Holland Colours Nv · EURONEXT:HOLCO
Holland Colours Nv — Investor Presentation (November 2016)
28 slides from Holland Colours Nv's investor presentation, Nov 29, 2016
Slide 1: Meeting of Major Shareholders
MEETING OF MAJOR SHAREHOLDERS APELDOORN NOVEMBER 29, 2016 1
Slide 2: Agenda
Agenda • Introduction Mr. R. Zoomers • Half Year Results Mrs. M.G. Kleinsman • Strategy Mr. R. Harmsen 2
Slide 3: Introduction
INTRODUCTION MR. R. ZOOMERS 3
Slide 4: Present
Present Holland Pigments BV • Mr. H. Mannak • Mrs. A. Eikelenboom OtterBrabant Beheer BV • Mr. J.W. Friso Lazard Frères Gestion SAS • Mr. J. Ogilvy Elned Holding BV • Mr. J. M. De Heer Holland Colours NV Mr. R. Zoomers Mr. R. Harmsen Mrs. M.G. Kleinsman 4
Slide 5: HY Results 2016/2017
HY RESULTS 2016/2017 MRS. M.G. KLEINSMAN 5
Slide 6: Key Figures Group: Revenue
Holland Colours Key Figures Group Half Year Results REVENUE (in € mln) 39.0 37.1 35.0 34.9 33.1 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 6
Slide 7: Key Figures Group: Revenue per focus market
Holland Colours Key Figures Group Half Year Results REVENUE (per focusmarket, index 2012/2013 = 100) 120 115 110 105 100 95 90 85 80 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 7
Slide 8: Key Figures Group: Operating Result
Holland Colours Key Figures Group Half Year Results OPERATING RESULT (in € mln) 4.0 3.5 3.2 3.1 2.9 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 Return on sales 9.1% 10.0% 8.8% 8.4% 10.3% 8
Slide 9: Key Figures Division Europe
Holland Colours Key Figures Division Europe Half Year Results REVENUE OPERATING RESULT (in € mln) (in € mln) 19.5 1.5 1.5 18.7 18.7 18.5 17.9 1.2 1.0 1.0 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 9
Slide 10: Key Figures Division Americas
Holland Colours Key Figures Division Americas Half Year Results REVENUE OPERATING RESULT (in $ mln) (in $ mln) 2.5 16.4 15.1 15.1 1.8 14.1 14.2 1.6 1.4 1.5 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 10
Slide 11: Key Figures Division Asia
Holland Colours Key Figures Division Asia Half Year Results REVENUE OPERATING RESULT (in $ mln) (in $ mln) 6.6 6.4 1.2 6.2 0.9 5.6 0.8 5.3 0.5 0.2 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 11
Slide 12: Key Figures Group: Incoming Cashflow
Holland Colours Key Figures Group Full Year Results INCOMING CASHFLOW (in € mln) 6 5 4 3 2 1 0 2011/2012 2012/2013 2013/2014 2014/2015 2015/2016 -1 -2 -3 Operational cashflow excl. working capital Changes in working capital 12
Slide 13: Key Figures Group: Outgoing Cashflow
Holland Colours Key Figures Group Full Year Results OUTGOING CASHFLOW before redemption of loans (in € mln) 4 4 3 3 2 2 1 1 0 2011/2012 2012/2013 2013/2014 2014/2015 2015/2016 Dividend Capex 13
Slide 14: Key Figures Group: Cashflow before redemption of loans
Holland Colours Key Figures Group Full Year Results CASHFLOW before redemption of loans (in € mln) 9 8 7 6 5 4 3 2 1 0 2011/2012 2012/2013 2013/2014 2014/2015 2015/2016 -1 -2 Incoming cashflow Outgoing cashflow Net cashflow before redemption of loans 14
Slide 15: Strategy
STRATEGY MR. R. HARMSEN 15
Slide 16: Strategy
Strategy • Holland Colours’ current position • Strategic direction 16
Slide 17: Strategy: Starting points
Strategy Starting points • Grow to achieve continuity • More focussed • Project Management embedded in organization 17
Slide 18: Holland Colours current market position
Holland Colours current market position Europe / Middle-East / Africa (EMEA), Americas • Relevant market share in niche markets (PVC, transparent PET) • Based on unique solids colorants technology (Holcobatch, Holcoprill) • Limited possibilities in other polymers and / or other applications Asia (In
Slide 19: Global Polymer Demand
Global Polymer Demand Holland Colours operates in small part of the market Source: AMI 19
Slide 20: Holland Colours is by choice active in a limited part of the market
Holland Colours is by choice active in a limited part of the market No presence in (bulk) black & white business, nor/limited in additive segment Source: AMI 20
Slide 21: Current position - Competitive playing field
Holland Colours current position - Competitive playing field Selected number of global (multi – regional) players • Such as Clariant, Polyone, Schulman, PennColor, Repi, Ampacet Many local players with focus on one / a few application(s) 21
Slide 22: Market dynamics
Market dynamics Colorants technology mature • Except for building in Asia the switch from pigments to color concentrates has happened • BASF & Clariant set apart their pigment business, following Bayer who split it off into Lanxess in 2005: limited new pigment chemistries • Market is showing some co
Slide 23: Holland Colours Position - Summary
Holland Colours Position - Summary Solid colorants • Unique products and processes • Strong position in niche markets: Building & Construction (PVC) and Packaging (PET) • Limited position outside these markets / polymers Liquid colorants • Relatively important in Europe and Asia • Many diverse appli
Slide 24: Strategy
Strategy • Holland Colours’ Current Position • Strategic direction 24
Slide 25: Strategic growth direction
Strategic growth direction 25
Slide 26: Strategic direction
Strategic direction Broaden product portfolio into polymeric products by either in-house development and / or a technology driven acquisition • The in-house development is progressing • Acquisition opportunity to speed up process, only based on clearly defined criteria In parallel continue organic g
Slide 27: Strategic direction: Operational Excellence
Strategic direction As well as Operational Excellence to keep our cost in line • Product and Process efficiency • Improved sales funnel process • Improve the color matching process efficiency • Execute on findings Activity Based Costing • Implement a Project Management Culture 27
Slide 28: Major risks
Major risks 1. Dependence on PVC Building & Construction and PET Packaging markets 2. Polyolefins. While internal development looks promissing drawbacks can still occure: • Test marketing in early stage • Difficulty to attract interest of customers in new markets with new product range • Different a
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