Morgan Advanced Materials (MGAM) Strategy Update summary

Strategic vision and market positioning

• Aims to become a leading force in chosen markets by leveraging a century of expertise, technology leadership, and strong differentiators.

• Multi-year strategy focuses on operational improvement, asset utilization, higher-margin growth, and active portfolio management.

• Business is diversified across end markets, including aerospace, healthcare, semiconductors, and industrial processes, providing resilience and growth opportunities.

• Operates globally with around £1.0bn in revenue and 8,100 employees across 57 sites.

• Emphasizes customer intimacy, supply chain effectiveness, and building strategic partnerships to enhance value proposition.

Operational transformation and growth levers

• Targets 12% operating margins by 2028, with a roadmap to 12–14% sustainable margins beyond 2028 through operational effectiveness and portfolio management.

• Transformation includes group-wide procurement, digitalization, and turnaround of underperforming sites, aiming for £20m margin improvement by 2028.

• Focuses on strategic customer collaborations, expanding value proposition, and proactive portfolio management including M&A and divestitures.

• Emphasizes agility, leveraging group scale, and streamlining back-office functions for efficiency and growth.

• Portfolio maximization through partnerships, divestments, and bolt-on M&A activities.

Divisional mandates and market focus

• Thermal Products: Optimize costs, enhance delivery, expand in high-value segments, target 8%-10% margins.

• Performance Carbon: Extend leadership, serve regulated markets, innovate in defense and industrial seals, target 14%-18% margins.

• Technical Ceramics: Optimize network, invest in aerospace/defense, expand into adjacencies, target 12%-16% margins.

• Each division executes tailored mandates to drive above-GDP growth and operational improvements.