11 May 2017

Healthy growth 2016 Royal TenCate

Koninklijke Ten Cate B.V. (Royal TenCate) realized 2016 revenues of € 1,178 million (2015: € 1,159 million). EBITDA (before exceptional items) amounted to € 126.7 million (2015: € 97.7 million).

The strong increase of the consolidated results was mainly due to the initial recovery of the TenCate Advanced Armour group. A strong performance was also noted in the TenCate Advanced Composites group due to the further growth of its aerospace composites activities, in the Protective Fabrics group due to increased defense related sales and in the Geosynthetics group due to increased sales volumes.

The Grass group did not contribute to the improvement of the consolidated EBITDA in 2016. Revenues of TenCate Grass remained stable, reflecting a hesitant market environment in the sport segment of the synthetic turf market.

Investments in intangible and tangible fixed assets amounted to approximately € 30 million, which was in line with the previous year.

As a consequence of the strong EBITDA result, cash flow increased to a level of € 85 million (2015: € 49 million), whereby net debt was reduced with € 79 million, compared to the end of the year 2015, to the amount of € 114 million per year end 2016. In January 2017, Tennessee Acquisition B.V. (holding company of Koninklijke Ten Cate B.V.) reached an agreement on a refinancing of its debt, which has resulted in a substantial decrease of finance costs.

At the end of 2016 the Corporate Family Rating (CFR) of Ten Cate was upgraded to B2 from B3 by Moody’s.

Annual Review 2016

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Annual Review 2017 (EN)

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