Annual General Meeting of Shareholders. Hotel Figi Zeist, 24 May 2011

Transcription

1 Annual General Meeting of Shareholders 1 Hotel Figi Zeist, 24 May 2011

2 Agenda item 1 2 Opening Frank L.V. Meysman Chairman of the Supervisory Board Grontmij N.V. Voorzitter Raad van Commissarissen Grontmij N.V.

3 Agenda item 2 3 Presentation Executive Board Presentatie Raad van Bestuur Sylvo Thijsen CEO / Voorzitter Raad van Bestuur Grontmij N.V. Mel Zuydam CFO Grontmij N.V.

4 Grontmij Strategic Overview 4 Sylvo Thijsen CEO / Voorzitter Raad van Bestuur Grontmij N.V.

5 Grontmij at a Glance Founded in 1915 Strong European regional network 300 offices in Europe 50 offices RoW* 4 Business Lines Planning & Design Transportation & Mobility Water & Energy Monitoring & Testing 11,000 people Principle regions: Benelux France Nordic UK, Central & Eastern Europe RoW* 5 * RoW: : rest of the World

6 6

7 Strategy timeline Our people Revenue (x 1 mln)

8 2010 a Transformational year We continued to face difficult trading conditions 8 We restructured our resource levels to lower levels of activities We transformed the organisation from regions to business lines We acquired a listed French engineering company We launched a new business line Monitoring & Testing: - Materials testing, certification, inspection - Focus on asset lifecycle maintenance

9 Highlights

10 Highlights

11 Our Strategy : Corner Stones Sustainability as core-principle Focus on Differentiation and Profitable Services Optimise Local Market Positions and Increase Efficiency Organic Growth & Acquisitions Cross-border selling and Knowledge sharing Create value for: Shareholders, Customers, Employees 11 Planning & Design Transportation & Mobility Water & Energy Monitoring & Testing Involved in developing the highest hotel of Scandinavia, the Bella Sky Hotel (Denmark) The highway N23, making energy from asphalt (the Netherlands) A unique innovative product of Grontmij, the full automatic water barrier, extra (the Netherlands) Renovating the Mont Blanc motorway (France)

12 Our strategy as per January

13 Ambitious Targets Financial Goals: EBITA Margin on Total Revenues 9 10% by 2015 Increase of Total Revenues 10 15% (average per year incl. acquisitions) Solvency 25 30% Interest cover (EBIT / Interest) >5

14 : Step by Step Growing Stronger 14 Profit before revenue Growth in steps Portfolio management EBITA % Cash is King! 4% 6% Horizon 1 Extend and defend core business TODAY 6% 8% Horizon 2 Build emerging business TOMORROW 8% 10% Horizon 3 Create viable options

15 Our Strategy : Process of Internationalisation 15

16 Our Organisation 16

17 Our 4 Business Lines Planning & Design Water & Energy 17 Bella Sky Hotel - Copenhagen Transportation & Mobility Wastewater treatment - Duisburg Monitoring & Testing N-28 Leeuwarden North-South line Amsterdam

18 Changing Market Requirements 18 Value added consulting From To Structural Design Electrical Structural Design Electrical Indoor climate Energy efficient design Safety Life cycle costing Heating + Sanitation Heating + Sanitation Sustainable design

19 Changing Market Requirements 19 Life cycle perspective From To Pre-project Design Operational / maintenance Pre-project Design Operational / maintenance Life cycle / maintenance / relationship focus

20 Profile of the combination Improving market coverage in Europe, strong position in French market The combination of the companies creates a leading player in the European market 1 - Almost 300 offices (worldwide over 350) - Nearly 11,000 professionals Grontmij Ginger Europe Grontmij and Ginger 20 New home market in France offices - More than 2,000 professionals (France) No activities Additionally - 14 regional multi-business platforms - 40 regional laboratories Access to emerging markets - Strong position in Eastern Europe - Complementary offices in Russia, Poland and Romania - Offices in French overseas territories Source: Company information 1. Including Coplan acquisition Source: Company information

21 Ranking European consulting engineers: Grontmij claims 4 th place Revenue 2009 (EURm) th place Source: ENR Top 200 Global Design Firm, Grontmij 1. Slide used at time of acquisition Ginger (June 2010) 2. Including Coplan acquisition

22 Our Strategy as per January

23 Planning & Design 23 Restructuring Berger car park in famous district les Halles, Paris N-28 Leeuwarden Designing a sustainable stone factory in Bayburt, Turkey

24 Transportation & Mobility 24 Advising city of Nice (France) on future tram routes Working for Highways Agency to improve strategic road network in UK N-28 Leeuwarden

25 Water & Energy 25 Establishing a Combined Heat & Power plant for Munich Airport N-28 Leeuwarden Advising IVG Caverns on the expansion of cavern fields in Etzel, Germany

26 Monitoring & Testing 26 Providing qualification of concrete in the La Defense quarter, Paris Providing for the demolition of a concrete chimney, Corbehem, France N-28 Leeuwarden

27 Corporate Social Responsibility 27

28 Corporate Social Responsibility 28

29 Business line development Full Year 2010 v EBITA as % of total revenue 20.0% 15.0% 15.0% 10.0% 10.1% 9.6% 10.6% Goal for % 5.8% 4.6% 5.8% 2.8% 0.0% P&D T&M W&E M&T Transportation & Mobility and Monitoring & Testing above 10% margin Goal for 2015 to move Planning & Design and Water & Energy up to that level

30 Q1 Market conditions continued improvement 3 month rolling forward order book: Stable, pipeline improving, pricing competitive 30 Planning & Design Transportation & Mobility Water & Energy Monitoring & Testing Nordic Denmark 72% 86% 86% Sweden 78% 86% 62% Developing Developing Continued improvement, Planning & Design still volatile, Transport strong Benelux Netherlands 55% 104% 61% 86% Belgium 143% 99% 86% Developing Planning & Design in Netherlands remains volatile UK & CEE UK 65% 65% 86% Germany 86% 91% 86% CE 90% 90% 89% Developing Developing Developing UK continues to stabilise, good orders in Transport, water continues to pick up France 86% Developing Developing 86% Strong RoW 86% 86% 86% 86% 0% Poor (< 60%) 70% OK (60-85%) 90% Good (> 85%)

31 Client base first quarter Excluding Ginger 31 International clients 5% Utilities 16% Total revenue split by client base National government 16% International clients 4% Utilities 11% Transportation & Mobility National government 23% National clients 38% 59%(56%) Private 41% (44%)Public Local government 25% National clients 35% 50%(44%) Private 50% (56%)Public Local government 27% Utilities 25% Water & Energy National government 13% Local government 15% International clients 2% Utilities 12% Planning & Design National government 13% International clients 12% 72%(72%) Private 28% (28%)Public National clients 35% National clients 43% 57%(52%) Private 43% (48%)Public Local government 30%

32 Full year results Highlights Reflecting difficult trading conditions and transformational year Total Revenue + 15% 922 m (2009: 800 m) 32 Underlying EBITA +4% 46.5 m (2009: 44.7 m)* Underlying EBITA margin 5.0% (2009: 5.6%)* Profit after tax 17.3 m (2009: 20.4 m) - Including non-recurring items & EAI (8.3)m (2009: (3.7) m) EPS 0.87 (2009: 1.14) Dividend 0.50 per share (2009: 1.00) reflecting payout ratio of 61% (2009: 88%; 2008: 53%) * Before exceptional/non-recurring items & EAI

33 Results 2010: Headlines 33 Mel Zuydam CFO Grontmij N.V.

34 Full year 2010 Profit & Loss Account Full year results Profit and Loss account million Total revenue Net revenue Gross Margin Gross Margin % 26.3% 26.2% Underlying EBITDA Underlying EBITA % total revenue 5.0% 5.6% % net revenue 6.5% 7.1% Results from EAI Divestments Restructuring Aquisition & refinancing costs Sub-total Amortisation Finance result Income tax expense Effective tax rate 27.9% 27.2% Profit after Tax Gross margin maintained at 26% - Actions to reduce surplus resource Underlying EBITA margin 5% - On net revenue 6.5% Exceptional items/ EAI - Main differences were acquistion and refinancing costs and profit on sale item in 2009 Provisional PPA for acquisition k of amortisation for half year on intangibles Finance result (7.2)m - Includes 1m amortisation of new arrangement fees 34

35 Full year 2010 Business lines Revenue EBITA Margin Revenue EBITA Margin m m % m m % Planning & Design % % Transportation & Mobility % % Water & Energy % % Monitoring & Testing % % Telecoms % Other/non core/hq Total Restructuring, acquistion costs, EAI: Underlying EBITA % % Increased Revenue in Planning & Design and Monitoring & Testing due to acquisition Transportation & Mobility flat, maintaining 9.6% margin Water & Energy lower due to slow pick up of AMP5 in UK Monitoring & Testing 10.6% margin

36 Full year 2010 Regions Revenue EBITA Margin Revenue EBITA Margin m m % m m % Nordic % % Benelux % % UK & CEE % % France % Telecoms % Other/HQ Total Restructuring, acquistion costs, EAI: Underlying EBITA % % Nordic: Slow first half, recovering second half for Denmark and Sweden Benelux: Reduction in costs in the Netherlands including non-core, strong second half Belgium UK & CEE: Slow pick up in AMP 5 in UK, strong in Germany and Poland Other non core/ HQ: Divestment of non core assets in first half 2010

37 Full year 2010 Balance sheet extract Balance sheet extract 31 December million Intangible assets & Goodwill Grontmij - Work in progress 8 (4) Ginger - Work in progress 17 - Total work in progress 25 (4) Intangible assets & goodwill 259 m - Increase due to acquisition - Goodwill per IFRS 3 at point of acquiring controlling interest Telecoms as asset held for sale (excluded) 37 Inventories Grontmij - Trade Receivables Ginger - Trade Receivables 60 - Total trade receivables Grontmij - Net debt (81) (75) Net acquisition debt (85) - Ginger - Net debt (28) - Total net debt (194) (75) Grontmij - Cash Ginger - Cash 25 - Total cash Work in progress 25 m Receivables 198 m Net debt (194) m - Small increase apart from acquisition effects

38 Dividend and Earnings per share - trend 38 Dividend per share in Earnings per share in Pay out ratio: 57% 60% 53% 88% 61%

39 First Quarter 2011 Profit & Loss Account First quarter results Profit and Loss account million Total revenue Net revenue Gross Margin Gross Margin % 26.0% 26.6% Underlying EBITDA Underlying EBITA % total revenue 4.2% 4.3% % net revenue 5.3% 5.2% Results from EAI Restructuring (1.0) (1.0) Amortisation (1.9) (1.7) Finance result (3.6) (0.8) Income tax expense (1.3) (1.4) Gross margin maintained at 26% - Actions to reduce surplus resource Underlying EBITA margin 4.2% - On net revenue up to 5.3% Exceptional items/ EAI - Redundancies UK and NL Amortisation includes 0.2 m for Ginger intangibles Finance result (3.6) m - Current cost of higher leverage 39 Effective tax rate 27% 27% Profit after Tax

40 First quarter 2011 Business lines 40 Q Q m Revenue Underlying EBITA Margin % Revenue Underlying EBITA Margin % Planning & Design % % Transportation & Mobility % % Water & Energy % % Monitoring & Testing % % Telecoms % Other/non core/hq 2.9 (2.6) 8.6 (3.3) Total Group % % Organic growth in Transportation & Mobility and Water & Energy Monitoring & Testing trading well; 2010 numbers pro-forma

41 First quarter 2011 Regions 41 Regions Nordic Benelux UK & CEE France million Total revenue Underlying EBITA % of Total revenue 5.0% 1.1% 7.9% 10.5% 2.2% 5.0% 3.9% Nordic Much stronger performance Benelux Uncertainty in planning and design, and pension costs in The Netherlands UK & CEE Still low levels of trading in UK France Trading well, and improving performance

42 First quarter 2011 Balance sheet extract 42 Balance sheet extract 31 March million Intangible assets & Goodwill Grontmij - Work in progress Ginger - Work in progress 29 Total work in progress Inventories Grontmij - Trade Receivables Ginger - Trade Receivables 62 Total trade receivables Grontmij - Net debt (94) (107) Net acquisition debt (85) Ginger - Net debt (26) Total net debt (205) (107) Grontmij only: - Work in progress 47 m - Receivables 113 m - Net debt (94) m Business growth with more working capital Reduction in Net debt of 13 m Grontmij - Cash Ginger - Cash 37 Total cash 72 25

43 Management actions 43 Further reductions in direct and indirect resource where necessary - Gross margins maintained Improved internal & external reporting transparency - Business lines and regions - Three month forward orders Implemented new Treasury strategy with re-financing Continual improvement in corporate support services framework

44 Outlook 44 Sylvo Thijsen - CEO

45 Outlook 2011 Business Lines: Planning & Design strengthening some regions, still uncertain in The Netherlands Transportation & Mobility remains strong Water & Energy continueing to strengthen Monitoring & Testing developing & growing 45 Regions: Nordic region trading well France trading strongly Germany, Poland & Belgium trading strongly The Netherlands and UK continued tough trading conditions Outlook 2011: Continued focus on cash management, further organic growth

46 Agenda items Frank L.V. Meysman Chairman of the Supervisory Board Grontmij N.V. Voorzitter Raad van Commissarissen Grontmij N.V.

47 Agenda item 3 47 Report 2010 and adoption annual accounts 2010 a. Report of the Supervisory Board and report of the Executive Board for the financial year 2010 b. Corporate Governance c. Adoption of the annual accounts 2010 Jaarverslag 2010 en vaststelling jaarrekening 2010 a. Verslag van de Raad van Commissarissen en verslag van de Raad van Bestuur over het boekjaar 2010 b. Corporate Governance c. Vaststelling van de jaarrekening 2010

48 Remuneration 48 Current remuneration policy adopted by AGM in May 2005 with amendments in August 2006 and May 2007 Current policy reviewed by Supervisory Board in 2009 (no amendments), will be reviewed again in 2011/2012 In view of economic climate - No increase of fixed annual salary in ROIC added as target for performance dependent bonus

49 Composition Supervisory Board 49 Mr Lindquist retires as member of the Supervisory Board in accordance with the rotation schedule. He is not up for reappointment because of his workload in Sweden. Volgens het rooster treedt de heer Lindquist af als lid van de Raad van Commissarissen. Hij is niet herverkiesbaar in verband met drukke werkzaamheden in Zweden.

50 Agenda item 4 50 Declaration of dividend 2010 Vaststelling dividend 2010

51 Dividend proposal Dividend per share 2011: 0.50 (in stock or cash) Payment date: 15 June Dividend per aandeel: 0,50 (in aandelen of contanten) Betaalbaarstelling: 15 juni 2011 Dividend per share in Pay out ratio: 57% 60% 53% 88% 61%

52 Agenda item 5 52 Discharge a. Discharge of the members of the Executive Board b. Discharge of the members of the Supervisory Board Decharge a. Decharge van de leden van de Raad van Bestuur b. Decharge van de leden van de Raad van Commissarissen

53 Agenda item 6 53 Composition of the Executive Board a. Appointment Mr G.P. Dral b. Appointment Mr J.L. Schnoebelen Samenstelling Raad van Bestuur a. Benoeming van de heer G.P. Dral b. Benoeming van de heer J.L. Schnoebelen

54 Agenda item 7 54 Extension designation Executive Board as the body authorised to issue shares and to limit or exclude preferential right a. Extension of the designation of the Executive Board as the body authorised to issue ordinary shares. b. Extension of the designation of the Executive Board as the body authorised to limit or exclude the preferential right. Verlenging aanwijzing Raad van Bestuur als het orgaan dat bevoegd Is te besluiten tot uitgifte van aandelen en beperking of uitsluiting van voorkeursrecht a. Verlenging van de aanwijzing van de Raad van Bestuur als het orgaan dat bevoegd is te besluiten tot uitgifte van gewone aandelen. b. Verlenging van de aanwijzing van de Raad van Bestuur als het orgaan dat bevoegd is te besluiten tot beperking of uitsluiting van het voorkeursrecht.

55 Agenda item 8 55 Authorisation of the Executive Board to acquire own shares or depositary receipts for such shares by the company. Machtiging van de Raad van Bestuur tot het verkrijgen door de vennootschap van eigen aandelen of certificaten daarvan.

56 Agenda item 9 56 Assignment accountant to audit the annual accounts for 2011 Verlening opdracht aan accountant tot onderzoek van de jaarrekening 2011

57 Agenda item Any other matters Rondvraag

58 Agenda item Conclusion Sluiting