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PRESENTATION Y ear ended 30 Nov 2024 Ben Stocks - Chief Executive James Mills - Finance Director Hooman Caman Javvi - Chief Executive designate
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Consistent strategy Filtration, laboratory and environmental technology markets Engineering, customer service and NPD in a devolved management structure Year ended 30 Nov 2024 Revenue +9% Adjusted EPS +4% Net Cash £13.7m after £15.3m invested Record revenue and profit Variable trading patterns 2 5-Year Revenue Adj EPS 6% 9% 15-Year Revenue Adj EPS 9% 19% 20-Year Revenue Adj EPS 8% 13% 10-Year Revenue Adj EPS 6% 10% CAGR
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Regularly replaced, engineered products. We contain emissions, clean-up processes, purify samples, reduce waste and analyse impurities. 3 Global growth trends Tightening environmental regulation Growth in analytical science The need for clean water Carbon-efficient transport The replacement of plastic and steel by aluminium Industrial process efficiency and waste reduction Attractive business characteristics Niche positions Recurring revenues High customer retention Good cash conversion Fundamental demand drivers Long-term secular growth trends Regulation Maintenance schedules Barriers to entry Quality accreditation Engineering design Patent & IP protection
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Market positions Supported by fundamental growth drivers Business division Metal Melt QualityLaboratory EPA, ISO ISO, QA 33% 23% New build rates Flying hours Emissions control Process quality Water standards Diagnostic/Analytic lab growth Aluminium growth High grade alloy usage Installed base Engineering design Patents Quality accreditation 4 Aerospace & lndustrial 5%+ 2024-31 Sources: see below* Aluminium: 4%+ 2024-31 Sources: see below** Industrial: GDP+ Aero: 4%+ 2024-43 Sources: Boeing * Transparency Research ** Allied Market Research; CRU; Fortune Business Insights 44% NQA1, IMOFAA, CAA Share of revenues Regulation Growth drivers Market CAGR growth rates Competitive advantage
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Strategic Purpose The development of specialist filtration, laboratory and environmental technology businesses for the benefit of all stakeholders Principal measures of success Consistent earnings growth ESG metrics Regulated markets with long-term growth prospects Customer-led product development Allocate cash to: Organic growth and margin enhancement Acquisitions Progressive dividend 5 Strategy and execution Strategy:
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Key themes 2024 Strong or steady: aero, petrochemical, clean water Strategy and execution Execution: Focus on margins, cash and continued investment De-stocking in consumables: lab and industrial Variability – more than normal 6 Margins, cash, continued investment Ebbs and Flows: Robust orders in Aero, Petrochem Lab / Industrial consumables sluggish Expected H2 pick-up underwhelming Margins: Forex headwinds as expected Hurricane remediation Cash: EFC December 2023 Capex £5m Investment: MMQ upgrade due 2024/25
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9% Group Revenue 7% Laboratory Revenue (8)% Metal Melt Quality Revenue 25% Aerospace & Industrial Revenue 4% Adjusted EPS £13.7m Net Cash 6% to £22.7m Adjusted PBT 7 Financial summary for the year ended 30 Nov 2024 to 38.6p
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8 for the year ended 30 Nov 2024 2024 £m 2023 £m Revenue 192.6 176.0 Operating profit 24.5 22.6 Interest (1.8) (1.2) Profit before tax 22.7 21.4 Tax (4.8) (4.3) Profit for the year 17.9 17.1 Earnings per share 38.6p 37.2p Adjusted income statement
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9 Cash flow 2024 £m 2023 £m Operating cash flow before working capital movement 29.5 26.9 Working capital movement (3.8) (2.8) Cash generated from operations 25.7 24.1 Interest (0.7) (0.3) Tax (3.4) (3.0) Acquisitions (10.2) (13.9) Capital expenditure (5.1) (4.8) Net movement in borrowings - - Dividends (2.8) (2.7) Repayment of lease liabilities (3.5) (2.6) Other (0.1) (0.6) Decrease in cash (0.1) (3.8) Net cash at 30 November 13.7 14.1 for the year ended 30 Nov 2024
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• Revenue +25% • Aero +21%; Petrochem +37% • EFC - good start • Margin affected by mix: - More Petrochem - US industrial consumables operational gearing 2024 £m 2023 £m Revenue 84.2 67.6 Adjusted OP 11.8 9.8 % 14.0% 14.5% • Revenue +7%; underlying (1%) • Order book steady – some Q4 uplift • Investment continued: - Hungary - NPD 2024 £m 2023 £m Revenue 64.4 60.4 Adjusted OP 9.5 9.2 % 14.8% 15.2% • Revenue (8)% [2023: +6%; 2022: +21%; 2021: +14%] • Aluminium volumes flat • Turbine blades, China better • £0.9m Hurricane remediation costs 2024 £m 2023 £m Revenue 44.1 48.0 Adjusted OP 5.9 6.5 % 13.4% 13.5% Aerospace & Industrial Laboratory Metal Melt Quality Divisional review Results and progress – for the year ended 30 Nov 2024 10
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For the benefit of all stakeholders Porvair strategy since 2004 Develop products that curtail emissions, cut waste, reduce pollution or improve process efficiency ESG update Employee engagement Carbon intensity Lost time accidents Senior staff gender balance Metrics Full ESG report published separately 0 0.05 0.1 0.15 0.2 0.25 2010 2021 2022 2023 2024 Carbon Intensity kCO2/£ 0 0.5 1 1.5 2020 2021 2022 2023 2024 Lost Time Accidents ratio (per 100 employees) 2024 ESG progress 0 10 20 30 2021 2022 2023 2024 Senior staff gender female % 0 5 10 15 2021 2022 2023 2024 Voluntary Quit Rate % 11 ESG report published: key strategic framework Employee engagement: Quit rate improvement to 8.2% Carbon intensity: on track for -10% target Days Lost to Accidents up to 2.3 per 100 employees Senior staff gender 32% ESG metrics in all senior management incentives
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12 2025 Near term priorities • Learn and absorb • Develop plan to evolve, build on strengths • Develop opportunities, including: • New aero and rocket products • De-misting • Hungarian capacity • NPD Seal and Kbio • Aluminium re-shoring Introducing Hooman Previously COO Hill & Smith plc Hitachi Energy and ABB Group MSc Industrial and Mechanical Engineering MBA Stockholm School of Economics
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2024: Continued sector volatility Cornerstones Well-engineered products Secular growth trends, annuity demand Outstanding people 2004 – 2024 Revenue CAGR 8% Adj EPS CAGR 13% Shares at issue 1% Summary 2024 Near term opportunities CEO transition Prospects £15m surplus cash pa Solid basis for compound growth Best is yet to come 13 Outlook Longer term: Strategy framework set out in ESG report Looking ahead, out-going CEO reflections:
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PRESENTATION Y ear ended 30 Nov 2024 Ben Stocks - Chief Executive James Mills - Finance Director Hooman Caman Javvi - Chief Executive designate