Nexam Chemical (NEXAM) ABGSC Investor Days summary

Strategic direction and business focus

• Shifted to focus on additives that enhance plastic performance and circularity, with a global market orientation and increased profitability targets.

• Completed a successful cost program, enabling self-funding of operations and development initiatives.

• Commercial strategy now segments offerings by value-added properties: lightweighting, high-temperature resistance, aesthetics, and recycling.

• Recycling segment, treated as an internal startup, is transitioning to scale-up with strong market traction and significant future potential.

• Additives portfolio is patented and serves diverse applications, including wind power, microelectronics, and waste management.

Market trends and growth opportunities

• Sustainability megatrends drive demand in both lightweighting and recycling segments.

• Global plastics production is rising, but recycling markets are expanding rapidly, especially in developed regions.

• EU and other regions have ambitious targets for recycled content in packaging, creating strong growth prospects.

• Additives enable customers to use more low-cost recycled materials, reducing raw material costs by up to 25%.

• Solutions applicable to 50% of global plastics volume, with enormous growth potential as recycling technology advances.

Financial performance and outlook

• Quarterly revenue stable at around 50 million SEK, with a gross margin of 47%, the highest to date.

• Stable net cash flow achieved, allowing self-funding of R&D, business development, and CapEx.

• Margin improvements driven by insourcing, efficiency, and product-level cost optimization.

• Market share in the wind segment has increased despite overall market weakness; recycling segment is now gaining traction.

• Capacity exists to double sales without further investment, with individual months showing significant sales variability.