HOLLAND COLOURS PRESS RELEASE FINANCIAL RESULTS 2014/2015
(this is a translation of the Dutch press release issued by the company on the same date)
HIGHER SALES - STABLE NET RESULT
Key Figures (€ million) | 14/15 | 14/15 13/14 At exchange rates 13/14 |
Sales Operating profit Net result | 68.2 5.3 3.4 | 66.3 66.0 5.1 5.4 3.3 3.5 |
The stronger US dollar has had a positive effect on the sales and results of Holland Colours in the second half of the year. The above table shows the sales, operating result and net result over 2014/2015, also at prior year exchange rates to ease the comparability with 2013/2014.
After a difficult beginning of the year whereby sales in the first quarter were 9% lower compared to the previous year, especially the third quarter was significantly better (+16%). As a consequence, the company was able to record a 3.5% increase in sales for the whole year. In Europe, sales was up 0.8% and sales in Americas was up by 0.5% (as measured in US dollar). Sales in Asia (also as measured In US dollar)
decreased by 1% as the weak beginning of the year, as well as lower sales of trade products could not be completely offset.
Excluding currency impact, 4% growth was recorded in the Building & Construction market and 3% growth in the Packaging market. All three divisions contributed to the growth in the Building & Construction market, whereas the growth in Packaging was mainly realized in Europe. Sales in Silicones & Elastomers stayed somewhat behind this year (-1%) mainly driven by customer-specific developments. The decrease in Specialities (-7%) mainly reflects lower trade products sales in Asia.
Margins improved slightly and the margin as a percentage of sales remained practically unchanged.
Operating expenses rose by € 1.5 million, of which € 0.7 million relates to the higher exchange rate of the US dollar. About half of the remaining increase is due to higher personnel costs. Although the number of employees decreased by one FTE, the distribution over the various countries changed and the average staffing was slightly higher than last year.
The resulting operating profit decreased to € 5.3 million from € 5.4 million in 2013/2014. Net finance costs remained practically equal to the previous year (€ 0.2 million) while taxes (€ 1.6 million) also ended
at the same level. The effective tax burden was 31.9%, a slight increase compared to 31.4% in 2013/2014. The net result ended at € 3.4 million compared to € 3.5 million in 2013/2014.
Investments (including capitalized own R&D hours) came in at € 1.3 million compared to € 2.4 million in the previous financial year, which was then influenced by the construction of the Holcomer production line in Indonesia. The net cash flow before currency impact was at € 2.4 million equal to 2013/2014. The company continued to meet all ratio's as agreed with the bank. The Total Debt/EBITDA ratio improved further to 0.5 (versus 0.6 at the end of March 2014) and the solvency of the company was 66.1% per the
end of March 2015 versus 64.5% per the end of March 2014.
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The net result per share amounted to €4.02 compared to €4.12 last year. The dividend proposal, which
th
will be submitted to the General Meeting of Shareholders on July 9
share (compared to € 2.12 in 2013/2014).
OUTLOOK FOR 2015/2016
, 2015, amounts to € 2.00 in cash per
As the past year has shown, exchange-rate fluctuations can have a large impact on the operating result. Both directly, because Holland Colours is active worldwide, as well as indirectly due to the effect that exchange rates have on the economic activity in general. The economic climate has not been supportive in recent years and remains uncertain in the coming year.
The development of new products and the search for new applications and markets for the products of
Holland Colours will continue. Efforts aimed at increasing operational efficiency will also be continued.
The constant focus on growth will demand further investments in people and capital. The extra cash as needed is expected to be covered from internal funding.
Due to the uncertain economic conditions and to the fact that the markets in which Holland Colours operates are sensitive to economic cycles, Holland Colours will not issue an outlook for the 2015/2016 financial year.
For further information about the 2014/2015 financial results of Holland Colours and other background information about the company, we refer to our website: www.hollandcolours.com.
Apeldoorn, May 28, 2015
Board of Management
Rob Harmsen
Margret Kleinsman
Tineke Veldhuis - Hagedoorn
For further information
Holland Colours NV
Rob Harmsen
CEO
Telephone: +31 (0)55 368 07 00
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Financial statement 2014/2015 HOLLAND COLOURS NV
CONDENSED CONSOLIDATED INCOME STATEMENT
for the financial year ending March 31, 2015
In thousands of euros 01-04-2014 01-04-2013 to to
31-03-2015 31-03-2014
Turnover 68,246 65,950
Gross operating profit 32,667 31,159
Personnel costs 15,180 14,554
Amortisation and impairments 109 113
Depreciation and impairments 1,849 1,806
Other operating costs 10,212 9,293
27,350 25,766
Operating profit 5,317 5,393
Financial income and expenses (260) (242) Income tax expense (1,613) (1,615)
Net result 3,444 3,536
Attributable to:
Shareholders of the company 3,462 3,541
Non-controlling interest (18) (5)
3,444 3,536
Earnings per share in euros
Average number of shares issued 860,351 860,351
Total Earnings per share attributable to 4.02 4.12 shareholders (ordinary and diluted)
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CONDENSED CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME
for the financial year ending March 31, 2015
In thousands of euros
01-04-2014 01-04-2013
to to
31-04-2015 31-04-2014
Net result 3,444 3,536
Items that will not be
reclassified to the income statement
Actuarial results on employee benefits, after taxes (204)
Items that may be
reclassified to the income statement in the future
Foreign currency translation differences 3,680 (1,279) Hedge results, after taxes 335 191
Other comprehensive income 3,141 (1,088)
Total comprehensive income 6,585 2,448
Attributable to:
Shareholders of the company 6,592 2,472
Non-controlling interest (7) (24)
6,585 2,448
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CONDENSED CONSOLIDATED BALANCE SHEET
as at March 2015
In thousands of euros 31-3-2015 31-3-2014
Non-current assets
Intangible fixed assets 363 303
Tangible tixed assets 15,139 14,345
Deferred tax assets 2,227 1,983
Other long-term assets 205 182
Total non-current assets 17,934 16,813
Current assets
Inventories 7,772 7,425
Trade and other receivables 15,362 12,620
Current income tax receivables 72 244
Cash and cash equivalents 5,305 3,183
Total current assets 28,511 23,472
Total assets 46,445 40,285
Equity
Total equity 30,702 25,987
Liabilities
Long-term liabilities 1,125 3,192
Employee benefit obligations 1,417 966
Other long-term liabilities 166 254
Total non-current liabilities 2,708 4,412
Credit institutions - 1,020
Repayment obligations 2,556 250
Trade- and other payables 10,034 8,195
Current income tax payables 305 125
Employee benefit obligations 140 296
Total current liabilities 13,035 9,886
Total equity and liabilities 46,445 40,285
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CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the financial year ending March 31, 2015
In thousands of euros
Share capital
Share premium
Foreign currency translation reserve
Other reserves
Retained earnings
Non- controlling interest
Total equity
As at April 1, 2013 1,953 1,219 (1,408) (86) 23,247 135 25,06
Net result for the 2013/2014 financial
year - - - - 3,541 (5) 3,536
Other comprehensive income - - (1,26) 191 - (19) (1,088) Total comprehensive income - - (1,26) 191 3,541 -24 2,448
Change in f reserve for intangible
assets - - - (11) 11 - -
Dividend for 2012/2013 - - - - (1,506) (15) (1,521)
As at March 31, 2014 1,953 1,219 -2,668 94 25,293 96 25,987
Net result for the 2014/2015 financial
year - - - - 3,462 (18) 3,444
Other comprehensive income - - 3,669 (335) (204) (7) 3,141
Total comprehensive income - - 3,669 (335) 3,258 (7) 6,585
Change in reserve for intangible
assets - - - 58 (58) - -
Change of capital - - - - - (46) (46) Dividend for 2013/2014 - - - - (1,824) - (1,824)
As at March 31, 2015 1,953 1,219 1,001 (183) 26,669 43 30,702
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CONDENSED CONSOLIDATED CASH FLOW STATEMENT
for the financial year ending March 31, 2015
In thousands of euros
Operating activities
01-04-2014 01-04-2013
to to
31-04-2015 31-04-2014
Operating profit 5,317 5,393
Depreciation, amortisation and impairments
1,958 1,919
Exchange-rate differences (265) (287) Changes in working capital: 128 1,049
Cash flow from operating activities 7,138 8,074
Paid income tax (1,210) (1,184) Paid interest (244) (256)
Cash flow from operating activities 5,684 6,634
Cash flow from investing activities (1,125) (2,188)
Cash flow from operating and investing activities 4,559 4,446
Financing activities
Change of capital by non-controlling interest (38) (15) Dividend paid to shareholders (1,824) (1,506) Proceeds from borrowings, net of redemption payments (250) (493)
Cash flow from financing activities (2,112) (2,014)
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SEGMENT REPORTING
for the financial year ending March 31, 2015
Segments 2014/2015
In thousands of euros
Europe North
America
Asia Other Adjustments and
eliminations
Total
Turnover 35,829 22,532 9,887 (2) - 68,246
Inter segmental transactions 867 56 32 - (955) - Turnover including intersegmental
Transactions 36,696 22,588 9,919 (2) (955) 68,246
Depreciation, amortisation and
impairment 848 528 238 353 (9) 1,958
Operating profit 1,662 1,792 1,543 320 - 5,317
Net financial costs - - - - (260) (260) Income tax expense - - - - (1,613) (1,613) Net result - - - - - 3,444
Non-current assets 6,257 6,067 2,603 25,323 (22,316) 17,934
Current assets 12,999 8,279 6,115 7,764 (6,646) 28,511
Liabilities 11,439 2,811 2,929 6,002 (7,438) 15,743
Total investments 547 277 195 252 - 1,271
Average number of employees (in
FTE) 189 88 107 17 - 401
Segments 2013/2014 In thousands of euros | ||||||
Europe | North America | Asia | Other | Adjustments and eliminations | Total | |
Turnover | 35,467 | 21,085 | 9,398 | - | - | 65,950 |
Intersegmental transactions | 601 | 82 | 9 | - | (692) | - |
Turnover including intersegmental transactions Depreciation, amortisation and | 36,068 877 | 21,167 493 | 9,407 184 | - 365 | (692) - | 65,950 1,919 |
impairment Operating profit | 1,456 | 2,094 | 1,261 | 582 | - | 5,393 |
Net financial costs | - | - | - | - | (242) | (242) |
Income tax expense | - | - | - | - | (1,615) | (1,615) |
Net result | - | - | - | - | - | 3,536 |
Non-current assets | 6,517 | 4,888 | 2,067 | 28,455 | (25,115) | 16,812 |
Current assets | 12,418 | 6,025 | 4,918 | 6,442 | (6,330) | 23,472 |
Liabilities | 12,168 | 1,836 | 2,072 | 5,083 | (6,861) | 14,298 |
Total investments | 868 | 511 | 682 | 362 | - | 2,423 |
Average number of employees (in FTE) | 187 | 89 | 104 | 17 | - | 397 |
Terms of transactions between companies forming part of different segments are determined on arm's length basis.
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Notes
General
Holland Colours NV publishes its figures on basis of the International Financial Reporting Standards
(IFRS).
Disclaimer
This press release is based on the annual financial statements prepared by the Board of Management and discussed and released by the Supervisory Board in its meeting of May 28, 2015 and contains only a part of these statements, The annual financial statements are published on
May 28, 2015 and will be presented to the General Meeting of Shareholders for adoption on July 9, 2015, The auditor has issued an auditor's statement of approval for the annual financial statements that
have been prepared.
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Key figures
Financial year at March 31 2014/2015 2013/2014 2012/2013
Results (in € million)
Turnover 68.2 66.0 65.9
Turnover growth (%) 3.5 0.1 7.6
Operation res ult 5.3 5.4 4.9
Net result 3.4 3.5 2.9
Cashflow (in € million)
Cash flow15.4 5.5 4.9
Inves tm ents 1.3 2.4 1.5
Depreciations 2.0 1.9 2.0
Balance sheet (in € million)
2
Working capital
12.7 11.7 13.6
Inves ted capital 30.4 28.2 30.4
Shareholders 'exuity (excl minority interes t) 30.7 25.9 24.9
Balance s heet total 46.5 40.3 40.9
Ratios
3
Total debt / EBITDA 0.5 0.6 0.8
Operating res ult/turnover (%) 7.8 8.2 7.4
Solvency (%) 66.1 64.5 61.3
Return on average invested capital5(ROI) (%) 18.5 18.4 15.6
Return on average s hareholders ' equity (%) 12.5 13.9 12.2
Interes t coverage ratio 20.0 22.2 12.7
Current as sets/current liabilities (current ratio) 2.2 2.4 2.2
Figures per share (€)
Net result 4.02 4.12 3.4
Growth in earnings per s hare (%) (0.0) 21.2 72.6
Cash flow16.28 6.34 5.73
Shareholders ' equity (excl. minority interes t) 35.64 30.09 29.13
Dividend 2.0062.12 1.75
Highest price 48.50 34.6 24.24
Lowes t price 28.20 21.7 16.39
Clos ing price 45.29 28.5 22.15
Other data
Number of outs tanding s hares 860,351 860,351 860,351
Average num ber of employees (fte's ) 401 397 384
1) Cash f low : net result + depreciations
2)Working capital: inventories + amounts receivable -/- non-interest bearing liabilities
3) Total debt: sum of the interest-bearing liabilities
4) Solvency : total shareholders' equity /balance sheet total
5) Return on invested capital: operating prof it / (equity + provisions + interest bearing liabilities -/- cash)
6) Dividend proposal
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HOLLAND COLOURS
Corporate profile
• Approximately 400 employees;
• 2,000 customers in 80 countries;
• 9 locations;
• Worldwide network of agents;
• Each employee is a shareholder.
Holland Colours was founded in 1979 and has been listed on Euronext Amsterdam Stock Exchange since
1989. It is an independent Dutch corporation with offices in North America and Mexico, Europe and Asia.
Holland Colours makes products for colouring synthetic materials, the main products being Holcobatch and Holcoprill. Both these products have the advantage of being free flowing, dust-free, and very easy to dose. Furthermore, Holland Colours makes pastes for colouring silicones, elastomers, PET packaging and other applications.
Holland Colours concentrates worldwide on three focus markets:
• Building & Construction (especially PVC applications);
• Packaging (especially PET applications);
• Silicones & Elastomers.
Around 80% of turnover is realized in these three markets.
Virtually the entire production is generated by our four principal plants in the Netherlands, Hungary, the
United States and Indonesia.
Holland Colours is organized in three regional divisions that operate as profit centers in each specific region: Europe (including the Middle East, India and Africa), Americas and Asia. The global turnover distribution is Europe 53%, Americas 33% and Asia 14%.
Important dates
July 9, 2015 General Meeting of Shareholders
August 17, 2015 Interim statement
October 29, 2015 Publication of semi-annual figures for 2014/2015
February 11, 2016 Interim statement
May 26, 2016 Publication of annual figures for 2014/2015
July 7, 2016 General Meeting of Shareholders
HOLLAND COLOURS NV
PO Box 720 |7300 AS Apeldoorn |The Netherlands T +31 (0)55 368 07 00 |F +31 (0)55 366 29 81 ir@hollandcolours.com | www.hollandcolours.com
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