Holland Colours Nv · EURONEXT:HOLCO
Holland Colours Nv — Investor Presentation (July 2019)
26 slides from Holland Colours Nv's investor presentation, Jul 16, 2019
Slide 1: Information Meeting Major Shareholders
INFORMATION MEETING MAJOR SHAREHOLDERS Apeldoorn, July 16, 2019 1
Slide 2: Agenda
AGENDA • Welcome and introduction • Annual report and financial statements 2018 / 2019 • Strategy update: Growing Together 2023 2
Slide 3: Annual Report and Financial Statements 2018/2019
ANNUAL REPORT AND FINANCIAL STATEMENTS 2018/2019 3
Slide 4: Market Conditions
MARKET CONDITIONS • Asia: growing demand for UHT dairy and yogurt drinks; • North America: slow down in the housing market; • Russia, Middle East and Africa: continued growth of packaging market; • Europe: stable markets. 4
Slide 5: Net Margin Improved, Higher Operating Result
NET MARGIN IMPROVED, HIGHER OPERATING RESULT • Volume growth in Asia and Europe, lower volumes in the USA; • Short supply and higher market prices of various raw materials; • Sales prices increased; margin management program; • Absolute margin improved, marge % slightly decreased; • Higher cost, pri
Slide 6: Net Cash Flow Positive, Higher Dividend
NET CASH FLOW POSITIVE, HIGHER DIVIDEND • Increase of operating profit (EBIT base); • Operating working capital increased - continued shortages on raw material markets and higher revenue; • Investments higher than previous financial year (primarily Asia); • Higher dividend (50% pay-out policy unchan
Slide 7: Overall Objectives and Realisation
OVERALL OBJECTIVES AND REALISATION 2018/2019 2017/2018 Sustainable revenue growth + 8.9% + 7.8% Return on Sales > 10% 9.6% 9.8% Return on Investment > 15% 24.0% 25.2% Zero safety accidents (LTI) 1 2 Innovation Index > 10% 16.6% 10.4% Solvency ratio > 40% 72.3% 73.1% 7
Slide 8: Developments
DEVELOPMENTS • First year of Board of Management (BoM) with three members (CTO, CFO en CEO); • Divisional teams strenghtened (Technology Manager North America, Business Controller Europe); • Developments Corporate Social Responsibility (CSR) positive; • Innovation examples: Holcomer Circulaire, dark
Slide 9: Financial Results 2018 / 2019
FINANCIAL RESULTS 2018 / 2019 9
Slide 10: Holland Colours Group: Key Figures
HOLLAND COLOURS GROUP: KEY FIGURES In million euros +9% +7% +3% +8% +14% +5% +26% +13% +44% 10
Slide 11: Development Net Result
DEVELOPMENT NET RESULT In million euros 11
Slide 12: Revenue Growth HCA Excl. Currency Results
REVENUE GROWTH HCA EXCL. CURRENCY RESULTS FIXED USD EXCHANGE RATE OF 2012/2013 12
Slide 13: Division Europe
DIVISION EUROPE In million euros 13
Slide 14: Division Americas
DIVISION AMERICAS In million USD 14
Slide 15: Division Asia
DIVISION ASIA In million USD 15
Slide 16: Operating Working Capital
OPERATING WORKING CAPITAL In million euros 2016/2017 2017/2018 2018/2019 Total OWC 14.3 17.2 19.4 As % of sales 18% 21% 21% 16
Slide 17: Outlook 2019/2020
OUTLOOK 2019/2020 • Development growth global economy; • Ongoing shortage of certain raw materials and related volatility of prices; • Implementation strategy. 17
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Slide 19: Strategy Project 'Spectrum 2023'
STRATEGY PROJECT ‘SPECTRUM 2023’ Insights obtained • HCA has a solid base with strong market positions and the foundation to retain its independence; • Our core markets keep evolving and will remain attractive; • The benefits of plastic are acknowledged; color will stay; requirements change continuo
Slide 20: Our Mission
OUR MISSION Our Brand Our Differentiators Coloring Your Success • We develop existing and new customer relationships into design Our Core Values partnerships; • We do not compromise on regulatory compliance and we maintain • Teamwork the highest quality standards; • Accountability • We continuously
Slide 21: Our Strategic Goals
OUR STRATEGIC GOALS Focus on current and related product / market segments • Extending and protecting global market positions in packaging; • Extending and protecting global market positions in building and construction; • Extending market positions in coatings and sealants, primarily in EMEA. 21
Slide 22: The Choices We Made
THE CHOICES WE Target & Initiative Management MADE Grow core Geographic focus Portfolio expansion REVENUE GROWTH Commercial excellence Operational excellence CONTINUOUS IMPROVEMENT People excellence Innovation excellence 22 22
Slide 23: Strategy Road Map: Growing Together 2023
STRATEGY ROAD MAP: “GROWING TOGETHER 2023” From project (“Spectrum 2023”) to execution (“Growing Together 2023”) • Growing: current and related product/market segments; • Together: customer driven (co-design) and result driven (continuous improvement); • Target and Initiative Management (TIM): execu
Slide 24: Our Overall Objectives
OUR OVERALL OBJECTIVES Streefgetallen • Zero safety incidents; • Innovation Index above 10%; • Continued revenue growth; • Return on Sales of at least 10%; • Return on Investment of at least 15%; • Debt as % of balance sheet total below 40%. 24
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Slide 26: Thank You for Your Visit
THANK YOU FOR YOUR VISIT AND WE HOPE TO SEE YOU AGAIN! 26