Annual Report 2011
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COMPANY PROFILE TESSENDERLO GROUP IS A WORLDWIDE SPECIALTY COMPANY THAT PROVIDES SOLUTIONS FOR GLOBAL NEEDS IN FOOD, AGRICULTURE AND WATER MANAGEMENT AND EFFICIENT (RE)USE OF NATURAL RESOURCES. THE GROUP IS A LEADER IN MOST OF ITS MARKETS, PRIMARILY SERVING CUSTOMERS IN AGRICULTURE, INDUSTRY, CONSTRUCTION, HEALTH AND CONSUMER GOODS END MARKETS. Global mega-trends like a of clean water, improve crop The group reports its growing population and a yields and reduce use of natural activities as follows: continued increase of wealth resources. and consumption lead to a rising • Tessenderlo Kerley demand for food and clean With an enhanced focus on • Inorganics water, while natural resources are innovation, aligned with global • Gelatin and Akiolis getting scarcer and risk becoming mega-trends, the group will build • Plastic Pipe Systems and depleted. Tessenderlo Group on sustainability as an engine for Profiles focuses on those businesses that future growth and development. • Other Businesses (Compounds, provide solutions for these mega- The new Tessenderlo Group Organic Chlorine Derivatives, challenges. The company is an will have a more diversified Pharma, Water Treatment) expert in innovative processing geographic exposure, will be of by-products from different increasingly service oriented and industries into valuable new have an improved growth and products, especially those that return profile. contribute to a better availability TRANSFORMING, BECAUSE… Annual report 2011 COMPANY PROFILE TESSENDERLO GROUP IS A WORLDWIDE SPECIALTY COMPANY THAT PROVIDES SOLUTIONS FOR GLOBAL NEEDS IN FOOD, AGRICULTURE AND WATER MANAGEMENT AND EFFICIENT (RE)USE OF NATURAL RESOURCES. THE GROUP IS A LEADER IN MOST OF ITS MARKETS, PRIMARILY SERVING CUSTOMERS IN AGRICULTURE, INDUSTRY, CONSTRUCTION, HEALTH AND CONSUMER GOODS END MARKETS. Global mega-trends like a of clean water, improve crop The group reports its growing population and a yields and reduce use of natural activities as follows: continued increase of wealth resources. and consumption lead to a rising • Tessenderlo Kerley demand for food and clean With an enhanced focus on • Inorganics water, while natural resources are innovation, aligned with global • Gelatin and Akiolis getting scarcer and risk becoming mega-trends, the group will build • Plastic Pipe Systems and depleted. Tessenderlo Group on sustainability as an engine for Profiles focuses on those businesses that future growth and development. • Other Businesses (Compounds, provide solutions for these mega- The new Tessenderlo Group Organic Chlorine Derivatives, challenges. The company is an will have a more diversified Pharma, Water Treatment) expert in innovative processing geographic exposure, will be of by-products from different increasingly service oriented and industries into valuable new have an improved growth and products, especially those that return profile. contribute to a better availability TRANSFORMING, BECAUSE… Annual report 2011 TESSENDERLO GROUP KEY FIGURES IFRS OVER (Million EUR) 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 Revenue 2,126.0 2,024.0 2,093.8 2,765.0 2,405.9 2,238.3 2,149.6 2,062.9 1,972.0 1,934.0 REBITDA 187.0 162.8 63.4 344.7 261.6 188.4 191.8 220.8 204.0 259.0 10 YEARS REBIT 104.9 73.0 - 51.4 239.1 152.3 72.3 67.4 106.2 82.0 115.0 Non-recurring income/(expense) items 1.0 3.0 - 99.8 - 26.9 35.1 - 76.9 - 8.2 - 25.0 EBIT 105.9 76.0 - 151.2 212.2 187.4 - 4.6 59.2 81.2 Profi t (+) / loss (-) for the period 57.9 33.0 - 166.7 140.4 128.7 - 24.3 35.1 53.6 43.0 71.0 Net cash fl ow 135.6 83.0 45.9 280.1 248.1 142.8 161.0 195.6 162.0 207.0 Profi t (+) / loss (-)/Revenue (%) 2.7 1.6 -8.0 5.1 5.3 -1.1 1.6 2.6 2.2 3.7 REBIT/Revenue (%) 4.9 3.6 -2.5 8.6 6.3 3.2 3.1 5.1 4.2 5.9 Net cash fl ow/Revenue (%) 6.4 4.1 2.2 10.1 10.3 6.4 7.5 9.5 8.2 10.7 Capital Employed (CE) 894.3 976.5 1,099.4 1,282.7 1,118.9 1,181.3 1,258.0 1,166.0 1,136.0 1,141.0 Working Capital 262.4 179.6 283.7 552.5 367.0 392.7 447.0 413.2 425.0 436.0 ROCE (%) 11.7 6.0 -4.7 18.6 13.6 6.1 5.4 9.1 7.2 10.1 Capital expenditure (PP&E) 102.4 117.1 112.4 94.2 98.6 119.3 172.5 171.1 119.0 110.0 Equity attributable to equity shareholders of the company 600.3 724.8 705.2 900.0 800.2 709.5 774.3 755.5 756.0 758.0 Return On Equity (ROE) (%) 8.7 2.8 - 20.8 16.5 17.0 - 3.3 4.6 7.2 5.7 9.5 Net fi nancial liabilities 219.4 162.0 209.0 294.6 243.8 411.0 428.9 351.4 339.0 303.0 Revenue Net fi nancial liabilities/Equity (%) 36.5 22.3 29.6 32.7 30.4 57.8 55.4 46.5 44.8 40.0 Net fi nancial liabilities/REBITDA 1.2 0.9 3.3 0.9 0.9 2.2 2.2 1.6 1.7 1.2 (Million EUR) Interest coverage 6.4 2.8 - 17.3 14.3 10.9 0.5 3.9 5.2 5.0 8.0 IFRS 3,000 Dividend paid 39.4 38.3 37.1 36.9 35.0 33.3 32.7 32.7 30.7 30.6 2,500 2,126 Payout ratio (%) 68.0 188.7 N/A 26.3 27.2 N/A 94.4 58.0 71.5 43.1 2,000 1,500 Headcount 7,457 8,262 8,317 8,237 8,121 8,124 8,123 8,181 8,223 7,934 1,000 500 A financial glossary is available at the end of the report 0 Figures from continuing operations for 2010-2011 02 03 04 05 06 07 08 09 10 11 Equity attributable to equity REBITDA ROCE shareholders of the company Return on equity (Million EUR) (%) (Million EUR) (%) IFRS IFRS IFRS IFRS 350 20 1,000 20 15 300 15 800 10 8.7 11.7 250 600.3 5 187 10 200 600 0 -5 150 5 400 -10 100 0 200 -15 50 -20 0 -5 0 -25 02 03 04 05 06 07 08 09 10 11 02 03 04 05 06 07 08 09 10 11 02 03 04 05 06 07 08 09 10 11 02 03 04 05 06 07 08 09 10 11 Profi t (+) / loss (-) Working capital / revenue Net fi nancial liabilities / equity Capital expenditure (PP&E) attributable to equity holders of the company (%) (%) (Million EUR) (Million EUR) IFRS IFRS IFRS 150 IFRS 25 60 200 100 50 58 20 150 50 40 36.5 15 102.4 0 12.3 30 100 -50 10 20 -100 50 5 -150 10 -200 0 0 0 02 03 04 05 06 07 08 09 10 11 02 03 04 05 06 07 08 09 10 11 02 03 04 05 06 07 08 09 10 11 02 03 04 05 06 07 08 09 10 11 p2 Tessenderlo Group Annual report 2011 TABLE OF CONTENTS MESSAGE TO STAKEHOLDERS 5 STRATEGY 9 ACTIVITY REPORT 19 TESSENDERLO KERLEY 20 INORGANICS 26 GELATIN AND AKIOLIS 32 PLASTIC PIPE SYSTEMS AND PROFILES 40 OTHER BUSINESSES 48 MANAGEMENT REPORT 55 Business progress 56 Analysis of the main risks 58 Health, safety, environment and quality 62 Human resources 64 Innovation, research and development 66 Corporate governance statement 68 FINANCIAL REPORT 93 Consolidated fi nancial statements 94 Auditor’s report 176 Statutory fi nancial report 178 ADDITIONAL INFORMATION 181 Information for shareholders 182 Markets and applications 186 Financial glossary 188 HIGHLIGHTS OF 2011 February April June 1 29 14 TESSENDERLO GROUP TESSENDERLO GROUP TESSENDERLO GROUP SELLS ITS SUBSIDIARY SUCCESSFULLY AMENDS TAKES A MAJOR STEP IN TESSENDERLO FINE AND EXTENDS ITS ITS TRANSFORMATION CHEMICALS LTD. (UK) TO SYNDICATED CREDIT INTO A SPECIALTY GROUP, TENNANTS CONSOLIDATED FACILITIES OF FEBRUARY BY SIGNING A SALE AND LTD. 2010, WITH SIGNIFICANT PURCHASE AGREEMENT OVERSUBSCRIPTION. WITH KERLING FOR THE GROUP’S PVC ACTIVITIES, THESE AMENDED INCLUDING VCM, CHLOR- March FACILITIES ARE FOR AN ALKALI AND PART OF AGGREGATE AMOUNT OF ORGANIC CHLORINE 16 450 MILLION EUR, WITH A DERIVATIVES. TESSENDERLO KERLEY INC. MATURITY OF 5 YEARS. (US) AND GARY WILLIAMS ENERGY CORPORATION ENTER INTO A LONG TERM July AGREEMENT TO EXPAND May THE SULFUR PROCESSING 18 CAPABILITY AT THE 12 TESSENDERLO GROUP WYNNEWOOD REFINERY TESSENDERLO KERLEY ANNOUNCES THAT, (OKLAHOMA), AS WELL INC. ANNOUNCES THAT RELATED TO THE AS TKI’S SULFUR-BASED IT WILL FURTHER EXPAND COMPANY’S OFFER TO FERTILIZER CAPACITY. ITS FACILITY LOCATED PAY THE 2010 DIVIDEND AT BURLEY, IDAHO, IN SHARES AND/OR IN WITH AN ADJACENT ATS CASH, 63% OF COUPONS MANUFACTURING PLANT. WERE TENDERED FOR NEW SHARES. 722,809 NEW ORDINARY SHARES WERE ISSUED AS PER JULY 18, 2011. p2 Tessenderlo Group Annual report 2011 2 July September September 25 9 28 TESSENDERLO GROUP TESSENDERLO GROUP TESSENDERLO GROUP SELLS ITS SUBSIDIARY AGREES TO ACQUIRE THE SELLS DYNAPLAST-EXTRUCO CHELSEA BUILDING BT BAUTECHNIK GROUP. INC. (CANADA) TO A PRODUCTS INC. (US) TO BT MANUFACTURES AND PRIVATE INVESTOR. GRAHAM PARTNERS, SUPPLIES FITTINGS FOR A A PRIVATELY HELD BROAD CUSTOMER BASE INVESTMENT COMPANY.