ANNUAL FIGURES March 2007

Transcription

1 ANNUAL FIGURES March 2007

2 Contents presentation 1. Developments Alexander van der Lof, CEO 2. Notes to the results 2006 Jan Vaandrager, CFO 3. Strategy, Developments and Outlook Alexander van der Lof, CEO 1

3 Profile TKH Turnover 2006 (in ) 686 million Number of employees (FTEs) Number of companies 38 Basic technologies in the area of ICT and electrotechnics within the TKH subsidiaries are combined to total solutions Transformation Technical Trading group Cable group Machinery group Telecom Solutions Building Solutions Industrial Solutions 2

4 Highlights 2006 Turnover increases by 25.1% to million (2005: million) 17.4% organic growth 7.7% acquisitions Operating result rises 35.4% to 53.6 million (2005: 39.6 million) Net profit rises by 35.5% to 35.4 million (2005: 26.1 million before the extraordinary tax gain) 3

5 Highlights 2006 Solutions -strategy has positive effect on turnover growth and EBIT margin ROS from 7.2% to 7.8% (H1: 7.3%) Improvement Cable group ROS from 6.1% to 8.0% Innovations account for 29% of turnover new record Acquisitions on track Proposed dividend of: 2.10 Proposal for a 1 : 4 TKH-share split New targets for 2009: ROS 8-9% ROCE 18-20% 4

6 Highlights 2006 Acquisitions Technical Trading group USE System engineering (75%-stake) (2007) Technology evacuation and traffic systems Building Solutions Funea Broadband Services - Telecom Solutions Video- and transmision-systems for cable television (CATV) and FTTH-networks Schneider Intercom (85%-stake) - Building Solutions Engineering and delivery of integrated intercom- and security systems Cable group Schrade Kabel- und Elektrotechnik - Building and Industrial Solutions Manufacturing of complex cable systems Machinery group ART - Industrial Solutions Production of components used in car tyres 5

7 Highlights 2006 Telecom Solutions Outdoor Telecom Market Share in turnover 19.9% (2005: 22.8%) Copper Networks segment Declining investments in cable for copper networks Priority moved to upgrading networks Pilot projects ALL IP networks Increased level of investment in nodes networks Turnover declined slightly Optical Fibre Networks segment Volume world market optical fibre rises 26% Market growth Europe modest Stabilisation price level Market growth and improved conditions in China for high-grade optical fibre specification Mobile Networks segment Increased investments UMTS lead to growth turnover 6

8 Highlights 2006 Telecom Solutions Indoor Telecom Market Broadband Connections segment Market broadband connections is growing Upgrading bandwidth positive effect on demand for replacement and market growth Segment innovative plug and play home networkingconcepts proceeds successfully Dect telephony segment Market growth by new services and product renewal Market share is growing strong by TKH innovative solutions Active Network Solutions segment Scale of orders received for Ocilion-concept time-shifted TV over IP-networks still relatively limited - mainly pilots 7

9 Highlights 2006 Building Solutions Installation Cable and Installation Systems segment Share in turnover 29.7% (2005: 25.6%) Investments construction and installation sector leads to healthy growth Slight improvement margins in Dutch market Increased volume in Scandinavia and Germany due to development new portfolio Growing ship building and offshore-market positive influence Cable group Structured Cable Systems segment Improvement position by sourcing from own low cost production in China with high quality specifications Strong improvement positioning at OEM customers New plug and play -solutions aimed at enlarging installation efficiency 8

10 Highlights 2006 Building Solutions Active Systems and Peripherals segment Care market offers nice potential for growth Focus on growth elderly care market: Domotica, alarm and screen communication Increase number and dimension of pilots Introduction pilots costs time and asks for high investments Market for tunnel, multi-storey car park and flight information systems with professional communication solutions develops positively Growing interest for integrated solutions 9

11 Highlights 2006 Industrial Solutions Segment Specialty cable Growing market Share in turnover 50.4% (2005: 51.6%) Turnover increased by innovations in all segments: medical, automotive, machinery and robot industry Segment Control Technology Increased investment level industry shows positive effect High degree of innovation and expansion of portfolio leads to increase in turnover 10

12 Highlights 2006 Industrial Solutions Segment Tyre Building systems Positive trends industry continues High priority for efficiency investments Demand for quality tyres request for better machinery and lower operator dependency Innovative tyre concepts require new manufacturing equipment Outsourcing tyre building systems to specialised partners Order intake increased more than 30% Contribution engineering in 2006 considerable higher than normal 1st complete MTM-system delivered Various MTM-modules in order book 11

13 Notes to the results

14 Notes to the results 2006 in million % difference Turnover 1) Costs of raw materials Gross-margin % % Operating expenses Operating result % % Financial result Result before taxes Tax for current financial year 2) Net profit % % ) Turnover including change of finished product, work in progress and other operating income. 2) Excluding one off tax gain in 2005 of 7.5 million. 13

15 Notes to the results 2006 Fall gross margin to 38.6% (2005: 41.6%) Rise in prices of raw materials, particularly in the Cable group (copper) Higher gross margin for Technial Trading group More outsourcing leads to small decline gross margin Machinery group Change in product mix: higher share in turnover by Cable group, smaller share Machinery group Despite larger added value, improved ROS with 7.8% (2005: 7.2%) Cost control, operating expenses less increase than added value (+12.0% versus +16.1%) Tax burden: 29.3% (2005 excluding one off gain: 28.6%) Amongst others due to increase in the share of the profit realised in Germany 14

16 Notes to the results 2006 Turnover per group 1) Total growth % Organic growth % (amounts in million ) Technical Trading group % 5.3% Cable group % 33.7% Machinery group % 5.1% Mutual supplies Total % 17.4% 1) Turnover incl. change in inventories of finished product, work in progress and other operating income 15

17 Notes to the results 2006 Operating results per group (amounts in million ) 2006 ROS % 2005 ROS % Technical Trading group Cable group Machinery group Other Total

18 Geographic turnover distribution USA 5% Asia 9% other 1% Netherlands 38% USA 6% Asia 12% other 3% Netherlands 37% Europe (other) 47% Europe (other) 42%

19 Balance sheet in million Assets Fixed assets Inventories Receivables Cash and cash equivalents Total Liabilities Group equity Provisions Long-term debts Short-term debts Total

20 Notes to the balance sheet per Increase fixed assets mainly by acquisitions Working capital to 19.8% of total turnover (2005: 21.0%) due to: Increase inventories +15.5% and trading activities +11.0% growth turnover lagged behind Projects in progress increased more than proportional as a result of concurrence of larger orders by the Machinery group Strong growth short-term liabilities by financing working capital 19

21 Ratio s Net debt / EBITDA¹ Gearing (net debt / equity)¹ ICR (EBIT / Financial cost) Solvability ROS ROCE % % 7.8% 17.1% % % 7.2% 14.3% ¹ On the basis of average positions during the period under review 20

22 Cash flow statement in million Operating result Depreciation Result on divestments Changes provisions Changes working capital Cash flow from operations Interest received/paid Tax Cash flow from operations Cash flow from investments Cash flow from financing activities Changes in available funds Mutation cash and cash equivalents Cash and cash equivalents Debt credit institutions Liquidity ultimo 31 December

23 Strategy, Developments and Outlook 22

24 Developments medium period Focus: Increase geographical overlap activities of 45% 60%: copying success formulas Expand portfolio with innovative solutions in defined increase segments Introduction solution in early stage life cycle Specific acquisitions mainly in the field of technical trade: Telecom and Building Solutions and technology Increase consistency solutions activities Continue with implementation niche strategy Cable group 23

25 Financial targets TKH New formulated targets Targets Realisation ROS 8-9% 7.8% ROCE 18-20% 17.1% Solvability > 35% 46.4% Given the strong focus on growth, the ROS and ROCE could come out at the lower end of these bandwidths. 24

26 Outlook Technical Trading group Improved market conditions building and installation sector positive effect growth Growth telecom sector still uncertain Cable group Improved market conditions Growth in niche market activities are proceeding well Potential for further improvement in margins will be limited Machinery group Increase order intake 2006 positive for turnover and result in 2007 The extent to which profit increases depends on the Learning curve -effect of the newly introduced solutions and efficiency-improvements In light of the developments outlined above, the TKH Group is confident of growth of turnover and results. 25

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