Slide 1: full year results 2023
full year results 2023 Utrecht, 22 February 2024
Slide 2: agenda
agenda strategy & objectives operational development financial development outlook questions & answers Aalberts N.V. | full year results 2023 2
Slide 3: 1. strategy & objectives
1. strategy & objectives Stéphane Simonetta - CEO
Slide 4: megatrends shaping our future
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 autonomous driving, sustainable tra
Slide 5: the impact we are making
the impact we are making buildings microchips achieving energy and resource efficiency accelerating technological breakthroughs in buildings, we engineer integrated solutions together with semicon OEMs, we engineer for heating, cooling and sanitary systems leading-edge and tailor-made technologies a
Slide 6: 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 7: portfolio optimisation 2022-2023
1 portfolio optimisation 2022-2023 acquisitions divestments ISEL UWS KML ETI specialised in wafer water treatment systems mechatronic solutions annual revenue approx. handling & robotics and maintenance performing linear and USD 45 million and machine systems services for eco-friendly rotative high-
Slide 8: increase innovation
2 increase innovation hygienic distribution creating acceleration of lifetime extension and of water energy savings technological breakthroughs lightweight materials composite fittings with balancing valves used for enabling reuse of coating services providing corrosion resistance like balancing hea
Slide 9: focus on 4 end markets
2 focus on 4 end markets revenue per end market revenue per region (in %) (in %) 19 6 11 16 23 51 60 14 eco-friendly buildings 51% Western Europe 60% semicon efficiency 14% America 23% sustainable transportation 16% Eastern Europe 11% industrial niches 19% APAC, Middle East, Africa 6% 22 February 20
Slide 10: regional revenue per business segment
2 regional revenue per business segment building technology industrial technology (in %) (in %) 5 7 6 15 18 27 53 69 Western Europe 53% Western Europe 69% America 27% America 18% Eastern Europe 15% Eastern Europe 7% APAC, Middle East, Africa 5% APAC, Middle East, Africa 6% 22 February 2024 Aalberts
Slide 11: realise 'world-class' operations
3 realise ‘world-class’ operations Dronten Raunheim Venlo Assens Monterrey Raufoss building and expanding our sustainable footprint 22 February 2024 Aalberts N.V. | full year results 2023 11
Slide 12: drive sustainable entrepreneurship
4 drive sustainable entrepreneurship 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 breakthroughs advanced mechatronics sust
Slide 13: net zero carbon roadmap
4 net zero carbon roadmap net zero carbon focus projects per business team 2023 2022-2026 2040 2050 scope 1+2 • drive energy efficiency progress target energy use (in CO2 intensity)* • use renewable energy 33% 30% versus 2018 versus 2018 • reduce, reuse, recycle raw materials, waste scope 3 • trav
Slide 14: execute sustainability improvement plans
4 execute sustainability improvement plans 23.1 B 93% A medium risk recognised for the progress we make in various benchmarks 22 February 2024 Aalberts N.V. | full year results 2023 14
Slide 15: strategy deployment
strategy deployment 2023 2023 2023 2023 2023 2023 22 February 2024 Aalberts N.V. | full year results 2023 15
Slide 16: 2. operational development
2. operational development Stéphane Simonetta - CEO
Slide 17: operational development 1/2
operational development 1/2 organic revenue growth supply chain headwinds eco-friendly buildings managed well fewer supply chain issues resulted in building technology -1.2% improved customer satisfaction growth agenda continued for semicon efficiency, sustainable transportation, and industrial nich
Slide 18: operational development 2/2
operational development 2/2 safety diversity lost time injury frequency ratio reduced to 6.2 32% female leaders in senior leadership focus on health and safety will increase gender diversity remains focus employee engagement employee development eNPS and employee motivation surveys done more than 95
Slide 19: shaping eco-friendly buildings
shaping eco-friendly buildings market dynamics o decreasing end-user demand; project postponements new build and renovation o lower activity and further inventory reduction of our wholesale customers performance o price levels robust despite challenging market circumstances » effects additional sale
Slide 20: increasing semicon efficiency
increasing semicon efficiency market dynamics o microchip demand for computer logic, e-mobility developments, connectivity and IoT, investments in new fabs and 5G roll-out o innovation remains high; continue co-development performance o strong growth continued; improved our service » increased effic
Slide 21: driving sustainable transportation
driving sustainable transportation market dynamics o new technologies are being introduced to reduce fuel consumption, manufacturing cost and improve safety o new developments in e-mobility, lightweight materials, sustainability, and reshoring o need for lightweight materials leading to increase of
Slide 22: enhancing industrial niches
enhancing industrial niches market dynamics o demand for precision extrusion parts and specialised surface technologies continued on a high level performance o industrial valves business North America continued to perform well o Eastern Europe, expansion of our activities continued » adding floor sp
Slide 23: 3. financial development
3. financial development Arno Monincx - CFO
Slide 24: Aalberts highlights
Aalberts highlights revenue added-value (in EUR million) (% of revenue) 3,324 62.4 +3% 2022: 62.4 EBITA EBITA margin o revenue EUR 3,324 million; organic revenue growth 4.5% (in EUR million) (%) 521 15.7 2022: 15.5 o EBITA EUR 521 million; EBITA margin 15.7% +4% o earnings per share before amortisat
Slide 25: revenue bridge
revenue bridge 22 February 2024 Aalberts N.V. | full year results 2023 25
Slide 26: EBITA bridge
EBITA bridge 22 February 2024 Aalberts N.V. | full year results 2023 26
Slide 27: EPS bridge
EPS bridge 22 February 2024 Aalberts N.V. | full year results 2023 27
Slide 28: condensed consolidated income statement
condensed consolidated income statement in EUR million 2023 2022 revenue 3,324.0 3,230.0 EBITDA 662.6 633.5 depreciation (141.6) (133.2) EBITA 521.0 500.3 net finance cost (39.4) (20.8) income tax expense (103.5) (102.3) non-controlling interests (4.7) (5.0) net profit before amortisation 373.4 372.
Slide 29: condensed consolidated balance sheet
condensed consolidated balance sheet in EUR million 31.12.2023 31.12.2022 total non-current assets 2,707 2,732 total current assets 1,431 1,479 total assets 4,138 4,211 total equity 2,517 2,363 total non-current liabilities 726 852 total current liabilities 895 996 total equity and liabilities 4,138
Slide 30: free cash flow
free cash flow in EUR million (before exceptionals) 2023 2022 delta EBITDA 662.6 633.5 29.1 gain on disposal of subsidiaries (30.0) (34.4) 4.4 result on sale of equipment (4.4) (1.0) (3.4) changes in provisions (4.5) (2.4) (2.1) changes in provisions exceptional 3.4 9.1 (5.7) changes in working capi
Slide 31: 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 32: reporting per business segment
reporting per business segment building technology 2023 2022 delta revenue (in EUR million) 1,798.0 1,841.8 (2%) organic revenue growth (in %) (1.2) 6.1 (7.3) EBITA (in EUR million) 256.4 276.4 (7%) EBITA margin (%) 14.3 15.0 (0.7) capital expenditure (in EUR million) 85.2 94.3 (10%) industrial tech
Slide 33: dividend
dividend 1.13 0.75 dividend proposal 0.41 cash dividend EUR 1.13 per share (2022: EUR 1.11) 2013 2018 2023 CAGR 11% cash dividend proposal EUR 1.13 per share 22 February 2024 Aalberts N.V. | full year results 2023 33
Slide 34: 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 3500 3,324 600 2,759 3000 revenue (in EUR million) 521 500 2500 EBITA (in EUR million) 2,040 400 2000 1,751 366 300 1500 225 200 1000 785 182 500 328 88 100 1
Slide 35: shareholder value creation
our track record shareholder value creation earnings per share dividend per share return on incremental long-term shareholders (in EUR) (in EUR) capital employed (>3% holdings) 1.13 3.38 capital EBITA employed 225 2013 1,535 1.38 0.41 521 2023 3,100 (2) IFRS 16 (156) 294 1,409 2013 2023 2013 2023 CA
Slide 36: 4. outlook
4. outlook Stéphane Simonetta - CEO
Slide 37: looking forward to 2024
looking forward to 2024 on the industrial side, we are still confident in the building sector, there are still with the long-term growth agenda of the many growth opportunities in the USA, semicon industry and are in pole position to Eastern Europe, and Asia, while further support the decarbonisatio
Slide 38: outlook
outlook o we are executing our strategy Aalberts ‘accelerates unique positioning’, realising our objectives o we will continue to focus on » organic revenue growth » operational excellence » portfolio optimisation » sustainable entrepreneurship 22 February 2024 Aalberts N.V. | full year results 2023
Slide 39: we engineer mission-critical technologies enabling a clean, smart and responsible future
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 22 February 2024 Aalberts N.V. | full year results 2023 39
Slide 40: 5. questions & answers
5. questions & answers aalberts.com/investors