Recticel SA · EURONEXT:RECT
Recticel SA — KBC Small Cap Conference 2012
28 slides from Recticel SA's conference presentation, Dec 11, 2012
Slide 1: Recticel Strategy & Trading Update
RECTICEL STRATEGY & TRADING UPDATE KBC Small Cap Conference Brussels, 11 December 2012 Jean-Pierre Mellen – CFO Recticel Michel De Smedt – IRO Recticel
Slide 2: Portfolio strategy – Internationalization - Simplification
Reminder of Recticel strategy: 1 Portfolio strategy – Internationalization - Simplification 2 Strategic actions 3 9M2012 Trading Update 4 Highlights per segment 5 Miscellaneous 6 Outlook FY2012 11 Dec 2012 KBC Small Cap Conference 2
Slide 3: Reminder of Recticel Strategy
REMINDER OF RECTICEL STRATEGY ► Recticel will pursue polyurethane applications, strive for growth via innovation and new product introduction, allocate resources on highest growth segments, develop on a broader international basis, improve capacity utilization and reduce complexity : Focus Insulat
Slide 4: Reminder of Recticel Strategy: Financial objectives
REMINDER OF RECTICEL STRATEGY ► Financial objectives: Achieve a CAGR of its sales turnover of minimum 5%, at same scope of consolidation Generate double-digit growth in earnings and dividends Deliver a ROCE (EBIT / Average capital employed) of at least 15%. Lower the gearing ratio (Net Finan
Slide 5: Reminder of Recticel Strategy: 9-box grid
REMINDER OF RECTICEL STRATEGY ► 9-box grid: Portfolio strategy ► Positive contribution of PU to global megatrends such as: Energy conservation and environmental protection Food & water supply due to demographic developments Comfort, acoustics, luxury Need for strong and lightweight materials
Slide 6: Strategic actions
Reminder of Recticel strategy: 1 Portfolio strategy – Internationalization - Simplification 2 Strategic actions 3 9M2012 Trading Update 4 Highlights per segment 5 Miscellaneous 6 Outlook FY2012 11 Dec 2012 KBC Small Cap Conference 6
Slide 7: Strategic Actions: Greenfield Insulation Plant in Bourges
STRATEGIC ACTIONS ► Greenfield Insulation Plant in Bourges Lean plant Limited product range aiming at French market Lower logistics costs Investment : EUR 23 million Capacity : 400,000 m³/year Start of production : Sept 2012 → full capacity 2014 11 Dec 2012 KBC Small Cap Conference 7
Slide 8: Strategic Actions: External Insulation ISOFINISH
STRATEGIC ACTIONS ► External Insulation for Renovation - ISOFINISH Innovative concept • continuous insulation shield • adjustable external wall system • freedom of wall finishing 11 Dec 2012 KBC Small Cap Conference 8
Slide 9: Strategic Actions: External Insulation ETICS
STRATEGIC ACTIONS ► External Insulation for Renovation – ETICS ETICS = External Thermal Insulation Composite System Step 3: Step 1: Base coat Supporting wall with mesh Step 2: Mounting & fixing insulation Eurothane EW PIR + special glassfleece 600x1200x100mm Step 4: Straight edges Finishing coat 11
Slide 10: Strategic Actions: Geltex comfort foam for bedding
STRATEGIC ACTIONS ► Geltex : New Comfort Foam for Bedding New generation of foam developed by Recticel Optimal pressure distribution Maximum open celled Market introduction in Jan-2012 ► ZNOOOZ® : trial for specific own-developed retail distribution concept in Belgium 11 Dec 2012 KBC Small Cap
Slide 11: Strategic Actions: International Expansion
STRATEGIC ACTIONS ► International Expansion China : - Automotive Interiors (3 plants) : Ningbo, Shengyang, Beijing → Growing with BMW, Volvo, Daimler and VW - Flexible Foams (1 plant): Shanghaï. 2nd plant likely in 2013 in Chenzen →Technical - fast growing India : - Flexible Foams (1 plant): Mumbai.
Slide 12: Strategic Actions: Simplification
STRATEGIC ACTIONS ► Simplification 2009 2012 # Segments 5 5 # Joint ventures 11/11 5/8 (T1/T2) # Plants 124 103 # Employees 9,883 < 8,000 11 Dec 2012 KBC Small Cap Conference 12
Slide 13: Strategic Actions: Management Committee
STRATEGIC ACTIONS ► Management Committee : renewed at 50% Recticel Board of Directors Remuneration and Nomination Chairman Audit Committee Committee Etienne DAVIGNON Chief Executive Officer Olivier CHAPELLE Chief Financial Officer IT & Business Support Manager Jean-Pierre MELLEN Betty BOGAERT Chief
Slide 14: Strategic Actions: Refinancing
STRATEGIC ACTIONS ► Refinancing Decision to refinance early made in May 2011 due to expected reduced credit availability Refinancing announced in December 2011: new club deal of EUR 175 million maturing in Dec 2016 : • for 15 months, Recticel accepts higher margin and financial costs • but assur
Slide 15: Strategic Actions: Other financials
STRATEGIC ACTIONS ► Other financials 11 Dec 2012 KBC Small Cap Conference 15
Slide 16: 9M2012 Trading Update
Reminder of Recticel strategy: 1 Portfolio strategy – Internationalization - Simplification 2 Strategic actions 3 9M2012 Trading Update 4 Highlights per segment 5 Miscellaneous 6 Outlook FY2012 11 Dec 2012 KBC Small Cap Conference 16
Slide 17: 9M2012 Trading Update
9M2012 TRADING UPDATE y/y: -1.3% y/y: -10.1% Automotive ► Net Sales: 22.8% Flexible Foams From EUR 1 036.4M to EUR 996.6M (-3.8%) Insulation 42.9% • 1Q/12: from EUR 359.6M to EUR 351.1M (-2.4%) y/y: 2.8% 15.5% • 2Q/12: from EUR 340.1M to EUR 329.1M (-3.2%) Bedding 18.9% • 3Q/12: from EUR 336.6M to
Slide 18: 9M2012 Trading Update: Financial situation and shareholders' agreement
9M2012 TRADING UPDATE ► Financial situation On 30 September 2012, the Group net financial debt amounted to EUR 176.7 million excluding the drawn amounts under off-balance non-recourse factoring/forfeiting programs of EUR 43.1 million; compared to respectively EUR 191.8 million and EUR 47.6 million o
Slide 19: Highlights per segment
Reminder of Recticel strategy: 1 Portfolio strategy – Internationalization - Simplification 2 Strategic actions 3 9M2012 Trading Update 4 Highlights per segment 5 Miscellaneous 6 Outlook FY2012 11 Dec 2012 KBC Small Cap Conference 19
Slide 20: Insulation segment
in million EUR 1H/2011 1H/2012 D ► Key events 9M2012 Sales 108,6 109,5 0,8% REBITDA 18,2 18,8 3,4% Sales from EUR 163.4M to EUR 168.0M (+2.8%) as % of sales 16,7% 17,2% 1Q2012: from EUR 48.4M to EUR 53.0M (+9.5%) EBITDA 18,2 18,8 3,4% as % of sales 16,7% 17,2% 2Q2012: from EUR 60.3M to EUR 56.
Slide 21: Bedding segment
in million EUR 1H/2011 1H/2012 D ► Key events 9M2012 Sales 141,6 133,6 -5,6% REBITDA 7,7 4,6 -39,9% Sales from EUR 218,4M to EUR 201.8M (-7.6%) as % of sales 5,4% 3,5% • 1Q2012: from EUR 78.9M to EUR 73.6M (-6.7%) EBITDA as % of sales 7,5 5,3% 4,0 3,0% -46,5% • 2Q2012: from EUR 62.7M to EUR 60.0M
Slide 22: Flexible Foams segment
in million EUR 1H/2011 1H/2012 D ► Key events 9M2012 Sales 302,2 303,5 0,4% REBITDA 13,5 17,2 27,4% Sales from EUR 449.5M to EUR 443.7M (-1.3%) as % of sales 4,5% 5,7% • 1Q2012: from EUR 159,8M to EUR 157.4M (-1.5%) EBITDA as % of sales 14,0 4,6% 14,8 4,9% 5,8% • 2Q2012: from EUR 142,4M to EUR 146
Slide 23: Automotive segment
in million EUR 1H/2011 1H/2012 D ► Key events 9M2012 Sales 175,1 161,3 -7,9% REBITDA 16,3 15,8 -3,0% Sales from EUR 249.4M to EUR 224.2M (-10.1%) as % of sales 9,3% 9,8% • 1Q2012: from EUR 88.1M to EUR 82.4M (-6.5%) EBITDA as % of sales 15,7 9,0% 14,3 8,9% -8,9% • 2Q2012: from EUR 87.0M to EUR 78.
Slide 24: Miscellaneous
Reminder of Recticel strategy: 1 Portfolio strategy – Internationalization - Simplification 2 Strategic actions 3 9M2012 Trading Update 4 Highlights per segment 5 Miscellaneous 6 Outlook FY2012 11 Dec 2012 KBC Small Cap Conference 24
Slide 25: Miscellaneous: Contingent assets & liabilities
MISCELLANEOUS ► Contingent assets & liabilities Inspection by the Directorate for Competition of the EC • No further developments to be reported Inspection by the German Federal Cartel Office (“Bundeskartellamt”) • No further developments to be reported 11 Dec 2012 KBC Small Cap Conference 25
Slide 26: Outlook 2012
OUTLOOK 2012 ► Given the increasingly challenging and uncertain environment in the economies in which Recticel operates, the Board of Directors reiterates that it is not in a position to assess the growth potential for the remainder of 2012. ► In this environment the Group continues to act in order
Slide 27: Thank you for your attention!
Thank you for your attention ! Questions & Answers 11 Dec 2012 KBC Small Cap Conference 27
Slide 28: Contacts
CONTACTS Investor Relations Michel De Smedt Press Jan De Moor Recticel International Headquarters Email: desmedt.michel@recticel.com Email: demoor.jan@recticel.com 2, avenue des Olympiades/Olympiadenlaan, 2 Tel: +32 (0)2 775 18 09 Tel: +32 (0)2 775 18 95 B-1140 Brussels Mob: +2 (0) 479 91 11 38 Mob: