Press Release
18 March 2014
Royal Imtech publishes fourth quarter and full year 2013 results
Imtech shifting emphasis to operational and financial recovery









Revenue in the fourth quarter 1,299 million euro
Positive operational EBITDA in the fourth quarter of 6 million euro
Order intake in the fourth quarter 1,204 million euro, slightly lower than revenue
Earlier announced non-operational items drive negative net result in the fourth quarter of 370
million euro
Net negative result for the year 697 million euro mainly due to earlier announced non-operational
items
Net debt down to 745 million euro (third quarter 2013: 836 million euro)
Main focus on organic growth, operational recovery and debt reduction by at least 400 million euro
Implementation of detailed improvement plan ‘Neue Imtech’ in Germany
New agreement with financiers, including amended covenants
Key figures
in € million, unless otherwise indicated
Quarters
*
Q4 2013
1,299.0
5.6
-247.5
-241.9
-298.0
-324.7
-370.0
1,203.9
-9.5
745.0
Q3 2013*
1,222.1
-2.6
-29.8
-32.4
-56.9
-88.6
-96.1
1,117.4
335.7
835.7
0.4%
-18.6%
-0.2%
-2.7%
26,168
27,478
Full year
2013
4,944.9
-44.4
-379.5
-423.9
-549.3
-639.6
-696.6
4,725.8
-9.5
745.0
2012
5,354.9
-23.7
-74.3
-174.6
-235.6
-240.5
106.2
773.0
Margins
Operational EBITDA margin
EBITDA margin
-0.9%
-8.6%
-0.5%
-1.4%
Number of employees
26,168
28,022
Revenue and other income
Operational EBITDA
Non-operational costs
EBITDA
Operating result (EBIT)
Net result from continuing operations
Net result
Order intake
Working capital
Net interest-bearing debt
Adjusted for discontinued operation
Gerard van de Aast, CEO: “2013 will be marked as a very turbulent year in the history of Imtech given
the events that occurred in Poland and Germany with a large impact on our organization and
especially our German business. The net loss for the year of 697 million euro is the result of all events
and consequences we earlier announced and mainly attributable to non-operational items such as
one-off valuation allowances, restructuring costs and finance charges.
In the last quarter of the year we saw a sound operational performance in most of our divisions, with a
good improvement of operational EBITDA margin and good cash collection. Our German business has
not yet improved in the fourth quarter. We have started a detailed action plan ‘Neue Imtech’ that will
drive improvement of results in Germany.
The fundamentals of Imtech remain unchanged, with a skilled and experienced workforce throughout
our divisions and recognized market positions. Based on these fundamentals the focus will be on an
organic growth and operational improvement program to enhance profitability and cash flow and on a
significant debt reduction program as part of our financial recovery efforts. The new agreement with
our financiers will facilitate and support both programs. This agreement provides Imtech with sufficient
committed liquidity and guarantee headroom and entails an amendment of financial covenants in line
with the current business plan.”
1
2013 was a year of transition and resolving legacy items
As communicated before, beginning 2013 we were confronted with irregularities in Poland and
Germany, requiring deep investigations and an extended auditing and reviewing process of our
company. The investigation resulted in a comprehensive Report to Shareholders, that we published on
18 June 2013.
In the first quarter, we introduced a company wide operational excellence program with a strong focus
on improving the profitability and cash generation and strengthening the business controls. In April, a
headcount reduction plan of 1,300 FTEs was announced to improve the profitability. During the year,
this program was extended to 2,300 FTEs and implemented. In the summer, we strengthened the
balance sheet by an equity issue with net proceeds of 487 million euro. Management was
strengthened throughout the company.
Non-operational items in 2013 drive negative result of 697 million euro
The net loss for the year of 696.6 million euro includes an operational EBITDA loss of 44.4 million
euro, of which 107.7 million euro is attributable to Germany & Eastern Europe. This means, the rest of
the group realised a positive operational EBITDA of 63.3 million euro. Previously announced one-off
items are the non-operational costs for 379.5 million euro. Legacy items account for in total 230.0
million euro of which 195.9 million euro is included in the aforementioned non-operational costs, 29.3
million euro relates to impairment of (in)tangibles assets and 4.8 million euro is included in share
results of associates, joint ventures and other investments. The net finance costs amounted to 105.0
million euro, mainly driven by higher cost of debt (67.5 million euro) and refinancing costs (23.9 million
euro). The sale of the Turkish operating company AE Arma-Elektropanç resulted in a net loss of 40.8
million euro, included in result from discontinued operations.
The restructuring program 2013 has been finalised with a total costs of 103.8 million euro, of which
33.1 million euro in the fourth quarter.
Operational and financial recovery going forward
We now enter the next phase of recovery with focus on enhancing our organic growth, operational
performance and regaining Imtech’s financial health. We have concluded that a further significant debt
reduction is required for our financial recovery efforts. We are committed to reduce debt by at least
400 million euro. To realise this, we will review all options in order to intensify the debt reduction
program in 2014.
Good progress on operational recovery plan
In the second half of the year, we intensified our recovery plan, including the implementation of the
operational excellence program. Towards the end of the year, this resulted in a good improvement of
operational EBITDA margin, excluding Germany & Eastern Europe, also helped by the impact of
management upgrades and the completed headcount reduction programs. Our focus on working
capital management and cash management resulted in a good net debt reduction of 91 million euro in
the fourth quarter to 745 million euro. All businesses, including Germany & Eastern Europe,
contributed to this good result. We can conclude that Imtech’s strong foundations are intact. Every
day, our committed employees serve thousands of customers with technical solutions all over the
world. The order intake during 2013 was satisfactorily and in line with revenue. As previously
communicated, the results in our businesses provide a platform for recovery. In Germany we
accelerated and intensified our recovery plan, named ‘Neue Imtech’.
German action plan: ‘Neue Imtech’
Management has launched a comprehensive recovery plan to rebuild the German organisation,
named ‘Neue Imtech’. This program prioritizes healthy project margins over volume and is based on a
detailed action plan consisting of eight building blocks: project execution excellence, procurement,
improving sales processes, prudent spending, streamlining organisation and staff, modern cash
2
management, closure of unprofitable branches in Eastern Europe, and establish a sustainable
strategy. An important element of the recovery program is the closure of the legacy items which
resulted in a total valuation allowances of 197.9 million euro as already announced in February 2014.
New agreement with financiers including amended covenants
Imtech has reached agreement with its main lenders and guarantee providers on a comprehensive
financing solution that creates a foundation to stabilize operations and implement the operational and
financial recovery referred to above.
The agreement provides Imtech with access to 1.3 billion euro of committed credit facilities (including
senior notes) and 843 million euro of committed guarantee facilities (including 50 million euro from
drawings under the credit facilities). The agreement provides Imtech with sufficient liquidity and
guarantee headroom and entails an amendment of financial covenants in line with the current
business plan.
The agreement is structured to harmonise the maturity of the cash and guarantee facilities to 1
November 2015. Imtech and its main lenders have committed to extend the maturity until July 2017.
However, this extension is not yet finalised as one of the financiers under the RCF has not agreed to
the financing solution. However all financiers are bound by it at least until 1 November 2015 under the
terms of the RCF.
The new agreement includes:
-
Replacement of existing financial covenants by a minimum EBITDA level and a minimum
operational cash flow level over the last twelve months from 30 September 2014 to 30
September 2016 and (if facilities are extended) a minimum operational cash flow level, an
interest cover ratio, a senior leverage and a total leverage ratio from 31 December 2016 to 30
June 2017. The minimum EBITDA level increases over time. The minimum operational cash
flow varies in line with the company's business plan. All covenants are in line with the
company’s business plan plus headroom.
-
A commitment to delever with 250 million euro by 30 June 2015 and a best effort obligation to
further delever with in total at least 400 million euro by the same date but a reduction with a
substantially higher amount is not excluded. If the company has not achieved its deleveraging
target in full by 30 June 2015, non-cash fees of an estimated 25 million euro will accrue on
both 30 June and 30 September 2015 and semi-annually thereafter for as long as the
deleveraging target is not met. Also, if the deleveraging target has not been achieved in full by
30 June 2015, the company will be required to issue warrants to its financiers up to 10% of the
company's then outstanding share capital at an exercise price equal to the nominal value at
the time of issue. The granting of warrants requires approval of the shareholders. If
shareholders’ approval is not obtained a synthetic fee will be paid.
-
Revised interest arrangements resulting in a margin of 7.5% (of which 3.75% non-cash
interest) on RCF and bilateral credit facilities and interest of 9.8% on senior notes (of which
2.00% non-cash interest). Guarantee fees range from 3.75-4.5% (of which 1.25-1.50% noncash). The margin on the RCF and bilateral credit facilities and the guarantee fees are subject
to reduction based on a leverage ratio grid.
-
One-off fees and make-whole amounts payable to financiers aggregating 53 million euro of
which circa 10 million euro in cash and 32 million euro is contractual make-whole added to the
principal of the senior notes.
Imtech continues to be focused on achieving a long term sustainable capital structure and is
committed to reduce indebtedness by at least 400 million euro. To realize this debt reduction Imtech
will review all options in order to intensify the debt reduction program in 2014.
3
Confirmation of medium term targets
We maintain our medium term targets to achieve an operational EBITDA margin of 4-6%, a cash
conversion of 90% and a maximum leverage ratio of 2.0. To achieve these targets we will continue to
focus on organic growth, improvement of our operational performance by implementing operational
excellence programs and debt reduction.
Comparative figures 2012
Imtech has adopted the revised IAS 19 Employee benefits as per the financial year 2013. IAS 19 must
be applied retrospectively with a restatement of comparative figures for 2012. For further details
reference is made to note 3 of the 2013 financial statements.
The company has decided to dispose its 80% shareholding in AE Arma-Elektropanç (Arma). As a
result, these activities are classified as discontinued operations. The comparative consolidated profit
and loss account 2012 has been restated to show the discontinued operations separately from
continuing operations. In the balance sheet the related assets and liabilities are classified as held for
sale as per 31 December 2013. Reference is made to note 13 of the 2013 financial statements.
Financial performance
Income statement
in € million
Quarters
*
Q4 2013
1,299.0
5.6
-247.5
-241.9
-11.1
-45.0
-298.0
-23.5
Q3 2013*
1,222.1
-2.6
-29.8
-32.4
-9.9
-14.6
-56.9
-25.8
-2.1
-1.1
-324.7
-45.3
-370.0
-3.9
-2.0
-88.6
-7.4
-96.1
Revenue and other income
Operational EBITDA
Non-operational costs
EBITDA
Depreciation
Amortisation & impairment
Operating result (EBIT)
Net finance result
Share of results of associates, joint ventures
and other investments
Income tax expense
Net result from continuing operations
Result from discontinued operations
Net result
Full year
2013
4,944.9
-44.4
-379.5
-423.9
-40.5
-84.9
-549.3
-105.0
2012
5,354.9
-23.7
-74.3
-39.6
-60.7
-174.6
-62.0
-5.7
20.4
-639.6
-57.0
-696.6
2.8
-1.8
-235.6
-4.9
-240.5
Adjusted for discontinued operation
Fourth quarter 2013
The last quarter of the year is seasonally a better quarter. Revenue came in at 1,299 million euro, in
line with previous quarters of 2013. Almost all divisions contributed to the revenue increase in the
quarter, particularly ICT (+48%) and Traffic & Infra (+32%). Exceptions are Germany & Eastern
Europe (-31%) and to a lesser extent UK & Ireland (-7%).
The operational EBITDA ended at 5.6 million euro in Q4, including an operational EBITDA loss of
Germany & Eastern Europe of 32.8 million euro. Operational EBITDA excluding Germany & Eastern
Europe improved markedly in the quarter from 17.1 million euro to 41.7 million euro in Q4 2013 as a
result of the benefits of restructuring the businesses of Benelux, Marine and Traffic & Infra, and a
strong fourth quarter of ICT. In UK & Ireland and Nordic, operational EBITDA was lower than in Q3
2013.
The non-operational costs in Q4 2013 amounted to 247.5 million euro and include previously
announced costs made for restructuring for 33.1 million euro (mainly in Germany), 5.5 million euro for
4
financial restructuring, valuation allowances of 195.9 million euro, mainly related to Germany &
Eastern Europe and 13.0 million euro for several other non-operational overhead costs such as
advisory and legal.
Depreciation in Q4 2014 was 11.1 million euro. Amortisation and impairment was 45.0 million euro,
including an impairment of 29.4 million euro as part of the valuation allowances of in total 230.0 million
euro. The accelerated amortisation of the brand name NVS in Nordic, as our business in Nordic is
implementing the Imtech brand name, counts for 4.2 million euro in Q4 2013.
In Q4 2013, the net finance result is -23.5 million euro. The net finance result includes amongst other
net interest expenses (Q4 2013: 18.8 million euro, first nine months 2013: 48.7 million euro) and
earlier announced financing costs (Q4 2013: 0.9 million euro, first nine months 2013: 27.4 million
euro).
The share of results of associates, joint ventures and other investments amounted to -2.1 million euro
(first nine months 2013: -3.6 million euro), including 4.8 million euro related to the valuation
allowances.
The effective tax rate for Q4 2013 was 0.3% negative (first nine months 2013: 5.7% positive). The
effective tax rate is significantly impacted by losses made in 2013. Part of these losses do not result in
a direct tax credit, particularly for businesses located in the Netherlands, Germany and Eastern
Europe.
Full year 2013
Revenue for the year 2013 came in at 4,945 million euro, a decrease of 8% primarily due to Germany
& Eastern Europe. Also Benelux, Marine, Spain and UK & Ireland reported a decrease of revenue.
The revenue decrease was partly offset by an increase in Nordic, ICT and Traffic & Infra.
The operational EBITDA resulted in a loss of 44.4 million euro. Germany & Eastern Europe was the
main contributor of this loss, also Benelux, Marine and Spain reported a loss. Positive operational
EBITDA was realised in ICT, UK & Ireland, Nordic and Traffic & Infra.
The non-operational costs of 379.5 million euro include amongst other as previously announced costs
made for restructuring for 103.8 million euro (mainly Benelux, Germany and Marine), 22.3 million euro
for financial restructuring and the valuation allowances in Benelux and Marine for 40.0 million euro, the
valuation allowances in the fourth quarter of 195.9 million euro and 17.5 million euro for several other
non-operational overhead costs such as advisory, legal and rebranding.
Depreciation was 40.5 million euro. Amortisation and impairment amounted to 84.9 million euro,
including an impairment of 29.3 million euro as part of the valuation allowances in the fourth quarter
and 14.2 million euro for the accelerated amortisation of the brand name NVS in Nordic.
The net finance result is 105.0 million euro. The net finance result includes amongst other net interest
expenses (67.5 million euro) and earlier announced financing costs (28.5 million euro).
The share of results of associates, joint ventures and other investments amounted to -5.7 million euro,
including 4.8 million euro related to the valuation allowances.
The effective tax rate for the year was 3.1%. The effective tax rate is significantly impacted by losses
made in 2013. Part of these losses do not result in a direct tax credit, particularly for businesses
located in the Netherlands, Germany and Eastern Europe.
Result for discontinued operations (net of tax) amounted to -45.3 million euro in Q4 2013 and -57.0
million euro for the full year, and are related to the divestment of the Turkish business AE ArmaElektropanç as announced on 17 January 2014.
5
Result for the period, result per share
in € million, unless otherwise indicated
Quarters
Q4 2013
-370.0
1.1
-371.1
45.0
-326.1
Q3 2013
-96.1
0.8
-96.8
14.6
-82.3
Full year
2013
-696.6
4.6
-701.2
84.9
-616.3
2012
-240.5
6.7
-247.2
60.7
-186.5
Basic result per share from continuing operations
Diluted result per share from continuing operations
-2.15
-2.15
-1.26
-1.26
Basic result per share
Diluted result per share
-2.34
-2.34
-1.29
-1.29
Net result
Non-controlling interests
Net result for shareholders
Amortisation & impairment
Adjusted net result for shareholders
Balance sheet
Selected balance sheet items
in € million, unless otherwise indicated
31 Dec 2013
161.0
1,181.8
44.3
1,387.1
-9.5
79.9
1,457.5
30 Sep 2013
158.0
1,266.1
75.2
1,499.3
335.7
25.3
1,860.3
31 Dec 2012
170.8
1,299.7
66.5
1,537.0
106.2
27.6
1,670.8
313.3
745.0
11.8
30.9
296.7
59.8
1,457.5
678.4
835.7
19.7
28.4
273.0
25.1
1,860.3
524.5
773.0
24.8
24.0
299.4
25.1
1,670.8
31 Dec 2013
168.7
859.3
215.7
1,243.7
30 Sep 2013
382.0
938.1
265.7
1,585.8
31 Dec 2012
264.8
1,132.1
283.8
1,680.7
756.5
496.7
1,253.2
708.7
541.4
1,250.1
890.8
683.7
1,574.5
Working capital
As % of LTM revenue
-9.5
-0.2%
335.7
6.4%
106.2
2.0%
Working capital excluding remaining legacy items
As % of LTM revenue
-85.2
-1.7%
-
-
Property, plant and equipment
Goodwill & other intangible assets
Other non-current assets
Non-current assets
Working capital
Assets held for sale
Capital employed
Equity
Net interest-bearing debt
Other (non-interest bearing) LT liabilities
Restructuring provisions
Other liabilities
Liabilities held for sale
Funding
Working capital
in € million, unless otherwise indicated
Work in progress
Trade receivables
Other current assets
Trade payables
Other current liabilities
6
Net amount trade receivables (aging)
in € million, unless otherwise indicated
Not past due
Past due <180 days
Past due >180 days
Total
Past due > 180 days excluding remaining legacy items
31 Dec 2013
635.5
136.5
87.3
859.3
30 Sep 2013
668.5
140.6
129.0
938.1
31 Dec 2012
767.8
228.8
135.5
1,132.1
33.6
-
-
Remaining legacy items
As announced on 3 February 2014, there are remaining legacy items on the balance sheet. A
dedicated team at Imtech will resolve these remaining legacy items in a pragmatic and optimized
manner. The vast majority of these remaining legacy items does not have a direct relation to current
operations. At year-end the total amount of remaining legacy items on the balance sheet amounts to
82.5 million euro. The company will report separately and quarterly on these remaining legacy items
going forward.
Fourth quarter 2013
Capital employed declined by 402.8 million euro to 1,457.5 million euro per end Q4 2013 as a result of
increased focus on cash and working capital management as well as valuation allowances of 230
million euro, of which 175.7 million euro is related to working capital, 54.3 million euro to other balance
sheet items, mainly non-current items.
Goodwill and other intangibles decreased by 84.3 million euro to 1,181.8 million euro primarily due to
the disposal of AE Arma-Elektropanç in Turkey and a movement in exchange rates. Working capital
declined by 345.2 million euro to -9.5 million euro per end of Q4 2013. Within working capital, the
decline is primarily related to the previously announced valuation allowances of 193.9 million euro as
well as an increased focus on working capital reductions. Most important elements of valuation
allowances in working capital are for work in progress 110.5 million euro and receivables 66.8 million
euro. Assets and liabilities held for sale both increased in the quarter as a result of the conclusion of
the strategic review to dispose our 80% shareholding in AE Arma-Elektropanç. The previously
reported amounts of assets and liabilities held for sale (a data centre in Germany) have been
reclassified to property, plant and equipment and interest-bearing debt as these assets will remain in
use.
The equity decreased in Q4 by 365.1 million euro to 313.3 million euro due to the net loss realized in
Q4 2013. The net interest-bearing debt decreased by 90.7 million euro to 745.0 million euro as a result
of the positive cash flow from operational activities (133.3 million euro) in Q4 2013, pay-out of
severance related to the 2013 restructuring plans (30.7 million euro), costs associated with the
financial restructuring (5.4 million euro), paid interest, paid tax and reclassification of liabilities held for
sale.
Full year 2013
Capital employed decreased by 213.3 million euro to 1,457.5 million euro in 2013 as a result of
increased focus on cash and working capital management as well as valuation allowances. Goodwill
and other intangibles decreased by 117.9 million euro to 1,181.8 million euro primarily due to the
disposal of AE Arma-Elektropanç in Turkey, accelerated amortisation of the brand name NVS in
Nordic (14.2 million euro) and a movement in exchange rates (-28.0 million euro). Working capital
decreased by 115.7 million euro to -9.5 million euro per end of Q4 2013.
The equity decreased during the year by 211.2 million euro to 313.3 million euro is due to the net loss
realized in 2013 offset by net proceeds of the equity increase during the summer of 487.1 million euro.
The net interest-bearing debt decreased by 28.0 million euro to 745.0 million euro as a result of the
negative EBITDA in 2013, pay-out of severance related to the 2013 restructuring plans (73.8 million
euro), costs associated with the financial restructuring (110.6 million euro), paid interest, paid tax,
capital expenditure offset by the gross proceeds of the equity increase.
7
Cash flow statement
Fourth quarter 2013
The net cash flow from operating activities in Q4 2013 amounts to 149.6 million euro positive. The
cash flow was impacted by a net loss of 370.0 million euro in the quarter and good cash collection
from working capital of 101.9 million euro.
The net cash flow from investing activities in Q4 2013 was 0.9 million euro positive. During Q4 2013
2.5 million euro of earn-outs were paid for previous acquisitions. Net capital expenditure in Q4 2013
for property, plant & equipment and intangible assets amounted to 17.7 million euro.
Full year 2013
The net cash flow from operating activities in 2013 amounts to 327.5 million euro negative. The cash
flow was impacted by the net loss of 696.6 million euro.
The net cash flow from investing activities in 2013 was 57.8 million euro negative. During 2013 27.7
million euro were paid for the acquisitions in Finland and earn-outs of previous acquisitions. Net capital
expenditure in 2013 for property, plant & equipment and intangible assets amounted to 39.5 million
euro.
Performance by division
Benelux
Quarters
Q4 2013
186.2
1.3
0.7%
-8.8
125.9
4,120
Q3 2013
167.7
-1.1
-0.7%
-5.0
203.5
4,284
in € million, unless otherwise indicated
Revenue
Operational EBITDA
Operational EBITDA margin
EBITDA
Order intake
Number of employees
Full year
2013
682.8
-17.6
-2.6%
-63.4
625.5
4,120
2012
766.1
-19.1
-2.5%
-51.2
4,859
Markets in Benelux remain challenging, especially the Dutch buildings market. The industrial
businesses remain stable, with opportunities in the international oil and gas business. The Belgian
market shows first signs of improvement.
Revenue increase of 11% to 186 million euro in Q4 2013 was driven by year-end closing of projects.
Operational EBITDA turned into a positive result of 1.3 million euro after previous loss making quarters
as consequence of year-end closings of projects as well as the benefits of the restructurings in
previous quarters. The building services unit in the Netherlands is continuing to address operational
efficiency issues and has to deal with a weak building market. The industrial businesses delivered a
good performance in the fourth quarter. Order intake during the quarter was lower than revenue,
reflecting decreasing volumes in the buildings market. Interesting projects awarded in Q4 are the
upgrading of 21 operating rooms at the University Medical Centre in Utrecht and the design and
implementation of new security systems and power supplies at NXP Semiconductors.
For the full year, revenue was 683 million euro reflecting the challenging market conditions.
Operational EBITDA for the year was a loss of 17.6 million euro due to a negative results in the Dutch
buildings services business which could not be fully offset by good performance in the industrial
businesses. Order intake for the year was slightly below revenue. The number of employees
decreased by 739 FTEs to 4,120 FTEs and is primarily the result of the restructurings in the Dutch
buildings business.
8
Germany & Eastern Europe
Quarters
Q4 2013
185.8
-32.8
-17.6%
-239.7
161.6
4,740
Q3 2013
269.3
-19.7
-7.3%
-26.8
187.0
5,304
in € million, unless otherwise indicated
Revenue
Operational EBITDA
Operational EBITDA margin
EBITDA
Order intake
Number of employees
Full year
2013
968.6
-107.7
-11.1%
-327.7
800.6
4,740
2012
1,372.1
-131.2
-9.6%
-131.2
5,479
The market conditions in Germany remain favourable and our market position based on our strong
technical competences continues to be solid.
Fourth quarter revenue decreased to 186 million euro as a result of prioritizing margin over volume
and the impact of valuation allowances for 66.2 million euro. Operational EBITDA was a loss of 32.8
million euro as a result of the high cost structure and several weak project results. The headcount
restructuring program 2013 has resulted in a reduction of 564 FTEs. The order intake for the quarter
was lower than revenue and arrives at 161.6 million euro. Good orders included in the Q4 order book
are the electric, ventilation and sprinkler solutions for the new headquarter of the German automotive
component supplier ZF and the ventilation systems at the new build hospital of SLK Kliniken
Heilbronn.
Revenue for the year amounted to 969 million euro. Operational EBITDA was a loss of 107.7 million
euro. Order intake for the year was lower than revenue, which is based on the new market approach
of prioritizing margin over volume. The number of employees decreased by 739 FTEs to 4,740 FTEs
and is the impact of downsizing our businesses in Germany and Eastern Europe.
UK & Ireland
Quarters
Q4 2013
174.7
6.7
3.8%
5.8
207.0
3,396
Q3 2013
188.6
9.3
4.9%
7.8
127.6
3,504
in € million, unless otherwise indicated
Revenue
Operational EBITDA
Operational EBITDA margin
EBITDA
Order intake
Number of employees
Full year
2013
738.0
30.7
4.2%
28.2
673.7
3,396
2012
750.6
44.6
5.9%
44.2
3,598
The UK engineering services market is characterised by tough market conditions resulting in very tight
margins in the marketplace. In the fourth quarter, some improvements were becoming apparent.
In the fourth quarter, revenue was down 7% to 175 million euro reflecting a downturn in the UK
engineering services market as well as the primary project in Kazakhstan is coming to conclusion. The
operational EBITDA of 6.7 million euro was 28% lower than Q3 2014 reflecting the margin pressure in
UK engineering services business. This margin pressure was partly offset by other technical
maintenance, system integration and waste, water & energy. Order intake increased in the quarter to
207.0 million euro and was higher than revenue. Interesting orders awarded in the Q4 are for the
international dairy food company Glanbia Foods for the installation of HVAC power, fire alarms and
emergency lighting and for the new to be build Kensington and Chelsea Leisure Centre the design and
build of the combined heating and power generation and ventilation systems. The reduction of 108
FTEs in the fourth quarter to 3,396 FTE is the result of streamlining the business, particularly for UK
engineering services business.
9
In 2013, the business environment was considerable tougher than 2012. Revenue for the year
remained stable at 738 million euro, including a negative currency impact of 27.9 million euro.
Operational EBITDA of 30.7 million euro was impacted by margin pressure in the UK engineering
services business and a currency impact of 1.0 million euro negative. Order intake ended somewhat
below revenue at 673.7 million euro for the year. The continued focus on streamlining the business to
market conditions and order intake resulted in a decrease of 202 FTEs. Total number of employees at
year-end amounted to 3,396 FTEs.
Nordic
Quarters
Q4 2013
237.6
7.5
3.2%
7.1
218.6
5,406
Q3 2013
202.2
6.6
3.3%
6.3
161.9
5,549
in € million, unless otherwise indicated
Revenue
Operational EBITDA
Operational EBITDA margin
EBITDA
Order intake
Number of employees
Full year
2013
891.6
29.8
3.3%
25.0
888.1
5,406
2012
804.9
59.6
7.4%
60.4
4,937
Market environment in both Sweden and Finland is difficult with lower volumes and margin pressure.
Towards the end of the year, first signs of a market recovery became visible. The Norwegian market
shows some slowdown.
In the quarter, revenue was 18% higher at 238 million euro. The operational EBITDA increased to 7.5
million euro, though negatively impacted by inefficiencies on projects in Sweden and Finland. The
NKS project in Sweden realised a significant loss in 2013. Order intake in the quarter was 35% up to
217.9 million euro. New orders included in the order book are the upgrading of the ventilation systems
and medical gas supply systems in the University Hospital Linköping and the modernisation of the
heating, sanitation and cooling system at the Lund Institute of Technology. The reduction of 143 FTEs
in the fourth quarter is related to the integration process of previous acquisitions.
In 2013, revenue increased to 892 million euro as a result of the consolidation of the Finnish company
EMC with 101.8 million euro revenue. Operational EBITDA amounted to 29.8 million euro due to weak
project results and some margin pressure in the market. Order intake was in line with revenue and
amounted to 888.1 million euro. The increase of the number of employees by 469 FTEs in 2013 is the
result of the acquisition of EMC.
Spain
Quarters
Q4 2013
34.6
-0.5
-1.4%
-0.8
59.8
1,560
Q3 2013
27.9
-0.7
-2.5%
-0.7
12.0
1,733
in € million, unless otherwise indicated
Revenue
Operational EBITDA
Operational EBITDA margin
EBITDA
Order intake
Number of employees
Full year
2013
126.9
-2.3
-1.8%
-3.0
122.6
1,560
2012
156.1
-0.8
-0.5%
-5.3
1,809
It looks like that the Spanish markets have now reached the bottom, but competition is still fierce. For
the maintenance market, conditions improved slightly in the fourth quarter.
Revenue in the quarter is up 24% to 35 million euro due to higher production levels in the Spanish
building projects business. Operational EBITDA improvement is related to the benefits of the
restructuring as executed during the year. Good order intake in Q4 is also due to securing the
10
maintenance business for 2014. Interesting new orders are the renewal of the five year maintenance
contract at Cepsa’s fuel and chemical plants in Huelva and the three year maintenance contract at the
MSC Terminal in the Port of Valencia. The reduction of 173 FTEs in Q4 is a combination of
restructuring and expiring of labour agreements related to the closure of specific contracted work.
In 2013, revenue decreased by 19% to 127 million euro due to challenging economic conditions in the
markets for both building projects as well as industry projects. Operational EBITDA was a loss of 2.3
million euro. Order intake for the year was in line with revenue and amounted to 122.6 million euro.
The number of employees decreased by 249 FTEs to 1,560 FTEs.
ICT
Quarters
Q4 2013
260.8
18.3
7.0%
16.6
283.6
2,380
Q3 2013
176.5
6.3
3.6%
4.4
181.2
2,432
in € million, unless otherwise indicated
Revenue
Operational EBITDA
Operational EBITDA margin
EBITDA
Order intake
Number of employees
Full year
2013
740.1
36.9
5.0%
32.7
777.6
2,380
2012
667.0
43.8
6.6%
43.8
2,422
The fourth quarter is traditionally a strong quarter for the ICT business. Revenue in Q4 showed a
considerable increase to 261 million euro, strongly driven by one-off deals initiated by some of our
strategic partners at the end of the quarter. Operational EBITDA increased to 18.3 million euro and
correspondingly margin improved to 7.0%. The higher quarter order intake of 283.6 million euro is
mainly related to the partner deals. Interesting new contracts are the management and implementation
of a flexible data centre infrastructure of the Dutch certification company Kiwa and the three years IT
outsourcing contract for the Swedish staffing company Lernia. The number of employees decreased to
2,380 FTEs and is related of the continuous streamlining of the ICT portfolio which include also in two
small non-strategic asset disposals in UK and Austria with no financial impact.
Revenue for the year was 11% up to 740 million euro, particularly due to a good last quarter.
Operational EBITDA was 36.9 million euro. Order intake at 777.6 million euro was higher than revenue
for the year. The number of employees was slightly lower than a year ago and amounted to 2,380
FTE.
Traffic & Infra
Quarters
Q4 2013
111.1
5.9
5.3%
5.0
75.6
2,072
Q3 2013
84.3
3.9
4.6%
5.2
74.1
2,042
in € million, unless otherwise indicated
Revenue
Operational EBITDA
Operational EBITDA margin
EBITDA
Order intake
Number of employees
Full year
2013
384.6
12.0
3.1%
-8.4
361.5
2,072
2012
346.0
11.6
3.4%
5.8
2,315
Revenue in the quarter amounted to 111 million euro, an increase of 31.8% compared to previous
quarter driven by closing of projects. Operational EBITDA was up 51% to 5.9 million euro, also
reflecting the benefits of the restructuring program in the Netherlands earlier in the year. Good new
orders are the contract of the design and implementation of a new traffic control centre in the south of
the Netherlands and the installation and maintenance of the intelligent travel information system at
Utrecht Central Station. The increase of the number of employees is related to some quality upgrade
of the organisation.
11
Revenue for the year improved by 11% to 385 million euro due to good performance of the businesses
in Belgium and Nordic, partly offset by the Dutch business. Operational EBITDA was 12.0 million euro.
Order intake for the year amounted to 361.5 million euro and was slightly below revenue. The number
of employees decreased by 243 FTEs due to restructuring of the Dutch infra business in the first halfyear.
Marine
Quarters
Q4 2013
111.8
1.0
0.9%
-15.3
91.1
2,410
Q3 2013
111.4
-1.6
-1.4%
-13.3
170.1
2,541
in € million, unless otherwise indicated
Revenue
Operational EBITDA
Operational EBITDA margin
EBITDA
Order intake
Number of employees
Full year
2013
415.9
-9.9
-2.4%
-61.5
476.2
2,410
2012
491.7
-0.5
-0.1%
-9.3
2,528
Revenue for the quarter remained stable at 112 million euro. The operational EBITDA turned in to a
positive result and amounted 1.0 million euro, for the first time benefiting from restructuring of previous
quarters. Order intake of 91.1 million euro for the quarter is satisfactorily. Good new orders are the
contract for the engineering and installation of electrical power generation and distribution systems
and electrical distribution systems for a new heavy construction vessel for the offshore energy
contractor Subsea 7. Another project is the design and commissioning of the electrical installation,
automation and electrical propulsion systems for a river pusher, out of a series of 8, for the Brazil
operator Hidrovias. Reduction of 131 FTEs in the quarter is the result of the restructuring program.
The full-year revenue of 416 million euro was 15% down due to low order intake in 2012. Operational
EBITDA was a loss of 9.9 million euro due to weak project results and inefficiencies. Order intake
amounted to 476.2 million euro and was higher than revenue for the year. The number of employees
decreased by 118 FTEs to 2,410 FTEs as a result of the restructuring.
Group management
Quarters
Q4 2013
-3.6
-1.8
-11.8
84
Q3 2013
-5.8
-5.5
-10.3
89
in € million, unless otherwise indicated
Revenue
Operational EBITDA
EBITDA
Number of employees
Full year
2013
-3.6
-16.3
-45.8
84
2012
0.4
-31.7
-31.5
75
Operational EBITDA in Q4 amounted to -1.8 million euro. The reported EBITDA was -11.8 million,
primarily due to costs for the financial restructuring. The number of employees at the end of the
quarter was 84 FTEs. For the full year, the operational EBITDA was -16.3 million euro divided in -12.5
million euro for holding and -3.8 million euro for other corporate staff functions. The reported EBITDA
for year was -45.8 million euro, strongly influenced by the financial restructuring charges of 22.3 million
euro.
Outlook
2014 is a year of further recovery where we enter the next phase with focus on organic growth,
enhancing our operational performance and recovery of Imtech’s financial health. Given the size of
this transition and the challenging market circumstances, no specific forecasts are being made
regarding 2014.
12
Risks and uncertainties
In our Annual Report 2013, dated 17 March 2014, we have described our risk management systems
and our major risk factors. Furthermore, we refer to the notes of the consolidated financial statements
2013, particularly note 2 and 29.
Gouda, 18 March 2014
Board of Management Royal Imtech N.V.
Financial calendar 2014
 15 May 2014: first quarter results
 22 May 2014: Annual General Meeting of shareholders
 26 August 2014: second quarter and half-year results
 18 November 2014: third quarter results
Press conference
Today at 9.00 hours (CET) Imtech will organize a press conference in the Novotel, Europaboulevard
10 in Amsterdam.
Analyst meeting
Today at 11.00 hours (CET) Imtech will organize a sell-side analyst meeting in the Novotel,
Europaboulevard 10 in Amsterdam. This meeting will be transmitted live via the internet
(www.imtech.com) and will afterwards also be available on the website as a replay.
More information
Media:
Dorien Wietsma
Director Corporate Communication & CSR
T: +31 182 54 35 53
E: dorien.wietsma@imtech.com
www.imtech.com
Analysts & investors:
Jeroen Leenaers
Director Investor Relations
T: +31 182 543 504
E: jeroen.leenaers@imtech.com
www.imtech.com
Imtech profile
Royal Imtech N.V. is a European technical services provider in the fields of electrical solutions, ICT and
mechanical solutions. With approximately 26,000 employees, Imtech is active attractive positions in the buildings
and industry markets in the Netherlands, Belgium, Luxembourg, Germany, Austria, Eastern Europe, Sweden,
Norway, Finland, the UK, Ireland and Spain, the European markets of ICT and Traffic as well as in the global
marine market. In total Imtech serves 24,000 customers. Imtech offers integrated and multidisciplinary total
solutions that lead to better business processes and more efficiency for customers and the customers they, in
their turn, serve. Imtech also offers solutions that contribute towards a sustainable society - for example, in the
areas of energy, the environment, water and traffic. Imtech shares are listed on the NYSE Euronext Amsterdam.
13
Appendix
1.
Condensed consolidated profit and loss account .......................................................................... 15
2.
Condensed consolidated balance sheet ........................................................................................ 16
3.
Condensed consolidated statement of changes in equity .............................................................. 17
4.
Condensed consolidated statement of cash flows ......................................................................... 18
5.
Operating segments ....................................................................................................................... 19
6.
Discontinued operations ................................................................................................................. 20
7.
Net finance result ........................................................................................................................... 21
8.
Financial glossary........................................................................................................................... 22
14
1. Condensed consolidated profit and loss account
in € million, unless otherwise indicated
Fourth quarter
*
2013
2012
Full year
2013
2012
*
Continuing operations
Revenue
Other income
1,296.1
2.9
1,485.0
7.3
4,936.3
8.6
5,336.3
18.6
Total revenue and other income
1,299.0
1,492.3
4,944.9
5,354.9
549.5
311.5
450.9
11.1
45.0
229.0
485.8
346.1
478.9
11.1
30.1
155.6
1,815.9
1,166.7
1,772.0
40.5
84.9
614.2
1,820.8
1,312.7
1,707.8
39.6
60.7
587.9
Total operating expenses
1,597.0
1,507.6
5,494.2
5,529.5
Result from operating activities
(298.0)
(15.3)
(549.3)
(174.6)
(23.5)
(18.7)
(105.0)
(62.0)
(2.1)
1.9
(5.7)
2.8
(323.6)
(32.1)
(660.0)
(233.8)
(1.1)
(7.6)
20.4
(1.8)
(324.7)
(39.7)
(639.6)
(235.6)
(45.3)
1.3
(57.0)
(4.9)
Result for the period (net result)
(370.0)
(38.4)
(696.6)
(240.5)
Attributable to:
Shareholders of Royal Imtech N.V.
Non-controlling interests
(371.1)
1.1
(40.6)
2.2
(701.2)
4.6
(247.2)
6.7
Result for the period (net result)
(370.0)
(38.4)
(696.6)
(240.5)
Basic earnings per share from continuing and
discontinued operation
From continuing operations (euro)
From discontinued operation (euro)
(2.15)
(0.19)
(1.26)
(0.03)
From result for the year
(2.34)
(1.29)
Diluted earnings per share from continuing and
discontinued operation
From continuing operations (euro)
From discontinued operation (euro)
(2.15)
(0.19)
(1.26)
(0.03)
From result for the year
(2.34)
(1.29)
(44.4)
(23.7)
Raw and auxiliary materials and trade goods
Work by third parties and other external expenses
Personnel expenses
Depreciation of property, plant and equipment
Amortisation and impairments
Other expenses
Net finance result
Share in results of associates, joint ventures
and other investments (net of tax)
Result before income tax
Income tax benefit / expense (-)
Result from continuing operations
Discontinued operation
Result from discontinued operation (net of tax)
Operational EBITDA
*
**
**
5.6
76.5
Restated (based on continuing operations and change in accounting policy, IAS 19 Employee benefits (2011)).
Non IFRS measure.
15
2. Condensed consolidated balance sheet
in € million
*
31 Dec 2013
31 Dec 2012
Property, plant and equipment
Goodwill
Other intangible assets
Investments in associated companies and joint ventures
Non-current receivables and other investments
Deferred tax assets
161.0
1,032.8
149.0
2.5
21.9
19.9
170.8
1,081.6
218.1
3.7
28.8
34.0
Total non-current assets
1,387.1
1,537.0
72.8
443.9
859.3
134.0
8.9
296.4
80.0
572.8
1,132.1
190.5
13.3
385.1
1,815.3
2,373.8
Inventories
Due from customers
Trade receivables
Other receivables
Income tax receivables
Cash and cash equivalents
Assets held for sale
79.9
27.6
Total current assets
1,895.2
2,401.4
Total assets
3,282.3
3,938.4
Equity attributable to shareholders of Royal Imtech N.V.
Non-controlling interests
304.6
8.7
514.8
9.7
Total equity
313.3
524.5
Loans and borrowings
Employee benefits
Provisions
Deferred tax liabilities
907.3
207.1
35.8
45.9
42.7
209.8
13.0
62.9
1,196.1
328.4
106.2
39.7
275.2
756.5
476.4
20.3
38.8
314.3
825.9
308.0
890.8
652.9
30.8
37.7
1,713.1
3,060.4
59.8
25.1
Total current liabilities
1,772.9
3,085.5
Total liabilities
2,969.0
3,413.9
Total equity and liabilities
3,282.3
3,938.4
745.0
773.0
Total non-current liabilities
Bank overdrafts
Loans and borrowings
Due to customers
Trade payables
Other payables
Income tax payables
Provisions
Liabilities held for sale
Net interest bearing debt
*
**
**
Restated (change in accounting policy, IAS 19 Employee benefits (2011)).
Non IFRS measure.
16
3. Condensed consolidated statement of changes in equity
Equity attributable to shareholders of Royal Imtech N.V.
Total
Noncontrolling
interests
Total
equity
95.8
816.8
6.3
823.1
22.7
-
22.7
-
22.7
(88.8)
555.9
95.8
839.5
6.3
845.8
(4.8)
-
23.5
(311.3)
(283.7)
6.5
(277.2)
-
-
-
-
(31.7)
(31.7)
(2.5)
(34.2)
-
-
-
(24.7)
-
-
(24.7)
-
(24.7)
-
-
-
-
10.5
-
-
10.5
-
10.5
-
-
-
-
1.9
3.9
-
5.8
-
5.8
-
-
-
-
-
(0.9)
-
(0.9)
(0.6)
(1.5)
75.2
208.6
7.3
(10.4)
(101.1)
582.4
(247.2)
514.8
9.7
524.5
75.2
208.6
7.3
(10.4)
(101.1)
582.4
(247.2)
514.8
9.7
524.5
-
-
(9.8)
6.2
-
(242.5)
(454.0)
(700.1)
4.2
(695.9)
Share
capital
Share
premium
reserve
Translation
reserve
Hedging
reserve
Reserve
for own
shares
74.2
209.6
(1.6)
(5.6)
(88.8)
533.2
-
-
-
-
-
74.2
209.6
(1.6)
(5.6)
-
-
8.9
1.0
(1.0)
Repurchase of own shares
-
Share options exercised
Share-based payments
in € million
As at 1 January 2012, as
previously reported
Impact of change in
accounting policy
Restated as at 1 January
2012
Total comprehensive
income for the year
(restated)
Dividends to shareholders
Acquisition of noncontrolling interests without
change in control
Restated as at 31 December
2012
Restated as at 1 January
2013
Total comprehensive
income for the year
UnapRetained
propriaearnings ted result
298.6
188.5
-
-
-
-
-
487.1
-
487.1
Dividends to shareholders
-
-
-
-
-
-
-
-
(5.2)
(5.2)
Repurchase of own shares
-
-
-
-
0.4
-
-
0.4
-
0.4
Share-based payments
Acquisition of noncontrolling interests without
change in control
-
-
-
-
-
2.4
-
2.4
-
2.4
-
-
-
-
-
-
-
-
-
-
373.8
397.1
(2.5)
(4.2)
(100.7)
342.3
(701.2)
304.6
8.7
313.3
Issue of shares
As at 31 December 2013
17
4. Condensed consolidated statement of cash flows
Fourth
quarter
2013
Full year
2013
(370.0)
(696.6)
11.5
46.7
66.0
18.0
2.1
0.3
40.8
(0.1)
0.8
41.1
92.1
78.0
105.0
5.7
(1.1)
40.8
2.4
(20.4)
(183.9)
(353.0)
5.4
179.2
30.6
70.6
31.4
7.7
67.9
241.7
(254.9)
20.5
133.3
(270.1)
1.8
14.5
(69.9)
12.5
Net cash flow from operating activities
149.6
(327.5)
Cash flow from investing activities
Proceeds from the sale of property, plant and equipment and other non-current assets
Interest received
Dividends received
Disposal of discontinued operation (net of cash disposed of)
Acquisition of subsidiaries (net of cash acquired)
Acquisition of property, plant and equipment
Acquisition of intangible assets
(Purchase) sale of associates, joint ventures and other investments
Issue less repayment of non-current receivables
3.3
1.7
1.8
9.6
(2.5)
(17.3)
(3.7)
(5.0)
13.0
17.9
2.0
1.8
9.6
(27.7)
(40.7)
(16.7)
(6.9)
2.9
0.9
(57.8)
Cash flow from financing activities
Proceeds from issue of share capital
Proceeds from loans and borrowings
Transaction costs related to loans and borrowings
Sale (repurchase) of own shares
Repayment of loans and borrowings
Payments of finance lease liabilities
Dividend paid
(0.5)
30.1
(51.0)
0.1
(0.8)
487.1
528.5
(51.0)
0.4
(449.7)
(2.0)
(5.2)
Net cash flow from financing activities
(22.1)
508.1
Net change in cash, cash equivalents and bank overdrafts
128.4
122.8
64.8
(3.0)
70.8
(3.4)
190.2
190.2
in € million
Cash flow from operating activities
Result for the period
Adjustments for:
Depreciation of property, plant and equipment
Amortisation and impairment of property, plant and equipment and intangible assets
Impairment loss on trade receivables
Net finance result
Share in results of associates, joint ventures and other investments
Result on disposal of non-current assets
Loss on sale of discontinued operation (net of tax)
Share-based payments
Income tax expense
Operating cash flow before changes in working capital and provisions
Change in inventories
Change in amounts due from/to customers
Change in trade and other receivables
Change in trade and other payables
Change in provisions and employee benefits
Cash flow from operating activities
Interest paid
Income tax paid
Net cash flow from investing activities
Cash, cash equivalents and bank overdrafts beginning of period
Effect of exchange rate fluctuations on cash, cash equivalents and bank overdrafts
Cash, cash equivalents and bank overdrafts at the end of the period
18
5. Operating segments
in € million, unless otherwise indicated
Fourth quarter
*
2013
2012
Full year
*
2013
2012
Revenue
Benelux
Germany & Eastern Europe
UK & Ireland
Nordic
Spain
ICT
Traffic & Infra
Marine
Group management
Revenue
186.2
185.8
174.7
237.6
34.6
260.8
111.1
111.8
(3.6)
1,299.0
155.1
436.3
200.9
227.0
31.0
207.3
105.9
128.6
0.2
1,492.3
682.8
968.6
738.0
891.6
126.9
740.1
384.6
415.9
(3.6)
4,944.9
766.1
1,372.1
750.6
804.9
156.1
667.0
346.0
491.7
0.4
5,354.9
Operational EBITDA
Benelux
Germany & Eastern Europe
UK & Ireland
Nordic
Spain
ICT
Traffic & Infra
Marine
Group management
Operational EBITDA
1.3
(32.8)
6.7
7.5
(0.5)
18.3
5.9
1.0
(1.8)
5.6
5.6
(4.5)
14.0
20.1
(0.4)
22.6
9.9
11.1
(1.9)
76.5
(17.6)
(107.7)
30.7
29.8
(2.3)
36.9
12.0
(9.9)
(16.3)
(44.4)
(19.1)
(131.2)
44.6
59.6
(0.8)
43.8
11.6
(0.5)
(31.7)
(23.7)
Operational EBITDA margin
Benelux
Germany & Eastern Europe
UK & Ireland
Nordic
Spain
ICT
Traffic & Infra
Marine
Operational EBITDA margin
0.7%
(17.7%)
3.8%
3.2%
(1.4%)
7.0%
5.3%
0.9%
0.4%
3.6%
(1.0%)
7.0%
8.9%
(1.3%)
10.9%
9.3%
8.6%
5.1%
(2.6%)
(11.1%)
4.2%
3.3%
(1.8%)
5.0%
3.1%
(2.4%)
(0.9%)
(2.5%)
(9.6%)
5.9%
7.4%
(0.5%)
6.6%
3.4%
(0.1%)
(0.4%)
Reported EBITDA
Benelux
Germany & Eastern Europe
UK & Ireland
Nordic
Spain
ICT
Traffic & Infra
Marine
Group management
Reported EBITDA
(8.8)
(239.7)
5.8
7.1
(0.8)
16.6
5.0
(15.3)
(11.8)
(241.9)
(26.5)
(4.5)
13.6
20.9
(4.9)
22.6
4.1
2.3
(1.7)
25.9
(63.4)
(327.7)
28.2
25.0
(3.0)
32.7
(8.4)
(61.5)
(45.8)
(423.9)
(51.2)
(131.2)
44.2
60.4
(5.3)
43.8
5.8
(9.3)
(31.5)
(74.3)
*
Restated (based on continuing operations and change in accounting policy, IAS 19 Employee benefits (2011)).
19
Operating segments (continuing operations)
(continued)
Order intake
Order book
Employees
(FTE)
in € million, unless otherwise indicated
Fourth
quarter 2013
Full year
2013
31 Dec 2013
31 Dec 2013
125.9
161.6
207.0
218.6
59.8
283.6
75.6
71.8
-
625.5
800.6
673.7
888.1
122.6
777.6
361.5
476.2
-
845.5
1,521.2
526.4
822.1
190.8
218.8
427.3
814.5
-
4,120
4,740
3,396
5,406
1,560
2,380
2,072
2,410
84
1,203.9
4,725.8
5,366.6
26,168
Benelux
Germany & Eastern Europe
UK & Ireland
Nordic
Spain
ICT
Traffic & Infra
Marine
Group management
Total
6. Discontinued operations
On 17 January 2014, we announced the conclusion of the strategic review of the Turkish business AE
Arma-Elekropanç (Arma). It was concluded that the profile of Arma is not in line with the Group’s
revised strategic framework and to sell our 80% shareholding to the previous owners and
management of Arma. The operations in Turkey were included in the reporting segment Spain &
Turkey in the condensed consolidated interim financial statements 30 June 2013 and were not
previously reported as a held-for-sale or discontinued operations. The comparative consolidated
statement of profit and loss account and consolidated statement of comprehensive income have been
restated to show the discontinued operations separately from continuing operations.
in € million
Fourth quarter
2013
2012
2013
Full year
2012
Revenue
Expenses
Result before income tax
Income tax
Results from operation activities (net of tax)
Loss on sale of discontinued operation
28.9
34.6
(5.7)
1.2
(4.5)
(40.8)
34.7
34.6
0.1
1.2
1.3
-
124.3
141.4
(17.1)
0.9
(16.2)
(40.8)
78.1
84.1
(6.0)
1.1
(4.9)
-
Result from discontinued operation (net of tax)
(45.3)
1.3
(57.0)
(4.9)
20
7. Net finance result
in € million
Interest income
Interest expense on financial liabilities measured at
amortised cost
Net change in fair value of cash flow hedges transferred
from equity
Fourth quarter
*
2013
2012
2013
Full year
*
2012
1.4
1.6
1.4
1.6
(18.9)
(10.2)
(67.5)
(38.8)
(1.3)
(0.9)
(1.4)
(5.2)
(18.8)
(9.5)
(67.5)
(42.4)
Interest income on plan assets
Interest cost on defined benefit obligation
0.9
(2.5)
1.7
(3.5)
2.6
(9.5)
8.1
(15.1)
Net employee benefits financing component
(1.6)
(1.8)
(6.9)
(7.0)
Change in fair value of contingent consideration
Other finance income
Net currency exchange loss
Other finance expenses
Other
4.4
0.7
1.2
(9.4)
(3.1)
2.4
3.6
(0.7)
(12.7)
(7.4)
14.3
1.9
(4.4)
(42.4)
(30.6)
6.1
4.2
(2.9)
(20.0)
(12.6)
(23.5)
(18.7)
(105.0)
(62.0)
Net interest expense
Net finance result
*
Restated (based on continuing operations and change in accounting policy, IAS 19 Employee benefits (2011)).
21
8. Financial glossary
Adjusted earnings per share
Adjusted net result divided by the weighted average number of ordinary shares outstanding during the
period.
Adjusted net result
Net result for shareholders before amortisation and impairment on intangible assets.
Basic earnings per share
Net result for shareholders divided by the weighted average number of ordinary shares outstanding
during the period.
Capital employed
Non-current assets plus working capital plus assets held for sale.
Capital expenditure (Capex)
Sum of expenditure on property, plant, and equipment, and other intangible assets (e.g. software and
technology). Part of cash flow from investing activities.
Cash conversion
Operating cash flow divided by EBITA.
Diluted earnings per share
Net result for shareholders divided by the weighted average number of ordinary shares outstanding
during the period, diluted. Ordinary shares with dilutive potential arise from share-based payment
arrangements.
EBIT
See operating result.
EBITA
EBITA is operating result plus amortisation and impairment on intangible assets.
EBITDA
EBITDA is EBITA plus depreciation on property, plant and equipment.
EBITDA margin
EBITDA as a percentage of total revenue.
EBITDA growth
Growth of EBITDA over a period with respect to the previous comparable period (including the impact
of organic growth, acquisitions and divestments of operations, discontinued operations and, where
applicable, currency effects).
Interest coverage
Calculated as the ratio between operational EBIT and net interest result (including net change in fair
value of cash flow hedges transferred from equity). In the loan documentation, this ratio will be
included as covenant from 31 December 2016 onwards.
Leverage ratio
Net interest-bearing debt plus restricted cash divided by operational EBITDA. In the loan
documentation, this ratio will be included as covenant from 31 December 2016 onwards.
22
Net interest-bearing debt
Sum of loans, borrowings and bank overdrafts minus derivatives at fair value, payment in kind reserve,
contingent considerations (deferred acquisition payments) and cash and cash equivalents.
Net interest result
Interest received or receivable from third parties (interest income) less interest paid or due to third
parties (interest expense).
Net result
Result for the period
Net result for shareholders
Result for the period attributable to the holders of ordinary shares of Royal Imtech N.V.
Non-operational items
Non-operational items relate to expenses arising that, given their size or nature, are clearly distinct
from the ordinary activities of Imtech, such as restructuring costs, acquisition expenses, some
refinancing costs, write offs legacy items, and results from divestments of operations.
Operating result
Result from operating activities.
Operating cash flow
Operational EBITDA plus or minus operational movements in working capital minus capex and plus or
minus changes to operational provisions and accruals.
Operational EBIT
EBIT adjusted for non-operational items in EBIT.
Operational EBITDA
EBITDA adjusted for non-operational items in EBITDA.
Operational EBITDA margin
Operational EBITDA as a percentage of total revenue.
Solvency
Total equity as a percentage of the balance sheet total (total non-current assets plus total current
assets).
Working capital
Current assets, excluding cash and cash equivalents and assets held for sale, less current liabilities,
excluding bank overdrafts, loans and borrowings, provisions and liabilities held for sale.
23