Presentation on theme: "1 De Bilt 18 May 2010 Annual General Meeting of Shareholders."— Presentation transcript:
1 De Bilt 18 May 2010 Annual General Meeting of Shareholders
2 Agenda item 1 Opening Frank L.V. Meysman Chairman of the Supervisory Board Grontmij N.V. / Voorzitter Raad van Commissarissen Grontmij N.V.
3 Agenda item 2 Presentation Executive Board / Presentatie Raad van Bestuur Sylvo Thijsen CEO / Voorzitter Raad van Bestuur Grontmij N.V. Mel Zuydam CFO Grontmij N.V.
4 Agenda item 2 Presentation Executive Board / Presentatie Raad van Bestuur Grontmij Strategic Overview / Grontmij Strategisch Overzicht Results 2009 Headlines / Resultaten 2009 in hoofdlijnen Results Q1 2010 / Resultaten 1 e kwartaal 2010 Outlook
5 Grontmij Strategic Overview / Grontmij Strategisch Overzicht Sylvo Thijsen CEO / Voorzitter Raad van Bestuur Grontmij N.V.
6 Grontmij: a Strong European Network / Grontmij: een sterk Europees Netwerk Strong European regional networkStrong European regional network 150 offices in Europe150 offices in Europe 20 offices RoW*20 offices RoW* 3 Business Lines3 Business Lines –Planning & Design –Transportation & Mobility –Water & Energy 8,000 people8,000 people 25,000 projects a year25,000 projects a year Principle regions:Principle regions: –Nordic –Benelux –UK, Central & Eastern Europe –RoW* * RoW: rest of the World
7 Services & Competences Consultancy & Design Project Management EngineeringContracting Asset Management Project definition Conceptual design Functional program Feasibility study Investment plan Program management Design management Project management Financial, organi- sational and legal management support Technical specs Engineering Detail engineering Work drawings Calculations Samples, surveys Data Supervision Quantity survey Construction management (Turn-key) contract management Maintenance scheme Monitoring & control Facility management
10 Our Group Executive Committee Sylvo Thijsen Chief Executive Officer Mel Zuydam Chief Financial Officer Gert Dral Group Director Planning & Design Ulf Palmblad Group Director Transportation & Mobility Lawrence Hughes Group Director Water & Energy
11 Sylvo Thijsen CEO / Voorzitter Raad van Bestuur Grontmij N.V. Development of Financial & Operational Strategy for Growth 2010 - 2015
12 Strategy timeline Revenue (x 1,000) 1913 1985199119952000201520052010200120092008 Our people 1123741308000 90 125 511 472 435 844 800 242 Acquisition of IHN, BnS, Morzeck Full service concept Invest in real estate Waste operation Building services > 65 % profits from non-core activities Strategic Review Focus on cons. eng. Divest real estate ( > 150 mln ) Invest in Internalisation Carl Bro 2006 Europeanising & focus on business lines Invest in Europe Specialize Water & Energy Start-up connections global networks 1913 – 2000 1 st 500 mln 2000 – 2015 next 1 bln 19131985200020062015
13 Strategic Concept Green by Design Urbanisation & Industrialisation Planning & Design Water & Energy Deliver technical services and organisational capabilities in 3 business lines Natural Resources Improve clients performance sustainable value Transportation & Mobility
14 Financial Goals Our long-term goals are ambitious; they translate into clear financial objectives:
15 Trends Planning & Design 84% of Europeans will live in urban areas 40% of all energy is used by buildings 30% of people > 65 years in 2050 Transportation & Mobility 97% dependence of transport on fossil fuels 25% of all urban trips is public transport 20% increase transport in EU by 2020 Water & Energy 60% of European cities > 100,000 people use more groundwater than replenished 40% (2.6 billion people) dont have access to sanitation 80% reduction of GHG emission of developed countries by 2050
16 Major regions impacting economic development in Europe
17 Changing Market Requirements FromTo Squeezed in the middlePartnership based approach to stakeholders Seamless cooperation Architects or advisors to clients Contractors Technical consultants Technical consultants Contractors Architects or advisors to clients
20 Changing Market Requirements (4) Consulting and Planning Customers increasingly require international cooperation and/or experience Internationalisation Design Large / complex projects often requiring international experience Large / complex projects will attract international bidders
21 Business Lines Planning & Design Bispebjerg Bakke, Copenhagen, DenmarkLightrail, Zoetermeer, the Netherlands SHARON, New York, USA Transportation & Mobility Water & Energy
23 Shanghai World Expo 2010, China Better city – Better life Today His Royal Highness Prince Willem Alexander visits the Shanghai World Expo Grontmij is participating also with its own event in the Holland Pavilion on 15 & 16 July
29 GRI standards used for 25 key indicators that drive performance improvement: Reducing energy use across the group Cutting back transportation emissions Our aspiration is to be carbon neutral by 2013 Corporate Social Responsibility / Duurzaam ondernemen
30 Corporate Social Responsibility / Duurzaam ondernemen GRI standard disclosures - key environmental performance indicators 2009
31 2009: Highlights Revenue 800 million –5% down (3% organic, 2% currency) Operating profit 45 million (2008: 53 million) –Excl. EAIs, restructuring Net profit 20.4 million (2008: 38.8 million) –After 11.7 million restructuring Cashflow 52.3 million (2008: 34.5 million) –104% profit conversion to cash Cost reduction plan –Being implemented, fully provided 2009 Customers –New business lines in operation Dividend 1.00 per share stock or cash (2008: 1.15)
32 Market & Strategy: diversified portfolio Business Lines Total Revenue 2009 Regions Total Revenue 2009 Clients Total Revenue 2009 33 47% 25% 28% 32% 47% 21% 24% 38% 6% 16% Planning & Design Transportation & Mobility Water & EnergyNordic Benelux UK, CEE Public-sector local Private-sector National Private-sector International UtilitiesPublic-sector National
33 Market conditions - remain challenging Forward order book improved Planning & Design Transportation & Mobility Water & Energy Nordic Benelux UK, CEE Denmark Sweden Belgium the Netherlands UK Germany CE RoW Energy/ Industry poor Building poor UK Water frameworks encouraging Transportation strong GoodOKPoor
35 Profitability & Liquidity Drivers Gross Margin: - Net Revenue less Direct Costs –Price –Productivity Efficiency: - Indirect Overheads –Economies of scale –Financial & cost control Liquidity: - EBITDA: Cash Conversion –Working capital management –Cashflow management –Further non core divestments
36 2009: A platform for long term growth Margins - Efficiency - Cash Underlying EBITA and Profit after tax in line with expectations Non-recurring restructuring costs of 4.5 million, and further provisions of 7.2 million - total 11.7 million Strong cash performance resulting in reduced working capital and net debt
37 2009 - Consolidated income statement Revenues declined 5% at net revenue level Gross Margin maintained (revenue less direct costs) Share of profits from EAI 2.7 million, down 1.8 million Restructuring costs 11.7 million Increased tax rate 27% (2008: 24%)
38 Country profitability analysis Nordic region stable in 2009, with some restructuring Benelux region decline in 2009, with significant restructuring UK CEE region decline in UK, profitability maintained CEE
39 Consolidated balance sheet extract Intangible assets & Goodwill –No material acquisitions in year –Amortisation offset by software acquisition & currency differences Focus on billing and collection – 13 million reduction in working capital Net Debt reduction of 12 million Strong cash conversion
40 Strong underlying EBITDA: CASH conversion Conversion of underlying EBITDA –From 53%, to 74% to 104%
41 Strong underlying EPS Basic EPS reduced –Largely due to non-recurring restructuring Adjusted EPS only reduced by 3% Proposed dividend: – 1.00 per share stock or cash
42 Dividend and Earnings per share - trend Remains at high level 20052006200720082009 0.53 0.81 0.75 1.31 1.10 1.84 1.15 2.16 1.00 1.14 Solvency 27.6 26.026.427.728.2 Dividend per share in Earnings per share in
43 Strategy 2010 – 2015: Organic revenue growth, increase of profitability and acquisitions Cross selling –Leveraging customer knowledge, references, skills and expertise across geographical borders –Increasing focus on high margin projects and the growth markets of water, energy and mobility –Benefit from vendor reduction trend in multinational clients Operational excellence, cost reductions and cash conversion –Lower working capital & improved treasury management –Execution of cost reduction program announced Q3 2009 (cost savings 3-5 mln in 2010) –Standardised operation & governance models i.e. ICT and risk Acquisitions –Strengthening the position in water, energy and mobility and relatively fast growing regions such as Central & Eastern Europe 43
44 Results Q1 / Resultaten 1 e kwartaal 2010 Revenue 11% down, of which 9% organic, 2% currency Underlying EBITA down 20% (Q409 21%) Profit after tax 3.7m equals Q1 2009 before profit from divestment Strong 2009 year end cash collection leads to lower operating cash in Q1 2010
45 Results Q1 / Resultaten 1 e kwartaal 2010 Small increase in core EAI Reduced amortisation Some further restructuring in UK, NL & DK Lower interest cost Effective rate of tax maintained
46 Outlook Sylvo Thijsen CEO / Voorzitter Raad van Bestuur Grontmij N.V.
47 Outlook 2010 (Reiterated March 2010) No recovery building market, transportation good Encouraging UK Water AMP5 activity No material profits from divestments of EAI Cost reduction benefits in HY2 2010: 3-5 million Focus on cash & transparency to continue Early signs of forward order improvement; new approach at HY 10: rolling 3 month forward order book First comparatives at HY 10, together with update on expectations for FY 2010
48 A platform for long term growth Any Questions?
49 Agenda items 3 – 12 Frank L.V. Meysman Chairman of the Supervisory Board Grontmij N.V. / Voorzitter Raad van Commissarissen Grontmij N.V.
50 Agenda item 3 a.Verslag van de Raad van Commissarissen en Raad van Bestuur over het boekjaar 2009 b.Corporate governance c.Vaststelling van de jaarrekening 2009 a.Report of the Supervisory Board and Report of the Executive Board for the financial year 2009 b.Corporate Governance c.Adoption of the annual accounts 2009
51 Remuneration policy Current remuneration policy adopted by AGM in May 2005 with amendments in August 2006 Current policy reviewed by Supervisory Board in 2009 In view of economic climate, no amendments deemed necessary
52 Remuneration Executive Board 2010 In view of economic climate –No increase of fixed annual salary bandwiths in 2010 –No increase of fixed annual salary in 2010 –No pay out of individual bonus over 2009 despite achieved individual targets
54 Dividend proposal Dividend per share 2009: 1.00 (in stock or cash) Payment date: 8 June 2010 Dividend per aandeel: 1,00 (in aandelen of contanten) Uitbetaling: 8 juni 2010 20052006200720082009 0.53 0.75 1.10 1.15 1.00 Dividend per share in
55 Agenda item 5 a.Decharge van de leden van de Raad van Bestuur b.Decharge van de leden van de Raad van Commissarissen a.Discharge of the members of the Executive Board b.Discharge of the members of the Supervisory Board
56 Agenda item 6 Wijziging van de statuten Amendment of the articles of assocation
57 Agenda item 7 a.Verlenging van de aanwijzing van de Raad van Bestuur als het orgaan dat bevoegd is te besluiten tot uitgifte van gewone aandelen b.Verlenging van de aanwijzing van de Raad van Bestuur als het orgaan dat bevoegd is te besluiten tot beperking of uitsluiting van het voorkeursrecht a.Extension of the designation of the Executive Board as the body authorised to issue ordinary shares b.Extension of the designation of the Executive Board as the body authorised to limit or exclude the preferential right
58 Agenda item 8 Machtiging van de Raad van Bestuur tot het verkrijgen door de vennootschap van eigen aandelen of certificaten daarvan Authorisation of the Executive Board to acquire own shares or depository receipts for such shares by the company
59 Agenda item 9 De Engelse taal van de jaarrekening en het jaarverslag English language of the annual accounts and annual report
60 Agenda item 10 Verlening opdracht aan accountant tot onderzoek van de jaarrekening 2010 Commissioning auditor to audit the annual accounts for 2010