Imcd N.v. · EURONEXT:IMCD
Imcd — FY2019 Earnings Presentation
22 slides from Imcd's earnings presentation, Feb 27, 2020
Slide 1: Conference Call Full Year 2019 results
Page 1 CONFERENCE CALL Full Year 2019 results IMCD N.V. 27 February 2020
Slide 2: Disclaimer
Page 2 Disclaimer This presentation may contain forward looking statements. These statements are based on current expectations, estimates and projections of IMCD’s management and information currently available to the company. IMCD cautions that such statements contain elements of risk and uncertain
Slide 3: Presenting team
Page 3 Presenting team Piet van der Slikke, CEO Hans Kooijmans, CFO • Led the formation of • Joined IMCD in 1996 IMCD since 1995 • Co-led formation of IMCD • Designed and executed IMCD’s strategy • 23 years of industry experience • 24 years of industry experience
Slide 4: Agenda
Page 4 Agenda • Company profile • Highlights 2019 • Financials 2019 • Outlook • Q&A
Slide 5: Company profile
Company profile Page 5 IMCD is a market-leader in the sales, marketing and distribution of speciality chemicals and food ingredients. Its result-driven professionals provide market-focused solutions to suppliers and customers across EMEA, Asia-Pacific and Americas, offering a range of comprehensive
Slide 6: Agenda
Page 6 Agenda • Company profile • Highlights 2019 • Financials 2019 • Outlook • Q&A
Slide 7: Highlights 2019
Highlights 2019 Page 7 Gross profit growth of 12% to EUR 599 million (+11% on a constant Gross profit currency basis) Operating Operating EBITA increase of 11% to EUR 225 million (+10% on a constant EBITA currency basis) Net result before amortisation and non-recurring items of EUR 156 million Net r
Slide 8: Highlights 2019 - M&A
Highlights 2019 Page 8 Acquisition of food ingredients business of Matrix (Singapore & Malaysia) on M&A 30 August 2019. Full year revenue about EUR 4 million. Acquisition of Monachem and Addpol on 18 September 2019, expanding IMCD’s position in India with Advanced Materials. Full year revenue about
Slide 9: Agenda
Agenda Page 9 • Company profile • Highlights 2019 • Financials 2019 • Outlook • Q&A
Slide 10: Income statement
Financials 2019 Page 10 Income statement fx adj. EUR million 2019 2018 change change change Revenue 2,690 2,379 311 13% 12% Gross profit 599 536 63 12% 11% Gross profit in % of revenue 22.3% 22.5% (0.2%) Operating EBITDA 247 208 39 19% 18% Operating EBITDA in % of revenue 9.2% 8.7% Operating EBITA¹
Slide 11: Income statement by segment
Financials 2019 Page 11 Income statement Asia Holding EUR million EMEA Americas Pacific companies Total Gross profit 2019 325 194 80 599 2018 308 158 70 536 ∆ reported 6% 23% 14% 12% ∆ constant currency 6% 18% 13% 11% Gross profit in % of revenue 2019 24.7% 19.7% 20.5% 22.3% 2018 24.8% 19.7% 20.9% 2
Slide 12: Income statement (continued)
Financials 2019 Page 12 Income statement (continued) fx adj. EUR million 2019 2018 change change change Operating EBITA 225 202 23 11% 10% Recurring net finance costs (27) (19) (8) Recurring income tax expenses (42) (44) 2 Net result before amortisation and non-recurring items 156 140 16 12% 11% Amo
Slide 13: Net finance costs
Financials 2019 Page 13 Net finance costs EUR million 2019 2018 change Interest costs financing structure (19.7) (17.3) (2.4) Interest exp. Lease liabilities (IFRS 16) (2.7) (2.7) Value changes in interest hedge contracts (0.1) 0.1 Amortisation of finance costs (0.6) (0.8) 0.2 Changes deferred consi
Slide 14: Income tax expenses
Financials 2019 Page 14 Income tax expenses EUR million 2019 2018 change Regular income tax expenses (43.0) (44.9) 1.9 Adjustments for prior years 0.2 (0.2) 0.4 Reduction in tax rates 0.4 0.1 0.3 (De-) recognition tax losses 0.6 1.4 (0.8) Tax credits related to amortisation 2.6 4.5 (1.9) Non-recurri
Slide 15: Cash EPS - proposed dividend
Financials 2019 Page 15 Cash EPS - proposed dividend EUR million 2019 2018 change change Result for the year 108 100 8 8% Amortisation of intangible assets 44 37 Tax credits related to amortisation (3) (5) Cash earnings 149 133 17 13% Weighted average number of share (x milion) 52.5 52.4 Cash earnin
Slide 16: Balance Sheet
Financials 2019 Page 16 Balance Sheet EUR million 31 December 2019 31 December 2018 change Property, plant and equipment 29 25 4 Right-of-use assets 61 61 Intangible assets 1,141 1,040 102 Other fin. assets/def tax assets 40 47 (7) Working capital 436 400 36 Provisions/employee benefits (28) (31) 2
Slide 17: Working capital
Financials 2019 Page 17 Working capital EUR million 31 December 2019 31 December 2018 change Inventories 377 354 23 in days of revenue * 49 49 0 Trade and other receivables 435 398 37 in days of revenue * 56 55 1 Trade payables (280) (264) (16) in days of revenue * (36) (36) 0 Other payables (96) (8
Slide 18: Net debt and covenants
Financials 2019 Page 18 Net debt EUR million 2019 2018 change Loans and borrowings long term 566 481 84 Loans and borrowings short term 274 215 59 Cash and cash equivalents (104) (85) (19) Net Debt 735 611 125 Net Debt / Operating EBITDA ratio 1 2.8 2.8 0.0 December Bank December Covenants 2019 cond
Slide 19: Free cash flow
Financials 2019 Page 19 Free cash flow EUR million 2019 2018 change Operating EBITA 225 202 23 Depreciation 22 5 17 Operating EBITDA 247 208 39 Lease payments (22) (22) Share based payments 3 2 1 Adjusted Operating EBITDA 228 210 18 Capex (5) (4) (1) ∆ Working capital1 (1) (39) 39 Free cash flow 222
Slide 20: Agenda
Agenda Page 20 • Company profile • Highlights 2019 • Financials 2019 • Outlook • Q&A
Slide 21: Outlook
Page 21 Outlook IMCD operates in different, often fragmented market segments in multiple geographic regions, connecting many customers and suppliers across a very diverse product range. In general, results are impacted by macroeconomic conditions and developments in specific industries. Furthermore,
Slide 22: Agenda
Agenda Page 22 • Company profile • Highlights 2019 • Financials 2019 • Outlook • Q&A