Tessenderlo Group. Strong first quarter operational performance confirms exit of the crisis. 1Q11 Results presentation Brussels - May 5 th, 2011

Transcription

1 Tessenderlo Group Strong first quarter operational performance confirms exit of the crisis Results presentation Brussels - May 5 th, 2011

2 A quarter of strong performance REVENUE 670.9m EUR +18.3% REBITDA 65.8m EUR % PROFIT FOR THE PERIOD : 30.1m EUR : -5.1m EUR LEVERAGE : 0.8x : 3.2x 2

3 Highlights Sale of Tessenderlo Fine Chemicals (UK), January 2011 Transaction amounted to 17m GBP on a cash-free, debt-free basis Expansion of core sulfur activities in the US, March 2011 Tessenderlo Kerley (TKI) and Gary Williams Energy Corporation entered into a long-term agreement for expanded sulfur processing services and sulfur fertiliser capacity to meet growing demand Amendment and extension of 2010 syndicated credit facilities with improved terms and conditions, April

4 Revenue increased in all segments Million EUR and % increase versus % % PVC/ Chlor-Alkali % Gelatin & Akiolis % Tessenderlo Kerley % Inorganics +12.8% +1.1% PPS & Profiles Other Businesses* Revenue Revenue * Includes disposal of Tessenderlo Fine Chemicals (UK) Broad-based contribution from all segments, including double-digit growth in 5 of 6 reported segments, resulted in 18.3% increase in Group revenue Highest 1Q revenue of the last 7 years 4

5 Strong REBITDA growth All operating segments higher than a year ago Million EUR and % increase versus % Tessenderlo Kerley PVC/ Chlor-Alkali Inorganics Other Businesses* Gelatin & Akiolis PPS & Profiles Nonallocated (1.2) REBITDA * Includes disposal of Tessenderlo Fine Chemicals (UK) REBITDA All operating segments registered positive REBITDA in and outperformed Tessenderlo Kerley and Gelatin & Akiolis contributed together more than 50% to Group REBITDA Strong recovery of REBITDA for Other Businesses, PVC/Chlor-Alkali and Inorganics vs

6 Group net debt and leverage remain well under control Improved working capital/revenue year on year Gain from the disposal of Tessenderlo Fine Chemicals (UK) Higher capex due to investments in Gelatin and Tessenderlo Kerley /3/ /12/ /3/ Net debt (million EUR) Non-recourse factoring (million EUR) Notional net debt including non-recourse factoring / LTM REBITDA (x) Net debt / LTM REBITDA (x) 6

7 Significantly improved revenue and profitability GROUP KEY FIGURES Million EUR % Change Revenue % REBITDA % REBITDA margin 9.8% 5.7% 408 bps REBIT x REBIT margin 5.9% 0.7% 515 bps Non-recurring items x EBIT x Profit (+)/loss (-) for the period Basic earnings per share (EUR) Diluted earnings per share (EUR)

8 Group Revenue and REBITDA per segment Revenue (% of total) REBITDA (% of total*) Tessenderlo Kerley Other businesses Other businesses Inorganics 12.6% 15.9% 11.2% meur 17.7% 21.4% 21.3% PVC/Chlor-Alkali PPS & Profiles PPS & Profiles Inorganics PVC/ Chlor-Alkali 13.3% 8.7% 17.1% 6.2% 65.8 meur 26.8% 27.9% Tessenderlo Kerley Gelatin & Akiolis Gelatin & Akiolis *Percentage of total REBITDA before non-allocated costs 8

9 REBITDA (% of total) 8.7% 65.8m EUR Inorganics 120 Revenue (Million EUR) 18 REBITDA (Million EUR) & REBITDA margin (%) 29% 25% 21% 14 17% 80 13% % 5.9% 9% 5% 1% % -7% -11% -15% Revenue +19.6% due to higher volumes of both sulfates and phosphates; prices for sulfates were in line with, while prices for phosphates were much higher versus a year ago Better gross margins in both sulfates and phosphates businesses led to a significant increase in REBITDA and REBITDA margin 9

10 REBITDA (% of total) 65.8m EUR PVC/Chlor-Alkali 17.1% 160 Revenue (Million EUR) REBITDA (Million EUR) & REBITDA margin (%) 20% % % % 10% 5% 0% -5% -10% -15% Revenue +21.3% thanks to the positive impact of volume growth and increased selling prices REBITDA more than doubled, almost entirely driven by better gross margins 10

11 REBITDA (% of total) 65.8m EUR Gelatin & Akiolis 26.8% 120 Revenue (Million EUR) REBITDA (Million EUR) & REBITDA margin (%) 16.0% 16.3% % % 3% -2% % -12% Firm demand and pricing resulted in revenue increase of 24.6% Top line growth and tight cost management drove REBITDA 26.9% higher than last year 11

12 REBITDA (% of total) 65.8m EUR 27.9% Tessenderlo Kerley 80 Revenue (Million EUR) 18 REBITDA (Million EUR) & REBITDA margin (%) 21.2% 26.8% 25% 21% % 13% 9% 5% 1% -3% % -11% -15% +37.6% segment revenue as both specialty fertilisers and crop protection products increased due to solid demand and higher pricing REBITDA up thanks mainly to higher revenue, with costs under control 12

13 REBITDA (% of total) 13.3% 65.8m EUR Plastic Pipe Systems & Profiles 160 Revenue (Million EUR) 18 REBITDA (Million EUR) & REBITDA margin (%) 25% 21% 17% % 6.7% % 9% 5% 1% -3% -7% % -15% Segment revenue +12.8% with Plastic Pipe Systems (PPS) and Profiles higher; PPS returned to more normal volume levels after low Strong top line growth led to REBITDA growth of 23.6%, all attributable to Plastic Pipe Systems 13

14 REBITDA (% of total) 6.2% 65.8m EUR Other Businesses 120 Revenue (Million EUR) 18 REBITDA (Million EUR) & REBITDA margin (%) 25% 21% 17% % 13% 9% 5% % 1% -3% % -11% -15% * Includes disposal of Tessenderlo Fine Chemicals (UK) Compounds reported higher revenue, thanks to higher volumes from automotive sector, and similar REBITDA to last year Organic Chlorine Derivatives and Pharmaceutical Intermediates decreased in terms of revenue, but posted better REBITDA year on year Pharmaceutical Intermediates REBITDA benefited from improved product mix 14

15 Net result driven primarily by strong operational performance Million EUR (5.3) (10.2) REBIT Non-recurring items EBIT Finance costs Income Tax Expense Share of result of investments PROFIT 15

16 Non-recurring items Million EUR (0.7) Capital gain on sale of non strategic assets Other non-recurring costs Total Non-recurring items Capital gains consist of sale of the subsidiary Tessenderlo Fine Chemicals Ltd. (UK) land owned by Tessenderlo Kerley 16

17 Net debt Million EUR Net debt 31/12/2010 Net debt 31/03/2011 (162.0) (176.8) Capex & other investments (18.4) Cash flow from operating activities (15.3) Net other movements (0.4) Increase of 2.9 million EUR in capex compared to March 2010 Mainly impacted by working capital requirements linked to revenue growth Proceeds from sale of non-strategic assets

18 Group Trade Working Capital Evolution Million EUR % 21.6% % % % March-10 June-10 September-10 December-10 March-11 Trade Working Capital excluding factoring Trade Working Capital excluding factoring/last 12 months revenue (%) 18

19 Solid balance sheet maintained Million EUR Non-current assets held for sale Liabilities associated with assets classified as held for sale Other current assets Other liabilities Cash and cash equivalents Current debt Non-current debt Non-current assets Total equity Group gearing declined from 25.4% (33.1% based on net debt taking into account non-recourse factoring) to 19.3% (29.1% based on net debt taking into account non-recourse factoring) 19

20 Outlook 2011 expectations of a year of further progress confirmed by first quarter results Market conditions such as increasing demand in the agricultural sector, but also higher raw material costs, are expected to remain in place in coming months Anticipate year on year growth of revenue and profitability in the second quarter, traditionally highest contributor to full year results Overall, expectations are for further improvement in revenue and profitability for full year 2011 compared to

21 Q & A

22 Tessenderlo Group Strong first quarter operational performance confirms exit of the crisis Results presentation May 5 th, 2011