IMCD N.V.

Good morning, everyone. As usual, I'm here with Hans Kormans, and we're happy to take your questions in a moment. My name is Piet van der Slikker. We started 2023 with a strong first quarter, with an EBITDA growth of 6%, and even adjusted for Forex, 8%. Certainly, when you realize that we grew Q1 2022 with 59%, We were able to hold revenue more or less at the same level as quarter one 2023 and were able to increase our margin. The business segments in life science performed quite well. In the industrial segments we saw effects of destocking and slowing down of demand. We completed two acquisitions in Q1, one in the UK and one in China. Sunrise in China will give us a strong position in the beauty and personal care market in that country. We closed the small balls on acquisition in Sweden last week, signed two deals in South Africa and India, and we expect to do more acquisitions in the course of this year. So we have proven resilience throughout our history. We remain very positive about our ability to grow organically and by adding businesses. Hans, I will take your questions later, and Hans will now give you a short update on the numbers.

Thank you, Piet, and good morning, ladies and gentlemen, and as usual, a short summary of the first quarter 2023 results from our start on page 9 of the presentation. We are happy to report a solid start of the year. Forex suggested revenue increased 5% and gross profit increased 9% in the first quarter of this year and The growth profit increase was a combination of 5% organic growth and 4% as a result of the first-time inclusion of companies that we acquired in 2022 and the start of this year. Growth profit in percentage of revenue improved by 0.8% to 25.9%. And this increase in percentage was amongst others a combination of product mix effects, changes in local market circumstances, and successful internal gross margin improvement initiatives. Forex adjusted operating EBITDA increased 8% to $149 million, and the operating EBITDA margin increased by 0.2% to 12.8%. The conversion margin calculated as operating EBITDA in percentage of gross profit was 49.5%, which is slightly below the same period of last year, Forex adjusted net result increased 6% to 83 million. Compared to Q1 last year, both free cash flow and cash conversion margin more than doubled to respectively 147 million and 97%. And this increase was a combination of increased operating EBITDA and a relatively low investment in working capital as a result of more modest top line development. Networking capital translated in days of revenue was 60 days, close to the 59 days reported end of December. Year-to-date cash earnings per share were €1.74, an increase of 6% compared to the same period of last year. And then on the last line of this page, you could see a 14% increase in our number of employees, and this increase is a combination of organic growth and a first-time inclusion of acquisitions. Then on the next page, slide 10, a lot of numbers, and you will find growth, profit, EBITDA, conversion margin per operating segment. As you can see, EMEA reported 9% Forex-adjusted growth, profit growth, and 7% operating EBITDA growth. Operating EBITDA and percentage of revenue in EMEA improved 0.3% to 13.6%. And as most of the acquisitions in this region were relatively small, it's fair to assume that the impact of acquisitions was limited and most of the growth in EMEA was organic. Americas, the next column, reports a Forex-adjusted growth profit increase of 6%, an operating EBITDA increase of 8%. A part of this EBITDA growth is acquisition-related and is a result of the impact of M&A done in 2022. Asia Pacific in the third column reported 14% growth, profit growth, and 8% operating EBITDA growth on a constant currency basis. The decrease in conversion margin is the result of higher growth profit being more than before offset by relatively higher on-cost growth in this region. And in the last column, the cost of holding companies, and as you know, this includes all normal operating companies, including costs related to the head office in Rotterdam and the regional support offices in Singapore and the US. On page 11, the summary of the free cash flow. Adjusted operating EBITDA increased 8 million, which is in line with the reported operating EBITDA growth. Then 2 million of CAPEX, followed by a relatively low 2 million working capital investment. As mentioned before, last year's substantial 75 million working capital investment was mainly the result of an all-time high 25% organic revenue growth in Q1 last year. A short update on net debt and leverage, reported leverage ratios and leverage based on the definition used in the, the definitions in the new loan documentation were more or less similar compared to 2022 year end numbers at 1.8 and 1.3 times LTM EBITDA. The 1.3 times leverage ratio is well below the lowest 3.5 times leverage threshold in the IMCD loan documentation. You might have seen that in February we completed the refinancing of IMCD's multi-currency revolving credit facility, and the new facility amounts to 600 million as interest margins based on external credit ratings and a five-year term. The first maturity date of this new facility is March 2028. And then last but not least, our outlook for 2023 on this page that you might have seen. And so far, the short summary of our year-to-date financials. And Pieter and myself are happy to answer your questions. So I would like to give back to Sharon, the operator.

Thank you.