Belysse Group NV · EURONEXT:BELYS
Belysse Group NV — Balta Group — Shareholder Meeting (May 2018)
43 slides from Belysse Group NV's shareholder meeting presentation, May 22, 2018
Slide 1: AGM 22 May 2018
Yabalta AGM 22 May 2018
Slide 2: YMabalta
YMabalta
Slide 3: Opening of the meeting and composition of the bureau
Opening of the meeting and composition of the bureau 3
Slide 4: Convening, registration and attendance formalities
Convening, registration and attendance formalities 4
Slide 5: Validity of the meeting
Yabalta Validity of the meeting
Slide 6: Business and Finance Update
Business and Finance Update 6
Slide 7: Agenda
Agenda Tom Debusschere CEO Tom Gysens CFO Our Strategy and Progress Financial Review Update on Residential and Bentley Q1 Update Six Key Priorities for 2018 2018 Outlook 7
Slide 8: Balta is a Global Specialist in Rugs and Carpets
Balta is a Global Specialist in Rugs and Carpets Carpets Rugs Broadloom Tiles Product • A piece of carpet directly put on a hard flooring • Large roll of carpet installed throughout a • Modular pieces of carpets assembled square room, from wall to wall by square to cover a floor • No installation ne
Slide 9: Balta's Geographical Operational Footprint
Balta’s Geographical Operational Footprint 9
Slide 10: Balta's Financial Segmentation by Division and Geography
Balta’s Financial Segmentation by Division and Geography PF1 Revenue 2017 per reporting segment PF1 Adjusted EBITDA 2017 per reporting segment 10 (1) Pro forma figures incorporate the acquisition effect of Bentley under the assumption that the transaction took place as of the start of the prior fina
Slide 11: Our Strategy
Our Strategy Our vision: “To bring beautiful design at affordable prices to mid-segment mass markets” Our goal is to be the: Global innovation and design leader in machine-made rugs Growing challenger in the North American and European commercial carpet and tiles segment Leading carpet manufacturer
Slide 12: Strengthen Our Leading Positions Across Core Segments
Strengthen Our Leading Positions Across Core Segments • Rugs full year organic revenue growth 8.1% versus last year – 2017 investment to increase our US sales and distribution infrastructure, including a new warehouse in Georgia • Commercial has doubled in revenue and EBITDA versus last year – Comme
Slide 13: Continue to Focus on Operational Excellence
Continue to Focus on Operational Excellence • Completed the full automation of the commercial tile plant in Zele, Belgium – Increased capacity and cost competitiveness – 2017 Q3 supply issue temporarily constrained sales • Expanded production capacity in Turkish plants by 10% in 2017 – Expect this t
Slide 14: 14
14
Slide 15: Continue to Focus on Operational Excellence
Continue to Focus on Operational Excellence • Completed the full automation of the commercial tile plant in Zele, Belgium – Increased capacity and cost competitiveness – 2017 Q3 supply issue temporarily constrained sales • Expanded production capacity in Turkish plants by 10% in 2017 – Expect this t
Slide 16: Update on Optimising the Residential Operational Footprint
Update on Optimising the Residential Operational Footprint • Consultation and social negotiation process completed, we will be: – Absorbing Oudenaarde factory into two existing vertically integrated factories in Belgium – Closing the rented warehouse in Sint-Niklaas, Belgium • Project expected to fi
Slide 17: Bentley Mills Acquisition
Bentley Mills Acquisition 1. Cross-selling opportunities • modulyss styles available in the US • Bentley products showcased for European market at Domotex Jan 2018 Feb • Major national US retailer contract won for modulyss in Q4 2017 2017 2. Know-how transfer Jun • 100% of Bentley’s sales force trai
Slide 18: A Strong H1 Offset by a Challenging H2
A Strong H1 Offset by a Challenging H2 H1 H2 • H2 margins impacted by significant increase in raw material cost that we did not fully offset by compensating actions • FX negatively impacted full year EBITDA by 7% +15.1% +22.4% • In addition yoy sales growth yoy sales growth (consolidated) (consolida
Slide 19: Six Key Priorities for 2018
Six key Priorities for 2018 Grow Profitable Revenue: Deliver increased level of cost savings: 1. Continue to grow Rugs sales in North America 4. Deliver the full benefits of the restructuring of • by increasing channel penetration and broadening the operational footprint in Residential our channel r
Slide 20: Financial Review – Tom Gysens CFO
Financial Review – Tom Gysens CFO 20 Confidential
Slide 21: Full Year Financial Headlines
Full Year Financial Headlines +4.5% organic • Organic performance driven by growth of Rugs +8.1% and +18.6% Commercial +8.0% (1.4%) FX impact yoy sales growth (consolidated) • Strong contribution from Bentley acquisition +15.4% M&A(1) (5.8)% organic +3.7% • Organic growth impacted by raw material pr
Slide 22: Group Full Year Revenue Performance
Group Full Year Revenue Performance +0.6% +8.0% (1.4%) +15.4% +8.1% Strong organic performance in Start-up issues in Belgium tile factory held back Rugs +8.1% and Commercial +8.0% Commercial performance - All divisions grew organic revenue 22
Slide 23: Group Full Year EBITDA and Margins
Group Full Year EBITDA and Margins Adj. EBITDA margin (%) 14.6% 13.1% 12.8% +16.6% (7.1%) Raw material increases have materially Adverse currency movements have materially impacted our organic margins impacted our reported margins 23
Slide 24: YOY Reduction in Debt and Leverage; Debt Maturity Profile
YOY Reduction in Debt and Leverage Long Term Stability with our Debt Funding Maturity Profile Acquisition of Bentley Debt Maturity Profile 385 300 Post deleveraging using primary IPO 15 net proceeds 250 292 1 280 269 268 257 253,5 200 €m 150 3,9x 3,5x 3,6x 3,3x 235 2,9x 2,9x 100 2,6x 68 50 1 10 35 0
Slide 25: Q1 Financial Headlines
Q1 Financial Headlines (10.4%) organic • Rugs organic decline as expected given partial loss in share of wallet +4.3% and strong prior year comparative of +17.2% (2.1%) FX impact yoy sales growth (consolidated) • Residential organic decline of 14.3% reflecting poor trading +16.8% M&A(1) contribution
Slide 26: 2018 Outlook Remains Unchanged and Q1 In-Line with Guidance
2018 Outlook Remains Unchanged and Q1 Performance is In-Line with Our Overall Guidance • Expect 2018 EBITDA to be between €82m and €87m – Trends of H2 2017 to continue in H1 2018 – Rugs H1 revenue down by mid-teens due to timing effect of gains and losses in customers ‘share of wallet’ – Our earning
Slide 27: Corporate Governance
Yabalta Corporate Governance 27
Slide 28: Board of Directors
Board of Directors Cyrille Ragoucy Independent Director Chairman of the Board Tom Debusschere1 Executive Director and CEO Michael Kolbeck Non-Executive Director Chairman of the RNC Nicolas Vanden Abeele2 Independent Director Sarah Hedger Independent Director Neal Morar3 Non-Executive Director Hannah
Slide 29: Remuneration Report
Remuneration Report Different components of the remuneration of the Management Committee: o Fixed remuneration reflecting the level of responsibility o Variable cash remuneration (performance related bonus) o For some members: representation allowance and pension coverage Characteristics of performa
Slide 30: Remuneration Report
Remuneration Report 2) Long Term Incentive Plan (‘LTIP’) A LTIP plan will be implemented in 2018. The LTIP – granted to key management – will consist of Performance Stock Units (PSUs). These will vest to relevant managers that still provide services to the Balta Group on the 3rd anniversary of the
Slide 31: Remuneration Report
Remuneration Report Pre-IPO arrangements Pre-existing incentive schemes, which included a personal co-investment by the individual managers, vested at IPO and were for the largest part paid out in share entitlements of the newly created company Balta Group nv. The detail, which was described in the
Slide 32: Q&A Session
Q&A Session 32
Slide 33: Resolutions
33 Resolutions Yabalta
Slide 34: Item 1: Annual Report
Item 1 Annual Report Acknowledgement of the Board of Directors' annual report with respect to the statutory and consolidated annual accounts relating to the financial year ending on 31 December 2017 (including discussion on corporate governance) and acknowledgement of the statutory auditor's report
Slide 35: Item 2: Replacement representative PwC
Item 2 Replacement representative PwC Acknowledgement of the replacement of the representative of the company PwC Bedrijfsrevisoren, which shall be represented as from the financial year ending on 31 December 2017 by Mr Peter Opsomer, to replace Mr Filip Lozie, in the exercise of its mandate as stat
Slide 36: Item 3: Consolidated Annual Accounts
Item 3 Consolidated Annual Accounts Acknowledgement of the consolidated annual accounts relating to the financial year ending on 31 December 2017. 36
Slide 37: Voting Instructions
VOTING INSTRUCTIONS How to vote? • We will first invite shareholders who wish to vote against the proposed resolution. • Next we will invite the shareholders who wish to abstain. • Voting takes place by show of hands. The hostess will pick up your voting card and return it to you after the counting
Slide 38: Item 4: Remuneration report
Item 4 Remuneration report Approval of the remuneration report relating to the financial year ending on 31 December 2017. Proposed resolution: Approval of the remuneration report of the Board of Directors relating to the financial year ending on 31 December 2017. 38
Slide 39: Item 5: Statutory Annual Accounts
Item 5 Statutory Annual Accounts Approval of the statutory annual accounts relating to the financial year ending on 31 December 2017 and of the proposed allocation of the results. Proposed resolution: Approval of the statutory annual accounts relating to the financial year ending on 31 December 2017
Slide 40: Item 6: Directors' liability discharge
Item 6 Directors’ liability discharge Directors' liability discharge. Proposed resolution: Discharge of liability for each of the directors regarding the execution of their mandate during the financial year ending on 31 December 2017. 40
Slide 41: Item 7: Auditor's liability discharge
Item 7 Auditor’s liability discharge Auditor's liability discharge. Proposed resolution: Discharge of liability for the statutory auditor PricewaterhouseCoopers Bedrijfsrevisoren, represented by Mr Peter Opsomer, regarding the execution of its mandate during the financial year ending on 31 December
Slide 42: Item 8: Board of Directors
Item 8 Board of Directors Acknowledgment of resignation and confirmation of co-optation of a director for the remainder of the mandate of the director he replaces and as proposed by the Board of Directors following the advice of the Remuneration and Nomination Committee. Proposed resolution: Acknowl
Slide 43: Closing of the meeting – THANK YOU !
Closing of the meeting – THANK YOU ! 43