Download - FY2008 Figures March 2009
1 dbs6657
FY2008 Figures
March 2009
GrontmijSustainable design & engineering
2 dbs6657
Contents
1. Results 2008 Headlines
2. Financial performance 2008
3. Market & strategy
4. Outlook 2009
3 dbs6657
RESULTS 2008
HEADLINES
4 dbs6657
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%
5 dbs6657
Grontmij 2008: Key Facts
500
600
700
400
800
900
Total revenue (€ mln)
543
846
15
20
25
10
30
35
Net result (€ mln)
22.1
38.8
0.50
1.00
1.50
0.00
2.00
2.50
Earnings/share (€)
1.31
2.16
‘08‘07‘06 ‘08‘07‘06 ‘08‘07‘06
773
+10%
32.7
+18,5%
40
1.84
+17%
6 dbs6657
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 (2007: 9.0)
• Solvency 27.9% (2007: 26.4%)
• Net debt / EBITDA 1.1 (2007: 1.4)
7 dbs6657
Grontmij’s growth 1998-2008
309369
472511 495 481 473
441
846
543
773
38,8
9,6
13,716
11,1 13,9
4,9
11,1 13
22,9
32,7
0
100
200
300
400
500
600
700
800
900
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Tu
rno
ver
€ m
ln
0
5
10
15
20
25
30
35
40
45
Net
pro
fit
€ m
ln
Divest Non-core
Carl Bro Acquisition
Restructuring NL
Acquisition/ share issue
8 dbs6657
0
10
20
30
40
50
60
70
2004 2005 2006 2007 2008
€ million
0,0%
1,0%
2,0%
3,0%
4,0%
5,0%
6,0%
7,0%
8,0%
9,0%
10,0%
EBITA margin%
EBITA % of tot rev % of net rev
Operating margin improvement (EBITA)
9 dbs6657
Creating value in operations
sell/stop
norm
repair
Consultancy & DesignMultidisciplinary
projectmanagement
8
6
4
2
12
10
0
EngineeringAsset
management& maintenance
Turnkey Contracting
more cooperation top design firms
limited “own” technology
invest in competences
training
cost cutting sell / partner
industr. eng. decrease
volume
risk mgt training PFI with
contractors
invest framework contract
1 3 42 5
cross selling
EBITA %
enlarge
decrease
enlarge
2006
2003
2007
2008
10 dbs6657
EBIT per country on Total Revenue
EBIT per country (%)
6,2% 6,1%
8,2%
6,2%
10,3%
6,1%6,3%
7,8%
8,4%
7,5%
6,1%
12,6%
8,2% 8,1%
5,2%
6,1%
8,0%
9,2%
4,0%
5,0%
6,0%
7,0%
8,0%
9,0%
10,0%
11,0%
12,0%
13,0%
Belgium Denmark Germany/Poland The Netherlands United Kingdom/Ireland
Sweden
2006 Pro forma
2007
2008
11 dbs6657
Share price performance 2004-2008
Indexed share price movement (100 on 3 March 2005)
0
50
100
150
200
250
300
350
400
Grontmij
AEX
AScX
2004 2005 2006 2007 2008
12 dbs6657
0,44 0,530,75
1,10 1,15
0,690,81
1,23
1,84
2,16
0,00
1,50
3,00
2004 2005 2006 2007 2008
in €
dividend per share earnings per share
Solvency 27.8 27.6 26.8 26.4 27.9
Dividend and Earnings per share - trendRemains at high level
13 dbs6657
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
14 dbs6657
FINANCIAL
PERFORMANCE 2008
15 dbs6657
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%
Total operating expenses 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%
Tax -11.951 -9.272 -2.679 28.9%
Profit after income tax 38.770 32.720 6.050 18.5%
16 dbs6657
Growth 2008 (Net Revenue)
In € million or % Incl. currency % Excl. currency %
Net Revenue 2008 664.0 664.0
Currency 16.3
Net Revenue 2007 598.1 598.1
Growth 65.8 11.0% 82.1 13.7%
Net divested / Invested (2007/2008) 33.0 33.0
Organic growth 32.8 5.5% 49.1 8.2%
17 dbs6657
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
18 dbs6657
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%
Earnings before interest and taxes 58.2 48.0 10.2 21.2%
Amortisation 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%
Result after tax 38.8 32.7 18.5%
Result after tax / Revenue 4.6% 4.2%
19 dbs6657
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%
Germany/Poland 66.607 8.375 12.57% 51.377 3.236 6.30%
Netherlands 332.050 27.316 8.23% 315.195 24.488 7.77%
Sweden 88.998 7.147 8.03% 96.277 7.186 7.46%
UK / Ireland 115.412 9.325 8.08% 85.764 7.202 8.40%
Holdings 13.470 -9.805 20.623 -8.758
846.223 58.186 6.88% 772.846 47.992 6.21%
Interest -7.465 -6.000
Tax -11.951 -9.272
38.770 4.58% 32.720 4.23%
20 dbs6657
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
21 dbs6657
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
Tax -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
22 dbs6657
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%
Q3 8.1 20.9% 6.6 20.2% 1.5 22.7%
26.6 68.6% 22.0 67.3% 4.6 20.9%
Q4 12.2 31.4% 10.7 32.7% 1.5 14.0%
38.8 100.0% 32.7 100.0% 6.1 18.7%
23 dbs6657
Balance sheet
In € million 2008 2007
New
2007
Old
2008 2007
New
2007
Old
Non-current assets 292.2 249.6 249.6 Equity 174.9 157.2 157.2
Work in progress 139.2 141.7 141.7 Non-current liabilities 130.4 148.0 148.0
Prepayments -67.3
Net work in progress 139.2 141.7 74.4 Prepayments 73.8 67.3
Trade and other receivables 166.4 171.6 171.6 Other 248.2 224.0 224.0
Cash 29.5 33.6 33.6 Current liabilities 322.0 291.3 224.0
Current assets 335.1 346.9 279.6
Balance total 627.3 596.5 529.2 Balance total 627.3 596.5 529.2
Solvency 27.9 26.4 29.7
24 dbs6657
Cash flow
In € million Actual 2008 Actual 2007
Profit after income tax 38.8 32.7
Depreciation & amortisation 18.3 18.3
Working capital -16.0 -23.8
Joint ventures 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
New loans 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
25 dbs6657
Growth Q4 2008 (Net Revenue)
In € million or % Incl. currency % Excl. currency
%
Net Revenue Q4 2008 172.8 172.8
Currency 5.5
Net Revenue Q4 2007 157.2 157.2
Growth 15.7 10.0% 21.2 13.5%
Net divested / Invested (2007/Q4 2008) 10.7 10.7
Organic growth 5.0 3.2% 10.5 6.7%
26 dbs6657
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%
EBIT % (Net Revenue) 10.5% 10.2%
EBITA % (Revenue) 9.6% 8.5%
EBITA % (Net Revenue) 12.2% 11.1%
Result after tax 12.2 10.7 1.5 14.3%
Result after tax / revenue 5.6% 5.2%
27 dbs6657
MARKET &
STRATEGY
28 dbs6657
Strategy 2007-2010
Strategy
Enhanced profitability
8-9%
Divestments stepby step non core poor performers
Gaining new market share Entering new regions in Central and Eastern
Europe Selected PFI (private finance initiatives
Expansion in new niche markets involving products such as water, energy and transportation (including rail)
Consolidation in our home markets (Belgium, Denmark, Germany, the Netherlands, Sweden and the United Kingdom)
Top 3 position in Europe
Reorganisation of current business
Portfolio management
29 dbs6657
Strategy 2007-2010Towards a solid Northwest European platform
2004no. 1 in The Netherlands
2007no. 4 in Europe
B, DK, D, NL, S, UK
250
1500
1250
1000
750
500
> 2010no. 1-3 in Europe
B, D, NL
Revenue(in € x 1.000 )
B, DK, D, NL, S, UK
sector specialisation to global services
sustainable design& management
30 dbs6657
Market: diversified and well spread portfolio
Geography
4%7%
7%
11%
13%19%
39%
Netherlands Denmark UK/Ireland
Sweden Belgium Germany/Poland
Other
Market Segments Client Base
41%28%
31%
Environment, Water, Energy
Building, Industry
Transportation
50%
20%
15%
15%
Government Utility
Private Multinationals
Figures in % of Total Revenue
31 dbs6657
Market conditionsPressure on growth & pricing
Energy, Water & Environment
Transportation Building & Industry
Belgium
Denmark
Germany
Central Europe
n.a.
Netherlands
Sweden
United Kingdom
Good OK Poor
Industry poor
Building poor
Building poor
Building poor
32 dbs6657
The European marketRecession 2009-2010 but stable demand in most market sectors
> 0%> 0%
0 to -1,4%0 to -1,4%
-1,5% to -2.9%-1,5% to -2.9%
≥-3.0%≥-3.0%
Sources: European Commission,
* Economist Intelligence Unit
2009 2010-1,4% +1,2%
2009 2010-2,8% +0,2%
2009 2010-5,0% +0%
2009 2010-1,9% +0,3%
2009 2010-2,0% +0,2%
2009 2010-1,0% +0,6%
2009 2010+2,0% +2,4%
2009 2010-2,3% +0,7%
2009 2010+1,7% +2,3%
2009 2010-1,6% +1,0%
2009 2010-1,5%* +1,7%*
2009 2010-4,7% +1,2%
2009 2010-6,9% -2,4%
2009 2010-4,0% -2,6%
Sweden
UK
Netherlands
Denmark
Ireland
Belgium
Estonia
Latvia
Lithuania
Czech Rep.
Poland
Hungary
Germany
Turkey
Forecasted GDP growth 2009
• No forecasted GDP growth in 2009
• Economic Recovery Plan of € 200 bn
and additional stimulus
• Grontmij’s market sectors: ongoing
demand for
─ transportation, water, energy,
environment, schools, hospitals
• Slowdown building and industry
33 dbs6657
Drivers for growth in Grontmij businesses
EXTERNAL• GDP growth • EU investments • Urbanisation • Government privatization• Climate change
POLICIES• Recovery/stimulus plans:
Building, Transport, Energy
RISKS• Downturn private sector (building & industry)• Pricing• Capacity/utilization
INTERNAL
• Relational resources
– Relationships
– Reputation
• Competences
– Knowledge
– Capabilities
– Attitude
34 dbs6657
Major urban and economic development
(Source: ESPON)
Focus on:• Urbanisation• Transportation• Water• Climate & energy
35 dbs6657
Transportation Trans European Network priority axes and projects (TEN-T)
(Source: TEN-T)
Total investments 2007-2020
> € 100 Bn
Strong demand
• Highways
• Rail
• Waterways/harbors
36 dbs6657
Energy Trans European Network priority axes and projects (TEN-E)
Total investments 2007-2020
> € 100 Bn
Steady demand in:
Transmission
Distribution
Renewals
37 dbs6657
OUTLOOK
38 dbs6657
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