Ackermans & Van Haaren : A story of entrpreneurship and compounding
1. 1
ACKERMANS & VAN HAAREN:
A STORY OF ENTREPRENEURSHIP
AND COMPOUNDING
LUC BERTRAND
FORUM FINANCIER - LIÈGE
MARCH 13, 2018
2. 2
AVH: A STORY OF ENTREPRENEURSHIP … BY THE
FOUNDING FATHERS AND FAMILIES
Nicolaas van Haaren
(1835-1904)
Hendrik Willem Ackermans
(1855-1945)
3. 3
ACKERMANS & VAN HAAREN: INTRODUCTION
First cooperation between
Nicolaas van Haaren &
Hendrik Willem Ackermans
Incorporation of
Ackermans &
van Haaren NV
Still controlled
and inspired by
founding families &
by family values
1876 1924 1984 2007
IPO Inclusion in
Bel20 index
Company values
› Discretion
› Independence
› Common sense
Family controlled public company
Corporate governance
› Board of Directors (10 members): majority of family representatives
› Management (7 members): meritocracy
4. 4
ACKERMANS & VAN HAAREN: INTRODUCTION
Company strategy
› Long term vision: investing through the economic cycle
› Diversification in a limited number of participations with growth potential
› Sound financial policy: positive net cash position at holding level
› Opportunistic approach
Acting as an ‘active owner’ within the participations
› Selection of top-management
› Definition of long-term strategy
› Strategic focus
› Strict operational and financial discipline
› Active board representation
› Value creation fully aligned with management
Not a holding company
› No shared financing structure / cross guarantees
› No holding company inefficiencies
5. 5
AvH: A STORY OF COMPOUNDING
(through investments and divestments)
6. 6
AVH: A STORY OF ENTREPRENEURSHIP: NEW WAVE TO
DIVERSIFICATION SINCE IPO (1984)
FORASOL
FORAMER
7. 7
THE COMPANY VALUES ARE, AND HAVE ALWAYS BEEN,
THE STRONG FUNDAMENTALS OF THE GROUP
Team work
Entrepreneurship
Integrity
Partnership culture Long term vision
Sustainability
Independence
8. 8
OUR CURRENT INVESTMENT STRATEGY IS STILL BASED ON
SAME FUNDAMENTALS
Partnerships
Entrepreneurship
Innovation and diversification
Globalization
9. 9
BASELINE REFLECTS OUR STRENGTHS AND VALUES
Partners
› AvH started as a partnership
› Successful track record of partnerships in most participations
› Partnerships with families, co-shareholders, management teams are basis for future growth
› Active ownership model
Sustainable
› Sustainable growth, with respect for people and environment
› Transparent reporting and communication
› Focus on recurrent results and steadily growing dividend on long term
Growth
› A group of entrepreneurs who want to develop companies via international expansion and
innovation
› Focus on operational excellence and the capacity for recurrent profitable growth in the long
term
Partners for sustainable growth
(November 2016)
10. 10
MULTIDISCIPLINARY AND EXPERIENCED TEAM
› Jan Suykens 1960 1990 (Generale Bank)
› Tom Bamelis 1966 1999 (Touche Ross, GBL)
› John-Eric Bertrand 1977 2008 (Deloitte, Roland Berger)
› Piet Bevernage 1968 1995 (Allen & Overy - LCV)
› André-Xavier Cooreman 1964 1997 (Shell, Generale Bank, McKinsey, Bank Degroof)
› Piet Dejonghe 1966 1995 (Allen & Overy - LCV, Boston Consulting Group)
› Koen Janssen 1970 2001 (Recticel, ING)
› Marc De Pauw 1953 1994 (NIM)
› Hilde Delabie 1968 1998 (Deloitte)
› Bart Bressinck 1978 2001 (PwC)
› Katia Waegemans 1969 2008 (McKinsey, Agfa-Gevaert)
› Jens Van Nieuwenborgh 1982 2014 (McKinsey)
› An Herremans 1982 2014 (Roland Berger, Barco)
› Bart De Leeuw 1973 2016 (Generale Bank, EY)
› Philip Heylen 1968 2016 (Antwerp City Council)
› Nele Govaert 1983 2017 (White & Case LLP, Allen & Overy LLP)
› Gilles Huyghebaert 1986 2017 (KPMG, NX Partners)
Born With AvH
12. 12
DOES THE AVH MODEL WORK?: A STORY OF
COMPOUNDING
(31/12/2017)
A diversified
group active in
4 segments
Net result
€ 303
mio
Equity
(group)
€ 2,972
mio
Market
Cap
€ 4,862
mioPersonnel
22,749
Net Cash
€
80mio
Turnover
€ 5,363
mio
13. 13
DRIVEN BY THE ENTREPRENEURSHIP, AVH EVOLVED
TOWARDS A STRUCTURE WITH 4 CORE SEGMENTS
Marine
Engineering &
Contracting
Real Estate &
Senior Care
Private
Banking
Energy &
Resources
17. 17
AVH STARTED AS A PARTNERSHIP IN DREDGING
Dredging
International
Creation of
DEME
1991
AvH 100%
1876
AvH 39.5%
2000
AvH 48.5%
2004
AvH 50%
2013
AvH 60.4%
Marine Engineering
Incorporation of
Ackermans & van
Haaren NV
1924
First transatlantic
project (Argentina)
1903
Incorporation
(Antwerp)
18951888
First project in
Belgium (Namur)
1974
AvH 45%
18. 18
MARINE ENGINEERING & CONTRACTING
DEME One of the largest and most diversified dredging and
marine engineering companies in the world
CFE Contracting and Real Estate Development in Belgium,
Luxembourg and Poland
RENT-A-PORT Port related land development and services
GREEN OFFSHORE
Partner in Belgian offshore wind - developments
Rentel under construction (12.5%, 309 MW), Seastar and
Mermaid
60.4%
60.4%
72.2%
80.2%
19. 19
DEME: HIGHLIGHTS 2017
Turnover increase driven by strong growth of GeoSea
› Economic turnover(1) of € 2,365.7 mio (2016: € 1,978.2 mio)
› More than € 1 billion turnover realized by GeoSea: a.o. offshore wind farms Horns Rev (Denmark),
Merkur and Hohe See (Germany), Galloper (UK) and Rentel (Belgium).
Strong order backlog
› Order backlog of € 3,520 mio.
› Largest projects acquired in 2017: New Terneuzen Lock (civil marine works, € 300 mio), Modular
Offshore Grid Elia (marine works, € 130 mio) and Rijnlandroute (€ 123 mio).
› Projects not yet included in order backlog (total value: € 1,744 mio): Fehmarnbelt Fixed Link,
‘Blankenburgverbinding’, Moray East and Triton Knoll offshore wind farms (see further for details).
Acquisitions by GeoSea
› A2SEA: Investment of € 167 mio (net of cash)
- An important player active in installation of offshore wind turbines (160 employees; 2 high-tech
installation vessels Sea Installer, Sea Challenger; order backlog € 141 mio).
› G-tec: Acquisition of 72.5%
- Belgian firm specialised in offshore geotechnical and geological marine investigation as well as in
deep sea engineering services.
Investment program in anticipation of strong activity 2018-2020
› Total capex of € 614.2 (incl. € 166.8 mio on acquisition A2SEA).
(1) Economic, i.e. including proportionate share of entities undercommon control
20. 20
DEC – Ecoterres – Bluegate Antwerp
Remediation of contaminated land
DBM
Marine sand and gravel as building material
GSR – Patania
Robot (protoype) for deep sea harvesting
of minerals
GeoSea – Thor
Construction of OWF: marine works, foundations
and installation
Tideway – Flintstone – Rentel
Fallpipe and cablelaying works
C-Power
Development of OWF concessions/projects
INNOVATION AND DIVERSIFICATION ARE THE KEY SUCCESS
FACTORS UNDERLYING THE GROWTH OF DEME
21. 21
DEME: ORDER BACKLOG
Order backlog 2017 of € 3,520 mio (vs € 3,800 mio end of 2016), well diversified
across different regions and activities
0
1.000
2.000
3.000
4.000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Benelux Europe Asia Pacific Middle East + India Other
10%
6%
14%
40%
30%
2017
3,520
(€ mio)
22. 22
DEME: ORDER BACKLOG
NEW IN 2017
› New Terneuzen Lock (Netherlands): joint venture, (approx. € 300 mio turnover for DEME).
› Elia Modular Offshore Grid: submarine power cable installation in North Sea (€ 130 mio).
› Rijnlandroute (Netherlands): road infrastructure incl. bored tunnel (DEME € 123 mio).
› Old Port Doha (Qatar): joint venture (total contract € 100 mio).
› India and Maldives: dredging and land reclamation. Total value of € 100 mio.
› Offshore windfarms in Germany: Hohe See (71 turbines - 497 MW), Albatros
› Ayer Merbau reclamation (Singapore) (€ 70 mio)
› Projects in Europe and Africa (total of € 240 mio): Maintenance dredging on the river Elbe in
Germany, a gas terminal in Angola, the Freeport of Liberia and the port of Abidjan in Ivory Coast;
Works at several ports in France and in Ghana; Coastal protection works in the UK and in Benin;
Dredging works in the port of Barcelona; Maiyegun Waterfront in Lagos.
NOT YET INCLUDED (€ 1,744 MIO)
Projects awarded or preferred bidder, but not yet included in order backlog as of 31.12.2017
› Fehmarnbelt Fixed Link: longest immersed road and rail tunnel (18 km) connecting Denmark with
Germany. Contract value of approx. € 700 mio.
› Blankenburgverbinding (NL): design, construction, management and maintenance for 20 years of the
Blankenburgverbinding, the A24 link between the A20 and A15 motorways.
› Offshore wind farms Moray East (EPCI - 100 turbines, 3 platforms), Triton Knoll (transport and
installation - 90 turbines, 860 MW)
23. 23
DEME: INVESTMENT PROGRAM
6 vessels under construction
Gulliver (1H18)
Self-propelled crane ship (4,000 T)
Living Stone (1H18)
Multipurpose fall-pipe vessel
Spartacus (2019)
Cutter suction dredger
Apollo (1H18)
Self-propelled jack-up vessel (800 T)
Bonny River (2019)
Trailing suction hopper dredger (15,000 m³)
Orion (2019)
Offshore crane vessel
24. 24
‘DUAL FUEL’ HOPPER DREDGERS
Scheldt River
Hopper dredger (8,400 m³)
Operational since 2017
Minerva
Hopper dredger (3,000 m³)
Operational since 2017
Advantage of dual fuel
- Can also operate in LNG mode.
- Reduction of carbon dioxide emissions, almost eliminating sulphur, NOx and particle emissions.
- LNG is intrinsically clean so no need for exhaust gas cleaning systems.
25. 25
GEOSEA FLEET
57 m 80 – 92 m 89 m 84 – 107 m55 m 79 m 82 m
Jacking system:
leg length
Delivery: 2018
(under construction)
Delivery: 2019
(under construction)
27. 27
DEME: LONG TERM TRACK RECORD OF SHAREHOLDING
AND ENTREPRENEURIAL GROWTH
AvH 45% AvH 39.5% AvH 48.5% AvH 50% AvH 60.4%
Consolidation Partnership Control
Equity
Turnover
0
500.000
1.000.000
1.500.000
2.000.000
2.500.000
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
1974
Scaldis
Tideway
DBM
(Building
Materials)
Power@Sea
DEC
GeoSea
CTOW
DEME Blue
Energy
HGO
acquisition
(Innovation)
Creation
Dredging
International
(AvH +
CFE dredging)
Creation DEME
Holding
(Acquisition
Decloedt)
in € 000
A2SEA
acquisition
28. 28
CFE: KEY FIGURES
Excl. DEME
(in € mio) 2016 2015
Turnover 710.5 818.9 953.3
Net result (1) 23.9 13.0 -22.8
Shareholder’s equity
(total, incl. DEME) 1,641.9 1,521.6 1,423.3
Net financial position
(excl. DEME/RAP, incl. Van Laere in 2017)
-64.2 -58.1 -47.7
# personnel 3,485 3,204 3,657
2017
(in € mio) 2016 2016 2016
Turnover Order book Net result
Construction 499.8 548.5 978.8 648.7
Multitechnics 155.3 159.2 152.6 143.4
Rail Infra 62.5 62.8 98.3 58.4
Contracting 717.6 770.5 1,229.7 850.5 15.4 10.4
Real estate
development
10.9 12.1 133(2) 130(2) 22.3 1.4
Holding, non-
transferred activities
and eliminations
-18.1 36.3 -13.7 1.2
Total 710.5 818.9 23.9 13.0
2017 2017
(1) Including contribution from Rent-A-Port and Green Offshore: 2017: € -2.9 mio, 2016: € 4.2 mio, 2015: € 2.9 mio
(2) Real estate projects is the sum of the equity and net financial debt of the real estate division
2017
30. 30
THE PRIVATE BANKING ACTIVITIES ARE THE RESULT OF
THE CLOSE RELATIONSHIP WITH THE DELEN GROUP
De Ferm
1996
Havaux
2000
Capfi
2007
Oyens &
Van Eeghen
2015
JM Finn
& Co
ABK
2011
Delen
1992
AvH 50%
Bank
J.Van Breda
& Co
Finaxis
1998
AvH 60% AvH 75%
2004 2008
AvH 78.75%
Private Banking
31. 31
FINAXIS ORGANIZATION CHART
Delen Private Bank
AvH Promofi
Bank J.Van Breda & Co
Delen
Private
Bank Lux.
Oyens &
Van
Eeghen
JM Finn
Finaxis
78.75% 21.25%
99.99% 100%
100% 97% 100%
ABK bank
Van Breda
Car
Finance
Capfi Delen
Asset
Management
Delen Investments
100%
81%
32. 32
ASSETS UNDER MANAGEMENT
(in € mio) 2016 2015
Delen Private Bank 40,545 37,770 36,885
Delen Private Bank 29,410 27,383 25,555
JM Finn(1) 10,475 9,730 10,758
Oyens & Van Eeghen 660 657 572
Bank J.Van Breda & Co
Bancassurance products 1,876 1,872 1,669
AuM at Delen (2) 5,474 4,737 4,236
Client deposits 4,566 4,246 3,969
Finaxis 47,796 44,619 43,039
2017
(1) AuM JM Finn & Co in £: £ 9,294 mio (2017), £ 8,331 mio (2016), £ 7,929 mio (2015), £ 7,834 mio (2014)
(2) Already included in Delen Private Bank AuM
33. 33
DELEN PRIVATE BANK (AvH 78.75%)
Private banking and wealth management. Focused on discretionary asset
management for private clients, in Belgium, UK and Netherlands
Delen Private Bank: Brussels, Antwerp andLiège offices
34. 34
DELEN PRIVATE BANK: KEY FIGURES(3)
(in € mio) 2016 2015
Gross revenues 366.9 313.1 314.1
Net result 105.8(1) 87.9 92.4
Equity 678.8 621.2 582.6
Assets under management 40,545 37,770 36,885
Cost - income ratio 53.7%(2) 57.8% 54.9%
ROE (IFRS) 16.3% 14.6% 16.8%
Core Tier1 capital ratio 29.3% 30.9% 26.0%
Basel III leverage ratio 17.6% 21.2% 14.9%
LCR (Liquidity coverage ratio) 700% 1,058% 1,024%
NSFR (Net stable funding ratio) 345% 295% 284%
# personnel 676 657 641
2017
(1) Contribution of JM Finn to net result of € 7.1 mio, Oyens & Van Eeghen € -2.0 mio
(2) Delen Private Bank 42.5%, JM Finn & Co 83.7%, Oyens & Van Eeghen 135.7%
(3) Detailed income statement and balance sheet on pages 93 and 94
35. 35
DELEN PRIVATE BANK: HIGHLIGHTS 2017
Record level of assets under management (€ 40,545 mio)
› Record level of over € 40 billion.
› Increase driven by strongest gross inflow ever of assets entrusted by the clients and by positive
market effect on these assets.
› Delen Private Bank (€ 29,410 mio): inflow well spread over all offices. Increase of discretionary
mandates to 80% of AuM (i.e. >90% of client accounts).
› JM Finn & Co (€ 10,475 mio): positive net inflow. Negative impact from evolution of £/€
exchange rate. Increase of discretionary mandates to 74%.
› Oyens & Van Eeghen (€ 660 mio)
› Opening of new regional offices in Leuven, Namur, Knokke and region Kempen.
Increase of revenues and net result
› Increase of gross revenues mainly driven by increase in AuM.
› Decrease of cost - income ratio to 53.7%.
› Increase of net result to € 105.8 mio (JM Finn & Co: € 7.1 mio, Oyens & Van Eeghen € -2.0 mio)
› Solid core tier1 capital ratio of 29.3%
36. 36
DELEN PRIVATE BANK: ANNUALIZED NET RETURNS
31/12/2017 1 year
3 years
Annualized
5 years
Annualized
10 years
Annualized
15 years
Annualized
Universal Invest Low C Acc 2.00% 2.79% 3.22% 2.85% 4.14%
Peer Group Low 2.14% 1.62% 2.81% 2.18% 3.06%
Universal Invest Medium C Acc 4.71% 4.75% 5.36% 4.04%
Peer Group Medium 5.16% 3.59% 4.95% 2.66%
Universal Invest High C Acc 8.76% 7.08% 7.90% 4.35% 7.23%
Peer Group High 7.36% 5.13% 6.99% 2.46% 4.92%
Universal Invest Global Flexible C Acc 5.10% 5.01% 6.61% 4.57% 6.90%
Peer Group Flexible 5.11% 2.69% 3.88% 1.69% 4.66%
Source: Morningstar
37. 37
BANK J.VAN BREDA & CO (AvH 78.75%)
Relationship bank focused on private as well as professional needs for entrepreneurs
and liberal professions
Bank J.Van Breda & Co: Antwerp and Hasselt offices
38. 38
BANK J.VAN BREDA & CO: KEY FIGURES(1)
(in € mio) 2016 2015
Bank product 141.4 134.0 133.9
Net result 39.1 37.7 40.5
Equity 538.7 518.3 501.6
Total assets 5,425 4,992 4,717
Total client assets (2) 13,743 12,449 11,134
Cost - income ratio 59.1% 59.4% 55.6%
ROE 7.4% 7.4% 8.3%
CAD (solvency ratio) 14.9% 18.8% 15.9%
Core Tier 1 capital ratio 14.2% 14.8% 14.5%
Net loan write-offs/ avg loan
portfolio
0.04% 0.01% 0.01%
Basel III leverage ratio 8.9% 9.8% 9.5%
LCR (Liquidity coverage ratio) 143% 150% 197%
NSFR (Net stable funding ratio) 121% 123% 128%
# personnel 471 471 465
2017
(1) Detailed income statement and balance sheet on pages 95 and 96
(2) Deposits and entrusted funds
39. 39
PRIVATE BANKING: FOCUS ON PEOPLE AND
OPERATIONAL PERFORMANCE
0
200
400
600
800
1.000
1.200
1.400
0
5.000
10.000
15.000
20.000
25.000
30.000
35.000
40.000
45.000
50.000
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Total AuM (left axis)
Conso equity Finaxis (right axis)
CAGR (1998-2017)
AuM: 12.9%
Equity: 10.1%
Delen De Ferm
Bank
J.Van Breda
& Co
Finaxis
Havaux Capfi JM Finn
& Co
ABK
Oyens &
Van Eeghen
AvH
shareholding
AvH
50%
AvH
60%
AvH
75%
AvH
78.75%
in € mio
41. 41
0
10.000
20.000
30.000
40.000
Delen Private Bank JM Finn & Co Oyens & Van Eeghen
DELEN INVESTMENTS: TRACK RECORD OF INTERNAL AND
EXTERNAL GROWTH
JM
Finn & Co
Oyens &
Van Eeghen
660
10,475
29,410
40,545
546
4,693
15,272
Evolution of Assets under Management
Capfi
Havaux
De Ferm
AuM Delen Investments
CAGR 1992-2016: 19.3%
45. 45
THE REAL ESTATE SEGMENT EVOLVED FROM REAL ESTATE
LEASING OVER REAL ESTATE DEVELOPMENT TO SENIOR CARE
2009
Les Saules – Vorst
Senior care
(Belgium)
1994
Equipment & real
estate leasing
The Crescent - Anderlecht
1998
Real estate
development
Cloche d’Or - Luxembourg
2015
Senior care
(France)
Résidence Valois
Real Estate & Senior Care
46. 46
REAL ESTATE & SENIOR CARE
LEASINVEST REAL ESTATE Regulated real estate company BE-REIT for retail and
offices and logistics in Luxembourg, Belgium and Austria
EXTENSA Real estate and land development in Belgium and
Luxembourg
ANIMA CARE Senior care in Belgium: 1,805 retirement home beds
and convalescent home beds and 205 service flats
in operation, spread over 20 retirement homes
HPA
- RESIDALYA
- PATRIMOINE & SANTÉ
Senior care in France
2,597 beds spread over 34 retirement homes
Real estate of Residalya
30.0%
100%
92.5%
71.7%
› 2017: Last tranche of exchange Holding Groupe Duval into Patrimoine & Santé completed
As a result: - AvH participation in Holding Groupe Duval reduced to 0%
- HPA owns 100% of Patrimoine & Santé (real estate of Residalya)
47. 47
REAL ESTATE & SENIOR CARE:
CONTRIBUTION TO AvH CONSOLIDATED NET RESULT
(in € mio) 2016 2015
Leasinvest Real Estate 14.9 10.1 9.9
Extensa 29.9 30.4 31.0
Anima Care 4.4 3.6 1.1
HPA 5.1 2.1 1.6
Holding Groupe Duval - - -8.0
Total 54.3 46.2 35.6
2017
48. 48
LEASINVEST REAL ESTATE (AvH 30%)
Public regulated real estate company for retail and offices in Luxembourg, Belgium
and Austria
Mercator - LuxembourgStadlau (Austria) - Mercator (Luxembourg)- Lux Airport
49. 49
LEASINVEST REAL ESTATE: KEY FIGURES
(in € mio) 2016 2015
Rental income 56.9 56.6 50.5
Net result 47.5 29.4 30.6
Net equity 382.2 356.4 362.4
Portfolio real estate (fair value) 903.0 859.9 869.4
Rental yield (%) 6.44 6.78 6.88
Occupancy rate (%) 94.80 96.77 95.8
Debt ratio (%) (1) 57.1 58.0 58.0
Per share (€)
Net asset value 77.4 72.2 73.4
Stock price (31/12) 96.00 105.50 93.09
High / low 107.95/93.99 114.00/90.20 97.85/79.40
Dividend 5.00 4.90 4.70
2017
(1) Financial debt: € 540 mio (2017), € 541 mio (2016), € 532 mio (2015)
Real estate portfolio (2017)
48%
45%
7%
Retail Offices Logistics
54%
35%
11%
Luxembourg Belgium Austria
50. 50
LEASINVEST REAL ESTATE: HIGHLIGHTS 2017
Real estate portfolio of € 903 mio
› High occupancy rate of 94.80%. Slight decrease due to renovation Montoyer 63 and the sale of
fully let logistics buildings and Swiss properties.
› Decrease of rental yield to 6.44%.
Strategic focus on two asset classes (retail, offices) and three countries (Belgium, Lux, Austria)
› May 2017: acquisition of Mercator office building (Luxembourg) for € 35 mio
› October 2017: disposal of Swiss retail portfolio (3 properties) for € 41.8 mio.
› October 2017: acquisition of two major retail parks in Vienna (Austria) for € 56.2 mio.
› In H2 2017, 4 Belgian logistics buildings sold for a total amount of € 72 mio.
Increase of net result driven by capital gains on portfolio
› Slight increase of rental income: impacted by changes in portfolio (acquisitions/divestments) and
by recognition of coupon of Lux Airport certificates as rental income
› Fair value of portfolio
- Positively impacted by higher occupance rate in Mercator + acquisition of Austrian properties
- Investments in redevelopment of Square de Meeûs and Montoyer properties in Brussels
- € 8 mio profit recognized on consolidation of Lux Airport certificates (previously OCI)
Debt rate decreased to 57.1%.
52. 52
Mercator - Luxembourg
(in € mio) 2016 2015
Contribution from Tour & Taxis 16.8 27.1 30.0
Contribution from Cloche d’Or 27.2 11.7 9.8
Net result 29.9 30.4 31.0
Net financial position -100.4 -260.1 -227.9
Net equity 163.6(1) 242.4 205.2
2017
EXTENSA (AvH 100%)
Real estate developer with focus on residential and mixed projects
in Belgium and Luxembourg
Key figures
Cloche d’Or - Luxembourg
(1) Dividend distribution of € 156 mio in 2017
53. 53
TOUR & TAXIS: DEVELOPMENT PLAN
Herman Teirlinck Royal Depot and Sheds Zone C and Gare Maritime(1)
(1) Artist impression
55. 55
ANIMA CARE (AvH 92.5%)
Anima Care focuses on high quality senior care residences in Belgium
(exploitation and real estate)
HIGHLIGHTS
2017
› Strong increase of turnover driven by acquisitions 2017 (381 beds): + 23.5% and 4Q16
(included for a full year).
› 6 new residences in Brussels region: Eden, Arcade and Neerveld (Sint-Lambrechts-
Woluwe), La Roseraie and Edelweiss (Anderlecht), Atrium (Kraainem).
› Portfolio of 1,805 beds and 205 service flats.
› Early 2018, acquisition of Ark van Noé (Bilzen) with 57 beds.
› 3 new residences under construction.
(in € mio) 2016 2015
Turnover 75.2 56.4 47.0
EBITDAR 16.1 14.0 9.3
EBITDA 14.3 13.1 8.9
Net result 4.8 3.9 1.1
Shareholder’s equity 54.3 46.6 40.0
Net financial position -85.2 -72.7 -69.2
# personnel 1,365 1,119 824
2017
20 RESIDENCES
2,010 BEDS
56. 56
ANIMA CARE: EVOLUTION OF CAPACITY
2012 2013 2014 2015 2016 2017
Planned
(until 2022)
Nursing home beds 547 804 965 1,127 1,347 1,728 2,056
Service flats 60 60 120 183 197 205 339
Convalescent home beds 37 77 77 137
Total 607 864 1,085 1,347 1,621 2,010 2,532
Aquamarijn - KasterleeLes Saules – Vorst(1)Zonnesteen - Zemst
(1) Artist impression
Arcade – Sint-Lambrechts-Woluwe
57. 57
HPA (AvH 71.7%)
HPA is active in senior care in France. It combines Residalya (exploitation) and
Patrimoine & Santé (real estate)
› Increase of turnover and net result driven mainly by expansion of portfolio: Pyla sur Mer
(60 beds), Villa Thalia (95 beds).
› Slight decrease of occupancy rate to 96.6% due to seasonal flu early 2017.
› Extension works in progress at residence Granvelle in Besançon (extra capacity of 40 beds).
Refurbishment works started at 3 other locations.
› Results positively impacted by a non-recurring tax effect of € 4.1 mio in 2017.
34 RESIDENCES
2,597 BEDS
(1) Residalya
(in € mio) 2016 2015 (1)
Turnover 114.1 105.6 91.6
EBITDAR 25.4 23.3
EBITDA 21.5 20.2 6.4
Net result 7.1 2.9 1.9
Shareholder’s equity 80.1 61.1 26.8
Net financial position -193.3 -182.3 -22.2
# personnel 1,547 1,547 1,445
2017
HIGHLIGHTS
2017
58. 58
HPA: EVOLUTION OF CAPACITY
2012 2013 2014 2015 2016 2017
Planned
(until 2022)
Beds 1,783 2,072 2,184 2,275 2,439 2,597 2,681
Villa ThaliaLa ScarpeLes Jardins de Saintogne
59. 59
FROM REAL ESTATE LEASING OVER REAL ESTATE
DEVELOPMENT TO REAL ESTATE SERVICES
Diversification into
‘Real estate services’
AvH 60%
(equipment &
real estate
leasing)
Acquisition
Extensa
(real estate
development)
Creation
of LRE
(investment trust)
Acquisition Brixton
(real estate
management)
Anima Care
(100%)
Senior care
facilities
&services
Extensa/LRE (group
share) equity
0
50
100
150
200
250
300
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Groupe Duval
(41%) France
(real estate
exploitation
& services)
AvH
100%
in € mio
Senior care equity
Residalya
(87%)
Senior care
in France:
Exchangestake
Groupe Duval into
HPA/Residalya
61. 61
THE PARTNERSHIP WITH THE BRACHT FAMILY RESULTED
IN THE SUCCESS OF SIPEF
Palm tree
planted by
Luc Bertrand
in 2015
20031997
AvH 12.7%
2009
AvH 20.9%
2011
AvH 26.7%
2015
AvH 27.7%
2017
AvH 30.25%AvH 18%
Energy & Resources
1919
Incorporation
1977
First
investment
PNG
1987
Agro Muko
Turnover
(USD mio) 113 238 368 226145
62. 62
Mercator - Luxembourg
SIPEF (AvH 30.25%)
A Belgian plantation group focusing on sustainable tropical agriculture (69,304 ha oil
palm and 6,424 ha rubber), in Indonesia and Papua New Guinea
Rubbertree nursery – Young oil palms planted – Harvesting of fresh fruit bunch(oil palm)
63. 63
SIPEF: KEY FIGURES
(1) Own and outgrowers
(2) Incl. USD 75.2 mio (group share) remeasurement acquisition PT Agro Muko
(in USD mio) 2016 2015
€ 1 = USD 1.137 € 1 = USD 1.115 € 1 = USD 1.10
Turnover 321.6 267.0 225.9
EBIT 90.3 47.5 21.5
Net result(2) 139.7 39.9 18.7
Shareholders' equity 634.6 448.1 415.4
Net financial position -83.7 -45.1 -50.5
Share high/low (in €) 69.84/57.76 60.49/45.95 53.89/40.67
Market cap (€ mio) 664.4 541.5 472.4
2017
Group production (1) (in T) 2016 2015
CPO 330,958 297,705 290,907
Rubber 8,179 9,192 10,069
Tea 2,402 2,940 2,726
Bananas 29,772 24,991 24,286
2017
64. 64
SIPEF: HIGHLIGHTS 2017
Strong increase of palm oil production to 330,958 tonnes
› Strong palm oil production throughout 2017 (+11.2%) against a weak year 2016 as comparison base.
› Stable rubber production in Indonesian plantations. Galley Reach (rubber – PNG) divested in 2016.
› 18.3% lower tea production.
› 19.1% higher production of bananas thanks to better yields and expansion.
Gross profit per product
(in USD)
2016
Palm oil 110,763 67,592
Rubber 3,324 48
Tea 1,116 842
Bananas 3,827 3,526
Corporate 1,444 1,784
120,474 73,792
2017
Significant increase of net result
› Increase of market prices for palm oil in
1H17, but relatively stable in 2H17.
Price of USD 660/T at the end
of December 2017.
› Higher sales prices for palm oil, lower production
costs per unit and full consolidation of PT Agro
Muko resulted in increase of +61.7% of net
result (excl. USD 75.2 mio remeasurement on PT
Agro Muko).
› Strong results of 2017 and full consolidation of
Agro Muko contribute to impressive cash flow
generation: USD 119.9 mio (2016: USD 51.2
mio).
Average market price per T
(in USD)
2016 2015
Palm oil 715 700 623
Rubber 1,995 1,605 1,559
2017
Strong cash flow generation
› Acquisitions of PT Dendymarker Indah Lestari palm oil plantation (USD 52.8 mio) and
Agro Muko (USD 144.1 mio) completed
› Capex 2017: USD 59.6 mio
› Capital increase: USD 97.2 mio
65. 65
SIPEF: EXPANSION
› Agreement to acquire from PT Austindo Nusantara Jaya TBK (10.87%) and M.P. Evans Group Plc (36.84%)
their stake in PT Agro Muko. Sipef gains exclusive control (95%) over PT Agro Muko. Deal finalized mid
February. Total investment of USD 144.1 mio. (PT Agro Muko = 19,570 ha oil palm + rubber)
› Agreement on acquisition of 95% of shares of PT Dendymarker in South Sumatra (USD mio 52.8): 6,565
ha planted/cleared land with expansion potential up to 9,000 ha. RSPO compliant. Deal finalized in
August.
› Transactions financed by combination of a capital increase with preferential subscription rights for the
current shareholders (USD 97.1 mio, issue price: €54.65), long-term bank financing (USD 50 mio) and
free cash flow.
Planted Ha
Increase of total planted areas to 71,865 ha
66. 66
SAGAR CEMENTS (AvH 17.57%)
› Increase of turnover thanks to capacity increase in
Mattampally and Vizag, higher capacity utilization and a
slight increase of sales prices.
› Slight dilution of AvH shareholding following the tranche of
the capital increase reserved for qualified investors. (AvH
and Reddy family had increased their shareholding in 2016.)
HIGHLIGHTS
2017
Cement group, located near Hyderabad (Andra Pradesh - India), with capacity of 4.3
million tonnes cement per year
(in € mio) 2016 2015
Turnover 132.1 103.6 105.3
Net result 2.5 2.9 6.4
Shareholder’s equity 105.3 80.5 75.6
Net financial position -59.4 -64.2 -60.8
# personnel 640 608 584
2017
67. 67
AVH & GROWTH CAPITAL
Agidens Atenor
Euro Media Group
Distriplus
MediahuisManuchar
Turbo’s Hoet GroepTelemondOncoDNA
68. 68
GROWTH CAPITAL IS AVH’S TOOL TO DIVERSIFY ALONG
NEW IDEAS AND TO INVEST IN NEW SECTORS
Privatization of NIM with a wide variety of companies is the start of an active private
equity era
1994
Focus on a more limited portfolio
of growth capital investments
supporting medium size family companies
2017
Acquisition of GIB (50/50 with CNP)2002
71. 71
For further questions or additional information,
please consult our website:
www.avh.be
Contact:
JAN SUYKENS
CEO - Chairman of the Executive Committee
TOM BAMELIS
CFO - Member of the Executive Committee
T +32 3 231 87 79
E dirsec@avh.be