Aalberts (AALB) CMD 2024 summary

Strategic ambitions and future roadmap

• New 2030 ambitions set: revenue target above €4.5 billion and EBITA/EBITDA margin over 18%, up from current >€3 billion revenue and >16% margin, with a focus on sustainable, profitable growth.

• Strategy centers on 'Thrive 2030' with three pillars: refocus (leadership, innovation, operational excellence), rebalance (portfolio and geographic mix), and recharge (segment-specific growth initiatives).

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

• Portfolio will be continuously optimized for leadership and a balanced mix across industry, semiconductor, and building segments, with increased North American revenue share from 25% to 33%.

• Commitment to sustainability includes net zero carbon by 2050 or earlier, 2030 targets for -50% Scope 1 & 2 CO2 intensity, and over 70% of revenue linked to SDGs.

Financial guidance and capital allocation

• Organic growth will drive about two-thirds of total growth, with a 4–6% CAGR targeted; CapEx of €250–300 million annually will support innovation and capacity expansion.

• Net M&A deployment of €200–250 million per year, with acquisitions focused on U.S. and Southeast Asia; divestments mainly in building and industry, targeting €800–1,000 million in added revenue and €400–500 million in divestments by 2030.

• Free cash flow conversion ratio targeted above 65%, with leverage ratio kept below 2.5; annual share buybacks planned when excess cash is available.

• Return on incremental capital employed (ROICE) targeted above 18% by 2030, with innovation rate goal set at over 20% of revenue from products developed in the last four years.

• Cash dividend policy set at 30% of net profit before amortisation; quarterly segment reporting to be introduced in 2025.

Segment-specific growth and innovation

• Industry: Focus on decarbonization, lightweight materials, and regional expansion, especially in North America and Europe, leveraging surface technologies and precision engineering.

• Semiconductor: Expansion in U.S. and Southeast Asia, investment in integrated modules and mega-factory, and focus on energy-efficient, vertically integrated solutions to support AI and connectivity growth.

• Building: Growth driven by energy transition, prefabrication, digital solutions, and U.S. market expansion; emphasis on recurring revenue from services and digital offerings.

• All segments to target EBITDA/EBITA margins above 18% by 2030, with operational excellence and innovation as key enablers.

• Data center and renovation markets identified as high-growth opportunities, especially in building segment.