Deceuninck : half year report H1 2023

Half year

report 2023

FINANCIAL RESULTS & REPORTS

Table of contents

0 4 MANAGEMENT REPORT

04 Key figures

05 Analysis of the results

06 Sustainability

07 Outlook

07 Risks and uncertainties

08 UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

08 Interim condensed consolidated income statement

1. Interim condensed consolidated statement of comprehensive income
2. Interim condensed consolidated balance sheet

12 Condensed consolidated statement of changes in equity

1. Interim condensed consolidated statement of cash flows
2. Notes to the interim condensed consolidated financial statements

22 STATEMENT OF THE BOARD OF DIRECTORS

2 3 GLOSSARY

Management report

KEY FIGURES

Summary of consolidated figures

(in € million)	H1 2022	H1 2023	% y-o-y
Volumes (PVC, in kTon)	115.9	107.9	(6.9%)
Sales	506.8	427.2	(15.7%)
Gross profit	139.9	139.0	(0.7%)
Gross-margin (%)	27.6%	32.5%	+4.9 pps
EBITDA	54.8	57.1	4.3%
Adj. EBITDA	57.8	59.6	3.1%
Adj. EBITDA-margin (%)	11.4%	13.9%	+2.5 pps
EBIT	26.1	35.4	35.7%
Financial result	(12.1)	(9.0)	(25.5%)
Profit / (loss) before taxes (EBT)	14.0	26.4	88.3%
Income taxes	(6.5)	(8.7)	33.1%
Net profit / (loss)	7.5	17.8	136.1%
Net Debt	121.2	100.8	(16.9)

Sales evolution by region

(in € million)	H1 2022	Volume	FX	Price / Mix / Other	H1 2023	% y-o-y
Europe	241.9	-12.1%	-0.3%	1.6%	216.0	-10.7%
North America	119.7	-23.3%	0.7%	-7.4%	83.8	-30.0%
Turkey & EM	145.1	12.6%	-32.2%	7.4%	127.4	-12.2%
Total	506.8	-6.9%	-8.3%	-0.5%	427.2	-15.7%

04

ANALYSIS OF THE RESULTS

First half of 2023 highlights

• Adj. EBITDA increased to € 59.6m (+3.1% vs H1 2022) driven by strong business performance in Turkey and improved profitability in North America.
• Adj. EBITDA-margin amounted to 13.9%, compared to 11.4% in H1 2022 and to 9.5% in H2 2022.
• The record Adj. EBITDA has been realized in a challenging market environment, causing 6.9% volume decrease due to a slowdown of the construction activity in Europe and North America, while Turkey & Emerging markets performed strongly with 12.6 % higher volumes.
• Sales in H1 2023 decreased by 15.7% of which 8.3% related to exchange rate movements and 6.9% due to lower volumes.
• Net income increased from € 7.5m in H1 2022 to € 17.8m in H1 2023.
• Net debt decreased with €20.4m versus same period last year reflecting solid cash generation while continuing the planned investment program.
• Deceuninck continues to invest in sustainability initiatives with a focus on recycling capacity, use of recycled materials and solar energy.

Quote of the CEO, Bruno Humblet

"During challenging market environments with high inflation and increasing interest rates, we were able to achieve a record half year Adj. EBITDA and increasing profit margins, while further improving our cash generation. The business performance in Turkey was very strong. In North America we were able to improve our profitability reflecting improved plant efficiencies and a stronger product mix. Business results in Europe were weaker reflecting difficult market conditions.

We continued to invest in our recycling capacity and sustainability initiatives. The investment in our aluminium coating facility in Turkey will help us to further grow our aluminium business. Our Elegant transition remains well on track which will help to increase the usage of recycled PVC. After a solid start in the first half of the year, we reconfirm our outlook of increasing our full year Adj. EBITDA."

DECEUNINCK HALF YE AR REPOERT 2023

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