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TCL Annual Report 2016

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TCL Annual Report 2016 ANNUAL REPORT 2016 BUILDING A STRONGER REGION TCL GROUP – ANNUAL REPORT 2016 OUR STRATEGIC FRAMEWORK Our Strategic Framework Vision Building a Brighter Future Create sustainable value by providing industry-leading construction products and Mission solutions to satisfy the needs of our customers in the Caribbean Strategic Priorities Health, Safety & Customer Operational One Sustainable Environment Centricity Efficiencies TCL Returns We leverage on our group’s expertise and footprint to establish best practices Business and common processes, in order to operate with agility and effectiveness to Model ultimately create value to all of our stakeholders Values Safety Customers Excellence Leadership Integrity Corporate Information 2 CONTENTS Corporate Social Responsibility 5 10-year Consolidated Financial Review 6 Share & Performance Highlights 8 Board of Directors 11 Corporate Governance 16 Group Chairman’s Review 19 Group Executive Committee 23 Managing Director’s Report & Management Discussion 2016 28 Directors’ Report 39 TCL Group Business Units - Principal Officers 41 Independent Auditor’s Report 51 Consolidated Statement of Financial Position 59 Consolidated Statement of Income 60 Consolidated Statement of Comprehensive Income 61 Consolidated Statement of Changes In Equity 62 Consolidated Statement of Cash Flows 63 Notes to the Consolidated Financial Statements 64 Design and Layout: Paria Publishing Co. Ltd. Main Photographers: Michael Bonaparte, Peter Lim Choy. Printing: Scrip J 1 TCL GROUP – ANNUAL REPORT 2016 CORPORATE INFORMATION Board of Directors of Trinidad Cement Bankers Limited (Foreign) Mr. Wilfred Espinet (Chairman) CITIBANK N.A. Mr. Francisco Aguilera Mendoza 111 Wall Street (Deputy Chairman) New York, NY 10043 Mr. José Luis Seijo González U.S.A. (Managing Director) Mr. Alejandro Alberto Ramirez Cantu Auditors Mr. Arun K. Goyal Ernst & Young Mr. Ruben McSween 5/7 Sweet Briar Road Mr. Bryan Ramsumair St. Clair Mr. Jean Michel Allard Trinidad & Tobago, W.I. Mr. Nigel Edwards Ms. Alison Lewis Registrar & Transfer Agent Company Secretary Trinidad and Tobago Central Depository Limited Ms. Kathryna Baptiste 10th Floor, Nicholas Tower 63-65 Independence Square Managing Director - TCL Group Port of Spain Mr. José Luis Seijo González Trinidad and Tobago, W.I. Registered Office Stock Exchange on which the Company Southern Main Road is listed: Claxton Bay Trinidad & Tobago Stock Exchange Trinidad & Tobago, W.I. 10th Floor, Nicholas Tower Phone: (868) 225-8254 63-65 Independence Square Fax: (868) 659-0818 Port of Spain Website: www.tclgroup.com Trinidad & Tobago, W.I. Bankers Attorneys-At-Law Girwar & Deonarine (Local) Harris Court, 17-19 Court Street Republic Bank Limited San Fernando High Street, San Fernando Trinidad, W.I. Trinidad & Tobago, W.I. M.G. Daly & Partners First Citizens Bank 115A Abercromby Street 38 Southern Main Road Port of Spain Marabella Trinidad, W.I. Trinidad & Tobago, W.I. 2 Johnson, Camacho & Singh Derek Ali First Floor, Briar Place 36 Gordon Street, 10 Sweet Briar Road Port-of-Spain St. Clair Trinidad, W.I. Port of Spain Trinidad, W.I. Hylton Powell 11A Oxford Road M. Hamel Smith & Co. Kingston 5, Eleven Albion Jamaica, W.I. Corner Dere & Albion Streets Port of Spain Clarke, Gittens, Farmer Trinidad, W.I. Parker House, Wildey Business Park Wildey Road Pollonais, Blanc, De La Bastide & Jacelon St. Michael 17-19 Pembroke Street Barbados, W.I. Port of Spain Trinidad, W.I. Hughes, Fields & Stoby 62 Hadfield & Cross Streets Ravi Hefffes-Doon Werk-en-rust Upper Floor, Abercromby Court Georgetown 84 Abercromby Street Guyana, South America Port of Spain Trinidad, W.I. Patterson Mair Hamilton 63-67 Knutsford Boulevard Alvin Fitzpatrick, S.C. Kingston 5 84 Abercromby Street Jamaica, W.I. Port of Spain Trinidad, W.I. Caribbean Juris Chambers Hannah Waverhouse Jason K. Mootoo P.O. Box 801 77 Abercromby Street The Valley Port of Spain Anguilla Trinidad, W.I. Kelsick, Wilkin & Ferdinand Gitanjali Gopeesingh P.O. Box 174 Chancery Chambers Fred Kelsick Building 108 Duke Street Independence Square South Port of Spain Basseterre Trinidad, W.I. St. Kitts, W.I. 3 A TPL, TPM & TCL EMPLOYEES PAINT RESIDENT’S HOME! Dur 3r an th wks ar pls r aka Limited (TPL Posa Manuactur imited (TPM and rad Cem Limited (TCL ame CSR AT THE TCL GROUPtogethr r s ed w a Ba snt, Ara Morrs jus tim r Easr! volurs ainted r w home, w was ARAWAK CEMENT INITIATES SCHOOL PARTNERSHIP r built, aks t rous a cemen r WITH DONATION OF 25 COMPUTERS rr s s rrs lived a sall, dadated w home. Arawak Cement Company launched a multi-faceted,long term partnership with Darryl Jordan Secondary School witha donation of 25 computers. In making the presentation of the computers and announcing Arawak’s partnership with the neighbouring school, the General Manager, Manuel Toro, revealed that the company will be taking a keen interest in the long-term development of the students. He disclosed that part of this investment in their future would be Caribbean Vocational Qualification (CVQ) training at the Arawak Cement plant. This programme will give the students hands-on experience at the plant to boost their competency levels for scholastic assessment and certification. The General Manager also disclosed that another facet of the partnership would be the replacement of steel pans for the Darryl4 Jordan Secondary Steel Orchestra. Photographed from left: Mr. Stephen Jackman, Principal of the Darryl Jordan Secondary School; Mr. Manuel Toro, General Manager, Arawak Cement; Mr. Denis Kellman, Member of Parliament for St. Lucy; Ms. Wilma Gibson, Senior Executive Officer, Arawak Cement; Ms. Shanice Woodley, School Prefect; Mr. Stephen Whittaker, Head Boy; Mr. Erwin Jones, Marketing Officer, Arawak Cement and Mr. Ken Layne, Deputy Principal. TCL GROUP – ANNUAL REPORT 2016 CORPORATE SOCIAL RESPONSIBILITY Our strong commitment to social responsibility under the core pillars of youth and education, shelter and the environment creates sustainable support for organisations that make the Caribbean region a better place to live. From all our locations in the region, we strive to get involved in the communities where we operate, to Build a Stronger Region! We respond to requests from community organisations, such as this contribution of equipment to a children’s ward. Volunteers from our companies assist needy people in the community with manpower to create a better living environment. We partner with NGOs and schools to undertake youth programmes and activities with children in our communities. We support youth development. 5 TCL GROUP – ANNUAL REPORT 2016 10-YEAR CONSOLIDATED FINANCIAL REVIEW UOM 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Group Third Party Revenue TT$m 1,923.00 2,074.40 1,755.80 1,561.10 1,560.86 1,615.89 1,941.05 2,104.81 2,115.45 1,887.01 Operating Profit TT$m 349.40 307.20 248.10 (1.20) 62.53 (0.76) 271.56 111.08 446.31 224.43 Group Profit before Taxation TT$m 245.70 195.90 84.00 (149.60) (162.05) (351.74) 33.79 (102.47) 487.49 89.63 Group Profit attributable to Shareholders TT$m 187.80 137.40 95.80 (48.50) (167.17) (292.91) 58.20 (214.39) 405.11 36.86 Foreign Exchange TT Earnings $m 292.30 362.40 327.70 239.30 271.90 279.60 352.00 309.9 298.40 245.70 EPS TT$ 0.77 0.56 0.39 (0.20) (0.68) (1.19) 0.24 (0.87) 1.19 0.10 Ordinary Dividend per Share TT$ 0.07 - - - - - - - - 0.04 Issued Share Capital – TT Ordinary $m 466.20 466.20 466.20 466.20 466.20 466.20 466.20 466.20 827.73 827.73 Shareholders’ Equity TT$m 1,313.70 1,372.20 1,459.70 1,424.90 781.99 485.72 561.53 276.98 963.29 1,017.13 Group Equity TT$m 1,442.30 1,504.30 1,579.30 1,517.30 810.26 461.07 536.30 245.53 950.97 1,016.91 TT Total Assets $m 3,621.60 3,994.70 4,034.40 4,120.90 3,506.48 3,452.76 3,399.14 3,010.00 3,033.08 2,922.30 Net Assets per Share TT$ 5.77 6.02 6.32 6.07 3.24 1.85 2.15 0.98 2.54 2.71 Return on Shareholders’ Equity % 14.30 10.00 6.60 (3.40) (21.38) (60.30) 10.36 (77.40) 42.05 3.62 Share Price (Dec 31) TT$ 7.35 4.00 3.85 2.80 1.79 1.49 2.20 2.50 3.99 4.40 No. of Shares Outstanding (Dec 31) ‘000 249,765 249,765 249,765 249,765 249,765 249,765 249,765 249,765 374,647.7 374,647.7 Market Capitalisation (Dec 31) TT$m 1,835.80 999.10 961.60 699.30 447.08 372.15 549.48 624.41 1,494.84 1,648.45 Total Long Term Debt TT$m 1,395.60 1,444.80 1,359.00 1,242.90 1,678.40 2,046.12 1,951.80 1,848.90 1,166.06 968.50 Total Long Term Debt/Equity Ratio % 96.80 96.00 86.10 81.90 207.14 443.78 363.94 753.03 122.62 95.24 6 Group Third Party Revenue 1,616 1,91 2,105 2,115 1,887 TTm 2012 2013 2014 2015 2016 Group Total Assets 3,53 3,399 3,010 3,033 2,922 TTm 2012 2013 2014 2015 2016 Group Earnings per Share 1.19 (1.19) 0.2 (0.87) 0.10 TT 2012 2013 2014 2015 2016 Group Profit Attributable to Shareholders 05.11 (292.91) 58.20 (21.39) 36.86 TTm 2012 2013 2014 2015 2016 7 TCL GROUP – ANNUAL REPORT 2016 SHARE & PERFORMANCE HIGHLIGHTS January-June 2016 TTSE - www.stockex.co.tt Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Volume - TCL 000 8,861 771,579 189,990 10,777,512 120,329 62,646 Volume - RML 000 - - 1 100 134 - BSE - www.bse.com.bb Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Volume - TCL - 1,100 - - 1,222 - JSE - www.jamstockex.com Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Volume - TCL - - - - - - Volume - CCCL 7,139,030 1,804,510 1,650,635 9,905,211 1,775,161 1,139,868 July-December 2016 TTSE - www.stockex.co.tt Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 TOTAL Volume - TCL 000 582,266 344,163 902,023 342,824 25,978 832,973 14,961,144 Volume - RML 000 225 260 - - - 7,999 8,719 BSE - www.bse.com.bb
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