Imcd N.v. · EURONEXT:IMCD
Imcd — FY2017 Earnings Presentation
22 slides from Imcd's earnings presentation, Mar 2, 2018
Slide 1: Conference Call Full Year 2017 Results
CONFERENCE CALL FULL YEAR 2017 RESULTS IMCD N.V. 2 March 2018
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
Presenting team Page 3 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 • 21 years of industry experience • 22 years of industry experience
Slide 4: Agenda
Agenda Page 4 • Company profile • Highlights 2017 • Financials 2017 • 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
Agenda Page 6 • Company profile • Highlights 2017 • Financials 2017 • Outlook • Q&A
Slide 7: Highlights 2017
Highlights Page 7 Highlights 2017 Gross profit growth of 12% to EUR 428.7 million (+13% on a constant Gross profit currency basis) Operating Operating EBITA increase of 9% to EUR 161.7 million (+11% on a constant EBITA currency basis) Net result before amortisation and non-recurring items of EUR 110
Slide 8: Highlights 2017 (continued)
Highlights Page 8 Highlights 2017 (continued) Acquisition of Neuvendis, completed on 23 June 2017, expanding the Neuvendis Italian operations in the speciality chemicals market Acquisition of the speciality distribution business of Bossco Industries (July Bossco 2017) will further strengthen IMCD US
Slide 9: Agenda
Agenda Page 9 • Company profile • Highlights 2017 • Financials 2017 • Outlook • Q&A
Slide 10: Income statement
Financials 2017 Income statement fx adj. EUR million 2017 2016 change chang change. Revenue 1,907 1,715 193 11% 12% Gross profit 429 382 47 12% 13% Gross profit in % of revenue 22.5% 22.3% 0.2% Operating EBITDA 166 152 Operating EBITDA in % of revenue 8.7% 8.9% Operating EBITA" 162 148 14 9% 11% Ope
Slide 11: Income statement by segment
Financials 2017 Page 11 Income statement Holding EUR million EMEA Asia Pacific Americas companies Total Revenue 2017 1,142 315 451 1,907 2016 1,054 317 344 1,715 ∆ reported 8% (1%) 31% 11% ∆ constant currency 9% 0% 31% 12% Gross profit 2017 274 65 89 429 2016 249 64 69 382 ∆ constant currency 11% 4%
Slide 12: Income statement (continued)
Financials 2017 Page 12 Income statement (continued) fx adj. EUR million 2017 2016 change change change Operating EBITA 162 148 14 9% 11% Amortisation of intangible assets (34) (32) (2) 7% Impairment loss - (6) 6 Non recurring items (2) (2) (0) 9% Net finance costs (15) (13) (2) 18% Income tax expen
Slide 13: Net finance costs
Financials 2017 Page 13 Net finance costs EUR million 2017 2016 change Interest costs financing structure (11.3) (10.4) (0.9) Value changes in interest hedge contracts 0.4 0.3 0.1 Amortisation of finance costs (1.6) (1.6) (0.0) Interest costs re employee benefits (0.2) (0.1) (0.1) Currency exchange
Slide 14: Income tax expenses
Financials 2017 Page 14 Income tax expenses EUR million 2017 2016 change Regular income tax expenses (36.8) (33.9) (2.9) Adjustments for prior years (2.0) 0.0 (2.0) Reduction in tax rates 1.9 0.0 1.9 (De-) recognition tax losses 0.6 6.2 (5.6) Tax credits related to amortisation 3.6 5.9 (2.2) Income
Slide 15: Cash EPS - proposed dividend
Financials 2017 Page 15 Cash EPS - proposed dividend EUR million 2017 2016 change change Result for the year 77 73 4 6% Amortisation of intangible assets 34 38 Tax credits related to amortisation (4) (6) Cash earnings 108 105 3 3% Weighted average number of share (x milion) 52.4 52.5 Cash earnings p
Slide 16: Balance Sheet
Financials 2017 Page 16 Balance Sheet EUR million 31 December 2017 31 December 2016 change Property, plant and equipment 19 21 (2) Intangible assets 949 908 41 Other fin. assets/def tax assets 28 30 (2) Working capital 314 248 66 Provisions/employee benefits (21) (11) (10) Deferred tax liabilities (
Slide 17: Working capital
Financials 2017 Page 17 Working capital EUR million 31 December 2017 31 December 2016 change Inventories 266 204 62 in days of revenue * 47 43 4 Trade and other receivables 332 265 67 in days of revenue * 58 56 2 Trade payables (213) (171) (43) in days of revenue * (37) (36) (1) Other payables (70)
Slide 18: Net debt and Covenants
Financials 2017 Page 18 Net debt EUR million 2017 2016 change Loans and borrowings long term 367.5 382.7 (15.2) Loans and borrowings short term 183.9 71.4 112.5 Cash and cash equivalents (61.4) (56.5) (4.9) Net Debt 490.0 397.6 92.4 1 Net Debt / Operating EBITDA ratio 2.8 2.6 0.2 Covenants December
Slide 19: Free cash flow
Financials 2017 Page 19 Free cash flow EUR million 2017 2016 change Operating EBITA 161.7 147.8 13.9 Depreciation 4.3 4.3 0.0 Operating EBITDA 166.0 152.1 14.0 Share based payments 2.5 1.4 1.1 Capex (3.1) (5.2) 2.1 1 ∆ Working capital (4.1) (7.9) 3.8 Free cash flow 161.3 140.4 21.0 2 Cash conversion
Slide 20: Agenda
Agenda Page 20 • Company profile • Highlights 2017 • Financials 2017 • 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 2017 • Financials 2017 • Outlook • Q&A