Full Year Aalberts Industries more than doubles earnings per share

Transcription

1 Full Year 2010 Aalberts Industries more than doubles earnings per share

2 Today s agenda Headlines 2010 Profile Objectives Financial review Operational developments The Aalberts Industries share Outlook Questions and answers 2010FY 2

3 Headlines 2010 Revenue 20% to EUR 1,683 million Organic revenue growth 12% (at constant exchange rates) Added-value margin from 58.9% to 59.7% Operating profit (EBITA) 82% to EUR million Net profit 116% to EUR million Net profit per ordinary share 116% to EUR 1.10 Decrease in net debt; sharp reduction in leverage ratio to 2.3 Industrial Services very profitable Flow Control retains margins and strengthens market positions Acquisition Conbraco Industries in the US 2010FY 3

4 Profile Aalberts Industries N.V. Decentralised structure with significant operational management responsibilities Small holding; 13 employees Small team of group managers reporting to the holding INDUSTRIAL SERVICES 30% of total revenue Products, systems and processes for high grade industries FLOW CONTROL 70% of total revenue Products & systems to distribute and regulate liquid and gas flows 2010FY 4

5 Markets Industrial Services Products, systems & processes for high-grade industries Semiconductor Automotive Medical Aerospace Sustainable energy Metal & electro industry Precision engineering and other industries 2010FY 5

6 Markets Flow Control Products & systems to distribute and regulate liquid and gas flows New-build private residences Social housing Commercial buildings Renovation & Maintenance Construction Fire protection Energy efficiency District heating Irrigation Laboratory Beer & soft drink and other industries 2010FY 6

7 Objectives

8 Objectives Stable growth in earnings per share Continuous growth in revenue Organic growth and acquisitions Wide spread of results Lowering risk for shareholders Leading market positions in specific market segments Solid balance sheet ratios Total equity 30% of total assets Interest cover ratio 4 Gearing FY 8

9 Financial Review

10 Financial headlines Consolidation of Conbraco as from 1 July 2010 Benefit from the high operational leverage in Industrial Services Stable margins in Flow Control despite strong raw material price increases and acquisition of Conbraco Limited increase of working capital Lower net interest expense due to reduced leverage ratio Net debt decreased despite acquisition of Conbraco Higher effective tax rate due to country mix 2010FY 10

11 Income statement in EUR million FY 2010 FY 2009 Δ Revenue 1, , % Added value 1,004,2 827,6 21% Operating profit (EBITDA) % Depreciation (68.3) (69.9) (2%) Operating profit (EBITA) % Net interest expense (26.7) (32.3) (17%) Other net finance cost (0.8) (2.3) Taxes (33.1) (9.5) Minority interest (2.0) (0.5) Net profit before amortisation % 2010FY 11

12 Balance sheet in EUR million ASSETS FY 2010 FY 2009 Goodwill Other intangible fixed assets Property, plant and equipment Deferred income tax assets Non-current assets 1, ,098.1 Inventories Trade receivables Other current assets Cash and cash equivalents Current assets TOTAL ASSETS 1, , FY 12

13 Balance sheet in EUR million EQUITY AND LIABILITIES FY 2010 FY 2009 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 EQUITY AND LIABILITIES 1, , FY 13

14 Cash flow statement in EUR million FY 2010 FY 2009 Operating profit (EBITDA) Provisions & other movements - (2.8) Changes in inventories (41.6) 66.6 Changes in trade & other receivables (23.9) 27.3 Changes in trade & other payables 52.7 (19.4) Changes in working capital (12.8) 74.5 Cash flow from operations FY 14

15 Cash flow statement in EUR million FY 2010 FY 2009 Net finance cost paid (27.7) (38.2) Income taxes paid (22.3) (6.1) Acquisitions (72.3) (1.8) Capital expenditure (55.9) (46.8) Proceeds from borrowings Repayments of borrowings (118.8) (83.1) Dividend paid (6.7) (10.7) Other movements (2.2) (1.8) Net cash flow FY 15

16 Key figures in EUR million FY 2010 FY 2009 Δ EBITA as a % of revenue Effective tax rate in % Earnings per ordinary share (EUR x 1) % Average number of shares issued % Number of employees (x 1) 11,536 9,999 15% Capital expenditure % Interest cover (12 months-rolling) Total equity % Total equity as a % of total assets Leverage ratio (12 months-rolling) Net debt (6%) Net debt / Total equity (Gearing) FY 16

17 Operational developments

18 Spread of revenue in EUR million Germany Benelux United States France United Kingdom Eastern Europe Scandinavia Spain & Portugal Other European countries Other countries outside Europe FY 18

19 Spread of revenue per activity in 2010 in EUR million Germany Benelux United States France United Kingdom Eastern Europe Scandinavia Spain & Portugal Other European countries Other countries outside Europe Flow Control Industrial Services 2010FY 19

20 Industrial Services Very profitable

21 Industrial Services headlines Rapid recovery of profitability Organic revenue 27.9% (at constant exchange rates) EBITA margin to 12.5% Market conditions Semiconductor industry Automotive industry Precision engineering Medical segment Turbine industry Defense industry Energy industry Strong demand, also for new generation machines Strong recovery in almost all markets Healthy recovery Market positions expanded; new products launched Favourable developments Stable Stable 2010FY 21

22 Industrial Services geographical developments Area UK & Spain France Germany Poland Netherlands China United States Developments Heat treatment activities increases Reinforced sales organisations & strong recovery in several markets Strong growth in premium automotive segment & introduction of new products/processes Strong growth in volume of surface treatment for piston parts Strong growth, especially in semiconductor industry Successful in fine precision stamping parts for metal/electronics industry Strong growth in vacuum brazing and heat treatment of turbine parts; new parts for new jet engine, heat treated 2010FY 22

23 Industrial Services key figures in EUR million Δ Revenue % Operating profit (EBITDA) % EBITDA as a % of revenue Operating profit (EBITA) 58.1 (6.4) EBITA as a % of revenue 12.5 (1.8) Capital expenditure % Depreciation (7%) Average number of employees (x1) 3,911 3,847 2% Employees at year-end (x1) 4,026 3,706 9% 2010FY 23

24 Flow Control Retains margins and strengthens market positions

25 Flow Control headlines Market positions further strengthened and expanded Organic revenue 7.5% (at constant exchange rates) EBITA margin 10.0% Market developments Residential new-build Renovation & maintenance Commercial building Industrial Utility networks, district heating and floor heating Energy efficiency controls Fire protection Ship building Beer & soft drink Laboratory Maintained existing level Stable Challenging, compensation by increased market share Strong growth in US Positive developments Increasing possibilities Excellent start in Europe & US New contracts sprinkler systems Positive developments Strong development; more sales of systems 2010FY 25

26 Flow Control geographical developments -1- Area Netherlands Belgium Scandinavia Russia, Poland & Czech Germany France Developments New products & increased sales in floor heating, plastic & metal piping systems and balancing valves Utility market developed favourably Market developed well Hesitant start; improved mid2010 Positions in utility markets strengthened First orders for new composite piping systems Positive trend since mid 2010 Especially district heating in Russia & Poland Healthy growth through cross selling group products Reinforced sales organisation; increased sales of group products Various product developments 2010FY 26

27 Flow Control geographical developments -2- Area United Kingdom Spain & Portugal Middle East United States Developments Housing and commercial market remained low Renovation & maintenance market was stable Bad market circumstances continued Export growth in new sanitary products Strong growth due to many new (group) products Market positions expanded further Joint sales & distribution approach; focused sales force per market segment: -Residential/mechanical -Industrial -Irrigation/golf, pool & spa -Retail -Fire protection Strong growth industrial segment Acquisition Conbraco positive impulse 2010FY 27

28 Flow Control key figures in EUR million 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) 7,115 6,376 12% Employees at year-end (x1) 7,494 6,276 19% 2010FY 28

29 The Aalberts Industries share Upward trend

30 The Aalberts Industries share in EUR million Average trading volume x EUR 1M Closing share price x EUR Earnings per share x EUR Price / Earnings Shares in issue x million Dividend x EUR Market capitalisation x EUR 1M 1,683 1, ,387 1, FY 30

31 Share price movements in EUR 2010FY 31

32 Outlook Further improvement of earnings per share (barring unforeseen circumstances)

33 Outlook A wider recovery in various markets, an active market approach and the increased order position will lead to further improvement of the earnings per share in barring unforeseen circumstances. Solid balance sheet ratios remain maintained due to the continuing large amount of attention given to profitability and the control of working capital and costs. 2010FY 33

34 Questions & Answers