Tessenderlo Group N.v. · EURONEXT:TESB
Tessenderlo — Investor Presentation (December 2008)
44 slides from Tessenderlo's investor presentation, December 2008
Slide 1: General Presentation: Bringing Chemistry to Life
General Presentation Bringing Chemistry to Life
Slide 2: Mission Statement
Mission Statement To ensure the Health and Safety of each individual and to protect the Environment To supply top quality products and excellent service to our customers To ensure stable growth in profits so ensuring the lasting confidence of the shareholders To offer a work environment that promote
Slide 3: Contents
Contents Overview Review per Activity Financial Performance Shareholders’ Value 3
Slide 4: Tessenderlo Group Today
Tessenderlo Group Today A diversified international group operating in 3 sectors: Chemicals, Plastics Converting and Specialities About 8,100 employees distributed over more than 100 branches in 20 countries achieving a consolidated revenue of 2.406 billion EUR in 2007 World and European leader in m
Slide 5: Three Sectors of Activities
Three Sectors of Activities -Revenue: 1,027 Mio EUR CHEMICALS -Rebit: 83 Mio EUR -Headcount: 2,009 INORGANICS PVC / CHLOR-ALKALI -Revenue: 816 Mio EUR PLASTICS CONVERTING -Rebit: 49 Mio EUR -Headcount: 3,349 PROFILES PLASTIC PIPE SYSTEMS COMPOUNDS -Revenue: 563 Mio EUR SPECIALITIES -Rebit: 32 Mio EU
Slide 6: Our Markets
Our Markets Building Industry & Public Works 45 % Industry 23 % Fertilisers & Animal Nutrition 20 % Health & Hygiene 9% Household 3% 6
Slide 7: Our Management
Our Management Gérard Marchand Chief Executive Officer Adrien Carton de Wiart Secretary General Christian Vrebosch Finance & Accounting Geert Dusar Eddy Vandenbriele Corporate Communication HR, IT & Organisation Frank Coenen Albert Vasseur Jozef Housen Jan Vandendriessche Laurent Beaumont Chemicals
Slide 8: Management as of 01/01/09
Management as of 01/01/09 Gérard Marchand Chief Executive Officer Adrien Carton de Wiart Secretary General Christian Vrebosch Finance & Accounting Bua Eddy Vandenbriele Communication HR, ICT & Internal audit Frank Coenen Chief Operating Officer Vasseur Chemicals Plastics Converting Organic Specialit
Slide 9: Tessenderlo Group Strategy (1)
Tessenderlo Group Strategy (1) Global strategy of leadership in niches Diversified, well-balanced and interlinked line of activities (70 % of specialities by 2012) Further develop the Plastics Converting activities in Europe Strengthen position in the world’s gelatin top three Develop activities tha
Slide 10: Tessenderlo Group Strategy (2)
Tessenderlo Group Strategy (2) Focus on profitability Continuation of the profit improvement plan Target 2007 Obtain a 12 % ROCE in each business by 2012 Increase shareholders’ value Deliver a high return on equity Maintain a stable dividend growth 10
Slide 11: Committed to Leadership
Committed to Leadership Chemicals Inorganics Liquid Sulphur Fertilisers 1 WW Potassium Sulphate 2 WW Feed Phosphates 2 WW, 1 Europe Pvc/chlor-alkali Caustic Potash 1 Europe Ferric Chloride 2 Europe Pvc 5 Europe Plastics Pipes Pipes 1 Benelux, 3 France Converting Compounds Pvc compounds 5 Europe Spec
Slide 12: Tessenderlo Group Worldwide
Tessenderlo Group Worldwide Over 100 branches in 20 countries / 60 plants worldwide / 45 in Europe B NL DK PL GB FR DE HU CA ES IT CH CZ US TR CN LB MX AR CL 12
Slide 13: Geographic Diversity with Focus on Europe
Geographic Diversity with Focus on Europe Revenue 2007 30% Europe Other 25% 78 % 22 % 20% 18% 16% 15% 11% 11% 10% 9% 9% 9% 8% 5% 5% 4% 0% France UK Germany Nether- Belgium Italy Other EU Other USA Others lands European World countries 13
Slide 14: 8,100 Employees Worldwide (2007)
8,100 Employees Worldwide (2007) Others 273 Germany 95 South America 201 Italy 298 China 300 Netherlands 562 USA 686 UK 1,315 Belgium 2,084 France 2,307 14
Slide 15: Efficient and Integrated Industrial Tool
Efficient and Integrated Industrial Tool Sulphur SULPHURIC ACID Plastics Potassium chloride Converting Sodium chloride Potassium chloride PVC ELECTROLYSES SULPHATES Caustic potash Ethylene Potassium sulphate Caustic soda HCl Cl2 Sales Hydrochloric VCM Chlorine Toluene acid Phosphate rock Phosphoric
Slide 16: Sustained R&D Policy
Sustained R&D Policy Expenses 2007: 27 million EUR Applied research and technical support (with different pilot plants) Basic research (internal and external, process development) Analysis (quality assurance, environmental, research) 255 people (mainly in Belgium, France and Italy) 16
Slide 17: Focus on Environment
Focus on Environment “Responsible Care” Protection of the environment, health and safety in production and distribution Permanent investments for the environment Voluntary Commitment of the European PVC industry Energy recuperation & participation in different plastics recycling JV and projects Kyot
Slide 18: Contents
Contents Overview Review per Activity Financial Performance Shareholder Value 18
Slide 19: Revenue Breakdown (2007)
Revenue Breakdown (2007 - millions EUR) (IFRS) 1,027 1,000 816 800 600 563 400 200 0 Chemicals Plastics Converting Specialities 19
Slide 20: Revenue Breakdown (over the years)
Revenue Breakdown (during 10 years) million EUR Chemicals Specialities Plastics 2400 Converting 2200 2000 1800 34% 1600 1400 24 % 1200 23% 1000 25% 800 600 400 51 % 43% 200 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 * As from 2004 figures according to IFRS 20
Slide 21: Key Figures per Activity (2007)
Key Figures per Activity (millions EUR) (IFRS) Return: Rebit /Revenue (%) REVENUE REBIT RETURN 2007 2006 %Δ 2007 2006 %Δ 2007 2006 Chemicals 1,027.1 930.7 +10.4 82.7 30.8 +168.5 8.1 3.3 Plastics converting 816.4 760.1 +7.4 49.2 55.3 -11 6 7.3 Specialities 562.4 547.5 +2.7 31.9 -5.6 - 5.7 - Non-alloc
Slide 22: Revenue & Rebit per Business Group
Revenue & Rebit/ Business Group REVENUE (%) REBIT (%) 2007 2006 2007 2006 Chemicals 43 42 54.3 43 Plastics converting 34 34 32.3 76 Specialities 23 24 20.9 -8 Non-allocated items - - - 7.5 - 11 Total 100 100 100 100 22
Slide 23: Key Figures per Activity (End of June 2008)
Key Figures per Activity (End of June 2008) (millions EUR) (IFRS) Return: Rebit /Revenue (%) REVENUE REBIT RETURN 30/06/08 30/06/07 %Δ 30/06/08 30/06/07 %Δ 30/06/08 30/06/07 Chemicals 698.5 507.5 +37.6 106.0 34.8 +204.6 15.2% 6.9% Plastics 416.1 421.6 -1.3 22.3 27.8 -19.8 5.4% 6.6% converting Specia
Slide 24: Revenue & Rebit per Business Group (end of June 2008)
Revenue & Rebit/ Business Group (end of June 2008) REVENUE (%) REBIT (%) 30/06/08 30/06/07 30/06/08 30/06/07 Chemicals 49.1 41.6 71.3 44.6 Plastics converting 29.2 34.6 15.0 35.6 Specialities 21.7 23.8 18.4 25.9 Non-allocated items - - - 4.7 - 6.1 Total 100 100 100 100 24
Slide 25: Our Products: Chemicals (1)
Our Products: Chemicals (1) Inorganics Speciality fertilisers: - Europe : potassium sulphate (low chlorine): 2 WW caustic potash: 1 Europe - USA : liquid sulphur-based fertilisers : 1 WW Animal nutrition: Extensive range of animal feed phosphates: 2 WW, 1 Europe 25
Slide 26: Our Products: Chemicals (2)
Our Products: Chemicals (2) Chlor-alkali Detergents: caustic soda, caustic potash (1 Europe),… Industrial chemicals: chlorine, ferric chloride, sulphur derivatives, … Markets: mining, paper & glass industry, de-icing, bio-diesel, water treatment PVC Vinyl chloride monomer (VCM) Suspension PV
Slide 27: Our Products: Plastics Converting
Our Products: Plastics Converting Plastic Pipe Systems in PVC, PP and PE Construction and Public Works Europe (East + West) Extended distribution network PVC Profiles for construction and industry Window systems + related building products Europe (East + West) & Americas Extended distrib
Slide 28: Our Products: Specialities (1)
Our Products: Specialities (1) Fine Chemicals Organic chlorine derivatives: chlorotoluene, benzyl chloride and derivatives Markets: perfume industry, pharmacy, photography, agrochemicals, cosmetics Pharmaceutical intermediates: active pharmaceutical ingredients (API), organic intermediates Marke
Slide 29: Our Products: Specialities (2)
Our Products: Specialities (2) Gelatin Global player – 3 WW US, Europe, South America, Asia Markets: food, pharmaceuticals, photography Natural Derivatives Collection and valorisation of animal by-products: France Markets: pet food, detergents, fertilisers, bio-diesel 29
Slide 30: Contents
Contents Overview Review per Activity Financial Performance Shareholder Value 30
Slide 31: Key Figures
Key Figures (consolidated - millions EUR) (IFRS) 2007 2006 Change (%) Revenue 2,406 2,238 +7.5 Rebit 152.3 72.3 +110.7 Ebit 187.4 -4.6 Net profit - Loss 128.7 -24.3* Net Cash Flow 248.1 142.8 +73.7 Shareholders’ Equity 800.2 709.5 +12.8 Net Financial Debt 243.8 411 -40.7 Headcount 8,121 8,124 * Afte
Slide 32: Consolidated Revenue
Consolidated Revenue (millions EUR) 3000 2 406 2500 2 238 1 972 2 063 2 150 1 818 1 890 1 934 2000 1 563 1 571 1500 1000 500 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 32
Slide 33: Rebit
Rebit (millions EUR) 160 140 135 125 120 109 115 152 102 106 100 82 80 72 67 60 40 20 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 33
Slide 34: Consolidated Net Profit/Loss
Consolidated Net Profit/Loss (millions EUR) 140 120 129 100 82 90 80 70 65 71 54 60 43 35 40 20 0 -20 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 -40 -24.3 * *After taking into account a negative net impact of 55 million EUR of non-recurring items 34
Slide 35: Consolidated Net Cash Flow
Consolidated Net Cash Flow (millions EUR) 300 248 250 211 207 187 196 200 180 168 162 161 143 150 100 50 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 35
Slide 36: Capital Expenditures
Capital Expenditures (millions EUR) 200 171 173 175 147 150 133 137 133 119 119 125 110 99 100 75 50 25 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 36
Slide 37: Group Shareholders' Equity
Group Shareholders’ Equity (millions EUR) IFRS 1000 836 796 758 756 756 774 800 800 729 710 673 600 400 200 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 37
Slide 38: A sound balance-sheet structure: Gearing
A sound balance-sheet structure Gearing 70% 58 % 60% 55 % 50% 45 % 47 % 41 % 40 % 40% 28 % 30 % 30 % 30% 18 % 20% 10% 0% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 38
Slide 39: Contents
Contents Overview Review by Activity Financial Performance Shareholders’ Value 39
Slide 40: Tessenderlo Chemie Share (EUR) (IFRS)
Tessenderlo Chemie Share (EUR) (IFRS) 2007 2006 Change (%) Profit – Loss per Share (EPS) 4.69 -0.89 - Net Cash Flow Share 8.99 5,21 +72.6 Shareholders’ Equity - Share 29.04 25,96 +11.9 Net Dividend - Share 0.95 0,90 +5.5 Gross Dividend Share 1.2667 1,20 +5.5 Dividend Return (%) 3.82 3.72 +2.7 40
Slide 41: Tessenderlo Chemie Share
Tessenderlo Chemie Share A value stock 2007 2006 Share Price Euronext (31/12) (EUR) 33.20 32.30 Net Dividend (EUR) 0.95 0,90 Number of Shares 27,626,444 27,419,879 Market Capitalisation (Millions EUR) (31/12) 917.2 885.7 Free Float (%) * 71.90 72.11 * Cfr. Euronext calculation 41
Slide 42: Gross & Net Dividend per Share
Gross & Net Dividend per Share EUR 1.4 1.27 1.2 1.2 1.2 1.2 1.13 1.13 1.13 1.13 0.93 0.96 0.95 1.0 0.9 0.9 0.9 0.85 0.85 0.85 0.85 0.8 0.72 0.7 0.6 0.4 0.2 0.0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 42
Slide 43: Tessenderlo Group Investment Highlights
Tessenderlo Group Investment Highlights Highly integrated and diversified group Independent group Leader in niche-markets Customised quality products Close to the markets Strong financial structure Attractive dividend Well maintained assets Important decisions made for the future (Ely III, T-Power)
Slide 44: Visit our website www.tessenderlogroup.com
Visit our website www.tessenderlogroup.com 44
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