(this is a translation of the Dutch press release issued by the company on the same date)
MARGINAL INCREASE IN SALES, NEGATIVE CURRENCY EFFECTS, STRONGLY HIGHER NET RESULT.
Sales of € 66.0 million (2012/2013: € 65.9 million) Operating result € 5.4 million (2012/2013: € 4.9 imllion) Net result € 3.5 million (2012/2013: € 2.9 millio)n
Net profit per share € 4.12 (2012/2013: € 3.40)
Dividend proposal € 2.12 per share (2012/2013: €.715)
Under persistently challenging economic conditions, sales in 2013/2014 rose marginally versus
2012/2013 by 0.1% to € 66.0 million (2012/2013: €56.9 million). In terms of volume, growth was about 3%. Currency effects, especially resulting from a lower US dollar during a large part of the
financial year, had a negative effect of about € 16. million (2%), while price and mix effects also had a
marginally negative effect of nearly 1% on balance. Whereas in the first half year sales decreased by almost 1%, sales in the second six months were almost 1% higher than the same period the year
before.
Versus 2012/2013, sales developed differently across the regions. In Europe, sales grew by 3%. Sales in Americas ended at more or less the same level as for the 2012/2013 financial year. Excluding currency effects, growth in this region was 4%. In Asia, sales in euros lagged versus last year. Excluding currency effects, sales in Asia decreased by 4%.
Without currency effects, sales in the Building & Construction market ended 2% higher on balance than in the 2012/2013 financial year, with a limited increase in volume. A decline in Europe was offset by positive developments in Americas.
In the market for Packaging, Holland Colours realized 2% higher sales at clearly higher volumes compared to the previous year. In this focus market, growth in the divisions Europe and Asia was partly offset by a decrease of sales in the Americas division.
Sales in Silicones & Elastomers were up 6% compared to last year (excluding currency effects). Here a drop in sales in the Asia division was offset by sales growth in Europe and Americas.
Without taking currency effects into account, sales in Specialties decreased by 1%. This decline is mainly attributable to Asia. In Europe, sales in Specialties rose, while we saw a decline in Americas.
In 2013/2014, the gross operating result as percentage of net sales was 47.2%, higher than in the previous year (45.7%). This increase was mainly realized in the first half year. Changes in the product mix are a key reason for this. Raw material prices were in general stable throughout the financial year.
HIGHER OPERATING EXPENSES
Total operating expenses rose from € 25.2 million ot € 25.8 million (+2%). Furthermore, currency effects in particular, as well as a decrease in reserves, had a reducing effect of about € 0.9 million.
The primary increase was in personnel costs, due to collective and individual salary changes, an increase in health-care contributions in North America, and a rise in the average number of employees versus the 2012/2013 financial year, partly offset by a decrease in reserves for employee benefits.
The average number of employees this financial year was 397 (FTE), thus 13 higher than the previous year (2012/2013: 384 (FTE)). At 31 March 2014, the number of employees was 402 (FTE).
The net profit rose in 2013/2014, from € 2.9 million to € 3.5 million. The operating result rose from
€ 4.9 million to € 5.4 million. As usual, sales antdhe result in the second half year were lower than in the first. After a net profit of € 2.2 million overthe first half year (2012/2013: € 2.1 million), the second half year closed with a net profit of € 1.3 million(2012/2013: € 0.8 million).
During the year, Return on Investment (ROI) increased to 18.4% (2012/2013: 15.6%).
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The effective tax rate decreased from 35.0% in 2012/2013 to 31.4% in 2013/2014, mainly as a result of higher taxable profits versus 2012/2013 in countries with a lower effective tax burden (such as the Netherlands) and lower taxable profit in countries with a higher tax percentage (such as North America, where the tax rate moreover slightly decreased over the financial year).
INVESTMENTS
While in 2012/2013 investments of € 1.5 million remained below the depreciation level of € 2.0 million, investments of € 2.4 million during this ifnancial year were higher than the depreciation of
€ 1.9 million.
The increase in investments was partly due to investing activities in 2013/2014 related to PT Holco
Indo Jaya in Surabaya, Indonesia, a participation initiated in 2012 with Italian company Gaypa Srl.
Operating cash flow rose from € 6.3 million in 2012/2013 to € 6.6 million in 2013/2014. Net cash flow was a positive € 2.3 million (2012/2013: € 3.6 mioilln).
At the end of March 2014 the working capital amounted to € 11.7 million, significantly lower than at the end of March 2013 (€ 13.6 million). On balance,this € 1.9 million decrease can be attributed to operational working capital (inventories and trade receivables are lower by € 0.9 million and € 0.8 million respectively, while trade payables rose by € 0.4 million), with a more or less unchanged balance for other receivables and other payables.
The total interest-bearing debt fell from € 5.8 mililon at the end of March 2013 to € 4.5 million at ht e end of March 2014.
The most important banking ratio (Total Debt / EBITDA) improved from 0.8 to 0.6, and remains comfortably below the maximum level agreed with the bank of 3.0. During the financial year, Holland Colours met all covenants agreed with the bank.
The company's solvency ratio increased to 64.5% compared to 61.3% at the beginning of the financial year.
The net result per share amounts to € 4.12 comparedto € 3.40 last year. It will be proposed to the General Meeting of Shareholders that a cash dividend of € 2.12 per share will be distributed (2012/2013: € 1.75).
OUTLOOK FOR 2014/2015
The economic climate is expected to remain uncertain in 2014/2015. The housing market in particular is still not showing any structural recovery in the parts of Europe relevant to Holland Colours. The American economy is expected to continue its gradual recovery. Economic conditions in Asia appear more positive in general, although signals from China are mixed. These macroeconomic developments are having an impact on the markets in which Holland Colours operates.
In that light the development of the new markets and products identified in the "HolcoMORE" strategic programme will be a key focus point. Also efforts aimed at increasing operational efficiency will continue unabated.
Due to the uncertain economic conditions and the sensitivities to macro-economic tendencies of the markets Holland Colours operates in, Holland Colours will not issue a forecast for the 2014/ 2015 financial year.
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The 2013/2014 financial statements and the agenda for the General Meeting of Shareholders of July
10, 2014, will be available May 28, 2014 on our website at www.hollandcolours.com.
Holland Colours NV, May 27, 2014
The Management Board
Rob Harmsen
Marco Kok
Tineke Veldhuis - Hagedoorn
Holland Colours NV Rob Harmsen
CEO
Telephone: +31 (0)55 368 0700
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for the financial year ending March 31, 2014
In EUR thousands
01-04-2013 01-04-2012 to to 31-03-2014 31-03-2013 Turnover 65,950 65,904
Gross operating profit 31,159 30,126
Personnel costs 14,554 14,004
Amortisation and impairments 113 130
Depreciation and impairments 1,806 1,878
Other operating costs 9,293 9,231
Operating profit | 5,393 | 4,883 |
Net finance costs | (242) | (386) |
Income tax expense | (1,615) | (1,575) |
Net result | 3,536 | 2,922 |
Equity holders of the company 3,541 2,921
Minority interests | 5 1 |
3,536 2,922 | |
Average number of shares issued | 860,351 860,351 |
Total earnings per share attributable to equity holders | 4.12 3.40 |
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for the financial year ending March 31, 2014
In EUR thousands
01-04-2013 to | 01-04-2012 to | |
31-03-2014 | 31-03-2013 | |
Net result | 3,536 | 2,922 |
Items that may be subsequently reclassified to profit or loss | ||
Foreign currency translation differences | (1,279) | 568 |
Fair value changes derivative financial instruments | 255 | (53) |
Tax effect (64) (10) | ||
Other comprehensive income | (1,088) | 505 |
Total comprehensive income | 2,448 | 3,427 |
Attributable to: | ||
Equity holders of the company | 2,472 | 3,430 |
Minority interests (24) (3) |
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CONDENSED CONSOLIDATED BALANCE SHEETIn EUR thousands
Non-current assets
31-03-2014 31-03-2013
Intangible fixed assets 303 327
Tangible fixed assets 14,345 14,292
Deferred tax assets 1,983 2,303
Other long-term assets 182 196
Total non-current assets 16,813 17,118
Current assets
Inventories 7,425 8,189
Trade- and other receivables 12,620 13,721
Current income tax receivables 244 288
Cash and cash equivalents 3,183 1,580
Total current assets 23,472 23,778
Equity
Total equity 25,987 25,060
Non-current liabilities
Long-term liabilities 3,192 3,585
Other long-term liabilities 254 331
Employee benefit obligations 966 1,127
Total non-current liabilities 4,412 5,043
Current liabilities
Credit institutions 1,020 1,686
Repayment obligations 250 503
Trade- and other payables 8,195 8,204
Current income tax payables 125 74
Employee benefit obligations 296 326
Total current liabilities 9,886 10,793
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for the financial year ending March 31, 2014
In EUR thousands
Share | Currency | |||
Issued premium | translation | Other | Retained Minority | Total |
capital account differences reserves earnings interest equity
As at April 1, 2012 1,953 1,219 (1,980) (27) 21,276 44 22,485
Net result
for the year 2012/2013 - - - - 2,921 1 2,922
Other comprehensive income - - 572 (63) (4) 505
Total comprehensive income - - 572 (63) 2,921 (3) 3,427
Change in reserve
for intangible fixed assets - - - 4 (4) - - Change of capital - - - - - 94 94
Dividend for 2011/2012 - - - - (946) - (946)
As at March 31, 2013 1,953 1,219 (1,408) (86) 23,247 135 25,060
Net result
for the year 2013/2014 - - - - 3,541 (5) 3,536
Other comprehensive income - - (1,260) 191 (19) (1,088) Total comprehensive income - - (1,260) 191 3,541 (24) 2,448
Change in reserve
for intangible fixed 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
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CONDENSED CASH FLOW STATEMENTfor the financial year ending March 31, 2014
In EUR thousands
01-04-2013 01-04-2012 to toOperating activities | 31-03-2014 | 31-03-2013 |
Operating profit | 5,393 | 4,883 |
Depreciation, amortisation and impairments | 1,919 | 2,008 |
Exchange rate differences | (287) | (130) |
Changes in working capital | 1,258 | 1,590 |
Cash flow from business activities | 8,283 | 8,351 |
Paid income tax | (1,184) | (1,595) |
Paid interest | (256) | (429) |
Cash flow from operating activities | 6,843 | 6,327 |
Cash flow from investing activities | 2,397 | (1,466) |
Cash flow from operating and investing activities | 4,446 | 4,861 |
Cash flow from financing activities | ||
Changes of capital by non controlling interests | (15) | 94 |
Dividend paid to shareholders | (1,506) | (946) |
Proceeds from borrowings, net of redemption payments | (493) | (496) |
Cash flow from financing activities | (2,014) | (1,348) |
Change in cash and cash equivalents | 2,432 | 3,513 |
Currency differences in cash (163) 38 | ||
Net cash flow | 2,269 | 3,551 |
Cash at opening balance date | (106) | (3,658) |
Cash at ending balance date | 2,163 | (106) |
Net cash flow | 2,269 | 3,551 |
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SEGMENT REPORTINGfor the financial year ending March 31, 2014
Segments 2013/2014In EUR thousands
North- Adjustments andEurope America Asia Other eliminations Total
Turnover | 35,467 | 21,085 | 9,398 | - | 65,950 | |
Inter segmental transactions | 601 | 82 | 9 | - | (692) | - |
Sales including inter segmental transactions | 36,068 | 21,167 | 9,407 | - | (692) | 65,950 |
Depreciation, amortisation and impairments | 877 | 493 | 184 | 365 | - | 1,919 |
Operating profit | 1,456 | 2,094 | 1,261 | 582 | - | 5,393 |
Net finance costs | - | - | - | - | (242) | (242) |
Income tax expense | - | - | - | - | (1,615) | (1,615) |
Net result | - | - | - | - | - | 3,536 |
Assets | 18,935 | 10,913 | 6,985 | 32,941 | (29,489) | 40,285 |
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's | 187 | 89 | 104 | 17 | - | 397 |
Segments 2012/2013
In EUR thousands
North- Adjustments andEurope America Asia Other eliminations Total
Turnover | 34,638 | 21,058 | 10,212 | (4) | - | 65,904 |
Inter segmental transactions | 701 | 14 | - | - | (715) | - |
Sales including inter segmental transactions | 35,339 | 21,072 | 10,212 | (4) | (715) | 65,904 |
Depreciation, amortisation and impairments | 961 | 507 | 161 | 379 | - | 2,008 |
Operating profit | 997 | 2,378 | 1,559 | (51) | - | 4,883 |
Net finance costs | - | - | - | - | (386) | (386) |
Income tax expense | - | - | - | - | (1,575) | (1,575) |
Net result | - | - | - | - | - | 2,922 |
Assets | 18,342 | 12,258 | 7,040 | 30,535 | (27,279) | 40,896 |
Liabilities | 11,650 | 2,477 | 1,350 | 6,182 | (5,832) | 15,836 |
Total investments | 622 | 357 | 348 | 187 | - | 1,514 |
Average number of employees in fte's | 181 | 88 | 100 | 15 | - | 384 |
Terms of transactions between companies forming part of different segments are determined on arm's length basis,
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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 27, 2014 and contains only a part of these statements, The annual financial statements are published on May
28, 2014 and will be presented to the General Meeting of Shareholders for adoption on July 10, 2014, 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 | 2013/2014 | 2012/2013 | 2011/2012 |
RESULTS (in € million) | |||
Turnover | 66.0 | 65.9 | 61.2 |
Turnover growth (%) | 0.1 | 7.6 | 1.2 |
Operating result | 5.4 | 4.9 | 3.2 |
Net result | 3.5 | 2.9 | 1.7 |
CASHFLOW (in € million) | |||
Cash flow1 | 5.5 | 4.9 | 3.9 |
Investments | 2.4 | 1.5 | 0.7 |
Depreciations | 1.9 | 2.0 | 2.2 |
BALANCE SHEET (in € million) | |||
Working capital2 | 11.7 | 13.6 | 14.8 |
Invested capital | 28.2 | 30.4 | 31.8 |
Shareholders' equity (excl. minority interest) | 25.9 | 24.9 | 22.4 |
Balance sheet total | 40.3 | 40.9 | 40.7 |
RATIOS | |||
Total debt3 / EBITDA | 0.6 | 0.8 | 1.8 |
Operating result / turnover (%) | 8.2 | 7.4 | 5.2 |
Solvency4 (%) | 64.5 | 61.3 | 55.3 |
Return on average invested capital5 (ROI) (%) | 18.4 | 15.6 | 10.0 |
Return on average shareholders' equity (%) | 13.9 | 12.2 | 7.7 |
Interest coverage ratio | 22.2 | 12.7 | 5.8 |
Current assets / current liabilities (current ratio) | 2.4 | 2.2 | 1.8 |
FIGURES PER SHARE (€) | |||
Net result | 4.12 | 3.40 | 1.97 |
Growth in earnings per share (%) | 21.2 | 72.6 | (46.0) |
Cash flow1 | 6.34 | 5.73 | 4.55 |
Shareholders' equity (excl. minority interest) | 30.09 | 29.13 | 26.08 |
Dividend | 2.126 | 1.75 | 1.10 |
Closing price | 28.50 | 22.15 | 17.00 |
OTHER DATA | |||
Number of outstanding shares | 860,351 | 860,351 | 860,351 |
Average number of employees (fte's) | 397 | 384 | 382 |
1) Cash flow: 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 profit / (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;
10 (production) sites; Worldwide network of agents; Each employee is stockholder.
Holland Colours NV was founded in 1979 and has been listed on the NYSE Euronext Amsterdam Stock Exchange since 1989. It is an independent Dutch company with offices in North America, Mexico, Europe and Asia. Holland Colours makes products for colouring synthetic materials. These so-called colour concentrates are available as both solid and liquid. The key products in solid form are Holcobatch and Holcoprill. The liquid products Holland Colours makes are pastes for colouring Silicones & Elastomers, PET packaging and various 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 centres in each specific region: Europe (including the Middle East, India and Africa), the Americas and Asia.
The global distribution of sales is: Europe 54%, Americas 32% and Asia 14%.
10 July 2014 General Meeting of Shareholders
14 August 2014 Interim statement
30 October 2014 Publication of semi-annual figures for 2014/2015
5 February 2015 Interim statement
28 May 2015 Publication of annual figures for 2014/2015
09 July 2015 General Meeting of Shareholders
Rob Harmsen
CEO Holland Colours
Tel: +31 (0)55 368 0700
HOLLAND COLOURS NV
PO Box 720 | 7300 AS Apeldoorn | The Netherlands T +31 (0)55 368 0700 | F +31 (0)55 366 2981 ir@hollandcolours.com
www.hollandcolours.com
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