What is the Roto Smeets Group?
Roto Smeets Group NV is a publicly quoted company listed on NYSE Euronext. Roto Smeets Group is an organisation of service businesses which transform their clients’ communications messages – with added value – into printed and multimedia productions.
The operating companies are clustered into two business lines:
The efficient production of rotogravure, web offset and sheet-fed print using specialised, full-service companies as consultant, producer or director, managing the total value chain from prepress to distribution.
The optimum facilitation of a client’s own communication channel, focusing on cross-media (concept, creation, development and supply), as well as recording consumer data and media response moments.
More information on the companies that are part of these businesslines can be found in section 'Brands and Services'.
It is Roto Smeets Group’s ambition to provide efficient and high added-value services to its clients. Roto Smeets Group aims to realise this in a client focussed, open and reliable culture. A culture that is characterised by an urge for perfection, respect and mutual trust.
Adaptability, scale, modern means of production and speed of action must thereby contribute to a healthy development of earnings per share. Roto Smeets Group considers its environmental policy - like its concern for health, safety and welfare - to be an integral part of company policy. It also has a social engagement and
responsibility with respect to its employees, customers and community.
The company objective is to achieve an EBITDA /Valueadded
value ratio of at least 20 %, with a return on capital
employed of 8 %. This with a minimum solvency ratio of
30%, a debt / EBITDA ratio of no more than 3 and EBITDA /
In percentage terms, 94% of the turnover is achieved by Print Productions and 6% by Marketing Communications.
The turnover of 2011 can be broken down by production process as follows:
Prepublishing / DM 6%
The turnover can be broken down by market segment as follows:
Promotional Print 38%
RTV magazines 8%
The prospects for 2012 are coloured by the uncertainty resulting from a general awareness of and response to the economic crisis. In the second half of 2011 we saw high volumes, expecially in rotogravure, and improving prices. Now, though, the uncertainty has become apparent in negotiations on 2012 orders. This, plus the way the paper suppliers initially sought to boost their prices, made negotiations difficult and is continuing to do so even now, with adverse results in many cases. It is clear that a number of Roto Smeets Group's larger competitors are seriously concerned about their machine occupancy in the first six months of 2012 and have once again seized price as their weapon.
Another important element that may delay the recovery of our results is the increasing cost of labour. The social premiums, the unemployment premium that the sector pays, and the health care benefits have all increased in 2012. These factors have cancelled out a large part of the improvements achieved in 2011. This means that despite our satisfaction with 2011, Roto Smeets Group will be confronted with new challenges in 2012, to stay competitive in the longer term in the international arena.
Based on the market developments just sketched out, we feel it would be irresponsible to make any statements about the way our results will develop in the current year.
Roto Smeets Group NV is a Dutch company with registered offices in Deventer which acts as the holding company for the national and international businesses of Roto Smeets Group companies. The law requires Roto Smeets Group to be a full dual-board company. Roto Smeets Group is listed on NYSE Euronext with Amsterdam as its market entry place.
The company's authorised share capital is euro 75 million, and is divided into 7,500,000 ordinary shares and 7,500,000 preference shares, each with a value of euro 5. At 31 december 2011, 3,290,275 ordinary shares are issued and 3.287.132 are outstanding.
These percentages represent the numbers as at 9 May 2012.
Roto Smeets Group's dividend policy presupposes a cash payment of 40% of the net result per ordinary share, provided the Group's solvency fulfils the minimum requirement of 30%. In view of the negative result for 2011, no dividend will be paid.
The half-year figures will be published on August 23, 2012 followed on November 8 with the business update on the 3rd quarter.
For IR-related queries only, please contact Mr L. van Gelder.
For other Corporate questions, please contact Emily Knegtel
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