Holland Colours Nv · EURONEXT:HOLCO
Holland Colours Nv — Shareholder Meeting (July 2022)
46 slides from Holland Colours Nv's shareholder meeting presentation, Jul 7, 2022
Slide 1: Annual General Meeting of Shareholders
ANNUAL GENERAL MEETING OF SHAREHOLDERS July 7, 2022 1
Slide 2: Opening
1. OPENING 2
Slide 3: Agenda (1-7)
AGENDA (1-7) 1. Opening 2. Report of the Board of Management on the financial year 2021/2022 3. Financial Statements 2021/2022 a. Advisory vote regarding the remuneration report financial year 2021/2022 (advisory vote) b. Adoption of the financial statements 2021/2022 (voting item) 4. Reserves and d
Slide 4: Agenda (8-11)
AGENDA (8-11) 8. Board of Management a. Reappointment of Mr. C.W.H. Vinke as Statutory Director (voting item) b. Reappointment of Mr. E.M.S. van Hamersveld as Statutory Director (voting item) 9. Supervisory Board Reappointment of Mr. G.H. de Heer as member of the Supervisory Board (voting item) 10.
Slide 5: Agenda (12-14)
AGENDA (12-14) 12. 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) 13. Any other business 14. Close 55
Slide 6: Report of the Board of Management on the financial year 2021/2022
2. REPORT OF THE BOARD OF MANAGEMENT ON THE FINANCIAL YEAR 2021/2022 6
Slide 7: 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 77
Slide 8: Theme of this year's annual report
THEME OF THIS YEAR’S ANNUAL REPORT THE POWER OF TEAMWORK • Clients • Marketplace • Internally 8
Slide 9: A strong financial year
REPORT OF THE BOARD OF MANAGEMENT A STRONG FINANCIAL YEAR • Living with COVID-19; responding to the situation in the Ukraine • Revenue growth; maintaining margins and supply • Higher operating expenses; investment in people and processes • Operating result and net result up; all investments from own
Slide 10: Markets
REPORT OF THE BOARD OF MANAGEMENT MARKETS • Packaging: sustainability challenges and new EU food contact legislation • Building & Construction: demand strongest in Europe and North America • Coatings & Sealants: strong demand in Europe • Customers: less time spent on new product development; focus o
Slide 11: Our business
REPORT OF THE BOARD OF MANAGEMENT OUR BUSINESS • EMEIA and Americas • volume and selling prices up; slower growth second half • strong growth in Building & Construction • Asia • growth recovering during second half; Indonesia revenue up; sales price increases • export S.E. Asia slow recovery from CO
Slide 12: Cost and investments
REPORT OF THE BOARD OF MANAGEMENT COST AND INVESTMENTS • Raw materials • supply chain disruptions; increase in stocks • multiple and continued price increases for almost all raw materials • Operating expenses • increased labor costs • higher costs related to ’process improvement and IT’ strategic ex
Slide 13: Developments
REPORT OF THE BOARD OF MANAGEMENT DEVELOPMENTS • Safety: zero accidents (L1+L2) (*), from 8 (20/21) to 7 (21/22) • Sustainability: measurement, actioning and engagement of employees • Code of conduct: strengthening compliance after incident in Indonesia • Organization: few changes of key personnel i
Slide 14: Financial Results FY 2021/2022
FINANCIAL RESULTS FY 2021/2022 14
Slide 15: Holland Colours Group key figures
FINANCIAL RESULTS FY 2021/2022 HOLLAND COLOURS GROUP KEY FIGURES 15
Slide 16: Division EMEIA
FINANCIAL RESULTS FY 2021/2022 DIVISION EMEIA In million euros • Higher revenue for this financial year due to higher average sales prices and volume increase. • All focus segments were higher compared to the previous year. 16
Slide 17: Division Americas
FINANCIAL RESULTS FY 2021/2022 DIVISION AMERICAS In million USD • Higher revenue for this financial year due higher average sales prices and volume increase. • Americas division benefited from a very strong building & construction and packaging segments. 17
Slide 18: Division Asia
FINANCIAL RESULTS FY 2021/2022 DIVISION ASIA In million USD • A revenue decrease of 3%. • Packaging in China was flatter as the growth in the market for yoghurt drinks looks to have passed its peak. • Asian export markets were largely stagnant due to COVID-19. 18
Slide 19: Cash flow development
FINANCIAL RESULTS FY 2021/2022 CASH FLOW DEVELOPMENT • Strong cash flow from business In million euros • Unfavorable effect in working capital due to higher inventory • Capital expenditures in line with previous years • Dividend payout according to policy 19
Slide 20: Dividend distribution year overview (per share)
FINANCIAL RESULTS FY 2021/2022 DIVIDEND DISTRIBUTION 5 YEAR OVERVIEW (per share) FY 2017/2018 FY 2018/2019 FY 2019/2020 FY 2020/2021 FY 2021/2022 5 year total Net result EUR 6.78 EUR 7.04 EUR 9.09 EUR 11.00 EUR 11.83 EUR 45.74 Interim dividend - - - EUR 4.55 - EUR 4.55 Final dividend EUR 3.39 EUR 3.
Slide 21: Outlook 2022/2023
OUTLOOK 2022/2023 High degree of uncertainty • Uncertainty related to COVID-19 • Uncertainty related to the situation in Ukraine • Uncertainty related to the global economy (e.g. GDP and inflation) • Holland Colours does not make forward looking statements 21
Slide 22: Financial Statements FY 2021/2022
3. FINANCIAL STATEMENTS FY 2021/2022 a. Advisory vote regarding the remuneration report financial year 2021/2022 (advisory vote) b. Adoption of the financial statements 2021/2022 (voting item) 22
Slide 23: Report of the auditor PwC: our key messages
Report of the auditor PwC: our key messages Audit process Audit ✓ Process performed in accordance with process Outcome of the audit agreed audit plan ✓ The financial statements provide a true ✓ Intensive process due to shorter and fair view timeline, new requirements and Management Outcome of the In
Slide 24: Reserves and dividend policy
4. RESERVES AND DIVIDEND POLICY 24
Slide 25: 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% 25
Slide 26: Adoption of the appropriation of the profit
5. ADOPTION OF THE APPROPRIATION OF THE PROFIT (voting item) 26
Slide 27: Dividend proposal FY 2021/2022
DIVIDEND PROPOSAL FY 2021/2022 • It is proposed to distribute EUR 5.91 as a final dividend for the FY 2021/2022 • Final dividend payable July 22, 2022 27
Slide 28: Discharge of the Board of Management
6. DISCHARGE OF THE BOARD OF MANAGEMENT (voting item) 28
Slide 29: Discharge of the Supervisory Board
7. DISCHARGE OF THE SUPERVISORY BOARD (voting item) 29
Slide 30: Board of Management
8. BOARD OF MANAGEMENT a. Reappointment of Mr. C.W.H. Vinke as Statutory Director (voting item) b. Reappointment of Mr. E.M.S. van Hamersveld as Statutory Director (voting item) 30
Slide 31: Supervisory Board
9. SUPERVISORY BOARD Reappointment of Mr. G.H. de Heer as member of the Supervisory Board (voting item) 31
Slide 32: Remuneration
10. REMUNERATION a. Adoption of the remuneration policy of the Board of Management (voting item) b. Adoption of the remuneration policy of the Supervisory Board (voting item) 32
Slide 33: Adoption of the remuneration policy of the Board of Management
ADOPTION OF THE REMUNERATION POLICY OF THE BOARD OF MANAGEMENT (voting item) • The company will introduce a Long-Term Incentive (LTI) Plan for the Board of Management in financial year 2022/2023. The aim is to drive long term value creation as set out in the Dutch Corporate Governance Code. • The me
Slide 34: Adoption of the remuneration policy of the Board of Management
ADOPTION OF THE REMUNERATION POLICY OF THE BOARD OF MANAGEMENT (voting item) • The Supervisory Board has set long term environmental and sustainability goals, like CO2 reduction and innovation. The progress made towards achieving these goals will be assessed annually and will influence the payment o
Slide 35: Adoption of the remuneration policy of the Supervisory Board
ADOPTION OF THE REMUNERATION POLICY OF THE SUPERVISORY BOARD (voting item) • The remuneration policy has been updated (for reference see website HCA) • The remuneration of the Supervisory Board had not been updated since 2013 • A remuneration benchmark was done to establish whether the remuneration
Slide 36: Adoption of the remuneration policy of the Supervisory Board
ADOPTION OF THE REMUNERATION POLICY OF THE SUPERVISORY BOARD (voting item) • Based on the benchmark the proposal is to increase the remuneration of the Supervisory Board Members and the Chairman to: Fixed Fee 2022 / 2023 2021 / 2022 Per Financial Year Chair 45,000 38,000 Member 32,000 26,000 36
Slide 37: Update on strategy of Holland Colours Group
11. UPDATE ON STRATEGY OF HOLLAND COLOURS GROUP 37
Slide 38: Our strategic goals
OUR STRATEGIC GOALS 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 in Coatings & Sealants, primarily in EMEIA 38
Slide 39: 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 39 39
Slide 40: Strategic roadmap – Growing Together 2023 (external)
STRATEGIC ROADMAP – GROWING TOGETHER 2023 EXTERNAL • Continue organic top-line growth • Implement sustainability vision • Objectives • We invest at least 2% per year of our personnel expenses in responsible care for our employees • By 2030, we will have reduced the CO2 impact of our operational acti
Slide 41: Strategic roadmap: Growing Together 2023 (internal)
STRATEGIC ROADMAP: GROWING TOGETHER 2023 INTERNAL • Implement and transition Business Processes and IT • Align and optimize activities across integral customer-oriented processes • Renew supporting IT and data solutions • Develop organizational skills and capabilities • Increasing investments in sys
Slide 42: Authorization to the Board of Management
12. 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) 42
Slide 43: Any other business
13. ANY OTHER BUSINESS 43
Slide 44: Close
14. CLOSE 44
Slide 45: Our core values
OUR CORE VALUES TEAMWORK PRO-ACTIVENESS ACCOUNTABILITY COMPETENCE RESPONSIBILITY 45 45
Slide 46: Thank you for your attention
THANK YOU FOR YOUR ATTENTION 46