Slide 1: 2024 Full year results
Unique chemistry, sustainable solutions 2024 Full year results 6 March 2025 Unique chemistry, sustainable solutions
Slide 2: Cautionary statement
Cautionary statement This presentation, the presentation materials and discussion may The Company is the holding company for a number of operationally contain certain forecasts, projections and forward-looking distinct and autonomous subsidiaries that conduct the day-to-day statements – that is, sta
Slide 3: Agenda
Agenda Introduction and highlights Paul Waterman Segmental performance Paul Waterman Group financials Ralph Hewins Outlook Paul Waterman Unique chemistry, sustainable solutions Q&A Paul Waterman and Ralph Hewins Unique chemistry, sustainable solutions 3
Slide 4: Introduction and highlights
Unique chemistry, sustainable solutions Introduction and highlights Paul Waterman 4
Slide 5: Self-help actions driving performance
Self-help actions driving performance Strong 2024 Revenue and earnings growth across On track to achieve 2026 targets performance Coatings and Personal Care Delivery Above market growth despite flat 2024 2026 targets underpinned by demand environment Operating profit self-help actions $18 million an
Slide 6: Strong safety focus
Strong safety focus Injuries Recordable injuries Elementis TRIR TRIR 2024 highlights 8 8 1 50% reduction in employee recordable injuries 0.9 7 7 90% of sites had no recordable injuries 6 0.75 0.67 5 4 70% sites >3 years with no recordable injuries 4 0.5 3 0.33 2 Rolled out a formal HSE management sy
Slide 7: 2024 key financials
2024 key financials $m (unless stated otherwise) 2024 2023 % Change Revenue 738 713 3% Adjusted operating profit 129 104 24% Adjusted operating margin 17.4% 14.6% 280bps Adjusted profit before tax 105 84 24% Adjusted diluted EPS (cents) 13.3 10.8 23% Net debt (157) (202) (22%) Unique chemistry, sust
Slide 8: Continued strategic progress
Continued strategic progress Innovation Growth Efficiency above market annual cost 22 new products $26m revenue growth2 $18m savings delivered revenues from new business Fit for the future restructuring 15% innovation sales $60m delivered successfully implemented revenues from Personal Care Middleto
Slide 9: Sustainability progress
Sustainability progress Environment Our people Responsible business Science-based emission target approved, Fit for the Future restructuring on track; new Implemented a comprehensive supplier due 10-year decarbonisation plans developed team of 100+ employees in Porto diligence system, enhancing our
Slide 10: Strategy is delivering
Strategy is delivering Innovation and new business driving growth Innovation sales New business ($m)2 New products1 as a % of sales. 15.3% $59m $60m 14.3% 13.5% 13.3% $51m $50m 11.5% ~60% $30m >70% of innovation of new business sales in 2024 in 2024 from from growth growth platform platforms product
Slide 11: CMD financial targets on track
CMD financial targets on track Adjusted operating Three-year operating cash Return on capital profit margin1 conversion2 employed3 (ex. goodwill) 111% 23% 19%+ >20% >90% 19%4 87% 88% 17.4% 77% 14.6% 15% 13.6% 14% 12.4% 13% Unique chemistry, sustainable solutions 2021 2022 2023 2024 2026 2021 2022 20
Slide 12: Segmental performance
Unique chemistry, sustainable solutions Segmental performance Paul Waterman 12
Slide 13: Personal Care performance
Personal Care performance Record revenue and profit supported by self-help initiatives Revenue supported by $18m of higher value $m 2024 2023 Change new business and improved volumes (constant currency) Revenue 217 209 4% Profit growth benefiting from higher volumes, improved mix and cost efficienci
Slide 14: Personal Care performance
Personal Care performance Track record driven by innovation Operating profit ($m) 2024 performance 28% 17% innovation sales 24% 33 • Nine new higher margin products 23% new products 21% 21% since 2020 • Record NBO pipeline of $89 million Record operating profit 49 50 62 $70m • Much improved product
Slide 15: Personal Care growth platforms
Personal Care growth platforms Good progress, on track for 2026 target 2024 2026 progress Opportunity / Ambitions CMD target • Skinification, individualization, speed-to-market Add $10m Colour • Enter $40m makeup film-former market above market revenue cosmetics • Expand Asia direct customer relatio
Slide 16: Colour Cosmetics
Growth platform 2024 progress Colour Cosmetics Above market revenue Growth across all regions, Asia up 10% growth Strong growth in China, and route to market changes 7% Emerging markets products customization 4% Growing global key accounts, leveraging hectorite, rheology and formulation solutions La
Slide 17: Skin care
Growth platform 2024 progress Skin care Above market growth Innovative, natural-rheology products driving growth momentum Europe revenue up >50% benefiting from growth in global key 17% accounts, innovation products, and route to market changes Good momentum from recent launches, focus on natural rh
Slide 18: Antiperspirants
Growth platform 2024 progress Antiperspirants Above market growth Revenues driven by high-efficacy products 2% High-efficacy antiperspirant actives – now 44% of sales Growth across global key accounts in Europe and Americas Success with fast growing Indie brands -0.2% Four new product launches inclu
Slide 19: Performance Specialties
Performance Specialties Coatings improvement offset challenging Talc performance Strong Coatings performance $m 2024 2023 Change (constant currency) Better price/mix and higher volumes driving margin improvement Revenue 521 504 3% $43m of new business Operating profit 1 86 70 24% Operating margin1 1
Slide 20: Coatings performance
Coatings performance Record operating profit and margin Revenue growth supported by growth $m 2024 2023 Change platforms (constant currency) Profit growth benefiting from higher Revenue 386 368 5% volumes, improved price/mix and cost efficiencies Operating profit1 78 56 41% Margin improvement reflec
Slide 21: Coatings performance
Coatings performance Higher quality portfolio, new business and cost efficiencies Operating profit ($m) 2024 performance 20% • 12 new higher margin products 18% 16% 15% 31 • $36m new business 13% new products since 2020 Record operating profit • Higher quality product portfolio 70 78 62 • Self-help
Slide 22: Coatings performance
Coatings performance Performance driven by more normalised volumes post destocking, and improved price/mix. Overall demand remains weak Elementis sector growth Elementis regional growth 10% 9% AMERICAS EUROPE ASIA 9% 8% +8% +7% 0% 7% 6% 5% 4% 3% 3% 2% 1% 0% Deco DECO Industrial INDUSTRIAL Global key
Slide 23: Coatings growth platforms
Coatings growth platforms Good progress, on track for 2026 target 2024 2026 progress Opportunity / Ambitions CMD target • Capture demand for sustainable ingredients Architectural • Penetrate Asian premium architectural market (>$300m market) Grow at 2x market Coatings • Global launch of biobased and
Slide 24: Architectural Coatings
Growth platform 2024 progress Architectural Coatings Above market revenue Capturing demand for sustainable growth ingredients 3% Strong growth in emerging markets, customized formulation for Indian paint manufacturer Benefiting from localised production, entering $30m local demand with new NiSAT1 fa
Slide 25: Industrial Coatings
Growth platform 2024 progress Industrial Coatings Above market revenue Emerging markets and hectorite-based growth solutions driving growth momentum Customised formulations with naturally-derived hectorite 9% solutions up >30% Two new products supporting solvent-based to water- based trend 0% 2024 A
Slide 26: Adhesives, sealants and construction additives
Growth platform 2024 progress Adhesives, sealants and construction additives Above market revenue Success in Thixatrol® AS 8053 low growth temperature activation, growth ~40% Elementis’ Thixatrol range delivering sustainability and 15% performance benefits over fumed silica >25% growth from hectorit
Slide 27: Talc performance
Talc performance Challenging year, strategic review progressing amid regulatory uncertainty March/April Finnish union strike impacted $m 2024 2023 Change performance in H1 (constant currency) EU talc classification recommendation Revenue 135 136 (2%) announced in Q3 Operating profit1 8 14 (42%) Stra
Slide 28: Talc performance
Talc performance European demand weakness across key markets Market performance* (2024 vs 2023) Elementis performance 2025 priorities Gain market share, execute on ~5 % reduction in European Stable volumes despite continued weak Plastics light vehicle production demand. Market share gains in Q4. key
Slide 29: Group financials
Unique chemistry, sustainable solutions Group financials Ralph Hewins, CFO 29
Slide 30: Group revenue ($m)
Group revenue ($m) Higher volumes and improved price/mix 15 738 713 9 1 5 (5) Personal Talc Care 9 9 Coatings Unique chemistry, sustainable solutions 2023 FX Volume Price / mix 2024 Unique chemistry, sustainable solutions 30
Slide 31: Group operating profit ($m)
Group operating profit ($m) Strong growth, supported by self-help actions 18 129 5 2 104 (0) Unique chemistry, sustainable solutions 2023 FX Volume Price / mix / Savings 2024 inflation Unique chemistry, sustainable solutions 31
Slide 32: Proactive margin management
Proactive margin management 2025 raw materials and logistics cost overview Tariff impact currently not considered material Freight & C2/C3/C4 Logistics derivatives 1 -1% to 0% • Demand/inflationary impact unknown • Manufacturing footprint on four continents 1% to 3% Low single • Rapid pricing flexib
Slide 33: Cash flow
Cash flow $m 2024 2023 EBITDA 168 146 Change in working capital 4 2 Capital expenditure (38) (38) Working capital inflow $25m in H2 2024, Operating Cash Flow 134 110 reflecting normal seasonality and improved inventory levels Pensions (1) (3) Interest (18) (18) Adjusting items include Tax related pa
Slide 34: Strong balance sheet
Strong balance sheet Net debt to EBITDA evolution ($m)1 2021 2022 2023 2024 157 (202) (367) (401) LEVERAGE Unique 2.6x chemistry, sustainable 2.2x solutions 1.4x 1.0x Note: 1. Excluding finance leases on a pre IFRS 16 basis. Unique chemistry, sustainable solutions 34
Slide 35: Capital allocation
Capital allocation Positioned for sustainable growth and shareholder returns Focus on growth and Organic growth Capex c.$40m p.a. productivity Final dividend 2024 full-year dividend Progressive dividend 2.9 cents 4.0 cents Potential for additional Additional returns Continued deleveraging shareholde
Slide 36: Efficiency: faster delivery of $30m cost savings
Efficiency: faster delivery of $30m cost savings 2024 2025 Global Supply Chain and November 2023 CMD $12m $18m Procurement Fit for the future organisational 2024 results $18m $12m restructuring Unique chemistry, sustainable solutions Unique chemistry, sustainable solutions 36
Slide 37: Fit for the future restructuring
Fit for the future restructuring Ahead of plan, $10m cost savings delivered in 2024, full year impact in 2025 Actions 2024 2025 Target Optimising • 190 roles eliminated • Restructuring structure • 100+ team in Porto complete Q1 2025 Elementis • New R&D and support centre • Complete transition $18m P
Slide 38: Global Supply Chain and Procurement
Global Supply Chain and Procurement Ahead of plan, $8m cost savings delivered in 2024 Actions 2024 2025 Target • Middletown plant closed • Further manufacturing • Successful Taloja plant full optimisation Supply chain production ramp-up • Supply chain digitalisation improvements • Process debottlene
Slide 39: Improving return on capital employed
Improving return on capital employed 25.00% >20% 2026 target 4.3% 23.3% (exc. goodwill) 20.00% 23.x% 3.7% 19.0% 15.00% 15.3% 10.00% 5.00% Unique chemistry, sustainable solutions 0.00% 2023 Earnings 2024 Talc 2024 pre impairment impairment post impairment Unique chemistry, sustainable solutions 39
Slide 40: Outlook
Unique chemistry, sustainable solutions Outlook Paul Waterman 40
Slide 41: Outlook
Outlook Solid start to the year amid challenging demand environment Growth underpinned by growth platforms, supported by NBO pipeline and new product launches Continued efficiency delivery, $12m expected in 2025 Confidence in achieving 2026 CMD targets Unique chemistry, sustainable solutions Unique
Slide 42: Q&A
Unique chemistry, sustainable solutions Q&A 42
Slide 43: Appendices
Appendices Business model and differentiators Talc classification timeline Global footprint Tax charge and 2025 technical guidance Adjusting items Unique chemistry, sustainable solutions Net debt: IFRS 16 reconciliation Unique chemistry, sustainable solutions 43
Slide 44: Business model and differentiators
Business model and differentiators Business model Differentiators • Two focused businesses • Integrated model • Customer centric and Formulation expertise Rheology Hectorite innovation focus Holistic optimisation of Critical to end product Natural white clay formulation to achieve performance - make
Slide 45: Talc classification timeline
Talc classification timeline Delay of publication of RAC Talc strategic opinion to 2025, resulting in delay Final decision review announced of discussion in EC until 2026. expected Sep 2024 Q3 2028 Aug 2024 Dec 2024 H2 2026 Risk Assessment Committee (RAC) of the Earliest European Chemicals Agency im
Slide 46: Global footprint
Global footprint 23 locations across three key regions Sales by region 22% 37% Key: Office Laboratory Manufacturing Americas Europe Asia 41% Unique chemistry, sustainable solutions Personal Care Personal Care, Personal Care and Coatings Coatings and Talc and Coatings Unique chemistry, sustainable so
Slide 47: Tax charge and 2025 technical guidance
Tax charge and 2025 technical guidance Tax charge 2025 technical guidance $m 2024 2023 P&L items • Depreciation of c.$40-45m (of which c.$5.0m is Adjusted tax charge 25.0 19.9 IFRS 16 related) • Amortisation of c.$15m (of which majority is amortisation of acquired intangibles) Tax charge: adjusting
Slide 48: Adjusting items
Adjusting items $m Expense/(Income) 2024 2023 Amortisation of intangibles arising on 12 13 acquisition 2024 cash component of adjusting items of c.$33m (2023: $10m) Environmental provisions 2 6 Business transformation/other 15 26 Environmental provisions increase partially offset by discount rates I
Slide 49: Net debt IFRS reconciliation
Net debt IFRS 16 reconciliation 2024 Pre-IFRS 16 Basis Post-IFRS 16 Basis Bank loans and overdraft (223) (223) Lease liabilities - (35) Cash and cash equivalents 66 66 Net Debt (157) (192) Adjusted operating profit on total operations 129 129 Add: Depreciation and amortisation on total operations 51