Aalberts N.v. · EURONEXT:AALB
Aalberts — Investor Day (December 2021)
31 slides from Aalberts's investor day presentation, Dec 2, 2021
Slide 1: Aalberts 'accelerates unique positioning'
Aalberts ‘accelerates unique positioning’ capital markets day, 2 December 2021
Slide 2: Agenda
agenda Aalberts strategy & objectives financial development key takeaways questions & answers 2 December 2021 Aalberts ‘accelerates unique positioning’ 2
Slide 3: Aalberts
A aalberts Aalberts Wim Pelsma - CEO
Slide 4: You will find Aalberts where technology matters and real progress can be made
“you will find Aalberts where technology matters and real progress can be made” humanly, environmentally and financially
Slide 5: The essence
the essence we engineer mission-critical technologies enabling a clean, smart and responsible future we are a company of mission-critical people who can’t resist going beyond the line of duty - good is never good enough sharing and discussing ‘bad’ gets us to brilliant – greatness is made of shared
Slide 6: Our way of value creation
our way of value creation o unique positions with sustainable impact mission-critical o high entry barriers, pricing power, high added-value technologies o sustainable, profitable growth o operational excellence, world-class operations good is never o continuous EBITA margin improvement good enough
Slide 7: Our way of value creation
our way of value creation the Aalberts playing field the Aalberts playbook the Aalberts way shaping eco-friendly buildings driving sustainable transportation increasing enhancing semicon efficiency industrial niches mission-critical technologies greatness is made good is never good enough of shared
Slide 8: The Aalberts playing field
the Aalberts playing field we engineer mission-critical technologies enabling a clean, smart and responsible future shaping eco-friendly buildings driving sustainable transportation increasing enhancing semicon efficiency industrial niches you will find Aalberts where technology matters and real pro
Slide 9: Megatrends shaping our future
the Aalberts playing field megatrends shaping our future energy & resource scarcity saving energy, lowering waste, reshoring and making materials urbanisation lightweight and durable internet of things strong need for comfortable accelerating breakthroughs and healthy buildings and enabling autonomo
Slide 10: The Aalberts playbook: good is never good enough
the Aalberts playbook good is never good enough winning with the best teams compounding returns operational excellence | leverage relentless pursuit strong cash conversion of excellence disciplined capital allocation strong free cash flow portfolio optimisation portfolio optimisation focus leverage
Slide 11: Innovation drives our growth
the Aalberts playbook innovation drives our growth >20% % 15% innovation rate innovation expenditure >5% of revenue 2 December 2021 Aalberts ‘accelerates unique positioning’ 11
Slide 12: The Aalberts way: greatness is made of shared knowledge
the Aalberts way greatness is made of shared knowledge be an entrepreneur take ownership go for excellence share and learn act with integrity the Aalberts way – winning with people 2 December 2021 Aalberts ‘accelerates unique positioning’ 12
Slide 13: Greatness is made of shared knowledge
the Aalberts way greatness is made of shared knowledge “ our pragmatic culture and lean structure keep us ahead of the game, no matter how frequently or significantly the game is disrupted “ 2 December 2021 Aalberts ‘accelerates unique positioning’ 13
Slide 14: Strategy & objectives
strategy & objectives Wim Pelsma - CEO
Slide 15: Aalberts strategy & objectives
Aalberts strategy & objectives accelerating unique positions with mission-critical technologies, high entry barriers and pricing power creating sustainable profitable growth with high added-value margins, EBITA margins and innovation rates driving operational excellence and portfolio optimisation co
Slide 16: Strategic actions 2022-2026
strategic actions 2022-2026 » further optimise existing portfolio continue portfolio » finalise existing divestment programme 1 optimisation » additional divestment programme EUR 250-300 million revenue » strengthen positions through bolt-on acquisitions, EUR 250-500 million revenue » focus on 4 tec
Slide 17: Continue portfolio optimisation
1 continue portfolio optimisation mission-critical technologies unique positions with high growth potential and sustainable impact 2 December 2021 Aalberts ‘accelerates unique positioning’ 17
Slide 18: Increase organic revenue growth
2 increase organic revenue growth 22% 6% 12% 10% 9% 5% 8% 8% addressable market addressable market addressable market addressable market EUR 2.5+ billion EUR 5.0+ billion EUR 6.5+ billion EUR 12+ billion our goal >30% our goal >15% our goal >20% our goal >15% unique positions with high growth potent
Slide 19: Relentless pursuit of operational excellence
3 relentless pursuit of operational excellence 156 locations manufacturing 135 locations 63 manufacturing 108 locations 51 manufacturing 31 acquisitions +8 service continuously upgrading to 93 ‘world-class’ operations service service 76 77 2019 end of 2021 end of 2026 continuously improving portfoli
Slide 20: Drive sustainable entrepreneurship: SDG impact increases to >70%
4 drive sustainable entrepreneurship SDG impact increases to >70% mission-critical technologies our playing field creating energy savings hydronic flow control eco-friendly buildings hygienic distribution of water integrated piping systems semicon efficiency acceleration of technological breakthroug
Slide 21: Net zero carbon roadmap
4 drive sustainable entrepreneurship net zero carbon roadmap net zero carbon focus projects per business team 2018-2022 2022-2026 2040 2050 scope 1+2 • drive energy efficiency progress target energy use (in CO2 intensity)** • use renewable energy 8%* 30% versus 2018 versus 2018 • reduce, reuse, re
Slide 22: Financial development
financial development Arno Monincx - CFO
Slide 23: Financial assumptions 2022-2026
financial assumptions 2022-2026 o continue portfolio optimisation » finalise existing divestment programme » additional divestment programme EUR 250-300 million revenue » strengthen positions through bolt-on acquisitions, EUR 250-500 million revenue o increase organic revenue growth » increase innov
Slide 24: Aalberts objectives
Aalberts objectives organic revenue growth EBITA margin ROCE (% annually) (% of revenue) 4-6% 16-18% 18-20% innovation rate SDG rate leverage ratio (% of revenue) (% of revenue) >20% >70% <2.5 we are relentless in our pursuit of excellence 2 December 2021 Aalberts ‘accelerates unique positioning’ 24
Slide 25: Disciplined capital allocation
disciplined capital allocation cash dividend policy 30% of net profit before amortisation organic revenue growth capital expenditure EUR 200-250 million per year acquisitions | bolt-on 'sweetspot’ deployment EUR 50-250 million per year size EUR 20-100 million annual revenue acquisitions | strategic
Slide 26: Our track record: over 45 years of sustainable profitable growth
our track record over 45 years of sustainable profitable growth multi-industry focus portfolio growth focus mission-critical technology focus 3000 600 2,610 2,475 2500 revenue (in EUR million) 500 EBITA (in EUR million) 2000 400 1,683 1500 283 300 272 1,055 1000 200 180 474 120 500 100 166 59 22 0 1
Slide 27: Our track record: shareholder value creation
our track record shareholder value creation earnings per share dividend per share ROICE long-term shareholders (in EUR) (in EUR) (before IFRS 16) (>3% holdings) 1.81 1.72 0.60 capital 0.52 EBITA employed 1.10 180 2010 1,339 0.28 283 2020 2,406 103 1,067 2010 2015 2020 2010 2015 2020 CAGR 17% CAGR
Slide 28: Our segment reporting structure
our segment reporting structure building technology industrial technology hydronic flow control advanced mechatronics integrated piping systems surface technologies revenue organic growth EBITA margin capital expenditure revenue organic growth EBITA margin capital expenditure (in EUR million) (% of
Slide 29: Key takeaways
key takeaways Wim Pelsma - CEO
Slide 30: Key takeaways
key takeaways 1 continue optimising our portfolio 2 accelerate our unique positions with high growth potential and sustainable impact 3 allocate our capital and management accordingly 4 increase organic revenue growth 5 continue our relentless pursuit of operational excellence 6 drive sustainable en
Slide 31: Questions & answers
A aalberts questions & answers