FULL YEAR RESULTS Operating profit (EBITDA) in line with 2007

Transcription

1 FULL YEAR RESULTS 2008 Operating profit (EBITDA) in line with 2007

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

3 Highlights Increase in revenue 3% to EUR 1.75 billion ( 6% at constant exchange rates) Organic revenue 2% at constant exchange rates Operating profit (EBITDA) EUR 251.6m in line with 2007 Operating profit (EBITA) EUR 181.5m (10.4% of revenue) Earnings per share EUR 1.02 in line with update of December 2008 Continuation of the dividend policy with a pay-out ratio of more than 27% (EUR 0.28 per share) Cash flow from operations 15% Strict control of working capital and maintaining sound balance sheet ratios Strategic expansion of Flow Control (Henco) FY

4 Profile

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

6 Markets Industrial Services Subcontracting of products & processes for high-grade industries Precision engineering Precision engineering Medical industry Medical industry Automotive industry Automotive industry Aircraft industry Aircraft industry Electronics industry Electronics industry Semiconductor industry Semiconductor industry Defence industry Defence industry And other And other FY

7 Markets Flow Control Products & systems to connect, distribute and regulate liquid and gas flows Construction District heating District heating Automotive industry Automotive industry Medical industry Medical industry Irrigation industry Irrigation industry And other And other FY

8 Business Sanitary Systems Heating & Cooling Systems Control & Measurement Systems Sewage & Drainage Systems Fitting & Tube Connection Systems Control & Measurement Systems FY

9 Operating companies Worldwide presence More than 150 own production locations including sales offices A few own sales-only offices FY

10 Objectives Focus on growth

11 Objectives Stable growth in earnings per share Average growth in past 15 years 17% Continuous growth in revenue Organic growth and acquisitions Wide spread of results Lowering risk for shareholders Leading market positions One of the top 3 in all relevant markets Solid balance sheet ratios FY

12 History Revenue Net profit EUR million EUR million FY

13 Financial Review

14 Financial highlights Significant impact of Henco acquisition Cash flow from operations 15% Net working capital EUR 123m in H2/08 Capital expenditure to EUR 110.5m Net debt EUR 121m in H2/08 Tax rate from 22% to 17% Exchange rate impact GBP British pound USD US Dollar PLN Polish zloty RUB Russian rouble Average 14% 7% 8% 4% Year-end 24% 4% 13% 12% FY

15 Income statement In EUR x million Change Revenue 1, , % Operating profit (EBITDA) (1%) Depreciation (70.1) (60.9) 15% Operating profit (EBITA) (6%) Net interest expense (44.5) (35.8) 24% Other net finance cost (11.7) 5.6 Taxes (19.3) (33.8) Minority interest (1.1) (1.3) Net profit before amortisation (18%) FY

16 Balance sheet ASSETS In EUR x million Goodwill Other intangible assets Property, plant and equipment Deferred tax assets Non-current assets 1, , Inventories Trade receivables Other current assets Cash and cash equivalents Current assets TOTAL ASSETS 1, , ,434.5 FY

17 Balance sheet EQUITY AND LIABILITIES In EUR x million Total equity Non-current borrowings Cumulative preference shares Employee benefit plans Deferred tax liabilities Other provisions Non-current liabilities Current borrowings Trade and other payables Other current liabilities Current liabilities EQUITY AND LIABILITIES 1, , ,434.5 FY

18 Cash flow statement In EUR x million FY 2008 H FY 2007 Operating profit (EBIT) Depreciation Amortisation EBITDA Result on sale of equipment 0.8 (0.1) (0.6) Provisions & direct equity movements (3.0) (9.2) (16.5) Changes in working capital 15.1 (107.7) (7.0) Cash flow from operations FY

19 Cash flow statement In EUR x million FY 2008 H FY 2007 Net finance cost (54.8) (25.0) (27.1) Taxes (45.0) (21.2) (31.7) Acquisitions (277.9) (266.9) (107.1) Capital expenditure (106.1) (54.6) (100.5) Issue of share capital Long-term debt contracted Repayments on long-term debt (86.0) (35.3) (76.1) Dividend paid (15.3) (15.7) (12.6) Other movements (3.4) (1.9) (2.0) Net cash flow (8.2) (90.9) 25.0 FY

20 Key figures In EUR x million Change EBITA as a % of revenue Tax rate in % Earnings per share (EUR x 1) (19%) Average number of shares issued % Number of employees (x 1) 10,880 10,918 Capital expenditure % Interest cover (EBITA / net interest) Total equity % Total equity as a % of total assets Net debt / EBITDA (12 month rolling) Net debt % Net debt / Total equity (Gearing) FY

21 EBITA and EBITA margin '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 0 EBITA EBITA-margin FY

22 Net profit and EPS 140 1, , in EUR million ,8 0,6 in EUR 40 0,4 20 0,2 0 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 0 Net profit EPS FY

23 Operational Developments Overall market slowdown

24 Spread of revenue 2008 in EUR million 2008 as a % of revenue 2007 in EUR million 2007 as a % of revenue Germany Benelux United Kingdom FY08* EURm: Eastern Europe France United States FY08* EURm: Scandinavia Spain & Portugal Other European countries Other countries outside Europe TOTAL 1, , *at constant exchange rates FY

25 Spread of revenue EUR million Germany Benelux United Kingdom Eastern Europe France United States Scandinavia Spain & P ortugal Other European countries Other countries outside Europe FY

26 Spread of revenue per activity in EUR million Germany B enelux United Kingdom Eastern Europe France United States Scandinavia Spain & P ortugal Other Euro pean countries Other countries outside Europe Industrial Services Flow Control FY

27 Industrial Services

28 Industrial Services highlights Revenue 2% Organic revenue 6%: H1 2%, H2 13% EBITA margin to 8.2% Capital expenditure 4% to EUR 50.5m Changeable market conditions Automotive: 1st half year, 2nd half Precision engineering: in the latter months Semi-conductor industry: Difficult all year Aircraft, medical and energy sectors: FY

29 Acquisitions Industrial Services Revenue: EUR 32 million DEU/USA/JAP Consolidation JAN 2008 Revenue: EUR 7 million CHE/DEU Consolidation JAN 2008 Revenue: EUR 16 million FRA/CHN/SLV Consolidation JAN 2008 FY

30 Industrial Services In EUR x million Change Revenue % Operating profit (EBITDA) (16%) EBITDA as a % of revenue Operating profit (EBITA) (27%) EBITA as a % of revenue Capital expenditure (4%) Depreciation % Average number of employees (x1) 4,640 4,368 6% Employees at year-end (x1) 4,253 4,356 (2%) FY

31 Flow Control

32 Flow Control highlights Revenue 3% Organic revenue 1%: H1 3%, H2 5% EBITDA margin to 14.4% EBITA margin = 11.3% Capital expenditure 7% to EUR 60.0m Changeable market conditions: Benelux: Scandinavia: 1st half year, 2nd half France: reasonably good Spain and Italy: unfavourable market conditions Germany: by focused market approach UK: 1st half year, 2nd half East Europe: Full year, slow down in 2nd half North America: commercial/industrial building, housing construction sector FY

33 Flow Control acquisitions Belgium Consolidation: APR08 Annual revenue EUR 105 million Poland Consolidation: MAY08 Annual revenue EUR 7 million Alphacan s French heating & sanitary activities Consolidation: JAN09 Annual revenue EUR 25 million FY

34 Flow Control In EUR x million Change 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) 6,872 6,303 9% Employees at year-end (x1) 6,608 6,544 1% FY

35 The Aalberts Industries share

36 The Aalberts Industries share FY FY FY FY FY Average trading volume (in EUR million) Closing share price (in EUR) Earnings per share (in EUR) Share price / Earnings per share Shares in issue (in million) Dividend (in EUR) Market capitalisation (in EUR million) ,387 1,609 1, FY

37 Share price development FY

38 Outlook

39 Outlook Given the current economic circumstances and the associated uncertainties, it is not possible to give an outlook for However: The solid financial position, the many years investments, the established market positions, R&D (both production automation and new products) and the measures taken, will enable Aalberts Industries to emerge strengthened from the current market situation when the economy improves. FY

40 Questions and Answers