Highlights
Revenue EUR 2,201 million, increase +8% (organic +3.1%)
Operating profit (EBITA) +10% to EUR 247 million; EBITA-margin 11.2%
Net profit before amortisation +11% to EUR 168 million; earnings per share EUR 1.52
Free cash flow +27% to EUR 222 million
Strengthened market positions due to acquisitions Nexus Valve, Flamco and Impreglon
Dividend proposal +12% to EUR 0.46 per share in cash

Key figures
in EUR million
2014 2013 DELTA
Revenue 2,201 2,040 8%
Added-value 1,332 1,223 9%
Added-value as a % of revenue 60.5 60.0
Operating profit (EBITDA) 332 305 9%
EBITDA as a % of revenue 15.1 14.9
Operating profit (EBITA) 247 225 10%
EBITA as a % of revenue 11.2 11.0
Net profit before amortisation 168 152 11%
Average number of shares (x million) 110.6 110.1 -
Earnings per share before amortisation (x EUR 1) 1.52 1.38 10%
Cash dividend per share (x EUR 1) 0.46 0.41 12%
Total equity as a % of total assets 47.9 52.8
Net debt 690 480 44%
Leverage ratio: Net debt / EBITDA (12-months-rolling) 1.9 1.6
Interest cover ratio (12-months-rolling) 22.6 19.0
Net debt / Total equity 0.6 0.5
Cash flow (net profit + depreciation + amortisation) 253 232 9%
Free cash flow (before interest and tax) 222 175 27%
Capital expenditure 85 106 (20%)
Net working capital 427 373 14%
Net working capital as a % of revenue (12-months-rolling) 18.0 18.3
Capital employed 1,866 1,535 22%
Return on capital employed (ROCE 12-months-rolling) 14.0 14.6
Number of employees at end of period (x1) 14,492 12,311 18%
Effective tax rate in % 27.4 26.8

Chief Executive Officer
ANOTHER GOOD YEAR FOR AALBERTS INDUSTRIES. WE MANAGED TO REALISE A RECORD REVENUE OF EUR 2,201 MILLION AND A RECORD NET PROFIT OF EUR 168 MILLION, AN INCREASE OF 11% COMPARED TO 2013. EARNINGS PER SHARE INCREASED 10% TO EUR 1.52.
As a result of our focus on technologies with growth potential and continuous improvement of our joint marketing and sales approach, we have achieved an organic growth of 3.1%, despite difficult conditions in Europe in some markets.
In addition to the organic growth, we strengthened our market positions with three acquisitions (Nexus Valve, Flamco and Impreglon). These are valuable additions to our product and technology portfolio and our global service network As a group we have delivered a good performance and managed to increase the free cash flow with 27%. Despite two major acquisitions, we managed to keep our net debt to a level below two times EBITDA with an equity of 48% of total assets.
A cash dividend of EUR 0.46 per share (2013: EUR 0.41) will be proposed, an increase of 12%.

Financial results
The revenue increased by 8% (3.1% organic) to EUR 2,201 million (2013: EUR 2,040 million). The added-value margin (revenue minus raw materials and work subcontracted) amounted to 60.5% (2013: 60.0%).
Operating profit (EBITA) increased by 10% to EUR 246.7 million (2013: EUR 224.6 million), 11.2% of total revenue (2013: 11.0%). Net interest expenses amounted to EUR 15.7 million (2013: 16.0 million). Income tax increased to 56.4 million (2013: 49.8 million); the effective tax rate was 27.4% (2013: 26.8%). Net profit before amortisation increased by 11% to EUR 167.9 million (2013: EUR 151.7 million), EUR 1.52 per share (2013: EUR 1.38).
Investments in tangible fixed assets decreased by 20% to EUR 85 million (2013: EUR 106 million). Net working capital increased to EUR 427 million, 18.0% of revenue (2013: EUR 373 million, or 18.3%), mainly due to acquisitions. The free cash flow improved strongly and increased by EUR 47 million to EUR 222 million (2013: EUR 175 million). The return on capital employed (ROCE) was 14.0% (2013: 14.6%).
Total equity remained at a good level of 47.9% of total assets (2013: 52.8%), while as a result of acquisitions, net debt increased by EUR 210 million to EUR 690 million (2013: EUR 480 million). The leverage ratio was 1.9, well below the bank covenant <3.0; the interest cover ratio improved from 19.0 to 22.6.

Operational developments
In Building Installations the markets in Europe were still challenging. Positive signs were visible in some countries. The sales of product lines with growth potential was successful. North America made a good year. Especially because of the growth of the new products and complete offering of the portfolio. The focus will remain on improving our joint marketing and sales approach, efficiency improvements and the utilisation of the various production sites.
In Climate Control good growth was achieved. The cooperation within this activity is intensified. Also the business is strengthened with two acquisitions. Nexus Valve, with a leading position in balancing valves, offers an opening to the North American market. The acquisition in the Netherlands of the strong brand Flamco extends the portfolio with expansion vessels, safety and efficiency-control valves. These additions enable Climate Control to offer a complete system solution with high added-value in many countries.

Industrial Controls achieved organic revenue growth, despite a decline in the semiconductor market during the year and challenging conditions in the Russian market in the second half year. In contrast, especially the activities in the industrial markets in North America and Europe and the beer & soft drink market performed well. Local investments and new products kept revenue on a good level in the district energy and oil & gas activities. Also several projects started to further improve (production) efficiency.
Industrial Services showed good revenue growth, although there was an impact by start-up and expansion costs of several production sites. Some smaller locations were integrated in bigger facilities to realise more efficiency. The acquisition of Impreglon strengthened the market position in surface treatment, the technology portfolio and the service network, especially in North America.

Outlook
Dividend
The focus remains on continuous strengthening of the market positions, improvement of the marketing and sales approach, further implementation of the Operational Excellence projects and the integration and optimisation of the recent acquisitions.
It is expected that further profitable growth will be realised in 2015.

Dividend
Aalberts Industries proposes to increase the cash dividend per ordinary share by 12% to EUR 0.46 (2013: EUR 0.41). A proposal will be submitted to the General Meeting, to be held on 21 April 2015.

tijd 09.02
De Midcap 721,22 +2,59 +0,36% Aalberts EUR 27,98 +49ct vol. 32.000