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Floris Waller CFO and member Executive Board. Corporate Express US Analyst Meeting Denver – 12-13 September 2007. “Safe Harbour” Statement under the Private Securities Litigation Reform Act of 1995. Statements included in this press release, which are not historical facts are forward-looking - PowerPoint PPT Presentation
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1CXP Analyst and Investor Meeting Denver – 12-13 September 2007
Floris WallerCFO and member Executive Board
Corporate Express US Analyst Meeting Denver – 12-13 September 2007
2CXP Analyst and Investor meeting, Denver - 12-13 September 2007
“Safe Harbour” Statementunder the Private Securities Litigation Reform Act of 1995
Statements included in this press release, which are not historical facts are forward-looking
statements made pursuant to the safe harbour provisions of the Private Securities Litigation
Reform Act of 1995 and the Securities Exchange Act of 1934.
Such forward-looking statements are made based upon management’s expectations and
beliefs concerning future events impacting Corporate Express and therefore involve a
number of uncertainties and risks, including, but not limited to industry conditions,
changes in product supply, pricing and customer demand, competition, risks in integrating
new businesses, currency fluctuations, and the other risks described from time to time in the
Company’s filings with the US Securities and Exchange Commission, including the
Company’s Annual Report on Form 20-F filed with the Securities and Exchange Commission
on March 9, 2007. As a result, the actual results of operations or financial conditions of the
Company could differ materially from those expressed or implied in such forward-looking
statements. Shareholders and other readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date on which they are made.
The Company undertakes no obligation to update publicly or revise any forward-looking
statements.
3CXP Analyst and Investor meeting, Denver - 12-13 September 2007
What (not) to expect those days
• What to expect– Focus will be on Corporate Express US (CEUS)
CEUS is our North American division, excluding Canada
– Strategic accounts, merchandising, CEC, logistics
• What not to expect:– Strategic Review will not be discussed
Outcome can be expected at end of September Specific date to be announcement later
– No update on current trading, neither for US nor for Group
4CXP Analyst and Investor meeting, Denver - 12-13 September 2007
History of Corporate Express
1851 Incorporated1938 Listed on Amsterdam stock exchange
1993 Merger KNP, Bührmann-Tetterode, VRG KNP BT1998 KNP BT distribution’s sector Buhrmann NV
1999 Merger with Corporate Express, Inc.
2001 Acquisition Office Supplies Division SamasAcquisition Office Supplies Division USOP
2003 Sale of Paper Merchanting Division
2007 Sale of ASAP Software
2007 Renamed Corporate Express NV
5CXP Analyst and Investor meeting, Denver - 12-13 September 2007
BTVRGKNP
KNP BT
Sector Paper Sector Packaging Sector Distribution
Sappi
Kappa
30% flotationBT OPI on NYSE
Multipleadd-on
acquisitionsDe-listingBT OPI
1993
1995
1997
1998
1998Buhrmann
OP North America
GraphicSystems
PaperMerchanting
OP Europe
OP Australia
ISD
SCH Ltd
6CXP Analyst and Investor meeting, Denver - 12-13 September 2007
Multiple
add-on
acquisitions
CorporateExpress
US OPSamas
1998
1999
2001
2003
2007
PaperlinX
Dell
Corporate Express
OP North America
ASAPSoftware
PaperMerchanting
OP Europe
OP Australia
GraphicSystems
7CXP Analyst and Investor meeting, Denver - 12-13 September 2007
Going-concern overview - excl. ASAP Software
• Based on LTM figures, excluding ASAP Software and Davenport Office
• LTM sales EUR 5,621 mln– Office Products EUR 5,020 mln– Printing Systems EUR 601 mln
• LTM gross contribution EUR 1,839 mln– Office Products EUR 1,651 mln
As % of sales: 32.9%
– Printing Systems EUR 188 mln
• LTM EBIT* EUR 242 mln– Office Products EUR 213 mln
Includes Corporate (EUR 9 mln) As % of sales: 4.2%
– Printing Systems EUR 29 mln• *Before special items
8
OP Europe
• Sales increased 38% at constant rates– Organic growth 5%
• In general, market conditions are favourable with• growing employment, solid economic conditions
• Strongest sales growth Nordics, UK, France– Facility strong sales growth
• Continued strong improvement gross contribution
• 2007: continued organic sales growth expected and • significantly higher sales and EBIT
– Sales improvement– Merchandising
22%
9
OP Australia
• Q2 07 sales +9% at constant rates– Generated across its diverse markets– Healthy growth in facility and breakroom– Contribution Educational Experience
• Gross contribution up 12%
• In H2 2008 new state-of-the art distribution • Centre to be opened in New South Wales
• Going forward, – Focus on further leverage single-source
model to drive organic growth
– Capitalise on acquisition strategy– Strong focus on business efficiency
improvements
15%
10
Printing Systems For FY 2007 optimistic about continued sales and earnings growth
0
150
300
450
600
1983 1986 1989 1992 1995 1998 2001 2004 2007Sales Trend
• Q2 07: good quarter with sales +7%• Mainly driven by printing presses
• Sold Veenman Germany to Konica
• Net sales 2006 EUR 565 mln• Graphic Systems EUR 471 mln
– Triple S: 34% of total sales • Veenman Group EUR 94 mln
Sales
83%
17%
Graphics Veenman
Excl. Veenman Group
11CXP Analyst and Investor meeting, Denver - 12-13 September 2007
North AmericaLTM sales EUR 3,059 mln
9,862 FTEs
EuropeLTM sales EUR 1,186 mln
3,980 FTEs
Australia & New ZealandLTM sales EUR 775 mln
2,537 FTEs
Southeast Asiaalliances
Latin Americaalliances
Europealliances
LTM = Last twelve months
Global Office Products - Global Coverage
12CXP Analyst and Investor meeting, Denver - 12-13 September 2007
Global customersOnly player with such capabilities, strong growth
• Combined sourcingAsian sourcing offices, supplier relations, private brands
• Exchange best practicesPick-to-Voice, eCommerce, Salesforce.com
Product range extension Private brands
Global Office Products - Global Coverage
13CXP Analyst and Investor meeting, Denver - 12-13 September 2007
Products and services From ‘Office Supplies’ towards ‘Supplies for the Office’
NorthAmerica
Europe
- Office supplies- Computer supplies- Print & forms management- Facility- Breakroom - Office furniture
- Customised corporate gifts- Educational supplies - IT hardware- Desktop software- Others
---
--
---
Australia
14CXP Analyst and Investor meeting, Denver - 12-13 September 2007
Market Environment
Corporate Express
Office Depot
Office Max
Staples
Lyreco
Regional/Local Players
Staples
Office Depot
Office Max
Supermarkets Independent
Retailers
Wide range / consumables
Next Day Delivery
CONTRACT DIRECT MAIL
Limited Offering
RETAIL
Physical PresenceLease obligation
Staples
Office Depot
Office Max
Regional/Local Players
15CXP Analyst and Investor meeting, Denver - 12-13 September 2007
7%
8%
9%
10%
11%
Average working capital as % of sales4 quarter rolling average
9.7%
16CXP Analyst and Investor meeting, Denver - 12-13 September 2007
in EUR mln Q2 07 LTM Guidance FY 07
EBIT 54.7 247.1
Depreciation pp&e 20.4 89.2 ± 90
Amortisation intangibles 3.1 10.8 ± 12
Adjustments for non-cash (0.2) 0.4
Change in inventories (2.8) (38.2)
Change in trade receivables (70.8) (63.1)
Change in trade payables 106.0 65.8
Change in other receivables/liabilities (25.3) 2.5
Change in working capital 7.2 (33.1)
Payments for defined benefits plans (2.5) (13.2) ± (10)
Profit tax paid (8.5) (30.2) ± (35)
Other operational payments (0.5) (29.2)
Cash Flow operational activities 73.6 241.6
Investments in pp&e and software (26.1) (92.7) ± (100)
Acquisitions, integration, divestments (1.7) (279.2)
CF available for financing activities 45.8 (130.2)
Consolidated cash flow statement
17CXP Analyst and Investor meeting, Denver - 12-13 September 2007
Net interest-bearing debt Excl ASAP Software *, in bold
Leverage ratio: 3.7x → 3.3x *
Interest coverage ratio 4.5x → 4.6x *
Net interest-bearing debt as percentage of
group equity: 98% → 75% *
1,456
1,208
* Assumes ASAP Software divestment per end of June 2007
Proceeds USD 340 mln (± EUR 248 mln)
*
18CXP Analyst and Investor meeting, Denver - 12-13 September 2007
in EUR mln
Actual Cash Interest %
Revolver (EUR 255 mln facility) 42 LIBOR +2.50% drawn; +0.75% undrawn
Term Loans A / D (senior credit facility) 642 EURIBOR +2.50%/2.00%
Convertible (subordinated) 115 2.00%
Equity Adjustment Convertible (22)
Securitisation 172LIBOR +0.40% drawn; +0.28% un-drawn
High Yield bonds (USD 300 mln; subordinated) 222 7 7/8%-8¼% semi annual
Preferences Shares A (nominal value) 181 21 cts/share; EUR 11mln
Other Debt 202
Capitalized financed fees (21)
Cash (77)
Interest – Bearing Net Debt 1,456
Funding (per end of June 2007)
19
Closing remarksProductivity in your handsProductivity in your hands
• Increased corporate focus on office products via divestment ASAP and Veenman Germany
• OP Europe, OP Australia, Printing systems showing good performance
• OP North America to be covered in detail today and tomorrow
---/---
• Strategic review outcome expected at end of September• No trading update to be expected
Enjoy your 1.5-day Corporate ExpressEnjoy your 1.5-day Corporate Express
Analyst & Investor meetingAnalyst & Investor meeting
20CXP Analyst and Investor Meeting Denver – 12-13 September 2007
Productivity in your hands.