Mersen : 2023 Annual Results Presentation

2023 Results

March 13, 2024

Luc Themelin

Thomas Baumgartner

2023: a year shaped by major achievements

AMBITIOUS		MAJOR		CAPITAL		UPDATE OF THE
MEDIUM-TERM		CONTRACTS		INCREASE		CSR ROADMAP
PLAN		and
Sales target: €1.7bn		PARTNERSHIPS		€100 million to		2027 targets set
Capex plan		Wolfspeed		support growth

ACC

Soitec

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Mersen - 2023 Results

2023, another year of profitable growth

Sales (€m)	Operating income before	ROCE (%)
	non-recurring items (€m)

1,211

1,115

923

847

2020

2021

2022

2023

		122	137
					12.5	13.0
					10.8
	93
69				7.8
2020	2021	2022	2023	2020	2021	2022	2023

Green Taxonomy

75% of sales are Taxonomy-eligible

21% of sales are Taxonomy-aligned

A growing commitment to

CSR that has attracted increased recognition

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Mersen - 2023 Results

Thomas Baumgartner

Chief Financial Officer

2023 FINANCIAL RESULTS

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Mersen - 2023 Results

Dynamic growth in all markets, particularly SiC semiconductors

ORGANIC

GROWTH

2023 vs. 2022

9%

CHEMICALS

13%

TRANSPORTATION

Railway

Aeronautics

Electric Vehicles

21%

ENERGIES

Solar power

Wind power

€1,211m

+13%*

33%

PROCESS INDUSTRIES

24%

ELECTRONICS

SiC semiconductors

Si semiconductors

> +50%

+20% - +50%

+10% - +20%

+0% - +10%

* Organic growth 2023 vs. 2022

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Mersen - 2023 Results

Strong growth in profitability

	(€m)	2022	2023
	EBITDA before non-recurring items	186.4	202.7
	Recurring EBITDA margin	16.7%	16.7%
	Depreciation and amortization	(64.8)	(65.4)
	Operating income before non-recurring items	121.6	137.3
	Operating margin before non-recurring items	10.9%	11.3%
	ROCE	12.5%	13.0%

6	Mersen - 2023 Results

+9% (+14% excluding currency effects)

Commissioning of certain investments scheduled in the coming half-years

+13% (+19% excluding currency effects)

Pricing power making it possible to pass on inflation

2022 operating margin before non-recurring items

In % points

10.9%

Volume/mix effect

Price effect

Raw material/energy inflation

Productivity gains

Wage inflation

p-SiC project, EV team & hiring for the growth plan

Exchange rate and scope effect

Other

+2.1

+4.4	High-tech customized products with
	limited cost versus total cost
-3.5
+1.1	+0.3 pts
Operational excellence, purchasing
	optimization
-1.7	+6% on average over the year

-1.4

-0.3

-0.3

2023 operating margin before non-recurring items

11.3%

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Mersen - 2023 Results

Strong growth in operating income before

non-recurring items in both segments

Advanced Materials

		15.8%	15.7%
		105
		98
	14.4%
12.1%	73
58
2020	2021	2022	2023

Electrical Power

			10.1%
			55
		9.0%
	9.1%	45
7.5%	38
28
2020	2021	2022	2023

2022-2023 change

Favorable volume/mix effects

Price increases offsetting wages and costs inflation

Positive effects

of adaptation and operational efficiency plans

Resources

for EV projects, p-SiC

Operating income before non-recurring items in €m

Operating income before non-recurring items as a % of sales

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Mersen - 2023 Results

Net income up by a sharp 16%

	(€m)	2022	2023
	Operating income before non-recurring items	121.6	137.3
	Non-recurring income and expenses	(11.4)	(5.9)
	Net financial expense	(12.9)	(19.3)			Increase in interest rates
			Interest on pensions & lease
	Income tax	(23.0)	(26.2)			liabilities : €5m
			Effective tax rate of 23%
	Net income	74.3	85.9	+16%
	Attributable to Mersen shareholders	67.7	81.6

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Mersen - 2023 Results

Significant increase in operating cash flow,

to finance the capital expenditure plan

(€m)	2022	2023
Operating cash flow before change in WCR	180.8	201.0
Change in WCR	(63.2)	3.2
o/w change in inventories	(69.7)	(24.5)
Income tax paid	(12.1)	(25.0)
Operating cash flow	105.5	179.3

WCR ratio of 19.1% (vs. 20.7% in 2022)

driven by prepayments on contracts

Increased earnings, exceptional savings in 2022

+70%

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Mersen - 2023 Results