Tessenderlo Group N.v. · EURONEXT:TESB
Tessenderlo — HY 2011 Earnings Presentation
38 slides from Tessenderlo's earnings presentation, Aug 25, 2011
Slide 1: 2Q11 and HY Results presentation
Tessenderlo Group reports solid operational performance and completes divestment of PVC/Chlor- Alkali businesses 2Q11 and HY Results presentation August 25th, 2011
Slide 2: Second quarter financial summary
Second quarter financial summary REVENUE (Million EUR) REBITDA (Million EUR) Continuing Discontinued Total Continuing Discontinued Total operations operations operations operations 561.9 156.4 718.4 60.8 7.8 68.7 +2.3% +5.0% PROFIT FOR THE PERIOD (Million EUR) REBITDA MARGIN (%) Continuing Discontin
Slide 3: Half year financial summary
Half year financial summary REVENUE (Million EUR) REBITDA (Million EUR) Continuing Discontinued Total Continuing Discontinued Total operations operations operations operations 1,116.9 306.4 1,423.3 116.9 17.6 134.5 +9.5% +35.3% PROFIT FOR THE PERIOD (Million EUR) REBITDA MARGIN (%) Continuing Discon
Slide 4: Highlights
Highlights Major step in transformation into a specialty group – sale of PVC, Chlor-Alkali & part of OCD activities, August 2011 Sale of Chelsea Building Products, July 2011 Further expansion of sulfur activities in the US, May 2011 Tessenderlo Kerley (TKI) to expand its sulfur fertilizer capa
Slide 5: 2Q11 Revenue by operating segment
2Q11 Revenue by operating segment Million EUR and % increase versus 2Q10 +13.9% +10.9% +2.1% -2.0% -9.8% Gelatin & Tessenderlo PPS & Other Inorganics + 2.3% Akiolis Kerley Profiles Businesses +12.5 + 8.0 + 3.2 (2.2) (10.7) + 14.2 549.4 561.9 Revenue Revenue 2Q10 2Q11 • The 2Q11 increase of 2.3% in r
Slide 6: HY11 Revenue by operating segment
HY11 Revenue by operating segment Million EUR and % increase versus HY10 +22.2% +6.9% +3.5% +1.8% +19.0% Tessenderlo PPS & Other Gelatin & Inorganics + 9.5% Akiolis Kerley Profiles Businesses +19.4 +7.0 +3.8 +96.4 +37.6 +28.5 1020.5 1116.9 Revenue Revenue HY10 HY11 • Half year 2011 revenue grew 9.5%
Slide 7: 2Q11 REBITDA by operating segment
2Q11 REBITDA by operating segment Million EUR and % increase versus 2Q10 Gelatin & Other Inorganics Non- PPS & Tessenderlo Businesses allocated Akiolis Profiles Kerley + 5.0% + 0.1 + 0.1 (1.9) + 2.4 (2.3) +2.9 + 4.7 57.9 60.8 REBITDA REBITDA 2Q10 2Q11 • 2Q11 REBITDA growth of 5.0% due to Tessenderlo
Slide 8: HY11 REBITDA by operating segment
HY11 REBITDA by operating segment Million EUR and % increase versus HY10 Inorganics PPS & Non- Gelatin & Profiles allocated Other Akiolis Tessenderlo Businesses (0.5) + 35.3% Kerley +6.6 (3.1) +6.6 +7.8 +30.5 +13.3 116.9 86.4 REBITDA REBITDA HY10 HY11 • HY11 REBITDA was 35.3% higher than a year ago,
Slide 9: Strong balance sheet maintained
Strong balance sheet maintained 900.0 4 750.0 •Working capital/revenue decreased 2.7 3 year on year 600.0 1.6 1.4 2 •Gain from the disposal of 1.4 1 Tessenderlo Fine Chemicals (UK) 450.0 0.9 0.8 0 316.8 •Higher capex in Gelatin and 315.1 300.0 283.2 -1 Tessenderlo Kerley 148.6 121.2 138.4 -2 •Procee
Slide 10: Improved revenue and profitability
Improved revenue and profitability GROUP KEY FIGURES – Continuing operations 2Q11 2Q10 % Change Million EUR HY11 HY10 % Change 561.9 549.4 2.3% Revenue 1,116.9 1,020.5 9.5% 60.8 57.9 5.0% REBITDA 116.9 86.4 35.3% 10.8% 10.5% 30 bps REBITDA margin 10.5% 8.5% 200 bps 41.0 36.2 13.2% REBIT 76.3 43.1 77
Slide 11: One-time non-cash charge taken in 2Q11
One-time non-cash charge taken in 2Q11 GROUP KEY FIGURES – Discontinued operations 2Q11 2Q10 Million EUR HY11 HY10 156.4 122.2 Revenue 306.4 240.6 7.8 -0.9 REBITDA 17.6 3.1 5.0% -0.8% REBITDA margin 5.8% 1.3% 1.2 -7.8 REBIT 5.3 -10.5 0.8% -6.3% REBIT margin 1.7% -4.4% Recurrent profit (+)/loss (-) 1
Slide 12: 2Q11 Group Revenue and REBITDA per segment
2Q11 Group Revenue and REBITDA per segment Revenue (% of total) REBITDA (% of total*) Tessenderlo Other businesses Kerley 14.6% 9.9% 28.1% PPS & Profiles Inorganics Tessenderlo 11.5% 31.8% Kerley Inorganics 17.7% 561.9 60.8 mEUR mEUR PPS & Profiles 21.7% 20.8% 18.7% 25.1% Gelatin & Akiolis Other bus
Slide 13: HY11 Group Revenue and REBITDA per segment
HY11 Group Revenue and REBITDA per segment Revenue (% of total) REBITDA (% of total*) Tessenderlo Other businesses Kerley 14.1% 10.6% 27.0% PPS & Profiles Inorganics Tessenderlo 10.8% 32.0% Kerley Inorganics 18.5% 1,116.9 116.9 mEUR 18.6% mEUR PPS & Profiles 21.1% 19.3% Gelatin & Akiolis 28.0% Other
Slide 14: Inorganics
REBITDA (% of total) 10.8% 116.9 mEUR Inorganics 2010 REBITDA (Million EUR) & Revenue (Million EUR) REBITDA margin (%) 120 2011 45 100 40 20% 80 35 6.8% 30 3.8% 10% 60 107.3 110.5 25 89.5 99.8 20 0% 40 15 -10% 10 20 -20% 5 7.5 14.1 0 0 -30% Q1 Q2 HY10 HY11 Million EUR HY 2010 HY 2011 Revenue 200.0 2
Slide 15: Gelatin & Akiolis
REBITDA (% of total) 116.9 mEUR 28.0% Gelatin & Akiolis 2010 REBITDA (Million EUR) & Revenue (Million EUR) REBITDA margin (%) 2011 120 45 40 15.0% 15.4% 20% 35 80 30 10% 25 118.8 102.8 117.0 0% 20 40 95.3 36.3 15 29.7 -10% 10 -20% 5 0 0 -30% Q1 Q2 HY10 HY11 Million EUR HY 2010 HY 2011 Revenue 198.1
Slide 16: Tessenderlo Kerley
REBITDA (% of total) 32.0% 116.9 mEUR Tessenderlo Kerley 2010 REBITDA (Million EUR) & Revenue (Million EUR) REBITDA margin (%) 2011 90 26.5% 45 22.0% 40 20% 35 60 30 10% 25 0% 75.0 74.1 82.1 20 41.6 30 54.5 15 28.3 -10% 10 -20% 5 0 0 -30% Q1 Q2 HY10 HY11 Million EUR HY 2010 HY 2011 Revenue 128.6 157
Slide 17: Plastic Pipe Systems & Profiles
REBITDA (% of total) 116.9 mEUR 18.6% Plastic Pipe Systems & Profiles 2010 REBITDA (Million EUR) & Revenue (Million EUR) REBITDA margin (%) 2011 160 45 40 20% 120 35 8.8% 8.0% 30 10% 25 80 154.8158.0 0% 143.1 20 126.9 15 -10% 40 10 24.7 24.2 -20% 5 0 0 -30% Q1 Q2 HY10 HY11 Million EUR HY 2010 HY 201
Slide 18: Other Businesses
REBITDA (% of total) 10.6% 116.9 mEUR Other Businesses* * Includes Water Treatment and Sulphur Derivatives 2010 REBITDA (Million EUR) & Revenue (Million EUR) REBITDA margin (%) 2011 120 45 40 20% 35 6.3% 80 30 2.8% 10% 25 0% 104.7 110.6 107.4 105.2 20 40 15 -10% 10 5 13.7 -20% 5.9 0 0 -30% Q1 Q2 HY1
Slide 19: Profit from continuing operations for HY11 driven by operational performance
Profit from continuing operations for HY11 driven primarily by strong operational performance Million EUR PROFIT from Share of continuing Result from REBIT Non-recurring Income Tax result of operations discontinued Total result HY11 items EBIT Finance costs Expense investments HY11 operations HY11 3
Slide 20: Non-recurring items HY11
Non-recurring items HY11 Million EUR 0.1 (0.6) (1.8) 5.5 3.1 Capital gain on sale of Provisions and claims Restructuring Other Total non strategic assets non-recurring costs Non-recurring items 20 Financial data from continuing operations
Slide 21: Net debt
Net debt Million EUR Net debt Net debt 31/12/2010 30/06/2011 (162.0) (176.7) Capex & other Proceeds from sale of investments Cash flow from non-strategic operating assets Net other activities (47.3) movements +19.5 +15.2 (2.1) Working capital requirements rose linked to revenue growth but lower as %
Slide 22: Group Trade Working Capital Evolution
Group Trade Working Capital Evolution Million EUR 700 25% 21.6% 600 19.2% 20% 500 16.7% 15% 400 300 10% 481.0 491.2 200 404.5 5% 100 0 0% June 2010 December 2010 June 2011 Trade Working Capital excluding factoring Trade Working Capital excluding factoring/Last 12 months revenue (%) 22
Slide 23: Solid balance sheet maintained
Solid balance sheet maintained Million EUR 1800.0 1,557.5 1,696.5 1,726.5 1800.0 1,557.5 1,696.5 1,726.5 Liabilities associated 18.1 0.4 6.5 1600.0 1600.0 with assets classified as held for sale Non-current assets 135.6 held for 1400.0 sale 217.5 649.9 670.8 1400.0 648.9 690.0 Other liabilities 1200
Slide 24: Outlook
Outlook Tessenderlo Group’s operational performance in the first half of 2011 has shown progress versus the same period a year ago. For the continuing operations, the second half of 2011 is anticipated to be broadly in line with the solid results recorded in the second half of 2010. Consequently, as
Slide 25: Q&A
Q&A
Slide 26: Appendix
Appendix
Slide 27: 2Q11 Revenue by operating segment
2Q11 Revenue by operating segment Million EUR and % increase versus 2Q10 +13.9% +11.5% +10.9% +2.1% -9.8% Gelatin & Other Tessenderlo PPS & Inorganics + 4.8% Akiolis Businesses Kerley Profiles +25.5 +10.8 +8.0 +3.2 (10.7) +14.2 536.4 561.9 Revenue Revenue 2Q10 2Q11 • Revenue grew 4.8% on a like-for-
Slide 28: HY11 Revenue by operating segment
HY11 Revenue by operating segment Million EUR and % increase versus HY10 +22.2% +13.2% +6.9% +3.5% +19.0% Tessenderlo Other PPS & Inorganics Gelatin & + 11.8% Akiolis Kerley Businesses Profiles +19.4 +7.0 + 117.8 +37.6 +28.5 +25.1 1116.9 999.1 Revenue Revenue HY10 HY11 • Revenue grew 11.8% on a like
Slide 29: 2Q11 REBITDA by operating segment
2Q11 REBITDA by operating segment Million EUR and % increase versus 2Q10 Gelatin & Other Inorganics Non- PPS & Tessenderlo Businesses allocated Akiolis Profiles + 7.1% Kerley +1.2 +0.1 (1.9) +4.0 +2.4 (2.3) +4.7 56.7 60.8 REBITDA REBITDA 2Q10 2Q11 • 2Q11 REBITDA grew 7.1% on a like-for-like basis (a
Slide 30: HY11 REBITDA by operating segment
HY11 REBITDA by operating segment Million EUR and % increase versus HY10 PPS & Non- Gelatin & Inorganics Profiles allocated Other Akiolis + 38.2% Tessenderlo Businesses (0.5) Kerley +6.6 (3.1) +6.6 +32.3 +9.6 +13.3 116.9 84.5 REBITDA REBITDA HY10 HY11 • REBITDA grew 38.2% on a like-for-like basis (a
Slide 31: Other Businesses
REBITDA (% of total) 10.6% 116.9 mEUR Other Businesses* * Includes Water Treatment and Sulphur Derivatives REBITDA (Million EUR) & Revenue (Million EUR) 2010 REBITDA margin (%) 2011 45 120 40 20% 35 6.3% 10% 80 30 2.1% 25 0% 110.6 96.4 105.2 20 40 94.4 15 -10% 10 5 13.7 -20% 0 0 4.1 -30% Q1 Q2 HY10
Slide 32: Inorganics
Inorganics Revenue (Million EUR) 120 100 80 60 110.5 106.0 107.3 99.8 89.5 94.6 40 20 0 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 -9.8% REBITDA (Million EUR) & REBITDA margin (%) 8.6% 7.8% 12 7.0% 5.9% 9% 4.7% 6% 9 -0.3% 3% 0% -3% 6 -6% 7.7 8.2 7.8 -9% 3 6.3 5.0 -12% -15% 0 (0.2) -18% 1Q10 2Q10 3Q10 4Q10 1Q11 2
Slide 33: Gelatin & Akiolis
Gelatin & Akiolis Revenue (Million EUR) 120 100 80 60 118.8 117.0 102.8 103.6 109.1 95.3 40 20 0 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 +13.9% REBITDA (Million EUR) & REBITDA margin (%) 16.0% 16.3% 20 14.1% 15.0% 14.6% 14.5% 15% 15 10% 10 19.3 5% 15.2 14.5 15.5 15.9 16.9 5 0% 0 -5% 1Q10 2Q10 3Q10 4Q10 1Q11 2
Slide 34: Tessenderlo Kerley
Tessenderlo Kerley Revenue (Million EUR) 90 60 74.1 75.0 82.1 30 54.5 53.9 48.8 0 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 +10.9% REBITDA (Million EUR) & REBITDA margin (%) 26.8% 26.1% 25 22.7% 22.3% 25% 21.2% 20 20% 14.9% 15% 15 10% 10 20.1 21.4 16.7 5% 5 11.6 12.0 7.3 0% 0 -5% 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 +
Slide 35: Plastic Pipe Systems & Profiles
Plastic Pipe Systems & Profiles Revenue (Million EUR) 160 120 80 154.8 147.5 158.0 133.0 143.1 126.9 40 0 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 +2.1% REBITDA (Million EUR) & REBITDA margin (%) 10.9% 20 9.0% 9.2% 11% 9% 6.1% 6.7% 15 5.1% 7% 5% 10 3% 16.9 13.3 14.6 1% 5 7.8 9.6 -1% 6.8 -3% 0 -5% 1Q10 2Q10 3Q1
Slide 36: Other Businesses
Other Businesses* •Includes Water Treatment and Revenue (Million EUR) Sulphur Derivatives 120 100 80 60 110.6 104.7 107.4 103.7 103.2 105.2 40 20 0 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 -2.0% REBITDA (Million EUR) & REBITDA margin (%) 6.1% 6.4% 6.3% 10 4.3% 5% 2.5% 3% 5 6.6 7.0 6.7 1% -0.7% 4.4 2.6 0 -1% (0
Slide 37: Non-recurring items 2Q11
Non-recurring items 2Q11 Million EUR Capital gain on sale of Other Total Provisions and claims non strategic assets Restructuring non-recurring costs Non-recurring items 0.1 (0.1) (0.6) (1.6) (1.0) 37 Financial data from continuing operations
Slide 38: 2Q11 and HY Results presentation
Tessenderlo Group reports solid operational performance and completes divestment of PVC/Chlor- Alkali businesses 2Q11 and HY Results presentation August 25th, 2011