Annual Report and Financial Statements FY25

FOCUSED FOR GROWTH

Annual Report and Financial Statements 2025

| Accsys Technologies PLC | Annual Report and Financial Statements 2025

10

WHAT'S INSIDE

Overview

1. Performance

2. Our Business at a Glance 04 Reasons to Invest

06 Chair's Statement

10 Case Study Accoya USA

CEO'S REVIEW

14

Corporate Governance Financial Statements

OUR STRATEGY

34

Strategic Report

14 CEO's Review

20 Finance Review

26 Our Products

30 Our Market

32 Our Business Model

34 Our Strategy

40 Risk Management

46 Sustainability

56 Climate Disclosures Report (TCFD)

64 Stakeholder Engagement

82 Nomination Committee Report

85 Remuneration Report

97 Directors' Report

100 Statement of Directors' Responsibilities

SUSTAINABILITY

46

1. Consolidated Statement of Cash Flows

2. Notes to the Financial Statements

1. Company Statement of Financial Position

2. Company Statement of Changes in Equity

3. Notes to the Company Financial Statements

OUR PRODUCTS

26

Shareholder Information

161 Shareholder Information

View the latest results online at | https://www.accsysplc.com

Cover: MOLLIE Hotel, Colorado, USA. Photography: Draper White

OVERVIEW

Performance

Financial

GROUP REVENUE

€136.6m

FY24: €136.2M

GROSS PROFIT

€41.4m

FY24: €40.9M

ADJUSTED EBITDA*

€10.8m

FY24: €4.8M

GROSS PROFIT MARGIN

30.3%

FY24: 30.0%

NET DEBT

(€42.6m)

FY24: (€37.1M)

UNDERLYING LOSS BEFORE TAX

STR ATEGIC REPORT

(€9.9m)

FY24: (€9.4M)

Finance Review | Page 20 For our Alternative Performance Measures details | Page 124

Operational highlights

TOTAL ACCOYA SALES VOLUMES**

63,864m3

RESPONSIBLE SOURCING

100%

of Accoya made from certified sustainable (FSC® (CO12330), PEFC, or equivalent) wood sources

TOTAL ACCOYA SALES GROWTH

13%

year-on-year increase in sales

EMPLOYEE ENGAGEMENT

73%

employee satisfaction in FY25 Employee Engagement Survey

TOTAL NORTH AMERICA ACCOYA SALES GROWTH

GOVERNANCE

16%

year-on-year increase in sales

SUSTAINABILITY

+11

FINANCIAL STATEMENTS

point increase in S&P Corporate Sustainability Assessment ESG score to 56/100

* Adjusted EBITDA is defined as operating profit/(loss) before exceptional items, depreciation and amortisation,

and includes the Group's attributable share of our USA joint venture's underlying EBITDA (see note 3 of the financial statements for further details).

** Total Accoya sales volumes includes 100% of sales from the JV.

See our Finance Review | Page 20

02 | Accsys Technologies PLC | Annual Report and Financial Statements 2025

Our Business at a Glance

A purpose driven company

CHANGING WOOD TO CHANGE THE WORLD

'Changing wood' is what we do, and 'to change the world' is why we do it. Our purpose gives us a common, aspirational goal to work towards and is embraced by our stakeholders.

Arc Polo Farm, Surrey, UK. Manufacturer: Exterior Solutions Ltd. Architect: DROO. Photography: Henry Woide

Delivering high performance and sustainable solutions

Accsys is an industry disrupter redefining what is possible by taking one of the oldest, most trusted building materials and transforming it into a powerhouse of performance and sustainability.

Using a proprietary acetylation process we take responsibly sourced softwood and transform it into building materials that can rival the performance attributes of tropical hardwoods and intensely resource depleting man-made alternatives. Our unique technology is protected by intellectual property rights, with approximately 300 patent family members across 45 countries.

Our products offer unmatched durability and stability. They come with a 50-year warranty above ground and a 25-year warranty for in ground or freshwater applications.

Our products

Accoya® is a high-performance wood made from abundantly available certified sustainable sources. It is exceptionally durable and Cradle to Cradle Certified® for its circular economy benefits.

Accoya Color® is our coloured-through product, making it an ideal choice for decking and cladding applications.

Accoya for Tricoya® is a feedstock for our licensees to manufacture high performance Tricoya panel products suitable for outdoor use.

OVERVIEW

Our global presence

STR ATEGIC REPORT

Kingsport Accoya site and sales office

Barry Accoya Color site

London Accsys headquarters Arnhem Accoya site & office

Key

GOVERNANCE

Product distribution

All made possible by people living our values

Be ambitious - the world depends on us

We challenge ourselves to be better every day, we are committed and agile. To achieve our ambition we will often pave new ways, innovating with new technologies or processes that no other player tried. This gives us an opportunity to learn and progress, striving to continuously improve in all operational areas of our business.

Respect and value all stakeholders

Everyone we work with is important - our colleagues, customers, partners, suppliers, shareholders and more. We act with integrity and authenticity, encourage collaboration, and build trust through inclusion and mutual respect. As a team, we will succeed.

Be committed to safety, quality and sustainability

FINANCIAL STATEMENTS

Safety is of the utmost importance in everything we do. We all share responsibility for protecting people, property and the environment at all times. We strive to fulfil our brand promise and delight our customers. We commit to high quality delivery.

04 | Accsys Technologies PLC | Annual Report and Financial Statements 2025

Reasons to invest

A COMPELLING GROWTH OPPORTUNITY FOR INVESTORS

Market leadership

Sustainability focused industry disrupter with unique portfolio of world class IP backed premium wood building products: Accoya and Tricoya.

Accsys develops high-performance, sustainable wood products that serve as renewable alternatives to hardwoods and resource-intensive building materials. Its products are leading the

revolution of modified woods in the global infrastructure and construction markets.

See Our Products | Page 26

Large and growing addressable markets

The global wood products market is expected to grow from US $855bn in 2024 to US $1,215bn in 2029 with a Compound Annual Growth Rate (CAGR) of 7% (Source: The Business Research Company).

This growth is driven by several key factors: increasing global population and rising GDP per capita are fuelling demand for new construction and redevelopment; there is a growing emphasis on sustainable building materials, with consumers increasingly prioritising low-carbon and biophilic design elements; and lifestyle trends are shifting toward greater use of outdoor living spaces.

See Our Market | Page 30

Established manufacturing footprint

with high operational leverage

Accsys has an established manufacturing base, for its proprietary technology, in Europe and the USA with the potential to deliver significant volume growth.

With strong pricing power and gross margins around 30%, the business is well placed to deliver future double-digit adjusted EBITDA margins and deliver increasing shareholder returns.

See Our Business Model |

Page 32

Accsys at inflection point with FOCUS strategy in place to drive profitable growth in earnings and free cash flow

In January 2025, Accsys set out its strategic goals, and FY25 reflects continued disciplined execution toward the Company's objectives.

With a de-risked capital expenditure profile, protected intellectual property, a global distribution network, and established world-class brands, Accsys is well-positioned for long-term value creation.

See Our Strategy |

Page 34

Accsys has a proven

business model and strong organisational capability

to drive its growth journey

With an experienced Executive Committee and strengthened local organisations, Accsys

is continuing to build strong organisational capabilities and is well-equipped to execute its strategic objectives.

See Our Board and Executive Committee | Page 72

FINANCIAL STATEMENTS

GOVERNANCE

STR ATEGIC REPORT

OVERVIEW

Accoya Color decking, Hergiswil, Switzerland.

Photography: Marco Leu.

06 | Accsys Technologies PLC | Annual Report and Financial Statements 2025

Chair's Statement

ON TRACK FOR DELIVERING PROFITABLE AND SUSTAINABLE GROWTH

FY25 has been a pivotal year for Accsys, marked by strategic clarity, robust commercial

momentum, and strong operational delivery."

Dr Trudy Schoolenberg

Chair

Overview

With full support from the Board, Jelena led a comprehensive strategic review of the business culminating in Accsys' Investor Strategy Day in January 2025. During this event, we introduced our new FOCUS strategy, which outlines the phases of our growth

plan, commercial objectives and our short and medium term goals. This day marked an important step in strengthening transparency with shareholders and presenting a clear roadmap for the future.

One of Accsys' most significant achievements in FY25 was our international expansion into the USA, the largest and most attractive wood market in the world. In September 2024, Accoya USA - our first production site in the United States and a joint venture with Eastman Chemical Company - successfully commenced

commercial operations. This expansion increases Accsys' global production capacity while establishing a vital local manufacturing presence in the USA.

The launch of Accoya USA marks a transformational milestone for Accsys. With the addition of a second production facility, we have enhanced the business' resilience and improved our risk profile. Local production in the United States - especially in a time of shifting global trade dynamics - strengthens our strategic positioning and ensures we can directly supply the fast-growing North American market, where the construction market is forecast to grow on a 5-8% medium term CAGR (publicly available sources). Accsys is continuing to monitor developments with regards to US tariffs. Currently, tariff exemptions are in place for lumber imports into the US.

During the financial year, we made the strategic decision to discontinue our manufacturing plant in Hull. While the decision was difficult, it was necessary for reducing risk, eliminating ongoing maintenance costs, and allowing Accsys to concentrate on its key facilities in Arnhem

and Kingsport.

With increased production capacity in place, a core focus for the Board and Executive Committee has shifted to our commercial strategy. To maximise returns from our primary sites and utilise our increased

production capacity we are prioritising sales generation. This investment has already begun to pay off, with total Accoya sales volumes up 13% from FY24, showing strong demand for Accoya even amid ongoing challenges in the construction market.

FY25 financial performance

Accsys delivered strong profitability progression in FY25. We significantly increased adjusted EBITDA compared to last year, at €10.8m (€4.8m, FY24), reflecting strong sales volumes and operational cost savings of €4.6m, arising from the business

transformation programme and Solid Roots operational efficiency initiative in Arnhem.

Group revenues increased by 0.3% from FY24 at

OVERVIEW

€136.6m, driven by strong growth in European sales volumes compensating for the transfer of North American sales (16% of FY24 volumes) to the Accoya USA JV. We held firm on our premium product pricing, despite the commercial market headwinds, reflecting the strength and uniqueness of our product offerings.

Group gross margin improved to 30.3% (30.0% in FY24).

Net debt increased from €37.1m at 31 March 2024 to

€42.6m. This was driven by planned investment in the Accoya USA JV, and higher inventory levels, ensuring product availability to support strong demand and customer service, offset by the elimination of non-recourse debt in Tricoya UK Ltd.

Purpose and values

STR ATEGIC REPORT

We remain committed to our purpose of 'Changing wood to change the world' and our core priorities of operating safely and sustainably - key pillars of the new FOCUS strategy.

As a manufacturer, health and safety is at the forefront of everything we do. This year we are proud to have begun the roll out of nine Life Saving Rules and will continue to roll these out over the course of FY26.

We continue to invest in innovation and product development and this year we invested €1.2m into R&D, focusing on advancing our product value proposition and research into alternative species to enhance supply chain resilience.

GOVERNANCE

Accoya, thanks to its unique proposition combining high performance, durability and sustainability, continues

to be specified in some of the world's leading building projects. This includes prestigious heritage projects such as the restoration of the Bow Bridge in New York's Central Park (see page 09 for more details). Leading companies including ABB and Mountain Warehouse have all used Accoya on their buildings in the past year.

We also remain committed to our purpose of helping the world build in a more sustainable way. Our commitment to responsible sourcing remains firm and we are

FINANCIAL STATEMENTS

proud to have sourced 100% of our wood products from FSC® (CO12330), PEFC, or equivalent certified sustainable sources in FY25. We will uphold these values as we continue to expand production and utilise our

full capacity.

08 | Accsys Technologies PLC | Annual Report and Financial Statements 2025

Chair's Statement continued

As a Board we remain committed to maintaining

high standards of Environmental Social Governance (ESG). ESG metrics continue to be incorporated into success metrics for our executive remuneration and we are pleased to have achieved an +11 point increase in our S&P CSA score this year to 56/100, placing us in the top 20% of companies in our industry sector.

Board composition

In FY25 we welcomed our new CFO and Board member Sameet Vohra. Sameet brings extensive experience as a listed company CFO and we are pleased to have him onboard, further strengthening our operational capability.

People

Our performance would not be possible without our colleagues who have demonstrated incredible determination and unity. Their commitment has

driven us forward and delivered strong performance outcomes. I also want to extend my appreciation to all our shareholders, customers, partners, suppliers, and contractors - your ongoing support is vital as we continue to grow and move ahead together.

OVERVIEW

CASE STUDY

BOW BRIDGE, NEW YORK CITY: A HISTORIC RESTORATION WITH A SUSTAINABLE FUTURE

Central Park, New York City, USA

STR ATEGIC REPORT

New York City's Central Park is renowned as one of the world's most famous urban landscapes and few spots capture its beauty and charm quite like Central Park's Bow Bridge. Spanning 27 metres across The Lake - one of the park's most picturesque bodies

of water, linking the Ramble on the east to Cherry Hill on the west - the bridge was first constructed in 1860. With its graceful cast-iron curves, intricate

detailing, and sweeping skyline views, the Bow Bridge is an architectural marvel of its time and one of the most photographed and iconic pedestrian bridges

in the world.

GOVERNANCE

After more than 160 years of enduring weather extremes, heavy foot traffic, and countless film productions, the bridge showed clear signs of wear. It underwent a comprehensive restoration in 2015, however, by 2024, the treated Southern Pine decking required replacement. For this essential upgrade, Accoya emerged as the optimal solution. Its exceptional dimensional stability ensures the wood retains its shape and structural integrity without warping, cupping, or swelling, even under

New York's intense seasonal fluctuations. In addition to its superior performance, Accoya's sourcing from sustainably managed forests and its minimal environmental impact made it a natural fit for the Central Park Conservancy and New York City Parks, aligning with their long-standing commitment to ecological stewardship.

FINANCIAL STATEMENTS

The restoration of the Bow Bridge deck has revitalised this historic gem. Using Accoya, the bridge exemplifies how timeless design and modern innovation can coexist in perfect harmony.

Supplier: Rex Lumber Photography: Aaron Locke

For more Accoya projects go online to |

https://www.accoya.com/uk/projects

10 | Accsys Technologies PLC | Annual Report and Financial Statements 2025

Case Study | Accoya USA

ACCOYA USA COMMENCES OPERATIONS: LOCAL MANUFACTURING BASE TO SERVE NORTH

AMERICAN CUSTOMERS

Summary

• Accoya USA commercial operations commenced in September 2024

• A dedicated site to serve the large North American market

• Initial capacity of 43,000m3 with the potential to expand the site

16%

NORTH AMERICA TOTAL ACCOYA SALES VOLUME GROWTH YEAR-ON-YEAR

Expansion into one of the most attractive global markets

In Q2 FY25 Accsys celebrated a milestone achievement, with the successful commercialisation of Accoya USA

- the second Accoya production facility in the world, located in Kingsport, Tennessee, USA. The plant is a flagship joint venture project with Eastman Chemical Company (owned 60:40 by Accsys and Eastman).

Accsys' successful delivery of its international expansion enhances the customer experience, de-risks the Group and provides a strong foundation for sustainable and reliable growth.

With an estimated addressable market of 8.6m m3 (source: Principia report) and less than 1% current market share, the opportunity for Accoya in North America is huge.

To support the increased capacity Accsys has strengthened its investment in sales and marketing and increased distribution, growing sales with existing distributors and adding new distribution partners. This is driving results with good sales momentum, including a 16% year-on-year increase in total Accoya sales volumes from 9,068m3 to 10,562m3 in FY25. It has also led to Accoya being specified on high profile projects, such as the restoration of the historic Bow Bridge in New York's Central Park (p09) and the MOLLIE Hotel in Aspen Colorado (p19).

OVERVIEW

STR ATEGIC REPORT

From L-R: Steve Crawford, Eastman; Dr Jelena Arsic Van Os,

Accsys; Paul Mitchell, Eastman; Rod Graf, Accoya USA and Mark Bogle, Eastman

GOVERNANCE

North American production is a game changer for Accsys and our

FINANCIAL STATEMENTS

customers. It enables our customers to receive locally manufactured product, improving availability, reducing lead times and ensuring high standards of customer service."

John Alexander

Group Commercial Director, Accsys Technologies

12 | Accsys Technologies PLC | Annual Report and Financial Statements 2025

STRATEGIC REPORT

Accoya decking, Biarritz, France. Photography: © Grad

STR ATEGIC REPORT

GOVERNANCE

OVERVIEW

Strategic Report

14 CEO's Review

FINANCIAL STATEMENTS

20 Finance Review

26 Our Products

30 Our Market

32 Our Business Model

34 Our Strategy

40 Risk Management

46 Sustainability

56 TCFD Report

64 Stakeholder Engagement

14 | Accsys Technologies PLC | Annual Report and Financial Statements 2025

CEO's Review

ACCSYS IS AT AN INFLECTION POINT WITH A CLEARLY DEFINED STRATEGY TO CONTINUE DRIVING PROFITABLE GROWTH IN EARNINGS AND RETURNS

A year of significant progress and delivery on our promises.

We are actively transforming Accsys to unlock its long-term potential, maximising shareholder value."

Dr Jelena Arsic van Os

Chief Executive Officer

Financial performance: strong profitability growth and increased free cash flow generation. 125% increase in adjusted EBITDA from FY24.

OVERVIEW

In FY25 we delivered group revenues of €136.6m, in line with FY24 (€136.2m). This reflects strong growth in European sales that

Group revenue FY21-FY25 € million

10.8 m

fully replaced the sales volumes transferred to the Accoya USA JV, which represented 16% of our

Group volumes in FY24.

FY21 FY22 FY23 FY24 FY25

STR ATEGIC REPORT

Revenue 60% share of JV revenue

Aggregated revenues, inclusive of our 60% share of the JV revenue, were €147.4m, an 8% increase on FY24, driven by strong sales growth in Europe and North America.

Demand for Accoya continued to be resilient despite a difficult building materials market backdrop impacted by macroeconomic challenges.

Adjusted EBITDA was €10.8m for the year, reflecting an increase of €6.0m on the prior year. This came from efficiencies delivered by the business transformation

FINANCIAL STATEMENTS

programme, a favourable sales mix and lower costs associated with Tricoya UK, offset by higher costs arising from the ramp-up of the JV. Accordingly, the adjusted EBITDA margin improved from 3.5% to 7.3%. The underlying EBITDA from Group operations, excluding Tricoya UK and the JV, increased by €5.1m to €18.9m, highlighting the strength of, and cost discipline within, our core operations.

Group gross margin was 30.3% (FY24: 30.0%), resulting from

a favourable sales mix, and operational efficiencies.

Free cash flow (net cash flow from operating activities less CapEx) increased by €5.1m to €8.8m (FY24:

€3.7m), driven by higher underlying profitability.

Net debt of €42.6m at 31 March 2025, an increase of €5.5m from 31 March 2024 (€37.1m), reflects planned investment in the joint venture and increased inventory levels to support strong demand

and high levels of customer service. Despite an increase in net debt, the leverage ratio improved, in line with our strategic focus to deleverage the balance sheet, from 4.4x as

of 31 March 2024 to 2.5x as of 31 March 2025.

The Company has signed an 18-month extension to its

GOVERNANCE

primary debt facilities with ABN Amro extending the maturity to 30 September 2027.

16 | Accsys Technologies PLC | Annual Report and Financial Statements 2025

CEO's Review continued

FOCUS strategy

Since joining Accsys, I have focused on deeply immersing myself in

the business - engaging with our customers and suppliers, and meeting with colleagues and

investors across our global network. The insights gained through these interactions have been instrumental in shaping our FOCUS strategy, developed collaboratively by the Executive Committee in close partnership with the Board.

At our Investor Strategy Day in January 2025 - an event that was well received by both the market and our colleagues - we outlined our FOCUS strategy in detail, ensuring all stakeholders had a clear understanding of our roadmap to

delivering sustainable long-term value.

The strategy is to be delivered in stages:

• Phase 1 - 'Transform and Improve' (FY24-FY27): Focus on driving sustainable, profitable growth from existing assets, improving and maintaining cost efficiencies, and reducing debt.

• Phase 2 - 'Optimise' (FY28-30): Implementing operational

  efficiencies to achieve full capacity utilisation, and continued debt reduction driven by strong cash flow generation.

• Phase 3 - 'Grow' (FY30+): Pursue further growth opportunities supported by a strong

balance sheet.

Accsys is committed to continued innovation and to maintain its position as the preferred choice in the fast growing and sizeable global premium wood products market.

Our market share has huge growth potential. Accsys' current US market share being less than 1% of the addressable US decking, flooring, windows, doors and cladding market at 8.6m m3; and in Europe with

our 4% market share, the same commercial market is 1.5m m3*.

We are confident that our FOCUS strategy will enable us to capitalise on this significant market potential, delivering growth and sustainable profit progression, targeting an adjusted EBITDA margin of

12% by the end of Phase 1.

* Source: Principia report US and Poyry report Europe

FY25 strategic progress

During the year we were delighted to complete the launch of our successful international expansion, Accoya USA, Accsys' joint venture with Eastman Chemical Company at Kingsport, Tennessee. The joint venture, in which Accsys holds a 60% share has been commercially operational since September 2024, and the plant will serve the North American markets. Accoya USA replicates the technology from our Arnhem facility in the Netherlands and has sufficient capacity to support the growth planned for

the coming years, without having to incur any further substantial investment.

With increased capacity from our new USA facility as well as our recent expansion in Arnhem, we are well positioned to drive Accoya demand and sales acceleration, targeting a run rate of 100,000m3 sales volumes by the end of FY27.

In the USA, the team has been focused on driving sales volume through our new production facility. To support the ramp-up phase, we have expanded our commercial team and are adding further distribution partners to expand Accoya availability across the country, with a strategic focus on high-growth markets in Florida, Texas, and California.

To promote awareness of Accoya products, the US team is providing training to architects across America, delivering over 50 CEUs (Continuing Education Units)

in FY25 and replicating the strong architect education programme that has driven success in the UK market; the team is also promoting Accoya at key architectural events, including the America Institute of Architecture conference in Boston.

Total Sales volumes: Double digit sales growth

Total sales volumes increased by 13%, demonstrating strong product demand and investment in our commercial team. In the UK and Ireland we achieved particularly strong volume growth of 27% year-on-year as our additional capacity gave customers confidence in supply and availability. In the Rest of Europe, volumes were up 16% year-on-year, with growth seen across both Northern and Southern regions demonstrating the attractiveness of Accoya's resilience in hot and cold climates.

Our performance in Europe means we are seeing good returns from our assets in Arnhem and Barry, which are operating at gross margins of circa 30%. Arnhem has already fully replaced the sales transferred to the JV, with the demand coming from Europe and other regions.

Our investment in a new planing facility at Barry supports strong sales growth of 34% year-on-year for Accoya Color, our unique coloured-to-the-core product, popular for decking and cladding. The equipment will enable us to produce more higher margin finished decking product for our customers going forward.

Demand for Accoya for Tricoya was in line with last year and remains one of our core product ranges with 27% of total sales. We remain fully committed to developing the Tricoya proposition with our partners.

We continue to focus on maintaining premium pricing. Whilst there was a decrease of 1.7% in Group average selling price (ASP), due to the transfer of higher priced North America sales volumes to the JV, looking at total sales of Accoya worldwide, the ASP increased by 1.2%.

In FY25, Accoya made its mark on standout global projects - from the roofing of the NEMO museum in Amsterdam, restoration of New York's iconic Bow Bridge, where Accoya was chosen for its durability

and stability under heavy foot traffic, to elevating the façade of the upscale Mollie Hotel in Aspen with a finish that blends beauty and durability in alpine conditions. Buildings for major brands like Marks & Spencer and Mountain Warehouse also featured Accoya for its low-maintenance, natural appeal.

Accoya continues to be recognised by high-profile industry awards: Accoya fenders used for flood protection in the River Thames won the "Excellence in Sustainability - Product award" at the London Construction Awards (LCA).

Alongside our focus on sales and marketing, we have continued to maintain strong operational cost discipline and drive efficiencies.

OVERVIEW

In FY25 we reaped the benefits from our leaner and simplified operational model, achieved through our business transformation programme. In total we delivered operational cost savings of €4.6m, arising from this programme and the Solid Roots operational efficiency initiative in Arnhem, exceeding our target.

STR ATEGIC REPORT

Health & Safety (HSE)

Health & Safety is a top priority for the Board. Accsys has set 'Zero Harm' as a key target for our operations and is committed to developing best practice HSE across the Company. In FY25, we began the roll out of our Life Saving Rules programme: nine rules for high-risk activities to ensure the safety and wellbeing of our colleagues.

Innovation and supply chain

Investment in developing our product is a core component of our FOCUS strategy and vital to our customers. This year we invested €1.2m in R&D with a focus on alternative wood species, expanding Accoya Color and fire protection. Earlier this year we were pleased to announce Accoya's compliance with the Wildland Urban Interface (WUI) in the USA. This means Accoya cladding can now be used on buildings in designated WUI areas, which are expanding rapidly across the United States.

GOVERNANCE

Sustainability: At the heart of our business

Developing our business in a responsible and sustainable way is core to our vision, values and strategy. We are very proud to have achieved a +11 point increase in our S&P Corporate Sustainability Assessment this year. Our achievement reflects our significant efforts on ensuring that we have transparent reporting and a high standard of corporate governance policies and procedures.

FINANCIAL STATEMENTS

Unusual Rigging HQ, Northamptonshire, UK. Photography: Rachel Ferrimen

18 | Accsys Technologies PLC | Annual Report and Financial Statements 2025

CEO's Review continued

This score positions Accsys within the top 20% of companies in our industry sector.

2

During FY25 we captured 51,244 tonnes of CO in our products, equivalent to 6,882 homes' energy use in a year; we are committed to responsible sourcing and zero deforestation and sourced 100% of our raw wood from sustainably certified sources (through FSC®, PEFC, or equivalent) for all our sites.

See Sustainability Report for a full overview of our progress in the year | Page 46

Employee career development and engagement

Our success is driven by the determination and hard work of our team. I am pleased to work with talented and motivated colleagues. Their dedication to our

business is reflected in the results of our latest Employee Engagement Survey. An impressive 72% of colleagues said they feel proud to work for Accsys, 73% are satisfied with their job and 75% feel happy about their work.

We are deeply committed to employee development and have launched several initiatives in FY25. This includes

a new Learning Management platform and a Technical Training Academy to upskill our operators, opening up career development opportunities. In FY25, we are proud to have provided an average of 32.8 training

hours per employee, underscoring our commitment to continuous development.

To enhance our employer value proposition we have also launched initiatives including a wellness

initiative at our Arnhem site and employee award and recognition programmes.

I am taking this opportunity to thank all of our colleagues for their dedication and commitment, which continues to make a meaningful difference for the Company.

OVERVIEW

CASE STUDY

ACCOYA WOOD CHOSEN FOR THE MOLLIE HOTEL

Aspen, Colorado, USA

STR ATEGIC REPORT

Accoya was selected as the cladding material for the newly opened MOLLIE Hotel in Aspen, Colorado, a boutique hospitality project that combines luxury with longevity in one of North America's most demanding climates.

Located in the heart of the Rocky Mountains, the MOLLIE Hotel faces extreme weather conditions including heavy snowfall, high UV exposure, and wide temperature variations. To meet these challenges, the project team, led by CCY Architects, working closely with premium cladding manufacturers,

Delta Millworks, chose Accoya wood for its proven durability, dimensional stability, and low maintenance requirements.

GOVERNANCE

The architectural team, led by CCY Architects, carefully selected materials that could endure these environmental extremes while maintaining an aesthetic of understated luxury. Accoya wood was chosen for the building's cladding, not just for its exceptional performance in harsh climates, but also for its ability to blend seamlessly with the natural

surroundings. Treated with a custom Barnwood Ivory finish by Delta Millworks, the cladding gives the hotel a timeless, rustic appearance while ensuring long-lasting durability.

Since its opening, the MOLLIE Hotel has quickly become a standout destination in Aspen. Its seamless integration of history, design, and sustainability has earned it numerous accolades, including recognition from the Hospitality Design Awards and AHEAD 100.

FINANCIAL STATEMENTS

Architect: CCY Architects

Location: Aspen, Colorado, North America Supplier: Delta Millworks

Photography: Draper White

For more Accoya projects go online to |

https://www.accoya.com/uk/projects

20 | Accsys Technologies PLC | Annual Report and Financial Statements 2025

Finance Review

Strong improvement in adjusted EBITDA profitability and free cash flow generation."

Sameet Vohra

Chief Financial Officer

† Accsys has a 60% shareholding in Accoya USA, a joint venture (JV) with Eastman Chemical Company. Whilst the JV is equity accounted for financial reporting purposes; the aggregated revenue figure includes 60% of the JV revenue.

# Adjusted EBITDA is Group earnings before interest, tax, depreciation, amortisation and exceptional items, plus 60% of the US JV's EBITDA.

‡ Free cash flow is Group net cashflow from operating activities less CapEx.

^ Adjusted EBITDA margin is adjusted EBITDA divided by aggregated revenue.

* Total Accoya sales volumes include Group sales volumes and 100% of sales volumes from the JV.

2025

€147.4m

2024

€136.2m

AGGREGATED GROUP REVENUE

€147.4m

+8.2%

Statement of comprehensive income

Total Accoya sales volumes increased by 13% to 63,864m3 (FY24: 56,568m3).

Group sales volumes increased by 1% to 57,104m3 (FY24: 56,568m3)

which reflects that, following the commercial-start-up of Accoya USA, North American sales previously sold by the Group, are now being sold by the JV, which is equity accounted for in the financial statements.

Group revenue for the year increased to €136.6m (FY24: €136.2m), in line with the increase in Group sales volumes. Tricoya panel revenue decreased by €0.4m during the year to €3.7m (FY24: €4.1m), representing Accsys purchasing and selling of Tricoya panels produced by our Accoya for Tricoya customers.

Other revenue, which predominantly relates to the sale of our acetic

acid by-product into the acetyls market, decreased by 3.4% to

€8.5m (2024: €8.8m) primarily due to lower acetic acid sales prices and lower sales volumes arising from acetic anhydride production usage efficiencies. These sales act as a partial hedge to acetic anhydride costs which also decreased during the year.

Cost of sales remained in line with last year, with the 1% higher sales volumes being offset by lower acetic anhydride costs and favourable

raw wood pricing. Net acetyls costs (proportional combination of acetic anhydride cost and acetic acid sales price) decreased on the prior year. Gross profit of €41.4m was 1% higher than the prior year (FY24: €40.9m) and gross profit margin was 30bps higher at 30.3%, which is above our strategy target of maintaining the gross margin at above 30%.

Underlying other operating costs (excluding depreciation and amortisation) decreased from

€32.3m to €24.6m. This is due to a decrease in Tricoya UK's operating costs following the decision to discontinue the Hull plant (€2.1m of non-exceptional Hull related costs in FY25 compared to €5.3m in FY24), and lower operating costs in the Group arising from the business transformation programme and Solid Roots initiative. Accordingly, underlying other operating costs, excluding Hull, were €4.6m lower than the prior year.

The depreciation and amortisation expense for the year was €9.2m compared to €9.6m in the prior year.

Underlying net finance expenses increased by €1.4m to €5.7m due to the annualised effect of higher

interest rates on the convertible loan notes which were taken out as part of the November 2023 equity raise.

Following the Board's decision in September 2024 to discontinue the Hull plant, and the subsequent placement of Tricoya UK Ltd into

voluntary liquidation on 17 December 2024, the following items have been recognised as exceptional items in the year:

• An impairment loss (exceptional non-cash item) of €18.3m was recognised reflecting the full impairment of the remaining Tricoya segment assets related to the Hull plant (FY24: €7.0m).

• Hull closure costs (exceptional cash item) of €4.1m.

• A €10.4m gain from the deconsolidation of Tricoya UK Ltd, at the point of loss of control

  when the Company was handed to the liquidators.

• The release of the financial liability of €1.1m raised for the Value Recovery Instrument (see note 22).

The Group's share of the Accoya USA JV's (Accoya USA LLC) net loss, which is accounted for using the equity method, increased by €7.8m to €11.9m (FY24: net loss €4.1m) as the JV increased its pre-operating activity and commenced commercial operations. The Group's share of the JV's EBITDA was a loss of €6.0m compared to a loss of €3.7m in the prior year.

Underlying EBITDA, excluding the share of the loss from the JV and exceptional costs, increased by 98% from €8.5m to €16.8m, a margin of 12.3% showing the strong underlying profitability of the Group. Adjusted EBITDA increased significantly to

€10.8m compared to €4.8m in the prior year. Accordingly, the adjusted EBITDA margin increased by 380bps from 3.5% to 7.3%.

2025

€10.8m

OVERVIEW

ADJUSTED EBITDA

€10.8m

STR ATEGIC REPORT

+€6.0m

2025

€42.6m

2024

€37.1m

NET DEBT

€42.6m

FINANCIAL STATEMENTS

GOVERNANCE

(€5.5m)

22 | Accsys Technologies PLC | Annual Report and Financial Statements 2025

Finance Review continued

The underlying loss before tax increased slightly by €0.5m to

€9.9m (FY24: loss of €9.4m).

After considering exceptional items (including the impairment loss

and restructuring cost), the loss before tax amounted to €20.8m (FY24: €17.1m).

The tax charge of €2.0m was higher than the prior year (€1.2m) in line with the improved underlying profitability of the Group during the year.

The underlying loss per share increased to €0.05 per share (FY24: loss of €0.04 per share). A statutory loss per share was recognised of €0.10 per share (FY24: €0.08 per share).

Cash flow

Net cash flows from operating activities increased by €3.5m to

€10.7m (FY24: €7.2m), resulting from the higher underlying EBITDA during the year, representing an operating cash flow conversion rate of 64% (FY24: 84%). The net working capital cash outflow amounted to €7.0m compared to a cash out flow of €1.8m in FY24. Inventory levels increased by

€5.0m to ensure product availability to support strong demand and high levels of customer service.

Plant and machinery additions of

€1.8m (FY24: €3.1m) consisted primarily of maintenance CapEx for the Arnhem plant.

Free cash flow (net cash flow from operating activities less CapEx) increased to €8.8m compared to

€3.7m in FY24.

Financial position

At 31 March 2025, the Group held cash of €17.4m, a €10.0m decrease in the year, due to planned investment in the US joint venture and higher inventory levels, offset by the increased cash generated from operating activities.

Net debt increased by €5.5m in the year to €42.6m (FY24: €37.1m) primarily due to the planned

cash investment into the US joint venture (€14.5m), higher inventory levels (€5.0m), CapEx (€1.9m) and interest paid/capitalised interest on borrowings (€4.3m), offset by the positive operating cash flow generated during the year and elimination of non-recourse debt in Tricoya UK Ltd (€7.1m).

Gross borrowings decreased by

€4.5m to €55.7m during the year (2024: €60.2m) following the elimination of the non-recourse Tricoya UK Ltd NatWest debt as the company is no longer consolidated with the Group (€7.1m) following

it being placed into voluntary liquidation, offset by accrued interest on the convertible loan notes of €1.9m.

The leverage ratio (net debt to underlying EBITDA) improved to 2.5x compared to 4.4x in the prior year.

2025

€8.8m

FREE CASH FLOW

€8.8m

(Net cash flow from operating

activities less CapEx)

+€5.1m

2025

€10.7m

2024

€7.2m

NET CASH FLOWS

€10.7m

(From operating activities)

+€3.5m

M&S Food Store - Willowburn Retail Park. Photography: Two Fresh

For more Accoya projects go online to |

https://www.accoya.com/uk/projects

CASE STUDY

STR ATEGIC REPORT

OVERVIEW

ACCOYA BRINGS DURABILITY AND SUSTAINABILITY TO UK RETAIL PARK

Northumberland, United Kingdom

GOVERNANCE

Willowburn Retail Park, developed by Northumberland Estates - one of the largest and most active developer landlords in the North East - is located in the historic market town of Alnwick, Northumberland. This modern retail destination is easily accessible via the adjacent A1.

Spanning 3,475m2 of retail floorspace, Willowburn Retail Park features a diverse range of well-known brands and independent retailers, including Marks & Spencer, B&M, Starbucks and Turnbull's Butchers & Deli, which showcases local produce.

Designed by Projekt Architects, the development prioritises sustainability and aesthetic appeal while complementing the natural beauty of North Northumberland. To achieve a long-lasting, low-

FINANCIAL STATEMENTS

maintenance, and visually striking façade for the retail units, Accoya cladding was specified.

Phase one of the project was completed in 2019, and five years later, Accoya continues to perform exceptionally well, retaining its aesthetic appeal without twisting, warping or discolouration.

Architect: Projekt Architects

Location: Alnwick, Northumberland, UK Supplier: James Latham

24 | Accsys Technologies PLC | Annual Report and Financial Statements 2025

Finance Review continued

Going concern

The consolidated financial statements are prepared on a going concern basis, which assumes that the Group will continue in operational existence for the foreseeable future, and at least for the 12 months from the

date these financial statements are approved (the 'going concern period'). As part of the Group's

going concern review, the Directors have assessed the Group's trading forecasts, working capital and liquidity requirements, and bank facility covenant compliance for

the going concern period under a base case scenario and a severe but plausible downside scenario.

The cash flow forecasts used for the going concern assessment represent the Directors' best estimate of trading performance and costs based on current agreements, market experience and consumer demand expectations. These forecasts indicate that, in order to continue

as a going concern, the Group is dependent on achieving a certain level of performance relating to the production and sale of Accoya, and the management of its working capital.

The Directors have also considered the possible quantum and timing

of any funding required to ramp up Accoya USA's operations. Accsys has a contractual obligation to fund its 60% share of Accoya USA LLC on

a pro rata basis with its JV partner (Eastman Chemical Company). This funding has been considered in both scenarios.

The Group is also dependent on the Group's financial resources including its existing cash position and banking facilities (see note 28 for details).

The Directors considered a severe but plausible downside scenario against the base case

with reduced Accoya sales volumes and increased funding into Accoya USA LLC. Furthermore, a reverse stress test was performed to determine the decrease in Group sales volumes required to breach banking covenants. The Directors do not expect the assumptions in the severe but plausible downside scenario or the reverse stress test scenario to materialise, but should they unfold, the Group has several mitigating actions it can implement to manage its going concern risk, such as deferring discretionary

capital expenditure and implementing

further cost reductions to maintain a sufficient level of liquidity and

covenant headroom during the going concern period. The combined impact of the above downside scenarios

and mitigations does not trigger a minimum liquidity or covenant breach at any point in the going concern period. In the reverse stress test,

a decrease of approximately 14% on Group sales volumes compared to the prior year or a decrease of approximately 24% compared to the equivalent base scenario period was required to reach the minimum liquidity breach point.

The Directors believe that while some uncertainty always inherently remains in achieving the budget, in particular in relation to market conditions outside of the Group's control, after carefully considering all the factors explained in this statement, there

is sufficient liquidity and covenant headroom such that there is no material uncertainty with respect to going concern. Accordingly the financial statements have been prepared on a going concern basis.

Sameet Vohra

Chief Financial Officer 23 June 2025

STR ATEGIC REPORT

FINANCIAL STATEMENTS

GOVERNANCE

OVERVIEW

ABB Emotion building, Switzerland. Distributor: Holzpur AG. Photography: © R. Dürr, Zurich Supplier

Adjusted EBITDA FY21-FY25

€ million

€22.9m

€10.1m

€10.4m

€10.8m

€4.8m

FY21

FY22

FY23

FY24

FY25

26 | Accsys Technologies PLC | Annual Report and Financial Statements 2025

Our Products

Silt Hotel and Casino, Middelkerke, Belgium. Photography: Stefan Steenkiste

With over 20 years of innovation and experience, Accoya stands as the global leader for high-performance wood. Our patented modification process enables wood to withstand harsh exterior elements and accentuates

its natural beauty, strength and character. Acetylation is a proven science for modifying wood, permanently transforming the cell structure to create wood that is virtually unaffected by water. We have perfected our exclusive manufacturing process to produce the best option in performance building materials.

Tricoya is a high-performance exterior MDF panel which can be used in the most extreme environments. With exceptional dimensional stability and durability, Tricoya products open up unprecedented solutions in design and application, unrivalled in performance with a longer lifespan and low ongoing maintenance.

The functionality and versatility of wood-based panels give them universal appeal but previously, the suitability of MDF panels for exterior and indoor constant wet

use environments has been limited. Many of the benefits observed in Accoya wood, including enhanced dimensional stability, durability and fungal resistance,

hold true for Tricoya. All the freedom of MDF but with the Tricoya difference.

STR ATEGIC REPORT

FINANCIAL STATEMENTS

GOVERNANCE

OVERVIEW

LIMITLESS DESIGN POSSIBILITIES

28 | Accsys Technologies PLC | Annual Report and Financial Statements 2025

Our Products continued

STABLE, DURABLE, VERSATILE AND SUSTAINABLE

Acetylation is a proven science for modifying wood, permanently

Watch our video on the acetylation process to find out more: https://youtu.be/uNqehEm_mPo

transforming the cell structure to create wood that is virtually unaffected by the intake of water. We have perfected our exclusive manufacturing process to produce the best option in performance building materials.

Accsys' proprietary acetylation technology