14 November 2023

Elementis plc

2023 Capital Markets Day

Material growth and efficiency opportunity; ambitious 2026 financial targets.

Elementis plc ("Elementis" or the "Group"), will hold a Capital Markets Day for analysts and investors, at 2pm today. 

The day will be hosted by Paul Waterman, Chief Executive Officer, and will include presentations from the wider management team, as well as practical demonstrations focusing on recent innovative technologies and products.

New ambitious 2026 Group performance objectives 

-       Adjusted operating profit margin of 19%+

-       Three-year average operating cash conversion above 90%

-       Return on capital employed (excluding goodwill) above 20%

The 19% target operating margin will be achieved through our growth and efficiency programmes based on current market conditions, whilst a modest recovery in the demand environment could see the margin rise above this level.

The presentation will include an update on our Innovation, Growth and Efficiency strategy, and will detail the programmes expected to deliver material growth, savings and margin improvements.

It will also cover progress on our sustainability strategy, highlighting continued focus on innovative solutions, which are delivering material benefits to our customers and the wider environment.  

Growth platforms - $90 million above market revenue growth by 2026

Following the sale of Chromium earlier this year, Elementis is a higher-quality, less-cyclical, specialty chemicals business.

The Group has two focused businesses, Performance Specialties and Personal Care, with attractive growth opportunities across a wide range of market segments in which we operate.

Going forward we will be focusing on seven growth platforms and deliver $90 million of above market revenue growth by 2026. This will be driven by innovation, utilising our advantaged technologies, benefiting from key industry trends.

Efficiency platforms - $30 million annual cost savings by 2025

We continue to drive towards a more efficient business, that reflects the simplified structure of Elementis post Chromium disposal. Elementis is executing its Fit for the Future efficiency programme, which will deliver $20 million cost savings by 2025. It will involve up to 190* redundancies, from moving roles to lower cost locations and outsourcing of back office transactional roles. As part of this programme we are setting up a new global support base and R&D lab in Porto, Portugal.

A further $10 million annual savings by 2025 will come from supply chain optimisation and procurement savings.  

Paul Waterman, CEO of Elementis, said:

"Today, we are excited to share an update on our strategy, focused on innovation and growth across seven  growth platforms, which will deliver $90 million above market growth by 2026. Furthermore, we have two efficiency programmes underway, leading to $30 million cost reduction by 2025.

The combination of improved performance, strong cash generation and continuing leverage reduction will support attractive, sustainable shareholder returns.

I look forward to welcoming investors and analysts to our Capital Markets Day, to share our passion for Elementis and our ambition for the future."

Webcast and post-event recording

Webcast will be available for those unable to attend and will start at 2pm (GMT). Registration is required, and can be accessed via the link Viewing "Elementis Capital Markets Day " (investis-live.com).

A replay of today's presentations will be available on Elementis' website in due course.

This announcement contains inside information for the purposes of Article 7 of the UK Market Abuse Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018.

Enquiries

Investors:          Eva Hatfield, Elementis plc                                Tel: +44 7553 340380

Media:             Martin Robinson/Olivia Peters, Teneo                 Tel: +44 (0) 20 7353 4200

*Subject to local consultation requirements.