2024 margin: 9.5% FY guidance -4.0% organic Net debt virtually confirmed Strong margin unchanged Improvement in control compared to end of busi
Slide 3: Our markets
01 Our Luc Themelin CEO markets
Slide 4: Good performance in North America
Good performance in North America Sales by region H1 2025 Europe 33% €203m Organic growth -2.0% North America 42.5% Asia-Pacific €258m 21 % Organic growth + 0.3% €128m Organic growth South America - 15.7% Africa 3.5% €21m Organic growth Organic growth vs H1 2024 + 15.2% 4 Mersen – H1 2025
Slide 5: Solid dynamic in transportation markets; decrease in SiC semiconductors and solar
Solid dynamic in transportation markets Decrease, as expected, in SiC semiconductors and solar 9% CHEMICALS ++ 35% 16.5% PROCESS INDUSTRIES TRANSPORTATION - ++ €610m -4%* 18.5% ENERGIES 21% - ELECTRONICS Organic growth H1 2025 vs. H1 2024 -- ++ +5% ; +10% + + 0% ; +5% - -5% ; 0% - - -15% ; -5% *Esti
Slide 6: Improvement in business trends in the second quarter
Improvement in business trends in the second quarter Organic growth of sales Positive impact of contract renegotiations Q1 Q2 H1 for SiC semiconductors Electrical distribution momentum in the - 1.4% United States On-going projects in power electronics, rail, - 4.0% and aerospace - 6.4% Sequential or
Slide 7: Development of HVDC line projects worldwide
Development of HVDC line projects worldwide HVDC High-Voltage Direct Current Power electronics technology for long-distance electricity transmission AC or DC Electricity Generation Power conversion stations market More than USD15bn by 2030 CAGR: 4.8% between 2025 and 2030* Mersen Cooling devices, bu
Slide 8: Rail market in India: a new product for a market being modernized
Rail market in India: a new product for a market currently being modernized Rail market in India Strong growth in electrification Development of rail freight Mersen Development of a new product adapted to market’s needs Pantograph HRP (High Reach Pantograph) Pantograph Several contracts for more tha
Slide 9: Recognized expertise to support civil and defense aerospace evolution
Recognized expertise to support the evolution of the civil and defense aerospace industry Aeronautics market CAGR: 6 % by 2033* Mersen €65m in 2024 CAGR +15% since 2021 Expected growth in 2025 ~+10% * source: Business Research Insights – Aerospace and Defense market 9 Mersen – H1 2025
Slide 10: Market trends for the second half
Market trends for the second half Energy Electronics Transportation Chemicals Process Industries Slight rebound Si Semiconductor Ongoing positive Expected to In line with expectd in solar market growing trends in rail and decline on a full- macroeconomics in H2 SiC semiconductors: H2 aeronautics yea
Slide 11: First-Half 2025 financial results
02 First-Half 2025 financial results Thomas Baumgartner CFO
Slide 12: Sustaining a strong EBITDA margin
Sustaining a strong EBITDA margin en millions d’€ H1 2024 H1 2025 EBITDA before non-recurring items 105.5 97.8 Recurring EBITDA margin 16.9% 16.0% Depreciation and amortization (35.4) (40.0) Operating income before non-recurring items 70.1 57.8 Operating margin before non-recurring items 11.2% 9.5%
Slide 13: Adaptation plan and productivity measures helped protect our margins
Adaptation plan and productivity measures helped protect our margins in % points H1 2024 Operating margin before non-recurring items 11.2% Volume/mix effect -2.6 Adaptation Plan +1.6 High-tech customized products with Price Effect +1.1 limited cost versus total cost Raw material/energy Inflation -0.
Slide 14: Benefits from our cost and cash optimization measures
Benefits from our cost and cash optimization measures Structural optimization Reinforced action plan on and adaptation measures inventory management accelerated at the end of 2024 Inventory reduction Gain - €32m* €10m for H1 2025 since the beginning of the plan * At constant perimeter and exchange r
Slide 15: Improvement in Electrical Power segment; Advanced Materials impacted by volume
Improvement in Electrical Power segment Profitability of the Advanced Materials segment impacted by volume Current EBITDA €m Electrical Power 90 22.2% Higher profitability thanks to price increases and adaptation plan 80 Current Operating result: 34,8M€ 19.0% 70 Current Operating Margin: 12.1% 60 15
Slide 16: Resilient net income
Resilient net income €m H1 2024 H1 2025 2025 Operating income before non-recurring items 70.1 57.8 Non-recurring income and expenses (5.4) (4.9) Adaptation plan, litigation Net financial expense (10.3) (13.5) Increase in average gross debt Income tax (13.0) (9.9) Effective tax rate: 25% Net income 4
Slide 17: Growth of over 40% in operating cash flow
Growth of over 40% in operating cash flow €m H1 2024 H1 2025 Operating cash flow before change in WCR 101.3 93,1 WCR ratio: 19.2 % Change in WCR (40.5) (7.5) (vs 21.8 % at June 30, 2024) o/w change in inventories (22.3) 10.8 Income tax paid (6.3) (6.9) Operating cash flow 54.5 78.7 17 Mersen – H1 20
Slide 18: Net debt virtually unchanged including adaptation plan costs and capex
Net debt virtually unchanged that includes adaptation plan costs and still significant capex Net debt €m 370 11 13 380 71 -6 LEVERAGE : 2.2x (1.8x at Dec 31, 2024) -79 Does not include lease liabilities €58m (vs. €64m as at Dec 31, 2024) and pension obligations €31m (vs. €32m as at Dec 31, 2024) Ope
Slide 19: Strong liquidity strengthened to cover medium-term repayments
Strong liquidity strengthened to cover medium-term repayments Situation as of June 30, 2025 (Credit lines drawn in €m) AVAILABLE LIQUIDITY ~ €320m (undrawn Group syndicated loan) New fundings USPP 2025 ~ €162m Cash 121 100 Maturity* 90 4.9 ans 85 Fixed rate ~ 71 % 51 Of gross debt 42 23 21 * Average
Slide 20: 2025 guidance confirmed
2025 guidance confirmed Sales Profitability Industrial capex Reported sales stable to EBITDA margin between €160-170m positive on the basis of a 16% and 16.5% EUR/USD exchange rate of includes normative capex 1.05 and EUR/RMB of 7.65 and growth capex Operating margin before non- recurring items betw
Slide 21: Questions
QUESTIONS