Slide 1: we engineer mission-critical technologies enabling a clean, smart and responsible future
we engineer mission-critical technologies enabling a clean, smart and responsible future full year results 2022 Utrecht, 23 February 2023
Slide 2: agenda
agenda Aalberts operational development financial development outlook questions & answers Aalberts N.V. | full year results 2022 2
Slide 3: 1. Aalberts
A aalberts 1. 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 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 7: 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 8: the Aalberts playbook
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 9: the Aalberts way
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 23 February 2023 Aalberts N.V. | full year results 2022 9
Slide 10: 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 11: 2. operational development
2. operational development Wim Pelsma - CEO
Slide 12: Aalberts highlights
Aalberts highlights revenue added-value (in EUR million) (% of revenue) 3,230 62.4 o revenue EUR 3,230 million; organic growth 8.7% +8% 2021: 62.2 EBITA o orderbook increased with 37% EBITA % (in EUR million) (% of revenue) o EBITA EUR 500 million; EBITA margin 15.5% 500 15.5 2021: 15.2 o net profit
Slide 13: operational development
operational development o delivered a strong and resilient performance in 2022 o ongoing pandemic, supply chain challenges, raw material and labour shortages and inflation » leading to inefficiencies, additional costs and higher work in progress o invested in additional inventory » to secure custome
Slide 14: operational development
operational development o capital expenditure increased with 38%, capital was allocated to: » long-term organic revenue growth plans and innovation roadmaps » capacity increase fast-growing product lines and technologies » many operational excellence initiatives, increasing manufacturing efficiency
Slide 15: shaping eco-friendly buildings
shaping eco-friendly buildings o good start of the year in all regions o second half of the year distributors reduced inventories o served customers as good as possible despite labour constraints and supply chain disruptions o renovation and new build of residential and commercial buildings » driven
Slide 16: increasing semicon efficiency
increasing semicon efficiency o continued our strong growth, orderbook increased to record level o customers served despite supply chain disruptions and high demand o long-term growth drivers in semicon efficiency are strong » microchip demand, e-mobility, IoT, new fabs and 5G roll-out » these growt
Slide 17: driving sustainable transportation
driving sustainable transportation o good performance despite disruptions in supply chain customers o strong demand passenger cars, motor bikes, commercial vehicles » continuing need for precision manufactured parts and specialised surface technologies o accelerated by many new developments in e-mob
Slide 18: enhancing industrial niches
enhancing industrial niches o strong growth and performance despite supply chain disruptions o market recovered fast, orderbook increased strongly o invested in many business development projects to facilitate growth o further optimised surface technologies portfolio o received several requests for
Slide 19: innovation drives our growth
innovation drives our growth >20% 17% 15% 2021 2022 2022-2026 innovation rate: LTM revenue from products launched in the last 48 months / LTM total revenue innovation expenditure >5% of revenue 23 February 2023 Aalberts N.V. | full year results 2022 19
Slide 20: SDG impact increased to 68%
drive sustainable entrepreneurship SDG impact increased to 68% 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
Slide 21: net zero carbon roadmap
drive sustainable entrepreneurship net zero carbon roadmap net zero carbon focus projects per business team 2022 2022-2026 2040 2050 scope 1+2 • drive energy efficiency progress target energy use (in CO2 intensity)* • use renewable energy 29% 30% versus 2018 versus 2018 • reduce, reuse, recycle ra
Slide 22: portfolio optimisations
portfolio optimisations acquisitions divestments ISEL UWS KML ETI Germany Germany Austria Indiana, USA 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 e
Slide 23: 3. financial development
3. financial development Arno Monincx - CFO
Slide 24: revenue bridge
revenue bridge 23 February 2023 Aalberts N.V. | full year results 2022 24
Slide 25: EBITA bridge
EBITA bridge 23 February 2023 Aalberts N.V. | full year results 2022 25
Slide 26: condensed consolidated income statement
condensed consolidated income statement in EUR million (before exceptionals) 2022 2021 revenue 3,230.0 2,979.1 EBITDA 633.5 585.1 depreciation (133.2) (130.9) EBITA 500.3 454.2 net finance cost (20.8) (13.2) income tax expense (102.3) (96.0) non-controlling interests (5.0) (7.7) net profit before am
Slide 27: condensed consolidated balance sheet
condensed consolidated balance sheet in EUR million 31.12.2022 31.12.2021 total non-current assets 2,732 2,460 total current assets 1,479 1,195 total assets 4,211 3,655 total equity 2,363 2,184 total non-current liabilities 852 525 total current liabilities 996 946 total equity and liabilities 4,211
Slide 28: free cash flow
free cash flow in EUR million (before exceptionals) 2022 2021 delta EBITDA 633.5 585.1 48.4 gain on disposal of subsidiaries (34.4) (13.1) (21.3) result on sale of equipment / changes in provisions 5.7 0.9 4.8 changes in working capital (243.4) (108.7) (134.7) cash flow from operations 361.4 464.2 (
Slide 29: reporting per business segment
reporting per business segment building technology 2022 2021* delta revenue (in EUR million) 1,841.8 1,856.1 (1%) organic revenue growth (in %) 6.1 15.9 (9.8) EBITA (in EUR million) 276.4 290.5 (5%) EBITA as a % of revenue (in %) 15.0 15.6 (0.6) capital expenditure (in EUR million) 94.3 75.8 24% ind
Slide 30: revenue per end market and region
revenue per end market and region revenue per end market (in %) revenue per region (in %) 19 12 5 15 24 54 12 59 eco-friendly buildings 54% Western Europe 59% semicon efficiency 12% America 24% sustainable transportation 15% Eastern Europe 12% industrial niches 19% APAC, Middle East, Africa 5% 23 Fe
Slide 31: dividend
dividend 1.11 dividend proposal 0.65 cash dividend EUR 1.11 per share (2021: EUR 1.01), increase of 10% 0.35 2021: special dividend of EUR 0.64 2012 2017 2022 CAGR 12% cash dividend proposal EUR 1.11 per share, increase of 10% 23 February 2023 Aalberts N.V. | full year results 2022 31
Slide 32: 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 3,230 600 3000 revenue (in EUR million) 2,694 500 500 2500 EBITA (in EUR million) 2,025 400 2000 1,703 336 300 1500 219 1000 193 200 706 100 500 278 84 9
Slide 33: 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) 1.11 3.37 capital EBITA employed 219 2012 1,492 1.40 0.35 500 2022 3,156 (1) IFRS 16 (166) 280 1,498 2012 2022 2012 2022 CA
Slide 34: 4. outlook
A aalberts 4. outlook Wim Pelsma - CEO
Slide 35: outlook
outlook o in 2023, we started with a strong orderbook o we will relentlessly execute our strategy Aalberts ‘accelerates unique positioning’ 23 February 2023 Aalberts N.V. | full year results 2022 35
Slide 36: 5. questions & answers
5. questions & answers aalberts.com/investors