Synthomer : Presentation (1.4MB)

Solid performance with strong strategic delivery in a challenging year

Synthomer plc | Full year 2022 results

28 March 2023

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The information contained in these materials in relation to Synthomer plc ("Synthomer" or the "Group") and its subsidiaries has been prepared solely for use at this presentation. The presentation is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction.

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Percentages in these materials have been rounded and accordingly may not add up to 100 per cent. Certain financial data have also been rounded. As a result of this rounding, the totals of data presented in these materials may vary slightly from the actual arithmetic totals of such data.

AGENDA

01 Overview - Michael Willome

• 02 Financial review - Lily Liu

• 03 Business review - Michael Willome

• 04 Outlook and summary - Michael Willome

• 05 Q&A

Solid performance with strong strategic progress

Delivering in a challenging macro environment

Robust H1 trading deteriorated over H2

• • Unprecedented destocking in NBR

• • Weakening macro demand environment

• • Record energy and raw material prices

• • Supply chain disruption

  Significant actions taken in response

  • • Launched new strategy in October

  • • First non-core divestment announced December with $267m net cash proceeds

  • • Completed refinancing with banks; covenant headroom and liquidity extended

    • • Increasingly specialty business with niche leadership positions

    • • Aligned to attractive GDP+ markets, supported by megatrends

    • • Global footprint for the first time

• • Solid trading in most divisions and good cash management (supported by resilient pricing/pass through), offset by PE declines

• • Reliability and capacity issues in adhesives, resulting in a goodwill impairment

• • Reduced capex, working capital and identified further cost efficiencies

• • On track for £150-200m cash savings by end 2023

• • Capital allocation rigorously re-prioritised

• • Plan to deliver significant EBITDA margin improvement: 15%+ target (2022: 10.5%)

• • Substantial upside as markets recover, particularly in Health and Protection

• • Reviewing options for remaining non-core business portfolio

Synthomer plc 2022 Full Year Results

4

AGENDA

01 Overview - Michael Willome

02 Financial review - Lily Liu

• 03 Business review - Michael Willome

• 04 Outlook and summary - Michael Willome

• 05 Q&A