annual report 2012 - hydratec.nl · lan’s strength is its project-based approach to the execution...
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ANNUAL REPORT 2012
Hydratec Industries NV
Nijverheidsweg Noord 40
Postbus 328
3800 AH Amersfoort
The Netherlands
Telephone: Int. + 31 (0)33 469 73 25
E-mail: [email protected]
Internet: www.hydratec.nl
Registered offi ce in Amersfoort, the Netherlands, and listed in the Commercial Register
of the Amersfoort Chamber of Commerce under number 23073095.
Disclaimer: this international annual report 2012 serves as an indicative and shortened
version of the offi cial Dutch annual report 2012, which is published on the company’s
website www.hydratec.nl. In case of contradictions, the Dutch version shall prevail.
1 HYDRATEC INDUSTRIES NV
2 Profi le and organisation 3 Agri & Food Equipment
3 Pas Reform Hatchery Technologies
4 LAN Handling Systems
5 Man Machine Interfaces
5 Danielson Europe
6 Plastics
6 Timmerije
7 Euro Mouldings
8 Key fi gures
10 Major events in 2012
11 Strategy and fi nancial targets
12 Information for shareholders 13 Foreword from the CEO 14 Supervisory Board 15 Report of the Supervisory Board 17 Management Board
18 Report of the Management Board18 Business development during 2012
18 Financial developments
19 Dividend proposal
20 Developments per activity
20 Agri & Food Equipment
21 Man Machine Interfaces
22 Plastics
23 Health, safety and environment
24 Personnel and organisation
24 Risk management
26 Corporate Governance statement
26 In control statement
27 Outlook and expectations for 2013
27 A word of thanks
28 Summarised annual accounts 201229 Consolidated profi t and loss account
30 Consolidated summary of comprehensive income
31 Consolidated statement of changes in group equity
32 Consolidated balance sheet
33 Consolidated cash fl ow statement
34 Five year summary
36 Contact details
2 PROFILE AND ORGANISATION
Hydratec Industries NV (Hydratec) is an industrial holding company of companies that supply high-quality
products and systems and occupy strong positions in the following market segments:
the global agri and food markets;
the European Man Machine Interface (MMI) applications market;
the Benelux and German plastic products and packaging industries.
Man Machine Interfaces (MMI) PlasticsAgri & Food Equipment
Pas Reform, with a presence in over 100 countries, is one of the world’s leading incubator manufacturers.
3
Pas Reform is an international company that offers innovative total solutions for the
hatchery industry. Since its founding in 1919 the Company has expanded into one of the
world’s largest hatchery systems suppliers. Pas Reform is active in the following product
groups:
industrial incubators for the production of uniform, robust day-old chicks;
hatchery automation systems for the effi cient processing of hatching eggs
and day-old chicks;
climate control equipment for sustainable and hygienic air and water treatment.
Pas Reform has extensive experience with providing advice regarding these systems and with
their design, installation and operation.
At the heart of the Company is the Pas Reform Academy which, in close co-operation with
clients and universities, carries out research into the infl uence of the incubation process on
embryo development. This specialist expertise is used to develop new, innovative products
and services for the hatchery industry and to train and guide hatchery managers.
Pas Reform exports to more than one hundred countries. Sales and service activities are
carried out via the head offi ce in Zeddam and a joint venture in Brazil. Pas Reform also
has its own sales offi ces in Asia and an extensive network of local partners and agents.
The products are distributed all over the world from the logistics centre in Doetinchem.
Pas Reform’s eighty employees focus primarily on the development, sale, fi nal assembly
& installation, and service of the hatchery systems.
www.pasreform.com
Pas Reform Hatchery TechnologiesAGRI & FOOD EQUIPMENT
LAN specialises in the handling of packaged food and pharmaceutical products.
4
LAN has specialised in the handling of packaged food and pharmaceutical products during
the sterilization process since 1970. LAN’s systems are client-specifi c and form the
connection between fi lling machines, sterilisation boilers and packing machines in a
production line. They are used to position, pick up and move products of various sizes and
shapes and made from a variety of materials. This enables the most complex packaging to
be processed in every required quantity.
LAN has expanded its product range to include automation systems for the effi cient
processing of hatching eggs and day-old chicks.
LAN’s strength is its project-based approach to the execution of large and complex systems:
inventive robot technologies and mechanical solutions are combined with advanced control
technologies to achieve a production line that works perfectly. This demands intensive
co-operation within the project teams and with the client. This is why LAN’s organisation
and operations revolve around teamwork and partnerships with clients.
Most of LAN’s revenue is generated outside the Netherlands. Its loyal clients include
multinationals such as Mars, Nestlé Purina, Campbell’s, Kraft and Del Monte.
The systems are developed and assembled by sixty employees in the facility in Tilburg.
Due to the client-specifi c character of the projects the heart of the Company is formed by
the engineering department where specialists design the systems’ mechanical, electrical
and control technologies. Manufacture of the components is contracted-out. LAN’s own
specialists then assemble, test and install the system.
www.lan-hs.com
LAN Handling SystemsAGRI & FOOD EQUIPMENT
Danielson is one of the top suppliers of man machine interfaces in Europe.
5
Danielson develops, manufactures and builds innovative electronic control panels that
enable complex machinery to be operated in demanding environments.
In its market approach Danielson’s priority is to identify the needs of its clients and design
every solution to the client’s specifi cations. Danielson’s clients are machinery and equipment
builders in the medical sector and manufacturers of industrial automation equipment.
Thanks to its client-oriented approach, in which Danielson’s specialists advise clients at
an early stage in the development process, Danielson occupies a top position in the
European market. Danielson’s objective for the coming years is to strengthen this position
still further.
Danielson develops control panels in the form of membrane switches, rubber keypads,
piëzo switches and touchscreens. The Company’s innovative strength is apparent in every
component of the solution: from the simple switch to complex electronics. In all these fi elds
Danielson ranks among the top in terms of both innovation and quality. The capacitive
touchscreens recently developed in-house are a clear example of this.
Danielson, with 165 employees, serves the entire European market. The Company has two
production facilities in Hardenberg (NL) and Aylesbury (UK). To ensure clients are provided
the optimum service sales engineers responsible for maintaining direct contact with clients
are located in Europe’s main industrial centres.
www.danielsoneurope.com
www.danielson.co.uk
Danielson EuropeMAN MACHINE INTERFACES
Timmerije is a leading designer and manufacturer of high-quality plastic products in the Benelux.
6
Timmerije is an ISO / TS 16949 certifi cated full-service manufacturer of technologically
complex plastic injection-moulded components. Timmerije’s machine park includes fi fty
injection-moulding machines, with pressures varying from 25 ton to 1,400 ton, and state
of the art 2K injection moulding, gas injection, insert moulding and in-mould decoration
techniques.
As a ‘Custom Moulder’ with over one hundred employees, its own engineering department
and its own tool maker, Timmerije provides client-specifi c solutions.
Delivering quality and working with the client to fi nd solutions are in the Company’s DNA.
Timmerije’s integrated, professional approach to product and process development and
extensive expertise and experience results in smart and sustainable solutions for its clients.
The sustainable use of materials and the reduction of waste are key criteria.
Timmerije’s engineering services include product development, material selection, mould
fl ow / FEA studies, prototyping, matrix design, automation and value engineering. Timmerije
also offers additional services such as assembly, painting, printing, ultrasonic welding and
delivery up to and including the packaging. Timmerije’s logistics organisation ensures
fl exibility in supply and a high degree of delivery reliability.
www.timmerije.com
TimmerijePLASTICS
Euro Mouldings is a specialised supplier of client-specifi c plastic packaging.
7
Euro Mouldings manufactures blow moulded plastic packaging. A combination of
acquisitions and organic growth has enabled the company to build-up a wide range of
packaging. Currently the factory in Nijverdal, the Netherlands, has 38 blow moulding
machines which produce products ranging from 20 millilitre bottles to 30 litre jerry cans.
Many of the bottles and containers carry the UN-label, which indicates that they are suitable
for transporting hazardous materials.
The wide product range means many different markets can be served including the
automotive, chemicals, food, cosmetics and agricultural sectors. The majority of the products
are made of High Density Polyethylene (HDPE).
Many of the products are manufactured using Euro Moulding’s own moulds. In addition
to these ‘standard’ products Euro Mouldings also produces client-specifi c packaging.
New products are continuously being developed (either independently or to fulfi l an order
from a client). The focus here is on improved functionality, logistics advantages, weight-
savings and image.
Euro Mouldings strives to generate added-value in the fi eld of logistics for its clients. Most of
the products are available from stock. In view of the voluminous nature of the products the
timing of deliveries is very important. Most deliveries are to clients in the Netherlands,
Germany and Belgium.
The combination of development capacity for new packaging and logistics added-value
is summarised in Euro Mouldings’ mission: ‘Your design our specialty‘.
With around sixty employees Euro Mouldings is a reliable, fl exible and client-oriented
supplier of plastic packaging.
www.euromouldings.com
Euro MouldingsPLASTICS
Net revenue
100,000
120,000
80,000
60,000
40,000
20,000
0
55,137
84,190
119,997
20112010 2012
Net profit
5,000
6,000
4,000
3,000
2,000
1,000
0
1,765
3,631
4,695
20112010 2012
Operating profit
7,500
9,000
6,000
4,500
3,000
1,500
0
7,071
5,523
3,073
20112010 2012
Average number of employees
20112010 2012
500
600
400
300
200
100
0
330
381
474
Profit per share (in euro)
5
4
6
3
2
1
0
1.49
3.07
3.84
20112010 2012
Group equity
30,000
36,000
24,000
18,000
12,000
6,000
0
22,875
26,589
30,442
20112010 2012
KEY FIGURES Amounts in thousands of euros unless stated otherwise8
9
Profi t and loss account 2012 2011
Net revenue 119,997 84,190
Operating profi t 7,071 5,523
Net profi t 5,392 4,159
Net profi t attributable to shareholders 4,695 3,631
Cash fl ow
Cash fl ow from operating activities 9,814 10,888
Cash fl ow from investing activities – 4,451 – 18,304
Cash fl ow from fi nancing activities – 1,687 733
Net cash fl ow 3,676 – 6,683
Balance sheet
Shareholders’ equity 28,403 24,640
Group equity 30,442 26,589
Balance sheet total 85,572 76,889
Key ratios 2012 2011
Operating profi t as a % of revenue 5.9% 6.6%
Return on invested capital / 1 11.5% 8.2%
Return on shareholders’ equity / 2 17.7% 15.9%
Solvency / 3 35.6% 34.6%
Number of issued shares 1,222,143 1,222,143
Profi t per share (in euro) 3.84 3.07
Number of employees at year end (FTEs) 479 466
1 / Net profi t + interest charges as a % of the average invested capital (total assets minus cash and cash equivalents minus current, non-interest-bearing liabilities).
2 / Net profi t as a % of the average shareholders’ equity.3 / Group equity as a % of the balance sheet total.
Key fi gures Amounts in thousands of euros unless stated otherwise
Net revenue rose from € 84 million to € 120 million, primarily as a result of the contribution throughout the year from the Agri & Food activities acquired at the end of 2011.
All the activities were confronted with a reduction in demand, especially in the second half of the year.
The weak market demand combined with relatively high raw materials prices led to severe pressure on prices in all sectors and, as a result, reduced margins.
A considered choice was made not to reduce the capacity of the companies’ core competencies. Operating costs fell by around 1% compared with the previous year due to stringent cost control.
Operating profi t rose from € 5.5 million to € 7.1 million.
The activities acquired at the end of 2011 contributed € 4 million towards the total operating profi t.
Net profi t rose from € 4.2 million to € 5.4 million.
Profi t per share rose from € 3.07 to € 3.84.
As in previous years, a dividend payout to shareholders amounting to 40% of the net profi t is proposed, which means a dividend of € 1.55 per share.
Despite the uncertain and weak macro-economic developments the companies invested € 4.5 million in developing new products, making manufacturing processes more effi cient and, where necessary, increasing capacity.
An improvement in the economic situation will lead to a structural improvement of the companies’ results.
At the end of 2012 Hydratec’s solvency amounted to 35.6%.
MAJOR EVENTS IN 201210
Active entrepreneurship
Because the activities of the different groups are very varied there is no basis for central staff
departments, which means overhead costs are limited to the minimum. Business operations
are based on a high degree of target-oriented, no-nonsense management within which
active entrepreneurship and stimulating leadership can fl ourish best. This enables the local
Management Boards to respond quickly and effectively to opportunities and threats.
Financial targets
Hydratec strives to achieve an operating profi t with its subsidiaries of at least 10% of revenue.
This profi t target can, however, temporarily fail to be achieved primarily as a consequence of
economic conditions and due to the reorganisation of acquired, less profi table, companies.
Together with the envisaged growth and a solvency of at least 35%, Hydratec strives for
a dividend distribution amounting to at least 40% of the profi t after taxes (excluding any
extraordinary income).
Strategy
Hydratec is an industrial holding company with majority interests in a number of different
business activities. The strategy is aimed at achieving consistent, long-term growth of revenue
and profi t from each of these companies. The strategic market positions and market options
of each business activity are evaluated annually. These evaluations form the basis for decisions
regarding long-term investments and priorities in respect of market developments. This must
offer our shareholders the prospect of a consistent and good return.
Motivated management and employee organisations
It is very important that every one of the companies has a good and motivated management
team that optimises its company’s market positions and results in a practical and realistic manner.
The personal development of the employees is stimulated on a continuous basis. Ambitious,
but realistic, targets form a guideline for everyone involved through well-founded scenarios.
The Management Boards of Hydratec’s companies are responsible for carrying out their own
operating activities within a clear framework of decisions related primarily to the budget,
investments, major organisational changes and fundamental amendments to business operations
that require the approval of the Hydratec Management Board. All business aspects, including
the development of the results, are discussed during the regular consultation meetings between
Hydratec’s Management Board and the Management Boards of the operating companies.
These discussions are based on a clear framework of regular reports, including assessments of
the most important performance indicators.
11 STRATEGY AND FINANCIAL TARGETS
Financial data per ordinary share
Amounts in euros unless stated otherwise
2012 2011
Number of issued shares 1,222,143 1,222,143
Operating profi t 5.79 4.52
Shareholders’ equity 23.24 20.16
Profi t per share 3.84 3.07
Available cash fl ow / 1 4.39 – 6.07
Dividend 1.55 1.20
Price at year end 21.00 18.05
Lowest price 17.00 14.70
Highest price 25.80 19.98
1 / Operating cash fl ow minus investment cash fl ow.
Stock market listing and market capitalisation
Hydratec’s shares are listed on NYSE Euronext Amsterdam (ISIN NL 000 939 1242).
The total number of issued shares amounts to 1,222,143.
Disclosure of Major Holdings Act
The following interests governed by the Disclosure of Major Holdings Act are known:
Shareholder Interest Date of disclosure
Mr. E. ten Cate 79.5% 23 March 2011
Zoomers Beheer BV 6.0% 1 November 2006
Financial calendar 2013
Publication of annual fi gures 29 March
Trading update fi rst quarter 8 May
General Meeting of Shareholders 30 May
Publication of half-year fi gures 25 July
Trading update third quarter 7 November
12 INFORMATION FOR SHAREHOLDERS
Hydratec and its companies profi t from standards and values that are the result of the intense
involvement of their shareholders. Key values are open and direct communication between
all the components of the companies, cost awareness and stringent fi nancial reporting.
The operational management is aimed at achieving long-term structural growth of revenue
and profi tability. Currently the economic outlook remains weak and there is still considerable
uncertainty regarding important political decisions. Unfortunately this is not a good basis
for economic growth.
Despite this I see no reason to be pessimistic regarding the outlook for Hydratec. All the
companies have formulated concrete actions and measures to enable better results to be
achieved from revenue that remains roughly the same. In addition, not one of the companies
already holds such a dominant share of the market that there is no scope for revenue growth!
I am confi dent that, especially in these uncertain times, clients will deliberately choose high-
quality suppliers that can offer them assurance and timely deliveries.
Every manufacturer can, in principle, have the same knowledge, raw materials and production
tools at their disposal. This means that what can make the difference is the knowledge and
strength of the organisation and, therefore the motivation and ambition of the management.
In my view every Hydratec company has good and ambitious managers and, therefore, an
excellent starting position for making the most of market opportunities and improving results.
Roland Zoomers CEO
It goes without saying that the uncertain economic conditions throughout 2012 affected
demand for the Hydratec companies’ products. As a result, clients not only ordered less products
overall, they also ordered more often, but in much smaller quantities, so as to keep their
inventory positions low. The consequence was a constant need to fi nd a balance between saving
and/or lowering costs (short term) and retaining core competencies within the organisation,
including the development of better production methods and product applications (long term).
Thanks to the intense and direct involvement of Hydratec’s shareholders there is a focus on
continuity and long-term structural growth. This is especially important in times when the
economic climate is less favourable because this is precisely when investment in the future is
vital.
During 2012 there was considerable investment in every Hydratec company, not only in capacity
expansion but also in revamping products and improving manufacturing processes. These
investments were made on the basis of the confi dence that the companies occupy structurally
good market positions and will, therefore, profi t from the investments when demand increases
again.
Another example of a willingness to look beyond the current crisis is the fact that virtually all
the companies deliberately terminated supplying non-profi table clients despite the temptation to
opt for covering the fi xed costs at the expense of minimal margins. In a period in which every
business activity is an effective link in the complex client-supplier chain it is especially important
that both parties can achieve fair and market-conforming returns. Both parties must also be
willing to invest in optimising the mutual processes. Unfortunately there are still some clients,
mainly In the so-called supply industry, that want to use their position of power to enforce too
low prices or unrealistic delivery conditions. But incurring a lot of work (and therefore costs) on
behalf of clients who only order infrequently, or in extremely low quantities, without there being
any potential for future growth, makes no sense.
13 FOREWORD FROM THE CEO
From left to right: J.E. Vaandrager, E. ten Cate and H.A.A. Kienhuis.
14
E. ten Cate (1945) Chairman
First appointed: 2000
Current term ends: 2016
Current position: director Bank ten Cate & Cie NV
Supervisory Board memberships/other positions held
Supervisory Board member, Koninklijke Ten Cate nv
Chairman of the Supervisory Board, Rijksmuseum Twente
Supervisory Board member, Medisch Spectrum Twente
H.A.A. Kienhuis (1945) Vice-chairman
First appointed: 2011
Current term ends: 2015
Last position held: lawyer and attorney
Supervisory Board memberships/other positions held
Vice-chairman, Stichting Edwina van Heek
Member of the Board, Stichting Continuïteit Reesink NV
J.E. Vaandrager (1943)
First appointed: 2011
Current term ends: 2015
Last position held: member of the Board and CFO, TKH Group NV
Supervisory Board memberships/other positions held
Supervisory Board member, HITT NV
Supervisory Board member, B.E. Semiconductor Industries NV
All the Supervisory Board members are Dutch nationals.
SUPERVISORY BOARD
15
extremely well with the Supervisory Board and is unique in view of his expertise and experience
related to the creation of today’s Hydratec. Mr. Ten Cate is also a major shareholder and,
as such, plays an important role in the stability of the Company. Mr. Ten Cate was, therefore,
re-appointed for a fourth term of four years during the General Meeting of Shareholders on
31 May 2012.
Supervision and meetings
During 2012 fi ve scheduled meetings were held with the Management Board. Prior to the
General Meeting of Shareholders on 31 May 2012 the Supervisory Board, in the absence of
the Management Board, evaluated the functioning of the Management Board and itself.
During its meetings the Supervisory Board discussed the strategy, acquisition policy, risk
management, quarterly and half-yearly results, 2011 annual fi gures, 2013 budget and the
remuneration policy.
The integration of the Lias Industries companies acquired in 2011 was discussed during every
meeting and was completed as planned. In 2012 the Supervisory Board devoted an extra meeting
to Timmerije, which was not developing as expected. The effects of the economic crisis on the
markets in which the Hydratec-companies operate were, of course, also discussed, as well as
measures to achieve increased profi t from the same level of revenue, in light of the current crisis.
Corporate Governance
The Supervisory Board endorses the objectives of the guidelines contained in the Dutch
Corporate Governance Code for listed companies. In view of the size of the organisation and
the number of Supervisory Board members no separate committees have been formed. Currently
Mr. E. ten Cate is the only member of the Board who does not meet the independence criteria as
laid-down in paragraph III. 2.2, clause e of the Code. More information regarding the Company’s
position can be found on www.hydratec.nl.
The uncertain economic climate has had repercussions for Hydratec’s business development.
In the light of the current situation we are very pleased that net profi t (before minority shares)
rose from € 4.2 million to € 5.4 million, an increase of 29% compared with 2011. A major
portion of this increase was due to the fact that the two business activities acquired in 2011 –
Pas Reform and LAN – contributed towards Hydratec’s revenue and results throughout the entire
year.
Despite the unfavourable market conditions it was decided that this was the right time for
Hydratec to invest, particularly in product revamping and improving manufacturing processes.
This policy was formulated and followed on the basis of confi dence that this would contribute
towards enabling the Hydratec companies to improve their market positions and results.
Annual report
We hereby submit to the shareholders the 2012 annual report, including the annual accounts, of
Hydratec Industries NV prepared by the Management Board. These annual accounts have been
audited and certifi ed by the external auditor, BDO Audit & Assurance, and discussed by us and
the Management Board on 28 March 2013 in the presence of the auditor. The auditor’s report is
included on pages 65 and 66 of the offi cial Dutch 2012 annual report, which can be found on
the company’s website www.hydratec.nl. On these grounds we are of the opinion that the
annual report meets the specifi cations for transparency and forms a good basis for the
Supervisory Board’s accountability in respect of its supervision.
We recommend that you adopt the annual accounts, approve the dividend proposal and
discharge the Management Board for its management and the Supervisory Board for its
supervision during 2012.
Composition of the Supervisory Board
During 2012 the Supervisory Board comprised Messrs. Ten Cate, Kienhuis and Vaandrager.
During 2012 Mr. Ten Cate ended his third term as a member of the Company’s Supervisory
Board. Although the best practice stipulations of the Corporate Governance Code recommend
a maximum of three terms, the Supervisory Board is of the opinion that Mr. Ten Cate’s profi le fi ts
REPORT OF THE SUPERVISORY BOARD
16
Composition of the Management Board
Mr. Bart Aangenendt was appointed to the Management Board as of 1 January 2012.
The statutory Management Board of Hydratec Industries NV comprised Mr. R. Zoomers
and Mr. B. Aangenendt. Mr. M. van den Burg was appointed CFO of the Company as
of 1 December 2012.
Remuneration of the Management Board
An agreement, that expires on 1 September 2015, has been reached with the CEO,
Mr. R. Zoomers. This agreement covers all the Company’s obligations in respect of fi xed salary
and pension agreements. Should this contract be terminated by the Company before the agreed
date the recompense will amount to one year’s salary. A bonus directly linked to the operating
profi t for the 2012 fi nancial year was agreed. The Supervisory Board has again agreed on
a bonus linked to the operating profi t for the 2013 fi nancial year.
As of 1 January 2012 Mr. B.F. Aangenendt has been appointed a member of the Management
Board for a fi rst term of up to four years. He will remain a member of the Management Board of
Lias Industries B.V. and Pas Reform BV and his employment agreement with these companies
remains valid. In the context of his appointment as a statutory Director of Hydratec Industries NV,
a bonus directly linked to the operating profi t has also been agreed with Mr. Aangenendt.
Remuneration policy
The Supervisory Board of Hydratec Industries NV follows a remuneration policy for the
Company’s Management Board based on the following principles:
The Management Board remuneration policy must enable good managers to be
recruited and retained.
The remuneration policy must be in accordance with the Company’s Corporate
Governance policy.
The remuneration must be compatible with the strategic and fi nancial targets and be
performance-oriented, whereby there should be a good balance between short-term
and long-term results and/or targets.
The remuneration may not include any incentives aimed at the recipients own
interests and in confl ict with the interests of the Company.
The possible outcomes of the remuneration policy are evaluated annually.
The remuneration of the members of the Management Board is specifi ed in Note 1.24.2 on
page 45 of the offi cial Dutch 2012 annual report, which can be found on the company’s website
www.hydratec.nl.
Non compliance with the Management and Supervision Act
Currently there are no women on Hydratec’s Management Board or Supervisory Board.
The Supervisory Board recognises the advantages of diversity, including gender diversity.
The Board is, however, of the opinion that gender is only one aspect of diversity. Members of
the Management Board and Supervisory Board will, in the future, continue to be selected on
the basis of their experience, background, skills, knowledge and insight and with particular
consideration being given to the importance of a balanced composition.
In conclusion
The Supervisory Board is grateful to the Management Board, the management teams and all
the employees for their efforts, dedication and ambition during 2012 and the results achieved
in a diffi cult year.
Amersfoort, 11 April 2013
Supervisory Board
E. ten Cate Chairman
H.A.A. Kienhuis Vice-chairman
J.E. Vaandrager
Report of the Supervisory Board
Roland Zoomers (1950)
Statutory Director
CEO
First appointed: 2002
Current term ends: 2015
Shareholding in Hydratec NV: 6.0%
Bart Aangenendt (1964)
Statutory Director
Managing Director
First appointed: 2012
Current term ends: 2016
Shareholding in Hydratec NV: 3.2%
Mark van den Burg RC (1969)
First appointment: 2012
CFO
All the members of the Management Board are Dutch nationals.
MANAGEMENT BOARD17
From left to right: B.F. Aangenendt, R. Zoomers and M.C. van den Burg RC.
18
Net profi t
Net profi t for 2012 amounted to € 5.4 million (2011: € 4.2 million).
Net profi t after deducting the third party share was € 4.7 million (2011: € 3.6 million).
Business development during 2012
The revenue and gross margin for 2012 were € 120 million and € 48.7 million respectively.
The main reason for the 43% increase in revenue was that the results of Agri & Food Equipment,
which was acquired at the end of 2011, were included for the entire year (in 2011 from
September to December). The € 60.9 million revenue generated by this activity amounts to more
than half Hydratec’s total revenue. The revenue of MMI and Plastics was 1% lower than in 2011.
Hydratec’s gross margin fell from 44% in 2011 to 41% in 2012. This was due to a combination
of higher raw materials prices in the Plastics segment and pressure on margins in the Agri & Food
Equipment sector as a result of sluggish market investment.
Financial developments
The operating profi t for 2012 amounted to € 7.1 million (2011: € 5.5 million), which was 5.9%
of revenue. Agri & Food Equipment was responsible for € 4.4 million of the operating profi t.
All the segments made a positive contribution towards Hydratec’s result.
Financial income and expenses
In 2012 net interest charges amounted to € 527,000 compared with € 108,000 in 2011.
The increase was due to the acquisition of the Agri & Food Equipment activity which was
fi nanced partly through bank loans. At the end of 2012 the Company’s bank credit balance was
€ 10 million. This high fi gure was due mainly to pre-payments received for clients’ orders.
Interest income was € 117,000 due to the prevailing low interest rates.
Fiscal effects
The effective tax rate over 2012 was 17.6% compared with 23.2% in 2011. The lower rate was
due primarily to the utilisation of the innovation box regulation which reduced the tax payable
over 2012.
REPORT OF THE MANAGEMENT BOARD
SmartHatchPro™ for the production of uniform, robust one-day-old chicks.
19
Cash fl ow
In 2012 operational cash fl ow amounted to € 9.8 million (2011: € 10.9 million).
Cash fl ow from investing activities amounted to € 4.5 million negative. Almost all the
investments involved property, plant and equipment, which meant a level of investment almost
double that of 2011.
Cash fl ow from fi nancing activities amounted to € 1.7 million negative (2011: € 733,000
positive) mainly due to the dividend distribution of € 1.5 million.
Balance sheet
In 2012 the agreements regarding the put/call option of the share of the minority shareholders
in Lias (11.5%) was once again reviewed. As a result it was decided to present the put-option
as a long-term obligation in the balance sheet. At the end of 2012 the amount involved was
estimated at € 3.1 million. The comparable fi gures for 2011 have been adjusted.
Dividend proposal
It will be proposed to the General Meeting of Shareholders that a dividend of € 1.55 per share
be paid out for the 2012 fi nancial year (2011: € 1.20 per share). This sum will be paid in cash.
The profi t for 2012 will be added to the other reserves. This dividend distribution is in line with
the policy of paying out at least 40% of the profi t after taxes.
Report of the Management Board
‘Net profi t rose from € 4.2 million to € 5.4 million.’
20
After several years of robust growth, 2012 was a year in which Agri & Food Equipment
optimised its internal processes in a diffi cult, competitive market and saw its revenue stabilise
compared with 2011.
High feed costs put margins under pressure in the global poultry industry and resulted in
a reduced demand for hatchery products. Although most of the drop in revenue was offset
by an increasing demand for other Agri & Food products, this puts margins under pressure.
The long-term outlook for the poultry industry is positive: increasing world population,
urbanisation and welfare are key factors for an increasing demand for poultry.
Pas Reform’s fl exibility enables it to respond quickly and effi ciently to fl uctuating levels of client
demand. Pas Reform’s position was strengthened further by the introduction of new, client-
oriented, product innovations, such as the SmartHatchPro™ – a sustainable version of the
existing hatching machine.
The Pas Reform Academy, which offers clients high-quality training and translates clients’ wishes
into new hatchery products, increases the added-value Pas Reform can offer its clients and is
highly appreciated by the market.
The global distribution network was strengthened still further and the sales offi ce in Indonesia in
particular achieved high revenue in 2012. Russia remained a major sales market. The order book
for this region is well fi lled, including the large Cherkizovo project.
LAN Handling Systems BV achieved good revenue and greatly improved results. Modern
mechanisation equipment that will improve the effi ciency of clients’ hatchery operations was
also developed.
Developments per activityAgri & Food Equipment: Pas Reform Hatchery Technologies and LAN Handling Systems
€ x 1,000 2012 2011
Revenue 60,934 61,938
Gross margin 20,228 20,825
Depreciation and amortisation 498 449
Investments 982 665
Operating profi t 4,388 5,048
Number of FTEs at year end 142 131
1 / Figures for the entire year for information purposes; only the fi gures for the period 1 September
to 31 December 2011 are consolidated.
/ 1
Pas Reform Academy investigates the infl uence of the incubation process on embryo development.
Report of the Management Board
21
In 2012 Danielson Europe was confronted with a reduced demand from existing clients in
virtually every market and, in addition, a number of new projects were delayed or postponed.
As a result revenue was 9.8% lower than for 2011 and operating profi t amounted to 6.2% of
revenue.
During 2012 Danielson paid considerable attention to customer satisfaction. It is this satisfaction
that leads to new orders. To ensure Danielson is able to pay suffi cient attention to its major
clients and is involved in these clients’ new projects at an early stage, in 2012 Danielson
transferred a number of its smaller clients to its Industrial Graphics department. Unfortunately
the extra projects resulting from this could not offset the overall reduction in revenue.
In 2012 the implementation of World Class Manufacturing – the multi-year quality improvement
programme launched in 2011 – continued throughout the Company. The resulting improvement
in quality will enable Danielson to continue meeting clients’ increasingly stringent demands.
The continued development of touchscreen know-how throughout the year increased the
expertise in innovative touchscreens and the related electronics and enabled new touchscreens
to be developed based on projected capacity technology and with glass screens and multi-touch
capabilities. By the end of 2012 several orders had been received from renowned clients.
With these innovative products Danielson has a competitive offering and is, therefore, in
a position to maintain its lead in this fi eld. Towards this end, in 2012 the Company once again
committed considerable investments. All the necessary machines are now operational.
Investment programmes in the fi eld of energy effi ciency, heating, air conditioning and
compressed air contributed towards reducing costs and improving the environment and
sustainability.
Man Machine Interfaces: Danielson Europe
€ x 1,000 2012 2011
Revenue 20,801 23,073
Gross margin 11,113 12,314
Depreciation and amortisation 636 559
Investments 1,042 513
Operating profi t 1,281 1,971
Number of FTEs at year end 164 169
Innovative products offer Danielson a market lead.
Report of the Management Board
22
Plastics: Euro Mouldings and Timmerije
€ x 1,000 2012 2011
Revenue 39,049 37,254
Gross margin 17,354 17,411
Depreciation and amortisation 1,484 1,366
Investments 2,627 1,692
Operating profi t 1,383 2,237
Number of FTEs at year end 171 165
The price of raw materials during 2012 played a key role for the Plastics companies because raw
materials account for a relatively large portion of the manufacturing costs. The continuous
increase of these prices throughout the year could only be passed-on per quarter and in arrears.
As a result the margin was lower than in the preceding year, especially for plastic packaging.
This effect was offset by further volume growth. As the supplier of a wide range of products
Timmerije noticed very clearly the effects of weak market demand, which reduced sales volumes.
At Euro Mouldings in Nijverdal the production capacity was expanded because the client base
increased and an old machine needed replacing. At Timmerije two large injection moulding
machines were added because a number of important new orders were acquired in this market
segment.
Possibilities for reusing plastic are sought continuously. Most of the so-called manufacturing
waste is immediately reused in the on-going manufacturing process. In addition, continuous
research is carried out and possibilities for using recycled plastic in new products are found.
Although, in most cases, this does not generate cost advantages it does lead directly to a more
sustainable use of raw materials.
Report of the Management Board
The quadruple blow moulding matrix for manufacturing the 1 litre GLX.
23
Health, safety, environment and sustainability
A focus on good, and above all safe, working conditions is key for maintaining a consistently
controlled and high-quality manufacturing process. Paying constant attention to employees, and
in particular their working conditions, is especially important for industrial companies. Not only
to minimise absenteeism through sickness but also to guarantee maximum safety within the
manufacturing processes. Programmes aimed at introducing continuous improvement are used
and implemented by the employees of every Hydratec company. Virtually every industrial
process involves environmental risks. Limiting these risks is an important area of attention for
the management teams. Environmental risk assessments are, therefore, carried out at the
manufacturing facilities on a regular basis and, if necessary, lead to the immediate
implementation of measures and procedures to reduce the risks still further. Increasingly the
processes are also checked for possibilities to improve the sustainability of our products and/or
manufacturing processes. This aspect will become increasingly important. Not only to offset the
ever higher energy prices, but also because we expect increasingly stringent requirements
specifi ed by our clients.
Recycled plastics lead to a sustainable use of raw materials.
Report of the Management Board
‘We have continued investing in new products and more effi cient manufacturing processes.’
24
This growth strategy may also require investments that cannot always be fi nanced from our own
resources and available credit facilities. It may, therefore, be necessary to call on the capital
market and/or shareholders. Maintaining a strong solvency ratio is, therefore, an important basis
for continuity.
Commercial
Although the Plastics companies’ top-10 clients account for around 65% of the total turnover,
the largest client accounts for less than 10%. If a large client terminates its relationship with the
company the loss of revenue cannot be offset immediately. In view of the fact that such client
relationships involve a wide range of products, should a client relationship be terminated the
actual loss of revenue would be gradual. Although two of the MMI company’s clients are
responsible for nearly 25% of the total turnover revenue, here too these clients purchase more
than 20 and 200 different products respectively. Changing supplier would be a lengthy process
for both these clients. The top-10 clients of the Agri & Food Equipment companies account for
50% of the revenue. Indonesia and Russia with around 38% and 18% of the revenue in 2012
are important sales regions.
Product liability and product risks
Within the Hydratec companies many different manufacturing processes are carried out on a
relatively small scale and often involving a low level of automation. The resulting increased risk
of human error and incidental manufacturing faults can lead to a loss of product quality and
the discontinuity of the manufacturing process. In addition the Hydratec companies carry out
a considerable amount of product development, which increases the risk of design faults.
This can lead to relatively high costs for clients, who will endeavour to be recompensed by their
Personnel and organisation
As at the end of 2012 the workforce had risen from 466 to 474 FTEs. As a principle we strive for
strong local organisations with a high degree of entrepreneurship and a sense of responsibility
for all business processes. The human resources policies are implemented at the operating
company levels. At this level attention is paid to safety, accident prevention and absenteeism
and, above all, to the creation and maintenance of a loyal organisation with suffi cient fl exibility
and ambition. Within every company there is regular and constructive consultation with the local
Works Council. The central Management Board participates in this consultation at least once a
year partly in the absence of the local manager.
Currently Hydratec’s Management Board and Supervisory Board do not include any women.
The Supervisory Board recognises the advantages of diversity, including gender diversity.
We are, however, of the opinion that gender is only one aspect of diversity. Members of the
Management Board and Supervisory Board will, in the future, continue to be selected on the
basis of their experience, background, skills, knowledge and insight and with particular
consideration being given to the importance of a balanced composition.
Risk management
Hydratec Industries NV’s growth, acquisition and new activities
The growth of its revenue and results is at the core of Hydratec’s strategy. We endeavour to
achieve this by a combination of the organic growth of every company and selective acquisitions.
We believe that continuous growth is necessary for healthy business development and stimulate
our companies to improve their competitive positions by achieving product improvements and
innovations. Product developments are, however, based primarily on identifi ed concrete
requirements of clients and potential clients.
Hydratec wishes to strengthen its market positions, gain synergy advantages and gradually
expand its revenue and geographical area of operations through acquisitions. Hydratec also
remains abreast of opportunities in sectors in which it is not yet active. This can mean that
Hydratec acquires activities in new markets in which it does not have a proven track record
of experience and/or expertise.
Report of the Management Board
‘ We strive for strong local organisations with a high degree of entrepreneurship.’
Real estate
Our companies are increasingly being confronted with more stringent requirements regarding
possible soil contamination in the event of new construction or renovation. These stipulations
could lead to higher costs when expanding, or lower proceeds from the sale of real estate.
Environmental risks
Manufacturing and processing plastic products and (silk-screen) printing fi lms go hand-in-hand
with environmental risks. Limiting these risks is a key issue for the Hydratec companies which
must, at all times, focus on the environmental aspects relevant to their operations and the
prevention of calamities. The current situation and related (fi nancial) risks at the manufacturing
facilities are evaluated and recorded on a regular basis. The aim of the evaluation is not only to
ensure compliance with environmental legislation, but also to assess what preventative measures
can be implemented. The recognised environmental risks are, when necessary, converted into
concrete action plans. The effectiveness of the implemented measures is checked continuously in
order to limit the risks as far as possible. In addition to the preventative measures, Hydratec’s
policy is also aimed at reducing the total environmental burden. The waste streams of all the
companies have been optimised with the objective of generating less waste. Developments that
can lead to improved environmental care will continue to be closely monitored in the future.
Automation
Hydratec strives to achieve manufacturing effi ciency and logistics advantages through, for
example, far-reaching automation. Its success is increasingly dependent on the timely and correct
implementation and/or extension of automation systems. This makes the organisation more and
more dependent on the proper functioning of these systems.
supplier. All the companies implement strict quality standards and carry out Risk Inventories and
Evaluations (RIE). All the companies are ISO certifi cated or comply with an ISO-based quality
system. All the companies are insured against product liability.
At all the companies product manufacture involves many different machines, which reduces the
risk of the breakdown of one machine constituting a major manufacturing risk.
Suppliers
The Plastics companies purchase raw materials that are used on a global scale by all plastics
companies. Although only a relatively few extremely large global suppliers operate in these raw
materials production markets, the (lack of) availability of these raw materials does not constitute
a real risk.
The MMI company is the largest client of two specifi c companies, purchasing 20-25% of their
total production. These suppliers supply respectively 20% and 10% of the total volume
purchased by the MMI company. Although this represents a high degree of mutual dependency,
the MMI company does have the option of purchasing these products from other suppliers.
The Agri & Food companies use a variety of suppliers: Eastern European companies for the more
mass-produced products and companies in the region for specifi c components and smaller
quantities. The largest supplier (< 10% of the purchase volume) is based in the Czech Republic.
Large clients/key accounts
In the MMI segment 19% of the total revenue is generated through sales to one large client.
This company has been a client for many years and purchases a wide range of different products.
Should this client decide to terminate the relationship the loss of revenue would be spread over
a period longer than a year.
None of the other segments have any individual clients responsible for more than 20% of the
segment’s revenue.
Report of the Management Board25
‘Operational management is aimed at achieving long-term structural growth of revenue and profi t.’
At least once a year a General Meeting of Shareholders is organised during which all the
resolutions are approved on the basis of the ‘one share, one vote’ principle. Shareholders,
individually or with a joint interest of at least 1% of the issued shares, are entitled to ask the
Management Board or Supervisory Board to add particular topics to the agenda. Important
Board resolutions which could result in a change to the Company’s identity or character must be
approved by the General Meeting of Shareholders. The Company’s Articles of Association are
published on the Company’s website as are the main tasks and authorities of the General
Meeting of Shareholders and the Supervisory Board.
In control statement
Hydratec’s Management Board is of the opinion that the risk management and control systems
provide a reasonable level of assurance that the fi nancial reporting does not contain any material
misstatements. These risk management and control systems functioned properly during the year
under review and we have no indications that they will not function properly during the current
year. The process of refi ning the management and control systems has been, and will continue
to be, evaluated on a continuous basis.
The Hydratec Management Board declares that, to the best of its knowledge, the annual
accounts provide a fair and accurate statement of the assets, liabilities, fi nancial position and
profi ts of the Company and the companies jointly included in the consolidated annual accounts.
The annual report provides a fair and accurate statement of the situation as at the balance sheet
date and the business development during the fi nancial year of the Company and the affi liated
companies for which the data is included in the annual accounts. The annual report describes
the actual risks with which the Company is confronted.
Foreign currency
Hydratec, with the exception of Danielson UK, invoices all its revenue in euros. Danielson
operates in the UK and invoices a large portion of that revenue in pounds sterling. In this respect
Hydratec faces a currency risk related to the translation of the fi nancial results and balance sheet
position into the company annual accounts and any dividend distribution. This risk is partially
hedged via local fi nancing of the working capital. Danielson Europe purchases components and
products from suppliers that invoice in US dollars. This accounts for around 20% of purchases.
In principle these euro/dollar positions are hedged by forward currency contracts. This guarantees
a constant purchase price over a longer period (three to six months).
Corporate Governance statement
The Supervisory Board and Management Board endorse the principles of Corporate Governance
and Hydratec Industries NV complies with the main provisions laid down in the Dutch Corporate
Governance Code. Key concepts such as transparency and accountability to and the participation
of the shareholders form the basis for our policy. We do, however, deem some of the guidelines
to be irrelevant for a SmallCap company. For example, in view of the company’s size and the fact
that its Supervisory Board has less than four members, no committees have been appointed.
The points on which Hydratec deviates from the Code and the reasons why are listed per section
of the Code on the Corporate Governance page of the Company’s website.
The reporting systems used within our companies and the regular reports to the Management
Board are of major importance. Revenue and order in-fl ow are reported weekly. Monthly reports
include the most important fi nancial and operational components, such as revenue, gross
margin, operating costs, operating profi t, orders received, working capital components,
personnel summaries, investments, delivery/supply reliability and effi ciency. These reports form
the basis for monthly meetings between the Management Board and the operating company
managements as well as for the consolidated summaries that are also sent to the Supervisory
Board. The local managements also prepare quarterly reports which include an explanation of
business development within their companies.
26Report of the Management Board
27
Outlook and expectations for 2013
The demand for our companies’ products is, to a great extent, infl uenced by macro-economic
developments. On a Western European scale for the MMI and Plastics companies, and on a
global scale for the Agri & Food Equipment companies. In view of the current uncertain
conditions we are not assuming we will achieve any structural market growth during 2013.
And for the same reason cost management must remain a top priority for our management
teams. Although every one of the companies is well positioned within its industry and has the
capability to achieve higher revenue, under the current conditions this will prove a challenge.
Every one of the companies still has the scope to achieve better results from the same revenue.
It is still too early to make more defi nite statements regarding the results for 2013. Neither
the level of investment nor the workforce are expected to undergo any major changes in 2013
compared with 2012.
A word of thanks
Our clients are confronted with a highly fl uctuating demand for their products and want us,
as their suppliers, to move in tune with this volatility as far as is possible. But without any cost
increases! This means that to maintain our position with our clients, our employees must
respond extremely quickly, must have a sharp eye for all the details and must have the ability to
always come up with a creative solution. We would like to thank our employees for their efforts
and their loyalty which, especially during these economically diffi cult times, gives us a solid
foundation for continuity.
Amersfoort, 11 April 2013
Management Board
Roland Zoomers CEO
Bart Aangenendt Director
Report of the Management Board
28
29 Consolidated profi t and loss account
30 Consolidated summary of comprehensive income
31 Consolidated statement of changes in group equity
32 Consolidated balance sheet
33 Consolidated cash fl ow statement
SUMMARISED ANNUAL ACCOUNTS 2012 Amounts in thousands of euros unless stated otherwise
29
x € 1,000 2012 2011
Net revenue 119,997 84,190
Material usage 71,302 47,080
Gross margin 48,695 37,110
Salaries and wages 19,160 14,878
Social security premiums and pensions 4,135 3,285
Depreciation and amortisation of non-current assets 2,849 2,177
Other operating costs 15,480 11,247
41,624 31,587
Operating profi t 7,071 5,523
Interest income 117 154
Interest expenses 644 262
Financial income and expenses – 527 – 108
Profi t from ordinary activities before taxes 6,544 5,415
Taxes 1,152 1,256
Net profi t 5,392 4,159
Net profi t attributable to:
Shareholders 4,695 3,631
Minority interests 697 528
5,392 4,159
Weighted average number of shares 1,222,143 1,183,308
Profi t per ordinary share (in euros) 3.84 3.07
CONSOLIDATED PROFIT AND LOSS ACCOUNT
30
x € 1,000 2012 2011
Net profi t 5,392 4,159
Currency translation differences 39 63
Result of hedge on fi nancial derivatives – 71 – 11
Change in put-option minority shareholders Lias 567 253
Total profi t after taxes 5,927 4,464
Total profi t attributable to:
Shareholders 5,230 3,876
Minority interest 697 588
5,927 4,464
CONSOLIDATED SUMMARY OF COMPREHENSIVE INCOME
31
x € 1,000Issued capital
Share premium
Statutory reserve
Translationreserve
Hedge reserve
Otherreserves
Undistributed profi t Total
Minority interest
Total group equity
Position as at 1 January 2011 532 2,713 4 – 445 – 91 16,686 1,765 21,165 1,710 22,875
Shareholder related changes:
– Share issue 18 705 722 722
– Dividend distribution 2010 – 1,183 – 1,183 – 1,183
– Dividend minority shareholders – 159 – 159
Other changes:
– Profi t appropriation 2010 1,765 – 1,765 0 0
– Acquisition Agri & Food Equipment 958 958
– Currency translation differences foreign participations 63 63 63
– Value differences interest rate swaps – 11 – 11 – 4 – 15
– Put-option minority shareholders Lias 253 253 – 1,084 – 831
– Profi t 2011 3,631 3,631 528 4,159
Position as at 31 December 2011 550 3,418 4 – 382 – 102 17,521 3,631 24,640 1,949 26,589
Shareholder related changes:
– Dividend distribution 2011 – 1,467 – 1,467 – 1,467
– Dividend minority shareholders – 317 – 317
Other changes:
– Profi t appropriation 2011 3,631 – 3,631 0 0
– Currency translation differences foreign participations 39 39 39
– Value differences interest rate swaps – 71 – 71 3 – 68
– Put-option minority shareholders Lias 567 567 – 293 274
– Profi t 2012 4,695 4,695 697 5,392
Position as at 31 December 2012 550 3,418 4 – 343 – 173 20,252 4,695 28,403 2,039 30,442
CONSOLIDATED STATEMENT OF CHANGES IN GROUP EQUITY
32
x € 1,000 2012 2011
ASSETS
Intangible fi xed assets 19,171 19,271
Tangible fi xed assets 22,151 20,293
Financial fi xed assets 215 587
Total non-current assets 41,537 40,151
Stocks 14,695 17,136
Trade debtors 16,174 14,091
Taxes and social security premiums 1,131 1,708
Other receivables 1,716 1,947
Accrued assets 333 281
Cash and cash equivalents 9,986 1,575
Total current assets 44,035 36,738
Total assets 85,572 76,889
x € 1,000 2012 2011
LIABILITIES
Shareholders’ equity 28,403 24,640
Minority interests 2,039 1,949
Group equity 30,442 26,589
Personnel-related provisions 539 487
Deferred tax liabilities 2,226 2,544
Other provisions 813 1,035
Non-current debts 6,575 7,479
Financial instruments 3,334 3,516
Total provisions and
non-current debts 13,537 15,061
Trade creditors 7,875 7,712
Taxes and social security premiums 1,600 1,483
Owed to banks 11,299 5,610
Other debts and accrued liabilities 20,819 20,434
Total current liabilities 41,593 35,239
Total liabilities 85,572 76,889
before profi t appropriationCONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER
33
x € 1,000 2012 2011
Profi t before taxation 6,544 5,415
Adjustment for:
– Depreciation and amortisation 2,849 2,177
– Book profi t/loss on sale of fi xed assets – 6 13
Financial income and expenses 527 108
Changes in provisions – 186 350
Changes in working capital:
– Stocks 2,462 2,871
– Current receivables – 2,451 496
– Current liabilities 600 277
611 3,644
Financial income and expenses received/paid – 369 – 164
Profi t tax paid – 156 – 655
Cash fl ow from operating activities 9,814 10,888
Investments in intangible assets – 174 – 116
Disposal of intangible assets 6 0
Investments in tangible assets – 4,477 – 2,259
Disposal of tangible assets 51 166
Investments in fi nancial assets 0 – 185
Disposal of fi nancial assets 143 0
Acquisition Agri & Food Equipment* 0 – 15,910
Cash fl ow from investing activities – 4,451 – 18,304
* After deduction of acquired cash and cash equivalents.
x € 1,000 2012 2011
Dividend paid to shareholders – 1,467 – 1,183
Dividend paid to former shareholders
Agri & Food Equipment 0 – 1,930
Third party dividends
(Plastics / Agri & Food Equipment) – 317 – 159
Repayment of non-current liabilities – 290 – 352
Non-current borrowings 387 4,357
Cash fl ow from fi nancing activities – 1,687 733
Net cash fl ow 3,676 – 6,683
Currency translation differences 2 22
Change in cash and cash equivalents 3,678 – 6,661
Cash and cash equivalents as at I January – 3,641 3,020
Cash and cash equivalents as at 31 December 37 – 3,641
CONSOLIDATED CASH FLOW STATEMENT
34
2012 2011 2010 2009 2008
Profi t and loss account
Net revenue 119,997 84,190 55,137 17,322 20,398
Operating profi t 7,071 5,523 3,073 – 1,223 2,201
Operating profi t excluding one-time income 7,071 5,523 3,073 – 1,223 1,705
Net profi t to be allocated to shareholders 4,695 3,631 1,765 – 255 9,708
Net profi t excluding one-time income 4,695 3,631 1,765 – 590 1,550
Cash fl ow
Cash fl ow from operating activities 9,814 10,888 1,661 653 4,324
Cash fl ow from investing activities – 4,451 – 18,304 – 10,295 – 1,277 10,654
Cash fl ow from fi nancing activities – 1,687 733 – 1,869 – 1,222 – 1,183
Net cash fl ow 3,676 – 6,683 – 10,503 – 1,846 13,795
Balance sheet
Shareholders’ equity 28,403 24,640 21,165 20,540 21,876
Group equity 30,442 26,589 22,875 20,861 22,190
Balance sheet total 85,572 76,889 36,992 24,079 25,408
/ 1
/ 2
/ 3
/ 3
/ 3
Amounts in thousands of euros unless stated otherwise
1 / Based on continued business
activities.
2 / 2010 cash fl ow adjusted on basis of movement in cash and cash equivalents and bank current account.
3 / Revised.
FIVE YEAR SUMMARY
35
2012 2011 2010 2009 2008
Key ratios
Operating profi t as a % of revenue 5.9% 6.6% 5.6% – 7.1% 8.4%
Return on invested capital 11.5% 8.2% 8.2% – 7.6% 16.2%
Return on shareholders’ equity 17.7% 15.9% 8.5% – 1.5% 8.7%
Solvency 35.6% 34.6% 61.8% 86.6% 87.3%
Information per ordinary share (in euros)
Operating profi t 5.79 4.52 2.60 – 1.03 1.44
Shareholders’ equity 23.24 20.16 17.89 17.36 18.49
Profi t per share 3.84 3.07 1.49 – 0.22 8.21
Profi t per share excluding one-time income 3.84 3.07 1.49 – 0.50 1.31
Dividend 1.55 1.20 1.00 1.00 1.00
Price at year end 21.00 18.05 15.00 14.30 15.86
Lowest price 17.00 14.70 12.40 13.50 15.86
Highest price 25.80 19.98 16.25 19.44 24.87
Other information
Average number of employees 474 381 330 158 167
Net revenue per employee 253.2 221.0 167.1 109.6 122.1
Salary costs per employee 49.1 47.7 43.6 39.1 37.2
/ 4
4 / Excluding one-time income.
Amounts in thousands of euros unless stated otherwise Five year summary
36 CONTACT DETAILS
Hydratec Industries NV
CEO Roland Zoomers
Director Bart Aangenendt
Address Nijverheidsweg Noord 40
Postbus 328
3800 AH Amersfoort
The Netherlands
Telephone Int. + 31 (0)33 469 73 25
E-mail [email protected]
Website www.hydratec.nl
Agri & Food Equipment
Pas Reform BV
Managing Director Bart Aangenendt
Address Bovendorpsstraat 11
Postbus 2
7038 ZG Zeddam
The Netherlands
Telephone Int. + 31 (0)314 65 91 11
E-mail [email protected]
Website www.pasreform.com
LAN Handling Systems BV
Managing Director Harm Langen
Address Jules Verneweg 123
5015 BK Tilburg
The Netherlands
Telephone Int. + 31 (0)13 532 25 25
E-mail [email protected]
Website www.lan-hs.com
Man Machine Interfaces
Danielson Europe BV
Managing Director Peter Boerdijk
Address De Nieuwe Haven 12
7772 BC Hardenberg
The Netherlands
Telephone Int. + 31 (0)523 28 12 00
E-mail [email protected]
Website www.danielsoneurope.com
Danielson UK Ltd.
Managing Director Peter Boerdijk
Address 29 Pembroke Road
Stocklake, Aylesbury Bucks
HP20 1DB
England
Telephone Int. + 44 (0)12 96 31 90 00
E-mail [email protected]
Website www.danielson.co.uk
Plastics
Euro Mouldings BV
Managing Director Martin Essink
Address Ambachtsweg 3
7442 CS Nijverdal
The Netherlands
Telephone Int. + 31 (0)548 61 10 07
E-mail [email protected]
Website www.euromouldings.com
Timmerije BV
Managing Director Wim Simons
Address Schoolweg 29
Postbus 3
7160 AA Neede
The Netherlands
Telephone Int. + 31 (0)545 28 38 00
E-mail [email protected]
Website www.timmerije.nl
Hydratec Industries NV
Nijverheidsweg Noord 40
Postbus 328
3800 AH Amersfoort
The Netherlands