Press Release

Morgan Advanced Materials plc

6 December 2022

Capital Markets Event

"Delivering resilient, scalable growth"

Morgan Advanced Materials plc will hold a Capital Markets Event this afternoon at the Science Museum in London.

The event will include a series of presentations by our senior leadership team, which will focus on our opportunities for profitable growth as a global manufacturer of advanced carbon and ceramic materials for complex and technologically demanding applications.  These include specific initiatives to drive sustainable growth through the industrial cycle.

We also set out the following through the cycle financial objectives:

-      Accelerating Organic Revenue Growth. Extending our position in faster growing markets, supporting 3-6% p.a.

-      Attractive Margins.  12.5% - 15% adjusted operating profit margin

-    Delivering EPS Growth.  Achieving enhanced growth in adjusted Earnings per Share, ahead of organic revenue growth, driven by a combination of organic growth, inorganic activity and shareholder returns

-      Leverage Range. 1.0x to 2.0x adjusted EBITDA

-      Sustaining ROIC. 17 - 20% ROIC

In addition, we set out the following capital allocation policies:

-    Focussing Organic Investment.  Investment to enhance growth and returns, including an additional £60m of capital in our Semiconductor manufacturing capacity over the next few years

-   Enhancing Regular Returns via a Progressive Dividend Policy. Grow the regular dividend through the cycle with an adjusted earnings cover of c.2.5x

-   Inorganic Activity.  Complementary, disciplined M&A focused on accelerating revenue growth opportunities in faster growing markets

-    Additional Returns. Additional returns of surplus capital to shareholders as appropriate.

The presentation for the event will be made available at www.morganadvancedmaterials.com at 14:00 UK time today.  A recording of the presentation will be made available following the event.

Accelerated Pension Contribution

We have agreed with the Trustees of our UK Defined Benefit Pension Schemes a contribution of £67m that will create further balance sheet flexibility whilst substantially reducing future cash contributions.  Further detail is provided in a separate RNS released today.

RCF Renewal

We have secured a new five-year Revolving Credit Facility of £230m that replaces our existing RCF that was due to mature in 2023.

FY22 Guidance

Our outlook and guidance for full year 2022 provided in our Trading Update of 4 November 2022 remain unchanged.

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