ANNUAL REPORT 2017 GB STEEL GROUP
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Content Preface
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The organization
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Our vision on trends and market developments
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Financial
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Facts
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Outlook
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Photography Dirk Jansen
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ANNUAL REPORT 2017 GB STEEL GROUP
Design
puur!fct
Preface Our world of tomorrow “The future interests me far more than the past, as I intend living in it.” One of Einstein’s quotes that appeals to me particularly. One that doesn’t condemn looking back itself. If that were the case, most of this annual report would be superfluous. I read positivism in his statement and an enormous involvement in what is yet to come. The world of tomorrow, a destination. Whoever watches World Cup football, will see the Wonderful performance of teams fighting for the World Cup. That goal drives players to extreme efforts. It is the same in business. Therefore, it was my personal goal for 2017 to have the team double-check what we wanted to achieve in 2020. Get everyone on the same page, the team at its best. In this report you can read all about it. But, first a look back after all. Because three years ago, we set our goals this way too, and not without success. We are working smarter and, above all, smarter together. “You may be able to go faster on your own, but together, you can do more”, is a quote of one of our board members that really speaks to me. Together we accomplish more, if we join forces within GB Steel Group in the field of IT, production automation, the administrative organization, marketing and HR. And if we allocate the work well. In the coming years we will continue to work on an organization in which we can take full advantage of this synergy. For example, in the field of HR. Where we want to take advantage of existing talent and attract new talent. Marketing Communication fortunately has more opportunities to tell our story and is actively working on our appeal to both motivated employees and new domestic and foreign clients.
We are at the forefront when it comes to the use of the possibilities in the field of digitization. Colleagues in the market even regularly enquire after our method. Robotics are high on the agenda in the factories. Not to produce more of the same, because precisely the automation of single piece production is our challenge. Promoting cooperation and improving information transfer using smart software have our attention as well. Digitization and automation are our answer to the question of how to meet a growing customer demand on time, even if after the order has been taken into production, the customer demands changes. Custom-made orders are hard to specify in advance, thát we understand all too well. We not only aim for a nice return, but also for a better world. We want to give form and content to our world of tomorrow. The world of your and my children within a family business such as GB Steel Group, that is always a topical issue. Our world of tomorrow. We gladly contribute to it from conviction. First and foremost by sensibly taking advantage of opportunities, focused on the longterm. There is demand, and we dare to invest once again. Let us work together to build a sustainable future!
Bob Soetekouw Managing Director
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The organization GB Steel Group unites five divisions from various market segments. Within these divisions, we share not only knowledge and expertise, we combine supporting services at corporate level as well. That is how we work on the most efficient and smart solutions. Together, we get it done. A promise is a promise: #wemakesteelwork.
Managing Director
Production Automation
Steel construction, commercial-industrial
Kampstaal
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ANNUAL REPORT 2017 GB STEEL GROUP
Financial management
Communication
Roofing and cladding, commercial-industrial
Kamplacon
HRM
Steel construction, infra-marine
Nauta Heeg
By combining supporting services at GB Steel Group, we don’t need to reinvent the wheel five times over. And we also share knowledge and experience between the five divisions. Together we are stronger!
Facility management
Tippers, containers and belt unloaders
Vossebelt
IT
Machine construction
Hordal
GB Steel Group Offers services in the field of HR, marketing, finance, IT, facility management and production automation. Shares knowledge and expertise with the five specialized divisions.
Kampstaal Kampstaal in Emmeloord and Meppel realizes complex steel constructions for the national and international commercial construction and industry.
Kamplacon Kamplacon in Emmeloord and Ootmarsum is at home in sustainable roof and faรงade constructions, asbestos remediation and solar panels for residential construction, industry and infrastructure.
The experienced construction teams of Kampstaal and Kamplacon work on an upgrade and extension of parking garage P3 at Schiphol Airport
Nauta Heeg Nauta in Heeg distinguishes itself in the infrastructure with heavy constructions for inland waterways, ports and industry.
Vossebelt Vossebelt in Geesbrug builds tippers, belt unloaders, containers and more for the transport sector, industry and municipalities.
Hordal Hordal in Zwolle is a specialized machine factory with tailor-made solutions for the food, medical, agricultural and industrial sector.
The convenience of steel construction, roof and wall panelling and roofing in one.
Vossebelt not only designs, we also produce it and construct it on a chassis.
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Nauta Heeg: Strong in heavy constructions for ports and inland waters. In 2017 our work included new mooring facilities for Stena Line in the port of Rotterdam. The picture shows a part of this construction. The whole construction was 220 meters long and weighed 620 MT.
DRONEFLIGHT
NO DUTCH NO GLORY
At Vossebelt we make tippers, belt unloaders and more in one size: yours.
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ANNUAL REPORT 2017 GB STEEL GROUP
By supplying prefabricated faรงade systems in cassettes to the construction site, we shorten the construction time for data centres and we simplify the construction logistics.
Our vision on trends and market developments
NO DUTCH NO GLORY
The future requires adaptability. Smarter connections of construction elements. To quickly change a logistics building in a data centre without changing building materials. To go from low-rise to highrise buildings in city centers. To generate parking space exactly where many people come together, by moving parking garages. And to widen and maintain the road leading there. It can be done smarter, with modular support structures and façades with walls and doors in one. And with asphalt belt unloaders for the major works in urban areas and robust hotboxes for the smaller but necessary repair jobs without having to reload at the asphalt plant in between: #wemakesteelwork. ‘Do more together’, we agreed in 2014 for the next three years. In 2017, we place a new dot on the horizon. In 2020, we want a seat at the table earlier on in the construction process. Our knowledge of the use of steel comes into its own if we can work with the chain partners on the design from the very beginning. This results in better integrated solutions with less failure cost, whether it concerns parking garages, data centres or belt unloaders. Our knowledge can contribute to the fast increase of the number of parking spaces by
constructing modular multi-storey car parks, to the shortening of the building process of a data centre, to the safer unloading of asphalt under bridges and matrix signs, or to the creation of better collision protection systems for bridges and locks. Steel lends itself perfectly as a building block in the 21st century. We can prefabricate it in our factories for a faster erection on the construction site. We can assemble, disassemble and rebuild elsewhere and
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‘Logic will get you from A to B. Imagination will take you everywhere.’ Einstein
promote circularity. And we can realize large spans, so that buildings can be divided more flexibly, even when the function of the building changes. The possibilities are numerous, as long as we design together. As an organization, we have worked hard and achieved a great deal in recent years. Together, as agreed. However, the world is changing so rapidly that we reassess our plans every three years and set new goals. In different teams, we have successfully let ourselves be challenged to think about 2020 outside the usual framework. In the knowledge that ‘if you keep doing what you always did, you will get increasingly less than what you always got’.
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GB Steel Group’s development has not gone unnoticed. Foreign clients of huge data centres know where to find us, and confirm their confidence by placing follow-up orders with us as well. It makes us proud. Because it means that we can distinguish ourselves, and that our safety and quality systems are in good order. We would like to work together to solve the main construction problems. Whether it’s prefab building to save time, or the reuse of existing structures to build faster and more sustainably. The applications of steel are endless if you have the knowledge and expertise.
Growth pillars
Mission statement
A successful course attracts clients. To service the growing number of clients, you will also need to grow. We can continue to grow if we do it together, efficiently, ensure a strong and committed team, become more durable and continue to innovate. Together, by sharing knowledge and skills within the group, and by really working on BIM, lean, and supply chain integration. Efficient by working smarter, using available technology, automation and robotics. Committed by success and proud to really share with each other. And more sustainable in permanently impacting the environment less by producing more energy-efficiently and contributing to circularity. We will also invest in innovation, new processes and products, so that we can continue to deliver smarter custom-made construction.
Together, our divisions deliver more than just economy of scale. As GB Steel Group, we deliver high quality solutions in steel for the construction, transport sector and machine industry. Together we are stronger. We treat each other and our environment with respect, and do what we promise: provide the highest quality, on time and within budget. We love challenges, and enjoy providing the solutions. Of course, we also aim for a sustainable future. We are continually investing in our people, machines and processes, and protect the environment. That is how we come up with smart solutions that help our clients. In short: #wemakesteelwork.
ANNUAL REPORT 2017 GB STEEL GROUP
The modular parking garages that we develop with our partners in the chain, we assemble as a construction set. That makes them easy to dismantle and reconstruct elsewhere as well.
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Financial Synergy GB Steel Group has increasingly more synergy in various areas. All companies make use of a number of shared services at central level, again to avoid duplication of effort. We meet QHSE challenges together, in a working group at group level. For the past three years, Kampstaal and Beijer have collaborated intensively under one management support office and management. In mid-April 2018, the name ‘Construction Company Beijer B.V.’ was changed to ‘Kampstaal Meppel’. Kamplacon has collaborated more with Kampstaal as well. By working together to provide a complete product, both divisions make optimal use of the opportunity to save our clients a lot of work by delivering both the load-bearing structure and the indoor stairs and landings, façades, roofs and solar roofs. In terms of organization, both companies now fall under the same management. And whether it is steel work for Vossebelt. Nauta Heeg or Kampstaal, we divide the work increasingly smarter to deliver on time and stay within budget.
Turnover and profit on equity capital 45%
60
40%
50 35% 30%
40
25% 30 20% 15%
20
10% 10 5% 0%
0
2014
2015
2016
2017
2018 (prognosis)
Turnover in millions of euros
Return on equity
Results The year 2017 has ended above expectations for GB Steel Group, in terms of both sales and results. Clients entrust new and follow-up assignments to us, thanks to our long-term investment in quality. In addition, most of the markets are growing. Suppliers receive a healthy amount of work, which leads to higher prices.
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ANNUAL REPORT 2017 GB STEEL GROUP
CNC and machine construction
Infra-marine steel construction
Construction and recycling transport
Construction and recycling transport Return on equity
Investments 2016, 2017 and 2018 Kampstaal saw its sales rise by more than 10%. The margin on these sales increased by 1.5%. At Kamplacon, the turnover and the result decreased compared to a year ago. If we compare both with previous years, we are satisfied with the results of 2017. Kampstaal and Kamplacon worked, jointly or on their own, on data centres and car parks such as the transferium in ‘s Hertogenbosch.
Buildings and sites
Machines and installations
Vossebelt had a huge turnover growth of 25% in 2017. In 2016, the turnover of the company rose by as much as 45% as well. The growth is accompanied by challenges in the field of efficiency and delivery time. As a result, 2017 ended below expectations. It takes more time to make growth profitable, which we consider an opportunity: work smarter and more efficiently. We are proud that increasing numbers of big players choose for our custom tippers or the new Vossebelt belt unloader that we redesigned in 2017.
Inventory
Transport material
Human resources
Software
0 2016 2017
250
500
750
1.000
1.250
1.500
2.000
The Infrastructure division grew as well. Nauta Heeg realizes increasingly larger infrastructure projects as a specialist in heavy hydraulic steel work for ports and inland waters. Nauta Heeg and Kampstaal also see cross-sell opportunities, because clients often have both an infra and a commercial construction division.
x â‚Ź 1.000
Prognosis 2018
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-29%
+40%
increase in turnover
2014-2017
Solvency 70% 60%
CO2 goal is 37% less CO2 emissions in 2020 compared to 2015. At the end of 2017 we have already saved 29%. The saving is equivalent to the energy consumption of 60 households.
50% 40% 30%
#wemakesteelwork
20%
€
10% 0%
Invest in:
2014
2015
2016
2017
pleasure and pride
Quality systems: ISO14001, ISO9001, VCA, CE EN 1090 to EXC-4
2018 (prognosis)
• machines / robotics • digitization • our staff • solar panels
Current ratio 1,8 1,6 1,4 1,2 1,0
Steel as a building block for
modular building (ideal in densely populated areas)
Steel as a suitable building
circularity
block for (whatever has been assembled, can be disassembled as well for reassembly elsewhere)
0,8 0,6 0,4 0,2 0,0
2014
2015
2016
2017
2018 (prognosis)
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ANNUAL REPORT 2017 GB STEEL GROUP
Debt / EBITDA
Return on equity
3,0
30%
2,5
25%
2,0
20%
1,5
15%
1,0
10%
0,5
5%
0
0%
2014
2015
2016
2017
2018
2014
(prognosis)
With a yield of almost 20% of the equity, we are very satisfied.
2015
2016
2017
2018 (prognosis)
Financing The balance sheet total was again further increased by investments in machinery and buildings. The stock and work-in-progress have increased, too. There is no new debt and equity. The amortisation charge for the borrowed capital remained the same. The solvency increased from 57.4% to 62%. The liquidity position improved again, through increased operational results and despite high investments. Incidental favourable interest income also contributed to the overall result.
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ANNUAL REPORT 2017 GB STEEL GROUP
Outlook In 2018, we want to at least equal the result of 2017. Although we started the year with a well-filled order book, there are enough challenges. Filling of vacancies for example, coping with longer lead times of suppliers and rising prices as a result of the growing economy, which can also lead to risks for our clients. 2018 is also the first year of Vision 2020, our three-year strategy. We have the ambition to run in the top of the manufacturing industry. To achieve that, we want to grow by working on five pillars: co-creation, efficiency, the team, sustainability and innovation.
thorough programme to focus on the development of skills. Because even in case of robotics, our people will continue to be the ones that will help the clients with their challenges: #wemakesteelwork. That sustainability is also high on the agenda, is shown by the Lloyd’s certified ISO 4001 system. We made Nauta energy neutral in one go in 2016, and in 2017, we placed over 2200 solar panels on the production site of Kampstaal Emmeloord. In 2018, we will explore the possibilities of solar energy at Kamplacon and Vossebelt. It is our modest contribution to the necessary balance of ecology and economy. We will renovate the office of Nauta Heeg as well, to allow its look and the workplace to match the quality that we deliver.
Collaboration goes beyond the company boundaries. We want to work closer together with our chain partners, because an integral solution requires a joint approach. Automation and robotics, in addition to BIM and lean, must provide more efficiency and less failure costs. Because if more customers entrust their work to you and you want to continue to work on time, safely and without failure costs, you will want to work with all your partners on ‘First Time Right’.
We also want to further strengthen our market position and to continue to benefit from the opportunities the market offers. Kampstaal and Kamplacon see opportunities in a closer cooperation, to be able to offer customers a complete package: from supporting structures, staircases, roofs and façades to solar roofs and more. At Nauta Heeg we see a more constant occupancy rate as a point of interest. And at Vossebelt, the improvement of the efficiency is at the top of the list, to be able to deliver the substantial order portfolio of new belt unloaders and asphalt and trailer tippers on time and to achieve a higher return on investment in 2018.
We will continue to invest in our team. We are proud of our professionals and their expertise. They deserve personal attention to allow them to apply their talents and to develop those talents. We are working on a
The market is on the move. And as you can see, we are not sitting around doing nothing. Together we work actively towards sustainable results in 2018 and beyond.
co-creation
efficiency
the team
sustainability
innovation
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GB Steel Group B.V. Distributieweg 10 8304 BJ Emmeloord Postbus 1009 8300 BA Emmeloord The Netherlands T +31 (0) 527 69 80 20 E info@gbsteelgroup.com W www.gbsteelgroup.com
ANNUAL REPORT 2017 GB STEEL GROUP
#wemakesteelwork