Aalberts (AALB) CMD 2024 summary

Strategic ambitions and future roadmap

• 2030 ambitions target revenue above €4.5 billion and EBITA margin over 18%, up from €3 billion and 16% EBITDA, driven by organic growth, M&A, and portfolio optimization.

• Focus on three core segments: industry, semiconductor, and building, with reporting and KPIs aligned to these from 2025 for greater transparency.

• Plans to double North American revenue by 2030 through organic growth, operational excellence, and M&A, while strengthening positions in South-East Asia.

• Capital allocation prioritizes health, safety, sustainability, high-return investments, and includes share buybacks when excess cash is available.

• Commitment to sustainability includes net zero by 2050 or earlier, over 70% of revenue linked to SDGs, and new 2030 CO2 intensity targets.

Financial guidance and capital allocation

• Organic growth will account for about two-thirds of expansion, with 4–6% annual growth targeted and 2026 objectives of 16–18% EBITA margin.

• M&A will add €800–1,000 million in revenue by 2030, offset by €400–500 million in divestments, for net growth of €400–500 million.

• Annual CapEx of €250–300 million and net M&A deployment of €200–250 million planned, with share buybacks and a cash dividend policy at 30% of net profit before amortisation.

• Free cash flow conversion ratio targeted above 65%, leverage ratio below 2.5, and ROICE above 18% over a 10-year period.

• Return on incremental capital employed was 20.9% in 2023, with some pressure expected from increased capital allocation.

Segment strategies and growth drivers

• Industry: Focus on decarbonization, lightweight materials, and regional expansion, especially in North America and Europe, leveraging technology and acquisitions.

• Semiconductor: Expansion in U.S. and Southeast Asia, investment in integrated modules, and sustainability initiatives; market expected to grow over 8% annually.

• Building: Growth driven by greenification, prefabrication, digital solutions, and U.S. expansion; recurring revenue from services and digitalization to increase.

• All segments benefit from megatrends: urbanization, technology acceleration, reshoring, and decarbonization.

• Divestments and acquisitions will be balanced across segments, with most divestments expected in building and industry.