Transcript Grontmij

Grontmij
Sustainable design & engineering
FY2008 Figures
March 2009
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Contents
1. Results 2008 Headlines
2. Financial performance 2008
3. Market & strategy
4. Outlook 2009
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RESULTS 2008
HEADLINES
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Headlines 2008
•
Total Revenue
€ 846.2 mln (€ 772.8 mln)
•
Net Revenue
€ 664.0 mln (€ 598.1 mln) up 14%*
•
Operating profit
€ 65.1 mln (€ 54.1 mln) up 20%
•
Profit after tax
€ 38.8 mln (€ 32.7 mln) up 18.5%
•
Operating margin (EBITA on TR) 7.7% (7.0%)
•
Earnings per share
€ 2.16 (€ 1.84) up 17%
•
Order book
well over one year
•
Dividend proposal
increased to € 1.15 (53% of EPS)
*14% excl. currency, 8.2% organic; currency -2.7%
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Grontmij 2008: Key Facts
Total revenue (€ mln)
Net result (€ mln)
38.8
40
900
846
800
35
2.50
32.7
2.16
30
773
700
Earnings/share (€)
2.00
+18,5%
25
1.50
22.1
1.84
1.31
+10%
600
20
1.00
500
15
0.50
400
10
0.00
543
‘06
‘07
‘08
‘06
‘07
‘08
+17%
‘06
‘07
‘08
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Sound key ratio’s 2008
• EBITA on TR
7.7% (2007: 7.0%)
• EBITA on NR
9.8% (2007: 9.0%
• RoE
23.3% (2007: 22.1%)
• Interest coverage ratio
9.3
• Solvency
27.9% (2007: 26.4%)
• Net debt / EBITDA
1.1
(2007: 9.0)
(2007: 1.4)
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Grontmij’s growth 1998-2008
Acquisition/
share issue
900
800
Carl Bro
Acquisition
773
Restructuring
NL
Turnover € mln
472
500
400
511
495
543
481
473
25
369
20
22,9
300
15
200
100
35
30
32,7
441
309
45
40
38,8
700
600
846
13,7
16
11,1
13,9
11,1
9,6
10
13
5
4,9
0
1998
Net profit € mln
Divest
Non-core
1999
2000
2001
2002
2003
0
2004
2005
2006
2007
2008
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Operating margin improvement (EBITA)
€ million
EBITA margin
%
70
10,0%
9,0%
60
8,0%
50
7,0%
6,0%
40
5,0%
30
4,0%
3,0%
20
2,0%
10
1,0%
0
0,0%
2004
2005
EBITA
2006
% of tot rev
2007
2008
% of net rev
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Creating value in operations
EBITA %
12
2008
10
2007
norm
8
2006
decrease
6
repair
enlarge
2003
enlarge
4
2
sell/stop
cross selling
0
Multidisciplinary
project
management
Consultancy & Design


1
more cooperation
top design firms
limited “own”
technology

2
invest in
competences



training
3
cost cutting
sell / partner
industr. eng.

4
risk mgt

5
invest

training

framework

contract


decrease
volume
Asset
management
& maintenance
Turnkey
Contracting
Engineering
PFI with
contractors
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EBIT per country on Total Revenue
EBIT per country (%)
13,0%
12,6%
12,0%
11,0%
10,3%
10,0%
9,2%
2006 Pro forma
9,0%
8,2%
7,8%
8,0%
7,0%
6,2%
6,3%
6,1% 6,1% 6,1%
6,0%
8,2% 8,4%
8,0%
8,1%
7,5%
2007
2008
6,2%
6,1%
5,2%
5,0%
4,0%
Belgium
Denmark
Germany/Poland
The Netherlands
United Kingdom/
Ireland
Sweden
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Share price performance 2004-2008
Indexed share price movement (100 on 3 March 2005)
400
350
Grontmij
AEX
AScX
300
250
200
150
100
50
0
2004
2005
2006
2007
2008
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Dividend and Earnings per share - trend
Remains at high level
3,00
earnings per share
dividend per share
2,16
in €
1,84
1,50
1,23
0,69
0,44
0,81
1,10
1,15
0,75
0,53
0,00
2004
Solvency
27.8
2005
2006
2007
2008
27.6
26.8
26.4
27.9
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Did we meet our objectives?
• 7.7% EBITA on sales (Total Revenue)

• Solvency 25-30% (28%)

• Healthy interest coverage (EBIT/Interest ≥ 5)

• Increase earnings per share

• Maintain high dividend level (increase € 1,10  € 1,15)

• € 20 million redemption acquisition loan

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FINANCIAL
PERFORMANCE 2008
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Income statement (2008 vs 2007)
In € thousand
2008
2007
Amount of
Difference
Difference
%
Total Revenue
846.223
772.846
73.377
9.5%
Third party expenses
182.254
174.701
7.553
4.3%
Net Revenue
663.969
598.145
65.824
11.0%
Employee benefit expenses
504.528
456.907
47.621
10.4%
Other operating expenses
95.602
90.503
5.099
5.6%
Depreciation and amortisation
18.337
18.247
90
0.5%
618.467
565.657
52.810
9.3%
Net Revenue less operating expenses
45.502
32.488
13.014
40.1%
Joint ventures
12.684
15.504
-2.820
-18.2%
Operating result (EBIT)
58.186
47.992
10.194
21.2%
Financial result
-7.465
-6.000
-1.465
24.4%
Profit before income tax
50.721
41.992
8.729
20.8%
-11.951
-9.272
-2.679
28.9%
38.770
32.720
6.050
18.5%
Total operating expenses
Tax
Profit after income tax
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Growth 2008 (Net Revenue)
In € million or %
Incl. currency
Net Revenue 2008
%
664.0
%
664.0
Currency
Net Revenue 2007
Excl. currency
16.3
598.1
Growth
65.8
Net divested / Invested (2007/2008)
33.0
Organic growth
32.8
598.1
11.0%
82.1
13.7%
33.0
5.5%
49.1
8.2%
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Currency impact 2008 (PLN, SEK, GBP)
Equity
€ -5.6 million
Total Revenue
€ -20.0 million
Net Revenue
€ -16.3 million
EBIT
€ -1.6 million
EPS
€ -0.06
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Ratio’s
In € million or %
2008
2007
Amount of
Difference
Difference
%
Revenue
846.2
772.8
73.4
9.5%
Third party expenses
182.2
174.7
7.5
4.3%
Net Revenue (own production)
664.0
598.1
65.9
11.0%
58.2
48.0
10.2
21.2%
6.9
6.1
0.8
14.1%
EBITA
65.1
54.1
11.0
20.4%
EBIT %
6.9%
6.2%
EBIT % (Net Revenue)
8.8%
8.0%
EBITA % (Revenue)
7.7%
7.0%
EBITA % (Net Revenue)
9.8%
9.0%
38.8
32.7
4.6%
4.2%
Earnings before interest and taxes
Amortisation
Result after tax
Result after tax / Revenue
18.5%
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EBIT per country
In € thousand
2008
2007
Total
revenue
EBIT
EBIT%
Total
revenue
EBIT
EBIT %
Belgium
58.489
5.397
9.23%
53.023
5.435
10.25%
Denmark
171.197
10.431
6.09%
150.587
9.203
6.11%
66.607
8.375
12.57%
51.377
3.236
6.30%
332.050
27.316
8.23%
315.195
24.488
7.77%
88.998
7.147
8.03%
96.277
7.186
7.46%
115.412
9.325
8.08%
85.764
7.202
8.40%
13.470
-9.805
20.623
-8.758
846.223
58.186
772.846
47.992
Germany/Poland
Netherlands
Sweden
UK / Ireland
Holdings
Interest
Tax
6.88%
-7.465
-6.000
-11.951
-9.272
38.770
4.58%
32.720
6.21%
4.23%
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Profitability
In € million
Total
Net Revenue 2008
664.0
Net Revenue 2007
598.1
Change in Net Revenue
65.9
EBIT 2008
58.2
EBIT 2007
48.0
Change in EBIT
10.2
Due to Revenue
4.6
Due to profitability
5.7
10.3
Currency impact
-1.6
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Income statement (Non)-recurring
In € million
2008
2007
Amount of
Difference
Total Revenue
846.2
772.8
73.4
Recurring operations
54.5
40.6
13.9
One off (non recurring)
-2.0
-2.1
0.1
Amortisation
-6.9
-6.0
-0.9
Operational result before JV
45.6
32.5
13.1
JV’s and associates
12.7
15.5
-2.8
Interest
-7.5
-6.0
-1.5
Result before tax
50.8
42.0
8.8
-12.0
-9.3
-2.7
Result after tax
38.8
32.7
6.1
EBIT
58.2
48.0
10.2
Non recurring
-2.0
-2.1
0.1
REBIT
60.2
50.1
10.1
Amortisation
-6.9
-6.0
-0.9
REBITA
67.1
56.1
11.0
Tax
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Seasonal pattern
In € million or %
2008
2007
Difference
Net profit
% year
Net profit
% year
Net profit
% year
Q1
9.3
24.0%
8.3
25.4%
1.0
12.0%
Q2
9.2
23.7%
7.1
21.7%
2.1
29.6%
18.5
47.7%
15.4
47.1%
3.1
20.1%
8.1
20.9%
6.6
20.2%
1.5
22.7%
26.6
68.6%
22.0
67.3%
4.6
20.9%
12.2
31.4%
10.7
32.7%
1.5
14.0%
38.8
100.0%
32.7
100.0%
6.1
18.7%
Q3
Q4
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Balance sheet
In € million
2008
2007
New
2007
Old
Non-current assets
292.2
249.6
249.6
Work in progress
139.2
141.7
141.7
Prepayments
2007
New
2007
Old
Equity
174.9
157.2
157.2
Non-current liabilities
130.4
148.0
148.0
73.8
67.3
Other
248.2
224.0
224.0
Current liabilities
322.0
291.3
224.0
Balance total
627.3
596.5
529.2
27.9
26.4
29.7
-67.3
Net work in progress
139.2
141.7
74.4
Trade and other receivables
166.4
171.6
171.6
29.5
33.6
33.6
Current assets
335.1
346.9
279.6
Balance total
627.3
596.5
529.2
Cash
2008
Prepayments
Solvency
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Cash flow
In € million
Actual 2008
Actual 2007
Profit after income tax
38.8
32.7
Depreciation & amortisation
18.3
18.3
-16.0
-23.8
1.2
2.7
Other
-7.8
-0.8
Net cash from operations
34.5
29.1
Net cash in investing activities
-39.6
0.9
Dividends paid
-19.5
-13.3
31.5
3.4
Redemptions loans
-29.8
-28.2
Net cash financing activities
-17.8
-38.1
NET CASH FLOW
-22.9
-8.1
Working capital
Joint ventures
New loans
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Growth Q4 2008 (Net Revenue)
In € million or %
Incl. currency
Net Revenue Q4 2008
%
172.8
5.5
157.2
Growth
15.7
Net divested / Invested (2007/Q4 2008)
10.7
Organic growth
%
172.8
Currency
Net Revenue Q4 2007
Excl. currency
5.0
157.2
10.0%
21.2
13.5%
10.7
3.2%
10.5
6.7%
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Ratio’s Q4 2008 vs Q4 2007
In € thousand
2008
Q4
2007
Q4
Amount of
Difference
Difference
%
Total Revenue
219.4
205.2
14.2
6.9%
Net Revenue (own production)
172.8
157.2
15.6
10.0%
Earnings before interest and taxes
18.2
16.0
2.2
14.0%
EBITA
21.1
17.4
3.7
21.2%
EBIT %
8.3%
7.8%
10.5%
10.2%
9.6%
8.5%
12.2%
11.1%
12.2
10.7
1.5
14.3%
5.6%
5.2%
EBIT % (Net Revenue)
EBITA % (Revenue)
EBITA % (Net Revenue)
Result after tax
Result after tax / revenue
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MARKET &
STRATEGY
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Strategy 2007-2010
 Consolidation in our home markets (Belgium,
Denmark, Germany, the Netherlands, Sweden
and the United Kingdom)
 Top 3 position in Europe
 Expansion in new niche markets involving
products such as water, energy and
transportation (including rail)
Enhanced
profitability
8-9%
Reorganisation of
current business
 Gaining new market share
 Entering new regions in Central and Eastern
Europe
 Selected PFI (private finance initiatives
Strategy
Portfolio
management
Divestments step
by step
 non core
 poor performers
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Strategy 2007-2010
Towards a solid Northwest European platform
Revenue
(in € x 1.000 )
1500
1250
sector specialisation
to global services
1000
sustainable design
& management
750
500
250
B, D, NL
2004
no. 1 in The Netherlands
B, DK, D, NL, S, UK
2007
no. 4 in Europe
B, DK, D, NL, S, UK
> 2010
no. 1-3 in Europe
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Market: diversified and well spread portfolio
Geography
7%
Market Segments
Client Base
4%
15%
7%
28%
41%
39%
11%
15%
50%
13%
31%
19%
20%
Netherlands
Denmark
UK/Ireland
Environment, Water, Energy
Government
Utility
Sweden
Belgium
Germany/Poland
Building, Industry
Private
M ultinationals
Other
Transportation
Figures in % of Total Revenue
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Market conditions
Pressure on growth & pricing
Energy, Water &
Environment
Transportation
Building & Industry
Belgium
Industry poor
Denmark
Building poor
Germany
Central
Europe
n.a.
Building poor
Netherlands
Sweden
United
Kingdom
Building poor
Good
OK
Poor
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The European market
Recession 2009-2010 but stable demand in most market sectors
Forecasted GDP growth 2009
•
•
No forecasted GDP growth in 2009
Economic Recovery Plan of € 200 bn
and additional stimulus
> 0%
0 to -1,4%
-1,5% to -2.9%
≥-3.0%
Sweden
2009 2010
-1,4% +1,2%
Estonia
2009 2010
-4,7% +1,2%
Denmark
UK
2009 2010
-2,8% +0,2%
2009 2010
-1,0% +0,6%
Latvia
2009 2010
-6,9% -2,4%
Netherlands
•
Grontmij’s market sectors: ongoing
demand for
─ transportation, water, energy,
environment, schools, hospitals
2009 2010
-2,0% +0,2%
Lithuania
2009 2010
-4,0% -2,6%
Ireland
Poland
2009 2010
-5,0% +0%
2009 2010
+2,0% +2,4%
Czech Rep.
2009 2010
+1,7% +2,3%
Belgium
2009 2010
-1,9% +0,3%
Hungary
2009 2010
-1,6% +1,0%
Germany
•
Slowdown building and industry
2009 2010
-2,3% +0,7%
Turkey
2009 2010
-1,5%* +1,7%*
Sources: European Commission,
* Economist Intelligence Unit
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Drivers for growth in Grontmij businesses
EXTERNAL
• GDP growth
• EU investments
• Urbanisation
• Government privatization
• Climate change
POLICIES
• Recovery/stimulus plans:
Building, Transport, Energy
INTERNAL
• Relational resources
– Relationships
– Reputation
• Competences
– Knowledge
– Capabilities
– Attitude
RISKS
• Downturn private sector (building & industry)
• Pricing
• Capacity/utilization
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Major urban and economic development
Focus on:
• Urbanisation
• Transportation
• Water
• Climate & energy
(Source: ESPON)
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Transportation
Trans European Network priority axes and projects (TEN-T)
Total investments
2007-2020
> € 100 Bn
Strong demand
• Highways
• Rail
• Waterways/harbors
(Source: TEN-T)
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Energy
Trans European Network priority axes and projects (TEN-E)
Total investments
2007-2020
> € 100 Bn
Steady demand in:
 Transmission
 Distribution
 Renewals
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OUTLOOK
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Outlook
• Governmental market remains robust (70%)
─ Transportation, Water, Energy, Environment
• Slowdown building and industrial services
• Solid position, well spread portfolio
• Economic stimulus expected to accelerate demand
• Manage clients, costs, cash
• Uncertainty and turmoil (currency)
Equaling 2008 results challenging perspective for 2009
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