we engineer mission-critical technologies for ground-breaking industries and everyday life

Transcription

1 we engineer missin-critical technlgies fr grund-breaking industries and everyday life full year results 2018 Utrecht, 26 February 2019

2 cntents 1. Aalberts 2. strategy & bjectives 3. business review 4. business develpment 5. financial review 6. utlk questins & answers

3 1. Aalberts

4 ur essence we engineer missin-critical technlgies fr grund-breaking industries and everyday life we are a cmpany f missin-critical peple wh can t resist ging beynd the line f duty - gd is never gd enugh sharing and discussing bad gets us t brilliant greatness is made f shared knwledge we are relentless in ur pursuit f excellence 26 February 2019 Aalberts full year results

5 ur way f value creatin ur essence missin-critical technlgies sharehlder value leading niche technlgy psitins high entry barriers, pricing pwer high added-value margins, sustainable grwth gd is never gd enugh peratinal excellence imprve EBITA margins, strng cash cnversin disciplined capital allcatin greatness is made f shared knwledge technlgy exchange innvatin speed fast learning & adaptatin 26 February 2019 Aalberts full year results

6 ur track recrd ver 40 years f sustainable prfitable grwth multi-industry fcus prtfli grwth fcus niche technlgy fcus , revenue (in EUR millin) EBITA (in EUR millin) 1,440 2, fundatin cmpany IPO prmted t AMX index prmted t AEX index fcused technlgy leader, strngly psitined fr accelerated future grwth 26 February 2019 Aalberts full year results

7 ur track recrd - sharehlder value creatin share price develpment (in EUR) earnings per share (in EUR) dividend per share (in EUR) CAGR 19% CAGR 9% CAGR 10% ur relentless pursuit f excellence drives true sharehlder value 26 February 2019 Aalberts full year results

8 ur key strength - missin-critical peple the Aalberts way winning with peple greatness is made f shared knwledge ur unique advantage be an entrepreneur take wnership g fr excellence share and learn act with integrity 26 February 2019 Aalberts full year results

9 ur glbal leading niche technlgy psitins installatin technlgy material technlgy climate technlgy industrial technlgy we are where technlgy matters and real prgress can be made 26 February 2019 Aalberts full year results

10 ur way f sustainable entrepreneurship Since ur inceptin in 1975, Aalberts has always been where technlgy matters and real prgress can be made. Humanly, envirnmentally and financially. impacting ec-friendly buildings, sustainable transprtatin, lifetime extensin f materials, clean water and sanitatin and prducing and cnsuming respnsibly 26 February 2019 Aalberts full year results

11 2. strategy & bjectives

12 ur strategy & bjectives strategy fcused acceleratin' nn-financial bjectives financial bjectives remain fcused imprve technlgy psitins wrldwide leading niche technlgy psitins average rganic revenue grwth > 3% creating sustainable prfitable grwth EBITA margin > 14% ROCE > 18% generating high added-value margins free cash flw cnversin rati > 70% imprve prfitability cntinuusly use Aalberts strengths cnverting strng peratinal executin int free cash flw leverage rati < 2.5 slvability > 40% driven by entrepreneurship and a relentless pursuit f excellence 26 February 2019 Aalberts full year results

13 finance & IT digital ur lean and effective structure Aalberts leadership team business structure Aalberts netwrks stimulates business fcus, entrepreneurship, fast learning and decisin making 26 February 2019 Aalberts full year results

14 innvatin driving sustainable prfitable grwth cntinuus investments in R&D innvate prtfli & business leverage mega trends > 100 EUR mi > 400 FTE manufacturing autmatin 2.0 master data management cnnected technlgies and digital services climate change urbanisatin raw material scarcity internet f things glbalisatin c-develpment R&D investments increased t 4% f ttal revenue leadership netwrks and fcused investments exchange fresh thinking and embrace new technlgies ur pragmatic culture and lean structure keep us ahead f the game 26 February 2019 Aalberts full year results

15 cnverting strng peratinal executin int free cash flw rganic revenue grwth (in %) 4.6 added value margin (in %) EBITA (in EUR millin) EBITA margin (in %) EPS (in EUR) 2.49 cash flw frm peratins (in EUR millin) 427 free cash flw (in EUR millin) 312 free cash flw cnversin rati (in %) generating high added value margins t invest in innvatins and market pprtunities 26 February 2019 Aalberts full year results

16 disciplined capital allcatin cash dividend plicy 30% f net prfit befre amrtisatin rganic grwth CAPEX EUR millin p.a. acquisitins - blt-n 'sweetspt size EUR millin annual revenue deplyment EUR millin p.a. acquisitins - strategic ftprint size EUR 150+ millin annual revenue deplyment EUR 100+ millin (depending n pprtunity) strengthening ur wrldwide leading niche technlgy psitins 26 February 2019 Aalberts full year results

17 return n incremental capital emplyed (ROICE) EBITA capital emplyed , ,262 Δ % 910 ten-year ROICE demnstrating the sustainability f ur lng-term business mdel 26 February 2019 Aalberts full year results

18 3. business review

19 Aalberts highlights 2018 revenue (in EUR millin) 2,759 +2% added-value (% f revenue) : 62.3 revenue +2% t EUR 2,759 millin (rganic +5%) perating prfit (EBITA) +9% t EUR 366 millin; EBITA-margin imprved t 13.3% EBITA (in EUR millin) net prfit (in EUR millin) % % EBITA % (% f revenue) : 12.5 earnings per share (in EUR) % net prfit befre amrtisatin +15% t EUR 275 millin; earnings per share EUR 2.49 (+16%) free cash flw amunted t EUR 312 millin; ROCE imprved t 16.6% cntinued investments in rganic grwth and innvatin initiatives capital expenditure (in EUR millin) % ROCE (in %) : 16.2 blt-n acquisitins: PEM, VAF, C-Planar and RMF; annual revenue f EUR 82 millin annual revenue f EUR 97 millin divested and ptimised rganic revenue grwth +5%; earnings per share +16% cntinued investments in grwth and innvatins 26 February 2019 Aalberts full year results

20 installatin technlgy revenue (in EUR millin) 1,119-1% EBITA (in EUR millin) EBITA % (in % f revenue) 134-3% : 12.2 capital expenditure (in EUR millin) 38-13% realised a gd rganic grwth acceleratin f the implementatin f the lng-term glbal plans management and sales teams in Nrth America, Asia and Eurpe strengthened many ptimisatin and efficiency initiatives were taken, additinal csts were made started prcess t rll-ut the Aalberts cmpany passprt wrldwide new prduct lines launched, additinal investments fast-grwing prduct lines ffered integrated piping systems prtfli successfully t several key accunts innvatin radmap extended with digital, engineering initiatives multilayer systems excellent year, gd grwth Nrth America and Eurpe many gd initiatives t further ptimise prtfli, grw the business fcus n integrated piping and multilayer systems wrks ut well many investments in alignment, ptimisatin and efficiency; fcus wrks ut well 26 February 2019 Aalberts full year results

21 material technlgy revenue (in EUR millin) % did well during the year, especially in Eurpe Nrth America strng perfrmance, pwer generatin challenging circumstances surface treatment activities successfully aligned in Eurpe EBITA (in EUR millin) % investments heat treatment increased t explit the many pprtunities autmtive many pprtunities t develp new, mre cmplex, highly specified parts n larger glbal scale fr electrificatin f vehicles and autnmus driving EBITA % (in % f revenue) : 13.3 capital expenditure (in EUR millin) % Aalberts wrldwide presence, develpment and investment pwer real advantage aerspace cntinued executin business and investment plan glbal peratinal excellence initiatives made gd prgress; several lcatins further ptimised, divested r integrated strengthened prtfli with three blt-n acquisitins; crrsin prtectin technlgy Nrth America, reel-t-reel surface treatment technlgy Eurpe, expansin Nrth American ftprint precisin stamping gd perfrmance with many pprtunities; prtfli strengthened 26 February 2019 Aalberts full year results

22 climate technlgy revenue (in EUR millin) EBITA (in EUR millin) EBITA % (in % f revenue) % 65 +5% : 11.9 capital expenditure (in EUR millin) % realised rganic grwth launch new and upgraded prduct ranges including digital services mixed business picture; gd grwth in several regins, prject business slwdwn summer perid; rder intake increased during last mnths f the year innvatin radmaps gd prgress, many new and upgraded prduct lines integrated three lcatins in Spain, France and UK hydrnic flw cntrl will be expanded, ptimised by investing in a new manufacturing and distributin facility in the Netherlands new digital business mdels in develpment in France, Netherlands; energy efficiency system imprvements are driven by data cllectin and mnitring; increasing demand fr pre-fabricatin f mdular installatin systems speeding up innvatin and engineering key t strengthen psitin new prduct ranges and digital business mdels; speeding up innvatin, engineering 26 February 2019 Aalberts full year results

23 industrial technlgy revenue (in EUR millin) % gd perfrmance and rder intake fluid cntrl launched upgraded prduct lines, well received EBITA (in EUR millin) EBITA % (in % f revenue) % : 15.0 capital expenditure (in EUR millin) %» strengthened technlgy prtfli with acquisitin f VAF, sensr and measurement specialist» engineered valves difficult circumstances, mainly due t less gvernmental prjects in Eastern Eurpe and China; Nrth America perfrmed well dispense technlgies gd year; streamlined, cnslidated peratins Nrth America, excellent year Eurpe, started t align lcatins glbally advanced mechatrnics realised great perfrmance; business accelerated» pre-investments in peple and equipment wrked ut well» additinal investments in engineering, prject management, key accunt management and capital equipment t facilitate grwth cming years» Aalberts strengths enable us t attract talented and experienced peple gd perfrmance and rder intake; additinal investments facilitating grwth 26 February 2019 Aalberts full year results

24 4. business develpment

25 strengthening technlgy psitins - acquisitins PEM SAS (France) material» adds reel-t-reel surface treatment technlgy, technlgy utilising Aalberts glbal service netwrk VAF Instruments (the Netherlands) industrial» adds high-tech sensrs, measurement systems and technlgy perfrmance management sftware engineering Ry Metal Finishing (USA) material» adds crrsin prtectin surface treatment technlgies technlgy in Nrth America, serving ur glbal key accunts C-Planar (USA & Mexic) material» expands precisin stamping ftprint, serving ur technlgy glbal key accunts in USA and Mexic EUR 82 millin f annual revenue acquired 26 February 2019 Aalberts full year results

26 strengthening technlgy psitins divestments, ptimisatins integrated piping systems installatin» nn-cre, lw margin prduct lines technlgy heat & surface treatment, specialised manufacturing material» nn-cre, lw margin prcesses technlgy acquisitins +82 divestments annual impact EUR 97 millin f annual revenue divested and ptimised 26 February 2019 Aalberts full year results

27 strengthening technlgy psitins - ging frward rganic grwth» acceleratin f innvatins t be launched» innvatin rate targets per business team» mre business with existing and new key accunts» further increase f capex (40% innvatin, 30% efficiency, 30% capacity) acquisitins» cntinuus alignment f acquired businesses» gd pipeline f acquisitin targets, many pprtunities ptimisatins» cntinuus ptimisatin technlgy prtfli and lcatins ur disciplined capital allcatin drives sustainable prfitable grwth 26 February 2019 Aalberts full year results

28 5. financial review

29 revenue bridge , ,759 rganic revenue grwth +5%, prtfli further imprved 26 February 2019 Aalberts full year results

30 cndensed cnslidated incme statement in EUR millin revenue 2, ,694.0 perating prfit (EBITDA) depreciatin (95.9) (86.9) perating prfit (EBITA) net interest expense (16.7) (16.7) ther net finance cst (5.7) (8.7) incme tax expense (ETR 2018: 21.4%; 2017: 24.6%) (65.6) (68.0) nn-cntrlling interests (2.6) (3.9) NET PROFIT BEFORE AMORTISATION EPS befre amrtisatin in EUR revenue grwth: +4.6% rganic (reprted +2.4%; FX impact -1.4%; acquisitins/divestments -0.8%) FX impact EUR 39 millin negative n revenue and EUR 4.3 millin negative n EBITA EBITA +9%, net prfit +15% and EPS +16% 26 February 2019 Aalberts full year results

31 cndensed cnslidated balance sheet in EUR millin ttal nn-current assets 2,068 1,916 ttal current assets 1, TOTAL ASSETS 3,148 2,910 ttal equity 1,676 1,513 ttal nn-current liabilities ttal current liabilities TOTAL EQUITY AND LIABILITIES 3,148 2,910 net debt leverage rati: net debt / EBITDA (12-mnths-rlling) net wrking capital net wrking capital as a % f ttal revenue ttal equity as a % f ttal assets return n capital emplyed (ROCE) (in %) NWC remained 16.8% f revenue and ROCE further imprved t 16.6% 26 February 2019 Aalberts full year results

32 cndensed cnslidated cash flw statement in EUR millin delta perating prfit (EBITDA) result n sale f equipment / changes in prvisins (20.5) (3.0) (17.5) changes in wrking capital (14.3) 7.6 (21.9) CASH FLOW FROM OPERATIONS (0.4) net capital expenditure (114.5) (117.0) 2.5 FREE CASH FLOW finance cst paid (19.2) (22.7) 3.5 incme taxes paid (85.6) (68.1) (17.5) acquisitin/dispsal f subsidiaries (131.5) (41.0) (90.5) prceeds frm nn-current brrwings repayment f nn-current brrwings (139.4) (130.0) (9.4) dividends paid (71.9) (64.1) (7.8) cash flw t nn-cntrlling interests (7.1) (0.1) (7.0) NET INCREASE/(DECREASE) IN CASH AND CURRENT BORROWINGS (101.5) Δ NWC EUR -14 millin (inventries EUR -67m, receivables EUR +14m and payables EUR +39m 26 February 2019 Aalberts full year results

33 revenue & capex in EUR millin delta installatin technlgy 1, ,134.8 (1%) material technlgy % climate technlgy % industrial technlgy % hlding / eliminatins (62.5) (61.4) TOTAL REVENUE 2, , % in EUR millin delta installatin technlgy (13%) material technlgy % climate technlgy % industrial technlgy % hlding / eliminatins TOTAL CAPEX % CAPEX expectatin FY2019 EUR millin 26 February 2019 Aalberts full year results

34 perating prfit (EBITA) & EBITA margin in EUR millin delta installatin technlgy (3%) material technlgy % climate technlgy % industrial technlgy % hlding / eliminatins * (0.4) (17.2) TOTAL EBITA % *includes hlding expenses, insurance incme, result n divestments, release f earn-ut prvisins and nn-recurring expenses in % f revenue delta installatin technlgy (0.2) material technlgy climate technlgy industrial technlgy TOTAL EBITA MARGIN EBITA margin imprved frm 12.5% t 13.3% 26 February 2019 Aalberts full year results

35 dividend prpsal dividend per rdinary share (in EUR) cash dividend f EUR 0.75 per share (2017: EUR 0.65) 15% increase February 2019 Aalberts full year results

36 review financial bjectives Y average rganic revenue grwth (in %) EBITA margin (in %) 13.3 > 14.0 return n capital emplyed (ROCE) (in %) > > bjective bjective bjective FCF cnversin rati (in %) leverage rati slvability (in %) > < > bjective bjective bjective n track t reach ur financial bjectives 26 February 2019 Aalberts full year results

37 6. utlk 2019

38 utlk 2019 lking ahead t 2019 we remain cnfident in the executin f the many grwth and innvatin initiatives and investment plans we will pursue ur strategy fcused acceleratin and bjectives drive ur prfitability further and cnvert strng peratinal executin int free cash flw 26 February

39 7. questins & answers aalberts.cm/investrs