Zotefoams Plc · LSE:ZTF
Zotefoams — FY2024 Earnings Presentation
26 slides from Zotefoams's earnings presentation, Mar 24, 2025
Slide 1: 2024 Preliminary Results
2024 PRELIMINARY RESULTS 24 MARCH 2025 Ronan Cox, Group CEO Gary McGrath, Group CFO
Slide 2: Disclaimer
2 DISCLAIMER No representation or warranty, expressed or implied, is made or given by or on behalf of Zotefoams plc (“Zotefoams”, the “Company” or the “Group”) or any of its Directors or any other person as to the accuracy, completeness or fairness of the information contained in this presentation a
Slide 3: Business Performance
3 Business Performance Ronan Cox Group CEO 2024 Preliminary Results | Zotefoams plc
Slide 4: Results Headlines
4 RECORD PERFORMANCE IN REVENUE & PROFIT* Results Headlines £ £ Record Sales Performance Record Earnings* Strong Balance Sheet Group Revenue Record Operating Profit* Net Debt ▪ Up 16% to £147.8m ▪ Up 20% to £18.1m ▪ Down 20% to £24.1m (2023: £127.0m) (excl. leases) Basic EPS* High-Performance Produc
Slide 5: Key Messages: High Performance Products and Polyolefin Foams
5 HIGH PERFORMANCE REVENUE SPLIT BY PRODUCT 1% POLYOLEFIN REVENUE SPLIT BY PRODUCT PRODUCTS 9% FOAMS Continental Europe 6% Footwear 7% T-FIT Insulation UK 35% 42% ZOTEK F £79.6m USA £66.9m ZOTEK N ROW 83% REVENUE REVENUE 17% £m FY 2024 FY 2023 Change £m FY 2024 FY 2023 Change Revenue 79.6 58.1 +37%
Slide 6: Key Messages – Investment paused
6 MEL Key Messages Decision made in December 2024 to pause investment – Investment paused following a comprehensive strategic review. – IP retained ▪ Unable to identify a strategic investing partner ▪ IP and know-how remains well protected ▪ Preserving future value 1% of revenue, as we pivoted fully
Slide 7: Key Financials
7 Key Financials Gary McGrath Group CFO 2024 Preliminary Results | Zotefoams plc
Slide 8: Key Financials: Record Group revenue
8 FY24 KEY FINANCIALS 1 Group Revenue Gross Margin Record £147.8m 31.2% Group revenue Up 16% Down 110bps 2023: £127m 2023: 32.3% Operating Profit 2 PBT 2 EPS2 Record £18.1m £15.3m 25.95p underlying Up 20% Up 19% Up 37% profits 2023: £15.1m 2023: £12.8m 2023: 19.00p Exceptional Item PBT LPS £15.2m (a
Slide 9: Key Financials: Cash, Capex and Net Debt
9 FY24 KEY FINANCIALS Cash Generated From Capital Expenditure Working Capital Operations Movement Strong cash £30.4m £2.5m generation £13.6m reduces debt Up 2.5x Up 60% - and leverage 2023: £12.1m 2023: £8.45m 2023: £(11.1)m ROCE Net Debt1 Leverage Final dividend 11.7% £24.1m 0.9x up 4% to 5.10p Up
Slide 10: Key Financials: Capital Expenditure
10 FY24 KEY FINANCIALS Key Messages – 69% of capex directed to £m growth opportunities ReZorce LP2 OTHER TOTAL 2024 2023 – Maintenance capital significantly below Intangible 3.2 Intangible - Intangible 0.1 Intangible 3.3 2.7 depreciation charge Tangible 1.3 Tangible 3.9 Tangible 5.1 Tangible 10.3 5.
Slide 11: Movement in Net Debt
11 FY24 KEY FINANCIALS Key Messages MOVEMENT IN NET DEBT DURING THE PERIOD – Strong cash generation £m – Net working capital inflow 2.6 33.0 of £2.5m (2023: £11.1m 31.6 (1.4) 30.2 (13.9) 6.3 outflow) – Ex finance leases, net debt 1.3 1.0 24.1 is down £6.1m to £24.1m in 2.2 (0.2) the period 3.5 – Lev
Slide 12: Strategy Overview
12 Strategy Overview Ronan Cox Group CEO 2024 Preliminary Results | Zotefoams plc
Slide 13: Strategy Overview
13 STRATEGY OVERVIEW Delivering optimal solutions Health & Safety Underpinned by Zotefoams’ values and with health & safety at the forefront of all that we do, our business model will guide us towards realising long-term vision and ensure we continue to fulfil Zotefoams' purpose KEY FINANCIALS Organ
Slide 14: Zotefoams' Ambition
14 ZOTEFOAMS’ AMBITION… > £300m > £60m Revenue Operating Profit 2024 Preliminary Results | Zotefoams plc
Slide 15: £15 billion Addressable Market
15 ADDRESSABLE FOAM MARKET OPPORTUNITY Current core business focuses on a portion of the £4 billion Acquisition polyolefin foam market with some participation in select high- £0.8 billion strategy to open 1 Addressable performance engineered polymer1 foam applications Market addressable markets. Zot
Slide 16: Market Focus
16 MARKET FOCUS Sponsored extensive market mapping study1 endorsing Transport & Smart Technologies strategic direction Serving automotive, aviation, medical, and high-tech industries requiring advanced material Zotefoams will position for high value markets and end Understanding regulatory framework
Slide 17: Expanding Capabilities in Region
17 EXPANDING CAPABILITIES IN REGION UK Innovation Centre Zotefoams plc Croydon UK Foam manufacture Zotefoams Inc Walton, KY, USA South Korea Foam manufacture Footwear Innovation Centre Capacity & capability investment Zotefoams Midwest Vietnam Tulsa, OK, USA Ho Chi Minh City Foam-cutting Footwear ma
Slide 18: What We Do With Nike
18 WHAT WE DO WITH NIKE Innovative mid-sole foams for world-beating shoes. First focus with Nike was on Broadened to Premium running and Training Extended medal and world records pinnacle marathon shoes: Shoes; bringing ZoomX to a wider audience: in Track & Field: VAPORFLY STREAKFLY ZOOMFLY DRAGONFL
Slide 19: Innovation Video
19 Introduction Section one Section two Section three Section four Section five Financials & Outlook Sustainable Innovation INNOVATION VIDEO 18/03/2025 Capital Markets Day 2025 | Zotefoams
Slide 20: Innovation Model
20 INNOVATION MODEL Zotefoams will adopt a “hub and Footwear Innovation spoke” model for innovation Centre (Asia) – Innovation Centre of Excellence: ▪ Deep understanding of technologies Industry Innovation Industry – Smaller Industry Innovation Centres: Innovation Centre of Innovation Centre Centre
Slide 21: Summary & Outlook
21 Summary & Outlook 2024 Preliminary Results | Zotefoams plc
Slide 22: FY24 Summary
22 FY24 SUMMARY Record 2024 Performance HPP Polyolefin Foams ▪ Revenue up 16% to £147.8m ▪ Sales surpass Polyolefin Foams ▪ UK and EMEA relatively flat with for first time demand challenges in Europe ▪ Profit before tax* up 19% to £15.3m ▪ Footwear a driver of growth ▪ US affected by temporary suppl
Slide 23: Full Year Outlook
23 FULL YEAR OUTLOOK Positive start to 2025 Consumer & Lifestyle and Transport & Smart Technologies Investment in manufacturing excellence ▪ Verticals performing well across all regions ▪ US capacity expansion running to plan Construction & Other Industrial Diversified Manufacturing and R&D Footprin
Slide 24: Q&A
24 Q&A 2024 Preliminary Results | Zotefoams plc
Slide 25: Appendix
25 Appendix 2024 Preliminary Results | Zotefoams plc
Slide 26: Our Market Verticals & Typical Applications
26 OUR MARKET VERTICALS & TYPICAL APPLICATIONS Consumer Transport Construction & Lifestyle & Smart Technologies & Other Industrial Sports & Leisure Transport Building & Construction ▪ Impact protection padding ▪ Aircraft seats and seals ▪ Roof and wall insulation ▪ Life jackets, swim floats, paddle