HALF YEAR RESULTS 2010 Sharp improvements

Transcription

1 HALF YEAR RESULTS 2010 Sharp improvements

2 Today s agenda Headlines 1H2010 Strategy & Objectives Profile Financial review Operational developments The Aalberts Industries share Outlook Questions and answers

3 1H Headlines 1H2010 Organic revenue 12% to EUR 782m Added value margin improves substantially to 60.9% EBITDA 55% to EUR 114.0m EBITA 110% to EUR 81.1m Net profit 180% to EUR 51.3m Earnings per share 182% to EUR 0.48 Improvement of balance sheet ratios Sharp decrease of leverage ratio to < 3.0 Industrial Services: robust recovery with an organic revenue growth of 23% Flow Control: an organic revenue growth of 7% Announcement of intended acquisition of Conbraco Industries (US)

4 Strategy & Objectives Focus on growth

5 1H Strategy & 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 1.5

6 Profile

7 1H 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 & processes for high-grade industries FLOW CONTROL 70% of total revenue Products & systems to distribute and regulate liquid and gas flows

8 1H Markets Industrial Services Products, systems & processes for high-grade industries Semiconductor industry Automotive industry Medical sector Aerospace industry Defence industry Precision machining industry Sustainable energy And other industries

9 1H Markets Flow Control Products & systems to distribute and regulate liquid and gas flows Construction: New-build private residences Social housing Commercial buildings Renovation & Maintenance Utility networks District heating Fire safety and security Irrigation & spa/swimming pools And other industries

10 Financial Review

11 1H Financial headlines Sharp improvement of results Reduction of net debt by EUR 120m since 1H2009 Increase of working capital in line with organic growth Sharp decrease of leverage ratio < 3.0 Total equity improved to 40.2% of total assets Positive exchange rate impact: Exchange rates Average End of period GBP British pound 3% 5% USD US Dollar = 0% 15% PLN Polish zloty 12% 8% RUB Russian rouble 10% 15%

12 1H Income statement In EUR x million 1H2010 1H2009 Δ% Revenue % Operating profit (EBITDA) % Depreciation (32.8) (35.1) (7%) Operating profit (EBITA) % Net interest expense (13.9) (15.6) (11%) Other net finance cost (1.6) (1.3) Tax expenses (13.3) (3.3) Minority interest (1.1) (0.2) Net profit before amortisation %

13 1H Balance sheet ASSETS In EUR x million Goodwill Other intangible assets Property, plant and equipment Deferred income tax assets Non-current assets 1, , ,124.8 Inventories Trade receivables Other current assets Cash and cash equivalents Current assets TOTAL ASSETS 1, , ,690.3

14 1H Balance sheet EQUITY AND LIABILITIES In EUR x million Total equity Non-current borrowings Employee benefit plans Deferred income tax liabilities Other provisions Non-current liabilities Current borrowings Current portion of LT-borrowings Trade and other payables Other current liabilities Current liabilities TOTAL EQUITY AND LIABILITIES 1, , ,690.3

15 1H Cash flow statement In EUR x million 1H2010 1H2009 Operating profit (EBITDA) Provisions & result on sales of equipment (2.2) (2.1) Changes in inventories (35.8) 41.0 Changes in trade & other receivables (78.4) (32.6) Changes in trade & other payables 37.8 (35.7) Changes in working capital (76.4) (27.3) Cash flow from operations

16 1H Cash flow statement In EUR x million 1H2010 1H2009 Net finance cost paid (17.1) (19.7) Income taxes paid (11.4) (3.5) Acquisitions 0.2 (1.8) Capital expenditure (net of disposals) (24.6) (29.1) Proceeds from borrowings Repayments of borrowings (42.8) (39.0) Dividends paid (6.7) (10.7) Other cash flows (0.7) (1.1) Net cash flow (67.3) (60.4)

17 1H Key figures (1) In EUR x million 1H2010 1H2009 Δ% Added value as % of revenue Personnel expenses % of added value EBITDA as % of revenue EBITA as % of revenue Effective tax rate in % Earnings per ordinary share (EUR x 1) % Average number of shares issued % Number of employees (x 1) 10,568 10,140 4%

18 1H Key figures (2) In EUR x million 1H2010 1H2009 Δ% Capital expenditure (4%) Net working capital (4%) Cash flow from operations (21%) Total equity % Net debt (15%) Net debt / Total equity (Gearing) Leverage ratio (Net debt / EBITDA) Interest cover ratio Total equity as a % of total assets

19 1H Spread of revenue 1H2010 in EUR million 1H2010 as a % of revenue 1H2009 in EUR million 1H2009 as a % of revenue Germany Benelux France United Kingdom 1H10* EURm: United States 1H10* EURm: Eastern Europe 1H10* EURm: Scandinavia 1H10* EURm: Spain & Portugal Other European countries Other countries outside Europe TOTAL *at constant exchange rates

20 Spread of revenue 1H

21 Operational Developments

22 1H Industrial Services headlines Organic revenue 22.8% (at constant exchange rates) EBITA margin to 10.8% Focus on continuously increasing added-value margin by improving sales, quality and service Market conditions 1H2010 Semiconductor Automotive Precision engineering Medical Defence Aerospace Other Sharply risen demand Sharply risen demand Signs of recovery Reasonably stable Reasonably stable No improvement in certain segments Mixed picture

23 1H Industrial Services In EUR x million 1H2010 1H2009 Δ% Revenue % Operating profit (EBITDA) % EBITDA as a % of revenue Operating profit (EBITA) 24.3 (7.1) 556% EBITA as a % of revenue 10.8 (3.9) Capital expenditure % Depreciation (12%) Average number of employees (x1) 3,825 3,962 (3%) Employees at end of period (x1) 3,924 3,840 2%

24 1H Flow Control headlines Organic revenue 5.6% (at constant exchange rates) EBITA margin to 10.2% Challenging markets in most sectors Increased market share New own products Further intensifying of cross-selling Focus on strengthening sales force Efficiency measures Clustering of sales and distribution channels Intensifying key account management

25 1H Flow Control market conditions Market conditions 1H2010 Western & Northern Europe Eastern Europe Southern Europe United States Hesitant Hesitant, slight improvement Continued suffering from financial crisis Irrigation market shows signs of recovery Residential & commercial buildings markets still hesitant Asia Beer & soft drink industry Other Many golf course projects New projects for existing customers Mixed picture

26 1H Flow Control In EUR million 1H2010 1H2009 Δ% Revenue % Operating profit (EBITDA) % EBITDA as a % of revenue Operating profit (EBITA) % EBITA as a % of revenue Capital expenditure (6%) Depreciation (2%) Average number of employees (x1) 6,532 6,418 2% Employees at end of period (x1) 6,627 6,283 5%

27 Conbraco Industries, Inc. 27 Conbraco overview Conbraco Industries, Inc. (Apollo valves) was founded in 1928 by Clarence Mosack (grandfather of current generation) Leading manufacturer of a comprehensive line of valves Most important product groups: Ball valves Backflow preventers Pressure reducing valves, vacuum breakers Pipeline strainers, check valves Mixing valves Safety relief valves Heavy duty specialty valves The Apollo brand valves command a leading market position

28 Conbraco Industries, Inc. 28 Product groups -1- bronze carbon steel Ball valves 1/4 to 4 stainless steel bronze Backflow preventers 1/2 to 10 stainless steel iron stainless steel Pressure reducing valves 1/2 to 3 cast iron bronze Pipeline strainers 1/8 to 2 bronze

29 Conbraco Industries, Inc. 29 Product groups -2- bronze cast iron bronze Safety relief valves (steam, air and gas) 3/4 to 3 Mixing valves for water bronze stainless steel bronze cast iron Heavy duty specialty valves 1/2 to 12 stainless steel

30 Conbraco Industries, Inc. 30 Locations Corporate headquarters Bypass Bronze foundry Machining Matthews, North Carolina (4,360 m2) Pageland, South Carolina (17,160 m2) Pearl Street Engineering Product development Machining Assembly & testing Distribution Conway Steel & stainless steel foundry Teflon seal production Machining Assembly & testing Pageland, South Carolina (30,425 m2) Conway, South Carolina (31,330 m2)

31 Conbraco Industries, Inc. 31 Strategic opportunities Use strong brand name Apollo valves in US market Offer together with EPC Elkhart Products (metal fittings) and LASCO Fittings (plastic fittings and valves) a more complete portfolio to the commercial, residential, industrial and consumer (retail) market Develop the European market with Conbraco products: Ball valves Backflow preventers Safety relief valves Check valves and strainers Butterfly valves Pressure reducing valves Etc. Bundle raw material purchasing and realise savings The available technologies and experience in Flow Control to automate manufacturing/assembly of Conbraco Industries

32 The Aalberts Industries share

33 1H The Aalberts Industries share HY FY FY FY FY FY Average trading volume (in EUR 1,000) Closing share price (in EUR) Earnings per share (end of period, in EUR) 5,859 4,432 7,035 8,324 4,908 2, Share price / EPS Shares in issue (in million) Market capitalisation (in EUR million) ,140 1, ,387 1,609 1,095

34 1H The Aalberts Industries share Total number of outstanding shares as at 31 December ,060,577 Stock dividend over ,715 Total number of outstanding shares as at 30 June ,683,292 Shareholders interests as at 30 June 2010 Aalberts family 14,199, % Oppenheimer Funds 5,394, % FMR LLC 5,469, % FREE FLOAT 76.50%

35 Outlook

36 1H Outlook Structural cost reductions, organisational improvements and growth as a result of a more active market approach and earlier investments, have further strengthened Aalberts Industries foundations. Based on the current, but admittedly fluctuating, developments in the various markets and countries, and barring unforeseen circumstances, Aalberts Industries anticipates the result for 2010 will be significantly better than for Solid balance sheet ratios will be maintained through a continuing focus on profitability, working capital management and cost control.

37 Questions and Answers