Tessenderlo Group N.v. · EURONEXT:TESB

Tessenderlo — Merger or Acquisition (June 2011)

15 slides from Tessenderlo's merger presentation, Jun 14, 2011

  1. Slide 1: Tessenderlo Group exits commodities and transforms into a global specialty group

    Tessenderlo Group exits commodities and transforms into a global specialty group Conference call for investors and analysts June 14th, 2011

  2. Slide 2: Forward-looking statements disclaimer

    This document may contain forward-looking statements and information. Tessenderlo Group neither intends to, nor assumes any obligation to, update or revise these forward-looking statements in light of developments which differ from those anticipated. Tessenderlo Group does not accept any liability f

  3. Slide 3: Tessenderlo Group exits commodities and transforms itself into a global specialty group

    Tessenderlo Group exits commodities and transforms itself into a global specialty group • Agreement to sell to Kerling (Ineos ChlorVinyls) the group’s PVC, Chlor-Alkali and part of Organic Chlorine Derivatives businesses confirms exit from commodities, totally in line with group strategy • Right tra

  4. Slide 4: Tessenderlo Group exits commodities

    Tessenderlo Group exits commodities Kerley Kerley Gelatin & Akiolis Gelatin & Akiolis Plastic Pipe Systems and Profiles Plastic Pipe Systems and Profiles PVC/Chlor-Alkali Inorganics Inorganics Other Businesses Other Businesses Fulfilling strategic objective to become a more focused specialty group 4

  5. Slide 5: Transaction highlights

    Transaction highlights Sale of Tessenderlo Group’s PVC, Chlor-Alkali and part of Organic Summary Chlorine Derivatives activities to the European leader Kerling (through Ineos ChlorVinyls) Tessenderlo Group transforms into a global specialty group All cash share deal for 110 million EUR on cash-fr

  6. Slide 6: Transaction scope

    Transaction scope Tessenderlo (Belgium) Chlorine VCM Caustic Soda OCD Caustic Potash Mazingarbe (France) PVC Beek (Netherlands) PVC Maastricht (Netherlands) OCD Businesses employ about 850 people 6 Tessenderlo Group exits commodities and transforms into a global specialty group

  7. Slide 7: Transaction criteria met

    Transaction criteria met Western European PVC Competitive Right home for these businesses Positioning Clear leader with lowest cost position Specialty 3 Well invested assets with room to grow Excellent geographic complementarity 2.5 2 Right deal for the group 1.5 ‘Marginal Clean exit from group’

  8. Slide 8: Commodity businesses diluted group returns

    Commodity businesses diluted group returns Financial highlights based on average 2007-2010 results Return on Revenue REBITDA Capex Capital (million EUR) margin (% of Total) Employed Inorganics 428 9% 7% ++ PVC / Chlor-Alkali 502 7% 20% 4% Gelatin and Akiolis 357 17% 28% ++ Tessenderlo Kerley 185 18%

  9. Slide 9: Capital intensity requires significant cash

    Capital intensity requires significant cash Normalised Free Cash Flows (1) of businesses in scope Cumulative Capex 10-year Cumulative Free Cash Flows: c.(37 million EUR) 10-year Cumulative Capex: c.315 million EUR 5-year Forecast Free Cash Flows: c.21 million EUR 10-year Forecast Capex: c.280 millio

  10. Slide 10: Group financial profile immediately enhanced

    Group financial profile immediately enhanced Pro Forma 2010 Group Financials1 Million EUR Reported 2010 Transaction Impact Pro forma 2010 Revenue 2,427.3 (460.5) 1,966.9 REBITDA 175.6 (13.9) 161.7 REBITDA margin 7.2% 1.0% 8.2% REBIT 58.9 14.1 73.0 REBIT margin 2.4% 1.3% 3.7% Notional Net Debt 2 283.

  11. Slide 11: Tessenderlo Tomorrow

    Tessenderlo Tomorrow A focused portfolio of specialty businesses providing solutions for global megatrends Food & Agriculture Valorising Bio-Residuals Water Management More service oriented Stronger emphasis on innovation Fully aligned with global megatrends Stronger link with sustainability Diversi

  12. Slide 12: Efficient capital reallocation to higher growth, higher margin specialty businesses

    Efficient capital reallocation to higher growth, higher margin specialty businesses Akiolis: full ownership of FISO Kerley: Expanding core sulfur activities in US with 2 new ATS plants Gelatin: expansion in Argentina, constructing first plant in Brazil, second joint venture in China 12 Tessenderlo G

  13. Slide 13: A specialty company platform ready to grow

    A specialty company platform ready to grow Exited commodities Strategy Investing in Kerley, Gelatin and Akiolis Execution and Water Management Expanding presence in Brazil, China & USA A global  Faster growth of revenue and REBITDA Operating Results Higher margins and return on capital specialt

  14. Slide 14: Q&A

    Q&A

  15. Slide 15: For more information about Tessenderlo Group

    For more information about Tessenderlo Group go to www.tessenderlo.com/investors/ June 14th, 2011

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