TenCate annual results 2012

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Annual results TenCate 2012 Outlook 2013

Ir L. de Vries, President and CEO Royal Ten Cate Amsterdam, Friday 1 March 2013

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1. Profile, trends and market themes

2. Core activities and market drivers

3. Organisation

4. Financial highlights and main developments 2012

5. Developments in 2nd half year 2012

6. Development revenu and EBITA 2012 per quarter

7. Personnel costs

8. Further explanation per sector

9. Actions and outlook 2012

10.Market outlook

Annual results TenCate 2012 2

Agenda Presentation annual results TenCate 2012

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Two mega trends: Safety & Sustainability


Profile trends and market themes

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• Protective fabrics • Army and special (police) forces

• Industry and emergency response

• Outdoor

• Aerospace and space composites • Commercial aircraft, military aircraft, satellites

• Radomes

• Armour composites • Vehicles, airplanes

• Personal protection

• Industrial composites • Automotive, energy etc.

• Parts & Components

• Geosynthetics • Infrastructure, agribusiness

• Environmental and water management

• Synthetic turf • Sports and landscaping


Core activities Protecting people

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Market drivers

• Safety and protection

• Carbon footprint

• Infrastructural developments

• Water management

• Sustainability

• Corporate social responsibility

TenCate operates on growth markets


• Modernisation army (safety, weight reduction, mobility)

• New specifications materials

• Modern mobiliy concepts

• Dewatering and detection systems

• Synthetic turf / water retention and filtration systems

• Process innovations

• Multi-risk solutions in personal safety

DEVELOPMENTS SOLUTIONS

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Sectors and market groups

6

Organisation

Annual results TenCate 2012

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Financial profile

7

REVENU SPLIT

REVENU 2012

€ 1,049 million (-8%)

Sector Advanced Textiles & Composites € 23.5 million (2011: € 70.3 million) Sector Geosynthetics & Grass € 31.5 million (2011: € 26.3 million) Sector Overig € -3.0 million (2011: € 5.9 million)

NET PROFIT 2012

DIVIDEND PER SHARE 2012: € 0.50 per share (dividend by choice) *

*) proposal

Rate low in 2012: € 16.66 Rate high in 2012: € 26.30

€ 22.3 million (2011: € 58.7 million) Normalised net profit 2012: € 27.6 million


44%49%

7%Advanced Textiles & Composites

Geosynthetics & Grass

Overig

EBITA 2012: € 52.0 (2011: € 102.5) EBITA before non-recurring items 2012: € 60 mln

By destination By origin Employees

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Development by revenu

8

538.4 525.9

74.5

1138.8

460.6 518.7

69.7

1049.0

0

200

400

600

800

1000

1200

Advanced Textiles & Composites

Geosynthetics & Grass Other TOTAL

2011 2012

Mutation (%)

Acq. / Desinv. (%)

Currency (%)

Organic (%)

Advanced Textiles & Composites -14 3 4 -21

Geosynthetics & Grass -1 2 5 -8

Other -6 0 5 -11

TOTAL -8 2 5 -15


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EBITA development

9

70.3

26.3

5.9

102.5

23.5 31.4

.3,0

52.0

-20

0

20

40

60

80

100

120

Advanced Textiles & Composites

Geosynthetics & Grass Other TOTAL

2011 2012

Mutation (%)

Acq. / Desinv. (%)

Currency (%)

Organic (%)

Advanced Textiles & Composites -67 1 2 -70

Geosynthetics & Grass 20 2 8 10

Other -151 0 -3 -148

TOTAL -49 1 3 -53


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Revenu development in perspective

10

0

200

400

600

800

1000

1200

2006 2007 2008 2009 2010 2011 2012

Revenu


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EBITA development in perspective

11

0

20

40

60

80

100

120

2006 2007 2008 2009 2010 2011 2012*

EBITA

* Before non-recurring items


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Geografical split in revenu By destination

12

5%

32%

48%

15%

2011

6%

33%

45%

16%

2012Netherlands

Rest of Europe

Americas + Canada

Asia


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• Decrease in revenu 8% to € 1,049 million (organic -15%) • EBITA normalised for once-only effects (€ 8 million): € 60 million • EBITA decreases with 49% to € 52 million • Net profit € 22.3 million (-62%)

• Organic -63% • Normalised net profit 2012: € 27.6 million

• Free cash flow +€ 68 million (2011: - € 9 million) • Debt bearing interest € 230 million (2011: -€ 9 million)

• Debt ratio improved from 2,74 mid 2012 to 2.55 end 2012 (2011: 2.12)

• Number of fte’s reduced by 350 since May 2012 • Sector Advanced Textiles & Composites: decrease in revenu and result due to shrinkage

American defense market • Profitable development TenCate Advanced Composites due to growth in aerospace composites

and new activities (automotive)

• Sector Geosynthetics & Grass: EBITA increases +20% (€ 5 million) at almost constant revenu • Government expenditures South Europe put pressure on volumes synthetic turf market

• Dividend proposal: € 0.50 (2011: € 0.95) / dividend by choice • Pay-out 58%

Highlights 2012

13 Annual results TenCate 2012

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• Write-off supplies (TenCate Protective Fabrics): -€ 3 million • Provision joint venture Thailand (TenCate Protective Fabrics): -€ 3 million • Adjustments at Xennia Technology: -€ 2.7 million • Reorganisation costs: -€ 2.6 million • Adjustment pension regulations: +€ 3 million

• On balance an effect on the operating result of approx. € 8 million

• EBITA before non-recurring items: € 60 million

Non-recurring items (EBITA level)


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Other financial information

• Investments: € 16.6 million (2011: € 25.7 million) • Investments in TenCate ABDS™ active blast countermeasure system € 4 million • > 50% of investments related to innovations

• Net profit bearing debt end 2012: € 230 million (2011: € 289 million) • Decrease debt position due to improved working capital (€ 40 million) • Debt ratio end 2012 (debt / EBITDA ratio): 2.55 (2011: 2.12)

• Tax burden: 34% (2011: 24%, normalised 2012: 28%)


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Group revenu Per quarter


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EBITA Per quarter

17

13,4 7,5 8,020,1 13,2

31,9

13,430,2

36,0

19,1

25,8

18,2

25,4

28,0

17,2

24,3

2,4

21,4

18,4

2,5

0,0

20,0

40,0

60,0

80,0

100,0

120,0

2008 2009 2010 2011 2012

Mln

. eur

o

Q4

Q3

Q2

Q1


PROTECTIVE FABRICS

Developments per sector Sector Advanced Textiles & Composites


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Course of events and indicative revenu split

• Revenu in 2012 decreases in particular because of less US defense orders (TenCate Defender™ M and Advanced Armour) • Defense revenu US (TenCate Defender™ M and armour revenu) decreases with

approx. US$ 130 million

• Revenu in composites keeps growing • Increase in revenu of space / aerospace composites • Acquisition PMC Baycomp and new applications for a.o. automotive and olie & gas sector

Sector Advanced Textiles & Composites

19


Indicative revenu split 2011Indicative revenu split 2012

Protective Fabrics

Armour Composites

Space / Aerospace Composites

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Market group TenCate Protective Fabrics


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• Strong growth revenu TenCate Defender™ M outside US • In the US TenCate Defender™ M succesfully has been

brought into other applications • Increase of revenu TenCate Tecasafe™ Plus (industrial

end-users) continued • Reticent firefighter market US

• Growth outside US; important reference projects have been realised

TenCate Protective Fabrics

21

Main developments per market group


Indicative revenu split US

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Market group TenCate Advanced Composites en TenCate Advanced Armour


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• Growth aerospace composites in US • Temporary slow-down in revenu Airbus A350 (Europe)

• Positive developments in aerospace armour Europe

• Armour market US reluctant

• Development composites materials and processes for automotive • Alliances with 3M and BASF • Strong qualifications • Acquisition PMC Baycomp: high speed UD tape production • Acquisition (January 2013) Amber Composites

TenCate Advanced Composites and TenCate Advanced Armour

23



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Revenu development and indicative revenu split composites

24

0

50

100

150

200

2010 2011 2012

Index revenu development TenCate Advanced Composites

• Relative increase in revenu structural composites because of strong growth and organical decrease armour revenu

2012

Armour composites Structural composites

2011

Armour composites Structural composites


PROTECTIVE FABRICS

Developments per sector Sector Geosynthetics & Grass

25 Annual results TenCate 2012 CORPORATE

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Course of events and indicative revenu split

• Revenu development of sector Geosynthetics & Grass determined by: • Reluctant geosynthetics market in the US in 2nd half of year (governement budgets) • Shrinkage synthetic turf market in South Europe

• Results developed positively (EBITA +20%) due to tight margin and cost management

Sector Geosynthetics & Grass

26

Indicative revenu split 2011Indicative revenu split 2012

Geosynthetics

Grass Upstream

Grass Downstream

2012 2011


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Market group TenCate Geosynthetics


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• Strong performance entire Geosynthetics group in the first half of the year

• Increase in revenu in Asia

TenCate Geosynthetics

28



2012

Geosynthetics Asia Geosynthetics Americas Geosynthetics Europe

2011

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Market group TenCate Grass


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• Synthetic turf market weak in South Europe

• Market share in end market grew through business partners • Revenu growth downstream activiteiten

• Strong qualitative positioning woven system solutions • Technical performance further improved

• Sustainable / fully recyclable

• Start hybrid systems (Xtragrass)

TenCate Grass

30



PROTECTIVE FABRICS

Developments per sector Sector Other

31 Annual results TenCate 2012 CORPORATE

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• TenCate Enbi: stable development • Revenu growth in Asia at leading OEM’s

• Re-orientation Xennia Technology • Revenu focus • Retardant commercialisation • Negative realisations (non-recurring item -€ 2.7 million) • Sales activities in textile market placed with TenCate (Ten Cate

Digital Textiles bv)

TenCate Enbi and Xennia Technology

32

Main developments per segment


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Outlook 2013 Action plans and market expectations


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Action plans

• Enlarging importance of marketing • Focus on the value proposition in key markets • Strengthening organisation

• Focus on successfull market niches with proven products • Acceleration of growth • Less fragmentation in product portfolio • Partnerships

• Further profit recovery Grass group • Further strengthening in end markets • Ongoing development weaving technology, market focus • System development

Outlook 2013


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Action plans (2)

• Focus remains on sustainable cost savings • Cost savings maintain strategic priority • No important recovery of (government related) markets to be expected

• Further market development in emerging geographical markets (BRIC countries)

• Further strengthening revenu growth in composite materials • Integration acquired companies • Market development in tooling market, automotive sector and applications in the oil

and gas extraction

• Start inkjet technology production at TenCate Protective Fabrics

Outlook 2013


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Market expectations based on TenCate business monitor

Market group 2013 Explanation market expectations

TenCate Protective Fabrics Defense

North America + / - EMEA + / -

Asia +

Decrease in revenu US for TenCate Defender™ portfolio is expected to remain limited (ongoing decrease number of US soldiers in Afghanistan); niew projects (US) and growth revenu in defense markets outside US increasingly offer compensation

TenCate Protective Fabrics Industrial


Asia +

US stable; no recovery expected on traditional EU markets; increasing revenu share from oil and gas industry. Growth in Asia continues (TenCate Tecasafe™ Plus portfolio)

TenCate Protective Fabrics Emergency response

North America + / - EMEA + Asia + / -

Emergency response in the US stable; growth revenu TenCate Defender™ M for police / safety tasks Appealing reference projects in EU firefighter market with a further increasing market share

TenCate Advanced Composites Aerospace / Space

North America ++ EMEA +

Ongoing growth aerospace composites; Airbus revenu increases Growing contribution of non-aerospace related revenu

TenCate Advanced Armour Armour composites


Market maintains a lasting shortage of larger projects Possible revenu TenCate ABDS™ active blast countermeasure system not included in business monitor

TenCate Geosynthetics N Am / S Am + EMEA + / -

Asia +

Amerikaanse market recovers in the course of the year. More focus on TenCate Geotube® systems (partnerships) Asian and South American market offer growth potency Europe stable

TenCate Grass North America + EMEA -

Asia + / -

No noticeable improvement of market conditions expected Increasing revenu share system products

Outlook 2013


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Outlook 2013

• Limited / no organic signals for growth in government related markets • Political and budgettary effect ‘fiscal cliff’ offers uncertainty regarding revenu development in US • EU governments too remain reticent regarding government spendings

• Market themes TenCate offer reason for optimism • Interest for coastal protection (after Super Storm Sandy) • Increasing attention for environmental problems Asia • Sustainability, safety and protection high on political agenda

• Focus on development of industrial markets (not bound to government budgets) • Accelerate market development through partnerships • Broadening of fields of application expected

• More than average growth is expected for TenCate Advanced Composites • Airbus revenu increases • Utilize market challenges in China (commercial aerospace) • Growth outside aerospace sector, partly through contributions of acquired companies (PMC

Baycomp and Amber Composites)

TenCate group


Protecting people

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Appendices


PROTECTIVE FABRICS

Developments in second half year

40

248.9 257.0

39.2

564.4

219.7

258.3

32.7

509.4

0

100

200

300

400

500

Advanced Textiles &

Composites


Other TOTAL

Revenu development 2nd half year

H2 2011

H2 2012

4.5

15.7

.0,5

19.7

29.1

12.4

4.9

46.4

-10

0

10

20

30

40

50

Advanced Textiles &

Composites


Other TOTAL

Revenu development 2nd half year

H2 2012

H2 2011

Revenu mutations Advanced Textiles & Composites

H1 H2

Mutation (%) -17 -12

Acq. / Desinv. (%) 4 2

Currency (%) 4 5

Organic (%) -25 -19

Revenu mutations Geosynthetics & Grass

H1 H2

Mutation (%) -2 -1


Currency (%) 4 5

Organic (%) -10 -6

EBITA mutations Advanced Textiles & Composites

H1 H2

Mutation (%) -54 -85


Currency (%) 2 2

Organic (%) -58 -87

EBITA mutations Geosynthetics & Grass

H1 H2

Mutation (%) 13 27


Currency (%) 9 7

Organic (%) 1 21


TenCate annual results 2012

Economy & Finance

Transcript of TenCate annual results 2012