AALBERTS INDUSTR : Aalberts Industries realises a revenue of more than EUR 2 billion and a 5% higher operating profit (EBITA)

• Revenue +5% to EUR 2,025 million

• Operating profit (EBITA) +5% to EUR 219.1 million

• Net profit before amortisation +4% to EUR 152.1 million

• Earnings per share before amortisation +3% to EUR 1.40

• Cash flow from operations +9% to EUR 271.4 million

• Capital expenditure +23% to EUR 103.6 million

• Industrial Services: revenue +3% and good profitability maintained

• Flow Control: revenue +5% and operating profit (EBITA) +8%

Key figures

Wim Pelsma, CEO: "In 2012, we realised record revenue of more than EUR 2 billion, an increase of 5% compared to 2011. The operating profit (EBITA) also increased by 5% to EUR 219.1 million with an EBITA margin of 10.8%. Net profit amounted to EUR 152.1 million, an increase of 4%. This meant the earnings per share increased by 3% to EUR 1.40. A large number of new projects was commenced during the year under review and capital expenditure increased by 23% to EUR 103.6 million. The balance sheet ratios could again be improved.

The good progress was the result of our continued focus on strengthening our marketing and sales approach, the strong improvement of our product and technology portfolio, and the continued development of certain market segments. At the same time, we have increased the speed of innovation and product development, as well as the speed of the implementation of projects to increase the production efficiency. The mutual cooperation also improved.

At Industrial Services, revenue increased by 3% to EUR 595 million, and the good profitability was maintained with an operating profit (EBITA) of EUR 79.6 million and an EBITA margin of 13.4%. These results were achieved thanks to a strong increase in product and technology development, including a lot of associated engineering activities for new projects. We also offer a combination of technologies to various major clients on the basis of key account management, with increasing success.

Despite challenging market conditions, revenue of Flow Control increased by 5% to EUR 1,430 million. The operating profit (EBITA) increased by 8% to EUR 139.5 million and the EBITA margin amounted to 9.8%. This progress has been made thanks to the increasing marketing and sales focus on rapidly growing product lines and the intensification of the sales of complete specified systems. We have also further expanded our positions in the market segments of industry, district energy, and especially oil & gas.

The company is well equipped for continued profitable growth. There are many strategic, marketing and sales initiatives in progress, and we continue to pay significant attention to technology and product development, and continuous improvement of our production efficiency and operating margin. In addition, in 2013 there will be continued investment in more efficient production, sales force, engineering capacity and supplementary acquisitions that contribute to strengthening our market positions. Against this background, we anticipate that 2013 will develop as a good year for the company, with continued profitable growth.

We look back on a successful 2012. On behalf of the Management Board, I would like to sincerely thank all of our employees, customers and partners for this achievement. I am fully confident that we will also be able to present ourselves during the coming year as an innovative, good profitable, market-driven company that is continuing to improve its performance."

Added-value The added-value (revenue minus raw materials and work subcontracted) amounted to EUR 1,197.1 million, or 59.1% of revenue (2011: EUR 1,145.9 million, or 59.1% of revenue).

Operating profit The operating profit before depreciation and amortisation (EBITDA) increased by 6% to EUR 296.1 million (2011: EUR 279.4 million). The EBITDA margin amounted to 14.6% of revenue (2011:14.4%) at Industrial Services 18.6% (2011: 18.6%), and at Flow Control 13.0% (2011: 12.6%).

Net finance cost Net finance cost amounted to EUR 20.2 million (2011: EUR 26.6 million); net interest cost was EUR 20.5 million (2011: EUR 23.0 million). This decrease was thanks to the average lower interest rates and lower surcharges of the banks because of the improved leverage ratio.

Tax on profits The total tax on profits was EUR 45.9 million (2011: EUR 36.3 million); the effective tax rate was 25.2% (2011: 21.6%). The relatively low tax rate in 2011 was particularly the result of (non- recurring) contributions from tax credits from previous years, the use of offsetting for losses, and decreasing European tax rates.

Net profit Net profit before amortisation amounted to EUR 152.1 million (2011: EUR 145.8 million), an increase of 4%. Earnings per share before amortisation were EUR 1.40 (2011: EUR 1.36), an increase of 3%.

Dividend proposal The number of shares issued at the end of 2012 was 109.4 million (at the end of 2011: 108.1 million). The increase was the result of the stock dividend for 2011. It will be proposed to the General Meeting that the dividend for 2012 be set at EUR 0.35 in cash per share, or in shares, according to the shareholder's preference. This means that Aalberts Industries is continuing its policy to pay approximately 25% of the realised net profit before amortisation as dividend. This implies an increase of 3% compared to 2011 (EUR 0.34). The stock dividend will be fixed on 17 May 2013 after close of trading on the basis of the volume-weighted average share price of all traded shares in Aalberts Industries N.V. as at 13, 14, 15, 16, and 17 May 2013, in such a way that the value of the dividend in shares is virtually equivalent to the value of the cash dividend.

Capital expenditure and cash flow Capital expenditure amounted to EUR 103.6 million (2011: EUR 84.3 million), of which EUR 56.5 million was at Industrial Services and EUR 47.1 million at Flow Control. At the end of 2012, net working capital amounted to EUR 370.0 million, 18.3% of revenue (at the end of 2011: EUR 345.4 million, or 17.3%).

The cash flow from operations increased by 9% to EUR 271.4 million (2011: EUR 250.0 million). The cash flow (net profit plus depreciation and amortisation) increased by 6% to EUR 229.1 million (2011:EUR 216.3 million). This clearly indicates the strong cash flow generating ability of Aalberts Industries.

Balance sheet ratios At the end of 2012, total equity amounted to EUR 980.0 million (2011: EUR 858.5 million), 50.1% of the balance sheet total (2011: 44.4%). Solid balance sheet ratios were thus maintained, which is also evidenced by the development of the three ratios important for the company: the leverage ratio improved from 2.0 to 1.8; the interest cover ratio went from 12.9 to 14.4, and the gearing was 0.6 compared to 0.7 in 2011.

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