TKH Group N.V. Cert · EURONEXT:TWEKA
TKH Group N.V. Cert — TKH Group — FY2015 Earnings Presentation
57 slides from TKH Group N.V. Cert's earnings presentation, Mar 8, 2016
Slide 1: Annual results 2015
Annual results 2015 TKH Group NV 8 March 2016 1 | Annual results 2015 | 08-03-2016
Slide 2: Content
Content 1 About TKH Group 2 Developments 2015 3 Notes to the results and balance sheet 2015 4 Strategic developments & outlook 5 Appendices 2 | Annual results 2015 | 08-03-2016
Slide 3: About TKH Group
ABOUT TKH GROUP 3 | Annual results 2015 | 08-03-2016
Slide 4: Profile
Profile Turnover € 1.375 million Geographical Number of employees (FTE) 5,387 distribution of turnover (in %) Technology company Four core technologies Vision & security, communication, connectivity and manufacturing systems The core technologies are combined with software and system integration int
Slide 5: Mission
Mission TKH intends to be an innovative and leading technology (niche) player in creating combinations of technologies to total solutions through which customers are fully relieved and that lead to larger efficiency, more comfort and larger safety. TKH aims to be an attractive employer, to continuou
Slide 6: Strategy TKH: Value creation
Strategy TKH Value creation Focus on 4 core technologies in 3 business segments Telecom Building Industrial Solutions Solutions Solutions Growth drivers Communication, safety, care and efficiency Innovations > 15% turnover 6 | Annual results 2015 | 08-03-2016
Slide 7: Developments 2006 - 2015
Developments 2006 - 2015 1) 1) excluding one-off income and expenses 7 | Annual results 2015 | 08-03-2016
Slide 8: Developments 2015
DEVELOPMENTS 2015 8 | Annual results 2015 | 08-03-2016
Slide 9: Highlights 4th quarter 2015
Highlights 4th quarter 2015 Turnover down 3.2% to € 344.7 million, organic decline of 6.6% Building Solutions +11,2% of which 1.9% organic Industrial Solutions - 14,1% in line with the reduced order intake in the previous quarters Telecom Solutions - 3,8% EBITA before one-off income and expenses up
Slide 10: Highlights 2015
Highlights 2015 Turnover up 2.2% at € 1.375 billion, organic turnover decline of 2.6% Increase EBITA before one-off expenses 12.1% Good performance Building Solutions due to acquisitions and focus vertical growth markets Increase net profit before amortization and one off income and expenses 15,7% t
Slide 11: Highlights 2015: Solutions segmentation
Highlights 2015 Solutions segmentation 11 | Annual results 2015 | 08-03-2016
Slide 12: Telecom Solutions
Telecom Solutions (in million € unless stated otherwise) 2015 2014 Δ in % Turnover € 166.1 € 167.4 - 0.8% EBITA € 15.8 € 14.5 + 8.8% %ROS 9.5% 8.7% Decline organic turnover: 2.4% Increase turnover indoor telecom & copper networks – increase turnover fibre optic networks in H2 compared to H1 2015 and
Slide 13: Telecom Solutions: fibre networks systems
Telecom Solutions Segment fibre networks systems: turnover -1.7% Optical fibre (cable), connectivity systems and components, active equipment In the Netherlands and Scandinavia, investments fell considerably due focus on utilizing the capacity of existing optical fibre and copper networks. Increase
Slide 14: Telecom Solutions: indoor telecom & copper networks
Telecom Solutions Segment indoor telecom & copper networks: turnover +0.5% Home networking systems, broadband connectivity, IPTV-software solutions, Copper cable, connectivity systems and components, active equipment Decrease investments due to a shift of investments to optical fibre networks Increa
Slide 15: Building Solutions
Building Solutions (in million € unless stated otherwise) 2015 2014 Δ in % Turnover € 581.6 € 497.6 +16.9% EBITA € 64.6 € 43.1 + 49.9% ROS 11.1% 8.7% Organic turnover growth: 5.6% - due to focus on vertical growth markets and continued internationalisation Strong EBITA and ROS improvement due to tur
Slide 16: Building Solutions: vision & security systems
Building Solutions Segment vision & security systems: turnover +25.1% Vision technology, systems for CCTV, video/audio-analysis and detection, intercom, access controls and registration, central control room integration, care systems Innovations and distinctive technologies are excellent response to
Slide 17: Building Solutions: connectivity systems
Building Solutions Segment connectivity systems: turnover +6.1% Specialty cable, connectivity systems and components for shipping, railways, wind energy as well as installation and energy cable for niche markets Positive impact due to focus on vertical growth markets despite of stagnant market volum
Slide 18: Industrial Solutions
Industrial Solutions (in million € unless stated otherwise) 2015 2014 Δ in % Turnover € 627.4 € 680.7 - 7.8% EBITA € 84.8 € 91.6 - 7.4% ROS 13.5% 13.5% Organic turnover declined: 8.5% due to reluctance to invest in China, particularly notable in the robot and machine industry, including tire buildin
Slide 19: Industrial Solutions: connectivity systems
Industrial Solutions Segment connectivity systems: turnover -1.6% Specialty cable systems and modules for the medical, robotic, automotive and machine building industry Lower order intake Germany in robot- and machine industry as a result of reluctance to invest China – reduction inventories by cust
Slide 20: Industrial Solutions: manufacturing systems
Industrial Solutions Segment manufacturing systems: turnover -11.2% Tire manufacturing systems, can washers, machine control systems, product handling systems and test equipment for the medical industry and machine operating systems Turnover decline in line with reduced order intake in preceding qua
Slide 21: Notes to the results and balance sheet 2015
NOTES TO THE RESULTS AND BALANCE SHEET 2015 21 | Annual results 2015 | 08-03-2016
Slide 22: Notes to the results 2015: change in turnover
Notes to the results 2015 Change in turnover (in € million) 22 | Annual results 2015 | 08-03-2016
Slide 23: Notes to the results 2015: geographical distribution of turnover
Notes to the results 2015 Geographical distribution of turnover (in %) 23 | Annual results 2015 | 08-03-2016
Slide 24: Notes to the results 2015: development of turnover per solution
Notes to the results 2015 Development of turnover per solution (in million € unless stated otherwise) Impact Impact Turnover Turnover Total prices raw acqui- Organic 2015 2014 growth materials sitions growth Telecom Solutions 166.1 167.4 - 0.8% + 1.6% - - 2.4% Building Solutions 581.6 497.6 +16.9% +
Slide 25: Notes to the results 2015
Notes to the results 2015 Gross margin increased to 46.0% (2014: 42.8%) Margin improvement due to the acquisition of the Commend Group Improved product mix Increase EBITA before one-off income of 12.1% Operating costs (in % of turnover) increased to 34.9% (2014: 32.7%) largely due to higher in-house
Slide 26: Notes to the results 2015: EBITA per Solution
Notes to the results 2015 EBITA per Solution (in million € unless stated otherwise) 2015 2014 1) EBITA ROS % EBITA ROS % Telecom Solutions 15.8 9.5 14.5 8.7 Building Solutions 64.6 11.1 43.1 8.7 Industrial Solutions 84.8 13.5 91.6 13.5 Other - 13.7 - 14.0 Total 151.5 11.0 135.2 10.0 1) Excluding one
Slide 27: Notes to the results 2015
Notes to the results 2015 Increase amortisation charges with € 5.4 million Higher investments in research & development Acquisition Commend Group One-off income and expenses of € 1.5 million (2014: € +8.8 million) Impairment of € 1.8 million from depreciations on capitalized R&D projects and a relea
Slide 28: Notes to the results 2015: income statement
Notes to the results 2015 (in million €) 2015 2014 1) Δ in % Turnover 1,375.2 1,345.7 + 2.2 Raw materials and consumables - 743.2 - 770.0 Gross margin 632.0 46,0% 575.7 42,8% + 9.8 Operating costs - 480.5 - 440.5 + 9.1 EBITA 151.5 11,0% 135.2 10,0% + 12.1 Amortisation - 31.6 - 26.2 One-off income an
Slide 29: Balance sheet as of 31 December 2015
Balance sheet as of 31 December 2015 (in million €) 31-12-2015 31-12-20141) Assets 1) After restatement as a result of change in accounting principles for land and Non-current assets 630.4 555.8 buildings and prior period restatements (see Accounting principle for financial Inventories 194.2 202.3 r
Slide 30: Notes to the balance sheet: change in working capital
Notes to the balance sheet 31 December 2015 Change in working capital (in € million) Working capital Use of non-recourse factoring: 31 -12 -15 € 43.0 million 31 -12 -14 € 41.2 million Use of supply chain finance: 31 -12 -15 € 11.8 million 31 -12 -14 € 13.6 million 30 | Annual results 2015 | 08-03-20
Slide 31: Notes to the balance sheet: change in net debt
Notes to the balance sheet 31 December 2015 Change in net debt (in € million) Financial covenants Net debt is based on financial covenants as agreed with banks Net debt / EBITDA: 0.9 Interest coverage ratio: 22.5 1) Including net debt/(cash) received from acquisitions 31 | Annual results 2015 | 08-0
Slide 32: Cash flow statement
Cash flow statement (in million €) 2015 2014 Operating result 118.4 117.8 Depreciation, amortisation and impairment 55.7 46.7 Result on divestments - 1.2 Share and option schemes 2.5 1.8 Change in provisions - 0.7 - 8.6 Change in working capital 43.4 - 40.8 Cash flow from operations 218.1 116.9 Inte
Slide 33: Ratios
Ratios 2015 2014 Working capital / Turnover 1) 11.4% 13.8% Net debt / EBITDA 2) 0.9 1.0 ICR (EBITDA / Financial cost) 2) 22.5 18.9 Solvency 42.2% 41.9% Earnings per ordinary share before amortisation and one-off income and expenses 3) € 2.40 € 2.23 Earnings per ordinary share € 2.07 € 2.14 1) On an
Slide 34: Strategic developments & outlook
Strategic developments & outlook 34 | Annual results 2015 | 08-03-2016
Slide 35: Business drivers
Business drivers Focus on four core technologies Vision & security, communication, connectivity and manufacturing systems Merge the four core technologies into specific solutions for identified niche vertical markets with special focus on high growth opportunities within the business segments Teleco
Slide 36: TKH vertical growth markets - growth drivers
TKH – vertical growth markets – growth drivers Advantage of focus on defined vertical growth markets Focus leads to maximum traction to realise growth potential Choice for growth verticals is determined on the return potential based on internal and external benchmarking – ROS and ROCE in combination
Slide 37: Financial objectives TKH
Financial objectives TKH Progress realisation targets on track Increase ROS in 2015 to 11.0% (2014: 10.0%) ROCE in 2015: 22.1% (2014: 21.2%) Targets ROS target: 11 to 12% (increased from 10 to 11%) ROCE target: 20 to 22% (increased from 18 to 20%) Net debt / EBITDA: < 2.0 37 | Annual results 2015 |
Slide 38: Growth scenarios vertical growth markets
Growth scenarios vertical growth markets Growth verticals Growth 2012 2014 2015 (in € millions) scenarios Fibre Optics Network 80 99 101 120 150 Parking 20 35 50 75 100 Tunnel & Infra 30 25 42 100 150 Marine, Oil & Gas 20 50 58 100 125 Care 30 34 39 70 100 Machine Vision 95 103 114 150 175 Tire Buil
Slide 39: Outlook
Outlook Global economic conditions are mixed. The impact of and uncertainty regarding the economic developments in China has now led to uncertainty about global economic developments in the year ahead, which has in turn resulted in reluctance to invest in the industrial sector. TKH’s core technologi
Slide 40: Outlook
Outlook Building Solutions Signs of growth in investments in the building and construction sector and the energy/infra sector Reluctance to invest within the marine, oil and gas industry Vertical growth markets, primarily linked to vision and security technology offer growth perspectives Industrial
Slide 41: Appendix I: TKH Technologies
Appendix I: TKH TECHNOLOGIES 41 | Annual results 2015 | 08-03-2016
Slide 42: Core technologies
Core technologies Vision & Security Communication Emergency Personal alarm systems systems Manufacturing systems Connectivity 42 | Annual Drag results 2015 | 08-03-2016 Chain systems MultiMediaConnect
Slide 43: Appendix II: Vertical growth markets
Appendix II: VERTICAL GROWTH MARKETS 43 | Annual results 2015 | 08-03-2016
Slide 44: Business drivers
Business drivers TKH focuses on distinguishing potential for an above- average performance Niche player strategy - focus on high quality solutions with high margins High pricing power by innovative unique solutions Attractive margins because of high yield on investments for customers Commodity produ
Slide 45: Vertical growth markets - Fibre Optic
TKH – vertical growth markets – Fibre Optic Growth drivers The impact of information and communication technology on the way we live our lives. Stormy development of e-learning, gaming, social media - increasing need for bandwidth. Sata usage by smartphones and tablets continues to grow. The transit
Slide 46: Vertical growth markets - Care
TKH – vertical growth markets – Care Growth drivers Life expectancy is continually increasing and healthcare spending will increase sharply due to more and better, but also more expensive care. Changing healthcare funding: shifting from the government to the institutions and healthcare insurers. Inn
Slide 47: Vertical growth markets - Parking
TKH – vertical growth markets – Parking Growth drivers Revenue from car parks is under pressure due to low supply and mobility - need to reduce OPEX Increase capacity utilisation and revenues by means of differentiated parking fee and increase comfort and convenience for parkers. Use of technologies
Slide 48: Vertical growth markets - Tunnel & Infra
TKH – vertical growth markets – Tunnel & Infra Growth drivers A lot of investments expected for the coming years within Europe to be built - existing tunnels will be equipped with technology. Due to the increasing legislation and regulations in the field of security, ever increasing demands are made
Slide 49: Vertical growth markets - Marine, Oil & Gas
TKH – vertical growth markets – Marine, Oil & Gas Growth drivers Doubling of shipping volume in 2030 – thus demand for larger cargo ships and need for efficient external site management. Increase in the building of quality ships, cruise liners and luxury yachts. Increase of remote control of unmanne
Slide 50: Vertical growth markets - Machine vision
TKH – vertical growth markets – Machine vision Growth drivers Demand for vision technology is increasing due to trend towards automation and robotics in factories – demand for more efficient production processes. Increased miniaturisation complicates quality control and inspections of products by th
Slide 51: Vertical growth markets - Tire building
TKH – vertical growth markets – Tire building Growth drivers High priority of the tyre manufacturing industry to replace existing technology with an emphasis on high productivity, efficiency, waste reduction, quality improvement and smaller batches. The number of tyre sizes for passenger cars has in
Slide 52: Appendix III: Change in revenue presentation
Appendix III: Change in revenue presentation 52 | Annual results 2015 | 08-03-2016
Slide 53: Appendix: Notes to the results 2015
Appendix Notes to the results 2015 The ‘Change in inventories finished goods and work in progress’ has been reclassified from turnover to cost of sales. The impact of the reclassification on the turnover and added value per half year en full year is shown hereafter: New presentation (2015) Old prese
Slide 54: Appendix: Telecom Solutions
Appendix Notes to the results 2015 Telecom Solutions New presentation (2015) Old presentation (2014) Telecom Solutions x € 1,000 H1 2015 H2 2015 FY 2015 H1 2015 H2 2015 FY 2015 Total turnover 80,443 85,686 166,128 81,469 84,773 166,242 Cost of sales 47,706 53,303 101,009 48,732 52,390 101,122 Added
Slide 55: Appendix: Building Solutions
Appendix Notes to the results 2015 Building Solutions New presentation (2015) Old presentation (2014) Building Solutions x € 1,000 H1 2015 H2 2015 FY 2015 H1 2015 H2 2015 FY 2015 Total turnover 287,525 294,090 581,615 287,823 284,248 572,071 Cost of sales 148,802 155,458 304,259 149,100 145,616 294,
Slide 56: Appendix: Industrial Solutions
Appendix Notes to the results 2015 Industrial Solutions New presentation (2015) Old presentation (2014) Industrial Solutions x € 1,000 H1 2015 H2 2015 FY 2015 H1 2015 H2 2015 FY 2015 Total turnover 322,016 305,376 627,392 320,972 305,567 626,539 Cost of sales 176,363 161,597 337,960 175,319 161,787
Slide 57: 57 | Annual results 2015 | 08-03-2016
57 | Annual results 2015 | 08-03-2016