Tessenderlo Group N.v. · EURONEXT:TESB
Tessenderlo — Q1 2011 Earnings Presentation
22 slides from Tessenderlo's earnings presentation, May 5, 2011
Slide 1: Tessenderlo Group 1Q11 Results presentation
Tessenderlo Group Strong first quarter operational performance confirms exit of the crisis 1Q11 Results presentation Brussels - May 5th, 2011
Slide 2: A quarter of strong performance
A quarter of strong performance REVENUE REBITDA 670.9m EUR 65.8m EUR +18.3% +102.6% PROFIT FOR THE LEVERAGE PERIOD 1Q11: 0.8x 1Q11: 30.1m EUR 1Q10: 3.2x 1Q10: -5.1m EUR 2
Slide 3: Highlights
Highlights Sale of Tessenderlo Fine Chemicals (UK), January 2011 Transaction amounted to 17m GBP on a cash-free, debt-free basis Expansion of core sulfur activities in the US, March 2011 Tessenderlo Kerley (TKI) and Gary Williams Energy Corporation entered into a long-term agreement for expanded
Slide 4: 1Q11 Revenue increased in all segments
1Q11 Revenue increased in all segments Million EUR and % increase versus 1Q10 +19.6% +12.8% +1.1% +24.6% +37.6% +21.3% Other PPS & Gelatin & Tessenderlo Inorganics Profiles Businesses* PVC/ Kerley + 18.3% Chlor-Alkali Akiolis + 0.9 + 17.4 + 16.2 + 20.5 +103.6 + 25.1 + 23.4 670.9 567.3 Revenue Revenu
Slide 5: Strong REBITDA growth
Strong REBITDA growth All operating segments higher than a year ago Million EUR and % increase versus 1Q10 Gelatin & PPS & Non- Other Akiolis Profiles allocated Businesses* PVC/ Inorganics + 1.8 (1.2) +102.6% Tessenderlo Chlor-Alkali + 4.1 Kerley + 6.2 +33.3 + 6.5 + 7.2 + 8.6 65.8 32.5 REBITDA REBIT
Slide 6: Group net debt and leverage remain well under control
Group net debt and leverage remain well under control 4.6 • Improved working capital/revenue 900 year on year 4 750 3 • Gain from the disposal of 3.2 Tessenderlo Fine Chemicals (UK) 600 1.6 1.5 2 1 • Higher capex due to investments in 450 0.9 0.8 350.6 0 Gelatin and Tessenderlo Kerley 283.2 304.4 -1
Slide 7: Significantly improved revenue and profitability
Significantly improved revenue and profitability GROUP KEY FIGURES Million EUR 1Q11 1Q10 % Change Revenue 670.9 567.3 18.3% REBITDA 65.8 32.5 102.6% REBITDA margin 9.8% 5.7% 408 bps REBIT 39.4 4.2 8.5x REBIT margin 5.9% 0.7% 515 bps Non-recurring items 4.9 1.9 1.6x EBIT 44.3 6.1 6.3x Profit (+)/loss
Slide 8: 1Q11 Group Revenue and REBITDA per segment
1Q11 Group Revenue and REBITDA per segment Revenue (% of total) REBITDA (% of total*) Tessenderlo Kerley Other businesses Inorganics 11.2% PVC/Chlor-Alkali 6.2% 21.4% 8.7% Tessenderlo Other 27.9% Kerley businesses 12.6% PPS & Profiles 13.3% 670.9 65.8 15.9% mEUR mEUR Inorganics 21.3% PPS & Profiles
Slide 9: Inorganics
REBITDA (% of total) 8.7% 65.8m EUR Inorganics Revenue (Million EUR) REBITDA (Million EUR) & 29% 120 18 REBITDA margin (%) 25% 21% 14 17% 13% 80 10 9% 5.9% 106.4 -0.3% 5% 40 89.0 6 1% -3% 6.3 2 -7% -0.2 0 -11% 1Q10 1Q11 -2 1Q10 1Q11 -15% • Revenue +19.6% due to higher volumes of both sulfates and ph
Slide 10: PVC/Chlor-Alkali
REBITDA (% of total) 65.8m EUR 17.1% PVC/Chlor-Alkali Revenue (Million EUR) REBITDA (Million EUR) & 160 REBITDA margin (%) 20% 18 15% 120 8.6% 10% 13 4.3% 80 5% 143.3 118.2 8 0% 40 12.3 -5% 3 5.1 -10% 0 1Q10 1Q11 -2 1Q10 1Q11 -15% • Revenue +21.3% thanks to the positive impact of volume growth and i
Slide 11: Gelatin & Akiolis
REBITDA (% of total) 65.8m EUR 26.8% Gelatin & Akiolis Revenue (Million EUR) REBITDA (Million EUR) & REBITDA margin (%) 120 16.0% 16.3% 80 18 13% 118.8 13 8% 95.3 19.3 3% 40 8 15.2 -2% 3 -7% 0 -2 -12% 1Q10 1Q11 1Q10 1Q11 • Firm demand and pricing resulted in revenue increase of 24.6% • Top line grow
Slide 12: Tessenderlo Kerley
REBITDA (% of total) 27.9% 65.8m EUR Tessenderlo Kerley REBITDA (Million EUR) & Revenue (Million EUR) REBITDA margin (%) 80 26.8% 21.2% 25% 18 21% 17% 14 13% 40 75.0 10 20.1 9% 5% 54.5 1% 6 11.6 -3% 2 -7% 0 -11% 1Q10 1Q11 -2 1Q10 1Q11 -15% • +37.6% segment revenue as both specialty fertilisers and c
Slide 13: Plastic Pipe Systems & Profiles
REBITDA (% of total) 13.3% 65.8m EUR Plastic Pipe Systems & Profiles Revenue (Million EUR) REBITDA (Million EUR) & 25% 160 18 REBITDA margin (%) 21% 17% 14 120 13% 6.1% 6.7% 9% 10 80 5% 126.9 143.1 1% 6 40 9.6 -3% 7.8 2 -7% 0 -11% 1Q10 1Q11 -2 1Q10 1Q11 -15% • Segment revenue +12.8% with Plastic Pip
Slide 14: Other Businesses
REBITDA (% of total) 6.2% 65.8m EUR Other Businesses Revenue (Million EUR) REBITDA (Million EUR) & 25% 120 18 REBITDA margin (%) 21% 17% 14 13% 80 9% 10 5.3% 5% 40 83.3 84.2 6 -2.1% 1% -3% 2 4.4 -7% -1.8 0 -11% 1Q10 1Q11 -2 1Q10 1Q11 -15% * Includes disposal of Tessenderlo Fine Chemicals (UK) • Comp
Slide 15: Net result driven primarily by strong operational performance
Net result driven primarily by strong operational performance Million EUR + 4.9 (5.3) (10.2) + 1.2 39.4 44.3 30.1 REBIT Non-recurring EBIT Finance costs Income Tax Share of PROFIT 1Q11 items Expense result of 1Q11 investments 15
Slide 16: Non-recurring items 1Q11
Non-recurring items 1Q11 Million EUR (0.7) 5.6 4.9 Capital gain on sale of Other Total non strategic assets non-recurring costs Non-recurring items • Capital gains consist of sale of • the subsidiary Tessenderlo Fine Chemicals Ltd. (UK) • land owned by Tessenderlo Kerley 16
Slide 17: Net debt
Net debt Million EUR Net debt Net debt 31/12/2010 31/03/2011 (162.0) (176.8) Capex & other Cash flow from Proceeds from sale investments operating of non-strategic (18.4) activities Net other assets movements (15.3) + 19.4 (0.4) Increase of 2.9 million EUR in capex compared to March 2010 Mainly impa
Slide 18: Group Trade Working Capital Evolution
Group Trade Working Capital Evolution Million EUR 490 481 500 465 435 23.1% 21.6% 405 18.4% 400 18.7% 16.7% 300 200 100 0 March-10 June-10 September-10 December-10 March-11 Trade Working Capital excluding factoring Trade Working Capital excluding factoring/Last 12 months revenue (%) 18
Slide 19: Solid balance sheet maintained
Solid balance sheet maintained Million EUR 2000.0 2000.0 1737.8 1696.5 1737.8 1696.5 1800.0 1669.2 1800.0 1669.2 Liabilities associated Non-current assets 0.4 18.1 with assets classified 0.4 6.5 held for 1600.0 sale 1600.0 as held for sale 1400.0 729.9 649.9 1400.0 671.1 648.9 629.2 Other liabilitie
Slide 20: Outlook
Outlook 2011 expectations of a year of further progress confirmed by first quarter results Market conditions such as increasing demand in the agricultural sector, but also higher raw material costs, are expected to remain in place in coming months Anticipate year on year growth of revenue and
Slide 21: Q&A
Q&A
Slide 22: Tessenderlo Group 1Q11 Results presentation
Tessenderlo Group Strong first quarter operational performance confirms exit of the crisis 1Q11 Results presentation May 5th, 2011