Full Year 2023 Accsys Technologies PLC Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Martijn P. den Drijver - ODDO BHF Corporate & Markets, Research Division - Analyst : My first question is with regards to TricoyaU.K. When you've had 6 months of discussions, you see long-term potential, attractive margins or even financing preconstruction. So can you shed a bit of light on what is the key hurdle? Is that valuation? Is that shareholder agreement details? Is it that your strategic partners still see some uncertain economics that would be part 1. And part B would be, as I said, you've had 6 months. What time are you going to take to complete this process? Is it going to be another 3 months? Is it going to be another 6 months? Just a bit of light on the timing of this process. That's question one, please.

Question: Martijn P. den Drijver - ODDO BHF Corporate & Markets, Research Division - Analyst : Did I understand you correctly that you -- okay. So even if developments move your way, you might even decide to finance it and fund it completely. That's what you said last?

Question: Martijn P. den Drijver - ODDO BHF Corporate & Markets, Research Division - Analyst : Okay. And just going back, obviously, funding was the key elements that needs to be resolved. But in your discussions with the strategic partners, what is the key hurdle? Is that the valuation of the plants? Is it that you're still in discussions, not so much on the valuation, but what happens if things turn out a little bit different from the planned scenario? Are these strategic partners understanding of your belief that there is an interesting economic proposal. Just to get not so much funding is, of course, the key here, but what are these strategic partners saying to you why you couldn't reach an agreement?

Question: Martijn P. den Drijver - ODDO BHF Corporate & Markets, Research Division - Analyst : Then I'll move on to my second question. Could you provide a bit of guidance. Obviously, no sales or EBITDA numbers, but perhaps something on production or whether that 34% gross margin is sustainable? Could you provide a bit of color on 2024, bit of guidance there?

Question: Martijn P. den Drijver - ODDO BHF Corporate & Markets, Research Division - Analyst : Okay. So it does it make any sense to ask your question about the incremental OpEx, the staff additions, the marketing investments, anything you could help us with to understand what the impact might be of those elements in terms of OpEx.

Question: Martijn P. den Drijver - ODDO BHF Corporate & Markets, Research Division - Analyst : Yes, in your press release, you've outlined that you've been adding staff, group operations and engineering director, a center of engineering projects. Obviously, there's a tailwind effect of that in 2024. You've announced a marketing program in the U.K. You will invest more in marketing in the U.S. So is there something you can help us with regards to OpEx, incremental OpEx in 2024?

Question: Martijn P. den Drijver - ODDO BHF Corporate & Markets, Research Division - Analyst : Okay. And hopefully, one that you can answer. Accoya Color, to what kind of capacity is the plants after these modifications? Where can you go in terms of production capacity?

Question: Martijn P. den Drijver - ODDO BHF Corporate & Markets, Research Division - Analyst : Okay. And then my final one, the cost overruns Accoya USA. Is there anything you could help us with in terms of ballpark, in range perhaps so we can get a better understanding of what the cost of run means?

Question: Christen David Hjorth - Numis Securities Limited, Research Division - Analyst : 3 questions from me, if that's okay. So the first one, just following on, on the question on Hull and the ability to use potentially internal resources in time. I imagine that's not necessarily the first choice as we stand here today. But if that is the route that has to be taken, how should we think about that in terms of timing and capacity to increase leverage, et cetera. The second one is just on the U.S. Accoya plant. A modest delay and as you say, not driven by project specific dynamics of a general theme across the U.S. But how does the Board consider the risk of future delays from here? And are there any particular pinch points or milestones, which we should be aware of? And then finally, I know H2 was very strong at Arnhem in terms of production. But you wouldn't even need to generate the same level of production volume in FY '24 to be at full capacity utilization. So what is the reason that Arnhem can't or is there a reason that Arnhem can't run at full capacity utilization in FY '24 rather than sort of ramping up over the 2 years that you've guided? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 27, 2023 / 9:00AM, ACCS.L - Full Year 2023 Accsys Technologies PLC Earnings Call

Question: Benjamin Charles Bourne - Investec Bank plc, Research Division - Analyst : Just a couple of questions. I'm intrigued by Tricoya now at 24%. Can you just expand on the use cases so far to give us a flavor for the longer term? And then the second question relates to Accoya U.S. sales expansion. Which regions are you most excited about and why, please?

Question: Benjamin Charles Bourne - Investec Bank plc, Research Division - Analyst : Sure,. The first one is, can you expand on the Tricoya use cases so far, just to give us a flavor for the longer term? And the second question is relating to Accoya U.S. sales expansion, which regions are you most excited by and why? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 27, 2023 / 9:00AM, ACCS.L - Full Year 2023 Accsys Technologies PLC Earnings Call