Azelis : Press Release (EN)

REGULATED INFORMATION

Azelis News Release

Antwerp, Belgium, March 15th, 2022 - 07.00am CET

Azelis FY 2021 Results: Strong growth boosts Group Adjusted EBITA by 41%

2021 Highlights

• Revenue of EUR 2.8bn, representing year-on-year growth of 27.2%, of which 15.7% was organic. Strong growth acceleration in Q4, particularly in life sciences.
• 12 acquisitions completed, representing total annualized revenue of over EUR 530m.
• Adjusted EBITA increased 41.3% year-on-year to EUR 267.9m. The 95 bp adjusted EBITA margin expansion resulted in a conversion margin of 41.2%, representing a 252 bp step-up.
• Azelis generated FCF of EUR 181.6m for the year as a strong order book pushed working capital up in Q4.
• Adjusted net profit for the year was EUR 98.2m, a 38.3% increase from the prior year. Including EUR 28.0m of one-off cash and non-cash costs that related to the IPO, reported net profit was EUR 70.2m.
• Net debt stood at EUR 870.7m at the end of December 2021. Leverage ratio reduced to 2.7x, versus 5.3x at the end of December 2020.
• Proposal for a dividend of EUR 0.03 per share, implying a pro-ratedpay-out ratio of 35%1.
• EcoVadis Platinum rating achieved, underscoring Azelis' commitment to sustainability.

	Azelis Group			2021			2020			Reported			Constant
	(EUR m unless otherwise indicated)							Change			Currency
Revenue	2,827.3		2,222.9		27.2%		28.4%
Gross Profit	650.1		489.9		32.7%		34.0%
Gross Profit Margin	23.0%		22.0%			95 bp		98 bp
Adjusted EBITDA	287.8		207.2		38.9%		40.4%
Adjusted EBITDA Margin	10.2%		9.3%			86 bp		89 bp
Adjusted EBITA (1)	267.9		189.6		41.3%		42.9%
Adjusted EBITA Margin	9.5%		8.5%			95 bp		98 bp
Conversion Margin (2)	41.2%		38.7%			252 bp		263 bp
Adjusted net profit (3)	98.2		71.0		38.3%		40.7%
Adjusted EPS	0.41		0.30		34.9%		37.4%
Net profit	70.2		71.0		-1.1%		1.3%
Earnings per share (EPS€) (4)	0.29		0.30		-4.5%		-2.1%
Operating Cash Flow	205.5		205.3		0.1%
Free Cash Flow	181.6		188.3		-3.5%
FCF conversion ratio (5)	67.1%		98.4%			-3129 bp
Net Working Capital/ Revenue normalized for acquisitions (6)	15.3%		11.1%			420 bp
Leverage ratio		2.7x		5.3x		-2.6x

1. Adjusted EBITA represents operating profit or loss before amortization and impairment of intangible assets and excluding adjustments
2. Conversion margin defined as Adjusted EBITA / Gross profit
3. Adjusted for one-off cash and non-cash costs related to the IPO
4. Prior year adjusted for current number of shares
5. FCF conversion ratio represents Free Cash Flow divided by Adjusted EBITDA less lease payments
6. Net Working Capital/Revenue including those from acquisitions for the full period

1 Pro-rated for the period during which Azelis has been a public company following its initial public offering in September, 2021

REGULATED INFORMATION

Comment from Dr. Hans Joachim Müller, CEO: "I am pleased to report record-settingachievements in 2021. We outperformed our objectives, delivering over EUR 2.8bn of revenue and EUR 268m of adjusted EBITA, translating to 27% revenue growth and 95 bp adjusted EBITA margin expansion. This performance is all the more noteworthy given the ongoing industry challenges.

In 2021, we secured multiple mandates with new and existing suppliers, underscoring our demonstrated ability to grow our principals' business. We established a leading franchise in the flavors and fragrance market with the acquisition of Vigon in the US and Quimdis in France. We accelerated our growth strategy in Asia-Pacific by acquiring eight companies in the region. In total, we completed 12 strategic acquisitions that strengthen our footprint in markets where we see exciting growth opportunities. We also accelerated the roll-out of our digital and physical network programs and earned two major industry awards for innovation. During the year, we launched Action 2025 and obtained an EcoVadis Platinum rating, reflecting our commitment to sustainability. Last but not least, we started the next phase of our development with a successful listing on the Euronext stock exchange.

I am confident that we are on track to continue delivering on our annual objectives. However, the developments in Russia and Ukraine have raised uncertainty around the world. We are monitoring the situation and our priority is the safety of our colleagues in the region. Whilst our direct revenue exposure is very low, we currently have limited visibility on the wider trade repercussions that may ultimately impact the Group."

---End---

Results presentation by management

The management of Azelis invites you to a conference call and livestream at 10:00 CET to discuss our full year 2021 results, as well as operating trends and outlook for 2022. Please click hereto view the webcast.

Contact information

Azelis Investor Relations

T: [phone]

1. [e-mail]

2

REGULATED INFORMATION

Operational Review

	Azelis Headline			2021			2020			F/X			M&A			Organic			Total
	Results (EUR m)							Contribution			Contribution			Growth			Growth
EMEA	1,232.3		1,034.2		-1.2%		6.4%		13.9%		19.2%
Americas	1,164.2		952.6		-1.8%		7.5%		16.5%		22.2%
Asia Pacific	430.8		237.7		1.7%		60.2%		19.4%		81.2%
Group Revenue	2,827.3		2,222.9		-1.2%		12.6%		15.7%		27.2%
EMEA	292.8		239.9		-1.2%		7.1%		16.2%		22.1%
Americas	270.9		199.4		-1.8%		15.8%		21.8%		35.9%
Asia Pacific	86.2		47.9		1.7%		52.8%		25.6%		80.1%
Gross Profit	650.1		489.9		-1.3%		15.1%		18.9%		32.7%

Azelis delivered total revenues of EUR 2.8bn, an increase of 27.2% compared to 2020 (+28.4% in constant currency), supported by the Group's increasing scale and favorable economic tailwinds. Growth in life sciences accelerated in Q4, catching up with the strong performance of industrial chemicals throughout the year. Group revenue growth of 27.2% for 2021 was evenly split between life sciences and industrial chemicals; with life sciences comprising 62% of total revenue in 2021 and the remaining 38% coming from industrial chemicals.

Demand remained strong throughout the year across most of our businesses, driving 15.7% of organic growth. Revenue growth contribution from acquisitions was 12.6%, while FX represented a 1.2% revenue headwind.

	Azelis EMEA			Q4 2021			Q4 2020			Reported			2021			2020			Reported			Constant
	(EUR m)							Change							Change			Currency
Revenue	338.0		248.5		36.0%		1,232.3		1,034.2		19.2%		20.3%
Gross Profit	82.3		60.4		36.2%		292.8		239.9		22.1%		23.3%
Gross Profit Margin	24.3%		24.3%			4 bp	23.8%		23.2%			57 bp			57 bp
Adjusted EBITDA	32.9		22.8		44.6%		134.1		106.9		25.4%		27.2%
Adjusted EBITDA Margin	9.7%		9.2%			58 bp	10.9%		10.3%			54 bp			60 bp
Adjusted EBITA	30.6		19.9		53.4%		125.3		98.4		27.3%		29.1%
Adjusted EBITA Margin	9.0%		8.0%			103 bp	10.2%		9.5%			65 bp			71 bp
Conversion Margin	37.2%		33.0%			416 bp	42.8%		41.0%			176 bp			200 bp

EMEA revenue increased by 19.2% to EUR 1,232.3m on organic growth of 13.9% for the full year 2021, supported by strong end-market demand, especially in industrial chemicals, where CASE benefitted from the ongoing recovery in the building and construction sectors. Growth in life sciences accelerated in Q4 on the back of strengthening trend in Personal Care, and a strong pick-up in the Food & Health segment as restrictions are being gradually lifted. In EMEA, revenue growth contribution from acquisitions was EUR 66.4m, contributing 6.4% of revenue growth for the full year, whilst FX headwinds reduced reported revenues by 1.2%.

In January, Azelis completed the acquisition of CAME, a specialty distributor active in the CASE market in Italy. In August, the acquisition of Quimdis, a leading French distributor of specialty chemicals with a strong franchise in flavors & fragrances, was completed. In November, the Group closed the transaction to acquire Neupert, a local distributor of specialty chemicals and food ingredients in Austria. These companies generated combined revenues of EUR 132.6m for the full year.

3

REGULATED INFORMATION

Gross profit increased 22.1% to EUR 292.8m compared to the previous year, representing a margin expansion of 57 bp, as we continue to optimize prices to mitigate the ongoing price inflation. Adjusted EBITA grew 27.3% to EUR 125.3m, driving a 65 bp margin expansion to 10.2%, and a 176 bp increase in conversion margin in the region, reflecting the benefit of scale and gains from past and present efficiency investments.

	Azelis Americas			Q4 2021			Q4 2020			Reported			2021			2020			Reported			Constant
	(EUR m)							Change							Change			Currency
Revenue	308.7		224.1		37.7%		1,164.2		952.6		22.2%		24.1%
Gross Profit	79.5		47.4		67.8%		270.9		199.4		35.9%		37.6%
Gross Profit Margin	25.8%		21.2%			461 bp	23.3%		20.9%			234 bp		232 bp
Adjusted EBITDA	38.7		22.6		71.1%		143.7		100.7		42.8%		44.4%
Adjusted EBITDA Margin	12.5%		10.1%			245 bp	12.3%		10.6%			178 bp		175 bp
Adjusted EBITA	37.0		21.4		72.7%		137.6		95.2		44.5%		46.1%
Adjusted EBITA Margin	12.0%		9.6%			243 bp	11.8%		10.0%			182 bp		180 bp
Conversion Margin	46.5%		45.2%			134 bp	50.8%		47.8%			305 bp		294 bp

Revenue in the Americas increased 22.2% in 2021 to EUR 1,164.2m, on strong organic growth of 16.5% and revenue growth contribution from acquisitions of 7.5%. In North America, demand remained strong throughout the year across life sciences and industrial chemicals. The marked growth acceleration of the life sciences segment in the second half of the year was largely due to the acquisition of Vigon, a leading specialty distributor of ingredients for the flavors, fragrances, and cosmetics market segments in the US, which generated total annual revenue of EUR 126.7m in 2021. We closed the transaction at the beginning of June 2021.

Gross profit increased 35.9% to EUR 270.9m in the Americas, with gross margin expanding by 234 bps compared to the prior year, mostly from improved mix effects but also from ongoing price optimization initiatives. Adjusted EBITA grew 44.5% to EUR 137.6m, resulting in a conversion margin increase of 305bp to 50.8% due partly to the positive mix effect from the Vigon acquisition as well as efficiency gains.

	Azelis Asia Pacific			Q4 2021			Q4 2020			Reported			2021			2020			Reported			Constant
	(EUR m)							Change							Change			Currency
Revenue	144.4		61.0		136.9%		430.8		237.7		81.2%		79.6%
Gross Profit	29.9		14.9		100.4%		86.2		47.9		80.1%		78.4%
Gross Profit Margin	20.7%		24.5%			-377 bp	20.0%		20.1%			-12 bp		-12 bp
Adjusted EBITDA	9.4		4.7		99.5%		33.7		17.8		89.5%		88.1%
Adjusted EBITDA Margin	6.5%		7.7%			-122 bp	7.8%		7.5%			34 bp		36 bp
Adjusted EBITA	8.1		3.9		109.6%		29.6		15.0		97.8%		96.4%
Adjusted EBITA Margin	5.6%		6.3%			-73 bp	6.9%		6.3%			58 bp		59 bp
Conversion Margin	27.1%		25.9%			119 bp	34.4%		31.3%			308 bp		315 bp

Revenue in Asia Pacific grew 81.2% to EUR 430.8m in 2021, on strong organic growth of 19.4% as demand remains robust across end-markets and as Azelis leverages its growing footprint in the region. In 2021, revenue growth contribution from acquisitions was EUR 143.1m, representing 60.2% of growth.

In 2021, we delivered significant progress on our Asia Pacific growth strategy with multiple mandate wins from global suppliers and the completion of 8 strategic acquisitions during the year. In January, we completed the acquisition of MKVN and Viet Chemi, a local specialty chemicals distributor active in both the life sciences and industrial chemicals markets in Vietnam. In February, we closed the

4

REGULATED INFORMATION

acquisition of CW Pacific, a local specialty chemicals distributor primarily for the food market in Australia. In March, we completed the acquisition of Asia Primera Kimika Inc. and Phil-Asiatic Supply

• Services Inc., leading chemical distributors for the life sciences market in the Philippines. In April, we completed the acquisition of Spectrum Chemicals and Nortons Exim Private Limited, local chemical distributors with a strong focus in agri/horti, lubricants and rubber in India. In July, we closed the acquisition of Coseal, a local distributor active in the agri market in South Korea. In August, we completed the acquisition of Ingredients Plus, a local distributor for the personal care market in China. In October, we closed the acquisition of WWRC & Friendship Chemicals, strong local distributors in the industrial chemicals market in China. Finally, we also completed another acquisition in South Korea, MH & MIF, a local distributor specialized in the food market. These eight acquisitions had a combined total revenue of EUR 276.0m for the full year.

Gross profit in Asia-Pacific increased 80.1% to EUR 86.2m during the year, resulting in gross profit margin contraction of 12 bp, due to mix effect from the first-time inclusion of acquisitions. However, this was offset by the 97.8% growth in adjusted EBITA, resulting in EBITA margin expansion of 58 bp, despite ongoing investments to drive future growth, including dedicated M&A resources as well as other support and commercial functions for the region. The rapid growth in EBITA drove a 308 bp increase in conversion margin in Asia-Pacific in 2021.

	Holding companies			Q4 2021			Q4 2020			Reported			2021			2020			Reported			Constant
							Change							Change			Currency
Adjusted EBITA (EURm)	-8.3		-5.2		58.5%		-24.7		-19.1		29.2%		29.2%
As % of Group Revenues	-1.1%		-1.0%			7.1 bp	-0.9%		-0.9%			-1.4 bp		-0.4 bp

Operating costs at the Group's holding companies, which relate to the Group's non-operating entities as well as the head office in Belgium, were EUR 24.7m in 2021, compared to EUR 19.1m in the previous year. Relative to total revenue, operating costs at the Group's holding companies remained broadly stable during the year.

Outlook

Our strategy of driving growth is underpinned by a continually strengthening lateral value chain, supported by continuous investments in innovation capabilities and digitalization, as well as a commitment to sustainability to create long-term value. In line with this, we are positive that we should be able to generate 8-10% of revenue growth and deliver 10-15 bps adjusted EBITA margin expansion per year in the medium-term.

At present, we are on track to continue delivering on our annual objectives. We are closely monitoring the situation in Russia and Ukraine, which make up 1%-2% of Group revenue. Whilst direct revenue exposure at risk is very low, the Group currently has limited visibility on the wider trade repercussions that may ultimately impact the Group.

5