Recticel SA · EURONEXT:RECT

Recticel SA — KBC Small Cap Conference 2013

36 slides from Recticel SA's conference presentation, Dec 3, 2013

  1. Slide 1: Recticel Strategic Update, 3Q2013 Trading Update, 1H 2013 Results

    RECTICEL STRATEGIC UPDATE 3Q2013 TRADING UPDATE 1st HALF-YEAR 2013 RESULTS KBC Small Cap Conference Brussels, 03 December 2013 Jean-Pierre Mellen – CFO Recticel Michel De Smedt – IRO Recticel 03 Dec 2013 KBC Small Cap Conference, Brussels 1

  2. Slide 2: Agenda

    1 Strategy Execution & Management Focus 2 3Q2013 Trading Update 3 1H/2013 Consolidated Results 03 Dec 2013 KBC Small Cap Conference, Brussels 2

  3. Slide 3: Three key drivers

    Three key drivers ► We execute our 2010-15 Strategic Plan, ► While dealing with legal “files” linked to past not-appropriate behaviours ► In a very adverse current economic situation 03 Dec 2013 KBC Small Cap Conference, Brussels 3

  4. Slide 4: Strategy Execution & Management Focus (1)

    Strategy Execution & Management Focus (1) 1. Strict prioritization of resource allocation to its portfolio of business - Too many segments  clear priorities - Insulation is the priority - Automotive to be divested 2. Drastic streamlining of operations and complexity reduction - 28 facilities closed

  5. Slide 5: Strategy Execution & Management Focus (2)

    Strategy Execution & Management Focus (2) 3. Geographic diversification (since ’10) to reduce dependency (94%) on Europe: ► Opening of Shengyang (Interiors -’12), Beijing (Interiors-’13), Mumbai (Flexible Foams-’12) ► Expansion of Turkey (Flexible Foams-’12) ► Opening of Bourges (Insulation -’13) ►

  6. Slide 6: Strategy Execution & Management Focus (3)

    Strategy Execution & Management Focus (3) 6. Organisational measures ► New strategy and reorganisation in Bedding ► Shared Service Centre for transactional operations further progressing ► Creation of a dedicated “Sustainability” function at Management level 03 Dec 2013 KBC Small Cap Conference, Bru

  7. Slide 7: Legacy "files"

    Legacy “files” 1. EU Commission investigation: Alleged 1992-2010 “cartel” activities in the Flexible Foam industry in Europe, leading to raid on 27 July 2010 2. Bundeskartellamt investigation: Alleged 2004-2010 “retail price maintenance” activities in the Bedding industry in Germany leading to raid

  8. Slide 8: Agenda: 3Q2013 Trading Update

    1 Strategy Execution & Management Focus 2 3Q2013 Trading Update 3 1H/2013 Consolidated Results 03 Dec 2013 KBC Small Cap Conference, Brussels 8

  9. Slide 9: Difficult European context

    Difficult European context Low industrial activity and consumer spending, while inflation persists : ► Markets have suffered :  EU27 automotive market (new car registration) • 1H13 was the worst semester since 1996  Slow Moving Consumer Goods as beds, furniture, TV’s, Computer, … impacted by weak

  10. Slide 10: 3Q2013 Trading Update (1)

    3Q2013 Trading Update (1) ► Early adoption of new IFRS 11 Reporting Standard as of 01 Jan 2013  Consolidated 3Q sales: from EUR 251.9 million to EUR 239.1 million.  Consolidated year-to-date sales: from EUR 784.0 million to EUR 733.8 million.  Net financial debt amounted to EUR 140.3 million, com

  11. Slide 11: 3Q2013 Trading Update (2)

    3Q2013 Trading Update (2) in million 1Q2013 2Q2013 3Q2013 D EUR 3Q y-o-y Flexible Foams 151,5 145,8 139,6 -0,4% Bedding 75,5 64,5 67,1 -1,6% Insulation 49,9 59,6 57,6 -1,4% Automotive 63,5 66,2 64,0 1,8% Eliminations ( 22,5) ( 21,3) ( 20,5) 54,4% TOTAL 317,9 314,8 307,9 -2,7% in million EUR 9M2012 9

  12. Slide 12: Agenda: 1H/2013 Consolidated Results

    1 Strategy Execution & Management Focus 2 3Q2013 Trading Update 3 1H/2013 Consolidated Results 03 Dec 2013 KBC Small Cap Conference, Brussels 12

  13. Slide 13: European markets & non-recurrings impacted Recticel during 1H/2013

    European markets & non-recurrings impacted Recticel during 1H/2013 ► Sales decreased by 7.0% from 680.2m€ to 632.6m€, but trend improved during Q2 at -4.4% and after Q1 at -9.5% ► REBITDA of 33.3m€ (-31.3%) as a result of lower sales and unfavourable mix ► EBITDA of 20.2m€ (-54.6%) impacted by annou

  14. Slide 14: Net sales down, but trend improved during 2Q/13

    Net sales down, but trend improved during 2Q/13 ► Net Sales: From 680.2m€ to 632.6m€ (-7.0%)  1Q/13: from 351.1m€ to 317.9m€ (-9.5%)  2Q/13: from 329.1m€ to 314.8m€ (-4.4%) ► 94% of Group sales in European region ► 2/3rd of the sales reduction due to Automotive (31.6m€ out of 47.6m€) ► Impact curr

  15. Slide 15: Except for Automotive, good relative top-line resilience in all segments

    Except for Automotive, good relative top-line resilience in all segments ► Building Insulation sales (+1.4%) grew again in 2Q13 after negative 1Q13  Kingspan -3%, Rockwool -4% ► Bedding sales (-4.4%) resisted well in depressed European bedding market (exception of Germany only slightly negative) 

  16. Slide 16: REBITDA impacted by lower sales and mix (1)

    REBITDA impacted by lower sales and mix (1) ► REBITDA : from 48.9m€ (restated, 48.5m€ as published) to 33.3m€ (-31.9%)  In a challenging environment, resulting in increased competitive pressure, the reduced overall recurrent profitability is also explained by: • the lower sales levels • an unfavour

  17. Slide 17: REBITDA impacted by lower sales and mix (2)

    REBITDA impacted by lower sales and mix (2)  Insulation REBITDA impacted by Sterling Pound depreciation, fixed and start-up costs in Bourges and by margin pressure due to increased competition.  Bedding REBITDA slightly up despite sales reduction, thanks to the Geltex introduction supporting the B

  18. Slide 18: REBIT evolves according to REBITDA

    REBIT evolves according to REBITDA From 29.3m€ (restated) (28.8m€ as published) to 13.4m€ (-54.1%) 03 Dec 2013 KBC Small Cap Conference, Brussels 18

  19. Slide 19: Non-recurring costs increased to -14.3m€

    Non-recurring costs increased to -14.3m€ (-4.9m€ in 1H/12)  Downsizing of activities in Rheinbreitbach (Germany) (Automotive Interiors); reduction of 150 jobs (on total of 178)  Closing of Flexible Foams converting unit in Nelson (UK) (Flexible Foams); reduction of 95 jobs  Streamlining of Beddin

  20. Slide 20: EBITDA & EBIT impacted by non-recurring

    EBITDA & EBIT impacted by non-recurring ► EBITDA: from 44.5m€ (restated) (44.1m€ as published) to 20.2m€ (-54.6%) ► EBIT: from 24.4m€ (restated) (24.0m€ as published) to -0.8m€ Includes also an impairment of -1.2m€ relating to equipment in Automotive Interiors (Germany). 03 Dec 2013 KBC Small Cap Co

  21. Slide 21: Financial result improved and taxes logically decreased

    Financial result improved and taxes logically decreased ► Financial result: from -7.4m€ (restated) (-7.1m€ as published) to -6.5m€ (- 12.1%)  Net interest charges decreased to -5.4m€ (-6.0m€ in 1H/2012). This decrease is primarily attributable to lower funding rates, whereas the average net interes

  22. Slide 22: Trade working capital has been reduced

    Trade working capital has been reduced 2012 2013 in m€ TARGET Avg 1H/12 Avg 1H/13 2013 m€ 100.7 98.1 Flexible foams % 16.2% 16.5% 16.0% Interiors + m€ 15.5 14.5 Exteriors % 9.8% 10.9% 10.0% m€ 37.8 33.5 Insulation % 16.3% 13.9% 14.0% m€ 38.1 37.0 Bedding % 12.6% 11.8% 12.0% m€ 19.3 14.2 Proseat % 14

  23. Slide 23: Net debt is stable and net financial debt has been reduced

    Net debt is stable and net financial debt has been reduced ► On 30/06/13 the Group’s net financial debt amounted to 156.1m€, excluding the drawn amounts under off-balance non-recourse factoring/forfeiting programs of 73.5m€ compared to respectively 179.0m€ and 49.4m€ on 30/06/12 and to 172.6m€ and 4

  24. Slide 24: Equity has been reduced, impacting the gearing

    Equity has been reduced, impacting the gearing ► The equity on 31/12/12 has been restated in compliance with the new IAS 19 standard, with an impact of -19.5m€ from 260.6m€ to 241.1m€. On 30/06/2013 the equity amounts to 217.3m€. ► Hence, the ‘net debt to equity’ ratio increased to 71.8%, compared t

  25. Slide 25: Miscellaneous

    Miscellaneous ► Contingent assets & liabilities  Inspection by the Directorate for Competition of the EC • The Commission is progressing with its investigation.  Inspection by the German Federal Cartel Office (“Bundeskartellamt”) • No further developments to be reported 03 Dec 2013 KBC Small Cap C

  26. Slide 26: Sales Flexible Foams (2010-2013)

    ► Key events 1H/2013  Sales from 303.5m€ to 297.3m€ (-2.1%) • 1Q/2013: from 157.4m€ to 151.5m€ (-3.8%) • 2Q/2013: from 146.1m€ to 145.8m€ (-0.2%) Sales Flexible Foams (2010-2013) ► Comfort (1H/2013: 189.4m€ ; -1.4%) 160  very weak market environment 155  reported only a slight regression in sales

  27. Slide 27: Sales Bedding (2010-2013)

    ► Key events 1H/2013  Sales from 133.6m€ to 140.0m€ (+4.8%)(on like-for-like basis: -4.4%) • 1Q/2013: from 73.6m€ to 75.5m€ (+2.5%) (on like-for-like basis: -5.9%) • 2Q/2013: from 60.0m€ to 64.5m€ +7.6%) (on like-for-like basis: -2.6%) Sales Bedding (2010-2013) ► As from 2013 some intercompany acti

  28. Slide 28: Sales Insulation (2010-2013)

    ► Key events 1H/2013  Sales from 109.5m€ to 109.5m€ (+0.0%) • 1Q/2013: from 53.0m€ to 49.9m€ (-5.8%) • 2Q/2013: from 56.5m€ to 59.6m€ (+5.5%) New plant Bourges Sales Insulation (2010-2013) ► Building Insulation (1H/2013: 102.6m€; +1.4%)  softer residential construction and renovation activity in 7

  29. Slide 29: Sales Automotive (2010-2013)

    ► Key events 1H/2013  Sales from 161.3m€ to 129.7m€ (-19.6%) • 1Q/2013: from 82.4m€ to 63.5m€ (-23.0%) • 2Q/2013: from 78.9m€ to 66.2m€ (-16.1%) ► Interiors (1H/2013: 57.8m€; -27.8%) Sales Automotive (2010-2013) 100  Decrease due to a weak demand but also as a result of 90 the anticipated phase-ou

  30. Slide 30: Consolidated Income Statement

    Consolidated Income Statement 03 Dec 2013 KBC Small Cap Conference, Brussels 30

  31. Slide 31: Consolidated Comprehensive Income

    Consolidated Comprehensive Income 03 Dec 2013 KBC Small Cap Conference, Brussels 31

  32. Slide 32: Consolidated Balance Sheet

    Consolidated Balance Sheet 03 Dec 2013 KBC Small Cap Conference, Brussels 32

  33. Slide 33: Consolidated Statement of Cash Flow

    Consolidated Statement of Cash Flow 03 Dec 2013 KBC Small Cap Conference, Brussels 33

  34. Slide 34: Statement of Changes in Equity

    Statement of Changes in Equity 03 Dec 2013 KBC Small Cap Conference, Brussels 34

  35. Slide 35: Data per share

    Data per share 03 Dec 2013 KBC Small Cap Conference, Brussels 35

  36. Slide 36: 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:

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