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Good morning, everyone, and welcome to the Elementus 2024 Full Year Results Webcast. Thank you for taking the time to join us today. Terms of the agenda, I'll start with our highlights and review of our business segment performance. Ralph will then review the group financials And finally, I'll take you through the I'm pleased to report a strong 2024 performance. With revenue and earnings growth across both coatings and personal care businesses. This performance was underpinned by self help actions. We delivered above market revenue growth, in a flat demand environment and we delivered $18,000,000 of annual cost savings above our initial expectation of $12,000,000 and there's still more to come. Our strong profit and cash generation led to a further reduction in net with the year end net debt to EBITDA ratio at one times. The final dividend is up 38% on the prior year. And considering our strong balance sheet, the positive outlook for the business, the Board will evaluate a range of options for additional shareholder returns. The Talc strategic review, which we announced in August, is for We recorded a talc impairment of $126,000,000 for the year. Last, we made good progress in Adjusted operating margin improved to 17.4%.

Average three year operating cash conversion reached 88% and return on capital employed excluding increased to 23%. Excluding the impact of the talc impairment, it improved to 19%. [indiscernible] As always, I'll start with safety because there's nothing more important than ensuring everyone who works for Elementus returns home exactly as they arrived. Our ambition is to become a zero injury business. In 2024, we achieved a 50% reduction in reportable injury While short of our zero injury ambition, we're making good progress here. Furthermore, 90% of our sites remained injury free over the year. We continue to progress important safety initiatives will strengthen our safety culture and improve future performance. As an example, we upgraded our global health and safety management framework aligned with international standards for health and safety at work and published several life critical global standards. We also developed a process safety management network and a dashboard to track high risk equipment management practices. Turning to Slide seven for the headline financial performance. Revenue increased 3% to $738,000,000 benefiting from higher volumes as well as improved price and mix benefits. Adjusted operating profit of $129,000,000 was up 24% on prior year. And we achieved a two eighty basis point improvement in adjusted operating margin compared with 14.6% in the prior year.

Adjusted earnings per share increased 23% to $0.133 Our balance sheet is strong with net debt reduced to $157,000,000 at the end of twenty twenty four. Last, the Board recommended final dividend of $0.029 per share which combined with the interim dividend payment of $0.011 per share adds to a full year dividend of $0.04 per share.

More on the financials later from Ralph. Moving on to our strategic progress. I'm pleased to say that we're moving at pace towards twenty twenty six Capital Markets Day objectives. Here are key highlights of our strategic progress. On innovation, we launched 22 new products including, for example, Bio Based NISATs for industrial coatings. An antiperspirant active utilizing waste aluminum with a lower carbon profile and the same high benefits. We've taken a multiyear approach to launching distinctive products and as a result, our revenues from innovation sales have continued to grow. In 2024, new products accounted for 15% of sales, up from 14% in the prior year. And now 69% of revenues come from natural or naturally derived products. Positioning Element as very well for the future. Our continued focus on innovation has helped us deliver above market revenue of $26,000,000 across our growth platforms. Due to the ongoing strategic review, we now exclude the Tout Growth platform from the overall 2026 growth program. So the original $90,000,000 target is now $75,000,000 Going forward, we will focus on six growth platforms across personal care and coatings. It's worth noting that despite this change, we remain confident in our ability to achieve our target operating profit margin of 19 In 2024, we delivered $60,000,000 of new business.

Well ahead of our target of $50,000,000 Our Personal Care business continued to grow in Asia, up 18%. Benefiting from multiyear investment. Last on efficiency. At our November 2023 Capital Markets Day, we announced our intention to deliver $30,000,000 of cost savings by the end of twenty twenty five. $18,000,000 was achieved in 2024 as savings came through faster than originally anticipated. A key enabler of this delivery is our for the future organizational restructuring. Aimed at both simplifying and streamlining, Elementus for the future. This program is ahead of plan with most of the announced redundancies now completed. In addition, procurement and supply chain cost savings programs are also progressing well. As planned, our APACIS plant in Middle Up production at our Telogia India plant.

Ralph will provide more detail on both programs later. Turning next to sustainability. I'm pleased to share that we've continued to make further progress across our three sustainability focus areas. [indiscernible] which we believe further improves the quality of our business and reduces executional risk. This is best highlighted by the external ESG ratings we've achieved for another year. Starting with the environment, we're making good progress towards our ambition of achieving net zero by 02/1950. In 2024, we developed our science based emission target and submitted it to the science based target initiative for validation. We found out earlier this week that our target was approved and will be published at the March. Further detail will be provided in due course. To underpin our target delivery, we developed detailed ten year decarbonization plans for each of our plants. Those plans identified individual projects that could be executed to partially or fully decarbonize a specific process. In 2024, 77% of our purchased electricity was certified zero carbon. And we hope to increase this further in coming years. On People, our Fit for the Future restructuring program is on track. And we have a new team of over 100 employees in Porto, Portugal.

We've continued to engage proactively with our global workforce and have maintained strong employee engagement throughout what was a very large organizational In addition, I'm pleased to share that our senior leadership gender diversity increased to 42% up from 37% last year. Elementus is now ranked twenty eighth the twenty twenty four FTSE Female Female Leaders Survey, of 163 participating companies. Finally, we took further actions to improve our responsible business practices. In 2024, we implemented a comprehensive supplier due diligence system for all clients and suppliers. Enhancing our compliance practices. We rolled out a new human rights policy statement reinforcing our commitment to ethical business conduct. We also strengthened our fraud prevention processes through enhanced risk evaluation and mitigation strategies. And as I said already, our actions are recognized. We're pleased to achieve the Ecovadis Gold Rating for a fourth consecutive year putting Elementus in the top 5% of chemical companies. A fantastic result given the threshold for achieving this rises every year, Moving on to Slide 10, I want to take a step back. Our innovation growth and efficiency strategy was introduced at our November twenty nineteen Capital Markets Day. So we've been at this a while. The progress we've made has been driven by continued innovation that's resulted in advantaged new products and new business.

Most of which has supported progress against our growth platforms. We are seeing year on year progress in our innovation sales contribution, increasing to over 15% in 2024. With around 60% of the innovation sales coming from our growth platforms. We also delivered $60,000,000 of new business. Of which over 70% came from growth platform products. So the strategy is working. And as you can see on the next slide, the progress we've made gives us confidence we're on track to deliver our 2026 financial targets. First, our operating profit margin continues [indiscernible] In 2024, it reached 17.4%. Putting us materially closer to our 2026 target of 19% plus. [indiscernible] Second, operating cash conversion of over 90%. The three year average operating cash conversion at the end of twenty twenty four was 88%, and the annual performance was 104%. Finally, we set out to improve return on capital employed to over 20%. This year, we achieved a ROACE of over 23%. Excluding the top impairment, the ROCE was 19%. So overall, we made good progress. But there's more to do. Now let's look at the performance of our business by segment. Starting with Personal Care on Slide 13, which now contributes around 30% of group revenue and 42% of group adjusted operating profit.

Personal care revenue increased 4% in 2024, benefiting from $18,000,000 of higher value business and higher volumes. We achieved record adjusted operating driven by improved volume and self help actions. These factors in combination with the innovative new products led us to significant margin gains in the year. Operating profit margin was 28.3%, up four twenty basis points versus prior year. Turning to Slide 14, the graphs on the left show operating profit and margin progress since 2020. Over this period, we launched 33 new products, delivered $70,000,000 of new business, and our operating margin increased from 21% to 28%. And we are confident there's more to come. [indiscernible] In relation to 2024 performance, 17% of personal care revenues were from innovative products.

We launched nine new products with two of those expanding our technology toolkit and seven highly customized products based on individual customer specification. New business pipeline continues to increase year on year. And stood at a record $89,000,000 at the end of twenty twenty four. Finally, this year's record operating profit reflects our much improved product portfolio and the positive impact of our self help initiatives. These include route to market changes in Europe and Asia, cost efficiencies, including the Fit for the Future restructuring benefits and the closure of one AP Active's U. S. Plant.

The next slide, you can see the progress we're making on our growth platforms. At our November 2023 Capital Markets Day, we announced an ambition to deliver above market growth over the next three years to 2026. The personal care growth platforms are expected to deliver around a third of the $70,000,000 target.

With $6,000,000 delivered in the first year. Let me remind you what the individual platforms objectives are before I cover the progress in 2024. Starting with Color Cosmetics, where our target is $10,000,000 of above market growth by 2026. We're seeing good progress here. In this market segment, demand is driven by trends such as skinification, for example, makeup is fortified with additional ingredients to enhance skin health, or individualization where beauty products are offered, offering personalized or customized products tailored to specific consumer needs. Given our expertise in both rheology and formulation solutions, we're well positioned to address these trends. In addition, we that's complementary to our current Hecterite offering. Secondly, skincare. Where we target growth at two to three times the market. Supported by the substitution of synthetic rheology controlled ingredients with our natural hectorite technology. We see significant growth potential in water based skin and sun care products as well as film formation, which works alongside the benefits of Hectorite, in sun care applications. And this is an $80,000,000 opportunity. Additionally, we continue to invest in existing product development of our Hecterite series beyond their functional properties For example, as a natural co emulsifier. Finally, AP actives where we target mid single digit revenue growth and margin expansion.

We will achieve this with the development of high efficacy antiperspirant actives. Further benefiting from the increased production at our new India plant.

We're also entering an $80,000,000 deodorant active segment with the launch of a non aluminum sweat reducing deodorant next month. [indiscernible] I'll cover the progress we've made 2024. First, Color Cosmetics on Slide 16. Where revenue increased 7% compared to 4% for the broader market. We saw growth areas across all regions, especially in Asia, benefiting from enhanced sales and marketing capabilities. Revenue in China was up 30% driven by new and existing relationships, with local customers. Furthermore, the improved capabilities in this region allowed us to and we now serve more of our Chinese customers on a direct basis.

In 2024, we launched two customized products targeting emerging markets. We continue to see good momentum across our global key accounts. Leveraging our expertise in rheology and formulation solutions combined with growing demand for hectorite as a key ingredient. Growth over the coming years is underpinned by innovative products, including a range of patent pending Bentone Ultimate products. With higher natural content and increased versatility for formulators as well as further growth across key Asia regions. On skincare, we made strong progress in [indiscernible] With revenue up 17% compared to 4% for the broader market. Our strong growth is driven by Europe, where revenues were up more than 50% as well as Asia. Benefiting from growth in key global accounts, innovation products and route to market changes. We're seeing good momentum from recent new product launches With a focus towards natural rheology products, with additional functionalities. One of those is Bentone HydroClaid 2,101, a product customized for leading European sun care manufacturer. We saw their new sun care lotion hit the shelves this January. And this product is using Hectorite as a rheology modifier and the customer also reported improved sensory benefit. In 2024, we also launched Ventone Hydralux three sixty, an all in one hectarite based solution which provides outstanding sensory and texture benefits enabling formulators to create products with a variety of textures from light fluid serum and soft creams to rich velvet textured creams.

In 2025, we plan to launch a new water Moving on antiperspirants on Slide 18. A segment where we have a leading global position. Revenue grew 2% compared to a flat market. The above market revenue growth was driven by increased demand for our high efficacy [indiscernible] Which now make up 44% of antiperspirant sales. A big enabler of this growth has been our new Telosia plant, which is now scaled up and producing a high quantity of products of consistent quality. As a result, we saw growth across global key accounts in Europe and Americas, as well as success with fast growing indie brands. Which will increasingly become an important contributor to overall any person revenue. [indiscernible] We launched four new high efficacy products, including a lower carbon antiperspirant active. This product utilizes upcycled aluminum waste to partially replace virgin Elementis feedstock. Leading to lower carbon footprint for both us and our customers.

In April 2025, at in Cosmetics trade show in Amsterdam, we will launch a long awaited non aluminum based deodorant active that can provide significant sweat reduction benefits. Turning to Performance Specialties, which is comprised of our Coatings and TALQ businesses. Overall, the segment delivered a much improved performance with revenue up 3% to $521,000,000 driven by coatings. We delivered $43,000,000 of new business which supported the growth in operating profit. Now at $86,000,000 Adjusted operating margin improved to 16.6% Taking a closer look at the coatings business on Slide 20, Overall revenue increased 5% to $386,000,000 with revenue growth supported by all three growth platforms. Performance in the year reflected more normalized Adjusted operating profit increased 41% to 78,000,000 driven by higher volumes improved pricemix, and cost efficiencies. The combination of a higher quality product portfolio, and self help actions led to a significant improvement in adjusted operating margin to 20.3% up from 15.3% last year. A record margin for coatings was achieved in a flat demand environment. Which demonstrates the quality and the resilience of this business. Chart on Slide 21 highlights the multiyear progress we made improving our coatings business. Adjusted operating profit increased from $41,000,000 in 2020 to a record $78,000,000 in 2024.

And what is more noteworthy is the improvement in our operating margin from 13% to 20% over that period. This reflects the higher quality of our product portfolio. Earning higher margins and a lower cost base. Innovation has been a key contributor to this growth. Over the five years, launched 31 new products, and delivered $126,000,000 in new business. In 2024, we launched 12 new higher margin products of which six were across our three growth platforms. And I'll cover some of those shortly. The other six are targeting new adjacencies. New CharGuard bioretartant synergists designed to enhance anti drip and char formation properties of nonhalogenated fire retardants. Potentially replacing certain types of PFAS or other so called forever chemicals. Traditionally used in this application. In total, we delivered $36,000,000 of new business which is supporting the improvement in profit alongside other self help actions. Slide 22 shows the improvement in sales across the decorative and industrial sectors. Driven by more normalized volumes, post destocking. Saw particularly good growth across industrial coatings, despite overall weak market demand. Regional growth has been mixed. In The Americas and Europe, where our business is split relatively evenly between decorative and industrial activity revenue increased 87% respectively.

Asia revenue was flat compared with the prior year driven by China where sales were weaker in the second half.

China represents over 50% of our revenues in Asia. Indonesia, Malaysia as well as India. And finally, revenue across our global key accounts reduced 2%. With some of our large customers facing challenging demand conditions. Now let's move on to the three coatings growth platform. The total $75,000,000 revenue target by 2026. In the first year, we delivered $20,000,000 of above market revenue growth with good progress across each platform. Let's again look at the individual platforms objectives before I cover progress in 2024. First, in Architectural Coatings, we expect to grow at twice the market through 2026. We see strong demand for sustainable, safer, and high performance paints we're launching these new products that meet these requirements. In addition, have a big opportunity to tap into the growing demand for high end paints in Asia. Which is an attractive $300,000,000 ingredients market. Capture this opportunity, we expanded our manufacturing footprint [indiscernible] Increasing our NISAT production capacity. More on this shortly. Our second growth platform is industrial coatings. Where we see growth opportunities that will enable us to add $30,000,000 of incremental revenue by 2026. We'll leverage our Rhealgy leadership to grow our market share industrial dispersants and defomers. Is currently a $1,000,000,000 global market.

In addition, we're establishing a clear strategy for the powder coatings industry. Leveraging our Hecterite and Fixitrol base portfolio into this $200,000,000 market.

The third growth platform is adhesives, sealants and construction additives. A relatively new market for Elementus. We're looking to double our market share by 2026. To do this, we've been focusing on building our global distribution network. And are now ready to drive momentum in this attractive market segment. One of the key areas where we see rapid growth is in tile mortars. Where we're replacing with hectarite based products significantly improving product efficiency. [indiscernible] me now cover the progress we've made 2024.

Starting with our Architectural Coatings, where our revenue increased 3% We the global market was flat, We saw strong growth in Asia, driven by improved localized production capability as well as innovative customized formulation solutions and strong demand for our natural hectorite based products. I mentioned earlier expanded capacity in China.

We completed in the first half.

It's increased our 3,000 metric tons. Were able to target $30,000,000 of new local demand. Going forward, we expect the new facility to bring enhanced performance environmentally friendly benefits to the Chinese architectural sector. In 2024, we launched four new products, including two Realite Bio based NICEATs. Are based on a waste stream of sugarcane molasses, and hence provide additional sustainability benefits without compromising We're confident that our innovative products alongside our manufacturing footprint across three key regions will support our ambition to grow at twice the market by 2026. In 2024, our industrial coatings revenues increased 9% versus a flat global market. Our revenues were higher across all regions, driven by increasing demand for our hectic based solutions. Our revenue from hectarite based solutions continued to grow and has increased over 30% in 2024. This is driven by strong demand for marine and protective coatings with the right rheology is required for those highly technical paints and also as a PFAS replacement in powder coatings. We also launched two new products in 2024, supporting the transition from solvent to water based trend. Those include, for example, Supred 3,410, which is a low foaming silicone substrate wetting agent. Highly effective on wood applications.

Using water based products on wood is more challenging. And our products can really help here. Another example is NeuroSpurse FX-7600W. A new wedding and dispersing agent designed for waterborne auto OEM highly effective for darker pigments distribution. We were pleased to have been awarded the twenty twenty four Asia Coatings Technology Pie MT-two 550 ks matting agent. [indiscernible] This demonstrates our products are getting increasingly recognized across our target markets. HiPalmer is used in Asian electric vehicles. Providing the right visual effect and we see it being adopted by major electric car manufacturers. [indiscernible] Over the next twelve months, we'll launch a new rheology modifier for the automotive sector. Delivering improved lower temperature stability and will also complete our testing phase to refine our market expansion strategy for the fast growing powder coating industry. [indiscernible] Finally, Adhesive Sealants and Construction Additives, in 2024, we saw revenue growing 15% versus global markets only marginally up. Our recent growth has been supported by our established TYXITROL range, as well as the continued success of our hectarite based additives. Revenue from our Txitrol AS 8,053 increased over 40% in 2024. We worked hard to demonstrate the lower energy required when using our product and also replacing the undesired fumed silica across these applications.

As you can see, our efforts are increasingly resonating with customers. I already mentioned our hectarite based tile mortars, which grew over 25% this year. With new products in the pipeline for 2025. Relatively new for us, but we see exciting new opportunities for incremental growth. [indiscernible] We now have dedicated global sales and technical teams in place ready to drive momentum and accelerate penetration. Innovation is crucial here We're looking to launch a new product for the clear sealant market and also exploring hectorite pace for adhesives. Moving on to talc on Slide 27. Which faced a challenging year. Revenue and profit were lower reflecting a nationwide strike in Finland in the first half. Which closed all ports and railways in the country for a month. Addition, we saw continued weak demand across our key markets. [indiscernible] Overall, revenue reduced 2% to $135,000,000 compared to the prior year. The overall impact of the Finnish strike on talc operating profit was around $3,000,000 due to lost sales and higher costs. As a result, the adjusted operating profit reduced to $8,000,000 and adjusted operating margin declined to 5.9%. In August, we announced a strategic review of the top business. Which is progressing amid the ongoing regulatory uncertainty.

We hope to have more to say soon.

You'll be aware that in September of twenty twenty four, we European Risk Assessment Committee recommended that talc be classified as carcinogenic. Do not believe the scientific evidence supports this classification the Industry Trade Association to communicate this view to lawmakers. [indiscernible] final decision by the European Commission is expected in the second half of twenty twenty six.

With implementation currently expected in the third quarter of twenty twenty eight, at the earliest.

However, have seen continued weak demand across our European market. [indiscernible] represents over 80% of our top business. We focus on higher margin applications which requires talc of high and consistent quality. Those include, for example, long life plastics, [indiscernible] coated paper, technical ceramics, The European automotive sector, which remains a key end market, saw a 5% reduction in light vehicle production in 2024.

Despite this, we maintained stable volumes in the auto plastic segment. Where we continue to focus on gaining market share. In 2024, we launched another product in our Fin [indiscernible] popular for its highly lamellar ore. In paints and coatings, we're seeing continued weak demand we remain focused on gaining profitable market share. As I outlined earlier, the Paper segment was negatively impacted by the strike, However, we did see double digit growth in Barrier Coatings. Which is an area of focus.

We Volumes in Technical Ceramics were broadly stable. We gained good traction with new customers this year. And continue to expand our customer base through tailored product developments and high quality service. Now let me hand over to Ralph to cover the financials.

Thanks, Paul, and good morning, everyone.

Let me start with group revenue, which increased by 3% on reported and constant currency basis to $738,000,000 As you can see, growth was driven by both improved volumes and pricemix benefits. Overall volumes added $9,000,000 in demand conditions that were broadly flat. It was encouraging to see higher volumes in both coatings and personal care, $9,000,000 and $5,000,000 respectively. These were offset part $5,000,000 volume reduction in talc. Price and mix benefit contributed $15,000,000 in the year with the majority of this coming from improved mix. This is a reflection of innovation driven momentum focused on our growth Moving on to group adjusted operating profit, increased by 24% on both a reported and constant currency basis $129,000,000 The increase in the year was driven by a balance of both top line and efficiency, our strategy in action. The $25,000,000 revenue growth dropped through to the P and L with our pricing absorbing the impact of inflation. Our $80,000,000 cost savings are tracking ahead of expectations and we're critical to the delivery I will cover the composition shortly. So with this 3% revenue growth and 24% operating profit [indiscernible] Our operating margins expanded significantly from 14.6% to 17.4% percent -plus target for 2026 will be hit. [indiscernible] I wanted to share this slide with you to provide some color on our variable cost.

Given the ongoing tariff developments. Around two thirds of our costs are variable and the largest component is the raw material spend. As you can see, the largest components are hydrocarbon derivatives metals including aluminium and salts and quaternary amines We expect overall raw material and logistics inflation to be low single digit in 2025. Regarding tariffs, whilst it's fast changing our current view is the direct impact will not be material. Of course, secondary demand and inflationary impacts remain to be seen. We've got two reasons to consider the direct impact modest. First, we're well hedged with having a multisite footprint So for example, the large majority of what we make in The USA is used by our customers in The USA. Majority of what we make in China is used by our customers in China. As you would expect, we will look to alternative sourcing arrangements to limit the impact. Second, as in the past, we would typically adjust prices to our customers either as an increase or a surcharge in the event of a tariff impact on our costs. We have a number of contingent contractual arrangements that specifically afford us protection in the event of tariff impacts.

Turning to cash flow on Slide 33, Elementus is a highly cash generative business The increase in operating cash flow largely reflects higher EBITDA in 2024. We also delivered a working capital in for $4,000,000 despite higher sales. Dollars 38,000,000 of capital expenditure was in line with 2023 and going forward, we expect CapEx to be around $40,000,000 per year. Our strong free cash flow of $56,000,000 is after the cash impact of $33,000,000 of adjusting items, which we would not expect to be of the same extent in 2025. Largest components of these cash adjusting items were $18,000,000 related to our Fit for the Future restructuring costs as people exited the organization dollars 4,000,000 principally related to Eagle's Cliff spend and $3,000,000 related to the ongoing talc strategic review dividends were reinstated in 2023 and we paid out $19,000,000 for dividend payments in 2024 Net debt was $45,000,000 lower at $157,000,000 with a significant improved net debt to EBITDA ratio of 1.0x compared to 1.4 times in 2023. As you can see on Slide 34, the debt has been steadily reducing since 2021 from $4.00 $1,000,000 to $157,000,000 at the end of twenty twenty four. The net debt to EBITDA ratio has reduced from 2.6 times to 1.0x over that period.

Also completed the refinancing of our revolving credit facility in the first half of the year, which reducing it by $125,000,000 to $250,000,000 and our total debt facility now stands at around $475,000,000 Based on the strong cash generative business we have, we expect further deleveraging in the coming years driven by earnings growth and CapEx discipline. Now let me remind you of our capital allocation priorities. We will continue to spend around $40,000,000 CapEx annually broadly in line with the depreciation. CapEx priorities over the coming year on safe and reliable operations and then on high payback growth and productivity projects. [indiscernible] do not need to increase our CapEx to deliver our Capital Markets Day growth objectives. In line with our dividend policy, which aims to pay of around 30% of adjusted earnings Board has recommended a final dividend of $0.029 per share up 38% from last year, including the interim dividend of $0.011 this equates to a full year dividend of $0.04 per share. As Paul already mentioned, given our strong cash generation and the positive near term prospects for the business, the Board will evaluate a range of options to deliver additional returns to shareholders. Further details will be provided in due course.

Moving on to our efficiency programs, you will recall that at our November twenty three Capital Markets Day, we announced $30,000,000 of cost savings over two years.

Initially expecting to deliver $12,000,000 of cost savings in 2024, and $80,000,000 of cost savings in 2025. Pleased to share that following successful acceleration of our programs, we've already delivered $80,000,000 of cost savings in 2024. This gives us the confidence that we will achieve the balance of $12,000,000 of cost savings with most of the actions to deliver this already taken. Around 60% of the overall cost savings relate to the Fit for the Future restructuring program and the remainder coming from supply chain and procurement efficiencies. First, the fit for the future organizational restructuring. This program is firmly on track and is creating a simpler, streamlined Elementus with the right capabilities to successfully implement our strategy. In 2024, we delivered $10,000,000 of annual savings We simplified our organization with the removal of 190 roles and set up a new center in Porto where we filled over 100 roles in including a significant R and D presence. In 2024, the shift of transactional finance roles to India was [indiscernible] Our outsourcing partner EXL now has a team of just under 30 people dedicated to Elementis in Kochi.

In 2025, we expect to deliver the balance of the €8,000,000 annual savings as the full year effect of the changes pay off. Moving on to the second part of the efficiency programs, where we are leveraging improved capabilities across our global supply chain and procurement, and targeting $12,000,000 in annual savings by 2025. Of this amount, dollars 8,000,000 was delivered in 2024 and a further $4,000,000 will be delivered in 2025. In March, we announced a closure of one of our antiperspirantactus plants in U. S. From three to two, The Middletown plant closure in June was enabled by the successful ramp up of production at our Toloja plant in India. It underpins a large part of the targeted cost savings. Would help to enhance our Personal Care margins. Also completed process debottlenecking Kaizen's at several key manufacturing [indiscernible] improved our supply and demand management processes. Across procurement, we focused on improving our supply resilience, reducing the number of raw materials that are single sourced.

And adding over 90 new vendors diversify our supply coverage. In 2025, we expect additional efficiencies in supply chain further manufacturing optimization, supply chain digitalization and through new integrated planning and execution processes. In relation to procurement, we are improving cost through our new digital vendor management system. Expect a meaningful cost reduction in 2025 having renegotiated our top raw material contract and made further reductions in single Taken together, these two efficiency programs are a critical driver of our 19% -plus operating margin target. And of course, we continue to look for new sources of efficiency, and we look forward to having more to say about this the future. Finally, let me cover progress on return on capital employed. As a reminder, November 2023 capital [indiscernible] on a pre goodwill basis. In 2023, our ROCE excluding goodwill stood at just over 15 largely through profit improvements, which we've improved our ROCE to 19%. The TAC impairment reduced our capital employed base, which increased the full year ROCE to 23%. Over the course of 2526%, we continue to expect the main driver of ROCE improvement to be earnings growth. I will now hand back to Paul to cover the outlook.

Thank you, Ralph.

Turning to the 2025 outlook. We've seen a solid start to the year. That said, see no evidence of any fundamental improvement in the demand environment. Nor do we plan for it. Our performance in 2025 will be underpinned by self help initiatives. Notably continued progress against our growth platforms. Are supported by a strong new business pipeline and at least 15 new product launches. In addition, we on the efficiency side, we expect to deliver the remaining $12,000,000 of cost savings As we complete the organizational restructuring, continue driving procurement and supply chain efficiency. This gives me confidence our 2026 capital markets targets will be achieved. Finally, I want to say it's been a privilege to lead Elementus for the past nine years. I'm proud of the transformation of this business which is the result of the hard work and dedication of the entire Elementus team. I'm pleased to be leaving a more focused, higher quality and financially strengthened business. The future for Elementus is bright. Ralph and I are happy now to take your questions. Thank you.

Our first question is from Andreas Castanos from Berenberg. Your line is now open. Please go ahead. Hello. Andres Castanjos here sitting in from on behalf of Sebastian Bray.

You have discussed in detail how you did better than the market in 2024. But how is Personal Care faring in light of some companies still out there flagging headwinds in early twenty twenty five? And also, in coatings, could you please talk about the 13 outlook for Coatings in the corrective and Industrial both? And how China is driving that for 2025?

Sure. On personal care, I think that the categories are a bit healthier frankly, in terms of the demand. I think inventories are in a reasonable place. I think though for Elementus' performance, I mean, it's kind of as I said on the the presentation, it's a function of higher value new products penetrating our growth platforms, and kind of becoming more valuable to our customers. While simultaneously, I think making some investments and frankly, we have been making over quite a long period, in Asia that give us the opportunity to continue to ratably ratably grow. So a combination of the self help, new products, and I think more capability on the ground in some really important places has underpinned personal care. And I think it will continue to actually. I think there's good runway for further organic growth Coatings, Coatings is, I think, a little more trickier. From a demand perspective, we've taken the view over the last four or five years that life will be hard and we just have to adapt. So if you take, for example, in The United Or Americas, housing is in the worst state that it's been in in thirty years. And you can kind of see that in architectural I think industrial is a bit better benefiting from the Inflation Reduction Act, benefiting from a pretty healthy energy backdrop.

But still, obviously, still quite a fight. And we don't expect that it's going to be significantly different going forward. Europe is been sick for a while.

And understand there's some talk about stimulus, but again, in the near term, we don't really see a big change on demand. And our results really been about new business and self help in that region. Asia's interesting in that, obviously, China is not terribly interested in stimulating We do an awful lot of industrial business in China. And it's just kind of not happening. There very well. But the other side, I think, is Southeast Asia, India, I think the emergence of of architectural, where we're pretty well positioned to gain market share and we're kind of seeing that. So that makes us, I think, kind of kind of cautiously optimistic. But again, I would just step back and say to you that demand is the big it's the 900 pound gorilla in Elementis performance, but the reality is it's all the self help and the things that we're doing to make the business more valuable, more cost efficient, more important to customers, that's what's underpinned our improved performance in 2024, and it will underpin it in 2025 and 2026 such that we achieved the CMD objectives. Thank you.

That's great. Thank you. Can I follow-up with one for Ralph, a quick one? What is the new level of depreciation and amortization following the talking part? Thank you. Yes. The level of depreciation is pretty similar to our CapEx, around sort of $40,000,000 a year. So no major [indiscernible] Thank you.

Thank you. Our next question is from Chetan Udeshu from JPMorgan. Your line is now open. Please go ahead.

Yes. Hi. Thanks for taking my question. Maybe just first on tariff. If I'm not mistaken, when Trump President Trump introduced tariff for the first time, you did get a impacted directly from sourcing some of your raw materials in China? I think it was mainly for the AP Actives business. Is that something that has been now resolved with the new Indian plant? Or do you still have that exposure to importing certain raw materials from China? And how will that sort of play out in terms of your numbers? The other question I had was on Personal Care, I think the category as a whole, especially the color cosmetic, when we look at some of the sell through data from Nielsen or some of the other updates from the large OEMs. Is this does suggest that especially in The U. S. Things are pretty tough for the whole beauty and color cosmetic market, but it seems you are not seeing that in your numbers. Is that mainly because of the business wins that you're talking about? And the last question I have for Ralf is just in terms of the key numbers to think about in terms of moving parts for 2025 versus 2024?

You've talked about €12,000,000 of gross gross cost savings. Remind me and remind us, sorry, of of how much is your fixed cost inflation and also also how much incremental business wins do you expect actually in 2025? And how will that sort of drop through on your earnings? Thank you very much.

Thanks, Jean. I'll take the first two.

In terms of the impact of tariffs, you're right. This isn't our first time managing this. This is Trump part two. And we do have some ingredients that are affected. That's for certain. And I think you were thinking about zirconium that gets pulled out of China. However, what I would tell you is that the aggregate impact of these tariffs is actually quite small. And our ability to Change prices instantaneously, frankly, to deal with the tariffs. Is really, really high. I'd also say that in the main, Elementis is actually quite regionally regionally spread. And so 60%, 70% of our products made in China stay in China. 90% plus of our products made in The United States stay in The United States.

So I think we're a lot less exposed. But the big thing is to be on top of it in great detail and react as fast as possible, and that's exactly what, what we will do. In terms of the PC category in The USA, I mean, I think I can say even more broadly, our progress is driven by the new business wins the delivery of our growth platforms, We did 18,000,000 new business last year. Some of the new products that we've been launching over the last three or four years really taking hold and therefore, our share of customers' requirements continues to to go up. Also, I think skincare is a bright spot and it's it's been a nice bright grower for the last four or five years. So that has helped us in a big way, even though, as you say, the performance in The United States for the category isn't isn't as strong as we might like right now. Ralph, there's one for you.

Yes. I think you're asking around 24 into '25 and how we're thinking about it, Chetan. So I mean starting off the fixed cost savings, we've flagged we're not fixed cost in the firm, fit for the future savings we flagged 8,000,000 and supply chain savings 4,000,000 under our cost saving program. So that's $12,000,000 of savings In terms of revenue growth, look, we did GBP26 million above market revenue growth in 2024 We need to make that sort of similar level of progress a little bit better. In $25,000,000 to achieve the $75,000,000 in total by 2026.

With a normal level of drop through there. So that's the second moving part. Think then the couple of other things, our level of Fixed cost inflation is sort of high single digit. So sort of $8,000,000 $9,000,000 a year And then on top of that, we see low single digit raw material stroke logistics inflation in the year. We put a chart in in the pack there. Those costs are roughly speaking about a third of our turnover So that will be an impact as well. So those are the main moving parts. But overall, we are expecting to make important progress. Our operating margins stood at 17.4% in 2024, up from 14.6% and we know we're looking to get to 19% plus by 2026. So Those moving parts all take us a good way of the way there from 17.419% plus in '26.

That's clear. Can I check the drop through that we should be using on those incremental sales Should it be more like €45,000,000 €50,000,000 Because I guess the mix will also be better with the new products? In terms of gross margin?

You're right. The mix is the drop through effect is a little bit better because the mix quality is better, but that's about the right sort of level you're talking about.

Okay. That's very clear. Thank you.

Thank you. Our next question comes from Kevin Fogarty from Deutsche Great. Thanks very much for the presentation guys and thanks for the opportunity to ask questions. If I could kick off with two One, in terms of the capital allocation, you pointed to this morning, Could you just sort of outline what range of options here are being considered Is there anything kind of off the table, I guess, for investors? And And what should people think about in terms of timing or what needs to happen for you to consider those range of sort of capital allocation options? I. E. Does leverage need to sort of come down lower for longer or just a bit of color on that would be quite useful. And then just secondly, there's lots in the presentation on innovation. And in particular areas like NICEAD facility in China Just is there any way of kind of framing how that innovation sees you now kind of standing against some of the competitors? What does it do for your competitive positioning there and how does that change that?

Okay. I'll start on the capital allocation and get some Ralf's thoughts. I mean, obviously, as the balance sheet strengthens, and our performance continues to improve, it creates headroom for shareholder returns.

I do think it's just a question of timing. When that judgment gets made. And Kevin, I'd say it's the usual suspects. I mean, the buybacks have certainly become something that is much more alluring to UK shareholders than ten years ago.

And there's also opportunity for specials. But the whole idea, obviously, is to continue to really drive the real high capital returns, the free cash flow as performance continues to improve, and that'll create that'll create headway for us. Ralph, anything you want to add in particular? Yeah.

I mean, down at one times net debt to EBITDA. The net cash flow was $45,000,000 in 2024. And that cash generation will enable further deleveraging in 2025. We've set the ordinary dividend, we think at a prudent level of sort of 30% payout. Right now, we don't have a formal target on gearing. The focus has been very much on achieving deleveraging And of course, we'll see where the talc strategic review takes us. And the Board's obviously going to consider at the time it takes decisions on additional returns, fact factors like the share price, market conditions, interest costs, and of course the talk strategic review progress.

So there's a number of sort of moving parts to consider, but think the key point is, and I haven't got to a balance sheet where we're at one, we with further net cash flow coming through in 2025, we're in a really good shape to consider these options very proactively.

Yes, Kevin, to your question on innovation, kind of the value of it, I think what I would say is if you kind of step back, the Elementis this portfolio being much stronger, I. E. Almost 70% of it is is natural or naturally derived products.

You look at the new product strategy, and we've said for a number of years you know, we want we want to come out with with things that are, you know, superior and performing improve environmental profile, reduce our customers' operational costs. And as the portfolio gets more and more valuable, because customers are willing to pay more, for these products It also strengthens our pricing power.

You can't be a top tier specialty chemicals company unless you're doing stuff that's special. Right? So that's kind of where we focus. And the trends, I mean, as we sort of look across portfolio of what we're doing, I mean, this whole synthetics to natural in skincare and cosmetics, very powerful trend. Transitioning from solvent to water based and industrial, we've been working on that with products for quite a long time. Interestingly, some of our newest [indiscernible] are about eliminating PFAS or forever chemicals And we see some really interesting opportunities in fiber cardants, as I talked about. And then just kind of getting rid of the hard to handle or unsafe stuff. So the adhesives and sealants products that we're coming out with that replace fumed silica, the upcycled aluminum in in AP Active. So I just think this is this is a runway that has a lot of length actually and we're going to keep keep running at it. And I think it's going to be a big driver, frankly, of how these margins continue to move past 19% plus and remain there. Actually. So I mean, I think that's kind of how how we think about Element S. And their organic growth is the most capital efficient growth that there is.

So it's it's great that we're in a position to take advantage. Leverage our assets to achieve that. So I don't know if it's a a little more color. I hope it's helpful.

Yes.

No, that's useful. Thanks very much.

Thank you. We currently have no further questions. So I will hand back to Paul for closing remarks. Okay.

I think what I would say is thank you to all of you for your support over the last nine years.

It went quick. And I'd like to take the opportunity to thank Ralph Hewens.

I couldn't have had a better CFO and a better partner running Element Elementis Ralph. So I'm actually certain he's going to make sure the new CEO gets off to a fast start. So thanks for your time today. Speak soon. Bye bye.