Holland Colours Nv · EURONEXT:HOLCO
Holland Colours Nv — Shareholder Meeting (July 2012)
25 slides from Holland Colours Nv's shareholder meeting presentation, Jul 10, 2012
Slide 1: General Meeting of Shareholders
General Meeting of Shareholders Apeldoorn, July 10, 2012
Slide 2: The topics
The topics Financial year 2011/2012 Sales, margin and result development Cash flow Financing Information systems Sustainability Outlook Dividend proposal Direction for the future Conclusions
Slide 3: Sales and result development 07/08 until 11/12
Sales en result development 07/08 until 11/12 Sales in € x 000 Net result in € x 000 Sales share of Asia is growing Europe not yet back on pre crisis level Lower result 2011/2012 due to margin pressure
Slide 4: Some recovery in Q4, after weak Q2 and Q3
Some recovery in Q4, after weak Q2 and Q3 Sales development per quarter (y-o-y)
Slide 5: Sales and result per division
Sales and result per division Sales and operating result share (%) Higher raw material prices could not be fully passed on to customers, and in any case only with delays which is the main cause of the negative operating profit in Europe
Slide 6: Only sales growth in € in Asia
Only sales growth in € in Asia 1st half year 2nd half year 2011/2012 Europe 18.048 1% 15.403 -2% 33.451 -1% Americas 9.462 -8% 9.198 5% 18.660 -2% Asia 4.456 22% 4.674 15% 9.130 19% Total 31.966 0% 29.275 2% 61.241 1%
Slide 7: Markets develop differently
Markets develop differently Sales index 07/08 = 100 07/08 08/09 09/10 10/11 11/12 Building & Construction 100 87 83 98 95 Packaging 100 90 87 101 98 Silicones & Elastomers 100 94 94 111 124 Specialties 100 87 81 102 112 Total 100 89 85 101 102 Building $ Construction and Packaging not back on pre cr
Slide 8: Sales new products more than doubled
Sales new products more than doubled Examples: Holcomer for colouring and protecting UHT milk bottles Holcomaster (new masterbatch business in Indonesia) HTV (pigment preparation based on Silicon gum) Pipeline of new products continues to fill but the contribution is still below target
Slide 9: Volume/margin development in the focus markets
Volume/margin development in the focus markets Volume Sales Margin % Building & Construction -6% -3% Lower Packaging 9% -2% Lower Silicones & Elastomers -4% 12% Lower Specialties 23% 10% Lower Total 3% 1% Packaging: competition and product mix changes Silicones & Elastomers: product mix changes (mor
Slide 10: Lower gross margin
Lower gross margin Fiscal year Fiscal year Difference 10/11 11/12 Sales 60.506 61.241 1% Cost of goods sold 30.954 34.302 11% Gross operating result 29.552 26.939 -9% Gross margin 48,8% 44,0% During the whole financial year significant lower relative gross margin: Raw material prices (a.o. carrier m
Slide 11: Operating expenses under control, lower financing costs
Operating expenses under control, lower financing costs Fiscal year Fiscal year 10/11 11/12 Sales 60.506 61.241 1% Gross operating result 29.552 26.939 -9% Operating expenses 24.106 23.782 -1% Operating result 5.446 3.157 -42% Net financing costs 723 549 -24% Tax on profits 1.569 903 -42% Net result
Slide 12: Cash flow
Cash flow in € x 1.000 11/12 10/11 Operating result 3.157 5.446 Depreciation 2.213 2.368 Other 548 244- Cash flow from operating activities before working capital changes 5.918 7.570 Changes in working capital 2.452- 1.861- Cash flow from operating activities 3.466 5.709 Paid/received income taxes a
Slide 13: Working capital increased
Working capital increased Working capital € 2.2 million higher Operational working capital € 1.2 million higher Operational working capital is 25.4% of sales (10/11: 23.6%) Increase of inventory € 0.9 million Increase of raw material inventory Increase in value as a result of higher raw material pri
Slide 14: Higher equity, bank covenants have been met
Higher equity, bank covenants have been met Positive translation result € 0.8 million (10/11 € 0.6 million negative) Solvency increased from 54.9% to 55.3% Return on average invested capital 10.0% (10/11: 17.7%) Existing financing agreements were not changed in 2011/2012 Bank covenants and the colla
Slide 15: Information systems
Information systems Successful implementation of standard reporting and consolidation software at all operating companies Successful implementation of the standard ERP-system at the location in Indonesia All operating companies are working with the same information systems as of February 1, 2012
Slide 16: Corporate Social Responsibility
Corporate Social Responsibility Most products based on natural raw materials New products have been developed for sustainable applications (for example color concentrates for biopolymers) Since the foundation all employees participate in Holland Colours via Holland Pigments Attention for health and
Slide 17: Corporate social responsibility
Corporate social responsibility Energy-saving programs Netherlands: objective to save 2% energy per annum Transparency and targets Expansion of internal reporting systems necessary Intention to bring environmental reporting in line with “Global Reporting Initiative” (GRI) guidelines.
Slide 18: Outlook for 2012/2013
Outlook for 2012/2013 Economic climate remains uncertain Housing markets in Europe and the United States will show little or no structural recovery For Packaging and Silicones & Elastomers organic market growth is expected Growing sales of new products Recovery of gross margin remains an important a
Slide 19: Dividend proposal
Dividend proposal Euro 1.10 per share, taken into account: Uncertain economic situation Solvency above 50% Existing financing arrangements are sufficient to meet the financing requirements TD/EBITDA comfortably below 3.0
Slide 20: Direction for the future: findings first months
Direction for the future Findings first 6 months: Motivated and engaged employees Good image in the market Leading position in niche markets Narrow market definition Distance between corporate en divisions Divisions relatively independent Limited succes innovation program Disappointing profitability
Slide 21: Direction for the future: strategic reorientation of markets
Direction for the future Strategic reorientation of markets / market approach Innovation focus: closer to the market Focussed development of emerging markets Ungoing efficiency improvement
Slide 22: Direction for the future: organization consequences
Direction for the future Organization (structure) consequences: Further integration corporate and division Europe Business development manager with focus on emerging markets and innovation Supply chain manager with focus on HSE, FTR, delivery reliability and operational working capital Strengthening
Slide 23: Conclusions
Conclusions 2011/2012 was an eventful year Results were disappointing in comparison with 2010/2011 Increasing raw material prices and the euro crisis had a negative effect on results Actions have been taken and are taken to improve profitability Management Board and employees are actively busy to ex
Slide 24: A small present after the presentation
A small present after the presentation to thank you for your loyalty: The outside from recycled CD-box The core from Holcoprill Extremely colorful For unlimited creativity…..
Slide 25: Holland Colours
HOLLAND COLOURS