Recticel Sa · EURONEXT:RECT
Recticel Sa — Investor Presentation (November 2019)
38 slides from Recticel Sa's investor presentation, November 2019
Slide 1: General Group Presentation
RECTICEL General Group Presentation November 2019 GENERAL PRESENTATION OF THE RECTICEL GROUP 1
Slide 2: Table of contents
Table of contents 1 Key highlights – Recticel in a nutshell 2 Introduction to the Recticel Group 3 Strategy 4 4 business lines 5 Financials 6 Annexes GENERAL PRESENTATION OF THE RECTICEL GROUP 2
Slide 3: Profile
Profile Belgian multinational European leader in polyurethane application Diversified activities over 4 business lines Globally active 83 locations in 29 countries ca. 7,266 employees (excluding minority stakes in joint ventures) (excluding minority stakes in joint ventures) FY2018 combined net 90%
Slide 4: Key highlights
Key highlights 1 European leader in polyurethane applications 2 Strong underlying market fundamentals and characteristics of polyurethane 3 Market-driven innovation is at the heart of Recticel’s growth strategy 4 Clearly defined growth strategy based on a highly integrated business model 5 Sustainab
Slide 5: Table of contents
Table of contents 1 Key highlights – Recticel in a nutshell 2 Introduction to the Recticel Group 3 Strategy 4 4 business lines 5 Financials 6 Annexes GENERAL PRESENTATION OF THE RECTICEL GROUP 5
Slide 6: Recticel at a glance
Recticel at a glance Recticel is an important innovator in the industry, being the European #1 & Worldwide #2 in polyurethane applications Its activities are concentrated in Europe (90% of sales) and growing in Asia (6% of sales) and USA (4% of sales) Recticel generates, on a combined basis, s
Slide 7: Leading player offering specific polyurethane solutions to global customers
Leading player offering specific polyurethane solutions to global customers Global polyurethane markets¹ Global PU applications market of €50bn 17% Worldwide annual PU raw materials consumption of ~13.5 million tons 28% Furniture Highly attractive PU applications market: Construction 12% Indus
Slide 8: Production process serving all 4 business lines
Production process serving all 4 business lines Type and characteristics of final products depend on the manufacturing process: 1 Laminated foaming resulting in rigid foam panels • • 2 Traditional foaming of raw materials resulting in flexible foam blocks or moulded parts • 3 Sprayed raw materials f
Slide 9: Significant synergies within the Group
Significant synergies within the Group 1 Strong technology synergies throughout the organization Centralized R&D as a platform for innovations in multiple segments Sharing of experience and know-how in both foam manufacturing and converting leading to cross-fertilization throughout the organizat
Slide 10: Table of contents
Table of contents 1 Key highlights – Recticel in a nutshell 2 Introduction to the Recticel Group 3 Strategy 4 4 business lines 5 Financials 6 Annexes GENERAL PRESENTATION OF THE RECTICEL GROUP 10
Slide 11: Strategy focused on being the leading provider of high value added solutions in its core markets
Strategy focused on being the leading provider of high value added solutions in its core markets… The building blocks of the Group’s strategy are illustrated as follows: Segment Strategy Sustainable Innovation International Expansion Simplification Human Organisation Sustainability Digitalisation
Slide 12: Implemented through a thorough business line assessment
…implemented through a thorough business line Sustainable Innovation Business Line Strategy Simplification International Expansion assessment… Sustainability The strategic plan prioritizes resource allocation based on the relative attractiveness of the end-markets and the competitive strength of the
Slide 13: Leading to differentiated business line strategies
…leading to differentiated business line strategies Business Line Strategy Sustainable International Innovation Simplification Expansion Sustainability ►Growth through international expansion, innovation and the Growth through international expansion, innovation and the Organically introduction of n
Slide 14: Business aligned sustainable innovation – innovation programs
Business aligned sustainable innovation – 5 innovation programs Fit² Silencing Low Lambda X-Lite Sustainability Bedding Flexibe Foams Insulation Automotive Bedding Flexible Foams Insulation Automotive Flexible Foams Insulation ® Geltex 2.0 Center of competence for Xentro® insulation ColoSense® X-Lit
Slide 15: Recent innovations and product launches in Insulation
Business Line Strategy Large number of recent innovations and product Sustainable Innovation Simplification International Expansion Sustainability launches in the Insulation business line • Product line Home® (all-in-one isolation system for DIY) • Iso-finish® (external insulation concept) • Lambda-
Slide 16: Launch of GELTEX 2.0 in Bedding
Business Line Strategy Launch of GELTEX® 2.0 - the largest and most Sustainable Innovation Simplification International Expansion Sustainability important innovation of the last decade in Bedding • GELTEX® 2.0 combines • optimal pressure distribution • ideal support • maximum permeability/climate co
Slide 17: New generation of foams launched within Flexible Foams
New generation of foams launched within the Sustainable Innovation Business Line Strategy Simplification International Expansion Flexible Foams business line Sustainability • New acoustic foams leading to new contracts for SpaceX • Development of new comfort foams: GELTEX® and angelpearl® for the be
Slide 18: Launch of Colo-sense Lite in Automotive
Launch of Colo-sense® Lite, a new high Sustainable Innovation Business Line Strategy Simplification International Expansion performance skin, in the automotive business line Sustainability ► Colo-sense® Lite high performance skin allows for a 25% weight reduction, responding to the OEM’s constant se
Slide 19: Overall simplification of the Group leading to increased efficiency
Business Line Strategy Overall simplification of the Group leading to Innovation Simplification International Expansion Sustainability increased efficiency and reduced fixed costs Realized streamlining 2010-2018 Future actions 2019-2020 # Locations: The Group is committed to continue its efforts
Slide 20: International expansion strategy backed by strong market positions in Europe
Business Line Strategy International expansion strategy backed by strong Innovation Simplification International Expansion Sustainability market positions in Europe Recticel is a true international group pursuing further growth through international expansion inside and outside Europe Recently rea
Slide 21: Embracing sustainability to create value for all stakeholders
Business Line Strategy Embracing sustainability to create value for all Innovation Simplification International Expansion Sustainability stakeholders Embracing sustainability creates a significant competitive edge, reduces cost, fosters innovation and thus creates value for all stakeholders Prio
Slide 22: Sustainability report in accordance with GRI
Sustainability report in accordance with Global Reporting Initiatives (GRI) GENERAL PRESENTATION OF THE RECTICEL GROUP 22
Slide 23: Table of contents
Table of contents 1 Key highlights – Recticel in a nutshell 2 Introduction to the Recticel Group 3 Strategy 4 4 business lines 5 Financials 6 Annexes GENERAL PRESENTATION OF THE RECTICEL GROUP 23
Slide 24: 4 Segments
4 Segments Combined 2018 sales Insulation Combined 2018 sales Bedding Combined 2018 sales Flexible Foams Combined 2018 sales Automotive EUR 271.2 million EUR 243.8 million EUR 621.5 million EUR 363.9 million GENERAL PRESENTATION OF THE RECTICEL GROUP 24
Slide 25: #2 position in Europe backed by structural growth drivers and innovation capacity
#2 position in Europe backed by structural growth drivers and innovation capacity Market dynamics Key strengths Structurally growing market for thermal insulation in Europe #2 player in Europe in PUR/PIR with an estimated market share • Driven by the EU regulation aiming to save energy and reduc
Slide 26: Financial performance driven by recent product launches and expansion projects
Financial performance driven by recent product launches and expansion projects Key financials Recent developments in million € 2018 2017 2016 Recent introduction of new innovative products: Sales 271.2 272.3 234.1 • Iso-finish® external insulation concept Adjusted EBITDA 44.7 40.3 33.1 • “Do-it-Yo
Slide 27: Strong growth of PU foam market supporting further strengthening of leading position
Strong growth of PU foam market supporting further strengthening of Recticel’s leading position Market dynamics Key strengths Addressable market of €1.7bn #2 player in Europe with an average estimated market share of • Total European market of ~€3bn ~17% in its key markets • Total Global market
Slide 28: Successful introduction of GELTEX inside 2.0 as a platform for future growth
Successful introduction of GELTEX® inside 2.0 as a platform for future growth Key financials Recent developments in million € 2018 2017 2016 Successful introduction of new innovative GELTEX® inside 2.0 Sales 243.8 272.1 292.9 products at the IMM Fair in Cologne Adjusted EBITDA 6.8 15.1 15.7 Succ
Slide 29: #1 position in Europe and recent innovations adding to global reach
#1 position in Europe and recent innovations adding to the capacity to increase global reach Market dynamics Key strengths European market of ~5.9m tons #1 provider of comfort foams and technical foams in Europe Expected volume CAGR ‘11-’18 of +5% Proven innovation capacity related to develo
Slide 30: New generation of innovative foam products leading to contract wins
New generation of innovative foam products leading to important contract wins Key financials Recent developments Important streamlining of industrial footprint realized since in million € 2018 2017 2016 Sales 621.5 626.1 607.2 2010 Adjusted EBITDA 41.5 40.6 46.3 Prudent geographical expansion in
Slide 31: Unique technology and strong position serving a recovering industry
Unique technology and strong position serving a recovering industry Market dynamics Key strengths 2008-2010: Significant disruptions due to global economic Interiors crisis • Unique patented Interiors technology (Colo-fast® Spray and Colo-Sense® Lite) for the production of light stable skins in
Slide 32: Recovering sales supported by strong order books
Recovering sales supported by strong order books Key financials Recent developments Significant Interiors order book in million € 2018 2017 2016 Sales 363.9 350.4 288.9 Adjusted EBITDA 25.9 25.6 19.9 February 2019: Partial divestment of stake in Proseat joint as % of sales 7.1% 7.3% 6.9% venture
Slide 33: Table of contents
Table of contents 1 Key highlights – Recticel in a nutshell 2 Introduction to the Recticel Group 3 Strategy 4 4 business lines 5 Financials 6 Annexes GENERAL PRESENTATION OF THE RECTICEL GROUP 33
Slide 34: Financials – segment data (combined sales figures)
Financials – segment data (combined sales figures) Combined 2018 sales Automotive GENERAL PRESENTATION OF THE RECTICEL GROUP 34
Slide 35: Financials – segment data (combined figures)
Financials – segment data (combined figures) in million € 2018 2017 2016 in million € 2018 2017 2016 Sales 271.2 272.3 234.1 Sales 243.8 272.1 292.9 Adjusted EBITDA 44.7 40.3 33.1 Adjusted EBITDA 6.8 15.1 15.7 as % of sales 16.5% 14.8% 14.1% as % of sales 2.8% 5.6% 5.4% Adjusted EBIT 38.1 33.7 26.8
Slide 36: Key Financial Figures
Key Financial Figures GENERAL PRESENTATION OF THE RECTICEL GROUP 36
Slide 37: Thank you for your attention! Q&A
Thank you for your attention! Q&A GENERAL PRESENTATION OF THE RECTICEL GROUP 37
Slide 38: Contacts
Contacts Recticel International Headquarters Investor Relations Press 2, avenue des Olympiades/Olympiadenlaan, 2 Michel De Smedt Olivier Chapelle, CEO B-1140 Brussels Email desmedt.michel@recticel.com Email chapelle.olivier@recticel.com Tel +32 (0)2 775 18 11 Tel +32 (0)2 775 18 09 Tel +32 (0)2 775