<p>Financials</p>

<p>The performance and success of any company can be assessed via its finances. Take a look at key reports and presentations, get the latest information on past and future webcasts, and see up-to-date financial targets.</p>

Outlook

Marel enjoys a balanced exposure to global economies and local markets. Market conditions have been exceptionally favorable but are currently more challenging in light of geopolitical uncertainty and the general slowdown in global economic growth.

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

  • 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 market penetration.
  • Maintaining solid operational performance and strong cash flow supports average 5-7% revenues growth annually by acquisition.
  • Marel’s management expects basic earnings per share (EPS) to grow faster than revenues.

Growth will not 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.

Financial targets

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

TargetFY18FY17FY16

Revenue growth

In the long term, management expects 4-6% average annual market growth. Marel aims to grow organically faster than the market, driven by innovation and market penetration. Solid operational performance and strong cash flow is expected to support 5-7% revenue growth on average by acquisition. Please refer to the latest quarterly results announcement for outlook in the short to medium term.

12% average annual revenue growth in 2017-2026*15.4%5.6%20.1%

Innovation investment

To support new product development and ensure continued competitiveness of existing product offering.

~6% of revenues6.2%5.6%6.5%

Earnings per share (euro cent)

Marel’s management expects Earnings per share to grow faster than revenues

EPS to grow faster than revenues17.9513.7010.59

Leverage

The leverage ratio is estimated to be in line with the targeted capital structure of the company.

Net debt/ EBITDA x2-3x2.0x1.9x2.3

Dividend policy

Dividend or share buy-back targeted at 20-40% of net profits. Excess capital used to stimulate growth and value creation, as well as paying dividends.

20-40% of net profit30%30%20%

* 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.

Key figures

Amounts in EUR thousands

Key figures from Marel’s core operations, normalized

Key figures from Marel’s core operations, normalized201820172016 **2015 *2014 *
Revenues1,197.91,038.2983.0818.6712.6
Result from operations (EBIT) ***175.2157.4143.599.948.8
EBIT as a % of sales14.6%15.2%14.6%12.2%6.8%
Result before depreciation and amortization (EBITDA)215.5192.0179.7135.883.7
EBITDA as a % of sales18.0%18.5%18.3%16.6%11.7%
Orders received (includes service revenue)1,184.11,143.71,012.7824.6755.0
Leverage2.01.92.31.12.1

** 2016 pro forma figures
*** 2016-2018 adjusted for amortization of acquisition-related intangible assets

Results

Results2018201720162015 *2014 *
Revenues1,197.91,038.2969.7818.6712.6
Gross profit467.5406.7397.0312.2247.7
Result before depreciation and amortization (EBITDA)215.5192.0175.4120.866.7
Result from operations (EBIT)160.9140.3114.881.629.2
Net result for the period122.596.975.856.711.7

Order book

Order book2018201720162015 *2014 *
Orders received (includes service revenue)1,184.11,143.71,006.1824.6755.0
Order book476.0472.1349.5180.9174.9

* 2015 adjusted for refocusing costs and acquisition related costs; 2014 adjusted for refocusing costs

Cash flow statement

Cash flow statement2018201720162015 *2014 *
Cash generated from operating activities, before interest & tax205.8236.2179.0119.7102.2
Net cash from (to) operating activities166.8195.6137.193.785.6
Investing activities(84.5)(77.7)(408.1)(17.9)(28.4)
Net cash from (used in) financing activities(60.2)(122.2)220.4(10.7)(55.6)

Financial position

Financial position2018201720162015 *2014 *
Total assets1,565.91,440.61,392.4938.2851.4
Working capital(43.7)(71.9)(13.3)94.125.7
Group equity560.9541.9525.6446.7427.5
Net debt431.6365.1403.6142.8174.3

Various figures in proportion to sales

Various figures in proportion to sales2018201720162015 *2014 *
Gross profit39.0%39.2%40.9%38.1%34.8%
Selling and marketing expenses11.2%11.6%13.3%13.6%14.5%
Research and development expenses6.2%5.6%6.5%7.0%7.8%
Administrative expenses7.0%6.8%6.8%7.3%8.4%
Wages and benefits34.3%35.0%35.0%33.6%37.6%
Result before depreciation (EBITDA)18.0%18.5%18.1%14.8%9.4%
Depreciation/amortization4.6%5.0%5.7%4.8%5.3%
Result from operations (EBIT)13.4%13.5%11.8%10.0%4.1%
Net result for the period10.2%9.3%7.8%6.9%1.6%

Other key ratios

Other key ratios2018201720162015 *2014 *
Current ratio0.90.81.01.41.1
Quick ratio0.60.60.61.00.7
Equity ratio35.8%37.6%37.7%47.6%50.2%
Return on owners’ equity22.2%18.2%15.6%13.0%2.8%
Return on total assets8.1%6.8%5.4%6.0%1.4%