Investor Seminar Presentation [PDF, 997.72 Kb] - Tessenderlo Group

Tessenderlo GroupInvestor Seminar6 April 20101

Rigourous Assessment of the portfolioIndustryattractiveness• Market size & growth• Segment profitability• Industry value chain• Porter analysis• Macro environment• Market share and position• Competitor analysis• Strengths and weaknesses• Sources of competitive advantageCompetitive position2

Rigourous Assessment of the portfolioIndustryattractivenessCompetitive position3

Strategy does not exist in isolation4

Clear Strategic DirectionIndustryattractiveness+Competitive position5

Clear Strategic DirectionTessenderloBusiness UnitsTessenderloBusiness UnitsTessenderloBusiness Units6

Portfolio Mapping• Mature markets• Highly commoditized• Highly competitive environment• Capital intensive• Low returnsInorganicsPVC/Chlor-AlkaliOther Businesses• Increase profitabilitythrough cost control• Strict cash management• Strengthen competitiveposition through alliances7

Portfolio Mapping• Market growth ≥ GDP• Possible differentiation via:– Products– Services– DistributionPlastic Pipe SystemsAnd Profiles• Increase profitabilitythrough cost control• Growth in selectedmarketsInorganicsPVC/Chlor-AlkaliOther Businesses8

Portfolio Mapping• Market growth ≥ GDP• Innovative business model• Strong returnsKerleyGelatin andNatural Derivatives• Grow organically orthrough acquisition:– Geographically– New products &servicesPlastic Pipe SystemsAnd ProfilesInorganicsPVC/Chlor-AlkaliOther Businesses9

Creating ValueKerleyGelatin andNatural DerivativesPlastic Pipe SystemsAnd Profiles• Growth opportunities• Potential for value creation• Sustainability• Global presence• Innovative business model• Service orientationInorganicsPVC/Chlor-AlkaliOther Businesses10

Executing a multi-year planM&AMarketFinancialPositionOperatingResultsWORLD ECONOMY11

Clear Group StrategyKerleyGelatin andNatural DerivativesAverage ROCE > 12%50% outside of EuropeInnovative business modelProducts & ServicesPlastic Pipe SystemsAnd ProfilesInorganicsPVC/Chlor-AlkaliOther BusinessesAverage ROCE < 8%90+% in EuropeProducts13

Tessenderlo GroupInvestor Seminar6 April 201014