Tessenderlo Group reports solid operational performance and completes divestment of PVC/Chlor- Alkali businesses

Transcription

1 Tessenderlo Group reports solid operational performance and completes divestment of PVC/Chlor- Alkali businesses 2Q11 and HY Results presentation August 25 th, 211

2 Second quarter financial summary REVENUE (Million EUR) REBITDA (Million EUR) Continuing operations Discontinued operations Total Continuing operations Discontinued operations Total % +5.% PROFIT FOR THE PERIOD (Million EUR) REBITDA MARGIN (%) Continuing operations Discontinued operations Total Continuing operations Discontinued operations Total % 5.% 9.6% +3 bps 2

3 Half year financial summary REVENUE (Million EUR) REBITDA (Million EUR) Continuing operations Discontinued operations Total Continuing operations Discontinued operations Total 1, , % +35.3% PROFIT FOR THE PERIOD (Million EUR) REBITDA MARGIN (%) Continuing operations Discontinued operations Total Continuing operations Discontinued operations Total % 5.8% 9.4% +2 bps 3

4 Highlights Major step in transformation into a specialty group sale of PVC, Chlor-Alkali & part of OCD activities, August 211 Sale of Chelsea Building Products, July 211 Further expansion of sulfur activities in the US, May 211 Tessenderlo Kerley (TKI) to expand its sulfur fertilizer capacity with new plant that will produce Thio-Sul (ammonium thiosulfate) to meet growing demand for the Pacific Northwest and northern California markets 4

5 2Q11 Revenue by operating segment Million EUR and % increase versus 2Q % % Gelatin & Akiolis % Tessenderlo Kerley +2.1% PPS & Profiles -2.% Other Businesses -9.8% Inorganics (2.2) (1.7) Revenue 2Q1 Revenue 2Q11 The 2Q11 increase of 2.3% in revenue was driven by Gelatin & Akiolis, Tessenderlo Kerley and Plastic Pipe Systems; excluding the impact of the sale of Tessenderlo Fine Chemicals, revenue would have risen 4.8% Inorganics revenue fell compared to a strong 2Q1 (ahead on YTD basis) as markets in Mediterranean region were lower 5

6 HY11 Revenue by operating segment Million EUR and % increase versus HY % % Gelatin & Akiolis % Tessenderlo Kerley +6.9% PPS & Profiles +3.5% Inorganics +1.8% Other Businesses Revenue HY1 Revenue HY11 Half year 211 revenue grew 9.5% with all segments contributing and double digit growth from Gelatin & Akiolis and Tessenderlo Kerley; excluding the impact of the sale of Tessenderlo Fine Chemicals, revenue would have been 11.8% higher 6

7 2Q11 REBITDA by operating segment Million EUR and % increase versus 2Q1 + 5.% +2.9 Tessenderlo Kerley Gelatin & Akiolis Other Businesses Inorganics Nonallocated (1.9) PPS & Profiles (2.3) REBITDA 2Q1 REBITDA 2Q11 2Q11 REBITDA growth of 5.% due to Tessenderlo Kerley and Gelatin & Akiolis, partly offset lower PPS & Profiles REBITDA and an increase in non-allocated costs; on a like-for-like basis adjusting for the sale of Tessenderlo Fine Chemicals, growth was 7.1% 7

8 HY11 REBITDA by operating segment Million EUR and % increase versus HY % +3.5 Tessenderlo Kerley Other Businesses +7.8 Gelatin & Akiolis +6.6 Inorganics +6.6 PPS & Profiles (.5) Nonallocated (3.1) REBITDA HY1 REBITDA HY11 HY11 REBITDA was 35.3% higher than a year ago, with nearly all segments returning improved REBITDA; adjusting for the sale of Tessenderlo Fine Chemicals, the like-for-like increase was 38.2% 8

9 Strong balance sheet maintained Working capital/revenue decreased year on year Gain from the disposal of Tessenderlo Fine Chemicals (UK) Higher capex in Gelatin and Tessenderlo Kerley Proceeds for the sale of PVC/Chlor- Alkali to Ineos not yet reflected at end June /6/21 31/12/21 3/6/211 Net debt (Million EUR) Non-recourse factoring (Million EUR) Notional net debt including non-recourse factoring / LTM REBITDA (x) Net debt / LTM REBITDA (x) 9

10 Improved revenue and profitability GROUP KEY FIGURES Continuing operations 2Q11 2Q1 % Change Million EUR HY11 HY1 % Change % Revenue 1, , % % REBITDA % 1.8% 1.5% 3 bps REBITDA margin 1.5% 8.5% 2 bps % REBIT % 7.3% 6.6% 7 bps REBIT margin 6.8% 4.2% 26 bps Non-recurring items % % EBIT % % Recurrent profit (+)/loss (-) for the period % % Profit (+)/loss (-) for the period % 1

11 One-time non-cash charge taken in 2Q11 GROUP KEY FIGURES Discontinued operations 2Q11 2Q1 Million EUR HY11 HY Revenue REBITDA % -.8% REBITDA margin 5.8% 1.3% REBIT % -6.3% REBIT margin 1.7% -4.4% Recurrent profit (+)/loss (-) for the period Profit (+)/loss (-) for the period

12 2Q11 Group Revenue and REBITDA per segment Revenue (% of total) REBITDA (% of total*) Tessenderlo Kerley Other businesses Inorganics 17.7% 14.6% meur 28.1% PPS & Profiles Inorganics PPS & Profiles 11.5% 21.7% 9.9% 6.8 meur 31.8% Tessenderlo Kerley Other businesses 18.7% 2.8% Gelatin & Akiolis 25.1% Gelatin & Akiolis *Percentage of total REBITDA before non-allocated costs 12

13 HY11 Group Revenue and REBITDA per segment Revenue (% of total) REBITDA (% of total*) Tessenderlo Kerley Other businesses Inorganics 18.5% Other businesses 14.1% 1,116.9 meur 19.3% 27.% 21.1% PPS & Profiles Gelatin & Akiolis Inorganics PPS & Profiles 1.8% 18.6% 1.6% meur 28.% 32.% Tessenderlo Kerley Gelatin & Akiolis *Percentage of total REBITDA before non-allocated costs 13

14 REBITDA (% of total) 1.8% meur Inorganics 12 Revenue (Million EUR) REBITDA (Million EUR) & REBITDA margin (%) % 6.8% 2% 1% % -1% 2 Q1 Q HY1 HY11-2% -3% Million EUR HY 21 HY 211 Revenue Q11 revenue decreased with sulphates volumes much lower than the very high level of 2Q1, partly due to lower Mediterranean area demand, while phosphates volumes had a modest decline; prices for sulphates advanced on last year and prices for phosphates continued to be well above a year ago REBITDA in 2Q11 was broadly unchanged as a higher phosphates contribution was nearly offset by a lower sulphates contribution, which was impacted by a temporary increase in maintenance expenses HY11 revenue rose helped by a stronger first quarter, while REBITDA is nearly double that of a year ago 14

15 REBITDA (% of total) meur Gelatin & Akiolis 28.% Revenue (Million EUR) REBITDA (Million EUR) & REBITDA margin (%) % 15.4% 2% 1% Q1 Q HY HY11 % -1% -2% -3% Million EUR HY 21 HY 211 Revenue In line demand and higher pricing drove a 13.9% rise in segment revenue in 2Q11 Higher revenue translated into an increase in 2Q11 REBITDA by 16.8% year on year, while at the same time the segment is increasing expenses related to future growth projects (Brazil and China) For HY11 strong revenue also drove a solid REBITDA increase 15

16 REBITDA (% of total) meur 32.% Tessenderlo Kerley 9 6 Revenue (Million EUR) REBITDA (Million EUR) & REBITDA margin (%) 22.% 26.5% 2% 1% Q Q HY HY11 % -1% -2% -3% Million EUR HY 21 HY 211 Revenue Q11 was a very strong quarter with a further growth of revenue as agricultural input demand remained high and prices increased, reflecting higher market values for sulphur REBITDA jumped due to higher revenue and margins in the second quarter For the half year 211, TKI has delivered excellent results at revenue and REBITDA level, based on ongoing demand and beneficial sulphur economics 16

17 REBITDA (% of total) 18.6% meur Plastic Pipe Systems & Profiles Revenue (Million EUR) REBITDA (Million EUR) & REBITDA margin (%) 8.8% 8.% 2% 1% Q Q HY1 HY11 % -1% -2% -3% Million EUR HY 21 HY 211 Revenue In 2Q11, solid broad based revenue growth for Plastic Pipe Systems (PPS) was largely offset by a lower revenue in Profiles, mainly due to a material decrease in the US 2Q11 REBITDA dropped mainly linked to a squeeze on margins (prices not fully compensating continuous rise in PVC input costs); expansion of the UK distribution network continued which resulted in higher expenses For the HY, higher revenue mostly reflects the 1Q11 gain against a low 1Q1, while REBITDA was similar to last year and held back by margin pressures 17

18 REBITDA (% of total) 1.6% meur Other Businesses* * Includes Water Treatment and Sulphur Derivatives Revenue (Million EUR) REBITDA (Million EUR) & REBITDA margin (%) 2.8% 6.3% 2% 1% % -1% Q1 Q HY HY11-2% -3% Million EUR HY 21 HY 211 Revenue Revenue had a small decrease in 2Q11, primarily due to the loss of revenue in Organic Chlorine Derivatives (sale of Tessenderlo Fine Chemical Jan 211) and Pharma (exit glyine activity end of 21); Compounds as well as Water Treatment and Sulphur Derivatives (WTSD) had higher revenue 2Q11 REBITDA was in line with last year, with Compounds, OCD, and WTSD all increasing while Pharmaceutical Intermediates fell HY11 results showed similar revenue but much improved profitability 18

19 Profit from continuing operations for HY11 driven primarily by strong operational performance Million EUR REBIT HY11 Non-recurring items EBIT Finance costs Income Tax Expense Share of result of investments PROFIT from continuing operations HY11 Result from discontinued operations Total result HY (11.1) (21.2) (153.3) (13.3) REBIT contribution translated into solid profit from continuing operations for HY11 Taking into account the one-time impairment of 158. million EUR, included in the result from discontinued operations, the net result for the period HY11 was million EUR 19

20 Non-recurring items HY11 Million EUR.1 (.6) (1.8) Capital gain on sale of non strategic assets Provisions and claims Restructuring Other non-recurring costs Total Non-recurring items 2

21 Net debt Million EUR Net debt 31/12/21 Net debt 3/6/211 (162.) (176.7) Capex & other investments (47.3) Net other movements (2.1) Cash flow from operating activities Proceeds from sale of non-strategic assets Working capital requirements rose linked to revenue growth but lower as % of revenue Sale of Tessenderlo Fine Chemicals (UK) in January

22 Group Trade Working Capital Evolution Million EUR % 16.7% 19.2% 25% 2% 4 15% % 5% 1 June 21 December 21 June 211 % Trade Working Capital excluding factoring Trade Working Capital excluding factoring/last 12 months revenue (%) 22

23 Solid balance sheet maintained Million EUR Non-current assets held for sale Other current assets Cash and cash equivalents 6. 1, , , , , , Liabilities associated with assets classified as held for sale Other liabilities Current debt Non-current debt 4. Non-current assets Total equity Main impact is impairment of 158 million EUR on equity from sale of PVC/Chlor-Alkali activities Gearing remains low at 23.7% despite not yet reflecting the receipt of the cash proceeds from the sale 23

24 Outlook Tessenderlo Group s operational performance in the first half of 211 has shown progress versus the same period a year ago. For the continuing operations, the second half of 211 is anticipated to be broadly in line with the solid results recorded in the second half of 21. Consequently, as expected, 211 will represent a clearly improved operating result for the continuing operations of the group on a full year basis. At the same time, the group has maintained a healthy balance sheet, and this will be strengthened further, following receipt of cash proceeds for the sales of PVC/Chlor-Alkali and Chelsea Building Products. This context of better results and low net debt levels will allow the group to continue implementing its strategy of becoming a higher return specialty company. 24

25 Q & A

26 Appendix

27 2Q11 Revenue by operating segment Million EUR and % increase versus 2Q % % Gelatin & Akiolis +11.5% Other Businesses +1.9% Tessenderlo Kerley +2.1% PPS & Profiles -9.8% Inorganics (1.7) Revenue 2Q1 Revenue 2Q11 Revenue grew 4.8% on a like-for-like basis (adjusted for the impact of the sale of Tessenderlo Fine Chemicals, January 211) 27

28 HY11 Revenue by operating segment Million EUR and % increase versus HY % % Gelatin & Akiolis % Tessenderlo Kerley % Other Businesses +6.9% PPS & Profiles +3.5% Inorganics Revenue HY1 Revenue HY11 Revenue grew 11.8% on a like-for-like basis (adjusted for the impact of the sale of Tessenderlo Fine Chemicals, January 211) 28

29 2Q11 REBITDA by operating segment Million EUR and % increase versus 2Q % +4. Tessenderlo Kerley +4.7 Gelatin & Akiolis +2.4 Other Businesses Inorganics Nonallocated (1.9) PPS & Profiles (2.3) REBITDA 2Q1 REBITDA 2Q11 2Q11 REBITDA grew 7.1% on a like-for-like basis (adjusted for the impact of the sale of Tessenderlo Fine Chemicals, January 211) 29

30 HY11 REBITDA by operating segment Million EUR and % increase versus HY % Tessenderlo Kerley Other Businesses +9.6 Gelatin & Akiolis +6.6 Inorganics +6.6 PPS & Profiles Nonallocated (.5) (3.1) REBITDA HY1 REBITDA HY11 REBITDA grew 38.2% on a like-for-like basis (adjusted for the impact of the sale of Tessenderlo Fine Chemicals, January 211) 3

31 REBITDA (% of total) 1.6% meur Other Businesses* * Includes Water Treatment and Sulphur Derivatives Revenue (Million EUR) REBITDA (Million EUR) & REBITDA margin (%) 2.1% 6.3% 2% 1% % -1% Q1 Q HY HY11-2% -3% Million EUR HY 21 HY 211 Revenue Like-for-like basis adjusting for the impact of the sale of Tessenderlo Fine Chemicals (UK) 31

32 Inorganics Revenue (Million EUR) Q1 2Q1 3Q1 4Q1 1Q11 2Q11-9.8% REBITDA (Million EUR) & REBITDA margin (%) 12 7.% 8.6% 4.7% 5.9% 7.8% 9% 6% 9 -.3% 3% % (.2) 1Q1 2Q1 3Q1 4Q1 1Q11 2Q11.% -3% -6% -9% -12% -15% -18% -21% -24% 32

33 Gelatin & Akiolis Revenue (Million EUR) Q1 2Q1 3Q1 4Q1 1Q11 2Q % REBITDA (Million EUR) & REBITDA margin (%) 2 16.% 14.1% 15.% 14.6% 16.3% 14.5% 15% 15 1% % 5 % 1Q1 2Q1 3Q1 4Q1 1Q11 2Q11-5% +16.8% 33

34 Tessenderlo Kerley 9 Revenue (Million EUR) Q1 2Q1 3Q1 4Q1 1Q11 2Q % REBITDA (Million EUR) & REBITDA margin (%) 26.8% 26.1% % 22.7% 22.3% 25% % 2% 15% % 5% % 1Q1 2Q1 3Q1 4Q1 1Q11 2Q11-5% +27.6% 34

35 Plastic Pipe Systems & Profiles Revenue (Million EUR) Q1 2Q1 3Q1 4Q1 1Q11 2Q % REBITDA (Million EUR) & REBITDA margin (%) % 1.9% 9.% 5.1% 6.7% 9.2% 11% 9% 7% 5% % 1% -1% -3% 1Q1 2Q1 3Q1 4Q1 1Q11 2Q11-5% -13.8% 35

36 Other Businesses* Includes Water Treatment and Sulphur Derivatives Revenue (Million EUR) Q1 2Q1 3Q1 4Q1 1Q11 2Q11-2.% REBITDA (Million EUR) & REBITDA margin (%) 1 6.1% 6.4% 6.3% % 2.5% % (.7) 1Q1 2Q1 3Q1 4Q1 1Q11 2Q % 5% 3% 1% -1% -3% -5% 36

37 Non-recurring items 2Q11 Million EUR Provisions and claims Capital gain on sale of non strategic assets Restructuring Other non-recurring costs Total Non-recurring items.1 (.1) (.6) (1.) (1.6) 37

38 Tessenderlo Group reports solid operational performance and completes divestment of PVC/Chlor- Alkali businesses 2Q11 and HY Results presentation August 25 th, 211