Full Year Revenue more than EUR 2 billion and 5% higher operating profit (EBITA)

Transcription

1 Full Year 2012 Revenue more than EUR 2 billion and 5% higher operating profit (EBITA)

2 Today s agenda Strategy 2012 Headlines Financial review Operational developments Industrial Services Flow Control Objectives & Outlook Questions & Answers FY2012 2

3 Strategy

4 Description of businesses Building Installations Europe Building Installations North America Climate Control Flow Control Industrial Oil & Gas Industrial Services Regulation and distribution of (warm) water and gas in heating, cooling, water and gas systems Regulation and distribution of (warm) water and gas in heating, cooling, water and gas systems Complete systems from source to emission to improve climate control, energy efficiency and comfort for heating & cooling systems Regulation, control and distribution of fluids and gas systems in more severe conditions Supply of highgrade tailor made products, systems and processes for specific market segments FY2012 4

5 Main markets Building Installations Europe Building Installations North America Climate Control Flow Control Industrial Oil & Gas Industrial Services Commercial/ residential new build Renovation & Repair Sprinkler Utility Commercial/ residential new build Renovation & Repair Fire protection Retail Irrigation / Pool & spa / Golf Commercial and residential buildings New & renovation Shipbuilding Industrial buildings Pulp & paper Food & beverage Power Marine (Petro)chemical Mining Oil & gas production transmission and distribution LNG Shale gas/oil Semiconductor Automotive Oil & gas Turbine & aerospace Machine building Metal & electronics FY2012 5

6 Market approach of business Building Installations Europe Building Installations North America Climate Control Flow Control Industrial Oil & Gas Industrial Services Market segmentation Installers, contractors & wholesalers Using local sales platforms Market segmentation Installers, contractors & wholesalers Using local sales platform Architects, specifyers & contractors Specification system sales Worldwide project tracking Market segmentation (Global) key accounts Market segmentation Local customers (Global) key accounts FY2012 6

7 Aalberts Industries - Linked Building Installations Europe Innovation Portfolio Flow Control Industrial Oil & Gas Portfolio (Material) Technology development Industrial Services Key account management Best practices Portfolio Projects Product development Supply Climate Control Projects Portfolio Building Installations North America Cross-selling FY2012 7

8 Growth drivers

9 Building Installations Europe Growth drivers 1. Installation efficiency and know-how Metal and plastic piping systems for: a safer, quicker, easier and user friendly installation an optimal connection of all kind of pipe materials Combined with specified control valves 2. Consolidation of contractors and wholesalers Complete offering of connect & control systems % of total revenue Leverage portfolio, using strong local brand name, distribution and service Driving of international product brands, worldwide 31% FY2012 9

10 Project tracking: Crystal Peaks Shopping Mall & Retail Park Sheffield Fit out of a new Marks & Spencer retail store MARKET SEGMENT Commercial PRODUCT LINES INSTALLED SERVICES Heating Potable water MARKET APPROACH Contractor (Simons Group) Building Installations Europe Installation efficiency FY

11 Project tracking: Quarry Gardens Portadown 26 Flats, replacement of Economy 7 heating system MARKET SEGMENT Residential PRODUCT LINES INSTALLED SERVICES Heating MARKET APPROACH Contractor (Fusion Heating) Building Installations Europe Installation efficiency FY

12 Building Installations North America % of total revenue Growth drivers 1. Installation efficiency and know-how Metal and plastic piping systems for: A safer, quicker, easier and user friendly installation An optimal connection of all kind of pipe materials Combined with specified control valves 2. Consolidation of contractors and wholesalers Complete offering of connect & control systems Leverage portfolio, using strong local brand name, distribution and service Driving of international product brands, worldwide 14% FY

13 Climate Control Growth drivers 1. Energy efficiency, saving & comfort of heating & cooling systems Specification and engineering of complete systems from source to emission using international product brands Making use of local regulation and requirements per country 2. Combining with metal and plastic piping systems to complete the climate control system (one specification/offering) % of total revenue 3. Consolidation of contractors & specifyers Complete solution for climate control Lesser suppliers per project 13% FY

14 Project tracking: Naturparkhaus Waltersdorf Renovation of 300 m 2 half-timbered house (1409) MARKET SEGMENT Commercial PRODUCT LINES INSTALLED SERVICES Heat distribution MARKET APPROACH Contractor Climate Control From source to emission FY

15 Project tracking: Botanic Garden Aarhus Renovation & new build of greenhouses (5.000 m 2 ) MARKET SEGMENT Residential PRODUCT LINES INSTALLED SERVICES Heat distribution Drinking water MARKET APPROACH Contractor Climate Control From source to emission FY

16 Project tracking: Quai Ste Hélène Saint André 160 low-energy consumption apartments MARKET SEGMENT Residential PRODUCT LINES INSTALLED SERVICES Heat distribution Drinking water MARKET APPROACH Contractor Climate Control From source to emission FY

17 Flow Control Industrial Oil & Gas % of total revenue Growth drivers 1. More severe conditions in end user markets Higher pressures lower and/or higher temperatures Temperature and pressure control Process system control 2. Consolidation of supply Complete offering of connect & control systems 3. Globalisation of key accounts Supply chain, manufacturing in every part of the world Global standards, local service 4. Development of new resources LNG / Shale gas / Shale oil 13% FY

18 Industrial Services Growth drivers 1. Continuous innovation of (local) tailor made solutions Development and engineering of new products Improvement of material usage / technology (Sub)assembly and testing of modules 2. Combined technologies for strategic partners Optimising supply chain, contacts for customers Stable (and strong financial) partnership with same quality Key account management 3. Globalisation of key accounts Supply chain, manufacturing in every part of the world Global standards, local service % of total revenue 29% FY

19 2012 Headlines

20 Headlines 2012 Revenue 5% to EUR 2,025 million Operating profit (EBITA) 5% to EUR million Net profit before amortisation 4% to EUR million Earnings per share before amortisation 3% to EUR 1.40 Cash flow from operations 9% to EUR million Capital expenditure 23% to EUR million Industrial Services: revenue 3% and good profitability maintained Flow Control: revenue 5% and operating profit (EBITA) 8% FY

21 Financial headlines

22 Financial headlines Added-value margin maintained at 59.1% Lower net interest expense due to reduced leverage ratio and lower interest rates Higher effective tax rate of 25.2% compared to 2011 (21.6%) Continuous focus on Return on Capital Employed Net working capital slightly to 18.3% of revenue (17.3%) Balance sheet ratios improved further (leverage ratio ) No refinancing need due to repayments of bank loans from free cash flow: 2013: EUR 124 million 2014: EUR 105 million 2015: EUR 76 million After 2015: EUR 64 million USD currency 8.2% average rate and 1.9% end of December GBP currency 6.9% average rate and 2.4% end of December FY

23 Key figures in graphs 1 Revenue (EURm) 5% EBITA 5% Net profit (EURm) 4% EPS (EUR) 3% ,51 1,02 1,10 1,40 1,36 FY

24 Key figures in graphs 2 Cash flow (EURm) 6% Working capital (EURm) 7% Capex (EURm) 23% Leverage ratio ,8 2,0 2,3 2,9 3,4 FY

25 Income statement in EUR million FY 2012 FY 2011 Δ Revenue 2, , % Added-value 1, , % Operating profit (EBITDA) % Depreciation (77.0) (70.5) 9% Operating profit (EBITA) % Net interest expense (20.5) (23.0) (11%) Other net finance cost 0.3 (3.6) - Taxes (45.9) (36.3) 26% Non-controlling interest (0.9) (0.2) - Net profit before amortisation % FY

26 Balance sheet ASSETS in EUR million Goodwill Other intangible assets Property, plant and equipment Deferred income tax assets Non-current assets 1, ,283.7 Inventories Trade receivables Other current assets Cash and cash equivalents Current assets TOTAL ASSETS 1, ,932.0 FY

27 Balance sheet EQUITY AND LIABILITIES in EUR million Total equity Non-current borrowings Employee benefit plans Deferred income tax liabilities Other provisions and long term liabilities Non-current liabilities Current borrowings Current portion of non-current borrowings Trade and other payables Other current liabilities Current liabilities TOTAL EQUITY AND LIABILITIES 1, ,932.0 FY

28 Cash flow statement in EUR million FY 2012 FY 2011 Operating profit (EBITDA) Provisions & other movements (1.4) (1.5) Changes in inventories (5.4) (20.1) Changes in trade & other receivables (6.6) 20.3 Changes in trade & other payables (11.3) (28.1) Changes in working capital (23.3) (27.9) Cash flow from operations FY

29 Cash flow statement in EUR million FY 2012 FY 2011 Net finance cost paid (23.1) (25.3) Income taxes paid (45.9) (26.8) Acquisitions (incl. earn-outs) (18.3) (110.4) Capital expenditure (100.4) (77.9) Proceeds from borrowings Repayments of borrowings (148.6) (133.8) Dividend paid (19.9) (8.5) Other movements (3.0) (3.5) Net cash flow (67.7) (33.9) FY

30 Key figures in EUR million FY 2011 FY 2010 Δ EBITA as a % of revenue Effective tax rate in % Earnings per share (EUR x 1) % Average number of shares issued % Number of employees (x 1) 12,048 12,282 Capital expenditure % Interest cover (12 months-rolling) Total equity % Total equity as a % of total assets Leverage ratio (12 months-rolling) Net debt (11%) Net debt / Total equity (Gearing) FY

31 Spread of revenue United States 389 Germany 358 Benelux 282 Eastern Europe France United Kingdom Scandinavia Spain & Portugal EURm Middle East 40 Other European countries 101 Other countries outside Europe FY

32 Spread of revenue per activity in 2012 United States Germany Benelux countries France Eastern Europe United Kingdom Scandinavia Spain & Portugal Middle East Other European countries Other countries outside Europe Flow Control Industrial Services FY

33 Operational developments Industrial Services

34 Industrial Services market developments Market Developments Semiconductor LED Semiconductor good 1H2012 Weakening 2H2012 Flattening partly offset by new technologies, new customers and engineering Activities for LED production lines remained at a low level Automotive Turbine & aerospace Oil & gas Machine building Metal & electronics Stable, high level in Germany France on lower level Investing in new product/process developments and sales Strong growth, particularly in US, France and UK Investments made/planned in these countries Sharp increase in orders and project requests Significant expansion of sales and engineering capacity Continued improvement of key account management Stable, good level Strong market position in Germany Declined of demand in France, partly offset by product developments Good developments in China and Poland FY

35 Industrial Services key figures in EUR million FY 2011 FY 2010 Δ Revenue % Operating profit (EBITDA) % EBITDA as a % of revenue Operating profit (EBITA) EBITA as a % of revenue Capital expenditure % Depreciation % Average number of employees (x1) 4,756 4,463 7% Employees at year-end (x1) 4,585 4,701 (2%) FY

36 Industrial Services key figures Revenue (EURm) 3% EBITA (EURm) = 3.7% organic Capex (EURm) 37% EBITA margin ,8 8,2 12,5 13,4 13,8 FY

37 Industrial Services Oil & Gas Parts for drilling equipment Stator tubes Stator Instrumentation bodies Knee joint (part of steering Thermal FY

38 Operational developments Flow Control

39 Flow Control market developments Market Building Installations Europe Building Installations North America Climate Control Industry Oil & Gas Developments New build continued to be difficult Renovation, repair and maintenance reasonably stable Focus on fast growing product lines Benefit from joint marketing and sales approach Increase in sales of new houses, building applications and renovations Projects in commercial building declined somewhat Growth in retail activities (plastic and metal regulator valves) Efforts concentrated on complete energy-efficient systems for heating & cooling (residential/commercial) = optimum building comfort Marketing & sales, training & education were strengthened Position strengthened in Europe, North America and Asia Upward trend in power stations, pulp & paper, (petro)chemical and food industry Substantial growth as a result of expansion of portfolio BSM Valves to contribute in strengthening market position FY

40 Flow Control key figures in EUR million FY 2012 FY 2011 Δ Revenue 1, , % Operating profit (EBITDA) % EBITDA as a % of revenue Operating profit (EBITA) % EBITA as a % of revenue Capital expenditure % Depreciation % Average number of employees (x1) 7,625 7,767 (2%) Employees at year-end (x1) 7,445 7,563 (2%) FY

41 Flow Control key figures Revenue (EURm) 5% EBITA (EURm) 8% 2.1% organic Capex (EUR) 9% EBITA margin ,8 9,5 10,0 10,1 11,3 FY

42 Flow Control Climate Control From generator to emission FY

43 Flow Control Industrial Oil & Gas Valves, actuation, control systems FY

44 Objectives & Outlook

45 Objectives unchanged Organic Acquisitions CONTINUOUS GROWTH IN REVENUE WIDE SPREAD OF RESULTS Lowering risks for shareholders STABLE GROWTH OF EARNINGS PER SHARE In specific market segments LEADING MARKET POSITIONS SOLID BALANCE SHEET RATIOS Equity 30% of total assets Interest cover 4 Leverage ratio 2.5 Gearing 1.5 FY

46 Outlook In 2013 Aalberts Industries will continue strengthening the technology and product portfolio and the marketing and sales force; expand the engineering capacity, increase the production efficiency; and widen the position in specific market segments. The management is sharply focused on achieving the many plans for profitable growth and higher operational margins; complemented by acquisitions that add value and strengthen the market positions; while making the best possible use of the solid balance sheet ratios. Barring unforeseen circumstances The expectation is that this will enable revenue, profit and capital expenditure to further increase in 2013 FY

47 Questions & Answers