Azelis Group (AZE) investor relations material

Industry trends and market drivers

• Evolving megatrends include persistent market complexity, global manufacturing shifts, and accelerated regulatory and sustainability demands, with AI transforming customer interactions and productivity.

• The speciality chemical distribution market is large, growing, and fragmented, offering significant M&A opportunities for global players.

• Structural market growth is supported by resilient, diversified end markets, with services outperforming manufacturing since 2022.

• Key growth areas include life sciences, food & nutrition, personal care, and advanced materials, driven by health, sustainability, and innovation trends.

• Large global players are best positioned to win due to scale, digitalisation, regulatory strength, and M&A funding.

Business model and strategic positioning

• Operates a global platform with €4.1bn revenue, presence in 64 countries, and over 70 application labs.

• Focuses on value-added services, technical support, and innovation, integrating closely with customers and principals.

• Maintains a diversified footprint across life sciences (63% of revenue) and industrial chemicals (37%).

• Recognised for ESG leadership, with top-tier ratings from MSCI, Sustainalytics, and EcoVadis.

Financial performance and growth

• Achieved a 16.9% revenue CAGR (2015-2025), with gross profit margins expanding from 20.9% to 24.0% and EBITA CAGR of 26%.

• Maintains high conversion margins (mid-40s) and strong free cash flow conversion (90%+).

• Demonstrates consistent margin expansion, with 220bps EBITA margin uplift since 2019.