Synthomer Plc · LSE:SYNT
Synthomer — H1 2025 Earnings Presentation
26 slides from Synthomer's earnings presentation, Aug 5, 2025
Slide 1: Continued earnings growth in subdued markets
Continued earnings growth in subdued markets Synthomer plc | 2025 interim results Tuesday 5 August 2025 Synthomer plc 2025 interim results 1
Slide 2: Important notice
Important notice This presentation is being provided to you in good faith and solely contained therein have been obtained from sources believed to profit forecast or estimate for any period. Recipients of these for your information purposes, speaking as of the date hereof, be reliable, but that ther
Slide 3: Agenda
AGENDA 01 Overview – Michael Willome 02 Financial review – Lily Liu 03 Strategic progress – Michael Willome 04 Outlook and summary – Michael Willome 05 Q&A Synthomer plc 2025 interim results 3
Slide 4: Overview
Overview Additional steps to deliver portfolio Continued earnings growth in subdued markets transformation • Gross margin, EBITDA and EBITDA margin progress through • New £20-25m cost reduction programme launched in period, cost reduction, robust pricing and strategic delivery mainly relating to CCS
Slide 5: Agenda
AGENDA 01 Overview – Michael Willome 02 Financial review – Lily Liu 03 Strategic progress – Michael Willome 04 Outlook and summary – Michael Willome 05 Q&A Synthomer plc 2025 interim results 5
Slide 6: Group financial summary
Group financial summary EBITDA and margin improvement delivered in challenging market environment • Revenue (8.8)% in CC to £925.2m Underlying Continuing business – Group volume (7.1)% largely driven by end-market demand volatility H1 % H1 % following tariff changes since Q2 £m H1 25 H1 24 change ch
Slide 7: Coatings & Construction Solutions (CCS)
Coatings & Construction Solutions (CCS) Relatively stable apart from oil & gas drilling slowdown affecting high-margin energy solutions • H1 divisional trading Underlying – Volume (6.5)%, with energy solutions heavily affected vs strong H1 % H1 % performance in H1 24 and tariff effects on demand els
Slide 8: Adhesive Solutions (AS)
Adhesive Solutions (AS) Solid earnings progress from cost and competitiveness improvements in subdued markets • H1 divisional trading Underlying – Revenue (1.4)% in CC, broadly in line with subdued volumes in period, H1 % H1 % with customers responding cautiously to tariff announcements £m H1 25 H1
Slide 9: Health & Protection and Performance Materials (HPPM)
Health & Protection and Performance Materials (HPPM) Resilient performance – lower activity levels in period offset by cost focus and mix • H1 divisional trading Underlying Continuing business* – Revenue (11.6)% in CC, reflecting (10.2)% volume and pass-through H1 % H1 % of lower raw materials price
Slide 10: Cash flow
Cash flow Expect positive H2 to result in broadly neutral Free Cash Flow for FY 25 as a whole Free cash flow and net debt • Self-help/cost savings continue to support EBITDA growth £m H1 25 H1 24 FY 24 – £25-30m benefits in FY 25 from self-help and strategy, including existing Opening net debt (597.
Slide 11: Balance sheet and liquidity
Balance sheet and liquidity Focused on derisking and deleveraging the balance sheet • Core debt facilities Net debt (£m) – €150m stub 2025 bonds repaid immediately after period end from cash Dec Dec Dec Jun resources and £73m draw on RCF Maturity 2022 2023 2024 2025 – Net financing costs of £60-65m
Slide 12: Agenda
AGENDA 01 Stronger foundations – Michael Willome 02 Financial review – Lily Liu 03 Strategic progress – Michael Willome 04 Outlook and summary – Michael Willome 05 Q&A Synthomer plc 2025 interim results 12
Slide 13: Synthomer's focus, strengthen, grow strategy
Synthomer’s focus, strengthen, grow strategy Becoming a more focused, more resilient, higher quality business Synthomer is a speciality solutions platform for Coatings & Construction, Adhesives and Health & Protection market segments 01 02 03 04 05 Organic growth in Rigorous and Operational and Diff
Slide 14: Strategic direction
Strategic direction Increasing our specialisation, global position and efficiency Synthomer 2022 Synthomer H1 25 Future Synthomer Portfolio Increasing % revenue base Speciality Base Speciality Base Speciality Base speciality vs. speciality weighting ~50% ~50% ~55% ~45% ~70% ~30% Geography More balan
Slide 15: Coatings & Construction Solutions
Coatings & Construction Solutions Good progress securing value opportunities in speciality markets continuing Our strategic opportunity • Further alignment with strategic end markets Leading positions with solutions to enhance energy – Improving geographical balance (leveraging China Innovation Cent
Slide 16: Adhesive Solutions
Adhesive Solutions Momentum from successful performance improvement programme and new products Our strategic opportunity • Further improve competitiveness and reliability Leading positions in EMEA and the Americas across all – £5m benefits from performance improvement programme in H1 25; cumulativel
Slide 17: Health & Protection and Performance Materials
Health & Protection and Performance Materials Earnings progress notwithstanding mixed market developments Our strategic opportunity • Market dynamics evolving in latex for gloves industry Market leader in £3bn NBR market – base chemicals – Developed additional earnings stream in period from US techn
Slide 18: Operational excellence
Operational excellence Continuous improvement in how we run our business is a key pillar of the strategy SHE excellence Procurement Synthomer Excellence (SynEx) SynEx community • Centrally-managed ‘business excellence’ function launched in Oct 2022 • 7 black belts / 77 green belts / 120 yellow belts
Slide 19: Driving innovation and sustainability
Driving innovation and sustainability Further progress in key initiatives underpinning future growth Our sustainability approach is commercially-led and aligned to innovation agenda… • ISCC+ certified sites increase by 3 to 11 – mass balance-based product offerings for customers using bio- and circu
Slide 20: Agenda
AGENDA 01 Overview – Michael Willome 02 Financial review – Lily Liu 03 Strategic progress – Michael Willome 04 Outlook and summary – Michael Willome 05 Q&A Synthomer plc 2025 interim results 20
Slide 21: Current trading and outlook
Current trading and outlook • Q1 25 trading robust; then tariff changes resulted in greater customer demand volatility in Q2 25 – Limited direct exposure to new tariffs across Group, largely being offset through surcharges – Customer demand improved in June after slowing in May • Customers currently
Slide 22: Summary
Summary Driving further strategic and financial progress in a challenging environment Ambition to double recent earnings over medium term: • Delivered gross margin improvement and EBITDA growth despite near- £50m+ in self-help actions term challenges affecting our end-markets – self-help, pricing po
Slide 23: Agenda
AGENDA 01 Overview – Michael Willome 02 Financial review – Lily Liu 03 Strategic progress – Michael Willome 04 Outlook and summary – Michael Willome 05 Q&A Synthomer plc 2025 interim results 23
Slide 24: Appendices
APPENDICES 01 Special items 02 Foreign exchange and pensions Synthomer plc 2025 interim results 24
Slide 25: H1 2025 special items
Appendix 1 H1 2025 special items Continuing operations £m H1 25 H1 24 FY 24 • Amortisation of acquired intangibles reflects the amortisation on the customer lists, patents, trademarks and trade secrets that arose on Amortisation of acquired intangibles (22.3) (22.8) (45.1) historic acquisitions Rest
Slide 26: Foreign exchange and pensions
Appendix 2 Foreign exchange and pensions FX translation exposure – EBITDA impact Pensions H1 25 translation • Net retirement obligation decreased by £3.1m to £46.6m at 30 June 2025, Currency Movement sensitivity primarily driven by cash contributions and actuarial gains EUR € 0.10 £1.9m • Closing ba