Recticel Sa · EURONEXT:RECT

Recticel Sa — H1 2013 Earnings Presentation

37 slides from Recticel Sa's earnings presentation, Aug 30, 2013

  1. Slide 1: 1st Half-Year 2013 Results - Financial Analysts' Meeting

    RECTICEL 1st HALF-YEAR 2013 RESULTS Financial Analysts’ Meeting Brussels, 30 August 2013 Olivier Chapelle – CEO Recticel Jean-Pierre Mellen – CFO Recticel Michel De Smedt – IRO Recticel 30 Aug 2013 Recticel 1H/2013 Results 1

  2. Slide 2: Agenda

    1 Highlights 2 1H/2013 Consolidated Results 3 Financial Situation 4 Miscellaneous 5 Outlook FY2013 6 1H/2013 Comments per Business Line 7 Annexes 30 Aug 2013 Recticel 1H/2013 Results 2

  3. Slide 3: European markets & non-recurrings impacted Recticel during 1H/2013

    European markets & non-recurrings impacted Recticel during 1H/2013 ► Sales decreased by 7.0% from 680.2m€ to 632.6m€, but trend improved during Q2 at -4.4% and after Q1 at -9.5% ► REBITDA of 33.3m€ (-31.3%) as a result of lower sales and unfavourable mix ► EBITDA of 20.2m€ (-54.6%) impacted by annou

  4. Slide 4: Difficult European context during H1

    Difficult European context during H1 Low industrial activity and consumer spending, while inflation persists : ► Markets have suffered :  EU27 automotive market (new car registration) • 1H13 is the worst semester since 1996  Slow Moving Consumer Goods as beds, furniture, TV’s, Computer, … •  not

  5. Slide 5: We stick to our Strategic Plan execution (1)

    We stick to our Strategic Plan execution (1) Growth Initiatives : Investments & Innovation ► Growth & Geographic Diversification  Insulation - Bourges plant now operating on 1 full shift  Bedding – 30 Znoooz Points of Sales in Belgium (Geltex exclusivity)  Flexible Foams – Turkey, India and China

  6. Slide 6: We stick to our Strategic Plan execution (2)

    We stick to our Strategic Plan execution (2) Rationalisation and Simplification: Restructuring plan 2013 is ongoing and on track:  Interiors : Rheinbreitbach (DE)  Flexible Foams : Pendle (UK)  Bedding : Wattenscheid (DE) 30 Aug 2013 Recticel 1H/2013 Results 6

  7. Slide 7: We stick to our Strategic Plan execution (3)

    We stick to our Strategic Plan execution (3) Organisation ► New strategy and reorganisation in Bedding ► Shared Service Centre for transactional operations further progressing ► Key change in Senior Management Team  Jean-Pierre De Kesel (Be – 57) Chief Sustainability Officer 30 Aug 2013 Recticel 1H

  8. Slide 8: Agenda

    1 Highlights 2 1H/2013 Consolidated Results 3 Financial Situation 4 Miscellaneous 5 Outlook FY2013 6 1H/2013 Comments per Business Line 7 Annexes 30 Aug 2013 Recticel 1H/2013 Results 8

  9. Slide 9: Net sales down, but trend improved during 2Q/13

    Net sales down, but trend improved during 2Q/13 ► Net Sales: From 680.2m€ to 632.6m€ (-7.0%)  1Q/13: from 351.1m€ to 317.9m€ (-9.5%)  2Q/13: from 329.1m€ to 314.8m€ (-4.4%) ► 94% of Group sales in European region ► 2/3rd of the sales reduction due to Automotive (31.6m€ out of 47.6m€) ► Impact curr

  10. Slide 10: Except for Automotive, good relative top-line resilience in all segments

    Except for Automotive, good relative top-line resilience in all segments ► Building Insulation sales (+1.4%) grew again in 2Q13 after negative 1Q13  Kingspan -3%, Rockwool -4% ► Bedding sales (-4.4%) resisted well in depressed European bedding market (exception of Germany only slightly negative) 

  11. Slide 11: REBITDA impacted by lower sales and mix (1)

    REBITDA impacted by lower sales and mix (1) ► REBITDA : from 48.9m€ (restated, 48.5m€ as published) to 33.3m€ (-31.9%)  In a challenging environment, resulting in increased competitive pressure, the reduced overall recurrent profitability is also explained by: • the lower sales levels • an unfavour

  12. Slide 12: REBITDA impacted by lower sales and mix (2)

    REBITDA impacted by lower sales and mix (2)  Insulation REBITDA impacted by Sterling Pound depreciation, fixed and start-up costs in Bourges and by margin pressure due to increased competition.  Bedding REBITDA slightly up despite sales reduction, thanks to the Geltex introduction supporting the B

  13. Slide 13: REBIT evolves according to REBITDA

    REBIT evolves according to REBITDA From 29.3m€ (restated) (28.8m€ as published) to 13.4m€ (-54.1%) 30 Aug 2013 Recticel 1H/2013 Results 13

  14. Slide 14: Non-recurring costs increased to -14.3m€

    Non-recurring costs increased to -14.3m€ (-4.9m€ in 1H/12)  Downsizing of activities in Rheinbreitbach (Germany) (Automotive Interiors); reduction of 150 jobs (on total of 178)  Closing of Flexible Foams converting unit in Nelson (UK) (Flexible Foams); reduction of 95 jobs  Streamlining of Beddin

  15. Slide 15: EBITDA & EBIT impacted by non-recurring

    EBITDA & EBIT impacted by non-recurring ► EBITDA: from 44.5m€ (restated) (44.1m€ as published) to 20.2m€ (-54.6%) ► EBIT: from 24.4m€ (restated) (24.0m€ as published) to -0.8m€ Includes also an impairment of -1.2m€ relating to equipment in Automotive Interiors (Germany). 30 Aug 2013 Recticel 1H/2013

  16. Slide 16: Financial result improved and taxes logically decreased

    Financial result improved and taxes logically decreased ► Financial result: from -7.4m€ (restated) (-7.1m€ as published) to -6.5m€ (- 12.1%)  Net interest charges decreased to -5.4m€ (-6.0m€ in 1H/2012). This decrease is primarily attributable to lower funding rates, whereas the average net interes

  17. Slide 17: Agenda

    1 Highlights 2 1H/2013 Consolidated Results 3 Financial Situation 4 Miscellaneous 5 Outlook FY2013 6 1H/2013 Comments per Business Line 7 Annexes 30 Aug 2013 Recticel 1H/2013 Results 17

  18. Slide 18: Trade working capital has been reduced

    Trade working capital has been reduced 2012 2013 in m€ TARGET Avg 1H/12 Avg 1H/13 2013 m€ 100.7 98.1 Flexible foams % 16.2% 16.5% 16.0% Interiors + m€ 15.5 14.5 Exteriors % 9.8% 10.9% 10.0% m€ 37.8 33.5 Insulation % 16.3% 13.9% 14.0% m€ 38.1 37.0 Bedding % 12.6% 11.8% 12.0% m€ 19.3 14.2 Proseat % 14

  19. Slide 19: Net debt is stable and net financial debt has been reduced

    Net debt is stable and net financial debt has been reduced ► On 30/06/13 the Group’s net financial debt amounted to 156.1m€, excluding the drawn amounts under off-balance non-recourse factoring/forfeiting programs of 73.5m€ compared to respectively 179.0m€ and 49.4m€ on 30/06/12 and to 172.6m€ and 4

  20. Slide 20: Equity has been reduced, impacting the gearing

    Equity has been reduced, impacting the gearing ► The equity on 31/12/12 has been restated in compliance with the new IAS 19 standard, with an impact of -19.5m€ from 260.6m€ to 241.1m€. On 30/06/2013 the equity amounts to 217.3m€. ► Hence, the ‘net debt to equity’ ratio increased to 71.8%, compared t

  21. Slide 21: Agenda

    1 Highlights 2 1H/2013 Consolidated Results 3 Financial Situation 4 Miscellaneous 5 Outlook FY2013 6 1H/2013 Comments per Business Line 7 Annexes 30 Aug 2013 Recticel 1H/2013 Results 21

  22. Slide 22: Miscellaneous

    Miscellaneous ► Contingent assets & liabilities  Inspection by the Directorate for Competition of the EC • Although the Commission has given no formal indications regarding its findings, it is progressing with its investigation. At this stage, the Group is not in a position to make a reliable estim

  23. Slide 23: Agenda

    1 Highlights 2 1H/2013 Consolidated Results 3 Financial Situation 4 Miscellaneous 5 Outlook FY2013 6 1H/2013 Comments per Business Line 7 Annexes 30 Aug 2013 Recticel 1H/2013 Results 23

  24. Slide 24: Outlook

    Outlook Given the persisting volatility in the performance of the markets in which Recticel is active, the Group is not in a position to assess growth potential for 2013. The Group maintains its focus on the execution of the strategic plan 2010- 2015, which includes (i) a strict prioritization of th

  25. Slide 25: Agenda

    1 Highlights 2 1H/2013 Consolidated Results 3 Financial Situation 4 Miscellaneous 5 Outlook FY2013 6 1H/2013 Comments per Business Line 7 Annexes 30 Aug 2013 Recticel 1H/2013 Results 25

  26. Slide 26: Flexible Foams sales

    ► Key events 1H/2013  Sales from 303.5m€ to 297.3m€ (-2.1%) • 1Q/2013: from 157.4m€ to 151.5m€ (-3.8%) • 2Q/2013: from 146.1m€ to 145.8m€ (-0.2%) Sales Flexible Foams (2010-2013) ► Comfort (1H/2013: 189.4m€ ; -1.4%) 160  very weak market environment 155  reported only a slight regression in sales

  27. Slide 27: Bedding sales

    ► Key events 1H/2013  Sales from 133.6m€ to 140.0m€ (+4.8%)(on like-for-like basis: -4.4%) • 1Q/2013: from 73.6m€ to 75.5m€ (+2.5%) (on like-for-like basis: -5.9%) • 2Q/2013: from 60.0m€ to 64.5m€ +7.6%) (on like-for-like basis: -2.6%) Sales Bedding (2010-2013) ► As from 2013 some intercompany acti

  28. Slide 28: Insulation sales

    ► Key events 1H/2013  Sales from 109.5m€ to 109.5m€ (+0.0%) • 1Q/2013: from 53.0m€ to 49.9m€ (-5.8%) • 2Q/2013: from 56.5m€ to 59.6m€ (+5.5%) New plant Bourges Sales Insulation (2010-2013) ► Building Insulation (1H/2013: 102.6m€; +1.4%)  softer residential construction and renovation activity in 7

  29. Slide 29: Automotive sales

    ► Key events 1H/2013  Sales from 161.3m€ to 129.7m€ (-19.6%) • 1Q/2013: from 82.4m€ to 63.5m€ (-23.0%) • 2Q/2013: from 78.9m€ to 66.2m€ (-16.1%) ► Interiors (1H/2013: 57.8m€; -27.8%) Sales Automotive (2010-2013) 100  Decrease due to a weak demand but also as a result of 90 the anticipated phase-ou

  30. Slide 30: Agenda

    1 Highlights 2 1H/2013 Consolidated Results 3 Financial Situation 4 Miscellaneous 5 Outlook FY2013 6 1H/2013 Comments per Business Line 7 Annexes 30 Aug 2013 Recticel 1H/2013 Results 30

  31. Slide 31: ANNEXES – Consolidated Income Statement

    ANNEXES – Consolidated Income Statement 30 Aug 2013 Recticel 1H/2013 Results 31

  32. Slide 32: ANNEXES – Consolidated Comprehensive Income

    ANNEXES – Consolidated Comprehensive Income 30 Aug 2013 Recticel 1H/2013 Results 32

  33. Slide 33: ANNEXES – Consolidated Balance Sheet

    ANNEXES – Consolidated Balance Sheet 30 Aug 2013 Recticel 1H/2013 Results 33

  34. Slide 34: ANNEXES – Consolidated Statement of Cash Flow

    ANNEXES – Consolidated Statement of Cash Flow 30 Aug 2013 Recticel 1H/2013 Results 34

  35. Slide 35: ANNEXES – Statement of Changes in Equity

    ANNEXES – Statement of Changes in Equity 30 Aug 2013 Recticel 1H/2013 Results 35

  36. Slide 36: ANNEXES – Data per share

    ANNEXES – Data per share 30 Aug 2013 Recticel 1H/2013 Results 36

  37. Slide 37: Contacts

    CONTACTS Investor Relations Michel De Smedt Press Jan De Moor Recticel International Headquarters Email: [email protected] Email: [email protected] 2, avenue des Olympiades/Olympiadenlaan, 2 Tel: +32 (0)2 775 18 09 Tel: +32 (0)2 775 18 95 B-1140 Brussels Mob: +2 (0) 479 91 11 38 Mob:

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