Slide 1: we engineer mission-critical technologies for ground-breaking industries and everyday life
we engineer mission-critical technologies for ground-breaking industries and everyday life half-year investor update, July 2019
Slide 2: contents
contents 1. Aalberts 2. Aalberts highlights 3. operational review 4. financial review 5. Aalberts looking forward 6. questions & answers
Slide 3: 1. Aalberts
A aalberts 1. Aalberts Wim Pelsma - CEO
Slide 4: our essence
our essence we engineer mission-critical technologies for ground-breaking industries and everyday life 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 share
Slide 5: our way of value creation
our way of value creation our essence shareholder value o leading niche technology positions mission-critical o high entry barriers, pricing power technologies o high added-value margins, sustainable growth o operational excellence good is never o improve EBITA margins, strong cash conversion good e
Slide 6: our track record – over 40 years of sustainable profitable growth
our track record – over 40 years of sustainable profitable growth multi-industry focus portfolio growth focus niche technology focus 3000 2,759 420 2500 revenue (in EUR million) 366 370 EBITA (in EUR million) 2,025 320 2000 270 1,440 1500 219 220 1000 168 170 474 120 500 130 59 70 0 20 1975-1981 198
Slide 7: our key strength - mission-critical people
our key strength - mission-critical people the Aalberts way greatness is made of shared knowledge winning with people our unique advantage be an entrepreneur take ownership go for excellence share and learn act with integrity 25 July 2019 Aalberts N.V. | half-year investor update 7
Slide 8: innovation driving sustainable profitable growth
innovation driving sustainable profitable growth continuous investments in R&D innovate portfolio & business leverage mega trends climate change manufacturing automation 2.0 urbanisation > 100 EUR mio master data management raw material scarcity > 400 FTE connected technologies internet of things an
Slide 9: 2. Aalberts highlights
2. Aalberts highlights Wim Pelsma - CEO
Slide 10: Aalberts highlights
Aalberts highlights innovations driving setup of digital new distribution and new generation of full flow valves district additional growth engineering services assembly centre NL, electronic regulators for energy, gas, residential, exceeded expectations worldwide expansion Belgium CNG passenger car
Slide 11: Aalberts highlights
Aalberts highlights revenue added-value (in EUR million) (% of revenue) o organic revenue growth +3% 1,436 63.3 +4% 1H2018: 62.8 o operating profit (EBITA) +5% EBITA EBITA % o EBITA margin improved to 13.1% (in EUR million) (% of revenue) 188 13.1 o net profit before amortisation +6% +5% 1H2018: 12.
Slide 12: 3. operational review
3. operational review Oliver Jäger – executive director
Slide 13: installation technology
installation technology revenue o Europe good organic growth (in EUR million) 574 o North America made slow start, with increasing order intake - » industrial installations project offerings increased, higher activity second half EBITA o key accounts expanded; increased capacity in fast-growing prod
Slide 14: material technology
material technology revenue o heat and surface treatment Europe lower level than last year, due to (in EUR million) » emission requirements impacting engine mix of vehicles, WLTP testing capacity, 392 lower worldwide car deliveries, inventory reduction supply chain in automotive +4% o compensated by
Slide 15: climate technology
climate technology revenue (in EUR million) o good organic growth in many regions 278 » France, UK and Southern Europe market circumstances challenging +1% » launch new product line delayed, took more time and effort than expected EBITA o project specification becoming more successful, offering comp
Slide 16: industrial technology
industrial technology revenue o fluid control activities good organic revenue growth, driven by innovations (in EUR million) 216 » full flow valves for residential, commercial buildings, district energy, gas » electronic regulators for CNG passenger cars +11% o dispense technologies good progress EB
Slide 17: 4. financial review
4. financial review Arno Monincx - CFO
Slide 18: condensed consolidated income statement
condensed consolidated income statement in EUR million 1H2019 1H2018 revenue 1,435.7 1,386.5 operating profit (EBITDA) 251.9 226.5 depreciation (64.4) (47.3) operating profit (EBITA) 187.5 179.2 net interest expense (10.4) (7.8) other net finance cost 0.7 (2.2) income tax expense (ETR 1H2019: 24.1,
Slide 19: condensed consolidated balance sheet
condensed consolidated balance sheet in EUR million 30.06.2019 31.12.2018 30.06.2018 total non-current assets 2,249 2,068 1,926 total current assets 1,211 1,080 1,206 TOTAL ASSETS 3,460 3,148 3,132 total equity 1,717 1,676 1,550 total non-current liabilities 742 674 566 total current liabilities 1,0
Slide 20: condensed consolidated cash flow statement
condensed consolidated cash flow statement in EUR million 1H2019 1H2018 delta operating profit (EBITDA) 251.9 226.5 25.4 result on sale of equipment / changes in provisions (5.8) (3.3) (2.5) changes in working capital (171.8) (173.7) 1.9 CASH FLOW FROM OPERATIONS 74.3 49.5 24.8 net capital expenditu
Slide 21: revenue & CAPEX
revenue & CAPEX in EUR million 1H2019 1H2018 delta installation technology 573.5 575.9 - material technology 392.4 377.1 4% climate technology 277.7 273.8 1% industrial technology 215.6 193.9 11% holding / eliminations (23.5) (34.2) TOTAL REVENUE 1,435.7 1,386.5 4% in EUR million 1H2019 1H2018 delta
Slide 22: operating profit (EBITA) & EBITA margin
operating profit (EBITA) & EBITA margin in EUR million 1H2019 1H2018 delta installation technology 69.7 71.2 (2%) material technology 54.0 51.0 6% climate technology 33.4 32.6 2% industrial technology 34.3 30.5 12% holding / eliminations (3.9) (6.1) TOTAL EBITA 187.5 179.2 5% in % of revenue 1H2019
Slide 23: impact adoption IFRS 16
impact adoption IFRS 16 1H2019 adoption 1H2019 in EUR million before IFRS 16 IFRS 16 as reported EBITDA 237.2 14.7 251.9 EBITA 187.1 0.4 187.5 net interest expense (9.2) (1.2) (10.4) income tax expense (38.2) 0.2 (38.0) net profit before amortisation 138.4 (0.6) 137.8 net debt 778.2 126.5 904.7 tota
Slide 24: 5. Aalberts looking forward
5. Aalberts looking forward Wim Pelsma - CEO
Slide 25: Aalberts looking forward
Aalberts looking forward innovations for thermo co-development new surface technologies specialised gas new product lines management hybrid and surface technologies for for ultra clean, compressors and valves related to energy electrical vehicles changes in voltage particle-free parts for commercial
Slide 26: Aalberts looking forward
Aalberts looking forward automotive semicon & science o engine mix vehicles becomes more clear o increased activity level 2H2019 o WLTP testing capacity improves o our inventory was kept on higher level to anticipate on this development o inventory reduction will stabilise o we have a prosperous fut
Slide 27: outlook
outlook o we remain confident in the execution of the many growth and innovation initiatives and investment plans o we will pursue our strategy ‘focused acceleration’ o we will drive our profitability further and convert strong operational execution into free cash flow 25 July 2019 27
Slide 28: capital markets day
capital markets day o on Wednesday 4 December 2019 Aalberts will host a Capital Markets Day in its experience centre at WTC Utrecht (NL) o we will give an update of the Aalberts strategy ‘focused acceleration’ 2018-2022, presented in December 2017 o the update will be followed by an innovation exper
Slide 29: 6. questions & answers
6. questions & answers aalberts.com/investors