Imcd N.v. · EURONEXT:IMCD
Imcd — FY2018 Earnings Presentation
22 slides from Imcd's earnings presentation, Mar 1, 2019
Slide 1: Conference Call Full Year 2018 results
Page 1 CONFERENCE CALL Full Year 2018 results IMCD N.V. 1 March 2019
Slide 2: Disclaimer
Page 2 Disclaimer This presentation may contain forward looking statements. These statements are based on current expectations, estimates and projections of IMCD’s management and information currently available to the company. IMCD cautions that such statements contain elements of risk and uncertain
Slide 3: Presenting team
Presenting team Page 3 Piet van der Slikke, CEO Hans Kooijmans, CFO • Led the formation of • Joined IMCD in 1996 IMCD since 1995 • Co-led formation of IMCD • Designed and executed IMCD’s strategy • 22 years of industry experience • 23 years of industry experience
Slide 4: Agenda
Agenda Page 4 • Company profile • Highlights 2018 • Financials 2018 • Outlook • Q&A
Slide 5: Company profile
Company profile Page 5 IMCD is a market-leader in the sales, marketing and distribution of speciality chemicals and food ingredients. Its result-driven professionals provide market-focused solutions to suppliers and customers across EMEA, Asia-Pacific and Americas, offering a range of comprehensive
Slide 6: Agenda
Agenda Page 6 • Company profile • Highlights 2018 • Financials 2018 • Outlook • Q&A
Slide 7: Highlights 2018
Highlights Page 7 Highlights 2018 Gross profit growth of 25% to EUR 536 million (+29% on a constant Gross profit currency basis) Operating Operating EBITA increase of 25% to EUR 202 million (+30% on a constant EBITA currency basis) Net result before amortisation and non-recurring items of EUR 140 mi
Slide 8: Highlights 2018 (continued)
Highlights Page 8 Highlights 2018 (continued) Acquisition of E.T. Horn, completed on 31 July 2018, supporting IMCD’s E.T. Horn strategy of offering its suppliers and customers national US coverage and dedicated segment expertise Acquisition of Velox GmbH, completed on 26 September 2018, expanding Ve
Slide 9: Agenda
Agenda Page 9 • Company profile • Highlights 2018 • Financials 2018 • Outlook • Q&A
Slide 10: Income statement
Financials 2018 Page 10 Income statement fx adj. EUR million 2018 2017 change change change Revenue 2,379 1,907 472 25% 29% Gross profit 536 429 107 25% 29% Gross profit in % of revenue 22.5% 22.5% 0.0% Operating EBITDA 208 166 Operating EBITDA in % of revenue 8.7% 8.7% Operating EBITA¹ 202 162 40 2
Slide 11: Income statement by region
Financials 2018 Page 11 Income statement Asia Holding EUR million EMEA Americas Pacific companies Total Gross profit 2018 308 158 70 536 2017 274 89 65 429 ∆ reported 12% 76% 8% 25% ∆ constant currency 14% 87% 15% 29% Gross profit in % of revenue 2018 24.8% 19.7% 20.9% 22.5% 2017 24.0% 19.8% 20.7% 2
Slide 12: Income statement (continued)
Financials 2018 Page 12 Income statement (continued) fx adj. EUR million 2018 2017 change change change Operating EBITA 202 162 40 25% 30% Amortisation of intangible assets (37) (34) (3) 9% Non-recurring income and expenses (2) (2) (0) 0 Net finance costs (19) (15) (4) 24% Non-recurring net finance
Slide 13: Net finance costs
Financials 2018 Page 13 Net finance costs EUR million 2018 2017 change Interest costs financing structure (17.3) (11.3) (6.0) Value changes in interest hedge contracts (0.1) 0.4 (0.5) Amortisation of finance costs (0.8) (1.6) 0.8 Interest costs re employee benefits (0.5) (0.2) (0.3) Currency exchang
Slide 14: Income tax expenses
Financials 2018 Page 14 Income tax expenses EUR million 2018 2017 change Regular income tax expenses (44.9) (36.8) (8.1) Adjustments for prior years (0.2) (2.0) 1.8 Reduction in tax rates 0.1 1.9 (1.8) (De-) recognition tax losses 1.4 0.6 0.8 Tax credits related to amortisation 4.5 3.6 0.9 Income ta
Slide 15: Cash EPS - proposed dividend
Financials 2018 Page 15 Cash EPS - proposed dividend EUR million 2018 2017 change change Result for the year 100 77 23 29% Amortisation of intangible assets 37 34 Tax credits related to amortisation (5) (4) Cash earnings 133 108 25 23% Weighted average number of share (x milion) 52.4 52.4 Cash earni
Slide 16: Balance Sheet
Financials 2018 Page 16 Balance Sheet EUR million 31 December 2018 31 December 2017 change Property, plant and equipment 25 19 6 Intangible assets 1,040 949 91 Other fin. assets/def tax assets 47 28 19 Working capital 400 314 85 Provisions/employee benefits (31) (21) (10) Deferred tax liabilities (8
Slide 17: Working capital
Financials 2018 Page 17 Working capital EUR million 31 December 2018 31 December 2017 change Inventories 354 266 88 in days of revenue * 49 47 2 Trade and other receivables 398 332 66 in days of revenue * 55 58 (4) Trade payables (264) (213) (50) in days of revenue * (36) (37) 2 Other payables (89)
Slide 18: Net debt
Financials 2018 Page 18 Net debt EUR million 2018 2017 change Loans and borrowings long term 481 367 114 Loans and borrowings short term 215 184 31 Cash and cash equivalents (85) (61) (24) Net Debt 611 490 121 Net Debt / Operating EBITDA ratio 1 2.8 2.8 0.0 December Bank December Covenants 2018 cond
Slide 19: Free cash flow
Financials 2018 Page 19 Free cash flow EUR million 2018 2017 change Operating EBITA 202 162 40 Depreciation 5 4 1 Operating EBITDA 207 166 41 Share based payments 2 3 (0) Capex (4) (3) (1) 1 ∆ Working capital (39) (4) (35) Free cash flow 166 161 5 2 Cash conversion ratio 80.2% 97.2% (16.9%) ¹ Invent
Slide 20: Agenda
Agenda Page 20 • Company profile • Highlights 2018 • Financials 2018 • Outlook • Q&A
Slide 21: Outlook
Page 21 Outlook IMCD operates in different, often fragmented market segments in multiple geographic regions, connecting many customers and suppliers across a very diverse product range. In general, results are impacted by macroeconomic conditions and developments in specific industries. Furthermore,
Slide 22: Agenda
Agenda Page 22 • Company profile • Highlights 2018 • Financials 2018 • Outlook • Q&A