Holland Colours Nv · EURONEXT:HOLCO
Holland Colours Nv — Shareholder Meeting (July 2013)
50 slides from Holland Colours Nv's shareholder meeting presentation, Jul 11, 2013
Slide 1: General Meeting of Shareholders
General Meeting of Shareholders Apeldoorn, 11 July 2013 1
Slide 2: Agenda
Agenda 1. Opening 2. Management report on the year 2012/2013 3. Strategy Holland Colours Group 4. Approval of the financial statements 2012/2013 5. Reserves and dividend policy 6. A. Approval of the profit appropriation B. Approval of the dividend for the year 2012/2013 7. Management Board discharge
Slide 3: Agenda
Agenda 1. Opening 2. Management report on the year 2012/2013 3. Strategy Holland Colours Group 4. Approval of the financial statements 2012/2013 5. Reserves and dividend policy 6. A. Approval of the profit appropriation B. Approval of the dividend for the year 2012/2013 7. Management Board discharge
Slide 4: 2012/2013 was a good year!
2012/2013 was a good year! FOUNDATION RECORD TOP3 LAID FOR THE SALES HISTORICAL FUTURE PROFIT- ABILITY HCA | HOLLAND COLOURS
Slide 5: Two of the three corporate objectives were realized
Two of the three corporate objectives were realized. 5
Slide 6: Record sales and increased gross margin, 70% higher net result
Record sales and increased gross margin, 70% higher net result. 6
Slide 7: Increased cash flow due to higher profit and lower working capital
Increased cash flow due to higher profit and lower working capital. Investments increased. 7
Slide 8: Working capital 8% lower with sales 8% up
Working capital 8% lower with sales being 8% up. Inventories lower, trade debtors higher. Accrual for profit sharing. Inventories Trade- and other receivables 8
Slide 9: HCA met all covenants agreed with the bank
HCA met all covenants agreed with the bank. The agreed ratios improved. 9
Slide 10: Net result per share increased to € 3.40
Net result per share increased to € 3.40 . Price/earnings ratio of 6.5 end of year. 10
Slide 11: In short, 2012/2013 was a good year!
In short, 2012/2013 was a good year! 11
Slide 12: Comparable sales development in the focus markets
Comparable sales development in the focus markets. Specialties up by+6%. Currency impact +3%. 12
Slide 13: Comparable sales growth in all regions excluding currency
Excluding currency influences, comparable sales growth in all regions. 13
Slide 14: Sales growth highest in the 1st half year
Sales growth versus ‘11/’12 the highest in the 1st half year. Net margin % growth in particular in the 2nd half year. 14
Slide 15: Europe: turn-around in the operating result
Europe: turn-around in the operating result, on aggregate due to sales- and margin increase and higher costs. 15
Slide 16: Americas: growth in Building & Construction and Packaging
Americas: growth in Building & Construction and Packaging, higher margin. 16
Slide 17: Asia: disappointing sales growth, lower net result
Asia: relatively disappointing sales growth with lower gross margin and higher costs: lower net result. 17
Slide 18: In short, 2012/2013 was a good year!
In short, 2012/2013 was a good year! 18
Slide 19: Foundation laid for the future
Foundation laid for the future. • Organisational strengthening / change: o Integration NV and Europe BV materialized; o Global Director Operations assigned; o Business Development staff member hired; o Sales & Marketing Manager Europe in position; • Strategy is being revisited (see agenda item 3) 19
Slide 20: Sales from new products increased
Sales originating from new products increased, but the contribution still lags our objectives. • Sales growth from new products supported by a.o.: o Holcomer, o colour concentrates for oxygen-barrier applications, and o colour concentrates based on innovative carrier systems. • Patent applications w
Slide 21: Marginal increase of the number of employees in 2012/2013
Marginal increase of the number of employees in 2012/2013. • Number of employees increased from 383 fte to 387 fte end of year; • Average number of employees marginally higher than last year; • Number of accidents at work was 3 (of which 2 in Apeldoorn and 1 in Hungary), versus 2 in 2011/2012; • The
Slide 22: Conclusions 2012/2013
Conclusions 2012/2013 • Persistent challenging economic conditions; • Sharply higher earnings and markedly higher sales; • Sales growth in all divisions and focus markets; • Operating profit € 4.9 million (2011/2012: € 3.2 million), Net result € 2.9 miljoen (2011/2012: € 1.7 million); • All division
Slide 23: Outlook for 2013/2014
Outlook for 2013/2014 • The economic climate is expected to remain ucertain in 2013/2014: – In Europe recovery is not imminent, – the American economy is expected to show cautious recovery, – Asia economic conditions are generally more positive; • For Packaging and Silicones & Elastomers not linked
Slide 24: The 2013/2014 challenges
The 2013/2014 challenges • Recovery of volume growth; • Realize (renewed) sales growth in China; • Innovative success; • Efficient-, sustainable- and safe operations; • Strategy execution. 24
Slide 25: Agenda
Agenda 1. Opening 2. Management report on the year 2012/2013 3. Strategy Holland Colours Group 4. Approval of the financial statements 2012/2013 5. Reserves and dividend policy 6. A. Approval of the profit appropriation B. Approval of the dividend for the year 2012/2013 7. Management Board discharge
Slide 26: Holland Colours
HOLLAND COLOURS
Slide 27: Agenda
Agenda • Why Change? • Strategic direction • Strategic review process: • The strategic redefinition approach: • Operational and organizational efficiency • Commercial agility • Ambitions • Execution 27
Slide 28: Holland Colours – a special company
Holland Colours – a special company • Almost 34 years of consistent profitability • Employee ownership • Strong & unique productbase • Global presence • Loyal customers 28
Slide 29: The results are good… Why change?
The results are good… Why change? 29
Slide 30: Reasons for re-visiting our strategy
Reasons for re-visiting our strategy • Main focus markets have limited growth perspective • Main geographical markets show limited organic growth • (Competitive) playing field is changing • No/not enough top line growth to compensate (further) cost growth 30
Slide 31: Strategic direction
Strategic direction HOLLAND COLOURS
Slide 32: Vision 2018
Vision 2018 • Leading player in selected niche markets • Zero harm • Sound base through critical mass • Aligned organization: one global company / one global team • Good and sustainable shareholder return 32
Slide 33: Directions for the future
Directions for the future • Market/customer driven • Profit rather than margin driven • Create synergy • Focussed innovation 33
Slide 34: Strategy process
Strategy process HOLLAND COLOURS
Slide 35: The strategic journey so far
The strategic journey sofar • July ’12 - “Directions for the future” discussion paper • July ’12 - “Directions for the future” shared with General Meeting of Shareholders • August ’12 - Operational meeting in Budapest • Dec ‘12/Jan ’13 - Executive Team Meeting • January ’13 - Operational meeting in
Slide 36: The strategic redefinition approach
The strategic redefinition approach Improve Improve commercial cost- agility efficiency “Work-as-One” Optimize Work towards cash & NWC operational effectiveness excellence 36
Slide 37: Operational and Organizational Efficiency
Operational and Organizational Efficiency (3 blue puzzle pieces) • Mapping & measuring the current figures & trends through internal and external bechmarking • Exploring / defining the road ahead 37
Slide 38: Main conclusions of the benchmark done
Main conclusions of the benchmark done. • A lot is done well, which we should maintain or expand; • On other KPI’s, we can learn from other companies; • For some processes, we should leverage strengths of one region over the others; • ‘Becoming better’ means: o Doing more together, with the same res
Slide 39: Improve commercial agility – approach
Improve commercial agility – approach • Discuss the markets (Building/Packaging/Elastomers/Specialties): o Define application / geo matrix o Internal market estimates & trends and expectations o External market insights & questions, existing & new markets • Make decisions on what application–market
Slide 40: Ambitions 2018
Ambitions 2018 HOLLAND COLOURS
Slide 41: Stakeholder items 2018
Stakeholder items 2018 • Zero Harm • Generate 10% average year-over-year ‘Earnings per Share’ growth • Achieve Sustainability targets (to be defined) • Innovation Index > 10% of total net sales • Customer satisfaction improved (to be defined) 41
Slide 42: Financial ambitions 2018
Financial ambitions 2018 - improve long term profitability and cash & (working) capital effectiveness • Realized average net-sales growth double-digit • 10 % Operating Profit as % of net sales • >15 % Return on Investment (ROI) • 20 % Operating Working Capital (OWC) as % of net sales 42
Slide 43: Achieve financial ambitions 2018 by
Achieve financial ambitions 2018 by: A. Improve commercial agility: • Higher market share in (emerging) markets • Enter new product markets • Improved innovation effectiveness • Improved market intelligence B. Improve organizational & operational efficiency: • More efficient usage of production capa
Slide 44: Markets: growth areas widely defined
Growth areas widely defined PRODUCTS MARKETS Existing New Existing +25.0% +12.5% New +37.5% +25.0% 44
Slide 45: Anticipated relative growth highest in Asia and Specialties
Anticipated relative growth highest in Asia and in Specialties in EMEA and Americas DIVISIONS EMEA Americas Asia Total B&C + ++ +++ + MARKETS Packaging + ++ +++ + S&E ++ ++ +++ ++ Specialties +++ +++ + ++ Total + ++ ++ ++ 45
Slide 46: Packaging and S&E support growth in emerging markets
Packaging and Silicones & Elastomers support the anticipated growth in emerging markets MARKET MATURITY Mature Emerging Total B&C + ++ + MARKETS Packaging ++ +++ ++ S&E + +++ ++ Specialties +++ + ++ Total ++ ++ ++ 46
Slide 47: Execution
Execution • Project and programmed approach • 12 projects defined: o Commercial agility: 6 o Organizational- and operational efficiency: 6, focusing on a.o.: o Intensify sustainability, o Improved working capital usage, o Strategic HR management, o Benchmarking and Activity Based Costing implementat
Slide 48: Conclusions
Conclusions • A thorough review process took place • Ample growth opportunities were identified • Ambitions were defined • Management believes the ambitions are challenging but doable • A project & programmed approach supports the execution 48
Slide 49: Thank you.
ORE ae Thank you. HOLLAND COLOURS
Slide 50: Holland Colours
HOLLAND COLOURS