Morgan Advanced Materials : 2021 Half Year Results Presentation(made on 29 July 2021)

2021 Interim results presentation

29 July 2021

Agenda

• Introduction and summary - Pete Raby
• 2021 Interim results - Peter Turner
• Operational and strategic update - Pete Raby

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Key highlights

• The safety of our people is our priority and we continue to operate protection measures to keep our employees safe during the pandemic
• Organic constant-currency revenue growth was 4.2%, with broad based growth across our healthcare, semiconductor, energy and industrial segments
• Adjusted operating profit margin was 12.8%, up by 170bps, driven by the acceleration of the benefits from our restructuring programme and volume leverage
• Pricing and continuous improvement efficiency actions continue to more than offset cost inflation
• Strong first half cash flow, with free cash flow of £36.5m driving a further reduction in leverage, with net debt / EBITDA (excluding leasing) of 0.5x
• Adjusted earnings per share of 12.7p, up 10.4% on the prior year
• Interim dividend of 3.2p, up 60% on the interim dividend declared in Q4 2020
• CO2 emissions reduced by 17% compared to the prior year

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2021 Interim results

Peter Turner

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Group performance

			% change from 1H 2020
£m	1H 2021	1H 2020	As reported	At organic constant-
			currency

Revenue

Group adjusted operating profit1

Group adjusted operating profit margin % 1

ROIC %

Cash generated from continuing operations

Free cash flow before acquisitions, disposals and dividends

Adjusted earnings per share

Interim dividend per share

461.2	477.8	(3.5%)	4.2%
59.1	52.9	11.7%	29.0%

12.8% 11.1%

15.4% 15.6%

63.1

59.0

6.9%

36.5 26.4

12.7p	11.5p	10.4%
3.2p	- 2

1 Group adjusted operating profit is before specific adjusting items and amortisation of intangible assets. 2 2020 interim dividend of 2.0 pence per share was declared and paid in Q4 2020.

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