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Morgan Advanced Materials plc 2025 Interim Results Damien Caby, Chief Executive Officer Richard Armitage, Chief Financial Officer 7 August 2025
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© Morgan Advanced Materials Disclaimer This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of the Group. Although the Group believes that the expectations reflected in such forward-looking statements are reasonable, these statements are not guarantees of future performance and are subject to a number of risks and uncertainties and actual results. Performance and events could differ materially from those currently being anticipated, expressed or implied in such forward-looking statements. Factors which may cause future outcomes to differ from those foreseen in forward-looking statements include, but are not limited to, those identified in the “Principal Risks and Uncertainties” section of the Group’s Annual Report. The forward-looking statements contained in this presentation speak only as of the date of preparation of this presentation and the Group therefore cautions against placing undue reliance on any forward-looking statements. Nothing in this presentation should be construed as a profit forecast. Except as required by any applicable law or regulation, the Group expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained in this presentation to reflect any change in the Group’s expectations or any change in events, conditions or circumstances on which any such statement is based. This presentation does not constitute or form part of any offer or invitation to purchase any securities of any person nor any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any such securities. 2
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© Morgan Advanced Materials Agenda 1. INTRODUCTION & MARKET CONTEXT 2. FINANCIAL PERFORMANCE 3. OPERATIONAL REVIEW & OPPORTUNITIES 4. CONCLUDING REMARKS AND Q&A 3 Interim Results 2025 Richard Armitage, CFO Damien Caby, CEO
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© Morgan Advanced Materials Interim Results 2025 Revenue in-line with expectations in difficult markets; good progress across operational priorities 4 Revenue down 5.8% (OCC), in-line with continued soft markets Simplification programme progressing well Annual run-rate benefits of £24 million during 2025 and £27 million during 2026 as expected Semiconductor investment substantially complete; flexibility retained to increase capacity further as market demand recovers Adjusted operating profit margin of 11.1% Business simplification and other cost measures partly offset weaker markets, particularly in Semiconductor Challenging conditions as expected; signs of stabilisation1 2 3 4 5
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© Morgan Advanced Materials Interim Results 2025 End markets challenging; signs of stabilisation 5 4.2% 8.0% 4.4% 11.1% 13.8% 5.7% Clean Energy and Transportation Healthcare 35.1%Semiconductor 1.5%Conventional Transportation Petrochemical and Chemical Security and Defence Conventional Energy Industrials and Metals • Faster growing markets down 17.2% • Slow down and destocking in silicon carbide semicon • Progressive uptick in silicon semicon • Temporary decline in Healthcare due to inventory adjustments and shifts in product mix • Core markets down 2.5% • Strong growth in Security and Defence • Aerospace continues to perform well, offsetting weaker conditions in Automotive • Industrial and Metals, and Petrochemical and Chemical weak • Signs of stabilisation; up 4% sequentially
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© Morgan Advanced Materials 6 Financial Performance Richard Armitage, CFO
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© Morgan Advanced Materials 7 Revenue £522.6m (5.8)% OCC1 Core Markets Faster Growing Markets OCC1 revenue (5.8)% £522.6m H1 ‘24: £572.6m 52% Global Industrial, Metals, Oil and Gas, Energy, Transportation 28% Aerospace, Defence, Fire Protection, India 20% Semiconductors, Healthcare, Clean Energy and Clean Transportation Adj. operating profit2 £58.0m H1 ‘24: £71.3m Adj. operating profit2 margin 11.1% H1 ‘24: 12.5% Adj. earnings per share3 10.8p H1 ‘24: 14.7p Free cash flow5 £1.2m H1 ‘24: £(7.9)m 1 OCC represents ‘organic constant currency’ is revenue growth excluding the impact of acquisitions and divestments and foreign currency impacts. 2 Adjusted operating profit is statutory operating profit, adjusted for specific adjusting items and amortisation of intangible assets. 3 Adjusted EPS is calculated using adjusted operating profit, with further adjustments to add back net financing costs, income tax expense and non-controlling interests, divided by the weighted average number of ordinary shares during the period. 4 Return on capital is calculated as group adjusted operating profit as a ratio of average adjusted net assets (excluding long-term employee benefits, deferred tax assets and liabilities, current tax payable, provisions, cash and cash equivalents, borrowings, bank overdrafts and lease liabilities.) 5 Free cash flow is calculated as cash generated from continuing operations, adjusted for net capital expenditure, net interest on cash and borrowings, tax paid and lease payments and interest. Return on invested capital4 16.2% H1 ‘24: 19.7% Interim Results 2025 Resilient performance in challenging markets
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© Morgan Advanced Materials £11.4m £9.1m (£4.6m) (£29.2m) £71.3m £66.7m £58.0m H1 ’24 Adj. Operating Profit (Reported) FX H1 ’24 Adj. Operating Profit (OCC) Volume & Mix Efficiency Simplification & Other H1 ’25 Adj. Operating Profit (Reported) (13.0)% • Profit impacted by a 9% decline in volume reflecting weak markets, and adverse sales mix • Self-help initiatives continue with significant efficiencies achieved • Simplification programme on track; further progress expected in H2 • FX headwinds expected to persist into H2 Interim Results 2025 Adjusted operating profit supported by efficiency and simplification benefits 12.5% 11.1% Adj. margin Adj. margin OCC1 growth% 1 OCC represents ‘organic constant currency’ is revenue growth excluding the impact of acquisitions and divestments and foreign currency impacts. 8
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© Morgan Advanced Materials 9 Interim Results 2025 Segmental performance 1 OCC represents ‘organic constant currency’ is revenue growth excluding the impact of acquisitions and divestments and foreign currency impacts. 2 Adjusted operating profit is statutory operating profit, adjusted for specific adjusting items and amortisation of intangible assets. Revenue £m OCC1 growth Adjusted operating profit2 £m Margin % H1 ‘25 H1 ‘24 % H1 ‘25 H1 ‘24 H1 ‘25 H1 ‘24 Thermal Products 195.5 221.5 (8.0)% 15.7 24.2 8.0% 10.9% Performance Carbon 154.1 178.9 (11.2)% 25.1 31.3 16.3% 17.5% Technical Ceramics 173.0 172.2 2.6% 20.2 18.8 11.7% 10.9% Corporate costs - - (3.0) (3.0) - - Group 522.6 572.6 (5.8)% 58.0 71.3 11.1% 12.5% • Thermal Products impacted by weak industrial and metals markets • Performance Carbon decline driven by Semiconductor, slight offset from Petrochemical & Chemical and Security & Defence • Technical Ceramics growth supported by demand in Aerospace and Security and Defence
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© Morgan Advanced Materials 10 Interim Results 2025 Free cash flow to improve in H2 as Semicon investment completes H1 ’25 H1 ‘24 EBITDA 78.9 92.6 Change in working capital (4.7) (22.0) Net capital expenditure (40.5) (44.6) Net interest (9.0) (7.3) Tax paid (12.5) (16.0) Lease payments & other items (5.1) (7.0) Exceptional costs (15.3) (3.6) Free cash flow 1.2 (7.9) Acquisitions - (4.9) Dividends paid (19.1) (19.1) Dividends paid – non controlling interests (1.5) (2.3) Share buyback (8.8) - Foreign exchange 6.9 (1.4) Other items (1.6) (1.5) Net cash flow (22.9) (37.1) Closing net debt excl. lease liabilities (249.1) (222.3) Net debt (excl. lease liabilities)/EBITDA 1.7x 1.3x Working capital outflow £(4.7)m H1 ‘24: £(22.0)m Capital investment £40.5m H1 ‘24: £44.6m Free cashflow £1.2m H1 ‘24: £(7.9)m Net debt/EBITDA 1.7x H1 ‘24: 1.3x
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© Morgan Advanced Materials 11 Interim Results 2025 Specific adjusting items H1 ‘25 H1 ‘24 Costs associated with the cyber security incident - £1.1m Business simplification programmes £10.7m £2.3m Global ERP; design, configuration, customisation and implementation £5.6m - Total charged to specific adjusting items £16.3m £3.4m 11
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© Morgan Advanced Materials 12 Interim Results 2025 Business simplification is driving meaningful P&L benefit 4 10 17 28 17 21 17 20 3 4 4 10 Manufacturing sites 202560 85 Manufacturing sites 2016 Progressively consolidated site footprint Leaner and more efficient management structure Remains closely connected to the customer FY23 FY24 FY25 FY26 FY27 Incremental adjusted operating profit¹ £1m £8m £24m £27m £27m Costs charged to specific adjusting items £(7)m £(13)m £(20)m £(5)m £(45)m Annual benefit £27.0m from end 2026 (vs. 2023 baseline) Total cost to deliver £45.0m 1 Adjusted operating profit is statutory operating profit, adjusted for specific adjusting items and amortisation of intangible assets.
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© Morgan Advanced Materials Interim Results 2025 Capital investment normalises from 2026 £51m £44m £45m £45m £15m £5m £6m £15m £30m £21m £4m 2024 2025 2026 2027 £96m £70m £55m £60m Maintenance Other capacity Semiconductor Capital investment profile 13 • Semiconductor investment reduced to match capacity with demand • Flexibility to increase investment in Semiconductor capacity, as markets recover • Scope retained to invest in capacity to support other growth markets
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© Morgan Advanced Materials 14 Interim Results 2025 Technical Guidance for 2025 c. £70mCapital expenditure c. £18 - 20m Net finance charge: Interest charges (c. £16-17m) IAS 19 pensions net interest charge (c. £0.5m) IFRS 16 lease interest (c. £2m) 26 – 28%Effective tax rate c. 2.5x earnings coverDividend Policy in the medium term See slide 26Foreign currency impacts
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© Morgan Advanced Materials 15 Operational review and opportunities Damien Caby, CEO
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© Morgan Advanced Materials 16 Interim Results 2025 The global leader in advanced ceramics and carbon Diversified end markets; global mega trends Technology & application science leadership Agile and market driven Strong brand & customer loyalty Robust financials • Carbon reduction, electrification • Healthcare • Power electronics • Product quality • Brand strength • Product qualification or certification • Strong margin and ROIC profile • Simplification track record • Disciplined capital allocation • Customer centric solution development • Application knowledge & Solution engineering • Market backed technology roadmaps • Decentralised model • Customer proximity • Financial accountability
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© Morgan Advanced Materials Interim Results 2025 Opportunity to unlock significant value • Increase operational gearing • Simplify the Group further 17 Operational excellence and simplification • Improve procurement processes • Optimise product flows • Enhance delivery reliability Supply chain performance • Scale capacity incrementally • Increase share of system supply Growth in targeted high-value areas • Ample advanced materials universe • Focus on strong adjacencies Strategic focus on high quality, high growth Building on strong foundations to accelerate growth
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© Morgan Advanced Materials 18 Interim Results 2025 Financial framework Organic revenue growth + Continuing profit growth + Accretive M&A + Additional shareholder returns = Enhanced EPS growth Delivering enhanced EPS growth Clear through cycle financial framework 4-7% organic revenue growth 12.5% to 15% adjusted operating profit margin ROIC 17-20% Leverage of 1.0x to 2.0x Enhanced EPS growth
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© Morgan Advanced Materials 19 Interim Results 2025 Outlook • We are cautious about demand in a number of our end-markets as the geopolitical and economic environment remains uncertain • Revenue guidance for the full year remains unchanged, with organic constant currency revenue expected to decline by a mid single-digit percentage level. This assumes that the market stabilisation seen in the first half of this year continues, but with no expectation of recovery in the second half • We expect profitability to be around the bottom end of the consensus range, impacted by weak market conditions, mix effects and foreign exchange headwinds • Our expectation is for free cash flow to normalise during the second half of the year as investment in semiconductor capacity and our simplification programme are now both nearing completion. This will assist in a return to leverage (net debt*/EBITDA excl. lease liabilities*) of 1.5 times by the end of the year • As we look towards 2026, although we note early signs of stabilisation we remain cautious about end-market demand given the ongoing external uncertainty. We expect to commission the new semiconductor capacity during 2026 and will incur one-off startup costs of approximately £7 million as a result
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© Morgan Advanced Materials Interim Results 2025 Key takeaways Revenue in-line despite challenging market backdrop Leaner and more efficient business Strong foundations and significant further opportunities Well positioned to grow and expand margins as markets recover 20
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Appendix © Morgan Advanced Materials 21
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© Morgan Advanced Materials Interim Results 2025 Financial calendar 22 Event Date Trading update Early November 2025 Strategy update Early December 2025 FY 2025 results February 2026
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© Morgan Advanced Materials All figures are shown on a pre-IFRS16 basis to align more closely to banking covenants. Net cash and cash equivalents is defined as cash and cash equivalents less bank overdrafts. © Morgan Advanced Materials 0 50 100 150 200 250 300 350 400 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Private placement Bank term debt Revolving credit facility Facilities maturity profile Headroom on banking covenants • Net debt to EBITDA excluding the impact of IFRS 16: 1.7x (FY2024: 1.4x) Significant liquidity • £216m available RCF plus available net cash and cash equivalents of £84.4m Average cost of long-term debt = 3.6% £m Interim Results 2025 Strong balance sheet and available liquidity 23
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© Morgan Advanced Materials Interim Results 2025 Foreign currency impacts The principal exchange rates used in the translation of the results of overseas subsidiaries were as follows: For illustrative purposes, the table below provides details of the impact on H1 2025 revenue and adjusted operating profit1 if the actual reported results, calculated using H1 2025 average exchange rates, were restated for GBP weakening by 10 cents against USD in isolation and 10 cents against the Euro in isolation: 1 1 Adjusted operating profit is before specific adjusting items and amortisation of intangible assets. Increase in H1 2025 revenue/adjusted operating profit if: Revenue Adjusted operating profit1 £m £m GBP weakens by 10c against USD in isolation 20.5 2.3 GBP weakens by 10c against the Euro in isolation 9.6 1.5 H1 2025 H1 2024 GBP to: Closing rate Average rate Closing rate Average rate USD 1.37 1.30 1.26 1.27 Euro 1.16 1.19 1.18 1.17 24
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© Morgan Advanced Materials £m H1 2025 H1 2024 Profit for the period attributable to shareholders of the Company 15.0 37.4 Profit from discontinued operations - - Profit from continuing operations 15.0 37.4 Specific adjusting items 16.3 3.4 Amortisation of intangible assets 0.5 1.1 Tax effect of the above (1.5) (0.4) Non-controlling interests' share of the above adjustments - - Adjusted earnings 30.3 41.5 Weighted average number of shares in the period 280.8 284.4 Adjusted earnings per share (pence) 10.8 14.7 25 Interim Results 2025 Adjusted earnings per share
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© Morgan Advanced Materials Interim Results 2025 Reported statutory figures R esul ts bef or e sp e cific ad justing ite ms Sp e cific ad justing ite ms Total R esul ts bef ore speci f i c adj usti ng i tems S peci f i c adj usti ng ite ms To ta l Revenue 522.6 - 522.6 572. 6 - 572. 6 Operati ng costs bef ore amorti sati on of i ntangi bl e assets ( 464. 6) ( 16. 3) ( 480. 9) ( 501. 3) ( 3. 4) ( 504. 7) Profit from operations before amortisation of intangible assets 58.0 ( 16.3) 41.7 71. 3 ( 3. 4) 67. 9 A morti sati on of i ntangi bl e assets ( 0. 5) - ( 0. 5) ( 1. 1) - ( 1. 1) Op e rating p rofit 57.5 ( 16.3) 41.2 70. 2 ( 3. 4) 66. 8 Net f i nanci ng costs ( 10. 8) - ( 10. 8) ( 9. 3) - ( 9. 3) Profit b e fore taxation 46.7 ( 16.3) 30.4 60. 9 ( 3. 4) 57. 5 I ncome tax ex pense ( 12. 8) 1. 5 ( 11. 3) ( 15. 8) 0. 4 ( 15. 4) Profit from continuing operations 33.9 ( 14.8) 19.1 45. 1 ( 3. 0) 42. 1 Prof i t f rom di sconti nued operati ons - - - - - - Profit for the p e riod 33.9 ( 14.8) 19.1 45. 1 ( 3. 0) 42. 1 Prof i t f or the peri od attri butabl e to: S harehol ders of the Company 29. 8 ( 14. 8) 15. 0 40. 4 ( 3. 0) 37. 4 Non- control l i ng i nterests 4. 1 4. 1 4. 7 - 4. 7 Profit for the p e riod 33.9 ( 14.8) 19.1 45. 1 ( 3. 0) 42. 1 Six months ended 30 June 2025 S i x months ended 30 June 2024 £m 26
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© Morgan Advanced Materials 27 Interim Results 2025 Good performance against our key ESG objectives 1 Scope 1 and 2 CO2e up 4% 53% below 2015 baseline (2030 Goal: 50% below) 2 Overall water usage down 13% 39% below baseline (2030 Goal: 30% below) Absolute CO2e emissions 230 211 158 153 77 80 171 2021 2022 2023 2024 H1 24 H1 25 2030 Target +4% 1,731 1,933 1,720 1,606 823 719 1,634 2021 2022 2023 2024 H1 24 H1 25 Target -13% Water usage
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Contact investor.relations@morganplc.com +44 (0)1753 837 000 morganadvancedmaterials.com © Morgan Advanced Materials 28