Holland Colours Nv · EURONEXT:HOLCO
Holland Colours Nv — Shareholder Meeting (July 2021)
44 slides from Holland Colours Nv's shareholder meeting presentation, Jul 15, 2021
Slide 1: Annual General Meeting of Shareholders
ANNUAL GENERAL MEETING OF SHAREHOLDERS July 15, 2021 COLORING YOUR SUCCESS 11
Slide 2: Our Mission
OUR MISSION To be our customers’ co-designer of color and functional To be solutions recognized as a contributor to the development of a sustainable industry 22
Slide 3: Agenda (1-6)
AGENDA (1-6) 1. Opening 2. Report of the Board of Management on the Financial Year 2020/2021 3. Financial Statements FY 2020/2021 a. Advisory vote regarding the Remuneration Report Financial Year 2020/2021 (advisory vote) b. Adoption of the Financial Statements 2020/2021 (voting item) 4. Reserves an
Slide 4: Agenda (7-12)
AGENDA (7-12) 7. Discharge to the Supervisory Board (voting item) 8. Composition of the Supervisory Board Re-appointment of Mr. J. Klaus as member of the Supervisory Board (voting item) 9. Update strategy Holland Colours Group 10. Authorization to the Board of Management, subject to the approval of
Slide 5: Opening
1. OPENING COLORING YOUR SUCCESS 55
Slide 6: Report of the Board of Management on the Financial Year 2020/2021
2. REPORT OF THE BOARD OF MANAGEMENT ON THE FINANCIAL YEAR 2020/2021 COLORING YOUR SUCCESS 66
Slide 7: COVID-19, Continuation of Business
REPORT OF THE BOARD OF MANAGEMENT COVID-19, CONTINUATION OF BUSINESS • High engagement level and sense of responsibility of all employees • Management focus on keeping people safe and continuation of operations • Globally no customers lost due to supply issues • Video calls: good alternative, but wi
Slide 8: Markets
REPORT OF THE BOARD OF MANAGEMENT MARKETS • Manufacturing industry, including our core segments: business interruptions in H1 • Packaging overall solid, however PET bottle “on-the-go” negatively impacted by travel restrictions • Building and Construction: housing renovations up in H2 in Europe and N
Slide 9: Our Business
REPORT OF THE BOARD OF MANAGEMENT OUR BUSINESS • Europe and South East Asia: lower market demand H1, recovery speed different per country in H2 • China: pipeline filling in H1, emptying in H2, dairy markets - UHT versus cold chain • Middle East, Africa and South America: lower demand in H1 and H2 •
Slide 10: Cost and Investments
REPORT OF THE BOARD OF MANAGEMENT COST AND INVESTMENTS • Raw materials • H1: some price relaxation, improved relative margins, also mix related • H2: cautious start of global recovery • March 2021: first signs of disbalance in supply/demand material markets and price increases • OPEX and CAPEX • H1
Slide 11: Developments
REPORT OF THE BOARD OF MANAGEMENT DEVELOPMENTS • Safety: Safety Ladder methodology will increase awareness and performance • Sustainability: vision and objectives defined, road map in development • New general manager (Asia) and new financial management (Asia and Americas) • Strategy execution ‘Grow
Slide 12: KPI's and Performance
REPORT OF THE BOARD OF MANAGEMENT KPI’S AND PERFORMANCE FY 2020/2021 FY 2019/2020 Revenue growth -/-5.0% +12.0% ROS > 10% 12.9% 10.6% ROI > 15% 32.6% 27.0% Zero accidents 5 2 Innovation index > 10% 12.9% 14.6% Solvency > 60% 73.6% 74.5% 12
Slide 13: Financial Results FY 2020/2021
FINANCIAL RESULTS FY 2020/2021 COLORING YOUR SUCCESS 13 13
Slide 14: Better Than Expected At The Outset
Better Than Expected At The Outset 14
Slide 15: Holland Colours Group Key Figures
FINANCIAL RESULTS FY 2020/2021 HOLLAND COLOURS GROUP KEY FIGURES 15
Slide 16: Division EMEIA
FINANCIAL RESULTS FY 2020/2021 DIVISION EMEIA In million euros • Lower revenues for this financial year • Cost savings, mainly due to travel restrictions. 16
Slide 17: Division Americas
FINANCIAL RESULTS FY 2020/2021 DIVISION AMERICAS In million USD • Revenue growth despite challenges due to COVID-19 • Lower operating expenses due to cost savings and government support 17
Slide 18: Division Asia
FINANCIAL RESULTS FY 2020/2021 DIVISION ASIA In million USD • Favorable exchange rate differences on IDR/USD resulted in same operating result • Lower volumes in Packaging segment 18
Slide 19: Cash Flow Development
FINANCIAL RESULTS FY 2020/2021 CASH FLOW DEVELOPMENT • Positive effect of measures taken • Increase of operating result by EUR 2 million • Favorable effect in working capital due to stringent measurements • Lower capital expenditures in first half year 19
Slide 20: Dividend Distribution Year Overview (per share)
FINANCIAL RESULTS FY 2020/2021 DIVIDEND DISTRIBUTION 5 YEAR OVERVIEW (per share) FY 2016/2017 FY 2017/2018 FY 2018/2019 FY 2019/2020 FY 2020/2021 5 year total Net result EUR 6.03 EUR 6.78 EUR 7.04 EUR 9.09 EUR 11.00 EUR 39.94 Interim dividend - - - - EUR 4.55 EUR 4.55 Final dividend EUR 3.01 EUR 3.3
Slide 21: Financial Statements FY 2020/2021
3. FINANCIAL STATEMENTS FY 2020/2021 a. Advisory vote regarding the remuneration report financial year 2020/2021(advisory vote) b. Adoption of the financial statements 2020/2021 (voting item) COLORING YOUR SUCCESS 21 21
Slide 22: Note from our external auditor PwC
Note from our external auditor PwC PwC: OUR KEY MESSAGES Risk of fraud 22
Slide 23: Reserves and Dividend Policy
4. RESERVES AND DIVIDEND POLICY COLORING YOUR SUCCESS 23 23
Slide 24: Profit Appropriation and Dividend Policy
PROFIT APPROPRIATION AND DIVIDEND POLICY • Holland Colours intends to distribute at least 50% of its net profit in the form of dividend • Under the condition that the solvency ratio after distribution is at least 40% 24
Slide 25: Adoption of the Appropriation of the Profit
5. ADOPTION OF THE APPROPRIATION OF THE PROFIT (voting item) COLORING YOUR SUCCESS 25 25
Slide 26: Dividend Proposal FY 2020/2021
DIVIDEND PROPOSAL FY 2020/2021 • It is proposed to distribute EUR 5.50 as a final dividend for the FY 2020/2021 • An interim dividend of EUR 4.55 is distributed in November 2020 • Final dividend payable July 23, 2021 26
Slide 27: Discharge to the Board of Management
6. DISCHARGE TO THE BOARD OF MANAGEMENT (voting item) COLORING YOUR SUCCESS 27 27
Slide 28: Discharge to the Supervisory Board
7. DISCHARGE TO THE SUPERVISORY BOARD (voting item) COLORING YOUR SUCCESS 28 28
Slide 29: Supervisory Board
8. SUPERVISORY BOARD Re-appointment of Mr. J. Klaus as member of the Supervisory Board (voting item) COLORING YOUR SUCCESS 29 29
Slide 30: Update Strategy Holland Colours Group
9. UPDATE STRATEGY HOLLAND COLOURS GROUP COLORING YOUR SUCCESS 30 30
Slide 31: Our Mission
OUR MISSION Our Brand Our Differentiators Coloring Your Success • We develop existing and new customer relationships into design partnerships Our Core Values • We do not compromise on regulatory compliance and we maintain • Teamwork the highest quality standards • Accountability • We continuously bu
Slide 32: The Choices We Made in 2019
THE CHOICES WE MADE IN 2019 Grow core Geographic focus Portfolio expansion REVENUE GROWTH Commercial excellence Operational excellence CONTINUOUS IMPROVEMENT People excellence Innovation excellence 32 32
Slide 33: Our Strategic Goals
OUR STRATEGIC GOALS FOCUS ON CURRENT AND RELATED PRODUCT/MARKET SEGMENTS Focus on current and related product / market segments • Extending and protecting global market positions in Packaging • Extending and protecting global market positions in Building & Construction • Extending market positions i
Slide 34: Product Launches
PRODUCT LAUNCHES Holcoplast Dazzle Special effects paste for soft PVC Flooring Holcopearl Diffuse Light diffusing concentrate Lighting Tasteguard Liquid and Solid Protecting the taste of premium water Water bottle Thermostretch Improving sustainability for dairy bottle production Dairy bottle 34
Slide 35: Growing Together Program
GROWING TOGETHER PROGRAM SUPPORT THE GROWTH BY GROWING OUR INTERNAL CAPABILITIES • Align and optimize activities across integral customer-oriented processes • Renew supporting IT and data solutions • Develop organizational skills and capabilities 35
Slide 36: Sustainability Vision
SUSTAINABILITY VISION WE ENVISION A COLORFUL WORLD IN WHICH WE ARE THE WINNING SUSTAINABLE SOLUTION 36
Slide 37: Strategic Roadmap: Growing Together 2023
STRATEGIC ROADMAP: GROWING TOGETHER 2023 SUMMARY • Revamp top-line growth • Implementation and transition Business Processes and IT • Increased investments in systems, equipment and people • Implement sustainability vision 37
Slide 38: Outlook 2021/2022
OUTLOOK 2021/2022 • Grounds for positivity, but continued uncertainty related to COVID-19 • vaccination programs progressing on a global scale • differences per continent and country, government restrictions lifted or maintained • mix of segments and geography proves to be a well balanced portfolio
Slide 39: Authorization to the Board of Management
10. AUTHORIZATION TO THE BOARD OF MANAGEMENT Subject to the approval of the Supervisory Board, to acquire ordinary shares in the Company on behalf of the Company (voting item) COLORING YOUR SUCCESS 39 39
Slide 40: Voting Results
VOTING RESULTS Nr Agenda item Result 3a. Advisory vote regarding the remuneration report financial year Positive advice 2020/2021 3b. Adoption of the financial statements 2020/2021 Approved 5. Adoption of the appropriation of the profit Approved 6. Discharge to the Board of Management Approved 7. Di
Slide 41: Any Other Business
11. ANY OTHER BUSINESS COLORING YOUR SUCCESS 41 41
Slide 42: Closure
12. CLOSURE COLORING YOUR SUCCESS 42 42
Slide 43: Our Core Values
OUR CORE VALUES TEAMWORK PRO-ACTIVENESS ACCOUNTABILITY COMPETENCE RESPONSIBILITY 43 43
Slide 44: Thank You for Your Attention
THANK YOU FOR YOUR ATTENTION COLORING YOUR SUCCESS 44 44