2023 Highlights

• Revenue of EUR 4.2bn, representing year-on-year growth of 1.0% (5.3% on a constant currency basis), as resilient performance in Life Sciences offset weakness in Industrial Chemicals.

• Gross profit of EUR 984.1m represents year-on-year growth of 2.4% compared to the prior year. Gross profit margin expanded by 32 bp to 23.7%, reflecting positive mix effects across our businesses.

• Adjusted EBITA of EUR 466.3m represents a 2.1% year-on-year increase and 11 bp margin step-up. Conversion margin remains robust at 47.4%, reflecting our ability to maintain profitability despite the challenging environment.
• Free cash flow increased by 37.3% to EUR 601.2m, implying a cash conversion ratio to 127.4%. FCF per share was EUR 2.5, compared to EUR 1.9 in the previous year.

• Reported net profit of EUR 189.3m includes EUR 21m of non-cash financial charges related to the impact of hyperinflation accounting as well as adjustments in the fair value of certain derivative instruments.
• Seven acquisitions were completed during the year, representing combined prior year revenue of over EUR 400m. Three further acquisitions with combined prior year revenue of over EUR 30m were announced in the fourth quarter and are expected to close in Q1 2024.

• Leverage ratio was 2.5x at the end of the year, compared to 2.6x at the end of June, and 2.2x at the end of 2022.

• Industry-leading ESG ranking confirmed in most recent Sustainalytics assessment and reflected in Azelis’ inclusion in the Euronext BEL®ESG Index.
• Proposal for a dividend of EUR 53.3m, representing 30% of distributable net profit, and implies EUR 0.22 (rounded) dividend per share1.

• Despite political and economic uncertainty persisting globally, the company remains steadfast in its focus on controlling costs, cash conversion, and driving growth. The company expects to return to organic growth during 2024, although the timing of the recovery remains uncertain.

Comment from Anna Bertona, CEO: "I am pleased to present our results for 2023, highlighting the resilience and cash-generative nature of our business. The record 127.4% cash conversion ratio achieved during the year demonstrates our success in managing all the drivers in our business under our control whilst our industry continues to face headwinds.

Our achievements illustrate the expertise and dedication of our teams as valued partners to our customers and principals, and as we execute our long-term strategy of becoming the reference solutions provider in our industry. Over the last three years, we have outperformed the midterm guidance set during the IPO, delivering 23% average revenue growth and 90 bps average adjusted EBITA margin expansion per year.

As I embark on my new role as Group CEO, I am excited to work with the entire Azelis team to build on the strengths we have developed over these last few years to fuel our success in the future. We continue to execute our strategy, expanding our footprint and strengthening our capabilities to ensure that we are well-positioned to accelerate growth in our existing markets and benefit from emerging opportunities across our businesses. I look forward to presenting an update on our strategy in September.”