Tessenderlo Group N.v. · EURONEXT:TESB
Tessenderlo — FY2012 Earnings Presentation
30 slides from Tessenderlo's earnings presentation, Feb 28, 2013
Slide 1: Fourth Quarter and FY 2012 Results
TESSENDERLO GROUP Fourth Quarter and FY 2012 Results February 28, 2013
Slide 2: 2012 Highlights – moving further along the transformational journey
2012 Highlights – moving further along the transformational journey Continued momentum in strategy execution • Expanded activities in core agriculture markets; new opportunity in mining • Divested/announced intention to divest four non-core businesses 2012 operating performance validates strategic c
Slide 3: Continued momentum in strategy execution
Continued momentum in strategy execution Important growth initiatives implemented • Acquisition of Carbaryl • Construction of new KTS specialty fertilizer capacity in the US • New supply contract with Barrick Gold Divestment of 4 non-core activities • Divestment of Pharma activities actions Recent •
Slide 4: 2012 operating performance validates strategic choices
2012 operating performance validates strategic choices 4Q12 operating results ahead of last year • Revenue increased 5.4% in 4Q12: double digit growth for both Gelatin & Akiolis and Tessenderlo Kerley • REBITDA was 10.3% higher in the fourth quarter 2012 confirmed resilience of core activities • Rev
Slide 5: Non-recurring charges reflect progress in transformation
Non-recurring charges reflect progress in transformation ~50% of charges is non-cash; significant portion of cash out is after 2018 Non- Cash Cash Cash Million EUR cash 2012 2013-17 2018- Total 2012 non-recurring charges 116.9 13.5 45.4 62.5 238.3 Charges comprise actions taken related to: • strateg
Slide 6: Balance sheet fully in line with expectations
Balance sheet fully in line with expectations Net debt and notional net debt rose as anticipated • Net debt of 314 million; while notional net debt was 394 million euro • Trade working capital remains a focus; fourth quarter improved year on year All covenants continue to be fully respected • Net de
Slide 7: 4Q12 revenue by operating segment
4Q12 revenue by operating segment Million EUR and % increase versus 4Q11 at comparable scope +21.1% +14.3% +3.9% -1.3% -8.3% Gelatin & Tessenderlo Other PPS & Businesses Inorganics Akiolis Kerley Profiles Scope +8.2 +2.6 (1.7) (8.5) (11.1) +25.2 489.3 + 5.4% 503.9 + 25.7 Revenue Revenue 4Q11 4Q12 7
Slide 8: FY12 revenue by operating segment
FY12 revenue by operating segment Million EUR and % increase versus FY11 at comparable scope +20.7% +10.2% +0.4% -3.6% -5.4% Gelatin & Other Scope Tessenderlo Akiolis PPS & Businesses Inorganics Kerley Profiles +48.6 +1.2 (19.7) (23.2) (59.4) +56.0 2126.0 + 3.1% 2129.6 + 63.0 Revenue Revenue FY11 FY
Slide 9: 4Q12 REBITDA by operating segment
4Q12 REBITDA by operating segment Million EUR and % increase versus 4Q11 at comparable scope Non- Tessenderlo PPS & Gelatin & Kerley Akiolis allocated Profiles Scope Other Inorganics Businesses +3.1 +1.9 (1.0) (2.3) (3.3) +3.9 (0.4) +10.3% 22.8 24.7 + 2.3 REBITDA REBITDA 4Q11 4Q12 9
Slide 10: FY12 REBITDA by operating segment
FY12 REBITDA by operating segment Million EUR and % increase versus FY11 at comparable scope Non- Gelatin & Other Tessenderlo PPS & allocated Akiolis Businesses Kerley Profiles Inorganics Scope +2.2 +0.6 (6.2) (26.8) (0.9) +12.7 (7.4) - 13.6% 187.0 161.1 - 24.9 REBITDA REBITDA FY11 FY12 10
Slide 11: Net debt position
Net debt position Million EUR 850.0 5.2 5 700.0 3 3.3 2.4 550.0 1.6 1.5 1.9 1 0.9 1.1 393.9 400.0 332.4 305.2 283.2 79.9 -1 250.0 123.4 85.8 121.2 314.0 -3 100.0 209.0 219.4 162.0 -50.0 31/12/2009 31/12/2010 31/12/2011 31/12/2012 -5 Net debt (Million EUR) Non-recourse factoring (Million EUR) Notiona
Slide 12: Outlook
Outlook Tessenderlo Group expects 2013 to be another year of substantial progress in the company’s journey to become a global specialty group. Concretely, this means that we will focus on further strategy execution, being a combination of divesting non-core activities and investing in growth activit
Slide 13: Operational Highlights
Operational Highlights GROUP KEY FIGURES % Change at % Change at 4Q12 4Q11 comparable Million EUR FY12 FY11 comparable scope scope 503.9 489.3 5.4% Revenue 2,129.6 2,126.0 3.1% 24.7 22.8 10.3% REBITDA 161.1 187.0 -13.6% 4.9% 4.7% - REBITDA margin 7.6% 8.8% - 4.9 1.0 244.9% REBIT 75.9 104.9 -28.8% 1.
Slide 14: 4Q12 group revenue and REBITDA per segment
4Q12 group revenue and REBITDA per segment Revenue (% of total) REBITDA (% of total*) Tessenderlo Kerley Other businesses 2.9% 0% Inorganics Gelatin 13.0% & PPS & Akiolis Profiles 16.3% 28.6% Other 14.1% businesses Gelatin 503.9 24.7 48.1% & Akiolis mEUR mEUR 18.8% 32.7% 25.6% Tessenderlo Inorganics
Slide 15: FY12 group revenue and REBITDA per segment
FY12 group revenue and REBITDA per segment Revenue (% of total) REBITDA (% of total*) Tessenderlo Other businesses 2.9% 0.9% Inorganics Kerley PPS & 15.3% Profiles PPS & 25.6% Profiles 19.4% Other 41.6% Tessenderlo businesses 15.5% 2,129.6 161.1 Kerley mEUR mEUR 24.6% 19.0% Gelatin 35.2% Gelatin & &
Slide 16: Tessenderlo Kerley
REBITDA (% of total) Tessenderlo Kerley 41.6% FY12 Revenue (Million EUR) REBITDA (Million EUR) & REBITDA margin (%) 400 90 24.6% 24.2% 80 70 300 2011 60 2012 50 200 326.8 20.4% 40 16.4% 79.2 270.8 30 66.5 100 20 57.2 65.4 10 11.7 10.7 0 0 4Q FY 4Q FY Revenue 4Q FY REBITDA 4Q FY % Change at % Change
Slide 17: Gelatin and Akiolis
REBITDA (% of total) Gelatin and Akiolis FY12 35.2% Revenue (Million EUR) REBITDA (Million EUR) & REBITDA margin (%) 600 80 14.0% 12.8% 70 500 60 2011 400 2012 50 300 524.0 40 30 10.6% 10.9% 66.4 67.0 200 475.4 20 100 118.9 144.1 10 12.6 15.7 0 0 4Q FY 4Q FY Revenue 4Q FY REBITDA 4Q FY % Change at %
Slide 18: Inorganics
REBITDA (% of total) 0.9% Inorganics FY12 Revenue (Million EUR) REBITDA (Million EUR) & REBITDA margin (%) 6.7% 500 25 400 20 0.4% 2011 300 2012 15 428.1 3.2% 28.6 200 10 0.0% 405.0 100 5 1.8 103.2 94.7 3.3 0.0 0 0 4Q FY 4Q FY Revenue 4Q FY REBITDA 4Q FY % Change at % Change at - 8.3% - 5.4% - 100.8
Slide 19: Plastic Pipe Systems and Profiles
REBITDA (% of total) 19.4% Plastic Pipe Systems and Profiles FY12 Revenue (Million EUR) REBITDA (Million EUR) & REBITDA margin (%) (5.0) 0.3 600 50 7.7% 45 6.8% 500 net scope 40 2011 35 400 2012 30 1.1 300 569.1 544.4 25 (0.1) 20 44.1 5.9% 36.9 200 15 4.1% 10 100 129.6 128.9 5 7.7 5.3 0 0 4Q FY 4Q F
Slide 20: Other Businesses
REBITDA (% of total) 2.9% Other Businesses* FY12 * Includes Compounds, OCD, Pharma, Water Treatment and Sulfur Derivatives Revenue (Million EUR) REBITDA (Million EUR) & REBITDA margin (%) (54.4) 20 500 (1.2) 15 400 net scope (0.3) 2011 3.4% 10 300 2012 1.3% 1.7% (12.2) 5 12.9 200 382.6 - 3.3% 329.5
Slide 21: REBIT to Profit details for 4Q12
REBIT to Profit details for 4Q12 Million EUR REBIT Non-recurring Net finance Income Tax Share of result PROFIT/LOSS 4Q12 items EBIT costs Expense of investments 4Q12 4.9 (154.6) (148.2) (149.7) (4.9) 4.4 2.0 21
Slide 22: REBIT to Profit details for FY12
REBIT to Profit details for FY12 Million EUR REBIT Non-recurring Net finance Income Tax Share of result PROFIT/LOSS FY12 items EBIT costs Expense of investments FY12 75.9 (238.3) (162.5) (197.5) (24.3) (18.0) 7.3 Effective tax rate based on recurrent profit (+)/loss (-) amounts to 56.8% 22
Slide 23: Non-recurring items 4Q12
Non-recurring items 4Q12 Million EUR Losses on Capital gain on disposal groups sale of non Provisions and Other income and classified as held Total non- strategic assets claims Restructuring Impairment losses expenses for sale recurring items 3.8 (86.2) (6.1) (19.1) (154.6) (1.8) Mainly: Mainly: (45
Slide 24: Non-recurring items FY12
Non-recurring items FY12 Million EUR Losses on Capital gain on disposal groups sale of non Provisions and Other income and classified as held Total non- strategic assets claims Restructuring Impairment losses expenses for sale recurring items 15.4 (88.0) (15.1) (20.6) (14.4) (238.3) Mainly: Mainly:
Slide 25: Net debt evolution 4Q12
Net debt evolution 4Q12 Million EUR Net debt Net debt 30/09/2012 31/12/2012 (265.2) (314.0) CAPEX EU fine Change in REBITDA Financial (38.9) Acquisitions/ WC (before charges Non-recurring Sale of Change Equity factoring) & taxes and other non-strategic (28.3) in factoring injections 24.7 assets (9.8
Slide 26: Net debt evolution FY12
Net debt evolution FY12 Million EUR Net debt Net debt 31/12/2011 31/12/2012 (219.4) CAPEX (314.0) Financial charges and REBITDA (118.0) taxes Non-recurring and other Sale of (46.9) EU fine Dividends Change in WC (before Acquisitions/ non-strategic 161.1 (34.8) assets factoring) Equity Change in inje
Slide 27: Group Trade Working Capital
Group Trade Working Capital Million EUR 700 30% 600 22.9% 25% 20.2% 19.8% 500 17.3% 20% 19.8% 15% 400 17.0% 10% 300 5% 200 399.5 446.4 351.0 361.1 0% 100 -5% 0 -10% Dec 2009 Dec 2010 Dec 2011 Dec 2012 Trade Working Capital excluding factoring Trade Working Capital excluding factoring/Last 12 months
Slide 28: Balance Sheet
Balance Sheet Million EUR 1800 1800 1600 1,379.7 1,288.2 1600 1,379.7 1,288.2 Non-current assets held for 7.8 Liabilities 1400 1400 sale 40.6 associated with 64.4 assets classified 1200 1200 as held for sale 520.8 Other current assets 1000 641.7 1000 542.0 514.9 Other liabilities 800 800 73.8 Cash a
Slide 29: Q&A Fourth Quarter and FY 2012 Results
Q&A Fourth Quarter and FY 2012 Results February 28, 2013
Slide 30: Tessenderlo Group company description and financial news wires
Tessenderlo Group is a worldwide specialty company, focused on food, agriculture, water management and on valorizing bio- residuals. The group employs about 7000 people and is a leader in most of its markets, with a consolidated revenue of 2.1 billion EUR in 2012. Tessenderlo Chemie NV is listed on