Recticel Sa · EURONEXT:RECT
Recticel Sa — FY2016 Earnings Presentation
42 slides from Recticel Sa's earnings presentation, Feb 27, 2017
Slide 1: Annual Results 2016 – Financial Analysts' Meeting
RECTICEL Annual Results 2016 Financial Analysts’ Meeting Brussels, 27 February 2017 Olivier Chapelle – Chief Executive Officer Jean-Pierre Mellen – Chief Financial Officer Michel De Smedt – Investor Relations Officer 27 Feb 2017 Analysts’ Meeting – Annual Results 2016 1
Slide 2: Agenda
Agenda 1 Key highlights 2016 2 2016 Results 3 Financial Situation 4 Dividend proposal and Outlook 2017 5 2016 Comments on Results per Business Line 6 Annexes Unless indicated otherwise, all comments related to the combined data 27 Feb 2017 Analysts’ Meeting – Annual Results 2016 2
Slide 3: Key highlights 2016 – Recticel delivers further structural profit growth
Key highlights 2016 – Recticel delivers further structural profit growth 1 Sales +1.5% • REBITDA +19.3% • REBIT +29.6% • Net Result x 3.6 2 Strong performance of Flexible Foams and Automotive divisions 3 Volatile oil & raw material prices and currencies in overall supportive economies 4 Strong effic
Slide 4: Innortex: acquisition in Insulation perimeter
Innortex : acquisition in Insulation perimeter ► Acquired on 6/10/2016 ► Location : Angers, France ► State-of-the-art production facility producing fiber bonded solutions by using Flexible Foams production wastes or end of life materials (flexible foams and/or textiles). ► Combines thermal and acous
Slide 5: Turvac: Joint Venture in Insulation perimeter
Turvac : Joint Venture in Insulation perimeter ► 50/50% JV with Turna, created on 28 November 2016 ► Location : greenfield production site in Šoštanj, Slovenia (80 km from Ljubljana) ► Produces Vacuum Insulation Panels (VIPs) : core made from fumed silica or glass fiber, which is put into a bag of a
Slide 6: Market environment broadly supportive in 2016, but currencies & raw materials turned headwinds
Market environment broadly supportive in 2016, but currencies & raw materials prices have turned into strong headwinds ! • Tailwinds Headwinds • Brexit: the Sterling pound lost 16% (0.85£/€) compared to its average level of 2015 (0.73£/€) • The appreciation of the Euro since end December 2015 crea
Slide 7: Income Statement: Sales increased by 1.5%
Income Statement: Sales increased by 1.5%, despite -2.2% currency effect, on strong volumes & efficiency improvements, enabling Rebitda to increase by 19.3% and EAT x 3.6 MEUR A 31/12/2015 A 31/12/2016 16/15 Net Sales 1,328.4 1,347.9 1.5% REBITDA 81.9 97.7 19.3% Non-recurring result (14.1) (12.2) EB
Slide 8: Agenda
Agenda 1 Key highlights 2016 2 2016 Results 3 Financial Situation 4 Dividend proposal and Outlook 2017 5 2016 Comments on Results per Business Line 6 Annexes 27 Feb 2017 Analysts’ Meeting – Annual Results 2016 8
Slide 9: Net sales are up 1.5%, including currency impact of -2.2%
Net sales are up 1.5%, including currency impact of -2.2% in million EUR 1Q2016 2Q2016 3Q2016 4Q2016 ► Net sales: from 1,328.4m€ to 1,347.9m€ (+1.5%) Flexible Foams 156.1 154.2 141.3 155.7 Bedding 79.0 69.1 70.1 74.7 1Q2016: from 343.4m€ to 345.5m€ (+0.6%) Insulation 55.5 62.7 59.0 57.0 Automotive
Slide 10: Positive sales evolution in 1H2016, stabilising 2H2016 sales
Positive sales evolution in 1H2016 (+2.8%), stabilising 2H2016 sales (+0.1%) ► 2H2016 sales up by 0.1% despite -2.8% currency impact Strong adverse currency impacts (i.e. Pound Sterling and Polish Zloty) in 2H2016 Strong volume in all divisions, except in Bedding, due to supply chain issues Ex
Slide 11: Group REBITDA margin rises from 6.2% to 7.2%
Group REBITDA margin rises from 6.2% to 7.2% ► REBITDA: from 81.9m€ to 97.7m€ (+19.3%) Strong increase of recurrent profitability due to: • Strong volumes • Positive product-mix • Operational efficiency All segments contributed to the profitability improvement Sequentially, profitability in 2H
Slide 12: REBITDA increased by +19.3%, supported by volumes and efficiency gains
REBITDA increased by +19.3%, supported by strong volumes and efficiency gains ► Flexible Foams continued to enhance its industrial performance throughout the period, to increase its volumes and to improve its product/market mix. ► Insulation profitability increased on higher volumes and excellent ef
Slide 13: REBITDA and REBIT make parallel progress
REBITDA and REBIT make parallel progress ► REBITDA : from 81.9m€ to 97.7m€ (+19.3%) REBITDA margin increased from 6.2% to 7.2%. in million EUR 1H15 2H15 FY15 1H16 2H16 FY16 D 1H D 2H D FY Flexible Foams 20,4 17,6 38,0 28,2 18,1 46,3 37,8% 3,1% 21,7% Bedding 6,0 8,1 14,1 7,9 7,8 15,7 31,6% -3,4% 11
Slide 14: Non-recurring elements of €-13.9m vs €-15.1m in 2015
Non-recurring elements of €-13.9m vs €-15.1m in 2015 in million EUR 2015 1H2016 2H2016 2016 Restructuring charges and provisions ( 12,7) ( 4,7) ( 3,1) ( 7,8) Capital gain on divestment 1,6 0,0 0,0 0,0 Other ( 3,0) ( 2,3) ( 2,1) ( 4,4) Total impact on EBITDA ( 14,1) ( 7,0) ( 5,2) ( 12,2) Impairments
Slide 15: Strong improvement of EBITDA & EBIT
Strong improvement of EBITDA & EBIT ► EBITDA: from 67.8m€ to 85.4m€ (+26.0%) EBITDA margin increased from 5.1% to 6.3%. in million EUR 1H15 2H15 FY15 1H16 2H16 FY16 D 1H D 2H D FY Flexible Foams 19,9 14,2 34,0 23,6 15,9 39,6 19,0% 12,4% 16,3% Bedding 5,1 4,4 9,5 6,6 5,5 12,1 29,6% 25,6% 27,7% Insu
Slide 16: Lower combined financial charges, higher tax charges
Lower combined financial charges – net interest charges down by 19.2% Higher tax charges – deferred tax charges have doubled ► Combined financial result: from -15.3m€ to -13.4m€ Net interest charges decreased by 2.2m€ (from -11.5m€ to -9.3m€) following a lower average net interest-bearing debt, in
Slide 17: Average Trade Working Capital further decreased by €10.9m
Average Trade Working Capital further decreased by €10.9m to reach 11.9% on sales (compared to 12.9% in FY2015) in m€ Average : 2011 2012 2013 2014 2015 2016 m€ 107.3 100.5 98.1 93.2 88.1 80.1 Flexible foams %/NS 17.7% 16.7% 16.5% 15.4% 14.3% 13.0% Interiors + m€ 17.0 13.3 13.9 13.7 16.6 20.6 Exteri
Slide 18: Agenda
Agenda 1 Key highlights 2016 2 2016 Consolidated & Combined Results 3 Financial Situation 4 Dividend proposal and Outlook 2017 5 2016 Comments on Combined Results per Business Line 6 Annexes 27 Feb 2017 Analysts’ Meeting – Annual Results 2016 18
Slide 19: Net Cash flow positive, despite increase in Capex to €51m
Net Cash flow positive, despite increase in Capex to €51m in k€ A 31/12/2015 A 31/12/2016 (1) Changes in provisions (3.6) EARNINGS before INTEREST AND TAXES (EBIT) 29,798 44,291 Net additions 12.5 Depreciations and Amortizations 36,979 39,490 > Pension provisions 4.5 Impairment losses on Assets 1,03
Slide 20: Net debt reduced to historically low €178.2m
Net debt (on & off B/S) @ €178.2m reduced by €26m vs 30/06/2016, and at historically low level, while equity increases by 5m€ (+ EAT – Dividends – Comprehensive Income + Capital additions) ► Combined versus Consolidated net financial debt on balance sheet (excluding factoring/forfeiting programs) ►
Slide 21: Subsequent event: fire incident on 22/01/2017 in Most (CZ)
Subsequent event : fire incident on 22/01/2017 in Most (CZ) 27 Feb 2017 Analysts’ Meeting – Annual Results 2016 21
Slide 22: Agenda
Agenda 1 Key highlights 2016 2 FY2016 Consolidated & Combined Results 3 Financial Situation 4 Dividend proposal and Outlook 2017 5 2016 Comments on Combined Results per Business Line 6 Annexes 27 Feb 2017 Analysts’ Meeting – Annual Results 2016 22
Slide 23: Proposal to increase the dividend by 28%
Proposal to increase the dividend by 28% The Board of Directors will propose to the Annual General Meeting of 31 May 2017 the payment of a gross dividend of EUR 0.18 per share on 54.1 million shares or a total dividend payout of EUR 9.7 million (2015: respectively EUR 0.14/share and EUR 7.5 million)
Slide 24: Outlook 2017
Outlook 2017 For the full year 2017, the Group expects continued growth of its combined sales, and to increase its combined REBITDA thanks to a combination of volume growth, improved mix and efficiency gains. 27 Feb 2017 Analysts’ Meeting – Annual Results 2016 24
Slide 25: Agenda
Agenda 1 Key highlights 2016 2 2016 Consolidated & Combined Results 3 Financial Situation 4 Dividend proposal and Outlook 2017 5 2016 Comments on Combined Results per Business Line 6 Annexes 27 Feb 2017 Analysts’ Meeting – Annual Results 2016 25
Slide 26: Flexible Foams: better industrial performance and improved product-mix
Better industrial performance and improved product- mix Key financials Recent developments in million EUR 1H15 2H15 FY15 1H16 2H16 FY16 D 1H D 2H D FY ► Strong volumes Sales 305,9 296,4 602,3 310,3 297,0 607,2 1,4% 0,2% 0,8% REBITDA 20,4 17,6 38,0 28,2 18,1 46,3 37,8% 3,1% 21,7% ► Improved product/m
Slide 27: Bedding: improved product and customer-mix, boxspring growth
Improved product and customer-mix with strong growth of boxspring beds Key financials Recent developments in million EUR 1H15 2H15 FY15 1H16 2H16 FY16 D 1H D 2H D FY ► Improved product-mix due to further expansion of Sales 143,5 151,1 294,5 148,1 144,9 292,9 3,2% -4,1% -0,5% Branded Products segment
Slide 28: Insulation: strong sales growth, adverse currency impact
Strong growth of sales and good profitability, partially offset by adverse currency impact Key financials Recent developments in million EUR 1H15 2H15 FY15 1H16 2H16 FY16 D 1H D 2H D FY ► Divestment in February 2015 of the 50% Sales 113,3 116,1 229,4 118,1 116,0 234,1 4,3% -0,1% 2,1% participation i
Slide 29: Automotive: growth driven by new Interiors programs
Growth driven by start-up of new Interiors programs and overall strong global automotive markets Key financials Recent developments in million EUR 1H15 2H15 FY15 1H16 2H16 FY16 D 1H D 2H D FY ► As expected, higher volumes following the gradual start-up and ramp-up of new Interiors programs - Sales 1
Slide 30: Agenda
Agenda 1 Key highlights 2016 2 2016 Consolidated & Combined Results 3 Financial Situation 4 Dividend proposal and Outlook 2017 5 2016 Comments on Combined Results per Business Line 6 Annexes 27 Feb 2017 Analysts’ Meeting – Annual Results 2016 30
Slide 31: Consolidated key figures
Consolidated key figures* * All comparisons are made with the comparable period of 2015, unless mentioned otherwise. ► Sales: from 1,033.8m€ to 1,048.3m€ (+1.4%), including currency effects (-2.3%) ► EBITDA: from 52.9m€ to 72.7m€ (+37.5%) ► EBIT: from 23.2m€ to 39.2m€ (+68.8%) ► Result of the period
Slide 32: ANNEXES – Consolidated Income Statement
ANNEXES – Consolidated Income Statement in million EUR 1H15 2H15 FY2015 1H16 2H16 FY2016 Sales 519,1 514,7 1 033,8 534,5 513,8 1 048,3 Distribution costs ( 28,3) ( 29,8) ( 58,0) ( 29,5) ( 28,4) ( 57,9) Cost of sales ( 390,8) ( 390,5) ( 781,3) ( 396,2) ( 393,2) ( 789,4) Gross profit 100,0 94,4 194,4
Slide 33: ANNEXES – Consolidated Comprehensive Income
ANNEXES – Consolidated Comprehensive Income in million EUR 1H15 2H15 FY2015 1H16 2H16 FY2016 Result for the period after taxes 5,0 ( 0,5) 4,5 15,5 0,8 16,3 Other comprehensive income Items that will not subsequently be recycled to profit and loss Actuarial gains and losses on employee benefits 6,1 (
Slide 34: ANNEXES – Consolidated Balance Sheet
ANNEXES – Consolidated Balance Sheet in million EUR 31 DEC 15 31 DEC 16 D Intangible assets 13,4 12,1 -9,7% Goodwill 25,9 25,1 -3,1% Property, plant & equipment 209,7 216,2 3,1% Investment property 3,3 3,3 0,0% Interest in joint ventures & associates 73,2 82,4 12,6% Other financial investments and a
Slide 35: ANNEXES – Consolidated Statement of Cash Flow
ANNEXES – Consolidated Statement of Cash Flow in k€ LY 31/12/2015 A 31/12/2016 EARNINGS before INTEREST AND TAXES (EBIT) 23,235 39,218 (1) Changes in provisions (3.6) Depreciations and Amortizations 28,656 31,726 Net additions 11.1 Impairment losses on Assets 983 1,762 > Pension provisions 4.3 Write
Slide 36: ANNEXES – Statement of changes in equity
ANNEXES – Statement of changes in equity Total equity, IFRS 2 Investm ent Actuarial Translation Total Non- non- Share Treasury Other Retained Hedging in million EUR Capital revaluation gains and differences shareholders' controlling controlling prem ium shares capital earnings reserves reserve losse
Slide 37: ANNEXES – Data per share
ANNEXES – Data per share in EUR 2015 2016 D Number of shares outstanding (including treasury shares) 53 731 608 54 062 520 0,6% Weighted average number of shares outstanding (before dilution effect) 44 510 623 53 504 432 20,2% Weighted average number of shares outstanding (after dilution effect) 44
Slide 38: Automotive – EU28 new passenger car registrations increased
ANNEXES: Automotive – EU28 new passenger car registrations increased by +5.8% year end 2016 vs 2015, but remain ~13% below the 2007 peak. 27 Feb 2017 Analysts’ Meeting – Annual Results 2016 38
Slide 39: Automotive – China new passenger car registrations increased
ANNEXES: Automotive – China new passenger car registrations increased by 15% yoy in 2016 ! (+23% vs 2014) Monthly passenger car sales in China from November 2014 to December 2016, by country of brand origin (in 1,000 units) China Germany Japan United States South Korea France 3000 2500 2000 Sales in
Slide 40: New residential building markets growing in 2016
ANNEXES: New residential building markets have been negative in 2013, stabilised in 2014 & 2015, growing in 2016 and expected to grow further in 2017 Development of building market in Europe 2013-2019 Outlook (%) Total New Renovation Forecasts Outlook Country/Year 2013 2014 2015 2016 (estimate) 2017
Slide 41: Contacts
Contacts Recticel International Headquarters Investor Relations Press 2, avenue des Olympiades/Olympiadenlaan, 2 Michel De Smedt Olivier Chapelle, CEO B-1140 Brussels Email: desmedt.michel@recticel.com Email: chapelle.olivier@recticel.com Tel: +32 (0)2 775 18 11 Tel: +32 (0)2 775 18 09 Tel: +32 (0)2
Slide 42: Thank you for your attention! Q&A
Thank you for your attention! Q&A 27 Feb 2017 Analysts’ Meeting – Annual Results 2016 42