2016 FULL YEAR RESULTS

Transcription

1 2016 FULL YEAR RESULTS WIM PELSMA (CEO) JOHN EIJGENDAAL (CFO) OLIVER JÄGER (Executive Directr) UTRECHT, 28 FEBRUARY 2017

2 AGENDA STRATEGY & OBJECTIVES OPERATIONAL REVIEW FINANCIAL REVIEW OUTLOOK QUESTIONS & ANSWERS

3 AALBERTS INDUSTRIES LINKED STRATEGY LEADING NICHE POSITIONS Businesses End markets Cre technlgies Custmer added value Divest nn-cre activities FOCUS OUR APPROACH IMPROVE DEFINED MARKET POSITIONS CORE TECHNOLOGIES Grwth perspective Strng brand names Innvatin radmaps Selective acquisitins Cmbined ffering OPERATIONAL EXCELLENCE Pricing ptimisatin Technlgy cmpetence centres Make r buy decisins Manufacturing efficiency Cnslidatin f lcatins Supply Chain imprvements IMPROVE PROFITABILITY CONTINUOUSLY USE GROUP STRENGTHS EXCHANGE BEST PRACTICES Manufacturing technlgy Sales & distributin channels Innvatins & investments Wrking methds & knw-hw Glbal ftprint KPI tls Key Accunt Management HR Talent Develpment 28 February 2017 Aalberts Industries N.V. Full Year results

4 OBJECTIVES Wrldwide leading niche technlgy-end market psitins Creating sustainable prfitable grwth Generating highadded-value margins Cnverting strng peratinal executin int free cash flw Achieve fllwing financial ratis in the defined businesses with strng brand names serving a variety f glbal end markets. in earnings per share with a gd spread in businesses, technlgies, end markets and gegraphical regins with gd grwth ptential. by driving ur Operatinal Excellence prgramme, prviding excellent services clse t ur custmers and cntinuusly driving innvatins. t reinvest in selected businesses and technlgies, with disciplined allcatin f capital, t accelerate rganic grwth, innvatins and acquisitins. Slvability > 40% Leverage rati < 2.5 EBITA margin > 12% FCF cnversin rati > 70% ROCE > 16% 28 February 2017 Aalberts Industries N.V. Full Year results

5 THE AALBERTS WAY WINNING WITH PEOPLE BE AN ENTREPRENEUR TAKE OWNERSHIP GO FOR EXCELLENCE SHARE AND LEARN ACT WITH INTEGRITY We explre and make dreams happen. We adapt and innvate with a clear fcus n ur custmers. We are respnsible fr achieving ur wn cmmitments. We are passinate, self-critical and persistent in everything we d. And we deliver results. We learn frm each ther by being prfessinal and pen-minded. We get better every day. We lead by example, act transparently and speak up. 28 February 2017 Aalberts Industries N.V. Full Year results

6 OUR BUSINESSES Building Installatins manufactures and markets cmplete cnnectin systems and valves t distribute and cntrl water r gas in heating, cling, (drinking) water, gas and sprinkler systems in residential, cmmercial and industrial buildings and industrial installatins. Climate Cntrl develps and manufactures cmplete hydrnic systems frm surce t emitter fr heating and cling systems. The systems are designed fr residential, cmmercial and industrial buildings, bth new build and renvatin. Industrial Cntrls develps, engineers and manufactures systems t regulate and cntrl gasses and liquids fr specific niche applicatins. These niche technlgy-end market cmbinatins are characterised by an increasing demand fr high value and custm made, engineered slutins. Industrial Services ffers a unique cmbinatin f advanced material technlgy knw-hw, highly specialised manufacturing expertise and a glbal netwrk f lcatins with excellent lcal knwledge and service. Strng fcus n installers, cntractrs and whlesalers. Strng fcus n building wners, specifying institutes and develpers. Strng fcus n engineers and (glbal) Key Accunts. Strng fcus n reginal custmers, engineers and (glbal) Key Accunts. 28 February 2017 Aalberts Industries N.V. Full Year results

7 FOCUS OUR APPROACH PER BUSINESS (in %) PER REGION (in %) PER END MARKET (in %) BUILDING INSTALLATIONS 41% CLIMATE CONTROL 19% INDUSTRIAL CONTROLS 15% INDUSTRIAL SERVICES 25% WESTERN & NORTHERN EUROPE 56% NORTH AMERICA 23% EASTERN EUROPE 9% SOUTHERN EUROPE 4% FAR EAST 3% MIDDLE EAST & AFRICA 2% OTHER 3% BUILDING INSTALLATIONS 52% AUTOMOTIVE 12% GENERAL INDUSTRIES 11% INDUSTRIAL INSTALLATIONS 5% MACHINE BUILD 5% WATER & GAS SUPPLY, IRRIGATION 4% POWER GENERATION, AEROSPACE 3% SEMICON & SCIENCE 3% DISTRICT ENERGY, OIL & GAS 3% BEVERAGE DISPENSE 2% 28 February 2017 Aalberts Industries N.V. Full Year results

8 OPERATIONAL REVIEW

9 OPERATIONAL REVIEW HIGHLIGHTS 2016 REVENUE (in EUR millin) 2,522 +2% EBITA (in EUR millin) % NET PROFIT (in EUR millin) % ADDED-VALUE (% f revenue) : 61.5 EBITA % (% f revenue) : 11.0 EARNINGS PER SHARE (in EUR) % Revenue +2% t EUR 2,522 millin (rganic +1.1%) Operating prfit (EBITA) +10% t EUR 298 millin; EBITA-margin 11.8% Net prfit befre amrtisatin +12% t EUR 212 millin; Earnings per share EUR 1.92 (+12%) Cash flw frm peratins +16% t EUR 383 millin; Free cash flw +12% t EUR 273 millin Return n Capital Emplyed (ROCE) imprved t 14.7% (2015: 14.3%) Many rganic grwth and innvatin initiatives; Capex EUR 106 millin (2015: EUR 96 millin) FREE CASH FLOW (in EUR millin) % RETURN ON CAPITAL EMPLOYED (ROCE IN %) : 14.3 Blt-n acquisitins: Ushers, Schreder, Tri-Went, Shurjint and as f 2017 Vin Service 28 February 2017 Aalberts Industries N.V. Full Year results

10 OUR CORE TECHNOLOGIES & BRANDS OUR END MARKETS EUROPE & MIDDLE EAST Building Installatins manufactures and markets cmplete cnnectin systems and valves t distribute and cntrl water r gas in heating, cling, (drinking) water, gas and sprinkler systems in residential, cmmercial and industrial buildings and industrial installatins. Building Installatins Industrial Installatins Water & Gas Supply, Irrigatin OUR ADDED VALUE Speed up installatin NORTH AMERICA Integrated piping system technlgy Valve technlgy Multilayer system technlgy Integrated piping system technlgy Valve technlgy Strng fcus n installers, cntractrs and whlesalers. Guarantee system quality Offer a ttal package and availability Plastic cnnectin system technlgy 10

11 OPERATIONAL REVIEW BUILDING INSTALLATIONS Eurpe & Middle East REVENUE (in EUR millin) 1, EBITA (in EUR millin) % EBITA % (% f revenue) : 10.5» realised gd rganic grwth and results: higher revenues; peratinal imprvements fcused market apprach n technlgies with grwth ptential» integrated piping system ffering resulted in several lnger term agreements with Key Accunts» further imprved marketing & sales, prject tracking, specificatin» imprved distributin ftprint will be implemented cming years» in the Netherlands manufacturing started f new patented cnnectin system in newly built facility» plastic multilayer systems activity very successful Nrth America CAPITAL EXPENDITURE (in EUR millin) %» residential and cmmercial end market perfrmed well» Industrial Installatins end market faced challenging circumstances» investments kept n high level; many nging prjects» imprved ur ffering f cnnectins, valves and plastic systems» business expansin with several majr Key Accunts» acquisitin TRI-WENT strengthened cling applicatins» acquisitin SHURJOINT specialised in grved systems Glbal innvatin radmap defined and aligned 28 February 2017 Aalberts Industries N.V. Full Year results

12 Climate Cntrl develps and manufactures cmplete hydrnic systems frm surce t emitter fr heating and cling systems. The systems are designed fr residential, cmmercial and industrial buildings, bth new build and renvatin. Strng fcus n building wners, specifying institutes and develpers. OUR END MARKETS Building Installatins OUR ADDED VALUE Engineered system slutin n custmer specificatin Realise energy efficiency and water saving thrugh imprved system perfrmance Prvide excellent lcal service and after sales OUR CORE TECHNOLOGIES & BRANDS Pressurisatin, safety & efficiency and distributin technlgy Cnnectin, cntrl & water treatment technlgy 12

13 OPERATIONAL REVIEW CLIMATE CONTROL lt f prgress, especially in realising many nging prjects REVENUE (in EUR millin) mst Eurpean and Nrth American cuntries gd grwth and results France and Spain market circumstances imprved several prduct lines did very well EBITA (in EUR millin) % EBITA % (% f revenue) : 10.3 cntinued t integrate and ptimise jint marketing & sales apprach based n cre technlgies several regins sales frce strengthened with experienced peple ptimisatin f ur prtfli reduced ur rganic grwth started new manufacturing site in Russia CAPITAL EXPENDITURE (in EUR millin) % transferred & cnslidated several manufacturing sites these prjects realised befre year end, increased csts during the year glbal innvatin radmap defined t drive further rganic grwth and priritise and align many prduct develpment and business pprtunities 28 February 2017 Aalberts Industries N.V. Full Year results

14 OUR END MARKETS District Energy, Oil & Gas Autmtive Semicn & Science Beverage Dispense Industrial Cntrls develps, engineers and manufactures systems t regulate and cntrl gasses and liquids fr specific niche applicatins. These niche technlgy-end market cmbinatins are characterised by an increasing demand fr high value and custm made, engineered slutins. Strng fcus n engineers and (glbal) Key Accunts. General Industries Pwer Generatin, Aerspace OUR ADDED VALUE Deliver the mst challenging custmer specificatins Guarantee an excellent glbal service capability Develp new technlgy slutins tgether with Key Accunts OUR CORE TECHNOLOGIES & BRANDS Engineered valve technlgy Fluid pwer technlgy Nan technlgy Dispense technlgy Precisin extrusin technlgy 14

15 OPERATIONAL REVIEW INDUSTRIAL CONTROLS engineered valves REVENUE (in EUR millin) %» District Energy, Oil & Gas end market was challenging» transferred & strengthened Nrth American peratin» Denmark investment new patented valve prduct line fluid pwer» did very well» newly frmed business management team, executing integratin plan and innvatin radmap» many pprtunities t fllw Key Accunts using glbal ftprint EBITA (in EUR millin) % EBITA % (% f revenue) : 12.5 dispense technlgy» gd year» business glbally aligned; many supply chain imprvements; innvatin radmap was made» acquisitins SCHROEDER and VIN SERVICE (2017) further cmplete ffering twards (glbal) Key Accunts nan technlgy CAPITAL EXPENDITURE (in EUR millin) » Semicn & Science end market started slw, imprved during the secnd half» aligned Key Accunt Management, using grup strengths precisin extrusin» excellent year in rganic grwth and results» mre fcus, business expansin Key Accunts» Aerspace strng grwth due t unique ffering» further investments t facilitate grwth divestment ne nn-cre activity 28 February 2017 Aalberts Industries N.V. Full Year results

16 OUR END MARKETS Autmtive Machine Build Pwer Generatin, Aerspace General Industries Industrial Services ffers a unique cmbinatin f advanced material technlgy knw-hw, highly specialised manufacturing expertise and a glbal netwrk f lcatins with excellent lcal knwledge and service. Strng fcus n reginal custmers, engineers and (glbal) Key Accunts. OUR ADDED VALUE Imprve material characteristics n custmer specificatin Offer a cmbinatin f highly specialised manufacturing expertise with imprved material characteristics Make use f ur glbal netwrk f lcatins with excellent lcal knwledge and service OUR CORE TECHNOLOGIES & BRANDS Surface treatment technlgy Heat treatment technlgy Precisin manufacturing technlgy Precisin stamping technlgy 16

17 OPERATIONAL REVIEW INDUSTRIAL SERVICES heat treatment REVENUE (in EUR millin) %» gd year despite lwer vlumes Machine Build, General Industries» Autmtive n gd level» Eastern Eurpe, Benelux, Nrth America gd grwth due t new prjects with Key Accunts» alignment heat treatment rganisatin and successful rebranding surface treatment EBITA (in EUR millin) % EBITA % (% f revenue) : 12.6» gd prgress ramp up greenfield sites China and Eastern Eurpe» many Operatinal Excellence prjects executed; mre csts lwering ur prfitability» Autmtive perfrmed at gd level» mre difficult circumstances: Machine Build Eurpe; Oil & Gas in Nrth America» Aerspace end market: realised gd grwth in the UK; signed lng term agreement with majr Key Accunt in France cmplex precisin stamping CAPITAL EXPENDITURE (in EUR millin) %» gd develpments in Eastern Eurpe and Asia» France we faced mre difficult market circumstances» started prgramme t develp mre prjects, niche applicatins precisin manufacturing, brazing and heat treatment» did very well, realised excellent grwth» invested in additinal capacity t facilitate grwth Key Accunts» market psitin strengthened with acquisitin USHERS enabling us t ffer a cmbinatin f technlgies t Key Accunts» Invested in new precisin manufacturing plant in Suth Carlina t facilitate grwth 28 February 2017 Aalberts Industries N.V. Full Year results

18 OPERATIONAL REVIEW SELECTIVE, DISCIPLINED ACQUISITION STRATEGY directly services the OEM in pwer generatin market with several high grade technlgies fr industrial gas turbines (IGT) strengthens market psitin in Pwer Generatin clse cperatin with ur brazing and heat treatment activity in Nrth America. invest in expansin, add cmplementary technlgies and expand existing Key Accunt partnerships t Eurpe and Asia knwn fr its strng innvatin and patented prducts like bar dispensers, nn-carbnated pst-mix and beverage dispensers, carbnatrs & chillers strengthens psitin in Beverage Dispense market prduct lines cmplementary t ur existing dispensing technlgies Taprite & DSI, enabling us t ffer an even mre cmplete dispensing system t glbal custmers leader in fabricated tubular prducts used in varius industrial applicatins like air-cnditining, refrigeratin, heating, electrnics, plumbing, marine, ventilatin. strengthens market psitin in Industrial Installatins clse cperatin with ur exisisting fabricated tubular prducts Elkhart in Nrth America Expand OEM business in several industries, including autmtive and air cnditining and refrigeratin. 28 February 2017 Aalberts Industries N.V. Full Year results

19 OPERATIONAL REVIEW SELECTIVE, DISCIPLINED ACQUISITION STRATEGY specialised in the design and manufacturing f dispensing equipment fr all kinds f beverages, glbally servicing its many key custmers. strengthens psitin in Beverage Dispense market cmplementary prtfli, enhances glbal market psitin many pssibilities in especially Nrth America and Asia, utilising Key Accunt cntacts. innvative leader in the develpment, manufacturing, sales and distributin f grved cmpnents fr mechanical piping systems strengthens psitin in bth Building Installatins Industrial Installatins end market and perfect strategic fit t existing cnnectin technlgy prtfli strengthens prject ffering with a cmplete range f sizes, fr all kind f end markets, fr a variety f piping materials. will be cmbined with ur valve prtfli, ffering many pprtunities fr grwth and innvatins. 28 February 2017 Aalberts Industries N.V. Full Year results

20 FINANCIAL REVIEW

21 FINANCIAL REVIEW CONDENSED CONSOLIDATED INCOME STATEMENT in EUR millin DELTA Revenue 2, , % Operating prfit (EBITDA) % Depreciatin (93.7) (95.3) (2%) Operating prfit (EBITA) % Net interest expense (16.6) (17.8) (7%) Other net finance cst (3.4) (2.6) - Incme tax expense (ETR FY16: 25.2%, FY15: 25.8%) (62.4) (58.6) 6% Nn-cntrlling interests (3.2) (2.5) - NET PROFIT BEFORE AMORTISATION % EPS befre amrtisatin in EUR %» Revenue grwth: +1.1% rganic, +2.4% acquisitins/divestments, -1.6% FX/currency impact» FX impact EUR 39 mi negative n Revenue and EUR 4 mi negative n EBITA 28 February 2017 Aalberts Industries N.V. Full Year results

22 FINANCIAL REVIEW CONDENSED CONSOLIDATED BALANCE SHEET in EUR millin Ttal nn-current assets 1,903 1,799 Ttal current assets TOTAL ASSETS 2,859 2,741 Ttal equity 1,391 1,285 Ttal nn-current liabilities Ttal current liabilities TOTAL EQUITY AND LIABILITIES 2,859 2,741 Net debt Leverage rati: Net debt / EBITDA (12-mnths-rlling) Net wrking capital Ttal equity as a % f ttal assets Return n Capital Emplyed (ROCE) (in %) February 2017 Aalberts Industries N.V. Full Year results

23 FINANCIAL REVIEW CONDENSED CONSOLIDATED CASH FLOW STATEMENT in EUR millin * DELTA Operating prfit (EBITDA) Result n sale f equipment / Changes in prvisins (11.4) (16.1) 4.7 Changes in wrking capital 2.1 (21.1) 23.2 CASH FLOW FROM OPERATIONS Net capital expenditure (109.2) (87.2) (22.0) FREE CASH FLOW Finance cst paid (20.4) (16.4) (4.0) Incme taxes paid (56.6) (69.9) 13.3 Acquisitin/dispsal f subsidiaries (111.5) (93.5) (18.0) Prceeds frm nn-current brrwings (197.8) Repayment f nn-current brrwings (64.4) (120.2) 55.8 Dividends paid (57.6) (50.9) (6.7) Cash flw t nn-cntrlling interests (2.7) (24.1) 21.4 NET INCREASE/(DECREASE) IN CASH AND CURRENT BORROWINGS (39.3) 66.3 (105.6) *Adjusted fr cmparisn purpses 28 February 2017 Aalberts Industries N.V. Full Year results

24 FINANCIAL REVIEW REVENUE & CAPEX in EUR millin 1H2016* FY2016 1H2015* FY2015* DELTA FY Building Installatins , , Climate Cntrl Industrial Cntrls % Industrial Services % Hlding / Eliminatins (36.0) (68.7) (36.4) (70.8) - TOTAL REVENUE 1, , , , % in EUR millin 1H2016* FY2016 1H2015* FY2015* DELTA FY Building Installatins % Climate Cntrl % Industrial Cntrls Industrial Services % Hlding / Eliminatins TOTAL CAPEX % *Adjusted fr cmparisn purpses 28 February 2017 Aalberts Industries N.V. Full Year results

25 FINANCIAL REVIEW OPERATING PROFIT (EBITA) & EBITA MARGIN in EUR millin 1H2016* FY2016 1H2015* FY2015* DELTA FY Building Installatins % Climate Cntrl % Industrial Cntrls % Industrial Services % Hlding / Eliminatins (7.0) (15.0) (6.8) (14.6) - TOTAL EBITA % in % f revenue 1H2016* FY2016 1H2015* FY2015* DELTA FY Building Installatins Climate Cntrl Industrial Cntrls Industrial Services (0.1) EBITA MARGIN *Adjusted fr cmparisn purpses 28 February 2017 Aalberts Industries N.V. Full Year results

26 FINANCIAL REVIEW DEVELOPMENT REVENUE & ADDED-VALUE MARGIN REVENUE (in EUR millin) ADDED-VALUE MARGIN (in %) 2,475 2, , ,025 2, ,522 +2% February 2017 Aalberts Industries N.V. Full Year results

27 FINANCIAL REVIEW DEVELOPMENT OPERATING PROFIT & EBITA MARGIN OPERATING PROFIT (EBITA) (in EUR millin) EBITA AS A % OF REVENUE (in %) % February 2017 Aalberts Industries N.V. Full Year results

28 FINANCIAL REVIEW DEVELOPMENT NET PROFIT & EPS NET PROFIT (BEFORE AMORTISATION) (in EUR millin) EARNINGS PER SHARE (BEFORE AMORTISATION) (in EUR) % % 28 February 2017 Aalberts Industries N.V. Full Year results

29 FINANCIAL REVIEW DEVELOPMENT CAPITAL EXPENDITURE & ROCE CAPITAL EXPENDITURE (in EUR millin) RETURN ON CAPITAL EMPLOYED (ROCE) (in %) % February 2017 Aalberts Industries N.V. Full Year results

30 FINANCIAL REVIEW DEVELOPMENT FREE CASH FLOW AND CONVERSION RATIO FREE CASH FLOW (BEFORE INTEREST AND TAX) (in EUR millin) FREE CASH FLOW CONVERSION RATIO (FCF/EBITDA) (in %) % February 2017 Aalberts Industries N.V. Full Year results

31 FINANCIAL REVIEW FREE CASH FLOW DEVELOPMENT (in EUR mi) 400 EBITDA 392 DEPRECIATION EBITDA 296 DEPRECIATION FREE CASH FLOW FREE CASH FLOW 273 EBITA EBITA 50 CHANGES IN PROVISIONS, WORKING CAPITAL & NET CAPEX CHANGES IN PROVISIONS, WORKING CAPITAL & NET CAPEX February 2017 Aalberts Industries N.V. Full Year results

32 FINANCIAL REVIEW DEVELOPMENT DIVIDEND PER ORDINARY SHARE DIVIDEND (in EUR) Prpsal t increase the cash dividend per rdinary share by 12% t EUR 0.58 (2015: EUR 0.52) % 28 February 2017 Aalberts Industries N.V. Full Year results

33 OUTLOOK We will cnsistently execute ur strategy Drive ur many rganic grwth and innvatin initiatives Execute the integratin plans f the acquired businesses Further strengthen ur defined market psitins thrugh additinal blt-n acquisitins Expect t realise further sustainable prfitable grwth

34 QUESTIONS & ANSWERS