One Ballast Nedam, one company with integrated operations

Transcription

1 Highlights 2011 One Ballast Nedam, one company with integrated operations Ballast Nedam has withstood the challenging market conditions well. Our order book remained well filled, we achieved a good operating profit and a stable revenue. We adjusted the Ballast Nedam organization in 2011 in line with Ballast Nedam s strategic pursuit of integrated projects and our focus on five niche markets. Operating profit rises to 19 million (2010: 18 million) Profit for the period up: 9 million (2010: 7 million) Revenue stable at 1.4 billion (2010: 1.4 billion) Better-filled order book of 1.9 billion (2010: 1.8 billion) Higher proposed dividend for 2011 of 0.47 per share (for 2010: 0.36 per share) Downward value adjustment of land positions and goodwill of 10 million (2010: 4 million) Financing position improved to 11 million debt (2010: 56 million debt) Considerably lower non-recourse loans of 34 million (2010: 175 million) Loan facilities extended to 2017 Restructuring operations in 2011 on schedule Forecast for 2012 of approximately equal results in deteriorating markets Relative CO 2 reduction of 12% Injury frequency improved from 10.7 for 2010 to 6.5 Proposed new Supervisory Board member, Mr L.W.A.M. van Doorne New organization structure in line with strategy In 2011 we brought Ballast Nedam s organization further into line with the strategy of focusing on integrated projects and the niche markets of industrial construction, hospitals, offshore wind turbines, secondary raw materials and alternative fuels. Ballast Nedam is assuming a more prominent role in project development and longer-term involvement in management, maintenance and operation. Our range of products and services is shifting towards specific product-market combinations with greater added value. Our integrated approach helps raise environmental quality and lower life-cycle costs. Corporate governance changes There have been changes in the allocation of duties within the Board of Management: Mr Romeo Malizia has been reappointed Chief Operating Officer (COO) and Mr Peter van Zwieten has been appointed Chief Financial Officer (CFO). The Supervisory Board has resolved to increase the number of Supervisory Board members in 2012 to five. Operational control improved Ballast Nedam s former divisional structure has made way for six clusters based on processes and products. The clusters are managed by six cluster directors. Together with the Board of Management, they constitute the Ballast Nedam Concern Council. All supporting services have now been combined. Market position in the Noord-Holland region bolstered by the acquisition of Heddes With the acquisition of Heddes Ballast Nedam inherited sixteen projects with a volume of approximately 100 million euros, plus small-scale building operations. Heddes Bouw & Ontwikkeling s head office is in Hoorn, with approximately one-hundred and thirty employees. Market position stronger on the growing PPP market The Benelux Secondary PPP Fund I has taken over the equity interest of three operational public-private partnership (PPP) projects from Ballast Nedam. We thereby released resources for investment in new PPP projects and strengthened our balance sheet. Ballast Nedam has a 20 per cent stake in this fund, and DG Infra 80 per cent. 4

2 Strong position on the growing European market for offshore wind farms Ballast Nedam signed a contract worth approximately 250 million euros with the wpd group of Germany for the design, delivery and installation of eighty foundations for the German Butendiek offshore wind farm. This is an excellent outcome of our focus on this niche market. Production capacity adjustment at prefabricated concrete plant The workforce at Waco Lingen Beton in Bergen op Zoom has been reduced by one hundred. This is some 25 per cent of the total number of jobs in the four prefabricated concrete companies. Waco Lingen Beton is now focusing on a selected number of civil engineering products. Production capacity adjustment in the Infrastructure regional companies This adjustment affects 115 jobs. In early 2012 we will adjust the capacity of each regional company in line with market conditions. Later in 2012 we will continue to bring the organization structure of the regional activities into line with our strategy. Kicking Horse Mountain Resort in Canada sold Ballast Nedam has strengthened the balance sheet through the sale of the four-season Kicking Horse Mountain Resort to Resorts of the Canadian Rockies Inc.. Ballast Nedam reaches the highest rung on the CO 2 performance ladder 2.0 Alongside Prorail, the Directorate-General for Public Works and Water Management (RWS) and a fast-growing number of municipalities are using the CO 2 -performance ladder 2.0 in their procurement. The ladder is now operated by the Stichting Klimaatvriendelijk Aanbesteden en Ondernemen and is the standard sustainable procurement tool. Ballast Nedam held the first Ballast Nedam Innovation Day and innovation agenda Some 400 stakeholders attended the Innovation Day, at which Ballast Nedam gave the latest news about numerous innovations. A panel of experts led by Matthijs van Nieuwkerk debated the importance of innovation and aspects of sustainability. Ballast Nedam introduced the concept of innovation panels at the event. The aim is to join forces with stakeholders in 2012 on sustainable innovation. Ballast Nedam has refined its policy for innovation management, corporate social responsibility and communication based on an external stakeholders survey Ballast Nedam builds the first transportable hydrogen station Ballast Nedam won the contract for building a transportable production and filling station for hydrogen: the ultimate sustainable fuel. Production plant in Weert for iqwoning homes The innovative iqwoning industrial method of building under controlled conditions yields many benefits: constant high quality, extremely short construction time, and an excellent price-quality ratio. 5

3 Ten-year summary Revenue and profit Revenue the Netherlands international Order book Earnings before interest, taxes, depreciation and amortization (EBITDA) Impairment (2) (1) 0 (0) Depreciation (25) (25) (23) (24) Earnings before interest, taxes and amortization (EBITA) Amortization (1) (1) (2) (1) Earnings before interest and taxes (EBIT) Profit before income tax Profit for the period before amortization Profit for the period Investments Investments Disposals Net investments Balance sheet data Non-current assets Current assets Assets Current liabilities (625) (598) (644) (660) Capital structure Capital employed Shareholders equity Interest-bearing non-current liabilities Net cash Net financing position (45) (231) (92) (41) Ratios Earings before interest and taxes / revenue 1% 1% 1% 3% Profit for the period / revenue 1% 1% 0% 2% Profit for the period / average shareholders equity 5% 4% 4% 14% Shareholders equity / assets 18% 15% 16% 17% Average number of employees Shares Number of ordinary shares (x 1 000) Number of ordinary shares issued (x 1 000) Market capitalization at year-end Dividend paid Per average share in issue of 6 nominal value Shareholders equity Dividend paid Profit for the period

4 NL GAAP (70) 0-0 (8) (7) (6) (20) (19) (18) (19) (17) (23) (46) (116) (1) (2) (2) (1) (2) (4) (6) (122) (6) (135) (137) (143) (35) (0) (3) (7) (151) (590) (555) (644) (586) (327) (362) (484) (11) (2) (16) (63) % 3% 3% 3% 2% 0% -5% 2% 3% 2% 1% 1% 3% -6% 16% 31% 18% 14% 8% 58% -106% 19% 20% 15% 12% 20% 18% 9% (14.46) 7

5 Financial results Revenue Infrastructure Building & Development Specialized companies Supplies Other (267) (232) omzet Total werd 91% in Nederland gerealiseerd Revenue increased by 2% from million to million. Infrastructure s revenue decreased to 523 million. Partly because of the acquisition of Heddes early last year, Building & Development s revenue was almost unchanged at 642 million. The revenue of both Specialized Companies and Supplies rose to 252 million and 232 million, respectively. The 15% rise in internal revenue in 2011 is a favourable development that confirms our steadily growing capability in implementing integrated projects, and demonstrates the fruits of our organizational restructuring. Of the revenue, 91% was generated in the Netherlands. EBIT Infrastructure Building & Development 8 4 Specialized companies - 2 Supplies Other (7) (8) Total The operating profit rose from 18 million in 2010 to 19 million. Profits rose at Infrastructure and Building & Development, with good contributions mainly from the larger projects and the sale of the PPP projects. The total operating profit of the segments was equal to that in The Other result consisted mainly of holding company costs. Margin Infrastructure 2.7% 1.8% Building & Development 1.2% 0.7% Specialized companies 0.0% 0.9% Supplies 1.7% 5.0% Total 1.4% 1.4% The overall margin was unchanged at 1.4% on a fractionally higher revenue. Both Infrastructure and Building & Development succeeded in improving their margins. Supplies margin went down because of losses in the prefabricated concrete companies. 8

6 Profit for the period EBIT Net finance income and expense (7) (7) Profit before income tax Income tax expense (3) (4) Profit for the period 9 7 The financing item was unchanged relative to 2010 at 7 million. Profit before income tax was 12 million, which was up by 1 million. With the help of a lower tax burden, the profit for the period rose by 2 million to 9 million. Last year s higher tax burden arose because a smaller portion of the results could be settled within the fiscal unity. Order book Infrastructure Building & Development Specialized companies Supplies Other (38) (27) Total The order book grew in the second half of 2011 by 234 million to million, which was 109 million higher than at year-end Of these orders, approximately 1 billion will be executed in The quality, composition and larger size of the total order book put us in a relatively strong starting position in a market that continues to deteriorate. It is therefore possible for us to continue to tender in a disciplined manner, and if necessary to adjust capacity progressively in line with market conditions, as occurred in 2011 with property development, the prefabricated concrete companies and the regional companies. Equity The capital ratio improved from 20% at year-end 2010 to 21%. This is the capital ratio as calculated in accordance with the method that accounts for joint ventures as an interest at the share in the assets (i.e. the equity method). The capital ratio as calculated in accordance with the proportionate consolidation method that is currently allowed under IFRS and applied for the joint ventures, such as the PPP projects, improved strongly from 15% at year-end 2010 to 18%. This increase is predominantly attributable to the sale of three PPP projects, which are largely financed by loans that provide no opportunity of recourse on Ballast Nedam. Ballast Nedam s shareholders equity increased by 10 million to 171 million. This rise comprised the profit for the period of 9 million, the dividend distribution of 4 million, an increase of 4 million in the hedging reserve for interest rate derivatives for the PPP projects, and foreign currency translation gains of 1 million. Total assets went down by 143 million to 941 million, in particular because of the sale of PPP projects and the sale of Kicking Horse Mountain Resort. Another favourable development was the lower working capital requirement because of the decrease in inventories. Capital employed therefore decreased by 196 million to 229 million. 9

7 Cash flows Cash flow for 2011 improved considerably and was 26 million positive compared with a negative cash flow for 2010 of 50 million. The operating cash flow of 72 million was positive, compared with a negative operating cash flow of 39 million for 2010, because of a better work in progress position and lower inventories of unsold stock. The cash flow from investing activities was 52 million negative compared with 92 million negative for This consisted of 75 million of investments, 6 million of disposals, 5 million for acquisition of operations, 2 million for a participation and 23 million for the sale of the PPP projects and the Canadian resort. Investments included 42 million of property, plant and equipment, 6 million of intangible assets and 27 million of financial assets. Most of the financial assets were concerned with the PPP receivables for the A15 Maasvlakte Vaanplein project. The 37 million net investment in property, plant and equipment exceeded the 25 million of depreciation. The positive cash flow from financing activities of 5 million consisted of the net 9 million proceeds from long-term loans and a dividend payout of 4 million. Financing position Cash and cash equivalents Bank overdrafts (11) (20) Net cash Recourse loans (98) (117) Financing position (11) (57) Non-recourse loans (34) (175) Financing position including non-recourse (45) (231) The financing position improved by 45 million from 56 million debt at year-end 2010 to a debt position of 11 million. The sales of the PPP interests and the Canadian resort contributed to this improvement. The financing position including the non-recourse loans (which include the PPP loans) improved even more strongly, by 186 million from a debt position of 231 million at year-end 2010 to 45 million. Net cash rose by 26 million to 87 million. The prepayments on projects remained approximately unchanged at 92 million. The financing requirement is always higher in the course of the year than at year-end. Loans PPP loans Land bank financing Business loans Financial leases 10 9 Other loans Recourse Non-recourse Current loans 11 7 Long-term loans

8 There will be no need to refinance the long-term loans in the coming years, since in March 2012 the general loan of 50 million was extended by 3 years to April The interest rate was unchanged at 5.4% and mortgages were taken out on a number of properties in use by Ballast Nedam as security for the loan. The other large loan of 33 million is mainly for financing several land positions in a separate company. This loan matures in October 2015 and the interest rate is Euribor plus a margin. The land positions concerned were mortgaged as security for the loan. There are no financial covenants in the conditions of these loans. The other long-term loans of 49 million consist of 25 million of PPP loans, for which the interest rate is fixed by means of derivatives. Based on the current PPP project portfolio, these PPP loans will rise to approximately 70 million at year-end There is no opportunity of recourse on Ballast Nedam for 34 million of the 132 million of long-term loans. Town Hall Nieuwegein 11

9 The share and dividend proposal This section provides details of Ballast Nedam s share and how the share price has moved in the reporting year. Shares and stock exchange listing On 31 December 2011 Ballast Nedam had in issue out of the 10 million issued shares. On this date we had repurchased own shares and depositary receipts for shares, which is slightly more than the in We repurchased of our own shares and depositary receipts for shares in the course of The repurchased shares and depositary receipts for shares are needed to cover the liabilities arising from the current management option scheme. The Ballast Nedam Administration Office issues depositary receipts for shares and administers the underlying shares. The depositary receipts are fully exchangeable. At yearend 2011, depositary receipts had been granted for per cent of the capital in issue. Ballast Nedam depositary receipts for shares are listed on NYSE Euronext Amsterdam. Ballast Nedam has been included in Euronext s Amsterdam Small Cap Index (AScX) since ABN AMRO Bank, ING Bank and Kempen & Co act as liquidity providers for Ballast Nedam shares. Price movements The Ballast Nedam share price quoted at the end of 2010 on NYSE Euronext was euros. The year 2011 ended with a 7% lower rate of The Amsterdam Small Cap Index (AScX), where the Ballast Nedam shares are included, declined by 24% in The highest closing price of was reached on 30 March The lowest closing price of 9.78 was quoted on 22 November Ballast Nedam AScX Trading volume The liquidity of Ballast Nedam shares declined in An average of shares were traded per trading day in This is a decrease from 2010 when the average was shares per trading day. Other information per average share in issue of 6 nominal value Shareholders equity Dividend paid Profit for the period The average outstanding equity per share amounted to The average net income per share rose from 0.73 in 2010 to

10 Dividend distribution The underlying principle of our dividend policy is that 50 per cent of the profit for the period is placed at the disposal of shareholders for distribution as dividend. The Board of Management, with the approval of the Supervisory Board, proposes to distribute a cash dividend for 2011 of 0.47 per ordinary share in issue. In 2011 Ballast Nedam paid a dividend of 0.36 for In 2010 a dividend of 0.31 was paid for Shareholders with an interest of 5 per cent or more As at 29 February 2012 the following organizations had reported to the Authority for the Financial Markets (AFM) that they held shares or depositary receipts for shares in Ballast Nedam representing an interest of 5 per cent or more, pursuant to Section 5.3 of the Financial Supervision Act. Navitas B.V. Hurks Groep B.V. Delta Lloyd Levensverzekering N.V. Delta Deelnemingen Fonds N.V. Menor Investments B.V. Bibiana Beheer B.V. Via Finis Invest B.V. (formerly De Kolk Beheer B.V.) Other 15.4% 20.0% 7.2% 5.8% 5.1% 5.0% 5.0% 41.5% General Meeting of Shareholders The Annual General Meeting of Shareholders of Ballast Nedam will be held on 16 May 2012 at the Beatrix Theatre (Main entrance), Jaarbeursplein 6a, Utrecht. The meeting will commence at 1.30 pm. Prior to the meeting, the Ballast Nedam Administration Office will convene a meeting at noon of holders of depositary receipts for shares. The agendas for these meetings will be available to interested parties on request from the company, or can be downloaded from the Ballast Nedam website. Financial calendar Publication of annual results Friday 9 March Registration date for the Annual General Meeting for shareholders Wednesday 18 April First quarterly report 2012 Wednesday 25 April General Meeting of Shareholders Wednesday 16 May Quotation ex-dividend Friday 18 May Registration date for dividend (after closing stock market) Tuesday 22 May Availability of dividend Tuesday 29 May Publication of interim results Friday 13 July Third quarterly report 2012 Friday 26 October 2012 Investor Relations Investor Relations focuses on the interests of the shareholders and the permanent interest of the financial market in Ballast Nedam. Investor Relations aims to inform the focus groups transparentely and honestly about the Ballast Nedam strategy, Ballast Nedam s business model, our distinctive character and the financial position of the company. We do this by providing all relevant information available, through the annual report, the annual and interim results presentation, 1st and 3rd quarterly reports, press releases, presentations to (potential) investors and analysts and via our website 13