· Outlook for 2012 confirmed: a further rise of EBITA, excluding reorganisation costs
· Order book up by 700 million euro through organic growth and acquisitions
· Confidence in 2013
Gouda, the Netherlands - Despite difficult market conditions in a number of countries and markets, at the end of 2012 the order book of Royal Imtech N.V. (technical services provider in and outside Europe) was up by 700 million euro, or 12%, to 6.5 billion euro (2012: 5.8 billion euro). This was announced by CEO René van der Bruggen in his New Year's speech to employees.
René van der Bruggen: 'In 2010 and 2011 Imtech reported order book increases of 10% (450 million euro) and 12% (600 million euro) respectively. This positive trend has continued in 2012. At the end of 2012 Imtech's order book stood at 6.5 billion euro - again an increase of 12%, or 700 million euro. This increase, which is the result of both organic growth and growth through acquisitions, has been achieved despite market conditions being difficult in a number of countries and markets. These conditions have led to a less balanced composition of the order book compared with the preceding years. Order book has been under considerable pressure in the Benelux and Spain. By contrast, order book development has been good in the clusters/divisions Germany & Eastern Europe, the UK & Ireland, Nordic, Turkey, Traffic & Infra and Marine. The order book has remained stable in the ICT division.'
One-time provision for redundancy of around 900 employees
At the end of October 2012 Imtech announced it was establishing a one-time provision of around 50 million euro in total for the redundancy of about 900 employees. Most of the affected employees were involved in new-build activities in the buildings markets in the Benelux and Spain. A small redundancy of employees in the Marine division, which in 2012 suffered from the effects of a lower order-intake in the preceding years, was also planned. This reorganisation is a prelude for further growth in 2013.
Achieving more added-value
In line with its 2015 growth strategy Imtech is more and more able to offer its customers added-value - a valuable driver for the growing order book. The added-value translates into a life-cycle approach aimed at reducing customers' total cost of ownership (the cost of technical solutions throughout the entire exploitation period). Imtech has embraced, and reinforced, this philosophy for a number of years. It is expressed in many ways, including a focus on intensive multidisciplinary co-operation with customers and throughout the chain, the achievement of preferred technology partner positions and the integration of energy technology and ICT into Imtech's total solutions. This makes substantial energy efficiency improvements possible, for example in buildings, industrial manufacturing facilities and ships.
Increasing activities outside Europe
Activities outside Europe have continued growing. Industrial export from the Netherlands, Germany and the UK & Ireland has increased, growth has been achieved in Turkey and various emerging markets, and Imtech is more and more frequently active on a project basis in Russia. In the traffic market, the ICT market, and especially in the marine market Imtech shows further growth outside Europe.
Good acquisitions are the accelerator for future growth
The technical services market is highly fragmented and includes a great many medium-sized and smaller technical companies that are performing well. This makes an active acquisition policy possible. In 2012 Imtech acquired a number of companies both within and outside Europe. The total annual revenue of the acquired companies amounts to around 280 million euro. Imtech focuses on acquisition candidates that are good performers and that will not only achieve growth themselves but will also bring about further organic growth of the existing portfolio. In the UK Imtech has acquired Capula, a specialist in instrumentation, control and automation in the energy, water and industry markets. This acquisition is a good example of the added-value strategy as it offers numerous cross-selling possibilities from within the existing UK activities. With the acquisition of 80% of the shares in the Turkish AE Arma-Elektropanç Imtech has penetrated new, opportunity-rich, markets not only in Turkey but also in the emerging markets of the Middle East, Russia and the former Soviet republics. In these markets co-operation within the existing Imtech portfolio will lead to future growth options. The acquisition of the multidisciplinary technical player EMC Talotekniikka (active in the buildings and industry markets), SSR (traffic technology) and Polar (process automation) has substantially strengthened the position in Finland. Various smaller acquisitions have been completed in Sweden, Norway and in the Netherlands.
Confirmation outlook 2012, maintaining long-term growth target 2015
Excluding the one-time provision the forecast of a further increase of the EBITA in 2012 through organic growth and acquisitions has been confirmed. The overall EBITA for 2012 is lower than for 2011. Imtech remains ample profitable and maintains its long-term strategic growth plan aimed at achieving revenue of 8 billion euro with an operational EBITA margin of between 6% and 7% in 2015. Imtech looks forward to 2013 with confidence.
