Recticel Sa · EURONEXT:RECT
Recticel Sa — H1 2019 Earnings Presentation
33 slides from Recticel Sa's earnings presentation, Aug 30, 2019
Slide 1: First Half-Year 2019 Results – Financial Analysts Meeting
RECTICEL First Half-Year 2019 Results Financial Analysts Meeting Brussels – August 30, 2019 Olivier Chapelle – Chief Executive Officer Jean-Pierre Mellen – Chief Financial Officer Michel De Smedt – Investor Relations Officer 1 Brussels, August 30, 2019 Analysts’ Meeting – Results 1H2019
Slide 2: Agenda
Agenda Highlights 1H2019 Results 1H2019 & Financial Position Outlook FY2019 Comments on results per business line Appendices 2 Brussels, August 30, 2019 Analysts’ Meeting – Results 1H2019
Slide 3: Highlights 1H2019
Highlights 1H2019 1 Like-for-like Combined Sales -7.6% | Adj EBITDA -15.4% | Net Result -10.5% (all before IFRS 16) 2 Reduction of participation in Proseat joint venture (Automotive), from 51% to 25% (exit 1/1/2022 latest) Increase of participation in Turvac joint venture (Vacuum Insulated Panels -
Slide 4: Agenda
Agenda Highlights 1H2019 Results 1H2019 & Financial Position Outlook FY2019 Comments on results per business line Appendices 4 Brussels, August 30, 2019 Analysts’ Meeting – Results 1H2019
Slide 5: Like-for-like Net Financial Debt reduced by 56.9m€ over last 12 months
Like-for-like: Sales: -7.6% | Adj. EBITDA: -15.4% | EAT: -10.7% Like-for-like Net Financial Debt reduced by 56.9m€ over last 12 months Impact IFRS 16 on full year basis: EBITDA: +27.0m€ | Debt: +117.1m€ Proforma w ith Proforma As Published Proseat at Equity IFRS 16 impact As Published before IFRS 16
Slide 6: 1H2019 combined sales decreased by 7.6%
1H2019 combined sales decreased by 7.6%, including a currency impact of +0.1% Lower net sales reported in all segments • Insulation (-2.2%) : strong volume increase (double-digit percentage), offset by reduced selling prices following lower raw material costs. • Bedding (-3.8%) : weak markets, esp
Slide 7: Automotive new passenger car registrations remain very negative in China & Europe
Automotive new passenger car registrations remain very negative in China & Europe ! Source : Europe : ACEA Asia : Statista & Marklines.com 7 Brussels, August 30, 2019 Analysts’ Meeting – Results 1H2019
Slide 8: The MDI crisis of 2017 has deeply impacted the PIR insulation markets
The MDI crisis of 2017 (shortage & price +65%) has deeply impacted the PIR insulation markets, and led to a 7.2% volume decline in 2018 at Recticel. In 2019, volumes are expected to increase by 13% to a new record level ! Despite the 2017 crisis, volumes growth of 7.5% CAGR% over the 2009-2019 (10%
Slide 9: MDI & TDI prices have started to increase at the beginning of 2Q2019
MDI & TDI prices have started to increase at the beginning of 2Q2019 Polyol prices have remained stable. 9 Brussels, August 30, 2019 Analysts’ Meeting – Results 1H2019
Slide 10: Like-for-like combined Adj. EBITDA decreased by 15.6%
Like-for-like1/2 combined Adj. EBITDA decreased by 15.6% Challenging market environment impacts profitability, except in Flexible Foams • Flexible Foams (+20.8%) : despite lower volumes and some selling price erosion, Flexible Foams benefitted from positive mix and operational improvements. • Bedd
Slide 11: Non-recurring adjustments +0.4m€ versus -5.2m€ in 1H2018
Non-recurring adjustments +0.4m€ versus -5.2m€ in 1H2018 Impact non-recurring elements on EBITDA : +1.1m€ (1H2018: -4.6m€) Impact non-recurring elements on EBIT : +0.4m€ (1H2018: -5.2m€) Non-recurring elements include: • capital gain realised upon the reduction of the participation in Proseat
Slide 12: Like-for-like net profit decreases by 10.7% to 16.7m€, pre-IFRS 16
Financial charges reduced by 50% pre-IFRS 16 Taxes reduced by 17% Like-for-like net profit decreases by 10.7% to 16.7m€, pre-IFRS 16 Combined financial result: -4.9m€, -2.6m€ before IFRS 16 versus -5.3m€ in 1H2018 • Net interest charges : -4.1m€, -1.6m€ before IFRS 16 versus -2.6m€ in 1H2018. The
Slide 13: Pre-IFRS Net Financial debt at new record low level of 144.1 m€
Pre-IFRS 16 Gearing & Leverage improved to new record levels (31.5% & 0.9) ! Pre-IFRS Net Financial debt at new record low level of 144.1 m€ ! IFRS 16 adds 117.1m€ to Combined debt and 109.8m€ Consolidated debt 13 Brussels, August 30, 2019 Analysts’ Meeting – Results 1H2019
Slide 14: Historical view of Capital structure shows continuous progress
Historical view of Capital structure shows continuous progress. Proforma IFRS 16 As published As published before IFRS As published impact 16 Combined Group capital structure (m€) 2015 2016 2017 H1 2018 2018 H1 2019 H1 2019 Total Equity 249.0 251.2 262.0 254.7 265.0 266.5 -0.6 265.9 Net Financial De
Slide 15: Agenda
Agenda Highlights 1H2019 Results 1H2019 & Financial Position Outlook FY2019 Comments on results per business line Appendices 15 Brussels, August 30, 2019 Analysts’ Meeting – Results 1H2019
Slide 16: Automotive Interiors divestment update
Automotive Interiors divestment update The Automotive Interiors divestment process continues its course in unfavourable market circumstances. Interested parties are currently assessing the division and we expect the outcome to be announced around the year-end. 16 Brussels, August 30, 2019 Analysts’
Slide 17: Combined Income Statement 2018 restated like-for-like for Proseat divestment
Combined Income Statement 2018 restated on a like-for-like basis for the Proseat divestment (consolidation under equity method) 2018 2018 As in m€ Restated like- Published for-like Net sales 1,448.3 1,315.5 Adjusted EBITDA 103.8 97.7 Adjustments to EBITDA -10.4 -10.2 EBITDA 93.4 87.5 Depreciation -4
Slide 18: Outlook
Outlook The economic and geopolitical environment remains highly volatile and increasingly uncertain. Taking into account the gradual profitability improvement within the first half-year, and our expectations for the remainder of the year, we anticipate our 2019 full year Adjusted EBITDA to be in li
Slide 19: Market consensus 1H & FY 2019
Market consensus 1H & FY 2019 BERENBERG DEGROOF KEPLER ING KBC SECURITIES in million € BANK PETERCAM CHEVREUX AVERAGE BEFORE IFRS 16 1H2019 Combined Sales 633,6 655,7 - 632,3 629,8 637,9 Combined Adj. EBITDA 45,3 49,9 - 41,5 46,4 45,8 as % of sales 7,1% 7,6% - 6,6% 7,4% 7,2% BEFORE IFRS 16 FY2019 Co
Slide 20: Agenda
Agenda Highlights 1H2019 Results 1H2019 & Financial Position Outlook FY2019 Comments on results per business line Appendices 20 Brussels, August 30, 2019 Analysts’ Meeting – Results 1H2019
Slide 21: Flexible Foams: lower sales but improved profitability
Lower sales but improved profitability driven by a positive net pricing effect including increased prices for trim foam, an improved product-mix and operational efficiency improvements Key financials Recent developments 1H2019 1H2019 in million EUR 1H2018 before IFRS 16 D after IFRS 16 Decreasing
Slide 22: Bedding: challenging market environments but improved product-mix
Challenging market environments but improved product-mix. Key financials Recent developments 1H2019 1H2019 in million EUR 1H2018 D before IFRS 16 after IFRS 16 The new innovative Geltex 2.0 and boxsprings product (a) (b) (b)/(a)-1 Sales 124,6 119,8 -3,8% 119,8 lines are supporting the Branded Prod
Slide 23: Insulation: higher sales volumes offset by selling price erosion
Higher sales volumes offset by selling price erosion Key financials Recent developments 1H2019 1H2019 in million EUR 1H2018 D before IFRS 16 after IFRS 16 Increase of participation in joint venture Turvac from 50% (a) (b) (b)/(a)-1 Sales 132,7 129,8 -2,2% 129,8 to 74%. Adjusted EBITDA 22,8 14,8 -3
Slide 24: Automotive: sales grew on strong markets and new program start-up
Sales grew on strong Automotive markets and new program start-up. EBITDA +45.1% mainly linked to reduced non-recurring costs Key financials Recent developments 1H2018 1H2018 1H2019 1H2019 in million EUR D (restated) 2 Partial divestment from Proseat in February 2019. (as published) before IFRS 16
Slide 25: Agenda
Agenda Highlights 1H2019 Results 1H2019 & Financial Position Outlook FY2019 Comments on results per business line Appendices 25 Brussels, August 30, 2019 Analysts’ Meeting – Results 1H2019
Slide 26: Consolidated Income Statement
Consolidated Income Statement Group Recticel 1H2019 1H2019 1H2018 D in thousand EUR after IFRS 16 before IFRS 16 (a) (b) (b)/(a)-1 Sales 579 730 536 072 536 072 -7,5% Distribution costs (29 404) (30 983) (31 023) 5,5% Cost of sales (448 157) (403 923) (405 300) -9,6% Gross profit 102 169 101 166 99
Slide 27: Consolidated Comprehensive Income
Consolidated Comprehensive Income Group Recticel 1H2018 1H2019 in thousand EUR Result for the period after taxes 18 686 16 101 Other comprehensive income Items that will not subsequently be recycled to profit and loss Actuarial gains (losses) on employee benefits recognized in equity 4 478 ( 4 333)
Slide 28: Consolidated Balance Sheet
Consolidated Balance Sheet Group Recticel 30 Jun 2019 30 Jun 2019 31 Dec 2018 D in thousand EUR after IFRS 16 before IFRS 16 (a) (b) (b)/(a)-1 Intangible assets 12 045 13 226 13 226 9,8% Goodwill 23 354 23 641 23 641 1,2% Property, plant & equipment 232 541 206 657 206 657 -11,1% Right-of-use assets
Slide 29: Consolidated Statement of Cash Flow
Consolidated Statement of Cash Flow Group Recticel 1H2019 1H2019 1H2018 D in thousand EUR after IFRS 16 before IFRS 16 (a) (b) (b)/(a) -1 EBIT 29 141 24 733 23 173 -20,5% Depreciation, amortisation and impairment losses on assets 16 275 28 513 17 599 8,1% Write-offs (-back) on assets - 295 79 79 nr
Slide 30: Statement of changes in equity
Statement of changes in equity Translation Total equity, differences Total Group Recticel Treasury Retained Non-controlling non-controlling Capital Share prem ium Other reserves reserves and shareholders' in thousand EUR shares earnings interests interests Hedging equity included reserves At the end
Slide 31: Data per share
Data per share Group Recticel 1H2018 1H2019 D in EUR (a) (b) (b)/(a)-1 Number of shares outstanding (including treasury shares) 54 998 850 55 293 406 0,5% Weighted average number of shares outstanding (before 54 527 800 54 917 196 0,7% dilution effect) Weighted average number of shares outstanding (
Slide 32: Contacts
Contacts Recticel International Headquarters Investor Relations Press 2, avenue des Olympiades/Olympiadenlaan, 2 Michel De Smedt Olivier Chapelle, CEO B-1140 Brussels Email: [email protected] Email: [email protected] Tel: +32 (0)2 775 18 11 Tel: +32 (0)2 775 18 09 Tel: +32 (0)2
Slide 33: Thank you for your attention! Q&A
Thank you for your attention! Q&A 33 Brussels, August 30, 2019 Analysts’ Meeting – Results 1H2019