Solid performance with strong strategic delivery

in a challenging year
Synthomer plc | Full year 2022 results
28 March 2023

Synthomer plc 2022 Full Year Results 1

Important notice

The information contained in these materials in relation to Synthomer plc ("Synthomer" or the “Group") and its subsidiaries has been prepared solely for use at this
presentation. The presentation is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any jurisdiction
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The information contained in these materials does not purport to be comprehensive and has not been independently verified. The Group, its directors, employees, agents
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surveys generally state that the data contained therein have been obtained from sources believed to be reliable, but that there is no guarantee of accuracy or
completeness of such data.
These materials do not constitute an offer or invitation to underwrite, subscribe for, or otherwise acquire or dispose of any Synthomer shares or other securities.
These materials contain certain forward-looking statements, including statements regarding the Group’s intentions, beliefs or current expectations concerning, amongst
other things, results of operations, financial condition, liquidity, prospects, growth and strategies. Any forward-looking statements are not guarantees of future performance
and involve risks, uncertainties, estimates and assumptions, which could cause actual results to differ materially from those forecast and past performance cannot be
relied upon as a guide to future performance. The forward-looking statements reflect knowledge and information available at the date of preparation of these materials and
unless otherwise required by application of law or regulation, the Group undertakes no obligation to update or revise these forward-looking statements, whether as a result
of new information, future events or otherwise. Unless otherwise stated, no statement in these materials is intended as a profit forecast or estimate for any period and no
statement in these materials should be interpreted to mean that earnings, earnings per share or income, cash flow from operations or free cash flow for the Group for the
current or future financial years would necessarily match or exceed the historical published earnings, earnings per share or income, cash flow from operations or free cash
flow for the Group.
Percentages in these materials have been rounded and accordingly may not add up to 100 per cent. Certain financial data have also been rounded. As a result of this
rounding, the totals of data presented in these materials may vary slightly from the actual arithmetic totals of such data.

Synthomer plc 2022 Full Year Results 2

 AGENDA
01 Overview – Michael Willome
02 Financial review – Lily Liu
03 Business review – Michael Willome
04 Outlook and summary – Michael Willome
05 Q&A

Synthomer plc 2022 Full Year Results 3

Solid performance with strong strategic progress
Delivering in a challenging macro environment
Robust H1 trading
deteriorated over H2
• Unprecedented destocking in NBR
• Weakening macro demand environment
• Record energy and raw material prices
• Supply chain disruption
• Solid trading in most divisions and good
cash management (supported by resilient
pricing/pass through), offset by PE declines
• Reliability and capacity issues in adhesives,
resulting in a goodwill impairment
Synthomer plc 2022 Full Year Results
Significant actions
taken in response
• Launched new strategy in October
• First non-core divestment announced
December with $267m net cash proceeds
• Completed refinancing with banks;
covenant headroom and liquidity extended
• Reduced capex, working capital and
identified further cost efficiencies
• On track for £150-200m cash savings by
end 2023
• Capital allocation rigorously re-prioritised
Confident in
medium-term delivery
• Increasingly specialty business with niche
leadership positions
• Aligned to attractive GDP+ markets,
supported by megatrends
• Global footprint for the first time
• Plan to deliver significant EBITDA margin
improvement: 15%+ target (2022: 10.5%)
• Substantial upside as markets recover,
particularly in Health and Protection
• Reviewing options for remaining non-core
business portfolio
4
 AGENDA
01 Overview – Michael Willome
02 Financial review – Lily Liu
03 Business review – Michael Willome
04 Outlook and summary – Michael Willome
05 Q&A

Synthomer plc 2022 Full Year Results 5

Group financial summary – continuing business
Solid performance vs exceptional 2021 given challenging macro environment

• Revenue +9.7% to £2,383.9m with LFL volumes (17.0)% Underlying Continuing business
– Strong price/mix and 9 months of adhesive resins acquisition offset primarily £m FY22 FY21 % change CC % change
by PE decrease relative to exceptional 2021 – medical glove destocking Revenue 2,383.9 2,144.2 +11.2 +9.7

• Continuing EBITDA (50)% at £249.2m EBITDA 249.2 498.0 (50.0) (50.0)

– Resilient pricing and raw materials pass through in specialty businesses in EBITDA margin (%) 10.5% 23.2%
H1, overtaken by increasing macro headwinds through H2 2022 EBIT 162.5 432.8 (62.5) (62.1)
– Disposal shown as discontinued in both years – Total Group EBITDA PBT (Total Group) 125.0 420.1 (70.2) (69.8)
£265.1m EPS (Total Group) (p) 20.6 75.2 (72.6)
– Key other P&L items
Special items (157.9) (130.1) (21.4)
– Interest costs higher reflecting acquisition debt taken on in year
Net debt 1,024.9 114.2 +797.5
– 22.5% effective tax rate, in line with guidance
– Special items includes £133.7m non-cash adhesive resins impairment
FY22 revenue vs FY21
• Underlying earnings per share 20.6p, down from 75.2p
Volume Price / mix M&A FX Total
– No dividend in line with cash saving plans announced in Oct 2022
(17.0)% +8.4% +18.3% +1.5% +11.2%
• Net debt £1,024.9m at end December 2022 pre-disposal
– Laminates and Films disposal reduced leverage by c.0.6x net debt: EBITDA
– Strong second half free cash flow

Synthomer plc 2022 Full Year Results 6

Group EBITDA
Year-on-year comparison affected by a range of factors

1• Prior year adjustments EBITDA bridge

– Laminates, Films and Coated Fabrics shown discontinued
– Minimal net FX effect in 2022 1
2
2• PE affected by NBR destocking all year 522 (24)
498 (272)
– Marked reduction vs. exceptional pandemic-related 2021 LFCF

3• Robust H1 for other divisions

– FS, IS, AM progressed vs H1 2021 despite record raw
material/energy prices – good pass through
3 5
259 4
9 0 (1) (22) 22 249
4• Deteriorating demand environment in H2 11
(1) (14) 18
AM Corp 1
IS
– Primarily volume-driven as macro conditions worsened PE FS
H1 H1 H1 FS IS AM Corp AT
AT
H2
H1+H2 H1 H2 H2 H2 H2 Q2
5• AT division acquired April 2022
– Q2 and Q3 in line with expectations
– Macro demand and company-specific issues during Q4
FY20 FY21 FY21 FY22
• Continuing EBITDA contribution – reported reported EBITDA EBITDA
– H1: £163m / H2: £86m (weighted to Q3 vs Q4) EBITDA EBITDA (continuing)

Synthomer plc 2022 Full Year Results 7

Functional Solutions (FS)
Resilient performance benefitting from product mix and geographic scale

• EBITDA down 9.4% at £127.8m Underlying Continuing business

– Robust commercial performance in 2022, supported by recovery in £m FY22 FY21 % change CC % change
Energy Solutions (oil & gas end-markets) Revenue 1,001.3 900.3 +11.2 +8.5
– Good H1, followed by weakening demand and inflationary pressures EBITDA 127.8 139.2 (8.2) (9.4)
over H2
EBITDA margin (%) 12.8% 15.5%
– Record raw material and energy costs
EBIT 101.1 111.1 (9.0) (10.0)
• Revenue
– Asia volumes impacted by China COVID-19 lockdown
– Strategic reduction in tolled volumes in the US FY22 revenue vs FY21
– US relatively more robust than Europe and construction more robust Volume Price / mix FX Total
than coatings in H2 (9.6)% +18.1% +2.7% +11.2%

• EBITDA margin
– Solid pass through of raw material prices achieved, offset by lower
capacity utilisation in H2
– Greater emphasis on value selling opportunities and sustainability-
focused innovation

Synthomer plc 2022 Full Year Results 8

Industrial Specialities (IS)
Specialty portfolio delivered another strong year

• EBITDA up 36.8% at £31.8m (continuing business) Underlying Continuing business

– Strong revenue and margin performance £m FY22 FY21 % change CC % change
– Highest margin products enjoyed strong commercial environment Revenue 233.9 197.2 +18.6 +18.7
in 2022 EBITDA 31.8 23.4 +35.9 +36.8
• Revenue EBITDA margin (%) 13.6% 11.9%
– Lower volumes primarily driven by speciality additives and powder coatings EBIT 25.5 15.8 +61.4 +62.0
– Offset by strong pricing pass through and mix

• EBITDA margin FY22 revenue vs FY21

– Pleasing delivery of raw material pass through and margin management Volume Price / mix FX Total

• Laminates, Films and Coated Fabrics sold 28 Feb 2023 (12.9)% +31.6% (0.1)% +18.6%

– Approx. 1/2 of the non-core assets identified at CMD; 4 sites

– 2022: revenue £201.2m, EBITDA £15.9m recorded as discontinued
– Coated Fabrics relatively robust throughout 2022
– Laminates and Films had similar H2 demand slowdown as
other areas
– Disposal accretive to divisional and Group EBITDA margins

Synthomer plc 2022 Full Year Results 9

Adhesive Technologies (AT)
Integration and synergy delivery offset by operational challenges

• EBITDA at £39.5m Underlying

– On track to deliver synergy target, Transitional Services Agreements exited 9m to Jun 21 LTM FY20 FY19
as planned in November £m Dec 2022 (unaudited) (unaudited) (unaudited)
– Two quarters performance in line with plans, followed by very challenging Q4 Revenue 391.3 433 441 453
– Overall plant capacity below expectations based on current product mix EBITDA 39.5 71 60 74
EBITDA margin (%) 10.1% 16.4% 13.6% 16.3%
• Revenue
EBIT 22.5
– Robust commercial environment in Q2, Q3 2022
– Demand weakened significantly during Q4 as macro environment
deteriorated
– Production levels affected by raw material supply and asset reliability
challenges which are being addressed
– Activity also affected by supplier plant shutdown and US weather disruption

• EBITDA margin
– Good speciality pass through, offset by the raw material supply and asset
reliability challenges

• £133.7m impairment
– Substantially all of acquisition goodwill written down (non-cash)

Synthomer plc 2022 Full Year Results 10

Performance Elastomers (PE)
Destocking throughout 2022 following unprecedented 2021 performance

• EBITDA down 84.2% at £49.1m Underlying

– Exceptional market demand for medical glove stockpiles amidst the % CC %
COVID-19 pandemic, followed by an unprecedented destocking cycle £m FY22 FY21 change change 2019
– Current period of destocking, and hence low NBR production, not Revenue 659.7 951.5 (30.7) (31.4) 623.7
expected to abate before the end of 2023 EBITDA 49.1 320.7 (84.7) (84.2) 96.3
– Paper, Carpet, Compounds and Foam also affected by H2 macro slow EBITDA margin (%) 7.4% 33.7% 15.4%
down, partially offset by cost savings
EBIT 19.5 294.9 (93.4) (92.6) 71.5
• Volumes
– Overall reduction of 23.6%, weighted to H2
FY22 revenue vs FY21
– Paper, Carpet, Compounds and Foam volumes (21)% reflects earlier
review of asset portfolio and weaker macro environment in H2 Volume Price / mix FX Total
(23.6)% (6.4)% (0.7)% (30.7)%
• Unit margins
– Raw material cost increases following energy price spike abating slowly
– NBR break-even in H2 2022 and Q1 2023, at c.35-40% utilisation levels

Synthomer plc 2022 Full Year Results 11

Acrylate Monomers (AM)
2021 supply/demand imbalance normalising

• EBITDA down 38.5% at £21.7m Underlying

– Reflects continuing normalisation of unit margins from exceptional £m FY22 FY21 % change CC % change
levels in 2021 Revenue 97.7 95.2 +2.6 +2.5
– Record revenue and robust volumes given energy cost increases and EBITDA 21.7 35.3 (38.5) (39.1)
weaker macro environment
EBITDA margin (%) 22.2% 37.1%
• Volumes EBIT 20.6 34.5 (40.3) (40.9)
– 50.8ktes moderated due to change in mix and planned maintenance
outages
FY22 revenue vs FY21
• Unit margins
Volume Price / mix FX Total
– Normalising as result of raw material and energy inflation, and
additional supply from regions outside Europe continuing to rebalance (9.1)% +11.6% +0.1% +2.6%
market

Synthomer plc 2022 Full Year Results 12

2022 cash flow
Strong H2 cash flow, on track to save £150-200m cash relative to previous plans by end 2023

Key cash saving measures underway: 2022 Free Cash Flow

£m H1 2022 H2 2022 FY 2022
• Cost control
Total EBITDA 173.1 92.0 265.1
– c.100 headcount reduction principally from divisional restructuring towards
end of 2022 – c.£10m run-rate savings JVs (0.6) (1.1) (1.7)
– Significant further cost saving actions planned across the Group in 2023 Net working capital (128.0) 147.1 19.1
Capital expenditure (33.2) (57.6) (90.8)
• £147m working capital reduction in H2 2022 Interest (13.9) (24.3) (38.2)
– Including £83m from new receivables financing facilities Tax (49.3) (16.3) (65.6)
– c.16% inventory reduction (raw material price and volume) Pensions (11.5) (9.8) (21.3)
– Focused on reducing NWC in acquired adhesive resins business in 2023 Other 1.4 1.2 2.6

• Capital expenditure Free Cash Flow (62.0) 131.2 69.2

– In H2 reduced plans by c.£40m; £91m deployed in 2022 (2021: £82m)

– 2023: expect c.£75-85m, mainly focused on SHE, excellence programmes
and disentangling non-core businesses
– Maintenance/SHE capital expenditure c.£50m p.a.

• Dividends suspended as announced in October 2022

– Announced 2022 interim dividend of £20m cancelled
– Committed to restoring dividends once leverage returns to appropriate levels

Synthomer plc 2022 Full Year Results 13

Balance sheet and liquidity
Bank refinancing and other actions strengthen platform to support recovery

• UK Export Finance facility signed October 2022 Key debt facilities pre-and post-RCF refinancing (£m)
– €287.5m and $230m committed facilities guaranteed by UK government
– Attractive long-term source of finance (October 2027 maturity) Year end 2022 Post-refinancing

• Receivables financing signed December 2022 Term Loan 1

(Oct 2024)
248 -
– Helps manage significant increase in raw material prices and optimise cash generation
– 2 year, €200m committed and $70m uncommitted facilities Term loan 2
215 -
(Jul 2024)

• Bank RCF signed 20 March 2023

Eurobond
– New $480m revolving credit facility to Jun 2025 agreed (Jun 2025)
460 457

– Covenant temporarily set at higher levels for prudence as part of agreement:

– Net debt:EBITDA Jun 2023: 6x, Dec 2023: 5x, Jun 2024: 4.25x, Dec 2024: 3.5x UKEF
445 444
(Oct 2027)
– $260m and $300m term loans repaid and cancelled
RCF
– Financing cost c.£65-70m in 2023 following refinancing and other actions (Jul 2024/ 407 399
Jun 2025)
• $520m, 3.875% bond in place matures June 2025

• c.£500m pro forma committed liquidity (incl. receivables financing) as at

end February 2023 following disposal proceeds

• Committed to reducing net debt to 1-2x EBITDA in the medium term

Synthomer plc 2022 Full Year Results 14

 AGENDA
01 Overview – Michael Willome
02 Financial review – Lily Liu
03 Business review – Michael Willome
04 Outlook and summary – Michael Willome
05 Q&A

Synthomer plc 2022 Full Year Results 15

Synthomer strategy recap
Significant opportunity to deliver sustained value for shareholders

Leading positions in niche markets with attractive growth

1 prospects supported by structural megatrends

Growth focus on Construction, Coatings and Adhesives

2 enhanced by end-market orientation and innovation

Substantial upside in Health and Protection led by market

3 recovery and operational excellence

4 Simplify portfolio and deliver on synergies

5 Clear plan for significant EBITDA margin improvement

6 Sustainability as a value driver underpinning everything we do

Focus Strengthen Grow

Synthomer plc 2022 Full Year Results 16
Construction & Coatings Solutions
Strong position in attractive end-markets with resilient and GDP+ growth fundamentals

• Our opportunity CCS division in FY22

– Leading EU positions with solutions to enhance energy efficiency, waterproofing Revenue £996.1m
– Leveraging global network and high performance technology platforms EBITDA £120.8m
– Sustainability and regulatory tailwinds underpin GDP+ growth EBITDA margin 12.1%
– Healthy innovation pipeline Employees 1,900
• Business/market update Sites 17
– Weaker demand environment in H2, particularly in consumer end markets and weighted
to Europe
– Strong market backdrop and performance in Energy Solutions
2022 revenue
– Similar Q1 2023; anticipate stronger H2 2023 as macro conditions begin to improve
Architectural coatings 32%
• Our focus in 2023 – strengthen organic growth capability
Industrial coatings 11%
– Further alignment with strategic end markets to improve geographical balance and Construction 22%
strengthen positions
Consumer materials 27%
– Portfolio improvements through sustainable innovation and customer value propositions Energy Solutions 9%
– Asset optimisation and network efficiency projects, improving cost control and capacity
management

Synthomer plc 2022 Full Year Results 17

Adhesive Solutions
New global speciality chemicals platform, clear plan in place to drive value

• Our opportunity AS division in FY22

– Range of #1 or #2 positions in specialty adhesives in US and Europe (incorporating adhesive resins since
1 April 2022 acquisition)
– Long-term relationships with 300+ customers
Revenue £572.9m
– Significant revenue synergies from combined business
EBITDA £67.2m
– Market-focused innovation pipeline with strong sustainability angle
EBITDA margin 11.7%
• Business/market update Employees 600
– Good integration – TSA ended as planned and $25-30m synergy plans on track Sites 6
– Raw materials access and asset reliability more difficult than expected
– Energy costs and macro slowdown has impacted performance since Q4 2022 2022 revenue
– Expecting self-help, and improving macro conditions in H2, to progressively improve
performance in 2023 Tapes & Labels 31%
Packaging 14%
• Our focus in 2023 – increase operational and supply chain reliability Hygiene 12%
– Reprioritising capital expenditure – debottlenecking to improve asset reliability, on-time Plastic modification 15%
performance and increase capacity Tires 12%
– Broadening raw material supply Other 16%
– Continue to reduce working capital towards typical Group levels
– Implementing organisational changes and Synthomer excellence with substantial cost
reduction programmes at two sites

Synthomer plc 2022 Full Year Results 18

Health & Protection and Performance Materials
Well-positioned in NBR for post-pandemic destocking recovery in 2024

• Our opportunity HPPM division in FY22

– Market leader in £3bn NBR market – cyclical but also high underlying structural growth trend (continuing operations)
– Hygiene and emerging market megatrends support c.6% per annum growth Revenue £814.9m
– Innovation focused on process improvement and reducing scope 1, 2 & 3 emissions EBITDA £81.9m
– Performance Materials – attractive niches but non-core. £565m non-core revenue remaining EBITDA margin 10.1%
following the £201m revenue/4 sites sold in Q1 2023 Employees 1,300

• Business/market update Sites 14

– NBR destocking cycle throughout 2022; not expected to abate before the end of 2023
– Performance Materials businesses remain relatively weak in Q1 2023; expecting stronger H2
2022 continuing revenue
• Our focus in 2023 – rigorous cost and capacity management plus strategic
Health & Protection
measures for the non-core units 29%
Paper 19%
– Strengthen overall cost competitiveness for Malaysia supply chain
Carpet 11%
– Enhancing customer intimacy and share of demand globally Acrylic monomers 13%
– Process innovation to help customers lower energy consumption and carbon footprint Rubber & Plastic Additives 15%
– Reviewing further divestitures and other options for non-core portfolio William Blythe 7%
Compounds 6%

Synthomer plc 2022 Full Year Results 19

Business excellence
Further progress made in key Group-wide initiatives underpinning future growth

SHE Excellence Procurement Excellence Manufacturing Excellence Commercial Excellence

Value Gap

Examples of end-to-end business excellence programmes in action

Worms Jefferson Hills Mogadore Kluang

CCS division AS division CCS division HPPM division
Rheinland-Pfalz, Germany Pennsylvania, USA Ohio, USA Johor, Malaysia
Debottlenecking / downtime reduction Site reliability, supply/shipping Unlocking product mix benefits Process innovation, capacity management

Synthomer plc 2022 Full Year Results 20

Innovation and sustainability
Fundamentally linked as part of our strategy

New and protected products Annual target Scope 1 and 2 absolute GHG emissions reduction 2030 target

20% >20% 36%

increased to

of annual sales volume since 2019 47%

New products with sustainability benefits 2030 target Proportion of female senior leaders 2030 target

50% 60% 25%

increased to

up from up from 43% in 2021 up from up from 9% in 2019 40%

Selected ratings and other recognition for Synthomer’s sustainability activities

‘Leader’ in managing ESG Recognised for contribution Third decile in industry Member since 2004 Top quintile ESG score Sustainability management Demonstrating
risks and opportunities, top to green economy: >50% sector for ESG risk of global industry sector system in top quartile of management of climate
quartile of industry sector sustainable revenue industry sector change and water security

Synthomer plc 2022 Full Year Results 21

 AGENDA
01 Overview – Michael Willome
02 Financial review – Lily Liu
03 Business review – Michael Willome
04 Outlook and summary – Michael Willome
05 Q&A

Synthomer plc 2022 Full Year Results 22

Outlook
• Current trading and outlook for 2023 Synthomer in FY22
(continuing operations)
– Year to date trading similar to Q4 2022, reflecting subdued demand given CCS
Revenue £2,383.9m
challenging macro conditions £121m
EBITDA £249.2m AS
– Expect some progress in H2, reflecting our operational and cost actions £67m
EBITDA margin 10.5% HP PM
– Beginning of improvement in market conditions in H2 also anticipated, Employees 4,400 £25m £57m
albeit visibility is currently limited £(21)m corporate cost

Sites 37
– NBR destocking not expected to abate before the end of 2023

• Well-positioned for profitable growth in the medium term

– Health and Protection: underlying glove demand continues to grow and
pandemic-driven destocking cycle will come to an end
– PE pre-pandemic EBITDA £96m (2019)
– Acquired adhesives annualised EBITDA £70m+ prior to Q4 2022 before synergy
target of $25-30m (contributed £39.5m in 2022)
– Recovery in macro market conditions expected to support earnings in CCS, AS
and PM

Synthomer plc 2022 Full Year Results 23

Summary

• Robust trading environment in H1 (ex NBR)

• Margin and pricing power maintained in specialty; weaker demand/volume

environment in H2

• Decisive actions taken to navigate current macroeconomic environment

• Strong cash generation demonstrated in H2

• Strategy refreshed and implementation well on track

• Well-positioned to drive profitable growth in the medium term

Synthomer plc 2022 Full Year Results 24

 AGENDA
01 Overview – Michael Willome
02 Financial review – Lily Liu
03 Business review – Michael Willome
04 Outlook and summary – Michael Willome
05 Q&A

Synthomer plc 2022 Full Year Results 25

 APPENDICES
01 Technical guidance
02 Divisional reorganisation
03 Special items
04 Foreign exchange and pensions

Synthomer plc 2022 Full Year Results 26

Appendix 1
2023 technical guidance
A transitional year for the business

• New three division structure from 1 January 2023 Divisional restructuring (2022 continuing EBITDA contribution)
– See Appendix 2 for further details
Old structure New structure
• Laminates, Films and Coated Fabrics disposal
– $267m net proceeds
– Reported as discontinued

• Financing costs
– Increases to c.£65m following refinancing

• Tax
– Effective tax rate c.23%

• £39m EC Styrene fine payable in Q3 2023

• c.£20m to finalise opening balance sheet

adjustments on adhesive resins acquisition

Note: £20.7 million in 2022 corporate costs not allocated above.

Synthomer plc 2022 Full Year Results 27

Appendix 2
Divisional reorganisation

Old five division structure New three division structure

2022 (£m) 2022 (£m)
PE FS IS AM AT Corp Cont. Disc. (IS) Total CCS AS HPPM Corp Cont. Disc. Total
Revenue 659.7 1,001.3 233.9 97.7 391.3 - 2,383.9 201.2 2,585.1 Revenue 996.1 572.9 814.9 - 2,383.9 201.2 2,585.1
EBITDA 49.1 127.8 31.8 21.7 39.5 (20.7) 249.2 15.9 265.1 EBITDA 120.8 67.2 81.9 (20.7) 249.2 15.9 265.1
EBITDA margin (%) 7.4 12.8 13.6 22.2 10.1 - 10.5 7.9 10.3 EBITDA margin (%) 12.1 11.7 10.1 10.5 7.9 10.3
EBIT 19.5 101.1 25.5 20.6 22.5 (26.7) 162.5 8.7 171.2 EBIT 94.1 44.5 50.6 (26.7) 162.5 8.7 171.2

2021 (£m) 2021 (£m)

PE FS IS AM AT Corp Cont. Disc. (IS) Total CCS AS HPPM Corp Cont. Disc. Total
Revenue 951.5 900.3 197.2 95.2 - - 2,144.2 185.3 2,329.5 Revenue 920.2 155.5 1,068.5 - 2,144.2 185.3 2,329.5
EBITDA 320.7 139.2 23.4 35.3 - (20.6) 498.0 24.2 522.2 EBITDA 141.1 22.5 355.0 (20.6) 498.0 24.2 522.2
EBITDA margin (%) 33.7 15.5 11.9 37.1 - - 23.2 13.1 22.4 EBITDA margin (%) 15.3 14.5 33.2 - 23.2 13.1 22.4
EBIT 294.9 111.1 15.8 34.5 - (23.5) 432.8 18.1 450.9 EBIT 111.7 18.2 326.4 (23.5) 432.8 18.1 450.9

Synthomer plc 2022 Full Year Results 28

Appendix 3
Special items
• Amortisation of acquired intangibles increased reflecting adhesive resins acquisition
Continuing operations
£m FY22 FY21 • £133.7m non-cash impairment charge, reflecting reliability and supply chain issues and lower-
than-expected capacity as well as demand weakness in Adhesives Technologies
Amortisation of acquired intangibles (44.8) (30.1)
• Restructuring and site closure costs comprise:
Impairment charge (133.7) -
– £9.3m for ongoing integration of adhesive resins into the Group;
Restructuring and site closure costs (19.2) (29.7) – £3.2m for closure of a smaller site in Malaysia; and
Acquisition costs and related gains (6.5) (11.9) – £6.7 million for costs of further demolition and site rationalisation, strategy refresh and
Sale of business (0.3) (7.4) reorganisation into three new divisions.

Regulatory Fine 21.5 (57.2) • Acquisition costs and related gains relate to adhesive resins and comprise £11.9m of costs
and fees, offset by £5.4m gain on a derivative entered into to hedge the acquisition price
Total impact on operating loss (183.0) (136.3)
• Regulatory Fine relates to the European Commission investigation into styrene monomer
Fair value gain on unhedged interest derivatives 25.1 6.2
purchasing practices of a number of companies, including Synthomer, operating in the
Total impact on profit before taxation (157.9) (130.1) European Economic Area. In 2021, Synthomer made a provision of £57.2m; in 2022, the
Taxation Special Items 3.6 8.8 Commission concluded its investigation, resulting in a fine of £38.5m, resulting in a credit to
the P&L via Special Items in 2022
Taxation on Special items 39.3 11.5
• In July 2018 the Group entered into swap arrangements to fix euro interest rates on the full
Total impact on profit for the year (115.0) (109.8)
value of the then €440m committed unsecured RCF. The fair value gain relates to the
– continuing operations
movement in the mark-to-market of the swap in excess of borrowings under the facility
• Taxation Special Items comprised a prior period adjustment in relation to a historical tax issue
in Malaysia
• Taxation on Special Items is mainly deferred tax credits arising on the amortisation of
acquired intangibles and impairment of the goodwill relating to the Adhesive Technologies
division

Synthomer plc 2022 Full Year Results 29

Appendix 4
Foreign exchange and pensions

FX translation exposure – EBITDA impact Pensions

FY22 translation • Net consolidated pension liability reduced £49.0m to £73.4m at
Currency Movement sensitivity 31 December 2022, driven by cash contributions and actuarial
EUR € 0.01 £0.9m gains resulting from changing discount rates offset by lower
USD $ 0.01 £0.5m expected return on plan assets
MYR MYR 0.01 £0.0m • Closing balance primarily formed of unfunded defined benefit
pension scheme in Germany £57.7m
Exchange rates to £1 in the period
• 2022 deficit recovery payments of £17.9m and £2.9m
Currency FY22 average FY21 average Spot rates respectively in respect of UK and US schemes
EUR € 1.17 € 1.17 € 1.14
USD $ 1.24 $ 1.37 $ 1.22
MYR MYR 5.43 MYR 5.70 MYR 5.41

Synthomer plc 2022 Full Year Results 30