Annual report 2013: Topsøe lays foundation for future growth

In 2013 Haldor Topsøe A/S achieved satisfactory financial results and made important progress in terms of the strategic initiatives the company has launched to pave the way for additional growth in the years to come.

Revenue increased by 2% to DKK 5,348 million compared to DKK 5,244 million in 2012 while the company’s operating profit (EBIT) increased 18% to DKK 701 million compared with DKK 593 million in 2012. This corresponds to an EBIT margin of 13.1% and was achieved in spite of increased R&D and staff expenses as well as significant investments in expanding the company’s global production capacity.

During 2013 Topsøe's catalyst revenue increased compared to the previous year, but this was offset by a decrease in technology revenue related to certain delays in our order in-flow reflecting the cyclical nature of the industry that Topsøe is part of. Consequently, the year-over-year revenue growth of 2% was somewhat lower than anticipated.

Commenting on the result, Chief Executive Officer Bjerne S. Clausen says: “2013 was a year focused on laying the foundation for future growth. I am pleased that we have maintained the revenue and EBIT levels of 2012, which was a record year. However, in the years to come we must remain focused on creating additional growth to meet our long-term revenue growth objectives.”

Topsøe maintains a balanced portfolio of profitable business areas with growth potential.

“Our catalysts and technologies directly address pressing global issues related to the environment, energy and food supply. Especially in the world’s emerging economies, growing environmental regulation coupled with the ongoing expansion and modernization of the chemical, refining, and power industries are creating growth opportunities. Also in mature markets such as North America, we are seeing opportunities due to the recent shale gas boom,” says Bjerne S. Clausen.

2013 was the second year of implementation of Topsøe’s ’30 in 25’ growth strategy, that outlines how the company plans to reach a revenue of DKK 30 billion by 2025. This is to be accomplished by expanding Topsøe’s existing business into new markets and building entirely new business capabilities.

“The successful execution of this strategy remains the single most important task for us in the years ahead. In 2013 we made important progress by implementing an operational framework across the company that supports the strategy. Furthermore, we expanded our funding base substantially and made major investments in R&D, production capacity, business development and a significant ramp-up of manpower,” says Bjerne S. Clausen.

Financial highlights

• In 2013 revenue increased 2% to DKK 5,348 million (2012: DKK 5,244 million). Catalyst revenue increased compared to the previous year, but was offset by a decrease in technology revenue related to certain delays in order in-flow.
• EBIT increased 18% to DKK 701 million corresponding to an EBIT margin of 13.1% (2012: DKK 593 million and an EBIT margin of 11.3%).
• A change of estimate of warranty provisions related to technology projects had a positive impact on revenue, EBITDA and EBIT (DKK 105 million) and net profit (DKK 79 million) in 2013.
• Cash flows from operations remained high at DKK 665 million (2012: DKK 644 million), but working capital increased by DKK 182 million (2012: DKK -142 million). The working capital increase was due to lower trade payables and reduced prepayments from customers due to reduced technology activity.
• CAPEX increased by 111% and amounted to DKK 721 million (2012: DKK 342 million). The increase reflects the investments being made to establish additional production capacity in Frederikssund, Denmark and Houston, USA. Furthermore, investments in other production and R&D facilities have increased.
• On average Topsøe employed 2430 employees globally in 2013 which represents an increase of 11% compared to 2012. The staff increase took place in both Denmark and around the world.

Key financial figures (Haldor Topsøe A/S Group)

Please find attached Haldor Topsøe A/S' 2013 annual report. The report is also available for download at http://www.topsoe.com/Investors/Archive_annual_report.aspx

         Press contact
         Mads Cordt Gyldenkærne
         Media Relations Manager,
         Corporate Communications & Marketing
         macg@topsoe.dk,
         Mobile: +45 2275 4124