Slide 1: Financial Results Mercor H1 2023/24
FINANCIAL RESULTS MERCOR H1 2023/24 1
Slide 2: Providing safety in advanced fire protection
in advanced for the fire protection industry Providing safety for Presence in over countries around the world System solution 35 Sales on 4 continents years manufacturing plants Dedicated automation and software solutions Development of technologies for safety -inth ELMECH-ASE
Slide 3: H1 2023/24 Highlights
01. H1 2023/24 HIGHLIGHTS • Maintaining solid revenue in excess of PLN 300m • 11% growth in orders from May to October 2023 (October 2023 alone: 28%) • Gross margin of 25.4% • Net profit up nearly 38% YoY, boosted by an income tax refund of PLN 10.5m • Net debt/EBITDA ratio at 0.94 • Development of
Slide 4: Financial Results H1 2023/24
FINANCIAL RESULTS H1 2023/24 04.
Slide 5: Group Sales
04. GROUP SALES Quarterly sales [PLNm] H1 2023/24 sales [PLNm] -0.4% YoY 167,0 167,3 302,0 300,9 159,1 152,2 148,7 136,9 135,0 125,6 128,6 104,4 104,8 92,1 96,9 92,9 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 H1 2022/23 H1 2023/24 2020/2021 2021/2022 2022/2023 2023/2024 • H1 2023/24: sales drop in Po
Slide 6: Group Sales by Geography
GROUP SALES BY GEOGRAPHY H1 2022/23 sales [%] H1 2023/24 sales [%] UK Ukraine UK Romania Ukraine Romania 1,2% 2.0% Czech Republic and Slovakia Czech Republic and Slovakia 1.0% 0.8% 1.4% 2.5% 7.6% 6.5% Hungary Poland Hungary 7.9% 6.5% Poland 11.7% 14.4% 51.1% 51.9% Other Other 7.4% 8.4% 9.8% 7.9% Spa
Slide 7: Costs Aligned to Scale
COSTS ALIGNED TO SCALE Quarterly costs [PLNm] H1 2023/24 costs [PLNm] 9,3 10,3 +1.0% YoY 8,6 13.3 13,7 13,4 10,3 SG&A 10,5 269.2 8.4 13,0 266.5 11,0 Selling expenses +15.5% 7,6 11,7 8,7 18,1 20,9 7,6 YoY 11,3 11,2 24,5 24,0 11,3 Cost of sal es 6,8 -2.0% YoY 6,6 8,4 9,2 8,7 6,9 6,3 9,3 10,6 8,5 126,0
Slide 8: Group Results
GROUP RESULTS Quarterly EBITDA [PLNm] H1 2023/24 EBITDA [PLNm] -5.0% YoY EBIT Depreci ation and amortisation 43.9 41.7 4,7 8,9 4.4 9,4 4,5 4,5 5,0 5,3 3,2 3,5 3,5 3,4 3,0 3,8 3,6 19,9 35,0 16,9 18,1 16,8 32,3 13,8 15,5 13,0 11,9 10,7 10,9 4,3 11,1 10,2 10,8 3,4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 9: Strong Net Profit Growth
STRONG NET PROFIT GROWTH Quarterly net profit [PLNm] H1 2023/24 net profit [PLNm] +37.8% YoY 19,3 32,0 13,6 23,2 12,1 12,6 11,1 10,4 9,8 9,4 8,4 [8,8.0 8,4 7,3 7,4 2,5 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 H1 2022/23 H1 2023/24 2020/2021 2021/2022 2022/2023 2023/2024 • H1 2023/24 net profit up 3
Slide 10: Solid Profitability in a Challenging Environment
SOLID PROFITABILITY IN A CHALLENGING ENVIRONMENT Quarterly profitability [%] H1 2023/24 profitability [%] 28,2 28,7 28,1 27,5 25,9 25,4 23,7 24,4 24,5 22,8 22,5 25,5 25,9 24,8 25,4 21,9 15,8 14,7 15,4 15,5 14,4 14,0 13,5 14,3 14,5 12,4 12,2 12,0 13,5 10,9 12,5 11,9 13,0 11,6 11,3 10,6 10,5 13,9 8,2
Slide 11: Stable Liquidity Position
STABLE LIQUIDITY POSITION Cash flow [PLNm] 31,2 29,8 18,1 -5,2 -3,7 -7,8 -12,0 -21,4 H1 2022/23 H1 2023/24 Cash flow from operating acti viti es Cash flow from i nvesting activi ties Cash flow from financing activi ties Total cash flow • Low debt level. • Cash at almost PLN 26.0m with outstanding ba
Slide 12: Safe Debt Level
SAFE DEBT LEVEL Net debt [PLNm] and net debt/EBITDA ratio 91,6 96,7 2.6 76,8 80,1 66.1 67,1 1,7 1.6 1,3 0,8 0,9 2018/19 2019/20 2020/21 2021/22 2022/23 H1 2023/24 Net debt Net debt/EBITDA • Continued low net debt/EBITDA ratio: 0.94. mercor.com.pl 12
Slide 13: A Future Based on Orders
@ mercor A FUTURE BASED ON ORDERS
Slide 14: Orders
ORDERS FY 2023/2024 FY 2022/2023 FY 2021/2022 FY 2020/2021 FY 2019/2020 66,7 66,6 65,5 59,6 57,7 58,5 52,4 57,8 53,0 49,8 48,3 48,5 50,5 50,4 46,5 46,8 45,6 48,9 48,3 47,6 43,0 43,3 47,3 47,1 42,6 46,2 42,0 41,4 39,9 41,6 37,4 41,6 44,0 38,8 40,8 38,3 31,9 35,9 35,2 35,7 34,7 36,8 31,9 29,3 31,4 31.
Slide 15: Sample Projects: Natural Smoke Exhaust Systems
01. SAMPLE PROJECTS NATURAL SMOKE EXHAUST SYSTEMS Power Utility – Estonia • Systems: mcr LAM vents Production floor – Sweden • Project: Micropower Växjö • Systems: mcr PROLIGHT smoke vents and mcr PROLIGHT skylights Annopol Tram Depot – Warsaw • Systems: mcr ULTRA THERM smoke vents, roof hatches and
Slide 16: Sample Projects: Fire Ventilation Systems
01. SAMPLE PROJECTS FIRE VENTILATION SYSTEMS TVP Recording Studio – Warsaw • Systems: mcr OMEGA PRO power supply and control unit, mcr BORA, mcr MONSUN T smoke exhaust fans Gdańsk University of Technology Centre for Eco-Innovation – Gdańsk • Systems: mcr FID PRO, mcr FID S fire cut-off dampers New b
Slide 17: Sample Projects: Protection of Building Structures
01. SAMPLE PROJECTS PROTECTION OF BULDING STRUCTURES Museum of Modern Art – Warsaw • Systems: SILBOARD + mcr DUNASEAL Ice skating rink – Krynica Zdrój • Systems: fire protection of steel structures mcr TECWOOL F - fire resistance class R30, mcr POLYLACK ELASTIC, mcr PS/PS-25 sealing for cable penetr
Slide 18: Sample Projects: Companies
01. SAMPLE PROJECTS COMPANIES TESLA Gigafactory – Berlin, Germany • Systems: wooden doors in aluminium frames and DFM DS steel doors (delivery and installation) SKYPARK Business Centre – Luxembourg • Systems: DFM DS steel doors • Project in progress. Port des Lumières Digital Art Centre– Hamburg, Ge
Slide 19: Expansion of the Group's Product Range
EXPANSION OF THE GROUP’S PRODUCT RANGE 03.
Slide 20: Fast-Paced Growth in DFM Doors
01. FAST-PACED GROWTH IN DFM DOORS • Development of the offering for the UK market (BS-compliant fire doors) • Development of products within the Security & Safety segment • R&D projects in collaboration with mcr Tech Lab Ø Five-fold increase in the production area over five years Ø Line built using
Slide 21: mcr Tech Lab: Development of Fire Safety 4.0 Technology
01. MCR TECH LAB: DEVELOPMENT OF FIRE SAFETY 4.0 TECHNOLOGY • 16 projects ongoing in H1 2023/24 • mcr Fire wireless fire alarm system and utilities metering added to the offering • R&D projects in collaboration with Mercor Group companies mercor.com.pl 21
Slide 22: Summary
01. SUMMARY • Strong sales maintained in Poland and abroad • 11% growth in orders from May to October 2023 (October 2023 alone: 28%) • Net profit boosted by an income tax refund of PLN 10.5m • Net debt/EBITDA ratio at 0.94 • Further geographical and product diversification, including the development
Slide 23: mercor.com.pl
This material is intended for information purposes only. It does not constitute an advertisement for or an offer of any publicly traded securities. Its contents have been compiled from sources considered reliable and accurate by MERCOR S.A., although no assurance can be given that such sources are e
Slide 24: Thank You!
THANK YOU! mercor.com.pl 24