- Key points for 2020
Revenue amounted to € 189.9 million, down 1% on 2019. Added value increased from 63% to 66% of revenue.
Recurring revenue rose by 14% and now makes up 27% of the total revenue.
The business units Healthcare and Livestock Management posted a robust growth in revenue, which almost entirely compensated for the drop in revenue by the other business units, mainly due to the COVID-19 crisis.
Operating profit amounted to € 17.1 million (€ 17.5 million in 2019), while the operating margin remained more or less the same at 9.0% (9.1% in 2019).
The number of FTEs grew, putting added value per FTE at € 169,000 in 2020 (€ 173,000 in 2019). Net profit amounted to € 13.8 million, i.e. € 2.13 per share. The 2019 net profit, excluding the book profit on the sale of Nedap France, amounted to € 14.2 million.
The final dividend for the 2020 financial year has been set at € 2.25. A one-off interim dividend of € 2.25 was paid in November 2020.
Given the uncertainty as to the duration of the COVID-19 crisis and its impact on the global economy, it is not possible to make a reliable estimate of the revenue development in 2021.
Ruben Wegman, Nedap CEO: “Like many other companies, Nedap felt the impact of the COVID-19 crisis in 2020. The specific effects and the speed at which they occurred, differed for each business unit. Our balanced portfolio with propositions for various markets and our well-timed mitigating measures have seen us safely through the volatile and challenging market circumstances so far. Our solid financial foundation has also helped us to stay in line with our strategic course. We have therefore been able to successfully further improve our propositions and reinforce our market positions, even in this special year, albeit with some fine-tuning to fit in with the economic reality. We are proud of the great sense of responsibility and ability to take action shown by Nedap employees. Being able to continue investing in our employees and in the partnership with customers and business partners even in these times, has set us apart from the rest of the market, allowing us to further reinforce our competitive position. We are confident about the future.”
In millions of euros or expressed as
2020 2019 Growth
Revenue 189.9 191.5 -1%
Recurring revenue 50.7 44.6 +14%
Added value as % of revenue 66% 63%
Operating profit 17.1 17.5 -2%
Operating margin1 9.0% 9.1%
Profit for the financial year2 13.8 24.1 -43%
Earnings per share (x € 1) 2.13 3.74 -43%
Dividend per share (x € 1) 4.50 -
Net debt/EBITDA -0.4 -0.2
Solvency 62% 61%
ROIC3 28% 25%
Progress Changing Gears
We took key steps in the implementation of our strategic five-year plan Changing Gears in 2020 as well. Over the
past year, we were able to benefit from the robustness of the reorganised supply chain and deliver customer
orders on time in close collaboration with our production and logistics partners, despite the volatile
One of the main objectives of Changing Gears is to increase mutual collaboration of the support functions. We
therefore launched ‘excellence workstreams’ in 2019, which are Nedap-wide improvement programmes
focused on specific topics. Key progress has been made on standardising and streamlining financial processes in
the business units. One milestone was the introduction of a single financial system to which all business units
were migrated in 2020. Increased standardisation of the forecast and ordering processes enabled us to further
decrease inventories, despite fluctuating demand of individual products. By introducing ‘client journeys’,
supported by software, we gained increased insight into the steps in the commercial process, enabling more
effective use of marketing and sales capacity. This reinforced the business units’ commercial impact.
New strategic plan
Changing Gears ended in 2020. We worked on a new strategic plan during the year, which will see us maintain a
full focus on accelerating the organisation’s development by intensifying commercial activities, improving
collaboration and creating new opportunities for growth. The new strategic plan involves using the power of
inspiring stories that give direction. The Nedap Story, which sets out our strategic principles, is the foundation of
the business units’ strategic stories. A strategic story has been developed for each business unit, describing the
1 Defined as operating profit expressed as a percentage of revenue
2 Profit for the 2019 financial year includes book profit of € 9.9 million achieved on the sale of Nedap France
3 ROIC represents operating profit/loss excluding one-off items divided by the invested capital (fixed assets + net working capital - (associate &
non-consolidated company))market and the key trends over the coming years, as well as specifying what is needed to gain or retain a leading
position in the specific market. Each strategic story is translated into an ambition with strategic objectives and
the key plans and milestones for the next three years are detailed in a roadmap. Nedap will present the new
strategic plan during the Capital Markets Day on 17 March 2021.
Revenue in 2020 amounted to € 189.9 million, which was 1% lower than in 2019 (€ 191.5 million). Recurring
revenue rose by 14% to € 50.7 million (€ 44.6 million in 2019), comprising 27% of revenue (23% in 2019). The
business units Healthcare and Livestock Management posted sound growth in revenue, which almost entirely
compensated for the drop in revenue at the business units Identification Systems, Light Controls, Retail,
Security Management and Staffing Solutions. This drop was primarily the result of the COVID-19-related
Added value was up from € 121.1 million in 2019 to € 125.1 million in 2020. As a percentage of revenue, added
value increased to 66% (63% in 2019), partly thanks to the growing share of recurring revenue in the overall
revenue. Added value per FTE dropped from € 173,000 in 2019 to € 169,000 in 2020. This is caused by newly
hired employees during the year to enable further growth from a long-term perspective.
Personnel costs rose by 2% from € 72.7 million to € 74.4 million in 2020, mainly due to the increase in the
number of FTEs. This is in line with our long-term strategy of investing in the recruitment and development of
talented people. The number of FTEs went up from 724 at year-end 2019 to 766 at the end of 2020.
Other operating costs rose from € 22.4 million in 2019 to € 24.2 million 2020. This increase is related to further
development of our propositions and the fact that fewer development costs were capitalised than in 2019. We
have also seen an increase in administrative costs, partly because of further automation of our business support
processes. Marketing and sales costs were lower, due to limited opportunities to travel as a result of COVID-19
and because most trade fairs and physical events were cancelled.
Research and development costs of € 35.0 million (including € 0.2 million in capitalised development costs)
amounted to 18% of revenue (€ 30.0 million or 16% of revenue in 2019, including € 1.3 million in capitalised
development costs). Next to innovation, these costs mostly relate to maintaining current products and services
and keeping them up to date.
Amortisation and depreciation
Depreciation rose from € 7.6 million in 2019 to € 8.0 million 2020. Depreciation remained relatively low due to
the limited investments in tangible fixed assets in recent years. At € 1.1 million, amortisation was higher than in
2019 (€ 0.9 million), mainly as a result of development costs that were capitalised in previous years.
The operating profit (EBIT) in 2020 amounted to € 17.1 million compared to € 17.5 million in 2019. Despite the
increasing added value, this drop is the result of lower capitalised development costs combined with increasing
personnel costs due to an increase in the number of employees. The operating margin, i.e. the operating profit
as a percentage of revenue, amounted to 9.0% in 2020 (9.1% in 2019)
Net financing costs in 2020 remained at the same level as in 2019 (€ 0.2 million).
Share in profit of associate (after income tax)
Share in profit of associate concerns the share in Nedap France’s results. This participation was sold in 2019.
The profit of € 10.3 million posted in 2019 consisted mainly of a book profit upon sale of € 9.9 million.
Taxes paid over 2020 totalled € 3.1 million (€ 3.4 million in 2019), while the effective tax rate came in at 18.5%
for 2020 (19.7% in 2019).
Profit for the financial year
Nedap posted € 13.8 million in profit for the 2020 financial year, down on the € 24.1 million posted in 2019. The
2019 profit includes € 9.9 million in book profit on the sale of the participation in Nedap France. Excluding this
book profit, the 2019 profit amounted to € 14.2 million.
Earnings per share and dividend
Earnings per share dropped from € 3.74 in 2019 to € 2.13 in 2020. The average number of outstanding shares in
2020 was 6,465,033 (6,444,622 in 2019). This increase comes on the back of the sale of shares held by the
company itself to cover employee participation plans.
Given the COVID-19 crisis, Nedap’s Board of Directors took a prudent approach not to pay a dividend for the
2019 financial year, in order to reinforce the financial position in these uncertain and volatile times. During
2020, the relative small impact of the COVID-19 crisis on the financial results and the financial position of
Nedap allowed for the payment of an interim dividend of € 2.25 per share.
Furthermore, a final dividend of € 2.25 per share will be paid for 2020, putting the overall dividend for 2020 at
€ 4.50 per share. The final dividend comes on the back of results achieved in 2020, with a sufficient financial
buffer to allow us to stay on our strategic course despite the persisting uncertainty regarding economic
The balance sheet total dropped from € 120.5 million as at 31 December 2019 to € 119.1 million as at 31
December 2020. Inventories decreased further in 2020, thanks to continuous improvements in the
collaboration with supply chain partners.
Of the credit facilities available on 31 December 2020 and totalling € 39.0 million an amount of € 14.0 million
has been withdrawn. Following the withdrawal of the dividend proposal for 2019 and the further decrease of inventories, the net debt position as at 31 December 2020 amounted to a surplus of € 11.6 million, up from the
surplus of € 4.5 million at 31 December 2019. Given the current uncertain economic developments due to the COVID-19 crisis, financial buffers greater than the financial objectives formulated by Nedap are currently being maintained.
Net debt/EBITDA stood at -0.4 on 31 December 2020 (-0.2 in 2019).
Solvency stood at 62% on 31 December 2020 (61% in 2019).
2020 saw the net working capital decrease to € 19.5 million (€ 26.9 million in 2019). This decrease is primarily
the result of lower inventory levels. The operating cash flow was € 30.3 million in 2020, up on 2019 (€ 29.5
Return on invested capital
The return on invested capital (ROIC) rose from 25% in 2019 to 28% in 2020.
Business unit developments
The business unit Healthcare continued its robust revenue growth in 2020. Demand for innovative solutions and
the need for technology to support healthcare processes is continuing to grow. Thanks to its large number of
features, the Ons® software platform acts as a core system for administrative, logistics and Healthcare processes at many healthcare facilities. The business unit is the market leader in elderly care and is further
expanding its market share in disabled care. Furthermore, Healthcare has had an increasing share in the mental
healthcare market since 2018. Various leading mental healthcare facilities have opted for Nedap and will be
switching to our software over the next few years. The business unit is continuing to invest in the recruitment of
software developers above all, so as to expand its leading role in the healthcare sector. The annual customer
event, ‘Klantendag’, was held online in 2020. With over 600 virtual attendees, it was a major success and provided valuable insights that can be used to further improve the platform.
The business unit expects further growth in revenue over the coming year.
Revenue posted by the business unit Identification Systems (vehicle and driver identification products and
wireless parking systems) decreased in 2020, as COVID-19 measures caused delays in order placement and
installation of various projects. In 2020, work went into refining the three core propositions, vehicle
identification (readers), vehicle detection (SENSIT) and city access (MOOV), with the intention of further
focusing the market orientation. Concrete steps were taken for all propositions.
In light of the COVID-19 crisis and the project-based nature of the revenue, it is not possible to give a reliable estimate of the business unit’s revenue development in 2021.
The business unit Light Controls (power electronics and control systems for the lighting industry) posted lower
revenue in 2020. Demand for UV driver technology for disinfection in, for instance, schools, offices and hospitals
grew due to the pandemic, but since the implementation of ballast water treatment systems in ships has been
delayed due to the COVID-19 crisis, the overall demand for UV driver technology decreased.
The Luxon proposition showed growth in 2020 and the market adoption of connected lighting also grew further,
partly due to increasing awareness of the advantages this technology has for sustainability and cost cutting. The Luxon-based Lighting as a Service (LaaS) proposition gained in popularity again this year, with the number of
light points managed using Luxon doubling again during the year.
Given the COVID-19 crisis, it is also not possible to reliably estimate 2021 revenue development for the business unit Light Controls.
Revenue posted by the business unit Livestock Management in 2020 increased compared to 2019. The business
unit helps livestock farmers all over the world in optimising their operations. Its products are geared towards the
necessity for more efficient and sustainable production due to the growing demand for animal protein and
towards improving animal health and well-being. There is also a focus on the need for greater job satisfaction
and an acceptable workload for livestock farmers. Both the dairy farming and pig farming sectors of the business unit contributed to the revenue growth.
In the dairy farming sector, growth was not only driven by existing customers (suppliers of milking systems), but
also achieved in a new distribution channel aimed at genetics companies. ICAR certification was gained for
Nedap Smartflow in 2020, which was a key condition for the global marketing of this proposition. In Nedap
Smart Flow, the business unit has developed a milk flow meter, which is not only a breakthrough when it comes
to milking technology, it also offers great installation benefits because it is the first fully wireless milk flow meter.
Revenue growth in the pig farming sector was largely driven by revenue growth in China, where pig farmers
pulled out all the stops in 2020 to get pig numbers back up following the African swine fever that has been
raging since 2019. The resulting professionalisation led to increased demand for products from the business unit.
Good, long-term relationships with business partners once again contributed to the business unit’s success in2020, resulting in higher revenue. The business unit expects revenue to keep growing over the coming year.
After posting increased revenue in the first quarter, the business unit Retail saw its revenue drop over the rest of
the year, due to the COVID-19 crisis. The business unit develops and markets RFID solutions, which give largescale retailers insight into their inventories at item level, wherever in the world these inventories are. This
enables optimum inventory management and simplified shop processes, while also preventing loss of income.
In recent years, the business unit focused its product development on the growth of the omnichannel retail
market. The retail sector was one of the hardest hit by the COVID-19 pandemic, partly due to temporary shop
closures in many regions. Given these extraordinary market circumstances, revenue dropped. At the same time,
the online shopping market showed strong growth. This also created opportunities, which the business unit is
well positioned to take advantage of. More customers were welcomed to the Nedap RFID platform in both Europe and the USA in 2020.
The COVID-19 crisis is causing unpredictable situations for our customers, meaning it is not possible to give a reliable estimate of the business unit’s revenue development in 2021.
Revenue generated by the business unit Security Management (systems for access control and security) over
the entire year showed a decrease, but grew in the fourth quarter, compared to the same period in 2019. AEOS,
a scalable web-based security system, puts Security Management in a leading market position in Europe. The
business unit landed a number of leading customers in 2020, including Royal Philips Electronics, Saudi Aramco
and the Flemish government.
The spread of sectors that Security Management operates in slowed down the revenue decrease resulting from
the COVID-19 crisis. However, given the project-based nature of the revenue, it is not possible to give a reliable
estimate of the business unit’s revenue development in 2021.
The business unit Staffing Solutions (digitised timesheet processing, planning and employee scheduling) is with
its propositions well positioned in the Dutch staffing market and have felt the impact of COVID-19 since March.
The number of staffing agencies opting for Nedap is growing, but a reduction in the number of hours processed
caused the business unit’s revenue to drop. In recent years, the business unit has developed a new generation
of propositions that enable effective management of flexible pools of permanent employees and temps. There is
more demand for this type of product in the current volatile market circumstances.
Given the uncertainty the COVID-19 crisis is creating in the staffing market, it is not possible to give a reliable
estimate of the Staffing Solutions business unit’s revenue development in 2021.
The past year has shown that our strategic principles enable us to withstand extraordinary circumstances while
remaining able to invest in propositions and in the organisation. This meant that our competitive edge increased
further over the past year and that Nedap is well positioned to benefit from new opportunities for growth that
will arise in the various markets sooner or later. Given our latest market insights and strategic plans, we are confident about our organisation’s future. However, business developments in 2021 will be determined by the
COVID-19 pandemic to a large extent. The duration of the pandemic and the extent of its impact are difficult to
predict. Persistent global uncertainty presents several challenges. For the supply chain, this means that possible
disruptions in the supply of components over the coming year could have an impact on the reliability of
deliveries to our customers and on the cost of sales of our products. The uncertainty also applies to the markets
we operate in. It is therefore currently not possible to reliably estimate revenue development for the coming financial year.
Annual report publication and annual general meeting of shareholders
The 2020 annual report will be published on the organisation’s website on 23 February 2021 (after the close of
trading). The annual general meeting of shareholders (AGM) will take place at 11am on Thursday 8 April 2021.
Depending on the government measures in relation to COVID-19, this will be a virtual meeting, just like in 2020.
The company will post notifications regarding the AGM at https://
Key dates relating to dividend payment:
12 April 2021 - ex dividend date
13 April 2021 - record date
19 April 2021 - dividend payment