Aalberts N.v. · EURONEXT:AALB
Aalberts — Investor Day (December 2024)
74 slides from Aalberts's investor day presentation, Dec 10, 2024
Slide 1: thrive 2030 – Aalberts capital markets day
thrive 2030 Aalberts capital markets day 10 December 2024, Eindhoven
Slide 2: today's agenda
today’s agenda introduction our journey the road ahead industry semicon building Q&A 9.30 AM 10.15 AM 11.15 AM 1 2 3 4 5 6 7 Stéphane Simonetta Arno Monincx Oliver Jäger Patrick de Groot Maarten van de Veen CEO CFO CEO CEO CEO surface advanced hydronic technologies mechatronics flow control 10 Decem
Slide 3: key message
key message 1 on track and committed to realise 2026 targets, new strategic horizon 2025-2030 2 well positioned for growth, tailwind in attractive end markets with leadership positions 3 stakeholder value creation through balanced capital allocation, M&A as accelerator 4 a simplified reporting struc
Slide 4: what's new today?
what’s new today? 3 segments capital allocation 2030 industry reporting increased policy including long-term semicon frequency transparency share buyback targets building bringing focus and transparency 10 December 2024 Aalberts capital markets day 'thrive 2030' 4
Slide 5: CEO top of mind
CEO top of mind o1 drive growth, enhancing leadership positions in attractive markets o2 rebalance portfolio with clear strategic choices and disciplined capital allocation o3 accelerate innovation (products, services & digital offerings) o4 accelerate operational excellence o5 build high-performanc
Slide 6: CEO top of mind
CEO top of mind continue accelerate portfolio optimisation our purpose and values stronger focus on 3 end markets what keeps us united with clear strategic choices winning with people and disciplined capital allocation our lean and effective structure technology and innovation full end-to-end accoun
Slide 7: Aalberts 2026 objectives
Aalberts 2026 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 on track and committed to reach our 2026 targets 10 December 2024 Aalberts capital markets day 'thrive
Slide 8: the Aalberts playing field
the Aalberts playing field we engineer mission-critical technologies enabling a clean, smart and responsible future building industry semicon you will find Aalberts where technology matters and real progress can be made 10 December 2024 Aalberts capital markets day 'thrive 2030' 8
Slide 9: Aalberts at a glance
Aalberts at a glance revenue (EUR) mission-critical people nationalities locations worldwide 3+ billion 14k+ 40+ 130+ SDG impact 16% America Europe 23% 71% of total revenue of total revenue 32% APAC, Middle East, Africa 13% 6% of total revenue 9% industry 36% semicon 14% building 50% % = revenue sha
Slide 10: thrive 2030
thrive 2030 refocus. rebalance. recharge.
Slide 11: unleashing our full potential
unleashing our full potential accelerate unique positioning thrive 2030 >4.5 >18% EUR billion 4-6% 16-18% organic annually revenue EBITA % revenue EBITA % 2022-2026 2025-2030 committed to reach our 2026 targets, raising the bar for 2030 10 December 2024 Aalberts capital markets day 'thrive 2030' 11
Slide 12: capital allocation priorities
capital allocation priorities operational excellence innovation strategic M&A industry growth and margin USA expansion expansion safety, sustainability semicon and productivity new products, portfolio and South-East solutions, digital offering Asia expansion capacity and footprint expansion business
Slide 13: thrive 2030
thrive 2030 refocus. rebalance. recharge.
Slide 14: our mission and values
our mission and values our values our stakeholders be an entrepreneur shareholders take ownership society customers go for excellence share and learn partners employees act with integrity what unites us 10 December 2024 Aalberts capital markets day 'thrive 2030' 14
Slide 15: the Aalberts way
the Aalberts way speed and agility global scale end-to-end expertise and accountability financial strength rapid growth functional local presence and excellence customer proximity drive synergies the Aalberts way as our differentiator 10 December 2024 Aalberts capital markets day 'thrive 2030' 15
Slide 16: three phases of evolution
three phases of evolution I II III group of companies 4 tech clusters 3 business segments 2 1 1 1 1975 2012 2024 2030 financial holding with head office with head office with decentralised structure leadership networks functional excellence lean and effective structure, enhancing the Aalberts way 10
Slide 17: building a diverse and experienced executive team
building a diverse and experienced executive team Stéphane Simonetta Oliver Jäger Patrick de Groot Maarten van de Veen Jacob Speight* Roland Voermans* CEO surface advanced hydronic integrated piping integrated piping technologies mechatronics flow control systems Americas systems EMEA/APAC Arno Moni
Slide 18: invest in a future-proof workforce
invest in a future-proof workforce 1 2 3 4 5 health & safety employer succession learning and employee and well-being branding planning development engagement enabling next growth phase by developing talents and adding capabilities 10 December 2024 Aalberts capital markets day 'thrive 2030' 18
Slide 19: invest in customer-centric supply chain
invest in customer-centric supply chain S Q D I C P sustainability quality delivery inventory cost people framework focus people quality portfolio end-to-end strengthen and planet excellence rationalisation supply chain capabilities continuous improvement culture 10 December 2024 Aalberts capital ma
Slide 20: drive cost-out excellence and inventory optimisation
drive cost-out excellence and inventory optimisation I II III operations purchasing & inventory productivities cost saving optimisation plant conversion costs sourcing excellence sales inventory operation planning continuous improvement strengthen capabilities (SIOP) quality excellence category mana
Slide 21: innovate to differentiate
innovate to differentiate industry semicon building customer need enable decarbonisation design to value enable energy transition journey of our customers long-term partnership tackle labour shortages invest in digital offering our focus invest in R&D and invest in subsystem integration integrated s
Slide 22: thrive 2030
thrive 2030 refocus. rebalance. recharge.
Slide 23: our end markets remain attractive
our end markets remain attractive … industry semicon building CAGR >4% CAGR >8% CAGR >4% CAGR 2025-2030 external market intelligence 10 December 2024 Aalberts capital markets day 'thrive 2030' 23
Slide 24: driven by four global tailwinds
driven by four global tailwinds … urbanisation technology reshoring decarbonisation acceleration strong need for comfortable regionalisation of growing demand for and healthy buildings, exponential need for AI critical manufacturing energy efficiency and sustainable transportation computing power, s
Slide 25: with multiple leadership positions
with multiple leadership positions industry semicon building specialised heat treatment ultra-precision large frames critical boiler room equipment galvanic / bath treatment active vibration isolation heat water treatment chemical treatment conditioned modules underfloor heating systems aluminium ex
Slide 26: market attractiveness
rebalance portfolio improve optimise cash invest or divest and margins and grow market attractiveness market size, CAGR, EBITA, ESG illustrative ability to win relative market share, path to leadership, growth vectors continuous optimisation of portfolio and strategic deployment of capital 10 Decemb
Slide 27: continuous portfolio optimisation
continuous portfolio optimisation market attractiveness ability to win fit within Aalberts market size market position ESG and growth path to leadership profile margin and attractive best cash profile growth vectors parent clear choices to achieve leadership positions 10 December 2024 Aalberts capit
Slide 28: double revenue North America by 2030
double revenue North America by 2030 exciting market dynamics growth initiatives organic o innovation growth USA market o leverage market growth o gain market share expected building boom operational excellence o delivery & quality o footprint expansion ‘buy American’ policy o localisation reshoring
Slide 29: rebalance portfolio
rebalance portfolio today 2030 industry semicon building more balanced revenue 10 December 2024 Aalberts capital markets day 'thrive 2030' 29
Slide 30: sustainability as a growth driver
realise sustainable commitments sustainability as a growth driver SDG impact net zero carbon circular economy water use >70% of revenue be net zero carbon use natural resources reduce water withdrawal linked to SDGs by 2050, or earlier as efficient as possible increase water treatment supporting our
Slide 31: net zero carbon roadmap
net zero carbon roadmap net zero carbon focus initiatives 2022-2026 targets 2030 2050 scope 1+2 o drive energy efficiency energy use continue o electrification progress33% intensity50% in CO2 intensity and absolute progress o use renewable energy 2023 versus 2018 versus 2018 raw materials o reduce
Slide 32: thrive 2030 – Arno Monincx
thrive 2030 refocus. rebalance. recharge. Arno Monincx
Slide 33: key message
key message 1 track record of delivering results and meeting commitments 2 disciplined capital allocation, focus on sustainable profitable growth for 2025–2030 3 strong financial position to execute our growth agenda 4 divestment programme to even accelerate our market positions with acquisitions 5
Slide 34: financial foundations
financial foundations organic growth o drive business plans, allocate capital and management accordingly o drive lean programmes with conversion cost productivity and supply chain excellence portfolio optimisation o strengthen leadership positions through M&A with EUR 800-1,000 million revenue o add
Slide 35: Aalberts objectives 2030
Aalberts objectives 2030 revenue (in EUR billion) >4.5 EBITA margin (% of revenue) >18% free cash flow conversion ratio >65% ROICE (10-year period) >18% leverage ratio <2.5 raising the bar - thrive 2030 10 December 2024 Aalberts capital markets day 'thrive 2030' 35
Slide 36: disciplined capital allocation
disciplined capital allocation cash dividend policy 30% of net profit before amortisation organic revenue growth capital expenditure EUR 250-300 million annually acquisitions & divestments deployment EUR 200-250 million annually share buyback when excess cash available to benefit shareholders streng
Slide 37: our M&A playbook
our M&A playbook M&A playbook M&A focus 2025-2030 1 2 building pr oce ss disciplined » adjacencies ‘source to emitter’ portfolio cla r it y execut ion » footprint expansion USA robust pipeline thoroughly select semicon additional resources execute diligently » footprint expansion South-East Asia » c
Slide 38: new reporting calendar
new reporting calendar press release press release press release press release financial financial statements statements segment segment segment segment reporting reporting reporting reporting 3 5 6 4 FY 2024 Q1 2025 1H 2025 Q3 2025 27 February 2025 quarterly reporting for all 3 business segments 10
Slide 39: recharge industry
recharge industry Oliver Jäger
Slide 40: how we serve our industry customers
how we serve our industry customers at the forefront of decarbonising industries, we engineer durable, lightweight technologies and improve material characteristics we enable industrial customers to extend product lifetime and realise energy efficiency enhancing product lifetime enabling weight redu
Slide 41: industry - key message
industry - key message 1 electric/hybrid vehicles, air travel and reshoring drive growth 2 expansion in USA, Mexico, and Eastern Europe accelerates market presence 3 advanced technologies: HIP, anodizing, brazing and reel-to-reel processes 4 strategic focus on innovation, capacity expansion and M&A
Slide 42: industry at a glance
industry at a glance mission-critical people locations worldwide 6,000+ 87 service 15 sites America Europe 23% 68% of total revenue of total revenue APAC, Middle East, Africa 9% of total revenue surface technologies 63% automotive 41% stamping and extrusion 18% aerospace & power gen 12% industrial p
Slide 43: how we create value in industry
how we create value in industry surface technologies stamping and extrusion industrial products heat treatment precision extrusion maritime fuel efficiency sensors surface treatment co-engineering & robotisation mobility air conditioning valves polymer technologies complex stamping hydrogen mobility
Slide 44: exciting industry market dynamics
exciting industry market dynamics automotive aerospace maritime machine build CAGR CAGR CAGR CAGR >4% >6% >7% >5% leadership positions in attractive end markets 10 December 2024 Aalberts capital markets day 'thrive 2030' 44
Slide 45: tailwinds in industry
tailwinds in industry growing need higher complexity need for strong focus on for more and supply chain supply chain CO2 and weight sustainable interdependencies proximity reductions mobility urbanisation technology acceleration reshoring decarbonisation uniquely positioned to capitalise on each one
Slide 46: growth initiatives in industry
growth initiatives in industry aalberts.com/cmdvideo HIP capacity expansion Hungary capacity expansion new braking disc system Mexico expansion reel-to-reel aalberts.com/cmdvideo aalberts.com/cmdvideo acquisition thermal spray USA aluminium extrusion frames digital offerings ship owners hydrogen mob
Slide 47: our competitive advantage in industry
our competitive advantage in industry global service deep industry frontrunner combined expertise to network, sustainable offering of engineering offer tailormade processes, highly specialised partner for processes and strong position surface technologies global key accounts innovations aluminium un
Slide 48: recharge industry
recharge industry business development e-mobility, agriculture, aerospace and maritime decarbonisation of industry including weight reduction and lifetime extension industrial reshoring Europe and USA, supported by tailwind scope 3 market consolidation (in)organic growth and operational excellence 1
Slide 49: recharge semicon
recharge semicon Patrick de Groot
Slide 50: how we serve our semicon customers
how we serve our semicon customers in a world connected by microchips, we engineer leading-edge, tailor-made technologies together with semicon OEM’s we support OEM growth by accelerating technological breakthroughs delivering ultra-precision and ultra-cleanliness enabling accuracy and control facil
Slide 51: semicon - key message
semicon - key message 1 attractive market, growing to USD 1 trillion in 2030 2 tailwind new applications (IoT, autonomous driving, generative AI, 5G) 3 leading position in key areas to facilitate customer technology roadmaps 4 accelerate M&A and strategic footprint expansion to enable OEM ramp 5 uni
Slide 52: semicon at a glance
semicon at a glance mission-critical people locations worldwide 1,500+ 7 America Europe 4% 91% of total revenue of total revenue APAC, Middle East, Africa 5% of total revenue machine conditioning 40% lithography 59% frames & modules 22% non-lithography 28% mechatronic technologies 38% other industri
Slide 53: how we create value in semicon
how we create value in semicon precision frames & modules machine conditioning mechatronic technologies lithography frames and modules industrialisation of designs active vibration isolation full-functional modules fluid/gas handling components (yield improvement) (integrated testing and validation)
Slide 54: exciting semicon market dynamics
exciting semicon market dynamics semicon market semicon production equipment (SPE) CAGR CAGR >8% >10% semicon market expected to exceed $1 trillion by 2030 10 December 2024 Aalberts capital markets day 'thrive 2030' 54
Slide 55: tailwinds in semicon
tailwinds in semicon increasing new regionalisation energy efficiency demand applications of critical driving semicon chips fuelling demand manufacturing demand for smaller nodes urbanisation technology acceleration reshoring decarbonisation uniquely positioned to capitalise on each one 10 December
Slide 56: growth initiatives in semicon
growth initiatives in semicon aalberts.com/cmdvideo capacity expansion footprint South-East Asia repair and reuse center innovation center design to value programmes grow defense programme new state-of-art expansion integrated modules 10 December 2024 Aalberts capital markets day 'thrive 2030' 56
Slide 57: large frame manufacturing
large frame manufacturing integration of latest technologies state-of-art milling flexible manufacturing system | FMS integrated lava welding cleanroom assembly investing in the future with room for expansion 10 December 2024 Aalberts capital markets day 'thrive 2030' 57
Slide 58: capabilities integrated modules
capabilities integrated modules 10 December 2024 Aalberts capital markets day 'thrive 2030' 58
Slide 59: our competitive advantage in semicon
our competitive advantage in semicon unique technology own intellectual intensive investment power portfolio, strongly property and co-development and fast positioned for new technology with globally active decision-making semicon equipment developments key accounts enabling OEM growth uniquely posi
Slide 60: recharge semicon
recharge semicon new applications drive market growth (IoT, autonomous driving, generative AI, 5G) integrated module necessity due to extreme technological requirements fast ramp-up capital expenditure enabling OEM growth (+ reshoring) strategic acquisitions to grow with existing customers, secure f
Slide 61: recharge building
recharge building Maarten van de Veen
Slide 62: how we serve our building customers
how we serve our building customers at the heart of every great building, we engineer integrated systems for heating, cooling and sanitary applications we bring buildings to life by achieving energy and resource efficiency enabling energy efficiency providing safe and clean drinking water mitigating
Slide 63: building - key message
building - key message 1 green buildings, prefabrication, renovation and low-temperature systems drive growth 2 focus on data center expansion, boiler room technologies and USA growth 3 increase share of wallet in building lifecycle and expand adjacent technologies 4 focus on product line sales, inn
Slide 64: building at a glance
building at a glance mission-critical people locations worldwide 6,000+ 22 America Europe 28% 69% of total revenue of total revenue APAC, Middle East, Africa 3% of total revenue connection systems 46% renovation & repair ~55% valves 22% new build ~40% boiler room technology 32% digital & services ~5
Slide 65: how we create value in building
how we create value in building comprehensive offering lifecycle services digital services boiler room technology complete prefabricated solutions REVIT design services connection systems & valves treatment & commissioning services monitoring and predictive maintenance comprehensive offering, local
Slide 66: how we serve our building customers
how we serve our building customers 1 design phase 2 construction phase 3 completion phase 4 operation phase 5 renovation phase building climate excellence in every step of the lifecycle 10 December 2024 Aalberts capital markets day 'thrive 2030' 66
Slide 67: exciting building market dynamics
exciting building market dynamics residential non-residential data centers CAGR CAGR CAGR >4% >4% >10% our end markets remain large and growing 10 December 2024 Aalberts capital markets day 'thrive 2030' 67
Slide 68: tailwinds in building
tailwinds in building growing growth shift to more instant sustainable demand for data centers market access energy sources, comfortable and smart “made in USA" renovation buildings buildings wave urbanisation technology acceleration reshoring decarbonisation uniquely positioned to capitalise on eac
Slide 69: growth initiatives in building
growth initiatives in building prefabricated boiler rooms expansion vessel innovations low-temperature VacuStream IoT enabled systems aalberts.com/cmdvideo aalberts.com/cmdvideo material innovation cool press technology grooved coupling innovation balancing building systems 10 December 2024 Aalberts
Slide 70: our competitive advantage in building
our competitive advantage in building integrated extensive global engineering partner lean manufacturing, system offering salesforce during entire investment power with global supply with local-for-local building lifecycle and innovation speed chain coverage approach uniquely positioned to play for
Slide 71: recharge building
recharge building strong tailwinds, driving growth through greenification and replacement strengthen customer-centricity with digitalisation and system integration strategic acquisitions footprint USA and hydronic flow control adjacencies operational excellence and strengthening capabilities 10 Dece
Slide 72: thrive 2030 – Stéphane Simonetta
thrive 2030 refocus. rebalance. recharge. Stéphane Simonetta
Slide 73: strategic actions 2025-2030
strategic actions 2025-2030 » focus on three end markets, delivering customer-centric solutions » drive organic growth with business development and footprint optimisation 1 profitable growth » sustain >20% innovation rate with new products, solutions and digital offerings » double revenue in North
Slide 74: disclaimer
disclaimer This document and related presentation is for information purposes only and does not and is not intended to, constitute or form part of, and should not be construed as, an offer, an invitation or a recommendation to purchase, sell or subscribe for, or otherwise acquire, any Aalberts secur