Annual Report. Kuiken Group B.V. Luxembourg

Transcription

1 Annual Report 2011 Kuiken Group B.V. Luxembourg

2 Main Developments in 2011 Revenues in Benelux rose by 39% EBITDA increased to 12.8 million (7.1% of revenues) Successful refinancing Successful introduction of new generation Volvo wheel loaders, articulated haulers and excavators Strong growth in recycling, waste processing, port and industry market segments Acquisition of Sandvik dealership in Benelux for mobile crushers and screens Collaboration with Volvo and Sennebogen intensified Accelerated growth in service and spare parts sales Further professionalization of the organization Rental service strengthened at Benelux level Introduction Multiplier full-service financing product 2

3 Table of contents Main Developments in Foreword 5 Kuiken is back on track 5 Profile 6 Our mission and vision 6 ACK ON TRACK Added value: unburdening customers as much as possible 6 Brands & products 8 Offices 9 The strengths of the Kuiken Group 11 Report of the Board of Management 13 Objectives and results Financial state of affairs 30 Organization in development 34 Our employees 34 Outlook 37 In conclusion 37 Lower operating costs through CareTrack 20 The new machines of Report of the Supervisory Board 40 Summary Financial Statements Consolidated Income Statement 43 Consolidated Balance Sheet 44 Consolidated Cash Flow Statement 45 Colophon 47 Ta b l e o f c o n t e n t s 3

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5 Foreword Kuiken is back on track After a number of turbulent years, the Kuiken Group has successfully adopted a new course. We have succeeded in restoring confidence in our company. New financing, higher revenues, new management and a positive financial result confirm this. Our strategy is aimed at growth as well as stability, with a focus on the needs of our customers. Better use of knowledge of customers and markets In keeping with our new way of working, we continue to invest in increasing our knowledge of the markets in which we operate. In addition to the market segments where we already have a strong position, we target promising new markets in the Netherlands, Belgium and Luxembourg, including the port and recycling sectors. We do this in order to continue to grow and enhance our stability. We use our market knowledge to respond to the needs and demands of our customers proactively and, to this end, we also enter into a dialogue with our customers. Even more than before, knowledge of the working procedures of our customers forms the basis of our added value. The specific needs of customers vary by market segment. With our solutions, we support their primary process. In order to best serve our customers and to realize further growth, we apply a multi-brand strategy. Not only do we offer different high-end brands of machines, but also a complete service package with optimal support, proactive maintenance, contemporary forms of financing, training, insurance and rental machines. Helping customers to establish sustainable operations Stricter guidelines for clean engines force the industry to take measures in the area of sustainability. With the new series of Volvo machines that we introduced in 2011 and a fully electricity-powered Sennebogen product range, we are well positioned to support this development. And with success: the number of machines that we have sold in this sustainable category underlines our view that we are meeting a current demand. We also attach importance to the sustainability of our own business operations. In 2011, we joined the Lean & Green program, for which we aim to achieve an award in We are currently preparing for certification for the CO 2 performance ladder. Faster, better, cheaper We are working hard to further professionalize the internal organization. Being able to offer market-based prices requires us to control our costs and to operate efficiently. Measures to that effect include streamlined logistics and planning and optimizing the process of supplying our service technicians was a good year for the Kuiken Group. We have started several new initiatives, achieved solid financial results and strengthened our capital position. We are proud of our employees, who have made this result possible. With new enthusiasm, our team of skilled employees is dedicated to the success of our customers and our company. We have every reason to look to the future with confidence. Our strategy is aimed at growth as well as stability, with a focus on the needs of our customers. Sustainability is an increasingly important success factor for construction company Heijmans. With clean and fuel-efficient Volvo G-series wheel loaders, Heijmans meets the step 3B emission requirements. Fo r e w o r d 5

6 Profile The Kuiken Group is a leading full-service distribution company, specializing in construction equipment, crane & material handling, recycling and port equipment in the Benelux. The Kuiken Group comprises the companies Kuiken Netherlands, VCM Belgium, VCM Luxembourg and VCM Cramat. We have two divisions: Construction Equipment and Crane & Material Handling Equipment (Cramat). Kuiken Group deliberately applies a multibrand strategy and holds the distribution rights for reputable brands. In the Netherlands, these are: Volvo Construction Equipment, Sennebogen, Sandvik mobile crushers and sreens, Terex Port Equipment and MAFI terminal tractors. In Belgium, we also hold the distribution rights for Perlini rigid dump trucks in addition to the brands Volvo, Sennebogen and Sandvik and in Luxembourg for Brinkmann screed pumps. The Kuiken Group employs approximately 220 employees in the Netherlands and 100 employees in Belgium and Luxembourg. Our extensive network of service offices in the Benelux guarantees quick and accurate service. Approximately 100 Kuiken and VCM field service technicians are always on the road to ensure that the machines of our customers are optimally productive. In addition, we have about 50 mechanics at work in our workshops. For a large part, the training of our experts takes place at our own Kuiken Academy and in our workshops. Our mission and vision The ambition of the Kuiken Group is to be the best full-service provider of high-end brands in construction equipment, crane & material handling, recycling and port equipment in the Benelux. We help customers to achieve maximum performance at the lowest possible operational costs. To realize this ambition, we strive for market leadership in the segments in which we operate. By continuing to broaden our scope to other markets and brands that fit within our mission, we maintain our leading position and increase our stability. The Kuiken Group is a healthy company with a modern, professional organization. Quality, efficiency and profitability of our own organization are the best guarantee for continued good performance in the future. Added value: unburdening customers as much as possible We supply strong high-end brands that have a decisive impact on the performance of our customers. We offer our customers one-stop-shop solutions with the sale and rental of machines as well as maintenance and repair and the sale of spare parts. In addition, we offer assistance in finding the most appropriate forms of financing and insurance of machines. We have well-equipped workshops and have all current parts in stock. New machines are delivered ready to use and tailor-made if requested. Our employees are among the best in their field. The field technicians provide on-site service to customers. From our regional service offices, we can provide a fast response time, thus optimizing the productivity of our customers. The Kuiken Group continues to develop new forms of full service to fully relieve customers from the care for their machine fleet. Heavy lifting and transport are the core activities of Mammoet. The specialized machines that the company uses for these purposes are either developed by the company itself or supplied by the Kuiken Group. Machines that should provide optimal availability. On the basis of the information provided by CareTrack, Kuiken is able to plan maintenance activities with Mammoet proactively. The scheduled service of the Sennebogen 643 crane after 250-hours of operation takes place on site at the customer in Nijmegen. 6 A n n u a l r e p o r t

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8 Service & parts Rental Tracking & tracing Used machines Warranty & insurance Financing Training New machines The full service of the Kuiken Group Brands & products Volvo Construction Equipment: wheel loaders, excavators, articulated haulers, demolition equipment, forestry equipment, pipelayers, graders, rollers, asphalt pavers and milling machines Terex Port Equipment: super stackers, empty handlers and forklift trucks MAFI: terminal tractors Sennebogen: hoisting cranes and material handling machines Sandvik: crushers and screens, hydraulic hammers and demolition tools Perlini: rigid dump trucks Brinkmann: screed pumps Holms: attachments 8 A n n u a l r e p o r t

9 Offices The offices of the Kuiken Group in the Netherlands, Belgium and Luxembourg: The Netherlands Emmeloord 2 Uitgeest Almelo Rotterdam (in the process of incorporation) Numansdorp Oud Gastel Veghel Echt 7 Belgium Vilvoorde Luxembourg 1 Soleuvre 1 P r o f i l e 9

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11 The strengths of the Kuiken Group High-end brands Extensive network of service locations Specialized expertise Strong in parts, high level of service Leader in the sustainable machines market Full-service concepts including fleet management Training for employees and customers

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13 Report of the Board of Management Resourcefulness is the core of our proposition: we offer a tailor-made solution for every issue. The Kuiken Group strives for solutions that contribute to the primary production process of customers. We are committed to further improve the quality of our service, which already has a good reputation. Our strategy for the coming years is aimed at growth in various market segments, the development of even more customer-oriented services and operational excellence. Knowledge of our markets The Kuiken Group keeps its eyes and ears open for trends in the market that affect developments at customers and our own organization. We have a broad positioning in various market segments and assess the specific needs of customers. The effect of the general economic developments varies between the market segments in which we operate. There was, for example, slight growth in the earth-moving segment. In other markets, such as port throughput and recycling in the Netherlands and the construction sector in Belgium, we see good potential. Through our knowledge of the market and deliberate diversification of our activities we have realized growth, despite the moderate economic climate. The needs of our customers Customers require accurate and predictable estimates of the costs per operating hour of their machines. The aim is to achieve the lowest possible operational costs per operating hour and to increase the flexibility of operational costs where possible. Customers are faced with rising fuel prices that lead to an increase in their production costs. Consequently, the demand for more fuel-efficient engines is increasing. The Kuiken Group meets this demand with BACK ON TRACK Rob van Hove, CEO (on the right) and Roel Berends, CFO (on the left) In the growing market for recycling, enormous amounts of reusable materials are being processed, including glass as is the case here at Van Gansewinkel Group in Heijningen. The Volvo L110F is a vital link in the production process of this customer, which is the processing of waste materials for re-use. R e p o r t o f t h e B o a r d o f M a n a g e m e n t 13

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15 energy-efficient top brand machines. In addition, there is a growing need for used and rental machinery. This is partly motivated by the economic developments that lead to uncertainty about the timing of investments. Some companies with large machine fleets (and car fleets) explore the possibilities to outsource the management and maintenance since, in most cases, this is not their core activity. The Kuiken Group offers the all-round service of taking over the full maintenance and management, including machines of other brands. We are a partner that not only offers advice on how to optimize the process, but one that is also capable of taking control of the entire process. Kuiken calls this unburdening the customer. Sustainability is a central issue for a large part of our Dutch clients. The Dutch regulations in this area are ahead of those in place in Belgium and Luxembourg. With the machines and services it supplies, the Kuiken Group helps customers that want to improve the sustainability of their operations to realize this in a responsible manner from a business economics perspective. In 2011, Volvo introduced a range of fuel-efficient and environmentally friendly machines, the G-series wheel loaders, F-series articulated haulers and D-series excavators. Sennebogen can deliver electricity-powered versions of its entire product range. We offer our customers Eco Operator courses, where we train machine operators to operate their machines as efficiently as possible. This results in lower fuel consumption and subsequent reduction of costs and emissions of harmful substances. BACK ON TRACK Jelle Bosscha, Sales Director Volvo Kuiken Meeting the demand for sustainable machines As of 1 January 2011, 130 KW class machines and above must meet the new EU emission requirements for heavy-duty engines. In 2011, Volvo was the first in the market with machines that met this EU directive. With this product range, we take the lead in the industry. Although the purchase prices of the new generation of machines are somewhat higher, their fuel consumption Solutions that help to optimize the primary production process of customers. is demonstrably lower (5-15%) and their productivity is higher. These features were well received by our customers and was also confirmed after the new machines had been The Theo Pouw Group specializes in soil treatment, recycling of debris, sale of building materials, production of concrete mortar, transport, storage and material handling. The company has a versatile machine park, including this new Volvo EC480D excavator that moves more tons of material per litre of fuel than other machines. With CareTrack, the Theo Pouw Group monitors its fuel consumption closely. put into operation. Our customers attach great importance to sustainability and are excited that sustainability can go hand in hand with lower costs and higher productivity. R e p o r t o f t h e B o a r d o f M a n a g e m e n t 15

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17 With one of Sennebogen s largest material handling machines, the Greenline 870, service provider Goeyvaerts holds a new trump card. The Belgian company rents (un)manned machines needed for the loading and/or unloading of ships, such as here in the port of Antwerp. Just like the customer, the Kuiken Group benefits from the growth of the material handling sector. Ve r s l a g v a n d e D i r e c t i e 17

18 Objectives and results 2011 Broad growth in the Benelux In 2012, we have customers in the sectors of civil engineering, industry, agriculture, sand and stone quarries, port throughput and recycling. By spreading the risk over multiple segments, we increase our financial stability. What have we achieved? On the whole, 2011 was a successful year. We have further strengthened our market position and there is new enthusiasm within the company. Employees are excited about the new strategy. We have a preferred position in the Benelux that forms a good basis for our current and future growth. Our major suppliers Volvo and Sennebogen support our vision on how we can achieve further growth in our key markets. We are in continuous dialogue with them regarding the development of new service concepts that correspond to the trends in the market. Increase in sales of machines and services We have already been able to reap part of the benefits of our vision on the trends in the market. The economy as a whole is faltering. Nevertheless, we have succeeded in entering new markets, increasing our market share and expanding the range of services for our customers. Sales of new machines lead to a 50% turnover increase compared to This result is partly attributable to the fact that we were the first market participant that could supply (Volvo) machines that meet the new emission directives. This new generation of machines distinguishes itself by lower fuel consumption and, in most cases, higher productivity. Turnover in service and parts also grew substantially because we have intensified our contacts with customers and advise them increasingly proactively on the maintenance status of their machine fleet by means of CareTrack. The number of customers that use CareTrack has increased significantly. Successful in new markets We have grown in the earth-moving and infrastructure markets in the Netherlands and in the ports and industry markets in Belgium. At present, we are also increasing our focus on other markets. Recycling in particular, is a growing market in which we successfully attract renowned customers. Our aim is to offer them complementary machines of various high-end brands for their activities. For that purpose, we have added the Sandvik mobile crushers and screens to our product range in Developments in world trade and the excellent position of the throughput ports of Rotterdam and Antwerp make ports a promising growth market. During the course of 2012, we expect to establish a service workshop at the 18 A n n u a l r e p o r t

19 Maasvlakte that will provide 24/7 service for customers in the port of Rotterdam. In 2012, the Kuiken Group has become a distributor of Terex Port Equipment and MAFI terminal tractors, both leading names in container handling equipment. This is an excellent addition to the Sennebogen range, with which we have already acquired a large market share in the Benelux. The Kuiken Group is the only player in container handling equipment that has an extensive service network across the Benelux, close to the major and regional throughput ports. In 2011, we have realized strong growth in this segment. Increasing demand for rental machines, used equipment and leasing The demand for rental machines has increased significantly in We have realized a high utilization rate of our 175 rental machines. In addition, we have been able to renew a large part of our fleet and have improved sustainability with machines equipped with step 3B engines. Our used equipment facility at a central location in the Benelux meets the internationally growing demand for used machines. Our machines are known for their good state of repair and will offer many additional years of service in their second life. There was a strong growth in lease activities in There is a high demand for this form of financing for all our brands. For the brand Volvo, we meet this demand with Volvo Financial Services. In keeping with our multi-brand strategy, we have also developed our own line of lease products under the name Multiplier. This comprehensive package of lease, maintenance and insurance literally multiplies our service. With Multiplier, we offer our customers everything they need to optimize the use of their machines and thereby strengthen their business. Our partner in this arrangement is insurance company De Lage Landen. BACK ON TRACK Kris Vochten, Managing Director VCM Belgium & VCM Luxembourg Unburdening customers Our customers pay special attention to productivity. The higher the number of productive machine hours, the better. Our service is designed to meet this need. We sell the best machines and maintain them to ensure optimal availability. In the event of a machine standstill, our mobile service teams will be on site quickly. Some customers go even one step further by outsourcing the full management Larger market share and broader range of customer services and maintenance of their machine fleet to us. R e p o r t o f t h e B o a r d o f M a n a g e m e n t 19

20 Lower operating costs through CareTrack The CareTrack system is an indispensable instrument for optimal production planning and maintenance of capital-intensive machines or complete machine fleets. systems through a universal interface. This means that the data generated by CareTrack can be used for preparing estimates, for costing purposes, in quotes or in financial processes. CareTrack enables customers to monitor and track their machines remotely. In 2011, the Kuiken Group carried out a large-scale campaign aimed at connecting customers machines to CareTrack. And with success. In the Netherlands, almost all new machines come with CareTrack and over 80% of the machines in Belgium and Luxembourg. Through a retro-fit program, we have also connected machines that had already been put into operation. Customers who use CareTrack possess a state-of-the-art tool for optimizing the Total Cost of Ownership. Tracking & Tracing Real-time data giving the exact location of each machine that is connected to CareTrack, is transferred via GPRS. A new option that is available to customers of Volvo excavators as of mid-2012, is an anti-theft system that meets the class W3 anti-theft standard of insurance companies. The machine will be equipped with a vehicle tracking system that will be installed in the machine invisibly in a difficult to find place. With this system, we hope to call a halt to the increasing number of thefts of this type of capital goods. The advantages With CareTrack, customers benefit from a wealth of information about their machines that is available on a real-time basis, any time of the day. On the basis of this information, they can make more efficient and smarter use of their machines and operators. They save fuel and increase their productivity. CareTrack is accessible through internet at any location. Not only Volvo machines, but also other brands of machines can be connected to CareTrack. The system can be integrated with all common business information Operations report An overview of production hours, inactivity and fuel consumption is available at machine, work shift or complete machine fleet level. A new feature of CareTrack is a weighing system that registers the number of tonnes of processed materials. This option is available on Volvo A40F articulated haulers with full suspension. Customers can use the information from the operations report to very accurately manage or adjust their production. They can also identify production or fuel consumption differences per shift. It is possible to specify which notifications the system should send to the production planning or technical service immediately, such as a defect or the exceeding of the fuel consumption limit. Servicemanagement CareTrack monitors when preventive maintenance should be planned for each of the machines connected to the system. Customers are then informed timely by Kuiken to enable them to select the best moment to take the machine out of production, thereby preventing unwanted downtime. 20 A n n u a l r e p o r t

21 BRAND X Realtime data C rack CareT are Track Operation reports Tracking & tracing Customer information systems servicemanagement Operating hours Proactive maintenance Fuel consumption Service planning Fleet extension / replacement planning Production planning securing uptime optimising operations Optimizing operational costs L o w e r o p e r a t i n g c o s t s t h r o u g h C a r e Tr a c k 21

22 Customer-oriented service Customer requirements are changing. They want to know where they stand with regard to operational costs associated with repair, maintenance and depreciation. Many customers carry out the direct management of their entire machine fleet. Kuiken offers them support in the form of quick delivery of spare parts, technical advice and training on how to optimize the use and maintenance of machines. In the future, we will introduce more and more products and services to help customers to optimize their operational costs. A growing number of customers do not want to have to worry about the technical management and maintenance of their machines. They expect the appropriate machines to be available at each step of their work process. We see potential in this area and wish to improve our service to this group of customers by putting a stronger focus on offering a full-service concept aimed at unburdening these companies. This will include fleet management and proactive service as well as excellent financing constructions. Together with transport partners TNT and Seris Belgium, we deliver supplies to the home addresses of our service technicians overnight. They can be on the road the next day with the right parts to repair malfunctioning machines immediately. With overnight distribution, we improve our response time and contribute to the higher uptime of the machines of our customers. 22 A n n u a l r e p o r t

23 What have we achieved? We believe that establishing good relationships with our customers is important and often have long-lasting commitments to them. We understand that they want to invest in the improvement of their production and we adapt our product range accordingly. Aiming for optimal availability of machines Customers require maximum availability of their machines. We strive to address operational questions or technical issues as quickly as possible. Our engineers can rely on our technical product specialists for answers to questions that require specialized knowledge. The Kuiken Group always goes one step further to provide solutions for the customer. We offer several types of maintenance agreements. Where necessary, we adapt the level of service to the customer s requirements. In 2011, we have concluded some very extensive full-service contracts. In 2012, we will even take over the entire workshop of some of our customers and perform all the necessary technical service tasks. The preparations for this have been made in Once implemented, these customers will be able to fully concentrate on their core business. Strong increase in number of CareTrack connections In 2011, there was an upsurge in the remote tracking and monitoring of machines. More and more customers are discovering the related benefits, such as the remote real-time monitoring of productivity and fuel consumption by means of the CareTrack system. Based on data supplied by CareTrack, we provide advice about cost control and productivity improvement. The data is also used to optimize the availability of the machine fleet. CareTrack is now available on all Volvo machines. We are working to implement this system on all our brands. BACK ON TRACK Harry Elling, Service Director Kuiken Increasing customers uptime Our good and fast technical support ensures optimal availability of our customers machines. With our network of service locations and nightly supplying of our service technicians we are well prepared to repair defects quickly. We are working to refine our mobile service in order to be able to serve customers 24/7. In 2012, automated planning and stricter control of the field service will improve efficiency and communication to the customer. R e p o r t o f t h e B o a r d o f M a n a g e m e n t 23

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25 Intensified preventive maintenance Kuiken focuses on preventing unplanned downtime of machines. As a service, we approach customers to plan preventative maintenance. CareTrack enables us to schedule timely maintenance that is needed to prevent unwanted downtime. We continuously carry out these analyses for all machines in the Benelux that are currently equipped with CareTrack. Unburdening customers with a comprehensive service package Professional business operations We are working hard to improve the efficiency of our business operations. Making our own processes faster, better and cheaper enables us to offer customers a market-based price for our machines and services. We focus primarily on inventory management and our logistics processes. It is important for our customers that we can act quickly and have the correct parts available. What have we achieved? Within the organization, we have addressed operational excellence and cost control. We have made new agreements with Volvo regarding streamlined inventory management and have integrated the Volvo inventory management system with our financial system. BACK ON TRACK Marco Plug, Director Container Handling Kuiken Comprehensive solution for material handling sector Our challenge is to place the Kuiken Group firmly on the map in the port sector with a comprehensive solution for terminals. An important asset in this respect is the expansion of our product range with Terex Port Equipment and MAFI terminal tractors at the beginning of Furthermore, we offer our customers fast and professional 24/7 service with our new service location that will be established in the major throughput port of Rotterdam. As such, we are making a vital contribution to the optimization of the uptime of machines, which is To expand its port terminal services, the Kuiken Group started with the supply of MAFI terminal tractors in the Netherlands in Besides machines, Kuiken also offers full service on this prominent brand in container handling equipment. essential for the around-the-clock operations in ports. R e p o r t o f t h e B o a r d o f M a n a g e m e n t 25

26 The operations of the Belgian dredging company Jan De Nul also include substantial earthmoving activities. With fourteen new A40F series Volvo articulated haulers, the company added true muscle machines to its civil engineering activity. One of the projects for which they are used is the creation of the intertidal area in the Hedwige-Prosperpolder. Improved response times We aim to further improve the productivity of our service technicians. The planned automation of our field service will play an important role in this respect. In addition, we recruit service technicians who live near to our customers. We strive to increase the uptime at customers by preventing downtime. That is why we ensure that our engineers are able to respond faster and have the right parts on hand. In the Netherlands, we have recently introduced overnight distribution; parts are delivered to the service technicians at night, which enables us to help customers quickly the next day. In Belgium and Luxembourg, we already supply all our service technicians overnight, to the satisfaction of customers. This has led to better response times. Customers who carry out their own maintenance can also make use of this service and get the parts they have ordered delivered via overnight distribution. In addition, we are starting preparations for automated service planning. This means that service technicians in the entire Benelux operate from home and receive their work orders electronically, which reduces the response time even further. Streamlined inventory management Inventory management is an important element of our service performance. In recent years, we have improved the efficiency of our inventory management. The inventory itself is centralized at locations in the cities of Emmeloord in the Netherlands and Vilvoorde in Belgium. On the basis of a customer risk analysis, it has been determined which parts are included in our inventory consisting of 40,000 items. As a result of developments in our product range, the demand for parts changes continuously. Therefore, we monitor trends closely. 26 A n n u a l r e p o r t