Synthomer Strategy

Capital Markets Day

12 October 2022

Agenda

09:00 - 09:45

Introduction and Strategy review

Michael Willome, Chief Executive Officer

09:45 - 10:00

Coffee break

10:00 - 10:30

Deep dive into Adhesive Technologies

Toby Heppenstall, President Adhesive Technologies

10:30 - 10:40

Key performance indicators

Lily Liu, Chief Financial Officer

10:40 - 11:00

Summary and conclusions

Michael Willome, Chief Executive Officer

11:00

Q&A

Michael Willome

Lily Liu

Toby Heppenstall

Synthomer plc Capital Markets Day October 2022

2

Introduction & Strategy Review

Michael Willome, Chief Executive Officer

Synthomer plc Capital Markets Day October 2022

3

The opportunity - Focus, Strengthen, Grow

Focus

  • Portfolio rationalisation to reduce complexity
  • Increase end market orientation
  • Expand speciality solutions portfolio
  • Disciplined capital allocation

Synthomer plc Capital Markets Day October 2022

Strengthen

  • Innovation, leveraging sustainability to drive further value
  • Optimise acquired operational network
  • Balance sheet, returning leverage to target levels

Grow

  • Opportunity to realise significant growth from being a larger scale, more focused and stronger business
  • Deliver on clear strategic objectives and financial targets
    • An attractive return on invested capital
    • Consistent growth and increasing margins
    • Strong cash flow

4

Strengthening the balance sheet to deliver the strategy

  • Portfolio management - Strategic divestment actions
    • Near and longer-term opportunities for portfolio management identified
    • Process underway to support our disciplined route to our target 1-2x leverage
  • Working capital actions
    • Adhesives Technologies working capital improvement
    • Supply chain optimisation
    • Legacy group working capital target as a % of revenue remains ~10%
  • Actions in response to slower H2 market conditions
    • Capex reduced to ~£80m in 2022 from expected £130m
    • Discretionary cost programme deployed
  • New streamlined organisation with lower cost base and reduced complexity
  • Covenant headroom discussions progressing well
    • Dividend suspension to December 2023 announced
  • Five-yearUK export finance package of £450m agreed

Synthomer plc Capital Markets Day October 2022

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Synthomer plc published this content on 12 October 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 October 2022 09:11:02 UTC.