Recticel SA · EURONEXT:RECT
Recticel SA — H1 2014 Earnings Presentation
38 slides from Recticel SA's earnings presentation, Aug 29, 2014
Slide 1: Recticel First Half-Year 2014 Results – Financial Analysts' Meeting
RECTICEL FIRST HALF-YEAR 2014 RESULTS Financial Analysts’ Meeting Brussels, 29 August 2014 Olivier Chapelle – CEO Recticel Jean-Pierre Mellen – CFO Recticel Michel De Smedt – IRO Recticel 1H2014 Results 1 29 August 2014
Slide 2: Highlights & Strategy Update
1 Highlights & Strategy Update 2 1H2014 Consolidated & Combined Results 3 Financial Situation 4 Miscellaneous 5 Outlook FY2014 6 1H2014 Comments on Combined Results per Business Line 7 Annexes 1H2014 Results 2 29 August 2014
Slide 3: Recticel progresses in an uncertain environment
Recticel progresses in an uncertain environment ► Operational performance has materially improved ► The last significant legacy issue (FCO) has been clarified on 22/08/2014 after the clarification of the EU case on 29/01/2014 1H2014 Results 3 29 August 2014
Slide 4: Progress has materialised in all dimensions of strategic agenda
Progress have materialised in all dimensions of strategic agenda In line with segment • Automotive Interiors Estimated cumulative OEM Car model Country of production strategy, capacity orderbook improved lifetime sales (in million EUR) increase is on-going on Colosense Lite Insulation UK • Insulatio
Slide 5: Strategic update & Highlights
1 Strategic update & Highlights 2 1H2014 Consolidated & Combined Results 3 Financial Situation 4 Miscellaneous 5 Outlook FY2014 6 1H2013 Comments on Combined Results per Business Line 7 Annexes 1H2014 Results 5 29 August 2014
Slide 6: Consolidated Key Figures
Consolidated Key Figures ► Improved overall operational profitability ► Results include a EUR 8.2 million provision for the settlement of the German Federal Cartel Office investigation, lifting the last material uncertainty on the Group relating to historical issues ► Consolidated sales: from 494.7m
Slide 7: Combined Key Figures
Combined Key Figures ► Improved overall operational profitability ► Results include a EUR 8.2 million provision for the settlement of the German Federal Cartel Office investigation, lifting the last material uncertainty on the Group relating to historical issues ► Combined sales: from 632.6m€ to 645
Slide 8: The European economic context remains extremely challenging in 2014
The European economic context remains extremely challenging in 2014, and BRICS don‘t emerge anymore... • EU 28: GDP growth gap widening between Western Europe, Eastern Europe and UK …. • Construction markets are negative, with exception of the UK • Furniture and Bedding markets are negative (low con
Slide 9: Combined 1H net sales are up 2%, thanks to good 1Q2014
Combined 1H net sales are up 2%, thanks to good 1Q2014 ► Combined net sales: from 632.6m€ to 645.2m€ (+2.0%) 1Q/14: from 317.9m€ to 333.4m€ (+4.9%) 2Q/14: from 314.8m€ to 311.8m€ (-0.9%) ► Impact currency exchange differences (-0.6%) and changes in scope of consolidation (-0.1%) ► 94% of Group s
Slide 10: Sales evolution softened during 2Q2014, except in Automotive
The positive sales evolution in 1Q2014 (+4.9%) softened during 2Q2014 (-0.9%), except in Automotive 1H2014 Results 10 29 August 2014
Slide 11: Improvement of the combined REBITDA
Improvement of the combined REBITDA (1) ► REBITDA : from 33.3m€ to 38.8m€ (+16.6%) The improved recurrent profitability results from • Slightly higher sales turnover • Improved cost performance following the significant restructuring efforts in the Flexible Foams and Automotive segments, • Deploym
Slide 12: REBITDA and REBIT make parallel progress
REBITDA and REBIT make parallel progress ► REBITDA : from 33.3m€ to 38.8m€ (+16.6%) ► REBIT : from 13.4m€ to 20.8m€ (+54.7%) 1H2014 Results 12 29 August 2014
Slide 13: Non-recurring elements include FCO fine
Non-recurring elements (on combined basis) include FCO fine ► Impact non-recurring elements on EBITDA: -12.6m€ (1H2013: -13.1m€) ► Impact non-recurring elements on EBIT: -12.7m€ (1H2013: -14.3m€) ► Non-recurring elements mainly relate to: provision for the settlement of the German Federal Cartel O
Slide 14: Improvement of EBITDA & EBIT
Improvement of EBITDA & EBIT ► EBITDA: from 20.2m€ to 26.2m€ ► EBIT: from -0.8m€ to +8.1m€ 1H2014 Results 14 29 August 2014
Slide 15: Higher consolidated financial result and higher income taxes
Higher consolidated financial result and higher consolidated income taxes ► Consolidated financial result: from -5.6m€ to -7.0m€ Net interest charges increased from -4.4m€ to -4.8m€. Average credit interest margins slightly increased. The average net interest-bearing debt, including the usage of ‘
Slide 16: Trade working capital has been reduced
Trade working capital has been reduced 1H2014 Results 16 29 August 2014
Slide 17: Consolidated cash flow statement
Consolidated cash flow statement 1H2014 Results 17 29 August 2014
Slide 18: Financial Situation
1 Strategic update & Highlights 2 1H2014 Consolidated & Combined Results 3 Financial Situation 4 Miscellaneous 5 Outlook FY2014 6 1H2014 Comments on Combined Results per Business Line 7 Annexes 1H2014 Results 18 29 August 2014
Slide 19: Net financial debt development
Net financial debt development ► Combined net financial debt versus Consolidated net financial debt ► Convertible bond: The July 2014 put option was only exercised for EUR 50,000. The outstanding amount, which was temporarily (due to put option) booked under current interest-bearing borrowings, will
Slide 20: Miscellaneous
1 Strategic update & Highlights 2 1H2014 Consolidated & Combined Results 3 Financial Situation 4 Miscellaneous 5 Outlook FY2014 6 1H2014 Comments on Combined Results per Business Line 7 Annexes 1H2014 Results 20 29 August 2014
Slide 21: Miscellaneous – European Commission and Bundeskartellamt investigations
Miscellaneous ► European Commission and Bundeskartellamt investigations Inspection by the Directorate for Competition of the EC • On 29 January 2014, Recticel announced it had reached a settlement with the European Commission in the Commission’s polyurethane foam investigation, which brings the ma
Slide 22: Outlook FY2014
1 Strategic update & Highlights 2 1H2014 Consolidated & Combined Results 3 Financial Situation 4 Miscellaneous 5 Outlook FY2014 6 1H2014 Comments on Combined Results per Business Line 7 Annexes 1H2014 Results 22 29 August 2014
Slide 23: Outlook FY2014
Outlook FY2014 While remaining prudent due to persisting market volatility, Recticel confirms that it anticipates in 2014 its combined sales to grow by about 2%, and its combined recurring EBITDA to increase by up to 10%. The Group maintains its focus on the execution of the strategic plan 2015, whi
Slide 24: Comments on Combined Results per Business Line
1 Strategic update & Highlights 2 1H2014 Consolidated & Combined Results 3 Financial Situation 4 Miscellaneous 5 Outlook FY2014 6 1H2014 Comments on Combined Results per Business Line 7 Annexes 1H2014 Results 24 29 August 2014
Slide 25: Flexible Foams combined results
► Key events 1H2014 Combined sales from 297.3m€ to 300.1m€ (+0.9%) • 1Q2014: from 151.5m€ to 156.1m€ (+3.0%) • 2Q2014: from 145.8m€ to 144.0m€ (-1.2%) ► 1H2014 external sales: EUR 300.1m€; 0.9% Combined Sales Flexible Foams (2011-2014) ► Comfort (1H2014: 183.3m€ ; -3.2%) 160 Combined sales 1H2014
Slide 26: Bedding combined results
► Key events 1H2014 Combined sales from 140.0m€ to 135.4m€ (-3.3%)(on like-for-like external sales: -2.2%) • 1Q2014: from 75.5m€ to 76.0m€ (+0.6%) (on like-for-like external sales: +1.5%) • 2Q2014: from 64.5m€ to 59.4m€ (-7.9%) (on like-for-like external sales: -6.6%) ► Consumer confidence remaine
Slide 27: Insulation combined results
► Key events 1H2014 Combined sales from 109.5m€ to 110.8m€ (+1,1%) • 1Q2014: from 49.9m€ to 55.5m€ (+11.2%) • 2Q2014: from 59.6m€ to 55.3m€ (-7.3%) New plant Bourges Combined sales Insulation (2011-2014) ► Building Insulation (103.3m€; +0.6%) Overall soft European residential construction and 65
Slide 28: Automotive combined results
► Key events 1H2014 Combined sales from 129.7m€ to 140.6m€ (+8.4%) • 1Q2014: from 63.5m€ to 68.7m€ (+8.2%) • 2Q2014: from 66.2m€ to 71.9m€ (+8.6%) ► Interiors (59.7m€; +3.3%) Combined sales Automotive (2011-2014) The planned phasing-out of some programs, mainly in the 100 Combined sales 1H2014 U
Slide 29: Annexes
1 Strategic update & Highlights 2 1H2014 Consolidated & Combined Results 3 Financial Situation 4 Miscellaneous 5 Outlook FY2014 6 1H2014 Comments on Combined Results per Business Line 7 Annexes 1H2014 Results 29 29 August 2014
Slide 30: ANNEXES – Consolidated Income Statement
ANNEXES – Consolidated Income Statement 1H2014 Results 30 29 August 2014
Slide 31: ANNEXES – Consolidated Comprehensive Income
ANNEXES – Consolidated Comprehensive Income 1H2014 Results 31 29 August 2014
Slide 32: ANNEXES – Consolidated Balance Sheet
ANNEXES – Consolidated Balance Sheet in million EUR 31 DEC 13 30 JUN 14 D Intangible assets 12,0 12,1 1% Goodwill 24,6 24,9 1% Property, plant & equipment 204,6 199,7 -2% Investment property 3,3 3,3 0% Interest in joint ventures & associates 72,5 79,4 10% Other financial investments and available fo
Slide 33: ANNEXES – Consolidated Statement of Cash Flow
ANNEXES – Consolidated Statement of Cash Flow 1H2014 Results 33 29 August 2014
Slide 34: ANNEXES – Statement of Changes in Equity
ANNEXES – Statement of Changes in Equity 1H2014 Results 34 29 August 2014
Slide 35: ANNEXES – Data per share
ANNEXES – Data per share 1H2014 Results 35 29 August 2014
Slide 36: ANNEXES – Reconciliation
ANNEXES – Reconciliation Combined figures with Consolidated figures 1H2014 Results 36 29 August 2014
Slide 37: ANNEXES – Reconciliation
ANNEXES – Reconciliation Combined figures with Consolidated figures 1H2014 Results 37 29 August 2014
Slide 38: Contacts
CONTACTS Investor Relations Michel De Smedt Press Olivier Chapelle Recticel International Headquarters Email: desmedt.michel@recticel.com Email: chapelle.olivier@recticel.com 2, avenue des Olympiades/Olympiadenlaan, 2 Tel: +32 (0)2 775 18 09 Tel: +32 (0)2 775 18 01 B-1140 Brussels Mob: +2 (0) 479 91