Financial review

Net profit of EUR 212 million, EUR 1.92 per share, an increase of 12%

  • Revenue +2% to EUR 2,522 million
  • Operating profit (EBITA) +10% to EUR 298 million;
    EBITA-margin 11.8%
  • Cash flow from operations +16% to EUR 383 million;
    Free cash flow +12% to EUR 273 million.

Revenue spread

Future potential in the businesses in certain regions and niche end markets

Per business
(in %)

Building installations 41%
Climate control 19%
Industrial controls 15%
Industrial Services 25%

Per region
(in %)

Western & northern europe 56%
North America 23%
Eastern Europe 9%
Southern europe 4%
Far East 3%
Middle east & africa 2%
Other 3%

Per end market
(in %)

Building installations 52%
Automotive 12%
General industries 11%
Industrial Installations 5%
Machine build 5%
Water & gas supply, irrigation 4%
power Generation, Aerospace 3%
Semicon & Science 3%
District Energy, Oil & Gas 3%
Beverage dispense 2%

Condensed Consolidated Income statement

in EUR million 2016 2015 DELTA
Revenue 2,522.1 2,475.3 2%
Operating profit (EBITDA) 391.8 367.3 7%
Depreciation (93.7) (95.3) (2%)
Operating profit (EBITA) 298.1 272.0 10%
Net interest expense (16.6) (17.8) (7%)
Other net finance cost (3.4) (2.6) -
Income tax expense (ETR FY16: 25.2%, FY15: 25.8%) (62.4) (58.6) 6%
Non-controlling interests (3.2) (2.5) -
NET PROFIT BEFORE AMORTISATION 212.4 190.4 12%
EPS before amortisation in EUR 1.92 1.72 12%

Revenue growth: +1.1% organic, +2.4% acquisitions/divestments, -1.6% FX/currency impact

FX impact EUR 39 mio negative on Revenue and EUR 4 mio negative on EBITA

Condensed Consolidated Balance Sheet

in EUR million 31.12.2016 31.12.2015
Total non-current assets 1,903 1,799
Total current assets 956 942
TOTAL ASSETS 2,859 2,741
Total equity 1,391 1,285
Total non-current liabilities 706 763
Total current liabilities 762 693
TOTAL EQUITY AND LIABILITIES 2,859 2,741
Net debt 713 718
Leverage ratio: Net debt / EBITDA (12-months-rolling) 1.7 1.8
Net working capital 480 461
Total equity as a % of total assets 48.7 46.9
Return on Capital Employed (ROCE) (in %) 14.7 14.3

Condensed Consolidated Cash Flow Statement

in EUR million 2016 2015* DELTA
Operating profit (EBITDA) 391.8 367.3 24.5
Result on sale of equipment / Changes in provisions (11.4) (16.1) 4.7
Changes in working capital 2.1 (21.1) 23.2
CASH FLOW FROM OPERATIONS 382.5 330.1 52.4
Net capital expenditure (109.2) (87.2) (22.0)
FREE CASH FLOW 273.3 242.9 30.4
Finance cost paid (20.4) (16.4) (4.0)
Income taxes paid (56.6) (69.9) 13.3
Acquisition/disposal of subsidiaries (111.5) (93.5) (18.0)
Proceeds from non-current borrowings 0.6 198.4 (197.8)
Repayment of non-current borrowings (64.4) (120.2) 55.8
Dividends paid (57.6) (50.9) (6.7)
Cash flow to non-controlling interests (2.7) (24.1) 21.4
NET INCREASE/(DECREASE) IN CASH AND CURRENT BORROWINGS (39.3) 66.3 (105.6)

*Adjusted for comparison purposes

Revenue & Capex

in EUR million 1H2016* FY2016 1H2015* FY2015* DELTA FY
Building Installations 543.8 1,073.1 541.5 1,068.1 -
Climate Control 250.8 501.8 240.4 500.0 -
Industrial Controls 191.8 380.8 183.6 367.3 4%
Industrial Services 323.9 635.1 314.6 610.7 4%
Holding / Eliminations (36.0) (68.7) (36.4) (70.8) -
TOTAL REVENUE 1,274.3 2,522.1 1,243.7 2,475.3 2%
in EUR million 1H2016* FY2016 1H2015* FY2015* DELTA FY
Building Installations 21.1 38.7 14.1 36.8 5%
Climate Control 4.2 8.4 3.2 7.6 11%
Industrial Controls 6.5 13.6 5.7 13.6 -
Industrial Services 25.1 44.9 17.7 37.8 19%
Holding / Eliminations 0.1 - 0.5 0.4 -
TOTAL CAPEX 57.0 105.6 41.2 96.2 10%

*Adjusted for comparison purposes

Operating Profit (EBITA) & EBITA MARGIN

in EUR million 1H2016* FY2016 1H2015* FY2015* DELTA FY
Building Installations 62.3 122.4 58.9 112.3 9%
Climate Control 25.5 54.0 21.5 51.3 5%
Industrial Controls 29.0 57.4 21.5 45.9 25%
Industrial Services 40.6 79.3 39.6 77.1 3%
Holding / Eliminations (7.0) (15.0) (6.8) (14.6) -
TOTAL EBITA 150.4 298.1 134.7 272.0 10%
in % of revenue 1H2016* FY2016 1H2015* FY2015* DELTA FY
Building Installations 11.5 11.4 10.9 10.5 0.9
Climate Control 10.2 10.8 8.9 10.3 0.5
Industrial Controls 15.1 15.1 11.7 12.5 2.6
Industrial Services 12.5 12.5 12.6 12.6 (0.1)
EBITA MARGIN 11.8 11.8 10.8 11.0 0.8

*Adjusted for comparison purposes

Five Year Development

Revenue & added-value margin

Operating profit & EBITA margin

Net profit & EPS

Capital expenditure & ROCE

Free cash flow and conversion ratio

Dividend per ordinary share

Five Year Development

Revenue (in EUR million)

+2%

ADDED-VALUE MARGIN (in %)

OPERATING PROFIT (EBITA) (in EUR million)

+10%

EBITA AS A % OF REVENUE (in %)

NET PROFIT (BEFORE AMORTISATION) (in EUR million)

+12%

EARNINGS PER SHARE (BEFORE AMORTISATION) (in EUR)

+12%

CAPITAL EXPENDITURE (in EUR million)

+10%

RETURN ON CAPITAL EMPLOYED (ROCE) (in %)

FREE CASH FLOW (BEFORE INTEREST AND TAX) (in EUR million)

+12%

FREE CASH FLOW CONVERSION RATIO (FCF/EBITDA) (in %)

DIVIDEND (in EUR)

+12%

Proposal to increase the cash dividend per ordinary share by 12% to EUR 0.58 (2015: EUR 0.52).

Operational review

We delivered sustainable, profitable growth and futher increased our free cash flow

Introduction

Many positive developments