TKH Group N.V. Cert · EURONEXT:TWEKA
TKH Group N.V. Cert — TKH Group — FY2011 Earnings Presentation
43 slides from TKH Group N.V. Cert's earnings presentation, Mar 14, 2012
Slide 1: Full year results 2011
Full y year results 2011 TKH Group p NV 14 March 2012 1 | Annual results 2011 | 14-03-2012
Slide 2: Content
CONTENT 1 Developments 2011 2 Notes to the results 2011 3 Strategic developments, business drivers & outlook 2 | Annual results 2011 | 14-03-2012
Slide 3: Profile
PROFILE Turnover 2011 € 1.1 billion Geographical distribution Number of employees (FTE) 4,062 of turnover (in %) Number of operating p g companies p 70 Technology company Basic technologies in the area of ICT and electrical engineering are merged into total solutions Telecom Solutions 15% Building S
Slide 4: Mission
MISSION TKH intends to be an innovative leading niche player by providing Telecom, Building and Industrial Solutions based on technologically advanced system concepts, concepts products and related services 4 | Annual results 2011 | 14-03-2012
Slide 5: Strategy TKH Value creation
STRATEGY TKH V l creation Value ti Focus core activities on Telecom Building Industrial Solutions Solutions Solutions Growth sectors Communication, safety, care and comfort Innovations > 15% turnover 5 | Annual results 2011 | 14-03-2012
Slide 6: Developments 2007 - 2011
DEVELOPMENTS 2007 - 2011 6 | Annual results 2011 | 14-03-2012
Slide 7: Developments 2011
DEVELOPMENTS 2011 7 | Annual results 2011 | 14-03-2012
Slide 8: Highlights 2011
HIGHLIGHTS 2011 Strong increase EBITA Improvement due to Industrial Solutions Challenging market circumstances Building Solutions Investments in organization and market position Acquisition and integration costs in security segment Weakening market conditions H2 for Industrial Solutions ROCE with 21
Slide 9: Highlights 2011
HIGHLIGHTS 2011 Net debt/EBITDA and interest coverage ratio respectively 0.9 and 13.0 New five-year committed credit facility of € 250 million Innovations account for 22.8% of turnover g engine Strong g behind market share g g growth and organic g growth ((+15.5%)) Dividend proposal: € 0.75 per shar
Slide 10: Acquisitions 2011
ACQUISITIONS 2011 Siqura (former Optelecom-NKF - 100%-stake) – Building Solutions – security systems Advanced video surveillance solutions Turnover: € 25 million Mextal (90%-stake) – Building Solutions – building technologies Integrated care systems for observation, (acoustic) monitoring, visual com
Slide 11: Acquisition 2012
ACQUISITION 2012 Aasset (100%-stake) – Building Solutions – security systems Leading provider of security solutions and video surveillance systems Turnover: € 35 million 11 | Annual results 2011 | 14-03-2012
Slide 12: Highlights 2011: Solutions segmentation
HIGHLIGHTS 2011 Solutions segmentation 12 | Annual results 2011 | 14-03-2012
Slide 13: Telecom Solutions
TELECOM SOLUTIONS (in million € unless stated otherwise) 2011 2010 ∆ in % Turnover 161.7 151.8 + 6.6 EBITA 13.0 13.9 - 6.9 ROS 8.0% 9.2% Organic turnover growth: +12.1 % Excluding divestment GSM activities Poland: increase EBITA 19.8% 13 | Annual results 2011 | 14-03-2012
Slide 14: Telecom Solutions: indoor telecom systems
HIGHLIGHTS 2011 TELECOM SOLUTIONS Segment indoor telecom systems: turnover +5.9% Home networking g systems, y , broadband connectivity, y, IPTV-software solutions Innovations lead to turnover g growth - strong gggrowth multimedia systems y Higher priority for upgrading of broadband connections
Slide 15: Telecom Solutions: fibre networks systems
HIGHLIGHTS 2011 TELECOM SOLUTIONS Segment fibre networks systems: turnover +18.3% Optical fibre (cable) (cable), connectivity systems and components components, active equipment Growth of volume global optical fibre market 9% Improvement finance possibilities optical fibre networks Increase of
Slide 16: Telecom Solutions: copper networks systems
HIGHLIGHTS 2011 TELECOM SOLUTIONS Segment copper networks systems: turnover -9.5% Copper cable, connectivity systems and components, active equipment Organic growth: 7.8%, decrease turnover due to the divestment of GSM activities in Poland in 2010 Growth connectivity systems due to increased lev
Slide 17: Building Solutions
BUILDING SOLUTIONS (in million € unless stated otherwise) 2011 2010 ∆ in % Turnover 382 1 382.1 329 5 329.5 + 16.0 16 0 EBITA 18.5 21.2 - 12.9 ROS 4.8% 6.4% Organic growth: 6.7% Strengthening R&D and organization and one off costs Siqura put pressure on EBITA Challenging market circumstances i
Slide 18: Building Solutions: building technologies
HIGHLIGHTS 2011 BUILDING SOLUTIONS Segment building technologies: turnover +16.3% Energy saving lighting and light switch systems Energy-saving systems, energy management systems, care systems, structured cabling systems Improvement position in care sector through Schrack – care communication syst
Slide 19: Building Solutions: security systems
HIGHLIGHTS 2011 BUILDING SOLUTIONS Segment security systems: turnover +34.5% Systems y for CCTV, video/audio-analysis y and detection, intercom, access controls and registration, central control room integration Strengthening portfolio through acquisitions Siqura and FlexPosure − Integration Siqur
Slide 20: Building Solutions: connectivity systems
HIGHLIGHTS 2011 BUILDING SOLUTIONS Segment connectivity systems: turnover +6.0% Specialty p y cable, connectivity y systems y and components p for shipping, pp g railways, y solar and wind energy as well as installation and energy cable for niche markets I Impact t increase i raw material t i l pr
Slide 21: Industrial Solutions
INDUSTRIAL SOLUTIONS (in million € unless stated otherwise) 2011 2010 ∆ in % T Turnover 517.2 1 2 412 2 412.2 + 25.5 2 EBITA 69.6 47.8 + 45.4 ROS 13.5% 11.6% Organic growth: 23.7% Successful innovations, in both connectivity systems and manufacturing systems 21 | Annual results 2011 | 14-03-2012
Slide 22: Industrial Solutions: connectivity systems
HIGHLIGHTS 2011 INDUSTRIAL SOLUTIONS Segment connectivity systems: turnover +17.4% Specialty cable systems and modules for the medical, medical robotic, robotic automotive and machine building industry Impact increase raw ra material prices on turnover: t rno er 3% Strong growth turnover in firs
Slide 23: Industrial Solutions: manufacturing systems
HIGHLIGHTS 2011 INDUSTRIAL SOLUTIONS Segment manufacturing systems: turnover +34.0% Tyre manufacturing systems, can washers, machine control systems and product handling systems Growing market position for tyre manufacturers that opt for VMI’s technology due to high quality level and manufacturing
Slide 24: Notes to the results 2011
NOTES TO THE RESULTS 2011 24 | Annual results 2011 | 14-03-2012
Slide 25: Change in turnover
NOTES TO THE RESULTS 2011 Change in turnover (in € million) 25 | Annual results 2011 | 14-03-2012
Slide 26: Geographical distribution of turnover
NOTES TO THE RESULTS 2011 Geographical distribution of turnover (in %) 26 | Annual results 2011 | 14-03-2012
Slide 27: Development of turnover per solution
NOTES TO THE RESULTS 2011 Development of turnover per solution (in million € unless stated otherwise) Turnover 1) Turnover 1) Total Impact Organic 2011 2010 growth prices raw growth materials Telecom Solutions 161.7 151.8 + 6.6% + 0.2% + 12.1% Building Solutions 382.1 329.5 + 16.0% + 1.7% + 6.7% Ind
Slide 28: Notes to the results 2011: margins and costs
NOTES TO THE RESULTS 2011 Gross margin remains almost unchanged 38.9% (2010: 39.0%) Limited Li it d change h in i allll Solutions S l ti Negative impact of higher raw material prices and increase in work in progress and inventory finished goods is compensated in the product mix Increase EBITA with 2
Slide 29: Notes to the results 2011: financial expenses and tax
NOTES TO THE RESULTS 2011 Increase financial expenses with € 0.4 million Higher average interest bearing debt in 2011 compared to 2010 Positive currency effect in 2011 of € 0.4 million (2010: nil) Tax burden decreases to 22.3% 22 3% (2010: 24.7%) 24 7%) Advantage from the application of the Dutch in
Slide 30: EBITA per Solution
NOTES TO THE RESULTS 2011 EBITA per Solution (in million € unless stated otherwise) 2011 2010 EBITA ROS EBITA ROS % % Telecom Solutions 13.0 8.0 13 9 13.9 92 9.2 Building Solutions 18.5 4.8 21.2 6.4 Industrial Solutions 69.6 13.5 47.8 11.6 Other - 11.0 - 9.6 Total 90.1 8.5 73.4 8.2 30 | Annual resul
Slide 31: Income statement
NOTES TO THE RESULTS 2011 (in million €) 2011 2010 ∆% Turnover 1) 1,061.1 893.5 +18.8 Costs of raw materials / consumables - 648.6 - 544.9 Gross margin 412 5 412.5 38 9% 38.9% 348 6 39.0% 348.6 39 0% +18 3 +18.3 Operating expenses 322.4 275.2 +17.2 EBITA 90.1 8.5% 73.4 8.2% +22.8 Amortisation and im
Slide 32: Balance sheet per 31 December 2011
BALANCE SHEET PER 31 DECEMBER 2011 (in million €) 31-12-2011 31-12-2010 Assets Non current assets 398.1 344.0 Inventories 164.8 137.3 Receivables 186.8 165.3 Cash and cash equivalents 28.6 23.0 Assets held for sale 7.2 7.2 Total 785.5 676.8 Liabilities Equity 357.9 319.0 Long term liabilities 194.6
Slide 33: Change in working capital
NOTES TO THE BALANCE SHEET PER 31 DECEMBER 2011 Change in working capital (in € million) 33 | Annual results 2011 | 14-03-2012
Slide 34: Change in net debt
NOTES TO THE BALANCE SHEET PER 31 DECEMBER 2011 Change in net debt (in € million) 34 | Annual results 2011 | 14-03-2012
Slide 35: Cash flow statement
CASH FLOW STATEMENT (in million €) 2011 2010 Operating result 77.1 61.7 Depreciation, amortisation and impairment 28.6 26.3 Share and option schemes 1.6 0.8 Result divestments -0.3 -1.0 Change in provision -2.5 -6.1 Change in working capital - 31.6 -7.0 C h fl Cash flow from f operations ti 72 9 72.
Slide 36: Ratio's
RATIO’S 2011 2010 Working capital / Turnover 1) 11.6% 9.9% Net debt / EBITDA 2) 0.9 0.7 Gearing (net debt / equity) 3) 24.3% 22.2% ICR (EBITDA / Financial cost) 4) 13.0 12.2 Solvency 45.6% 47.1% Earnings per ordinary share before amortisation € 1.57 € 1.21 Earnings per ordinary share after amortisat
Slide 37: Strategic developments, business drivers & outlook
Strategic g developments, p , business drivers & outlook 37 | Annual results 2011 | 14-03-2012
Slide 38: Business drivers: TKH focus
BUSINESS DRIVERS TKH focus Continuation high investment level innovations Increased share proprietary technologies within Building Solutions Acceleration market development innovations – acquire new market positions Focus TKH portfolio on promising segments Security systems C Care systems t Optical
Slide 39: Business drivers: TKH focus
BUSINESS DRIVERS TKH focus Development of geographical overlap portfolio – expansion sales organisation in a number of promising segments Deploying resources on core markets with above average potential Limited debt – Net debt/EBITDA < 2.0 Focus on acquisitions – financial headroom € 100 – 150 milli
Slide 40: Business drivers: distinguishing potential
BUSINESS DRIVERS TKH focuses on distinguishing potential for an above-average performance Niche player strategy - focus on high quality solutions with high margins High pricing power by innovative unique solutions Attractive margins because of high yield on investments for customers Commodity produc
Slide 41: Financial objectives TKH
FINANCIAL OBJECTIVES TKH Progress g strategic g development p has p positive impact p on realisation ROS target Adjustment in March 2009 of ROS target of a range of 8 to 9% to 9 to 10% Shift towards activities with higher added value and a higher margin potential Increasing g share of activities tha
Slide 42: Outlook
OUTLOOK Telecom Solutions Increased investments in optical fibre networks expected, good positioning TKH for further growth in line with market growth Further decrease turnover copper networks Building Solutions Challenging market circumstances due to lower levels of investment in building and const
Slide 43: 43 | Annual results 2011 | 14-03-2012
43 | Annual results 2011 | 14-03-2012