Marel Conference

Outlook

Marel is targeting 12% average annual revenue growth from 2017-2026 through market penetration and innovation, complemented by strategic partnerships and acquisitions. Marel enjoys a balanced exposure to global economies and local markets through its global reach, innovative product portfolio and diversified business mix.

Marel is committed to its financial targets

Marel is targeting 12% average annual revenue growth from 2017-2026 through market penetration and innovation, complemented by strategic partnerships and acquisitions.

Our strategic mid-term targets are to achieve gross profit around 40%, SG&A of around 18% and Innovation at the 6% strategic level by year-end 2023.

Market conditions have been challenging due to geopolitical uncertainty and the current COVID-19 pandemic. Marel enjoys a balanced exposure to global economies and local markets through its global reach, innovative product portfolio and diversified business mix. At the moment it is not known what the full economic impact of COVID-19 will have on Marel. Marel is committed to achieve its mid- and long term growth targets.

Financial targets

  • Marel’s management expects 4-6% average annual market growth in the long term.
  • Marel aims to grow organically faster than the market, driven by innovation and growing market penetration.
  • Maintaining solid operational performance and strong cash flow is expected to support 5-7% revenues growth on average by acquisition.
  • Marel’s management expects basic EPS to grow faster than revenues.

Growth is not expected to be linear but based on opportunities and economic fluctuations. Operational results may vary from quarter to quarter due to general economic developments, fluctuations in orders received and timing of deliveries of larger systems.

In the period 2017-2026, Marel is targeting 12% average annual revenue growth through market penetration and innovation, complemented by strategic partnerships and acquisitions.

Financial targets

Marel is targeting 12% average annual revenue growth from 2017-2026 through market penetration and innovation, complemented by strategic partnerships and acquisitions.

Target

Description

FY19

FY18

FY17

FY16

12% average annual revenue growth in 2017-2026*

Up to 2026, management forecasts 4-6% average annual market growth. Marel aims to grow organically faster than the market, driven by innovation and growing market penetration. Solid operational performance and strong cash flow is expected to support 5-7% revenue growth on average by acquisitions.

7.2%

15.4%

5.6%

20.1%

* Growth is not expected to be linear but based on opportunities and economic fluctuations. Operational results may vary from quarter to quarter due to general economic developments, fluctuations in orders received and timing of deliveries of larger systems.

Target

Description

FY19

FY18

FY17

FY16

~6% of revenues

To support new product development and ensure continued competitiveness of existing product offering.

6.4%

6.2%

5.6%

6.5%

Target

Description

FY19

FY18

FY17

FY16

EPS to grow faster than revenues

Marel’s management expects Earnings per share to grow faster than revenues

15.3 eurocents

17.95 eurocents

13.70 eurocents

10.59 eurocents

Target

Description

FY19

FY18

FY17

FY16

Net debt/ EBITDA x2-3

The leverage ratio is estimated to be in line with the targeted capital structure of the company.

x0.4

x2.0

x1.9

x2.3

Target

Description

FY19

FY18

FY17

FY16

20-40% of net profit

Dividend or share buyback targeted at 20-40% of net profits. Excess capital used to stimulate growth and value creation, as well as payment of dividends / funding share buybacks.

40%

30%

30%

20%

Disclaimer

This list is provided for informational purposes only and is subject to change. Any opinions, estimates or forecasts regarding Marel’s performance and/or outlook made by these analysts and their respective brokerage firms are not opinions, forecasts or predictions of Marel or its management. By providing the list, Marel does not imply its endorsement of or concurrence with such information, conclusions or recommendations. Marel will not distribute analyst reports. Copies of reports should be obtained directly from the analysts or their brokerage firms.

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