Azelis Group (AZE) Investor Lab Tour 2024 Istanbul Presentation summary

Market overview and industry trends

• Specialty chemicals and food ingredients distribution is a large, high-growth market, expanding 1.2x faster than global GDP, with a 2023 market size of €220bn and strong demand for value-added services and technical support.

• The industry is highly fragmented, with over 20,000 participants, offering significant M&A opportunities and advantages for large global players.

• Key megatrends include persistent volatility, regulatory and sustainability pressures, digital transformation, and a tightening global workforce.

• EU-based producers face challenges from high input costs and competition from Asia, while global trade patterns are shifting.

• Chemical distributors have outperformed other chemical peer groups, with distribution stocks rising 130% since 2014.

Business model and value creation

• Azelis operates an asset-light, specialty-focused model diversified across multiple end-markets and geographies, serving over 63,000 customers in 65 countries.

• The company creates value through formulation expertise, technical support, and a broad, innovative product portfolio, supporting both customers and principals.

• Its lateral value chain enables support for innovation, regulatory compliance, and market intelligence, driving growth for principals and customers.

• Azelis leverages 70+ application labs globally to drive innovation, develop new formulations, and support product launches.

Strategic pillars and growth drivers

• Growth is driven by innovation, sustainability, digitalization, and active consolidation through M&A.

• The IMPACT 2030 program integrates sustainability across portfolio, social, environmental, and governance pillars, aiming for industry-leading ESG performance.

• A unified global digital ecosystem supports commercial excellence, operational efficiency, and enhanced customer and principal experiences.

• Azelis pursues M&A to expand geographically, strengthen key segments, and fill portfolio gaps, with a proven track record of over 40 successful integrations since 2017.