annual report 2016 GB Steel Group
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Photography Dirk Jansen Design
Contents
puur!fct
Printing Naam
Foreword
3
The organisation
4
Mission/vision
7
Financial
8
Facts
11
Looking ahead
14
annual report 2016 GB Steel Group
Foreword How are you doing? a greeting often used when business people meet. the transparency of the response depends on the situation. It could be that the economic crisis has led to less transparency. that we actually did not tell each other then how bad things actually were. For were the truth told, the supplier might have held back on deliveries. and a client might have lost confidence in the completion of an assignment. today, in 2017, some things have changed. We have finally left the economic crisis behind us. and it is nice, of course, to say that you are doing well. that, however, is not the reason for this report. I am convinced that sharing information is increasingly important, especially given the advantages of the internet in that regard. Information is also much quicker to get. Which means we know more of what to expect from each other, and we know it sooner. this knowledge is an important factor in strengthening the bonds between us. and we benefit from it not only by sharing information within the business, but also within our supply chain. a value that has made an impact on me in my first two years as managing director is trust. Clients work with us because they trust us. We attach a lot of value to being open and honest within our company. When we are doing well, but also when we are doing less well. We also continuously ask ourselves how we are doing. this self-examination has helped bring us, over time, to where we are today. and by sharing information in the chain we have strengthened the collaboration with our partners. this annual report will allow us to tell you how we are doing. and also what we stand for and how we differentiate ourselves, in words and images. Many already know that we are in a moment of transition. our founder, Henry van der Kamp, is retiring and has handed over his management tasks.
annual report 2016 GB Steel Group
a family business and the next generation. It does not sound like a happy combination. reason enough for you to ask how we are doing. at a personal level, I am also often asked how I am doing – in terms of running a business of this size. to be honest, it is not always easy.
We also continuously ask ourselves how we are doing I ask others to change. to look at the business in a new way. However, these are the very people who have built the business. and if they have always done well, why should they change? this can lead to some discussion. Discussion which, however, is necessary in a healthy business. For we each have our own perspective, on a constantly changing world. But if we share these perspectives with each other, if we share our standpoints, then a very clear picture arises of where we are. and where we want to go. Which is why we will share everything with you, in this report. Well, nearly everything, to be honest. Which we always are. please read on, to find out how we are doing.
Bob Soetekouw Managing Director
3
The organisation Managing Director
Financial management
Communication
HRM
GB Steel Group unites a number of outstanding companies, each active in different segments of the steel market. This enables us to work more efficiently to provide smarter solutions: #wemakesteelwork
Facility management
IT
GB Steel Group has bundled its internal support services, which means we are not continuously re-inventing the wheel. Because we share knowledge and expertise with each other. Which makes us stronger, together.
Steel construction, utility and industry
Kampstaal, Beijer
4
Roofing and cladding, utility and industry
Kamplacon
Infra-marine steel construction
Nauta Heeg
Tippers, containers and belt unloaders
Vossebelt
Machine construction
Hordal
annual report 2016 GB Steel Group
Transparent office on the A6 motorway near Emmeloord: the ideal place to meet!
Our aim? To deliver precisely what our client needs – on time, on budget and safely Jaarverslag GB Steel Group
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Bridges. Another Nauta Heeg specialisation.
More than 1900 solar panels at our Nauta production facility in Heeg ensure energy-neutral production.
More than 35,000 m2 of production space. Including our own spray shop. Guaranteeing maximum flexibility and sustainable protection.
Mission and vision We prefer deeds to words. Which is why a single hashtag summarises what we stand for:
#wemakesteelwork What does that precisely mean? Delivering a product is one thing. Delivering precisely what our client needs demands more. Because our products are, in the first instance, not easy to define. Of course there is the specification, or a schedule of requirements. But what is the question behind the question? And is it not quite normal in the fields in which we work that specifications can change, and that much important detail is inputted in this way?
Mission We provide high-quality solutions in steel for the construction, transport and machine industries. United in Steel means more than just economy of scale. We are stronger together. Our highlyskilled people treat each other and our environment with respect and simply deliver what they have promised – on time, on budget, safely and at the highest level of quality. It is a sound basis for the expansion of our (inter)national markets.
Vision Our engineers, constructors and project leaders help our clients develop their plans. And our factories are flexible in absorbing changed delivery times, to ensure that delivery is still on time, as promised. This all prevents costly stagnation in subsequent phases. It is another way our experienced professionals make steel work for our clients. Together, we get it done. In short, #wemakesteelwork.
annual report 2016 GB Steel Group
We provide high-quality solutions in steel, to a variety of industries. For us, quality is not only a characteristic of our product, it is primarily something in the way our people produce that product. Our accomplished staff like a challenge and enjoy delivering the very best solutions to our clients’ needs: on time, on budget and safely. Ours is not a short-term vision, it is a vision of continued, sustainable existence. An existence that enables ongoing investment in our people, machinery and processes while taking the environment into account. It is the only way we can continue to provide smart solutions to our clients, year after year.
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Financial Developments during the financial year
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 (prognosis)
Turnover in millions of euros
Profit on equity capital
CnC and machine construction
Infra-marine steel construction
Construction and recycling transport
Steel construction and cladding, utility structures and industry
GB Steel Group’s profit has continued to grow in 2016. Both the construction and transport sectors have seen increases in turnover and personnel. our market share is firm as we profit from years of investment in quality which, in turn, results in the continued trust of our clients. Market prices are still under pressure as supply in our market sectors remains higher than demand, though the qualityoriented segment of the market is more profitable. From a commercial point of view, good knowledge of our strengths enables us to create superior product/market combinations. Quality, to us, means products that deliver a solution and provide precisely what our client needs. We achieve this by working more closely with our clients and by making optimal use of each other’s knowledge and capacities within our group. In this way, during 2016, we have learned from each other. We have learned how to do business more sustainably, how to optimise the benefits of digitalisation and how to include ongoing staff development in our personnel policy. We build on our original values, combining them with new knowledge and opportunities. So our experienced professionals can bring out the best in steel.
profit on equity capital
8
annual report 2016 GB Steel Group
Investments, 2016 and 2017 Buildings and sites
Machines and installations
Inventory
Transport material
Human resources
Software
0
2016
250
500
750
1,000
1,250
1,500
x â‚Ź 1,000
Prognosis 2017
annual report 2016 GB Steel Group
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Solvency
Who we are GB Steel Group heads six steelworking companies supplying the international construction, transport and machine industries. The organogram on page 4 shows the construction-related companies, Kampstaal, Constructiebedrijf Beijer and Kamplacon, focused on utility construction and industry and Staalbouw Nauta Heeg, which concentrates on (wet) infra-marine construction.
60% 50% 40%
Kampstaal and Beijer have collaborated more intensively over the last two years, by operating together under a shared business office and management structure. With 113 dedicated employees they form a sizeable steel constructor, capable of undertaking large and complex construction projects.
30% 20% 10% 0%
2014
2015
2016
2017 (prognosis)
Kamplacon supplies roof and cladding construction, working in conjunction with Kampstaal and Beijer and for its own, direct clients. In the year behind us we have worked on, for example, parking garages, warehouses, data centres, metro stations and production spaces. Nauta focuses on construction in harbours and inland waterways, both in and outside the Netherlands. Last year’s projects include a major construction project for a Russian harbour and a large slackening structure in the Van Harinxma Canal.
Current ratio
Vossebelt is a supplier to the transport sector. The company designs and produces tippers, containers and belt unloaders for the road construction, earthmoving and recycling sector. It supplies products to truck dealers, body builders and governments as well as directly to transport operators.
1,6 1,4 1,2
Hordal specialises in metal turning, milling, maintenance and machine construction. Hordal’s ingenious product and service solutions ensure continuous operation of the production lines of industrial clients in a variety of sectors.
1,0 0,8 0,6
All companies make use of a number of centrally-supplied services. In order to promote synergy and avoid unnecessary duplication of work, we provide central support to the companies within the GB Steel Group in the areas of financial management, facilities management, HR, IT and communication.
0,4 0,2 0,0
2014
2015
2016
2017 (prognosis) annual report 2016 GB Steel Group
Our steelwork differentiates itself, both in application and function. Which is what we mean by
#wemakesteelwork
+ 46% increased turnover 2014-2016
x3
increase in profit on equity capital 2014-2016
+ 1900 solar panels in 2016 + 2200 solar panels in 2017 2020 objective:
37%
reduction in CO2 emissions at constant volume
We are internationally active and engage with developments in fields such as Green,
Smart Industry, new ways of working, digitalisation and employee development
Our operations are increasingly
greener
We are welcoming a
new generation This provides refreshing new viewpoints
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Quality, to us, means products that deliver a solution and provide precisely what our client needs. We achieve this by working more closely with our clients, ensuring that their investments are also profitable.
CINEMA 43
Debt / EBITDA
Profit on equity capital
3,0
30%
2,5
25%
2,0
20%
1,5
15%
1,0
10%
0,5
5%
0
0%
2014
2015
2016
2017
2014
(prognosis)
Solvency has further increased, to 57.4%
annual report 2016 GB Steel Group
2015
2016
2017 (prognosis)
Financing The balance sheet total has increased due to investments in sustainable LED lighting and solar panels. No new debt was incurred for this purpose. Solvency has further increased, to 57.4%. Increased turnover resulted in an increase in work-in-hand while improved liquidity has kept the financing thereof under control. That the increased liquidity position was achieved despite higher investment is a function of the increase in operational profit. In addition to the factors mentioned, these results are also a function of lower interest rates. Debt repayment cost has remained level.
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We build on our original values, combining them with new knowledge and opportunities
Looking ahead Our expectations for 2017 are modest. Although we have entered the year with a well-stocked order file, it will be difficult to equal the turnover of 2016. Particularly as we rely in our biggest segment, construction, on the continuation of a few, major building projects. Here the question is not only whether the client will select us, but also whether the plans themselves will be implemented. We will work to further improve our position in infra-marine, a sector that has been negatively affected by the downturn in the oil sector. As a result, investment in the harbour sector has lagged.
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In the field of sustainable business operations, we will develop an ISO 14001-compliant management system and obtain the relevant certificate. We have, for the first time, decided to organise this certification process at group level. As regards quality management we will strive to obviate duplicated work and make optimal use of each other’s knowledge and skills. For this reason, our quality management increasingly takes place in a group context.
In the transport sector, we expect a rapid increase in turnover. Investments made by Vossebelt in buildings, people and processes must result in a further increase in its profitability.
For us, ongoing development is a criterion for competitiveness in top market segments. Only with continuous development can we remain a commercially attractive proposition, while executing projects to our clients’ satisfaction and completing them on budget. This last aspect is crucial to our ability to continue investing and to maintaining all the necessary components of a healthy business cycle.
We also remain fully committed to quality and sustainability. This means investments in 2017 in machines, the placing of at least 2200 solar panels on the roof of our Emmeloord production unit, an increased training budget and development of our personnel policy. This will underline the importance of our human capital in a time of expanding economy against the background of a tighter labour market.
We are a family business. We have a sound financial basis. And we have our sights set on the long term. We are also in transition to our second generation, with most of the requisite management changes already behind us. The coming period will see us continuing to focus on smooth transition. We are running at full power – in the fullest confidence that this will continue throughout 2017.
annual report 2016 GB Steel Group
CIneMa 43
#wemakesteelwork