Holland Colours Nv · EURONEXT:HOLCO
Holland Colours Nv — Shareholder Meeting (July 2024)
34 slides from Holland Colours Nv's shareholder meeting presentation, Jul 11, 2024
Slide 1: Annual General Meeting of Shareholders July 11, 2024
ANNUAL GENERAL MEETING OF SHAREHOLDERS JULY 11, 2024 1
Slide 2: 1. Opening
1. OPENING HCA HOLLAND COLOURS CO-DESIGNING A COLORFUL FUTURE
Slide 3: Agenda (1-7)
AGENDA (1-7) 1. Opening 2. Report of the Board of Management on the financial year 2023/2024 3. Financial Statements 2023/2024 a. Advisory vote regarding the remuneration report financial year (2023/2024) (advisory vote) b. Adoption of the financial statements 2023/2024 (voting item) c. Compliance w
Slide 4: Agenda (8-11)
AGENDA (8-11) 8. Strategy of Holland Colours Group ‘Accelerate to Win’ 9. Authorization to the Board of Management, subject to the approval of the Supervisory Board, to acquire ordinary shares in the Company on behalf of the Company (voting item) 10. Any other business 11. Closure 4
Slide 5: 2. Report of the Board of Management on the financial year 2023/2024
2. REPORT OF THE BOARD OF MANAGEMENT ON THE FINANCIAL YEAR 2023/2024 5
Slide 6: Report of the Board of Management
REPORT OF THE BOARD OF MANAGEMENT MANAGING CHALLENGES WHILE FOCUSING ON THE FUTURE • Year with continued elevated high interest rates with impact on demand and volumes in B&C segment; Q4 volumes better than Q4 PY • Different market cycles (and business performance) per division • Improved availabili
Slide 7: Overall Objectives
OVERALL OBJECTIVES RESULTS 2023/2024 • Zero accidents 0 LTI (L1) | 5 medical treatments (L2) • ESG on track • Continued revenue growth - 7.3% • Innovation index over 10% 7.4% • Return on Sales of at least 10% 6.8% • Return on Investment of at least 15% 15.5% • Solvency remains above 60% 78.4% 7
Slide 8: Financial Results FY 2023/2024
FINANCIAL RESULTS FY 2023/2024 8
Slide 9: Holland Colours Group Key Figures
FINANCIAL RESULTS FY 2023/2024 HOLLAND COLOURS GROUP KEY FIGURES 9
Slide 10: Division EMEIA
FINANCIAL RESULTS FY 2023/2024 DIVISION EMEIA In million euros • Volumes higher than PY (C&S + 20%, B&C and PKG + 2% ), revenue stable (mix and lower asp) • New customers gained • Gross margin (50.7%) improved versus PY (44.6%) • OPEX 1.2 mEUR higher than PY 10
Slide 11: Division Americas
FINANCIAL RESULTS FY 2023/2024 DIVISION AMERICAS In million USD • Revenue and volumes down as a result of lower market demand in Building & Construction (USA) due to elevated interest rates • Packaging stable (mainly USA, UHT-Dairy and Mexico) • Gross margin (47.3%) almost the same versus PY (47.4%)
Slide 12: Division Asia
FINANCIAL RESULTS FY 2023/2024 • Both domestic and export markets were significantly down (23.2 % in DIVISION ASIA USD) In million USD • Packaging (UHT-Dairy) in China continued to feel strong pressure from alternative packaging concepts • Loss of some customers in Indonesia and other countries due
Slide 13: Cash Flow Development
FINANCIAL RESULTS FY 2023/2024 CASH FLOW DEVELOPMENT In million euros • Positive cash flow from business • Capital expenditures (o.a. Project NEFEX Apeldoorn) • Dividend payout according to policy 13
Slide 14: Dividend Distribution Year Overview (per share)
FINANCIAL RESULTS FY 2023/2024 DIVIDEND DISTRIBUTION 5 YEAR OVERVIEW (per share) FY FY FY FY FY 5 year total 2019/2020 2021/2022 2021/2022 2022/2023 2023/2024 Net result EUR 9.09 EUR 11.00 EUR 11.83 EUR 6.82 EUR 6.02 EUR 44.76 Interim - EUR 4.55 - - - EUR 4.55 dividend Final - EUR 5.50 EUR 5.91 EUR
Slide 15: Outlook 2024/2025
OUTLOOK 2024/2025 HIGH DEGREE OF UNCERTAINTY ABOUT GLOBAL DEVELOPMENTS • Continuing higher interest rates have a negative influence in the building and construction industry • Packaging markets are primarily consumer related, and demand here is less subject to business cycles • Our renewed strategy
Slide 16: Risk Management and Internal Control (1)
RISK MANAGEMENT AND INTERNAL CONTROL (1) • New accountant KPMG o Transfer went smoothly o Open communication • Risk Management o Risk assessment carried out by Board of Management and Supervisory Board and on this basis the risk matrix has been updated. This has also been discussed with the accounta
Slide 17: Risk Management and Internal Control (2)
RISK MANAGEMENT AND INTERNAL CONTROL (2) • Internal control: o Main observations from the auditor include: ▪ further developing and formalizing of the internal control framework as well the year- end closing process is necessary also given the expected inclusion in the Corporate Governance Code for
Slide 18: 3. Financial Statements 2023/2024
3. FINANCIAL STATEMENTS 2023/2024 a. Advisory vote regarding the remuneration report financial year 2023/2024 (advisory vote) b. Adoption of the financial statements 2023/2024 (voting item) c. Compliance with the Dutch Corporate Governance code 18
Slide 19: AGM Presentation Holland Colours N.V. July 2024
AGM Presentation Holland Colours N.V. 11 July 2024
Slide 20: Our audit process
Our audit process 01. Our reports 02. Materiality rt s po 02 Financial statements re .M Materiality of EUR 1 million • Auditor’s report on consolidated and parent ur • 0,97% of 2023-2024 total revenues. O • Misstatements above EUR 50,000 are reported to at company financial statements. . 01 er • Our
Slide 21: General audit observations
General audit observations Key audit matters Non-compliance with • Revenue recognition. laws and regulations • Risk of non-compliance with laws and regulations identified, as the Company engages with sales agents in high-risk countries. • No indications and/or reasonable suspicion of non-compliance
Slide 22: Specific audit observations
Specific audit observations Estimates Climate-related risks • Overall assessment of management • Based on the procedures performed, we found making estimates. climate related risks have no material impact on the current financial statements and no material • Balanced. impact on our key audit matters
Slide 23: 4. Reserves and Dividend Policy
4. RESERVES AND DIVIDEND POLICY 23
Slide 24: Profit Appropriation and Dividend Policy
PROFIT APPROPRIATION AND DIVIDEND POLICY • Holland Colours intends to distribute at least 50% of its net profit in the form of dividend • Under the condition that the solvency ratio after distribution is at least 40% 24
Slide 25: 5. Adoption of the Appropriation of the Profit (voting item)
5. ADOPTION OF THE APPROPRIATION OF THE PROFIT (voting item) 25
Slide 26: Dividend Proposal FY 2023/2024
DIVIDEND PROPOSAL FY 2023/2024 • It is proposed to distribute EUR 3.01 as a final dividend for the FY 2023/2024 • Final dividend payable July 26, 2024 26
Slide 27: 6. Discharge of the Board of Management (voting item)
6. DISCHARGE OF THE BOARD OF MANAGEMENT (voting item) 27
Slide 28: 7. Discharge of the Supervisory Board (voting item)
7. DISCHARGE OF THE SUPERVISORY BOARD (voting item) 28
Slide 29: 8. Strategy Holland Colours Group
8. STRATEGY HOLLAND COLOURS GROUP 29
Slide 30: Purpose HCA Our Strategy: Accelerate to Win
PURPOSE HCA OUR STRATEGY FINDING A BETTER WAY BY ACCELERATE Our goals will provide direction for successful long term WORKING TOGETHER TO WIN value creation. OUTPACING MARKET GROWTH We strengthen our leadership position in our core segments Building & Construction, Packaging as well as in the select
Slide 31: 9. Authorization to the Board of Management to acquire ordinary shares
9. AUTHORIZATION TO THE BOARD OF MANAGEMENT, subject to the approval of the Supervisory Board, to acquire ordinary shares in the Company on behalf of the Company (voting item) 31
Slide 32: 10. Any Other Business
10. ANY OTHER BUSINESS CO-DESIGNING A COLORFUL FUTURE
Slide 33: 11. Closure
11. CLOSURE CO-DESIGNING A COLORFUL FUTURE
Slide 34: Thank You for Your Attention!
THANK YOU FOR YOUR ATTENTION! 34