Recticel Sa · EURONEXT:RECT

Recticel Sa — H1 2021 Earnings Presentation

31 slides from Recticel Sa's earnings presentation, Aug 27, 2021

  1. Slide 1: First Half-Year 2021 Financial Analysts Meeting

    RECTICEL First Half-Year 2021 Financial Analysts Meeting Brussels – 27 August, 2021 Olivier Chapelle – Chief Executive Officer Jean-Pierre Mellen – Chief Financial Officer Dirk Verbruggen – General Counsel & Company Secretary Michel De Smedt – Investor Relations Officer 1 Brussels, August 27, 2021 A

  2. Slide 2: Agenda

    Agenda  Key highlights 1H2021  1H2021 Results  Financial position  Outlook 2021  Renewed sustainability strategy 2021-2025  Comments on results per business line  Appendices 2 Brussels, August 27, 2021 Analysts’ Meeting – Recticel First Half-Year 2021

  3. Slide 3: Strong volumes | Solid margins | Integration of FoamPartner

    Strong volumes | Solid margins | Integration of FoamPartner 1 Sales €596.2m (+59.3%) | Adjusted EBITDA €56.9m (x3) | Net Result (share of the Group) €28.0m 2 Integration of FoamPartner (Engineered Foams) since 01 April 2021, with 2Q sales @ €71.9m 3 Tight raw material supply (force majeure events) l

  4. Slide 4: Agenda

    Agenda  Key highlights 1H2021  1H2021 Results  Financial position  Outlook 2021  Renewed sustainability strategy 2021-2025  Comments on results per business line  Appendices 4 Brussels, August 27, 2021 Analysts’ Meeting – Recticel First Half-Year 2021

  5. Slide 5: Consolidated sales +59.3% | Adjusted EBITDA x3 | Result of the period

    Consolidated sales : +59.3% | Adjusted EBITDA : x3 | Result of the period after taxes €28.0m 1/2 1/2 1/2 Net financial debt of €206.6m (including IFRS16) following acquisition of FoamPartner in million EUR 1H2020 1H2021 D% (a) (b) (b)/(a)-1 Sales 374.3 596.2 59.3% Gross profit 65.3 109.4 67.4% as %

  6. Slide 6: Group 1H2021 net sales and Adjusted EBITDA by segment

    Group 1H2021 Net sales and Adjusted EBITDA supported by strong performance from Insulation and Engineered Foams. Bedding at the level of 2020 due to COVID related restrictions 1H2020 1H2021 in million EUR 1Q2020 2Q2020 1H2020 1Q2021 2Q2021 1H2021 D 1Q D 2Q D 1H in million EUR 1H2020 1H2021 D 1H Adj

  7. Slide 7: The ICIS perspective on raw material costs in June 2021

    Europe June polyols contract range narrows, as supply eases The ICIS perspective on raw material costs in June 2021 Europe PMDI contract range narrows as supply tightens and demand is robust Europe TDI contracts drop in June. S upply is ample despite maintenance shut down at BASF. Demand is healthy

  8. Slide 8: Adjustments to Operating Profit: €-10.2m

    Adjustments to Operating Profit : €-10.2m in million EUR 1H2020 1H2021 Restructuring charges and provisions ( 1.4) ( 3.3) Other ( 0.3) ( 6.9) Total impact on EBITDA ( 1.7) ( 10.2) Impairments ( 2.1) 0.0 Total impact on Operating profit (loss) ( 3.8) ( 10.2)  Adjustments to Operating Profit on conti

  9. Slide 9: EBITDA and Operating Profit after Adjustments

    EBITDA and Operating Profit after Adjustments  EBITDA: €46.7m versus €17.4m in 1H2020.  EBITDA margin of 7.8% versus 4.6% in 1H2020. in million EUR 1H2020 1H2021 D 1H Engineered Foams 9.5 24.5 158.7% Bedding 3.5 3.0 -15.4% Insulation 11.2 28.7 156.4% Corporate / Eliminations ( 6.8) ( 9.5) 39.8% TO

  10. Slide 10: Financial result of €-1.8m

    Financial result of €-1.8m | Positive contribution from other associates offset by change in value of option structures (Proseat/TEMDA2) | Recognition of additional deferred tax assets  Financial result: €-1.8m (1H2020: €-2.6m) • Net interest charges: €-2.9m (1H2020: €-1.1m), of which €-1.2m millio

  11. Slide 11: Agenda

    Agenda  Key highlights 1H2021  1H2021 Results  Financial position  Outlook 2021  Renewed sustainability strategy 2021-2025  Comments on results per business line  Appendices 11 Brussels, August 27, 2021 Analysts’ Meeting – Recticel First Half-Year 2021

  12. Slide 12: Total net debt position increased by €247.2m over 1H2021

    Total net debt position increased by €247.2m over 1H2021 to reach €251.8m.  Resulting from: ▪ FoamPartner acquisition €223.6m and its €7.5m impact on consolidated IFRS 16 lease debt, ▪ Higher net working capital induced by 1/ higher volumes, 2/ usual seasonality, and 3/ effects of increased raw mat

  13. Slide 13: Increase of synergies expectation related to the FoamPartner acquisition

    Increase of synergies expectation related to the FoamPartner acquisition The integration of FoamPartner in Engineered Foams progresses smoothly and forecasted synergies at the horizon of 2023 are expected to reach €18m. 13 Brussels, August 27, 2021 Analysts’ Meeting – Recticel First Half-Year 2021

  14. Slide 14: Bedding divestment process is on track

    Bedding divestment process is on track The divestment process of the Bedding business is on track and binding offers are expected by the end of 3Q2021. 14 Brussels, August 27, 2021 Analysts’ Meeting – Recticel First Half-Year 2021

  15. Slide 15: Jean-Pierre Mellen will retire as Chief Financial Officer

    Jean-Pierre Mellen will retire as Chief Financial Officer There will be an important change in the composition of the Group Management Committee: After 19 years of service as CFO and Member of the Group Management Committee, Jean-Pierre Mellen has decided to retire on 31 August 2021. He will be succ

  16. Slide 16: Agenda

    Agenda  Key highlights 1H2021  1H2021 Results  Financial position  Outlook 2021  Renewed sustainability strategy 2021-2025  Comments on results per business line  Appendices 16 Brussels, August 27, 2021 Analysts’ Meeting – Recticel First Half-Year 2021

  17. Slide 17: Outlook for full year 2021 is confirmed

    Outlook for full year 2021 is confirmed Our underlying end-use markets continue to show positive momentum in a very volatile environment. Based upon the current trading, our Group confirms its expectation of an Adjusted EBITDA in a range between €123m to €133m for the full year 2021, including the c

  18. Slide 18: Agenda

    Agenda  Key highlights 1H2021  1H2021 Results  Financial position  Outlook 2021  Renewed sustainability strategy 2021-2025  Comments on results per business line  Appendices 18 Brussels, August 27, 2021 Analysts’ Meeting – Recticel First Half-Year 2021

  19. Slide 19: Committed to sustainability

    Committed to sustainability Rated “A” by MSCI since 2018 Over the lifetime of their use, the insulation products we sold in 2020 will offset 46 times our carbon footprint for the year Our promise Transition to a circular economy Innovation at our core We will raise this climate-positive multiple rat

  20. Slide 20: Agenda

    Agenda  Key highlights 1H2021  1H2021 Results  Financial position  Outlook 2021  Renewed sustainability strategy 2021-2025  Comments on results per business line  Appendices 20 Brussels, August 27, 2021 Analysts’ Meeting – Recticel First Half-Year 2021

  21. Slide 21: Engineered Foams

    Full integration of FoamPartner since 01 April 2021 Engineered Foams Restored market demand with higher volumes and higher selling prices Improved product-mix and improved profitability Key financials Recent developments D in million EUR 1H2020 1H2021  High chemical raw material prices. (a) (b) (b)

  22. Slide 22: Bedding

    Lower sales (-3.4%) with progressive quarter-on-quarter improvement Divestment process launched Key financials Recent developments in million EUR 1H2020 1H2021 D  Divestment process of Bedding division has been launched (a) (b) (b)/(a)-1 Sales 109.2 105.5 -3.4% Adjusted EBITDA 4.5 4.5 -1.3% as % of

  23. Slide 23: Insulation

    Increased volumes due to solid demand Higher selling prices following the steep increases of chemical raw materials Key financials Recent developments in million EUR 1H2020 1H2021 D  Strong demand for VIP - Vacuum Insulation Panels - . Sales are (a) (b) (b)/(a)-1 Sales 112.7 188.4 67.1% boosted by

  24. Slide 24: Agenda

    Agenda  Key highlights 1H2021  1H2021 Results  Financial position  Outlook 2021  Renewed sustainability strategy 2021-2025  Comments on results per business line  Appendices 24 Brussels, August 27, 2021 Analysts’ Meeting – Recticel First Half-Year 2021

  25. Slide 25: Consolidated Income Statement

    Consolidated Income Statement Group Recticel 1H2021 1H2020 in thousand EUR Sales 596 162 374 262 Distribution costs ( 31 951) ( 25 620) Cost of sales ( 454 808) ( 283 299) Gross profit 109 403 65 343 General and administrative expenses ( 37 704) ( 28 589) Sales and marketing expenses ( 34 571) ( 29

  26. Slide 26: Consolidated Comprehensive Income

    Consolidated Comprehensive Income Group Recticel 1H2021 1H2020 in thousand EUR Result for the period after taxes 28 243 60 080 Other comprehensive income Items that will not subsequently be recycled to profit and loss Actuarial gains (losses) on employee benefits recognized in equity 3 819 2 100 Def

  27. Slide 27: Consolidated Balance Sheet

    in thousand EUR Consolidated Balance Sheet Group Recticel Notes* 30 JUN 2021 31 DEC 2020 Intangible assets 44 070 14 806 Goodwill I.7.8.1. 34 578 24 139 Property, plant & equipment 327 525 173 000 Right-of-use assets 84 178 75 377 Investment property 5 331 3 331 Investments in associates 12 885 12 3

  28. Slide 28: Consolidated Statement of Cash Flow

    in thousand EUR Notes * 1H2021 1H2020 Group Recticel Operating profit (loss) 23 572 ( 2 886) Consolidated Statement of Cash Flow Income from discontinued operations Amortisation of intangible assets 1 287 2 236 68 812 1 202 Depreciation of tangible assets 20 525 26 953 Amortisation of deferred long

  29. Slide 29: Statement of changes in equity

    Statement of changes in equity Translation Total Total equity, non- Group Recticel Retained differences Non-controlling Capital Share premium Treasury shares Other reserves shareholders' controlling in thousand EUR earnings reserves and interests equity interests included Hedging reserves At the end

  30. Slide 30: Data per share

    Data per share in EUR 1H2021 1H2020 Number of shares outstanding (including treasury shares) 55 893 420 55 397 439 Weighted average number of shares outstanding (before dilution effect) 55 461 573 54 959 861 Weighted average number of shares outstanding (after dilution effect) 56 162 796 55 154 501

  31. Slide 31: Contacts

    Contacts Recticel International Headquarters Investor Relations Press 42, avenue du Bourget/Bourgetlaan 42 Michel De Smedt Olivier Chapelle, CEO B-1130 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)2 775 1

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