TKH Group N.V. Cert · EURONEXT:TWEKA
TKH Group N.V. Cert — TKH Group — H1 2012 Earnings Presentation
35 slides from TKH Group N.V. Cert's earnings presentation, Aug 22, 2012
Slide 1: Half year results 2012
Half year results 2012 TKH Group NV 1 | First half results 2012 | 22-08-2012
Slide 2: Highlights 1st half year 2012
HIGHLIGHTS 1ST HALF YEAR 2012 Realization Realization Realization Realization H1 2012 H1 2011 H2 2011 2011 Turnover € 526.2 mln € 549.3 mln € 511.8 mln € 1,061.1 mln Change in turnover - 4.2% + 30.6% + 8.2% + 18.8% Impact raw material prices - 0.8% + 3.1% - 1.3% + 1.4% EBITA before one-off expenses1
Slide 3: Highlights 1st half year 2012
HIGHLIGHTS 1st HALF YEAR 2012 Decrease EBITA H1 2012 with 27.8% – decrease Q2 2012 43.2% Increase operating expenses 33.8% compared to turnover (H1 2011: 29.4%), mainly due to: Costs for capacity for growth € 5 mln, particularly in Building Solutions Acquisition costs Augusta € 4 mln (H1 2011 € 2 ml
Slide 4: Highlights 1st half year 2012: Key figures 2nd quarter
HIGHLIGHTS 1st HALF YEAR 2012 Key figures 2nd quarter Q2 2012 Q2 2011 Verschil Turnover € 267.3 mln € 270.7 mln - 1.3% EBITA before one-off expenses1) € 17.2 mln € 25.3 mln - 31.9% EBITA € 13.2 mln € 23.3 mln - 43.2% Net profit before amortization and one-off € 9.8 mln € 16.8 mln - 41.4% income and
Slide 5: Telecom Solutions
TELECOM SOLUTIONS (in million € unless otherwise stated) 1st half 1st half ∆ 2012 2011 in % Turnover 81.6 78.9 + 3.4 EBITA 7.5 6.5 + 15.9 ROS 9.2% 8.2% 5 | First half results 2012 | 22-08-2012
Slide 6: Highlights Telecom Solutions: indoor telecom systems
HIGHLIGHTS 1ST HALF YEAR 2012 TELECOM SOLUTIONS Segment indoor telecom systems: turnover +0.3% Home networking systems, broadband connectivity, IPTV-software solutions Strong reluctance in consumer spending level on ICT, decrease of 13% Priority of investments in peripherals for upgrading broadband
Slide 7: Highlights Telecom Solutions: fibre networks
HIGHLIGHTS 1ST HALF YEAR 2012 TELECOM SOLUTIONS Segment fibre networks systems: turnover +16.7% Optical fibre (cable), connectivity systems and components, active equipment Worldwide increase in investment level in fibre optic networks Volume growth global optical fibre market of 14% – growth in Wes
Slide 8: Building Solutions
BUILDING SOLUTIONS (in million € unless otherwise stated) 1st half 1st half ∆ 2012 2011 in % Turnover 201.0 193.3 + 4.0 EBITA 3.7 9.2 - 59.5 ROS 1.9% 4.8% 8 | First half results 2012 | 22-08-2012
Slide 9: Highlights Building Solutions: building technologies
HIGHLIGHTS 1ST HALF YEAR 2012 BUILDING SOLUTIONS Segment building technologies: turnover +15.7% Energy-saving lighting and light switch systems, energy management systems, care systems, structured cabling systems Mainly growth in care sector Good growth contribution by Mextal (acquisition per July 2
Slide 10: Highlights Building Solutions: security systems
HIGHLIGHTS 1ST HALF YEAR 2012 BUILDING SOLUTIONS Segment security systems: turnover +17.2% Systems for CCTV, video/audio-analysis and detection, intercom, access controls and registration, central control room integration Acquisition Aasset (€ 35 mln) and Augusta (€ 60 mln) boost growth strategy sec
Slide 11: Augusta profile
AUGUSTA PROFILE Augusta is an integrated technology company with focus on niche markets of digital image processing and optical sensors Vision Other Technologies business units Other Group In € million H1 2011 H1 2012 H1 2011 H1 2012 H1 2011 H1 2012 H1 2011 H1 2012 . Revenues 31.9 35.0 17.3 19.3 0.0
Slide 12: Augusta
AUGUSTA As of 2 July 2012 a majority interest of 59.73% Consolidation as of 2 July 2012: Vision Technologies – 60% Building Solutions (security systems) . Other business units – 40% Industrial Solutions (manufacturing systems) Creation of leading vision technology group with strong focus on vertical
Slide 13: Augusta: examples of vision applications
AUGUSTA EXAMPLES OF VISION APPLICATIONS 13 | First half results 2012 | 22-08-2012
Slide 14: Highlights Building Solutions: connectivity systems
HIGHLIGHTS 1ST HALF YEAR 2012 BUILDING SOLUTIONS Segment connectivity systems: turnover -8.9% Specialty cable, connectivity systems and components for ship building, railways, solar and wind energy as well as installation and energy cable for niche markets Impact raw material prices on turnover: -2.
Slide 15: Industrial Solutions
INDUSTRIAL SOLUTIONS (in million € unless otherwise stated) 1st half 1st half ∆ 2012 2011 in % Turnover 243.7 277.1 - 12.1 EBITA 31.7 37.0 - 14.3 ROS 13.0% 13.4% 15 | First half results 2012 | 22-08-2012
Slide 16: Highlights Industrial Solutions: connectivity systems
HIGHLIGHTS 1ST HALF YEAR 2012 INDUSTRIAL SOLUTIONS Segment connectivity systems: turnover -4.6% Specialty cable (systems) and modules for the medical, robotic, automotive and machine building industry Impact raw material prices on turnover: -1.9% Demand in robotics- and medical industry, and also ma
Slide 17: Highlights Industrial Solutions: manufacturing systems
HIGHLIGHTS 1ST HALF YEAR 2012 INDUSTRIAL SOLUTIONS Segment manufacturing systems: turnover -18.7% Tyre manufacturing systems, can washers, machine control systems and product handling systems Reluctance investments despite recently announced long-term plans for expansion investments – brief revival
Slide 18: Notes to the results 1st half year 2012
NOTES TO THE RESULTS 1st HALF YEAR 2012 18 | First half results 2012 | 22-08-2012
Slide 19: Change in turnover
NOTES TO THE RESULTS 1ST HALF YEAR 2012 Change in turnover (in € million) 19 | First half results 2012 | 22-08-2012
Slide 20: Geographical distribution of turnover
NOTES TO THE RESULTS 1ST HALF YEAR 2012 Geografical distribution of turnover (in %) 20 | First half results 2012 | 22-08-2012
Slide 21: Development turnover per solution
NOTES TO THE RESULTS 1ST HALF YEAR 2012 Development turnover per solution (in million € unless otherwise stated) Turnover 1) Turnover1) Total growth Impact raw Organic H1 2012 H1 2011 material growth prices Telecom Solutions 81.6 78.9 + 3.4% - 0.2% + 3.6% Building Solutions 201.0 193.3 + 4.0% -1.1%
Slide 22: Notes to the results: margin and costs
NOTES TO THE RESULTS 1ST HALF YEAR 2012 Gross margin increases to 40.2% (H1 2011: 37.8%) Margin improvement in all solutions due to better activity mix Lower increase in work in progress and inventory finished goods Positive impact of lower raw material prices Decrease EBITA with 27.8% Operating cos
Slide 23: EBITA per solution
NOTES TO THE RESULTS 1ST HALF YEAR 2012 EBITA per solution (in million € unless otherwise H1 2012 H1 2011 stated) EBITA ROS EBITA ROS % % Telecom Solutions 7.5 9.2 6.5 8.2 Building Solutions 3.7 1.9 9.2 4.8 Industrial Solutions 31.7 13.0 37.0 13.4 Other - 9.4 - 6.4 Total 33.5 6.4 46.3 8.4 23 | First
Slide 24: Amortization and tax burden
NOTES TO THE RESULTS 1ST HALF YEAR 2012 Increase in amortization with € 2.3 million Acquisitions of companies such as Mextal, Flexposure, KLS Netherlands (all in H2 2011) and Aasset (H1 2011) Investments in R&D and software Tax burden increases to 25.8% (H1 2011: 21.8%) Advantage from the applicatio
Slide 25: Change in financial result
NOTES TO THE RESULTS 1ST HALF YEAR 2012 Change in financial result (in € million) Increase financial expenses with € 1.5 million Increase in average net debt in H1 2012 Increase “cost of funds” due to refinance in December 2011 and increased committed facilities in April 2012 in relation to the acqu
Slide 26: Profit and loss summary H1 2012
NOTES TO THE RESULTS 1ST HALF YEAR 2012 (in million €) H1 H1 2012 2011 ∆% Turnover 1) 526.2 549.3 - 4.2 Costs of raw materials / consumables - 314.9 - 341.4 Gross margin 211.3 40.2% 207.9 37.8% + 1.6 Operating costs - 173.8 - 159.6 + 9.0 Recurring EBITA 37.5 7.1% 48.3 8.8% - 22.5 One-off expenses -
Slide 27: Balance sheet per 30 June 2012
BALANCE SHEET PER 30 JUNE 2012 (in million €) 30-06-2012 31-12-2011 30-06-2011 Assets Non-current assets 445.0 398.1 354.2 Inventories 186.6 164.8 168.3 Receivables 192.8 186.8 214.0 Cash 109.8 28.6 19.3 Assets held for sale 7.2 7.2 7.2 Total 941.4 785.5 763.0 Liabilities Equity 352.8 357.9 331.9 Lo
Slide 28: Change in working capital
NOTES TO THE BALANCE SHEET PER 30 JUNE 2012 Change in working capital (in € million) 28 | First half results 2012 | 22-08-2012
Slide 29: Change in net debt
NOTES TO THE BALANCE SHEET PER 30 JUNE 2012 Change in net debt (in € million) Increase in net debt : Acquisition of Aasset, Parking & Protection and Augusta – € 41.2 million, of which € 11.2 million relates to Augusta Investments in tangible and intangible assets – € 18.1 million Cash dividend is hi
Slide 30: Cash flow statement
CASH FLOW STATEMENT (in million €) H1 H1 2012 2011 Operating result 25.3 40.4 Depreciation, amortization and impairment 16.2 13.4 Share and option schemes 1.3 1.3 Change in provisions - 0.1 0.3 Change in working capital - 11.2 - 60.9 Cash flow from operations 31.5 - 5.5 Interest paid - 5.2 - 3.8 Tax
Slide 31: Ratios
RATIOS H1 FY H1 2012 2011 2011 Working capital / Turnover 1) 13.5 11.6 14.8 Net debt / EBITDA 2) 1.5 0.9 1.2 Gearing (net debt / equity) 3) 42.2% 24.3% 28.7% ICR (EBITDA / Financial cost) 2) 10.6 13.0 13.5 Solvency 4) 41.8% 45.6% 43.5% Earnings per ordinary share before exceptional € 0.49 € 1.57 € 0
Slide 32: Outlook
Outlook 32 | First half results 2012 | 22-08-2012
Slide 33: Outlook
Outlook The forecast for H2 2012 for the market segments in which TKH operates shows a mixed picture Telecom Solutions Further increase investments optical fibre networks – TKH well positioned in European market for further growth Decline turnover copper networks in line with shift towards investmen
Slide 34: Outlook
Outlook As per 2 July 2012 will Augusta Technologie, in which TKH has acquired a majority stake, be consolidated in TKH’s results. In the outlook per segment is not accounted for the consolidation of Augusta Technologie. On balance and barring unforeseen circumstances, for the full year 2012 TKH exp
Slide 35: 35 | First half results 2012 | 22-08-2012
35 | First half results 2012 | 22-08-2012