Holland Colours Nv · EURONEXT:HOLCO
Holland Colours Nv — Shareholder Meeting (July 2014)
31 slides from Holland Colours Nv's shareholder meeting presentation, Jul 10, 2014
Slide 1: General Meeting of Shareholders, Apeldoorn, July 10, 2014
General Meeting of Shareholders Apeldoorn, July 10, 2014
Slide 2: Agenda
Agenda 1. Opening 2. A. Management report on the year 2013/2014 B. Update strategy program “HolcoMORE” 3. A. Implementation of the remuneration policy in 2013/2014 B. Approval of the financial statements 2013/2014 4. Reserves and dividend policy 5. A. Approval of the profit appropriation B. Approval
Slide 3: 2013/2014 was a mixed year for Holland Colours
2013/2014 was a mixed year for Holland Colours: marginal sales growth, negative currency effects, strongly higher net result. Sales Operating result Net result 3
Slide 4: Distribution of sales and operating result over divisions
Distribution of sales and operating result 2013/2014 over divisions comparable with last year. Sales 2013/14 Operating result 2013/14 (in euro) (in euro) 4
Slide 5: Sales growth in Europe, decrease in Asia, Americas stable
Sales growth in Europa, sales decrease in Asia, Americas stable. 2013/2014: • Europe: sales +3%. • Americas: sales almost equaling last year. Excluding currency effects, sales growth +4%. • Asia: lower sales in euro. Excluding currency effects sales -/-4%. 5
Slide 6: Marginal sales increase, positive volume effect
Marginal sales increase, positive volume effect. Sales focus markets and specialties 2013/2014: • volume growth +3%, • negative selling price- and product mix effects -/-1%, and • negative currency effects -/-2% 6
Slide 7: Positive sales development in the focus markets
Positive sales development in the focus markets. • B&C: limited volume increase. Europe lower, Americas higher. • Packaging: higher volumes. Growth in Europe and Asia, Americas lower. • S&E: higher volume. Sales decrease in Asia, growth in Europe and Americas. • Specialties: Volume decrease. Sales d
Slide 8: Strong net profit increase
Strong net profit increase. • Relative increase of gross-margin (47.2% vs 45.7%). • Higher operating costs (€ 25.8 million vs € 25.2 million). • Lower financing costs. • Effective tax rate lower. 8
Slide 9: Investments increased. Exceed depreciation
Investments increased. Exceed depreciation. 2013/2014: • investments exceed depreciation. • a.o. due to investments in PT Holco Indo Jaya. • other investments consist mainly of capacity extensions, replacements and investments in safety and efficiency. 9
Slide 10: Higher cash flow. Lower working capital
Higher cash flow. Lower working capital. 2013/2014: • Improved operating cash-flow. • Net cash-flow € 2.3 million positive. • Working-capital € 1.9 million lower. 10 • Inventories and trade receivables lower, trade payables higher.
Slide 11: All bank covenants were met. Solvency improved
All bank covenants were met. Solvency improved. • Total Debt / EBITDA ratio improved, well below the agreed 3.0. • Solvency improved. 11
Slide 12: Europe: sales growth, margin improved
Europe: sales growth, margin improved, higher operating costs, operating profit increased. Sales Operating result • modest sales increase: B&C limitedly lower, Packaging, Silicones & Elastomers and Specialties showed marked growth. • margin improvement. • operating costs increased. 12
Slide 13: Americas: higher sales in USD, lower in euro
Americas: higher sales in USD, lower in euro. Negative currency effects. Higher operating costs. Lower operating result. Sales Operating result • Sales in USD +4%: sales growth in B&C and Silicones & Elastomers, Packaging and Specialties lower. • Gross margin lower. • Operating costs increased. 13
Slide 14: Asia: lower sales, lower operating result
Asia: lower sales. Negative currency effect. Improved margin. Higher operating costs. Lower operating result. Sales Operating result • Difficult year. Lower sales, improved margin, higher operating costs. • Indonesia: lagging sales. • China: lower sales in mainly Elastomers. • Holco Indo Jaya: opera
Slide 15: Summary 2013/2014
Summary 2013/2014. • Persistently challenging economic conditions; • Strongly higher net profit, marginal higher net sales; • Sales growth in Europe and (in USD) in Americas, sales decrease in Asia; • Sales growth in all focus markets, with marginal lower sales in Specialties; • All divisions profit
Slide 16: Some challenges for 2014/2015
Some challenges for 2014/2015. • Persistently challenging economic conditions, • Realise further volume growth, • improve profitability of China and Holco Indo Jaya operations, • HolcoMORE strategy program execution, and • increase innovative efficiency. • On July 10, 2014, Holland Colours issued a
Slide 17: Agenda
Agenda 1. Opening 2. A. Management report on the year 2013/2014 B. Update strategy program “HolcoMORE” 3. A. Implementation of the remuneration policy in 2013/2014 B. Approval of the financial statements 2013/2014 4. Reserves and dividend policy 5. A. Approval of the profit appropriation B. Approval
Slide 18: Strategy update - process
Strategy update - process Strategic 2012/ Process Ambitions program 2013 evaluation 2018 HolcoMORE Start 12 2013/ “Future of our Beliefs & HolcoMORE 2014 past” Behaviours projects 18
Slide 19: Strategy update – ambitions 2018
Strategy update – ambitions 2018 Financial ambitions Realisation Result / 2013/2014 trend 2% 1,2 Average double-digit net-sales growth 8% Operating result as % of net-sales >10% 18% Return on Investment (ROI) > 15% Operating working-capital as % of net- 21% sales <20% 1 = HolcoMORE program related s
Slide 20: Strategy update – ambitions 2018 (continued)
Strategy update – ambitions 2018 (continued) Stakeholder ambitions Realisation Result / 2013/2014 trend 0 Zero lost-time incidents 9% Innovation-index > 10% Earnings-per-share average growth 18% > 10% 20
Slide 21: Strategy update – sustainability
Strategy update – sustainability • Materialitymatrix established. • Extended statement in Annual Report based on priority setting. • Reporting in accordance with GRI-4 currently in progress. • Targets set: – Energy - annual reduction 0.15MJ/kg product – CO2 - annual reduction 2% – Waste - to be dete
Slide 22: Strategy update - summary
Strategy update - summary • 2012/13 - defined direction and ambitions • 2013/14 - start project execution • 2014/15 - further enhance and develop the projects. 22
Slide 23: Agenda
Agenda 1. Opening 2. A. Management report on the year 2013/2014 B. Update strategy program “HolcoMORE” 3. A. Implementation of the remuneration policy in 2013/2014 B. Approval of the financial statements 2013/2014 4. Reserves and dividend policy 5. A. Approval of the profit appropriation B. Approval
Slide 24: Dividend policy – annual assessment
Dividend policy – annual assessment • Not based on the distribution of a fixed percentage of the profit. Instead, it is assessed each year on the basis of the company’s financial position and prospects. • The following factors are considered: – Future financing requirements, where contributive facto
Slide 25: Agenda
Agenda 1. Opening 2. A. Management report on the year 2013/2014 B. Update strategy program “HolcoMORE” 3. A. Implementation of the remuneration policy in 2013/2014 B. Approval of the financial statements 2013/2014 4. Reserves and dividend policy 5. A. Approval of the profit appropriation B. Approval
Slide 26: Proposed dividend
Proposed dividend • The net result per share amounts to € 4.12 compared to € 3.40 last year. • It will be proposed to the General Meeting of Shareholders that a dividend of € 2.12 per share be distributed in cash (2012/2013: € 1.75). 26
Slide 27: Agenda
Agenda 1. Opening 2. A. Management report on the year 2013/2014 B. Update strategy program “HolcoMORE” 3. A. Implementation of the remuneration policy in 2013/2014 B. Approval of the financial statements 2013/2014 4. Reserves and dividend policy 5. A. Approval of the profit appropriation B. Approval
Slide 28: (Re)Appointment Supervisory Board members
(Re)Appointment Supervisory Board members • The Supervisory Board set up a balanced schedule of resignation. • Under this schedule, Mr. Kemper will resign during this General Meeting. He is available for reappointment. • It is proposed to reappoint Mr. Kemper during this General Meeting (until July
Slide 29: Agenda
Agenda 1. Opening 2. A. Management report on the year 2013/2014 B. Update strategy program “HolcoMORE” 3. A. Implementation of the remuneration policy in 2013/2014 B. Approval of the financial statements 2013/2014 4. Reserves and dividend policy 5. A. Approval of the profit appropriation B. Approval
Slide 30: Appointment external auditor
Appointment external auditor • Holland Colours NV may legally no longer use the same organization as auditor and tax advisor; • Therefore it was decided in the 2013/2014 financial year to issue tenders for both tax and audit services; • Deloitte Belastingadviseurs NV was selected as tax advisor, sta
Slide 31: Holland Colours
HOLLAND COLOURS 31