Synthomer plc:
Innovative, sustainable solutions
Annual Report 2022
Contents
STRATEGIC REPORT
2 Who we are and what we do
We are a world-leading supplier of high-performance speciality chemical products, and our strategy and business structure enable us to harness our focus on sustainability and innovation to serve customers in highly attractive end markets.
27 Review of the year
We describe the actions we have taken to strengthen our balance sheet and refresh our strategy, and we report performance for the five divisions
in place during 2022, prior to our reorganisation on 1 January 2023.
39 Synthomer and sustainability
Sustainability is one of the critical enablers of our strategy, and our Vision 2030 roadmap sets out how we are delivering on our commitments on environmental, social and governance (ESG) issues.
2 | Our year at a glance | 28 | Financial review: CFO's introduction | 40 | Sustainability introduction |
4 | Chair's statement | 30 | Financial review | 44 | Our approach to sustainability |
7 | Chief Executive Officer's review | 34 | Divisional performance reviews | 46 | Products |
10 | Our business model | 53 | Operations | ||
12 | Our strategy | 63 | People |
14 Our new divisional structure
16 - Introducing: Coatings & Construction Solutions
18 - Introducing: Adhesive Solutions
20 - Introducing: Health & Protection and Performance Materials
- Our key performance indicators
- Innovation
73 Risk and other disclosures
We have strengthened our risk governance, reviewed our principal risks, and continued to adapt our risk management framework to ensure our business is protected while we pursue our strategic objectives.
74 Managing risk
78 Principal risks and uncertainties
84 Task Force on Climate-related Financial Disclosures (TCFD) report
90 Viability statement
90 Non-financial and s.172 disclosures
Synthomer plc Annual Report 2022
GOVERNANCE REPORT | FINANCIAL STATEMENTS | OTHER INFORMATION | ||
STRATEGIC REPORT - Contents
91
- Our Board of Directors
- Our Executive Committee
- Introduction from the Chair
- Our governance structure
- The Board's year
105 Stakeholder engagement
(s.172 compliance)
108 Audit Committee report
- Nomination Committee report
- Compliance with the Code
- Directors' remuneration report:
- - Introduction from the Chair
- - Remuneration at a glance
- - Proposed new remuneration policy
- - Annual report on remuneration
- Directors' report
- Statement of Directors' responsibilities
153
Group financial statements
- Independent auditors' report
- Consolidated income statement
162 Consolidated statement of comprehensive income
- Consolidated statement of changes in equity
- Consolidated balance sheet
- Consolidated cash flow statement
- Reconciliation of net cash flow from operating activities to movement in net debt
- Notes to the consolidated financial statements
Company financial statements
- Company statement of financial position
- Company statement of changes in equity
- Notes to the Company financial statements
211
212 Environmental performance summary
216 Global Reporting Initiative (GRI) content index
- Glossary of terms
- Historical financial summary
- Advisers
GOVERNANCE REPORT
FINANCIAL STATEMENTS
Find our
previous reports at:
www.synthomer.com/
investor-relations
OTHER INFORMATION
Synthomer plc Annual Report 2022 | 1 |
Who we are and what we do
Our year at a glance
We are a world-leading supplier of high-performance,highly specialised chemical products that help customers turn innovative ideas into material reality.
Our differentiated products play vital roles in key sectors such as coatings, construction, adhesives, and health and protection - growing markets that serve billions of consumers worldwide. From our innovation hubs and manufacturing centres in Europe, North America and Asia, we help more than 6,000 customers create new products and enhance existing ones. And with our expert teams focused on sustainable innovation to continue meeting customer and consumer demand for low-emission and low-environmental impact solutions, we are positioned to lead the way as a speciality business whose products enhance people's homes and cities, lifestyles, transportation and healthcare.
We are:We serve:In 2022 we delivered:
c.5,200 | 6,000+ | £2.6bn |
employees at | customers through our | Total Group revenue |
41 | 3 | £265.1m |
production sites in | end-market focused | Total Group EBITDA1 |
24 | divisions | £(26.5)m |
with | ||
countries | 1,530+ ktes | Total Group statutory |
operating loss | ||
of products | 20.6p | |
underlying EPS | ||
50% | ||
of new products with | ||
sustainability benefits |
2 Synthomer plc Annual Report 2022
In 2022 we:
Refreshed our strategy to strengthen our focus on specialist solutions for attractive end markets, and introduced a new market- focused divisional structure from 1 January 2023.
Strategically managed our portfolio, integrating our new adhesive resins business and divesting our non-core laminates, films and coated fabrics businesses.
Took decisive action to strengthen our balance sheet and reduce our leverage, focusing on capital allocation and costs in light of the challenging trading environment.
STRATEGIC REPORT - Who we are and what we do GOVERNANCE REPORT
Read more in our Review | Read more in our CEO's | Read more in our |
of the year on page 27 | review on page 7 | Financial review |
on page 30 |
Held the London Stock Exchange Green Economy Mark, awarded to companies who earn more than 50% of their revenue from products and services that contribute to environmental objectives.
Were upgraded from 'A' to 'AA' in the latest assessment by MSCI, putting us in the top quartile for ESG performance in the Specialty Chemicals sector.
Further developed our Vision 2030 sustainability roadmap and accelerated our decarbonisation plans, including through alignment with science-based targets.
FINANCIAL STATEMENTS
Read more in our Sustainability review on page 39
1EBITDA is calculated as operating profit before depreciation, amortisation and Special Items.
Underlying performance statement
The Group's performance management uses Underlying performance to plan for, control and assess the performance of the Group. Underlying performance differs from the statutory IFRS performance as it excludes the effect of Special Items, which are detailed in note 4 to the financial statements. The Board's view is that Underlying performance provides additional clarity for the Group's investors and stakeholders and so it is the primary focus of the Group's narrative reporting. Where appropriate, IFRS performance inclusive of Special Items is also described. References to 'unit margin' and 'margin' are used in the commentary on Underlying performance.
Unit margin (or margin) is calculated on selling price less variable raw material and logistics costs.
Free Cash Flow is the movement in net debt before financing activities, foreign exchange and the cash impact of Special Items, asset disposals and business combinations.
All statistics shown on page 2 reflect the Total Group during 2022.
Synthomer plc Annual Report 2022 | 3 |
OTHER INFORMATION
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Synthomer plc published this content on 12 April 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 April 2023 16:49:07 UTC.