Aalberts N.v. · EURONEXT:AALB
Aalberts — Investor Day (December 2021)
65 slides from Aalberts's investor day presentation, Dec 2, 2021
Slide 1: Aalberts 'accelerates unique positioning'
Aalberts ‘accelerates unique positioning’ capital markets | investor day 2 December 2021 | 1 September 2022
Slide 2: Agenda
agenda Aalberts strategy & objectives financial development key takeaways strategy in action questions & answers Aalberts ‘accelerates unique positioning’ 2
Slide 3: Aalberts
A aalberts Aalberts
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 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 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 “ Aalberts ‘accelerates unique positioning’ 13
Slide 14: Strategy & objectives
A aalberts strategy & objectives
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 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
aalberts financial development
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 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: 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 2,979 3000 600 2,522 2500 revenue (in EUR million) 500 EBITA (in EUR million) 454 2000 1,937 400 1,440 1500 298 300 1000 209 200 604 168 500 100 214 69 89 0 2
Slide 27: 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) 1.65 3.05 capital EBITA special employed 209 2011 1,464 1.36 1.01 454 2021 2,676 0.34 (1) IFRS 16 (174) 244 1,038 2011 2021
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
A aalberts key takeaways
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: Strategy in action
A aalberts strategy In action
Slide 32: Strategy in action
strategy in action Maarten van de Veen Wim Waeghe Oliver Jäger André in het Veld Aalberts ‘accelerates unique positioning’ 32
Slide 33: Aalberts hydronic flow control
Aalberts hydronic flow control Maarten van de Veen
Slide 34: New factory, warehouse & office
new factory, warehouse & office » BREEAM Outstanding » high performance logistics » 100% renewable electricity » biodiversity environment one of world’s most sustainable buildings Aalberts ‘accelerates unique positioning’ 34
Slide 35: What we do: hydronic flow control
what we do hydronic flow control is partnering with its 22% customers to engineer hydronic systems that make 8% buildings more energy efficient, more sustainable addressable market and more comfortable EUR 2.5+ billion we are involved in every step of the building lifecycle our goal >30% shaping eco
Slide 36: Building lifecycle
building lifecycle we are at the heart of every great building Aalberts ‘accelerates unique positioning’ 36
Slide 37: Aalberts hydronic flow control
Aalberts hydronic flow control our competitive advantage growth drivers integrated system offering from energy efficiency stimulated by 1 source to emitter with digital services scarcity, legislation and subsidies engineering partner megatrends technology shift towards energy 2 during entire buildin
Slide 38: Market trends
market trends 1. renovation wave » 65 million boilers to be replaced in Europe next 10 years » 70% of our business is renovation • expansion vessel also renewed • extra need for pump groups and air & dirt separators 2. move to low temperature systems » growth underfloor heating and district heating
Slide 39: Strategy in action | digital services
strategy in action | digital services 1. commissioning ensure optimal system performance 2. data consumption save energy and billing 3. monitoring optimal operation prevent failures 4. energy saving optimum supply and demand Aalberts ‘accelerates unique positioning’ 39
Slide 40: Our way of value creation | project sales
our way of value creation | project sales unique positioning | more project sales » close to building owners, engineering partner » own manufactured systems with digital services digital services | recurring business » digital services generating recurring revenue unique portfolio | prefabricated bo
Slide 41: Our way of value creation | product line sales
our way of value creation | product line sales efficiency & safety energy distribution pressurisation & storage transfer stations & metering water treatment emitter & balancing control 1o extensive offering ‘from source to emitter’ » delivering continuous flow of innovations, strengthening portfolio
Slide 42: Aalberts advanced mechatronics
Aalberts advanced mechatronics Wim Waeghe
Slide 43: What we do: advanced mechatronics
what we do advanced mechatronics delivers leading-edge, tailor-made and future-proof technologies, 6% 9% enabling the technology roadmaps of the semicon industry we specialise in vibration addressable market EUR 5.0+ billion isolation & robotics, ultra-precision large frames, high-purity fluid handl
Slide 44: Market outlook semicon equipment
market outlook semicon equipment macro drivers market outlook semicon equipment » new applications (AI, IoT, 5G/6G, automotive, …) » power reduction 180 » increased capital intensity of leading edge nodes » geopolitics, reshoring 161 » lower cyclicality etch & cleaning 141 107 fab CAPEX deposition »
Slide 45: Increasing semicon efficiency
increasing semicon efficiency mask making lithography vibration isolation & robotics CMP ultra-precision large frames high-purity fluid handling inspection (mask & wafer) deposition etch & cleaning linear motion systems ion implant unique positioning, OEM co-development partner with own intellectual
Slide 46: Aalberts advanced mechatronics
Aalberts advanced mechatronics our competitive advantage growth drivers unique technology portfolio, strongly new applications (IoT, autonomous 1 positioned for semicon equipment driving, AI, 5G) drive market growth own intellectual property and megatrends co-development necessity due to new technol
Slide 47: Strategy in action | co-development necessity
strategy in action | co-development necessity repair technology for high-end EUV photomasks design, development and supply » mission-critical modules in ultra-clean environments mask handling robotics » own intellectual property co-development high-purity fluid handling » enabling customers focus on
Slide 48: Strategy in action | ramp-up ultra-large frames
strategy in action | ramp-up ultra-large frames competence centre ultra-large aluminium frames enabling high semicon market growth » 40,000 sqm building, world-class milling centres » dedicated manufacturing, production operational 2023-2024 one-stop-shop centre of excellence » highly automated & ve
Slide 49: Strategy in action | refurbishment high-purity module
strategy in action | refurbishment high-purity module extending system lifecycle, minimizing waste reuse of installed base end-of-life modules » used modules returned and disassembled » parts remanufactured, minimising waste and virgin material usage reuse as a service » supporting OEM installed bas
Slide 50: Aalberts surface technologies
Aalberts surface technologies Oliver Jäger
Slide 51: What we do: surface technologies
what we do surface technologies improves material characteristics 12% for regional and global key accounts with highest quality 8% driving sustainable transportation and standards addressable market specialised in surface EUR 6.5+ billion treatments, reel-to-reel plating, polymer, special heat treat
Slide 52: Aalberts surface technologies
Aalberts surface technologies our competitive advantage growth drivers global service network, engineering business development e-mobility, 1 partner for global key accounts agriculture, aerospace and semicon combined offering of highly megatrends material specification, larger volumes, 2 specialise
Slide 53: Our way of value creation
our way of value creation relentlessly running the playbook drive business development expand regional offering | customer share of wallet implement pipeline sales management growth regions + use Aalberts strengths innovation roadmaps & investment power develop or strengthen management growth segmen
Slide 54: Strategy in action | future technologies
strategy in action | future technologies reel-to-reel technology our way of value creation acquisition reel-to-reel reel-to-reel technology crucial technology (PEM & PPC) for production of connectors technology exchange PEM to PPC (masking), drive operational increased demand e-mobility, excellence
Slide 55: Strategy in action | growth segments
strategy in action | growth segments aerospace development our way of value creation aerospace and additive knowledge transfer HIP manufacturing growth market for technology from USA to EU hot isostatic pressing (HIP) aerospace, IGT and semicon business plan developed demand same technical precision
Slide 56: Strategy in action | growth regions
strategy in action | growth regions development North America our way of value creation origin activities based in management driving Southeast Region operational excellence acquisition Premier Thermal (PT) implemented regional sales; region Midwest added pipeline sales management technology portfol
Slide 57: Aalberts integrated piping systems
Aalberts integrated piping systems André in het Veld
Slide 58: What we do: integrated piping systems
what we do integrated piping systems engineers the optimum piping system to distribute and control 10% liquids and gas for different 5% vertical end markets our piping systems (fittings, addressable market EUR 12+ billion valves, pipes and fasteners) are easy to specify and install, saving important
Slide 59: Aalberts integrated piping systems
Aalberts integrated piping systems our competitive advantage growth drivers the only manufacturer of integrated renovation of piping systems due to 1 piping systems from one source energy efficiency improvements world-class manufacturing sites and megatrends strong need for time-saving, 2 DC network
Slide 60: Our way of value creation | integrated piping solutions
our way of value creation | integrated piping solutions vertical end markets digital design services integrated piping systems 1o tackling labour shortage and complexity in projects » offering integrated, plug and play piping solutions 2o IPS design services with Revit plugin (full portfolio in one
Slide 61: Our way of value creation | product line sales
our way of value creation | product line sales 1o converting market to high-end integrated connection and valve technology » delivering continuous flow of innovations, strengthening portfolio 2o own strong regional sales forces drive product line volumes » utilising regional market know-how and dist
Slide 62: Strategy in action | integrated piping system offering
strategy in action | integrated piping system offering IPS design service | Revit plug-in case study » early influence on installation design » higher system efficiency, sustainable impact » full and integrated Aalberts portfolio » larger share of wallet, unburden customer engineering and specificat
Slide 63: Strategy in action | world-class manufacturing
strategy in action | world-class manufacturing transfer press technology knowledge to North America » on-site education North America by European team » remote training and guidance via augmented reality install new press manufacturing equipment in North America » highly automated and newest product
Slide 64: Strategy in action | innovation strength
strategy in action | innovation strength utilising Aalberts strengths close cooperation between R&D centres the Netherlands, Denmark and North America patented valve technology, development in Europe unique connection and valve manufacturing technology worldwide utilisation of our global sales organ
Slide 65: Questions & answers
questions & answers aalberts.com/investors