Annual report 2014
Index

Financial Performance

annual report 2014
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MAREL’ S FINANCIAL RESULTS 

2014 was a year of progress and transformation for Marel. We managed to be at the customer, for the customer, while refocusing our operations.

Linda Jonsdottir, CFO

Good operational improvement with solid cash flow

“We are satisfied with our performance in 2014. Our revenues grew by 8% and at the same time adjusted EBIT was €49 million and in line with management guidance. Cash flow was solid and the order book grew around 30%. Although this is good improvement from the previous year, there is still room to get even better. We now find ourselves in a financially strong position to continue our journey towards becoming a Simpler, Smarter, Faster company that can return increased value to all stakeholders going forward.”

Linda Jonsdottir, CFO

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Results20142013201220112010
Revenue 712,554 661,536 713,960 668,357 600,421
Gross profit 247,710 233,644 249,226 247,289 227,074
Result before depreciation (EBITDA) 66,698 69,444 85,963 87,006 82,177
Result from operations (EBIT) 29,178 42,909 61,081 62,166 57,334
Net result for the period 11,731 20,620 35,609 34,463 13,626
Order Book20142013201220112010
Orders Received* 754,996 668,584 650,493 702,419 638,453
Order Book 174,880 132,438 125,390 196,218 162,155

* Includes service revenues.

Cash flow statement20142013201220112010
Cash generated from operating activities, before interest & tax 102,201 80,320 65,569 63,716 114,881
Net cash from (to) operating activities  85,601 64,552 49,095 43,183 78,986
Investing activities (28,395) (32,418) (37,294) (28,690) (16,757)
Financing activities (55,623) (26,461) (26,486) (47,120) (67,453)
Financial position20142013201220112010
Total assets 851,440 839,568 865,128 877,818 877,623
Working capital 25,650  49,041 59,076 52,487 78,114
Equity 427,498  419,339 403,748 373,471 343,269
Net debt 174,347  217,130 243,242 250,489 256,741
Various figures in proportion to sales20142013201220112010
Gross profit 34.8%  35.3% 34.9% 37.0% 37.8%
Selling and marketing expenses 14.5% 14.4% 12.6% 11.9% 11.8%
Research and development expenses 7.8% 6.7% 5.8% 6.0% 6.1%
Administrative expenses 8.4%  7.8% 8.0% 8.0% 9.1%
Wages and benefits 37.6%  37.9% 33.9% 31.4% 31.7%
Result before depreciation (EBITDA) 9.4%  10.5% 12.0% 13.0% 13.7%
Depreciation/amortisation 5.3%  4.0% 3.5% 3.7% 4.1%
Result from operations (EBIT) 4.1%  6.5% 8.6% 9.3% 9.5%
Net result for the period 1.6%  3.1% 5.0% 5.2% 2.3%
Other key ratios20142013201220112010
Current ratio 1.1 1.3 1.3 1.2 1.4
Quick ratio 0.7  0.8 0.8 0.8 1.0
Equity ratio 50.2%  49.9% 46.7% 42.5% 39.1%
Return on owners’ equity 2.8%  5.0% 9.2% 9.6% 4.1%
Return on total assets 1.4% 2.4% 4.1% 3.9% 1.5%
Key figures from Marel’s core operations, normalised20142013201220112010
Revenue 712,554 661,536 713,960 668,357 582,130
Result from operations (EBIT) 48,778  42,909 61,081 73,152 64,144
EBIT as a % of sales 6.8% 6.5% 8.6% 10.9% 11.0%
Result before depreciation and amortisation (EBITDA) 83,666 69,444 85,963 97,992 88,060
EBITDA as a % of sales 11.7% 10.5% 12.0% 14.7% 15.1%
Leverage 2.08 3.13 2.83 2.56 2.92

Glossary of terms

Net debt

Interest bearing borrowings (current & non-current) - Cash & cash equivalents

Net cash

Cash and cash equivalents

Full time equivalents

Number of personnel, where part time employees are counted for the percentage of a full time job

EBITDA

Earnings before interest, tax, depreciation and amortization

Current ratio

Current assets / Current liabilities

Quick ratio

(Current assets - Inventories) / Current liabilities

Equity ratio

Total equity / (Total equity + Total Liabilities)

Return on owners' equity

Annualized result for the period / Average of total equity ([beginning balance + ending balance for the period] / 2)

Return on total assets

Annualized result for the period / Average of total assets ([beginning balance + ending balance fo the period] / 2)

Leverage

Net interest bearing debt/ Last twelve months EBITDA