TESB Tessenderlo Group

Significant transformation work completed; group ready to embark on the second phase of its repositioning

• In 2013, Tessenderlo Group completed a major divestment process which started in 2010. During the year, the group sold its Profiles activities in Continental Europe as well as in the UK; its global Compounds activities, its OCD activities in Italy and the Aliphos Phosphates business excluding the phosphate production in Ham (Belgium). The group has now concluded its divestment program. 
• In addition to these actions, the group also took an important step to sustain profitability of its Ham (Belgium) potassium sulphates business, by launching its plan for the future. 
• Selective growth initiatives were implemented: additional investment for KTS^® fertilizer in Hanford (California), as well as a new CaTs^® production unit to supply thiosulphates to Barrick Gold's Goldstrike mine in Nevada. 
• In November 2013, Picanol Group (NYSE Euronext:PIC) purchased a 27.5% stake in Tessenderlo Group from SNPE SA, and became the largest shareholder of the group. 
• In December 2013, the Board of Directors appointed Luc Tack and Mel de Vogue as co-CEOs, and in January 2014 appointed Stefaan Haspeslagh as an Executive Director in the Group Management Committee (GMC).  The GMC now consists of: Luc Tack, Mel de Vogue, Findar BVBA represented by Stefaan Haspeslagh, Jordan Burns, Pol Deturck and Jan Vandendriessche.  

2013 operating performance mainly impacted by the segment Gelatin & Akiolis; Tessenderlo Kerley  performed well but solid profitability did not match record 2012

• 4Q13 revenue dropped 12.4% to 346.0 million EUR; FY13 revenue moved down 2.9% to 1.8 billion EUR. 
• REBITDA for 4Q13 was 56.4% lower at 9.1 million EUR; FY13 REBITDA of 116.6 million EUR was 24.1% below last year. 
• Recurrent profit amounted to -11.7 million EUR for 4Q13 and 1.7 million EUR for FY13. 
• A loss of -17.8 million EUR was registered in 4Q13, while for the full year 2013, the group had a loss of -65.1 million EUR. 

Net debt decreased further due to cash proceeds

• Net financial debt at the end of December 2013 was 258.9 million EUR, resulting in leverage of 2.2x and gearing of 52.3%. 
• Notional net debt at the end of December 2013 was 340.8 million EUR; on this basis, leverage was 2.9x and gearing 59.0%. 
• Cash flow from divestments received during 2013 was 89.2 million EUR. 
• All covenants remain fully respected. 
• The Board of Directors will propose to the General Meeting of Shareholders not to pay out a dividend for the 2013 financial year. 

Outlook 2014

Based on current assumptions, which include low visibility in the fragile economic environment, Tessenderlo Group anticipates that 2014 REBITDA will be broadly in line with 2013 REBITDA at the same scope of activity.  Compared to 2013, 2014 REBITDA is expected to be lower in the first and second quarters and higher in the third and fourth quarters.   This is partly explained by the fact that on a comparable basis, the year on year group REBITDA declines were more limited in the first two quarters of 2013, while the decreases were more important in the last two quarters of 2013.

This outlook is based upon a REBITDA decline for Inorganics impacted by the project to transform the Ham (Belgium) site into being exclusively focused on sulfates.  In addition, the segment Gelatin and Akiolis is anticipated to deliver REBITDA in 2014 below the level achieved in 2013.   Apart from these impacts, Tessenderlo Kerley, Plastic Pipe Systems and Water Treatment are anticipated to deliver REBITDA growth in the coming year.  Overall, the focus will be to continue implementing cost reduction and commercial improvement actions, in order to recover profitability.

Tessenderlo Group is a worldwide specialty company, focused on food, agriculture, water management and on valorizing bio-residuals. The group employs about 5,000 people and is a leader in most of its markets, with a consolidated revenue of 1.8 billion EUR in 2013.  Tessenderlo Chemie NV is listed on NYSE Eurolist by Euronext Brussels and is part of Next 150 and BEL Mid indices. Financial News wires: Bloomberg: TESB BB - Reuters: TesBt.BR - Datastream: B:Tes

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