Outlook

Marel is targeting 12% average annual revenue growth from 2017-2026 through market penetration and innovation, complemented by strategic partnerships and acquisitions. Marel enjoys a balanced exposure to global economies and local markets through its global reach, innovative product portfolio and diversified business mix.

Marel is committed to its financial targets

Marel is targeting 12% average annual revenue growth from 2017-2026 through market penetration and innovation, complemented by strategic partnerships and acquisitions.

Our strategic mid-term targets are to achieve gross profit around 40%, SG&A of around 18% and Innovation at the 6% strategic level by year-end 2023.

Market conditions have been challenging due to geopolitical uncertainty and the current COVID-19 pandemic. Marel enjoys a balanced exposure to global economies and local markets through its global reach, innovative product portfolio and diversified business mix. At the moment it is not known what the full economic impact of COVID-19 will have on Marel. Marel is committed to achieve its mid- and long term growth targets.

Financial targets

Marel’s management expects 4-6% average annual market growth in the long term.
Marel aims to grow organically faster than the market, driven by innovation and growing market penetration.
Maintaining solid operational performance and strong cash flow is expected to support 5-7% revenues growth on average by acquisition.
Marel’s management expects basic EPS to grow faster than revenues.

Growth is not expected to be linear but based on opportunities and economic fluctuations. Operational results may vary from quarter to quarter due to general economic developments, fluctuations in orders received and timing of deliveries of larger systems.

In the period 2017-2026, Marel is targeting 12% average annual revenue growth through market penetration and innovation, complemented by strategic partnerships and acquisitions.

Financial targets

Marel is targeting 12% average annual revenue growth from 2017-2026 through market penetration and innovation, complemented by strategic partnerships and acquisitions.

Revenue growth
Innovation investment
Earnings per share
Leverage
Dividend policy

Target	Description	FY19	FY18	FY17	FY16
12% average annual revenue growth in 2017-2026*	Up to 2026, management forecasts 4-6% average annual market growth. Marel aims to grow organically faster than the market, driven by innovation and growing market penetration. Solid operational performance and strong cash flow is expected to support 5-7% revenue growth on average by acquisitions.	7.2%	15.4%	5.6%	20.1%

* Growth is not expected to be linear but based on opportunities and economic fluctuations. Operational results may vary from quarter to quarter due to general economic developments, fluctuations in orders received and timing of deliveries of larger systems.

Target	Description	FY19	FY18	FY17	FY16
~6% of revenues	To support new product development and ensure continued competitiveness of existing product offering.	6.4%	6.2%	5.6%	6.5%

Target	Description	FY19	FY18	FY17	FY16
EPS to grow faster than revenues	Marel’s management expects Earnings per share to grow faster than revenues	15.3 eurocents	17.95 eurocents	13.70 eurocents	10.59 eurocents

Target	Description	FY19	FY18	FY17	FY16
Net debt/ EBITDA x2-3	The leverage ratio is estimated to be in line with the targeted capital structure of the company.	x0.4	x2.0	x1.9	x2.3

Target	Description	FY19	FY18	FY17	FY16
20-40% of net profit	Dividend or share buyback targeted at 20-40% of net profits. Excess capital used to stimulate growth and value creation, as well as payment of dividends / funding share buybacks.	40%	30%	30%	20%

Disclaimer

This list is provided for informational purposes only and is subject to change. Any opinions, estimates or forecasts regarding Marel’s performance and/or outlook made by these analysts and their respective brokerage firms are not opinions, forecasts or predictions of Marel or its management. By providing the list, Marel does not imply its endorsement of or concurrence with such information, conclusions or recommendations. Marel will not distribute analyst reports. Copies of reports should be obtained directly from the analysts or their brokerage firms.