Syensqo Sa/nv · EURONEXT:SYENS
Syensqo Sa/nv — Q2 2024 Earnings Presentation
24 slides from Syensqo Sa/nv's earnings presentation, Aug 1, 2024
Slide 1: Second Quarter 2024 Results
Dr. ILHAM KADRI Second Quarter Chief Executive Officer 2024 Results CHRISTOPHER DAVIS Chief Financial Officer August 1, 2024
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking information. Forward-looking statements describe expectations, plans, strategies, goals, future events or intentions. The achievement of forward-looking statements contained in this presentation is subject to risks and uncertainties relating t
Slide 3: Agenda
Agenda Second Quarter 2024 Review Second Quarter 2024 Financial Review 2024 Outlook 3
Slide 4: Second Quarter 2024 Review
SECOND QUARTER 2024 REVIEW Dr. ILHAM KADRI Chief Executive Officer
Slide 5: Second Quarter 2024 Highlights
Second Quarter 2024 Highlights NET GROSS ■ Continued improvement in volume momentum SALES PROFIT ■ Underlying EBITDA in-line with expectations € 1.71bn € 582mn ■ Strong discipline on pricing and costs flat volumes 34.1% margin -5% pricing ■ 88% cash conversion[1] ■ Successfully completed inaugural $
Slide 6: Executing our growth strategy
Executing our growth strategy Expansion Appointment Syensqo unveils Syensqo of Ajedium™ of new Cerafy™, a range launches circular films range for Scientific of biomimetic Omnix® ECHO enhanced Advisory natural ceramides solutions for electric motor Board household and efficiency food appliances Intro
Slide 7: Second Quarter 2024 Segment Highlights
Second Quarter 2024 Segment Highlights CONSUMER & RESOURCES ■ Improved volume momentum with 10% YoY MATERIALS growth ■ Balancing price/volume to maximise value ■ Strong YoY growth in Composite Materials; Aero and defense up double digits growth ■ Slower recovery in Agro ■ YoY decline in Specialty Po
Slide 8: Second Quarter 2024 Financial Review
SECOND QUARTER 2024 FINANCIAL REVIEW CHRISTOPHER DAVIS Chief Financial Officer
Slide 9: Summary of Q2 & H1 2024 Financial Results
Summary of Q2 & H1 2024 Financial Results YoY YoY QoQ YoY YoY Underlying (€ million) Q2 2024 Q2 2023 Q1 2024 H1 2024 H1 2023 change organic change change organic Net sales 1,708 1,815 1,624 -5.9% -5.1% 5.2% 3,332 3,628 -8.1% -6.7% Gross profit 582 635 583 -8.3% - -0.2% 1,165 1,298 -10.2% - Gross pro
Slide 10: Second quarter 2024 underlying EBITDA in-line with outlook
Second quarter 2024 underlying EBITDA in-line with outlook € million Q2 2023 Scope FX Q2 2023 Volume Net Fixed Q2 2024 (constant & mix pricing costs & scope & FX) Other 10
Slide 11: Capital expenditure focused on value creation
Capital expenditure focused on value creation Corporate € million Consumer & Resources Growth capex[1] Materials Sustenance capex[2] Growth capital to support future 176 176 value creation 161 161 ■ Battery materials: PVDF expansion 17 in Tavaux, France 32 43 ■ Growth Platforms: primarily 108 90 inv
Slide 12: Strong cash conversion
Strong cash conversion € million Cash flow from operating activities [1] Cash conversion [1,2] 88% 85% 1,275 1,073 167 77% 906 FY 2023 LTM Q2 2024 FY 2023 LTM Q2 2024 [1] Accounting for the impact of the €167 million payment to the NJDEP in April 2024 [2] Cash conversion = (EBITDA +/- change in work
Slide 13: Strong financial position
Strong financial position Strong investment grade rating Underlying €1.7 bn GEARING[2] S&P Net Debt undrawn committed € 2.6 bn Stable outlook facilities Total cash & undrawn 21% BBB+ committed € 1.9 bn facilities €0.9 bn NET DEBT MOODY’S Cash[1] leverage ratio[3] Stable outlook 1.3X Baa1 [1] Cash +
Slide 14: Balanced debt maturity profile
Balanced debt maturity profile LHS: in € or $ million RHS: in % $600 $600 €500 €500 5.85% 5.65% 4.26% 3.95% 2.75% 2.50% $163 2025 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2034 $ € € $ $ Senior Perp. Senior Senior Senior note Hybrid Note note note 14
Slide 15: 2024 Outlook
2024 OUTLOOK Dr. ILHAM KADRI Chief Executive Officer
Slide 16: Updated FY 2024 Outlook
[Updated] FY 2024 Outlook Comments ● Not expecting broader recovery in H2 demand to support high end of prior outlook range EBITDA[3] €1.4 - 1.475 bn ● €50-100 million net pricing reduction ● Dissynergies (~€30 million) in 2024 related to separation ● R&I and IT investments, cost saving initiatives
Slide 17: Q&A
Q&A
Slide 18: Supplementary Information
SUPPLEMENTARY INFORMATION
Slide 19: Q2 & H1 2024 Key figures
Q2 & H1 2024 Key figures IFRS Underlying (€ million) Q2 2024 Q2 2023 % YoY Q2 2024 Q2 2023 % YoY YoY organic Net sales 1,708 1,815 -5.9% 1,708 1,815 -5.9% -5.1% EBITDA 336 155 116.8% 378 433 -12.8% -10.9% EBITDA margin 19.7% 8.5% n.m. 22.1% 23.8% -170 bps - EBIT 174 9 n.m. 250 320 -22.0% - Net finan
Slide 20: Segment performance: Materials
Segment performance: Materials Strong YoY growth in Composite Materials, lower volumes and pricing in Specialty Polymers Q2 2024 Q2 2023 Q1 2024 YoY change YoY change QoQ change H1 2024 H1 2023 YoY change YoY change (€m) (€m) (€m) (%) (org %) (%) (€m) (€m) (%) (org %) Net Sales 988 1,094 940 -10% -9
Slide 21: Segment performance: Consumer & Resources
Segment performance: Consumer & Resources Improved volume momentum with 10% YoY growth, strong YoY underlying EBITDA margin expansion Q2 2024 Q2 2023 Q1 2024 YoY change YoY change QoQ change H1 2024 H1 2023 YoY change YoY change (€m) (€m) (€m) (%) (org %) (%) (€m) (€m) (%) (org %) Net Sales 720 720
Slide 22: Second quarter 2024 underlying EBITDA to Free Cash Flow bridge
Second quarter 2024 underlying EBITDA to Free Cash Flow bridge € million Growth: -€108m Sustenance: -€68m Underlying Capex Change in NJDEP Change in Financing Taxes FCF to NJDEP FCF to EBITDA Working payment Provisions & Others shareholders payment shareholders Capital excl. NJDEP payment 22
Slide 23: Second quarter 2024 regional mix & performance
Second quarter 2024 regional mix & performance ASIA & AMERICAS EUROPE Rest of the World 41% of net sales 24 % 36% of net sales of net sales -10 bps +240 bps YoY -230 bps YoY YoY 36 14 12 industrial sites industrial sites industrial sites 4 5 3 major R&I centers major R&I centers major R&I centers 23
Slide 24: Investor Relations
INVESTOR RELATIONS IMPORTANT DATES ● Nov 5, 2024: Q3/9M 2024 results Sherief Bakr ● Feb 25, 2025: FY 2024 results sherief.bakr@syensqo.com +44 7920 575 989 ● May 6, 2025: Annual General Meeting ● May 15, 2025: Q1 2025 results Bisser Alexandrov bisser.alexandrov@syensqo.com +33 607 635 280 INVESTOR C