AIM: AXS

Euronext Amsterdam: AXS

30 January 2025

Accsys Technologies PLC

("Accsys", the "Group" or the "Company")

Investor Strategy Day

FOCUS strategy sets out vision for growth

Accsys, the world's leading supplier of premium, high performance and sustainable wood building materials, is today holding its Investor Strategy Day at its site in Arnhem, NL

The Senior Leadership Team, led by Dr Jelena Arsic van Os, Chief Executive Officer and Sameet Vohra, Chief Financial Officer, will set out the Group's FOCUS strategy together with operational and financial performance targets.

FOCUS

The FOCUS strategy is designed to build on the Company's global manufacturing footprint in Arnhem and Kingsport to deliver strong financial and operational performance. The strategy is structured across three phases, each with clear operational and financial performance targets aimed at maximising shareholder value:

·    Phase One "Transform and improve" (up to end of FY27). This phase will focus on sustainable, profitable growth from existing assets, maintaining a lean and efficient cost structure and debt reduction. The Company is targeting a run rate sales volume of 100,000m³ by the end of the period and expects the Kingsport production facility to be profitable in FY26.

·    Phase Two "Optimise" (FY28-FY30). The focus during this phase will be on implementing operational efficiencies to deliver the full capacity of the two plants, with a continuous focus on debt reduction driven by strong free cash flow generation. The Company is targeting a run rate sales volume of 120,000m³ by the end of FY30 and will also optimise the Accoya Color production footprint.

·   Phase Three "Grow" (post FY30). The Company plans to pursue growth opportunities with further capital investment, leveraging at that time, the proven US expansion model.

The Group will target to maintain its gross margin of 30% throughout Phases 1 and 2 and will target an Adjusted Group EBITDA Margin* of 12% by the end of Phase 1, increasing to 15% by the end of Phase 2. The Company has also set a target of at least 75% operating cashflow conversion.

As part of the strategy, the Company will outline the operational, product innovation and commercial plans to achieve the FOCUS strategy.

Jelena Arsic van Os, CEO Accsys Technologies commented: "We are excited to unveil the details of our FOCUS strategy, which will deliver a fundamentally strong, cash generative and profitable business. Accsys is at an inflection point having established a global manufacturing footprint and is now moving into a new and exciting phase of growth. At the core of our strategy is unwavering focus on our customers, ensuring that we continue to innovate and enhance further their experience with Accsys.

Our strategy has the potential to drive significant and sustainable shareholder value. This is a pivotal time for the Company, and we are looking forward to sharing our vision for the future."

A recording of the presentation will be made available on the website (www.accsysplc.com) following the event.

* Adjusted EBITDA is defined as operating profit/(loss) before exceptional items and other adjustments, depreciation and amortisation, and includes the Group's 60% share of the JV's EBITDA

Ends

Enquiries:

Investor Relations / Analysts:                                                                                                 [email protected]

Media:  Clemens Sassen, Tessa Nelissen, Huijskens Sassen Communications (NL)             +31 (0) 20 68 55 955

Deutsche Numis (London):  Oliver Hardy (NOMAD), Ben Stoop                                           +44 (0) 20 7260 1000

ABN Amro (Amsterdam):  Richard van Etten, Dennis van Helmond                                      +31 20 344 2000

Notes to editors:

Accsys (Accsys Technologies PLC) is a fast-growing business with a purpose: changing wood to change the world. The company combines chemistry, technology and ingenuity to make Accoya^® wood and Tricoya^® wood chips:  high performance wood products that are extremely durable and stable, opening new opportunities for the built environment and giving the world a choice to build sustainably. Accsys transforms fast-growing, certified sustainable wood into building materials with an up to 50-year warranty, locking carbon stored in the wood into useful products for decades, with performance characteristics that match or better those of non-renewable, resource-depleting and polluting alternatives.  Accsys is listed on the London Stock Exchange AIM market and on Euronext Amsterdam, under the symbols 'AXS'.

Accsys is a Participant of the United Nations Global Compact and adheres to its principles-based approach to responsible business.

Visit www.accsysplc.com 

Accoya^® solid wood is sustainable, durable, and stable with exceptional performance, finish and sustainability. Accsys' proprietary acetylation process makes the wood more dimensionally stable and because it is no longer easily digestible, extremely durable. It is one of very few building materials to be Cradle to Cradle Certified™ at the Gold level, with a Platinum rating for Material Health, confirming that no harmful or toxic additives or chemicals are present to leach out into the environment. Primary applications for Accoya^® wood include windows, doors, cladding and decking, where the combination of performance and sustainability benefits compete favorably against hardwoods, plastics, metals and concrete. Visit www.accoya.com

Tricoya^® acetylated wood elements are produced for use in the fabrication of panel products such as medium density fibreboard (MDF). Panel products made with Tricoya^® wood elements are truly durable and stable enough for use outdoors and in wet environments, unlocking new possibilities for design and construction. They have been lauded as the first major innovation in the wood composites industry in more than 30 years and bring the flexibility of traditional panel products and sustainability benefits of wood to a whole new range of applications. Visit www.tricoya.com

Any references in this announcement to agreements with Accsys shall mean agreements with either Accsys or its subsidiary entities unless otherwise specified. 'Accsys' and 'Accsys Technologies' are trading names of Titan Wood Limited ("TWL"), a wholly-owned subsidiary of Accsys Technologies PLC. Accoya^®, Tricoya^® and the Trimarque Device are registered trademarks owned by TWL, and may not be used or reproduced without written permission from TWL, or in the case of the Tricoya^® registered brand trademark, from Tricoya Technologies Limited, a subsidiary of TWL with exclusive rights to exploit the Tricoya^® brand.