Protecting people CORPORATE. Rabobank Made in Benelux Investor Conference 2013

Transcription

1 Protecting people Rabobank Made in Benelux Investor Conference 2013 Mr F. Spaan, Corporate Director Business Development Mr P. Zwinkels, Investor Relations Manager London, Thursday 27 June 2013

2 Protecting People Royal Ten Cate 2

3 Advanced materials through textile technologies Royal Ten Cate 3

4 Core activities Protecting people 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 4

5 Vision Two market trends: safety & sustainability Increased emphasis on safety and protection (risk environment) and the attitude to increasingly prevent disasters will generate increased demand for protective materials Much higher emphasis on sustainability will create demand for new materials (light weight, reduced CO2, recycled materials, organic materials etc.) 5

6 Mission Protecting people in habitats, in transit, at work and during leisure 6

7 Core activities Royal Ten Cate Technologies Products Markets Weaving technology and Finish & coating technology Specialistic fabrics Composites Defence and special forces Industrial and emergency response Outdoor Space and aerospace Automotive Armour Extrusion technology with Textile technologies Geotextiles Synthetic turf Infrastructure Environment and water management Sports and landscaping 7

8 Market focus Value chain management Mass customization On demand delivery Flexibel low cost processing TenCate Customized product portfolio 8

9 Strategic themes Royal Ten Cate Sustainable business policy aimed at strive for continuity R&D and business development policy aimed at transition of products to system solutions Commercial policy aimed at partnerships and alliances Supporting and complementary technologies Factory of the Future 9

10 Financial profile REVENUES ,049 million (-8%) REVENUE SPLIT NET PROFIT million (2011: 58.7 million) Normalised net profit 2012: 27.6 million DIVIDEND PER SHARE 2012: 0.50 per share (dividend by choice) Advanced Textiles & Composites Geosynthetics & Grass Other 49% 7% 44% SHAREHOLDERS Delta Deelnemingen Fonds NV 10.2% Kempen Oranje Participaties 6.3% Delta Lloyd NV 5,7% Allianz Global Investors 5,1% EBITA 2012: 52.0 m (2011: m) EBITA before non-recurring items 2012: 60 m Sector Advanced Textiles & Composites 23.5 million (2011: 70.3 million) Sector Geosynthetics & Grass 31.5 million (2011: 26.3 million) Sector Other -3.0 million (2011: 5.9 million) By destination By origin Employees 10

11 Royal Ten Cate Revenue and EBITA development 1200 Revenues ( m) EBITA ( m) 1H 2H 11

12 0,60 0,50 0,85 0,75 0, ,97 0,86 2,18 1,84 2,31 Royal Ten Cate Earnings and Dividend per share development 2,50 EPS ( ) 2,00 1,50 1,00 0,50 0,00 1,00 0,90 0,80 0,70 0,60 0,50 0,40 0,30 0,20 0,10 0,00 Dividend per share( ) 12

13 Trading Update 1 st quarter 2013 TenCate Defender M -revenue shows strong growth Revenue drop Royal Ten Cate nv: 6% to million EBITA: 12.5 million (-5%) Net profit: 4.6 million (-10%) Operating cash flow: 13 million (+30%) Debt position versus ultimo 2012 decreased by 6 million excluding acquisitions 13

14 Developments per sector Sector Advanced Textiles & Composites PROTECTIVE FABRICS 14

15 Advanced Textiles & Composites Sector Advanced Textiles & Composites 600 Revenues ( m) Protective fabrics 500 Army and special (police) forces 400 Industry and emergency response 300 Outdoor 200 Aerospace and space composites 100 Commercial aircraft, military aircraft, satellites 0 Radomes Armour composites Vehicles, airplanes Personal protection Industrial composites Automotive, energy etc Parts & Components 10 0 EBITA ( m) 1H 2H 15

16 Course of events and indicative revenue split Sector Advanced Textiles & Composites Revenues in 2012 decreased in particular because of less US defense orders (TenCate Defender M and Advanced Armour) Defense revenues US (TenCate Defender M and armour composites) decreased with approx. US$ 130 million Revenues from US Defense were around 100m In 1Q13, TenCate Defender M revenues showed strong growth but is expected to remain volatile Revenues in composites keep growing Increase in revenues of space / aerospace composites, especially in the US Acquisition PMC Baycomp and Amber and new applications for a.o. automotive and oil & gas sector In 1Q13, the EBITA of the Advanced Textiles & Composites sector decreased compared to 1Q12 Indicative revenue split 2012 Indicative revenue split 2011 Protective Fabrics Armour Composites Space / Aerospace Composites 16

17 TenCate Protective Fabrics Market group 17

18 Main developments per market group TenCate Protective Fabrics Strong growth revenues TenCate Defender M outside US; sold to 10 non-us armies TenCate Defender has been brought into other applications in the US Increase of revenues TenCate Tecasafe Plus (industrial end-users) continued Reticent firefighter market US Growth outside US; important reference projects have been realised Indicative revenue split US

19 TenCate Advanced Composites en TenCate Advanced Armour Market group 19

20 Main developments per market group TenCate Advanced Composites and TenCate Advanced Armour Growth aerospace composites Temporary delay in revenue ramp up Airbus A350 (Europe) High sales potention Airbus A350 remains (50%+ composites aircraft) Armour market reluctant, but market potential improves Development composites materials and processes for automotive Alliances with 3M, Owens Corning and BASF Acquisition PMC Baycomp: high speed UD tape production Acquisition (January 2013) Amber Composites First projects started 20

21 Revenue development and indicative revenue split composites Advanced Composites revenues grew by 50% in the last two years Relative increase in revenues structural composites because of strong growth and organic decrease armour revenues Index revenue development TenCate Advanced Composites Armour composites Structural composites Armour composites Structural composites 21

22 End-user innovation Automotive projects Structural composites parts Defense projects Survivability solutions 22

23 Development survivability solutions TenCate ABDS active blast countermeasure system 23

24 Developments per sector Sector Geosynthetics & Grass PROTECTIVE FABRICS 24

25 Geosynthetics & Grass Sector Geosynthetics & Grass Revenues ( m) Geosynthetics Infrastructure, agribusiness Environmental and water management Sport and leisure Synthetic turf Sports Infrastructure and landscaping Recurring EBITA ( m) 1H 2H 25

26 Course of events and indicative revenues split Sector Geosynthetics & Grass Revenue development of sector Geosynthetics & Grass determined by: Reluctant geosynthetics market due to persistant winter Shrinkage synthetic turf market in South Europe Strong growth special grass fibers In 1Q13, the EBITA of the Geosynthetics & Grass sector increased substantially due to tight margin and cost management Indicative revenu split 2012 Indicative revenu split Geosynthetics Grass Upstream Grass Downstream

27 TenCate Geosynthetics Market group 27

28 Main developments per market group TenCate Geosynthetics Slow start of the year 2013 due to persistent winter weather in Europe and the US Increase in revenues in Asia Geosynthetics Asia Geosynthetics Americas Geosynthetics Europe 28

29 TenCate Grass Market group 29

30 Main developments per market group TenCate Grass Synthetic turf market remains weak in South Europe Market share in end market grew through business partners Strong qualitative positioning woven system solutions Technical performance further improved Sustainable / fully recyclable Start hybrid systems (Xtragrass) In 1Q13, demand for special (engineered) grass fibers and 3D-woven pitches grew strongly Cost measures making positive contribution Revenues 2012 Americas EMEA Asia Pacific 30

31 Developments per sector Sector Other PROTECTIVE FABRICS 31

32 Main developments per segment TenCate Enbi and Xennia Technology TenCate Enbi: stable development Revenue growth in Asia at leading OEM s Re-orientation Xennia Technology Revenue focus Retardant commercialisation Start inkjet technology production at TenCate Protective Fabrics in 2Q13 32

33 Outlook 2013 Market expectations 33

34 Outlook 2013 TenCate group 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 revenues expected to increase later in the year Utilize market challenges in China (commercial aerospace) Growth outside aerospace sector, partly through contributions of acquired companies (PMC Baycomp and Amber Composites) 34

35 Market expectations based on TenCate business monitor Outlook 2013 Market group 2013 Explanation market expectations TenCate Protective Fabrics Defense TenCate Protective Fabrics Industrial TenCate Protective Fabrics Emergency response TenCate Advanced Composites Aerospace / Space TenCate Advanced Armour Armour composites North America + / - EMEA + / - Asia + North America + / - EMEA + / - Asia + North America + / - EMEA + Asia + / - North America ++ EMEA + North America + / - EMEA + / - Decrease in revenues US for TenCate Defender portfolio is expected to remain limited (ongoing decrease number of US soldiers in Afghanistan); new projects (US) and growth revenues in defense markets outside US increasingly offer compensation US stable; no recovery expected on traditional EU markets; increasing revenue share from oil and gas industry. Growth in Asia continues (TenCate Tecasafe Plus portfolio) Emergency response in the US stable; growth revenue TenCate Defender M for police / safety tasks Appealing reference projects in EU firefighter market with a further increasing market share Ongoing growth aerospace composites; Airbus revenue increases later in the year Growing contribution of non-aerospace related revenu Market maintains a lasting shortage of larger projects Possible revenue TenCate ABDS active blast countermeasure system not included in business monitor TenCate Geosynthetics N Am / S Am + EMEA + / - Asia + TenCate Grass North America + EMEA - Asia + / - US market recovers in the course of the year. More focus on TenCate Geotube systems (partnerships) Asian and South American market offer growth potential Europe stable No noticeable improvement of market conditions expected Increasing revenue share system products 35

36 Protecting people