<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

Management expects strong organic revenue growth and solid operational results for the full year 2018, although the short-term outlook might be softer than previously expected. Market conditions have been exceptionally favorable and are more challenging at the moment.

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.

  Target FY18 FY17 FY16

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 revenues 6.2% 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 revenues 17.95 13.70 10.59

Leverage

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

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

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 profit 30% 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, normalized 2018 2017 2016 ** 2015 * 2014 *
Revenues 1,197.9 1,038.2 983.0 818.6 712.6
Result from operations (EBIT) *** 175.2 157.4 143.5 99.9 48.8
EBIT as a % of sales 14.6% 15.2% 14.6% 12.2% 6.8%
Result before depreciation and amortization (EBITDA) 215.5 192.0 179.7 135.8 83.7
EBITDA as a % of sales 18.0% 18.5% 18.3% 16.6% 11.7%
Orders received (includes service revenue) 1,184.1 1,143.7 1,012.7 824.6 755.0
Leverage 2.0 1.9 2.3 1.1 2.1

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

Results

Results 2018 2017 2016 2015 * 2014 *
Revenues 1,197.9 1,038.2 969.7 818.6 712.6
Gross profit 467.5 406.7 397.0 312.2 247.7
Result before depreciation and amortization (EBITDA) 215.5 192.0 175.4 120.8 66.7
Result from operations (EBIT) 160.9 140.3 114.8 81.6 29.2
Net result for the period 122.5 96.9 75.8 56.7 11.7

Order book

Order book 2018 2017 2016 2015 * 2014 *
Orders received (includes service revenue) 1,184.1 1,143.7 1,006.1 824.6 755.0
Order book 476.0 472.1 349.5 180.9 174.9

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

Cash flow statement

Cash flow statement 2018 2017 2016 2015 * 2014 *
Cash generated from operating activities, before interest & tax 205.8 236.2 179.0 119.7 102.2
Net cash from (to) operating activities 166.8 195.6 137.1 93.7  85.6
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 position 2018 2017 2016 2015 * 2014 *
Total assets 1,565.9 1,440.6 1,392.4 938.2 851.4
Working capital   (71.9) (13.3) 94.1 25.7 
Group equity 560.9 541.9 525.6 446.7 427.5 
Net debt 431.6 365.1 403.6 142.8 174.3 

Various figures in proportion to sales

Various figures in proportion to sales 2018 2017 2016 2015 * 2014 *
Gross profit 39.0% 39.2% 40.9% 38.1% 34.8%
Selling and marketing expenses   11.6% 13.3% 13.6% 14.5%
Research and development expenses   5.6% 6.5% 7.0% 7.8%
Administrative expenses   6.8% 6.8% 7.3% 8.4% 
Wages and benefits   35.0% 35.0% 33.6% 37.6% 
Result before depreciation (EBITDA) 18.0% 18.5% 18.1% 14.8% 9.4% 
Depreciation/amortization 4.6% 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 period 10.2% 9.3% 7.8% 6.9% 1.6% 

Other key ratios

Other key ratios 2018 2017 2016 2015 * 2014 *
Current ratio 0.9 0.8 1.0 1.4 1.1
Quick ratio 0.6 0.6 0.6 1.0 0.7 
Equity ratio   37.6% 37.7% 47.6% 50.2% 
Return on owners’ equity 22.2% 18.2% 15.6% 13.0% 2.8% 
Return on total assets   6.8% 5.4% 6.0% 1.4%