REVIEW 2011
Engineering your ambitions
In touch with future reality Engineering clients’ ambitions takes knowledge and a touch of excellence. In 2011 Doedijns invested in new Inventor 3D software for all its engineers, so that future success can be envisioned today.
REVENUES (X EUR 1 MILLION)
23,0
25,0
23,9
25,7
27,0
41,9
54,2
61,4
59,7
57,4
67,5
‘01
‘02
‘03
‘04
‘05
‘06
‘07
‘08
‘09
‘10
‘11
EMPLOYEES AT YEAR-END
135
142
133
137
143
226
226
231
239
282
286
‘01
‘02
‘03
‘04
‘05
‘06
‘07
‘08
‘09
‘10
‘11
Introduction Welcome to the Doedijns Annual Review 2011
2
011 marked my tenth year as CEO with Doedijns – a milestone on my journey with this company with its remarkable and long history. It has come a long way since the earliest days of producing leather belts, well over a
century ago. Today Doedijns is a modern, strong group of companies and valued partner to its clients in the oil and gas, maritime and highend machine building industries. During the last ten years we have succeeded in building our business from the distribution of A-brand components in the Benelux region to becoming a leader in systems integration for power, actuation, control and instrument systems within a global market. I congratulate my team on this accomplishment and we should all be really proud of our achievement - in just a decade we have grown our turnover from EUR 20 million to almost EUR 70 million in 2011, this increases further if we include the Wilmax Group figures. The acquisition of Wilmax, just before the year end is a significant marker on our path of growth. It demonstrates our intent to broaden our global foothold and to excel and innovate in niche markets. This model is valued by our clients, and financial partners as well. We truly appreciate the support of Friesland Bank Investments which has assisted us in acquiring strong local players since 2005. To keep pace with our clients globalising demands, we have continued to review and innovate both financially and operationally. Retaining our independence whilst achieving the support required to fulfil our ambitions, made private equity the perfect solution for us. We are very pleased that in IK Investments we have found a partner to enable us to continue in our race for success. I truly believe in Doedijns and its potential. Our clients recognise and rely on the knowledge, experience and drive that marks our people. I am certain this will be perpetuated through the appointment of the talented professionals that we welcomed to our management teams in the Netherlands, Singapore and our new office in Dubai last year. Juul IJzermans CEO Doedijns
Doedijns - Review 2011
3
D
oedijns designs, produces,
We dare to take on complex projects,
distributes and maintains mission-
dare to make ourselves heard when we
critical engineered solutions for
know that new means will lead to better
the global oil and gas, maritime
ends and yes, we dare to be proud of our
and high-end machine building industries.
achievements and honest about where
We are a trusted partner to our clients and
there is room for improvement.
suppliers, acting as true system integrator of power, actuation, control and instrument
We are proud to be a partner to world
systems. Our ability to apply multiple
players - Shell, Exxon, BP, Saudi Aramco,
technologies to customised solutions places us
Damen Shipyards, Van Oord Dredging,
at the forefront of our industry.
ASML and many others are valued customers. This is as Doedijns and through
Strategy Transformation While the exclusive distribution of A-brand components to the Benelux and UK markets remains one of our valued activities, we have grown our business considerably by investing in our
our strong brands Thermo Electric (Europe), RMF oil management systems, SITE actuators and Wilmax controls, our latest asset. Our unremitting emphasis on complying with the most stringent safety requirements contributes to this position.
engineering capabilities and market knowledge. Highly skilled personnel, state of the art tools and close customer relationships (where
We value our sound financial situation and the trust and support we receive from IK Investment Group for our expansion plans.
shared ambition is a common feature) – these are the key
We have scope to expand our
components upon which we
geographical presence. The Doedijns
have built our reputation:
Group of companies aims to provide
Doedijns dares.
its clients with informed, local advice, production facilities and service at major hubs around the globe.
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Doedijns - Review 2011
Doedijns dares
Our ability to apply multiple technologies to customised solutions places us at the forefront of our industry.
Our plans reflect this and at their heart lie
development of our core technologies
core, technology-related acquisitions in
and niche products will contribute to our
the Asia-Pacific, North and Latin American
ambition to take pole position in identified
that global market dynamics will act as a
regions.
key markets. As in previous years, the
catalyst for future growth. In uncertain times,
company will invest approximately 5% of
our customers focus even greater attention
revenue in new products and technologies.
on the need to manage risk and increase
Professionalisation Investment in the continued professiona
productivity, and so they choose Doedijns as
lisation of the organisation - with initiatives
Positive Outlook
a trusted partner for their business. For 2012,
like our 2012 Operational Excellence
Market trends remain favourable for Doedijns
EBITDA margin is expected to be in the
project - is certain. Alongside this, our
as the company benefits from the increased
region of 10-12% with revenue expected to
keen attention to specialisation and further
oil and gas E&P spending. We anticipate
surpass EUR 105 million.
- Doedijns’ key strategic activities over the last 10 years SOLUTIONS PROVIDER COMPONENT DISTRIBUTOR
DOEDIJNS STRATEGY 2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2001
2005
2009
2011
ACQUISITION OF THERMO ELECTRIC
ACQUISITION BY FRIESLAND BANK
ACQUISITION OF HABECO
ACQUISITION BY IK INVESTMENTS
INVESTMENTS AND MANAGEMENT
START UP OF ELECTRICAL
PARTNERS AND MANAGMENT,
CONTROLS TEAM
OPENING OFFICE IN DUBAI,
DOEDIJNS
AQUISITION OF WILMAX
IMPORTANT TACTIC ACTIVITIES
Doedijns - Review 2011
2004
2006
2010
OPENING OF OFFICE IN MALAYSIA,
ACQUISITION OF KOPPEN & LETHEM
ACQUISITION OF SITE VALVE
ACQUISITION MECHACONTROLS
AND DELTA CONTROLS VELSEN
5
An IK sweet-spot investment
In August 2011, IK Investment Partners (IK) acquired a majority stake in Doedijns from its previous majority shareholder, Friesland Bank Investments, which had held its stake since 2005. As a Partner at IK and responsible for the Doedijns investment, I have high expectations of this new addition to our portfolio of companies.
They expressed a firm belief in the company and its people, reason why the management team, as minority shareholders wanted to reinvest
When we met with the Doedijns management it was apparent that finding the partner best able to support Doedijns’ plans for the future was even more important for Juul IJzermans (CEO) and his team than achieving the highest price. They expressed a firm belief in the company and its people, underpinning the management’s desire to re-invest as minority shareholders. Internationalisation Doedijns was already well-positioned through its product portfolio in attractive markets when we came on the scene, but management knew Doedijns had to expand internationally in order to keep pace with its clients. With existing operations in the Netherlands, the UK, Belgium, France, Malaysia and, since 2011, Dubai, Juul and the team felt it was important to establish a strong presence in other key global endmarket ‘hubs’ - such as Asia-Pacific, and North and South America. With such an international presence, Doedijns would be able to offer its globally active clients local production and assembly capabilities and access to its products and services portfolio. Wilmax Control Systems Juul described his expectations for our partnership as follows: “We need IK to give us sound advice and support, particularly in the Far East”. Almost immediately after completing the acquisition of Doedijns we began due diligence on the Wilmax Group, an engineering business in Singapore. With branches in Singapore, Battam and Dubai, we knew we could use the scale of Wilmax’s global sales network to crystallise the organic growth potential of the merged entity and complement Doedijns’ already strong product offering. The key aims were to increase the effectiveness of the company’s sales force and develop sales from new products. Both worked out superbly in a matter of months.
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Doedijns - Review 2011
To complete the transaction, IK was able to
pricing, cost allocation and working capital -
IK Investment Partners (IK) is a Pan-European
draw on the valuable network of contacts and
and realigning the business by key end-user
private equity firm focused on investments
know-how we established earlier in the year
segments with the centralisation of group
in three regions; the Nordics, Germany/CEE
during the strategic merger of another of our
procurement set to achieve greater purchasing
and France Benelux. Since its founding in
portfolio companies, Vistra Group, with Offshore
efficiency. As you will no doubt agree, Doedijns
1989, IK has invested approximately EUR 5.6
Incorporations Group – an Asian corporate and
is already a well-managed company with a
billion in over 80 European companies. IK
fiduciary services business. This experience was
strong finance function, systems and operations,
invests with the management of mid-sized
immeasurable in guiding Doedijns along the
but there is always room for improvement. In
companies that have strong improvement
initial steps of its strategic path for growth.
2012 the introduction of Lean Manufacturing
potential, operating in the business services,
and Lean Office will contribute to efficiency
care, industrial goods and consumer goods
While Wilmax also operates in the Oil & Gas
and further enhance customer (and employee)
sectors. The current portfolio comprises
market, both companies are recognised for their
satisfaction.
20 companies with total turnover of
systems knowledge, customisation and repair
close to EUR 7.5 billion and over 47,000
capabilities, which were decisive factors in the
Finally, on the macro-economic front, Doedijns’
employees. In the industrial goods sector,
decision-making process. They also share a very
end-markets are unavoidably cyclical with
IK has extensive investment experience
close relationship with key customers, including
shipbuilding markets hit particularly hard by the
with portfolio companies past and present
continuous co-development of customised
downturn in 2010. However, the end-market
including the Swedish engineering company
solutions. We anticipate further tightening
cycles are phased differently, and this supported
Alfa Laval; the Polish railway buffer business
of these relationships through increasing
earnings in 2010-2011, mitigated further by
Axtone; Flabeg, the German solar parabolic
maintenance agreements. In addition, as their
regional diversification. In addition, Doedijns still
and automotive glass business; Magotteaux,
Doedijns is already a well-managed company with a strong finance function, systems and operations, but there’s always room for improvement respective portfolios comprise complimentary
makes a significant proportion of its revenues
specialisations, e.g. helicopter refuelling systems
from distribution and, because it is driven by
versus crude oil sampling systems, we see
repairs and maintenance, this has proved to be
significant opportunities for cross sales in an
more resilient during the downturn. Despite
integrated client network. This is an example
doubts about economic prosperity in Western
of how we at IK can provide strategic input
markets and the shift in investor appetite
and work with Doedijns’ management team to
towards Eastern horizons, our investment in
transform the company into a globally-diversified
Doedijns is characteristic of our investment
niche engineer in selected growth markets.
“sweet spot”: with sales hitting almost EUR
the Belgian industrial supplier; the German fire protection company Minimax; and Schenck Process, the Germany industrial solutions company. For more information visit website: www.ikinvest.com
70 million in 2011 and normalised EBITDA of Operational improvements
around EUR 7.5 million, I am confident that
A third area in which IK can contribute, besides
together we are on track to double the size
globalisation and niche positioning, is our
of Doedijns and build a leading, global niche
ability to identify scope for further financial
engineering solutions provider for the future.
and operational improvements. Specifically, we are now supporting Doedijns in updating its
Remko Hilhorst, Partner of
organisational model from ‘wholesale’ to ‘project
IKINVESTMENTPARTNERS, Chairman of
engineering’ - in terms of sales, purchasing,
the Supervisory Board of Doedijns
Doedijns - Review 2011
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Mixed results save costs Nigel PocketT Product Manager Sampling Systems When large volumes of crude oil change
Power-Jet Mixing systems and the agreed
present the results in a paper at NEL’s Kuala
ownership it is crucial to establish the exact
delivery times, but foremost with the cost
Lumpur and Houston Metering conferences”,
quality of the substance concerned. With
savings aspect. They really benefitted from a
says a genuinely proud Nigel Pockett.
the price of a barrel of oil reaching an all
system which ensures representative samples
time high, it is certainly imprudent to pay for
are taken even when operating in large
water, sediment or other foreign bodies or
pipelines and varying process conditions.”
contaminants. A representative sample and correct analysis of the oil shows all concerned
Crude oil always contains a small percentage
what is really going through the pipelines.
of water and sediment which tends to sink to the bottom of the pipeline. Taking a sample
Early in 2011 Doedijns was awarded a
from the centre of the pipeline will not give
contract from Krohne Oil & Gas to supply
representative test results; the Power-Jet
thirty combined Power-Jet Mixing, sampling
Mixing system works by taking a sample
and analysis systems to the South Oil
from the line and re-injecting it at a certain
Company in Iraq. Because of recent joint
volume and pressure through a nozzle to
ventures between SOC and a number of
create energy sufficient to mix the different
KROHNE is a world-leading manufacturer
leading oil companies there was an increased
phases.
and supplier of solutions in industrial
demand for precise quantity and quality measurement systems.
process instrumentation to a variety of The calculation tools were checked by
markets, e.g. the oil & gas and (petro)
specialists in flow metering and multiphase
chemical industry.
Nigel Pockett looks back on a satisfactory
testing of UK’s National Engineering
operation and anticipates great potential
Laboratory, NEL. “The positive confirmation
from the partnership between Krohne and
of this independent body, part of TÜV, really
Doedijns in the future: “SOC was really very
proved that we have another valuable asset
impressed not simply with the quality of our
in our solutions portfolio. I was pleased to
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Doedijns - Review 2011
Customer satisfaction and quality have
clients is Standard Drilling, in Cyprus. Gabriel
always been our focus,” says Gabriel Toh,
Toh explains, “Our system comprises two 750
Business Development Manager for Wilmax.
USG (2835 L) aviation fuel transportable tanks
He explains how this helped the company to
(one for service and one standby), two jettison
become market leader in helicopter refuelling
platforms (using remote hydraulic operation),
systems - one of Wilmax’ specialities, “We
a fuel transfer pump unit and a dispenser
carry out every stage from conception
unit (filter separator to API 1581and water
to detailed engineering, development of
monitor to API 1583). In addition, we base
specifications and drawings of the system,
our system’s design on the American Bureau
whilst retaining the flexibility of customisation
of Shipping rules for Mobile Offshore Drilling
demanded by our clients. This provides
Units and others’ as a mandatory requirement.
advantages to both our clients and our teams
Meticulous project management ensured all
Established in 1967, Keppel FELS
to establish an effective working relationship.
these systems were delivered on time.”
today leads the world in the design, construction, repair and conversion of
As a testament to this, one of our major clients, Keppel FELS, has worked closely
In 2012 Wilmax will develop its system
jack-up rigs and semisubmersibles. It is
with us for the supply of helicopter refuelling
design to meet the Norwegian Maritime and
part of Keppel O&M, a global leader in
systems for all their newly built vessels,
Petroleum Directorate standards. And with
the offshore and marine industry with a
semisubmersibles and jack-up rigs, which have
Wilmax now part of Doedijns, this opens up
network of twenty yards worldwide.
this requirement.”
new horizons as Gabriel Toh explains: “Our
In 2011 Keppel FELS was commissioned to
success in Asia, the Americas and Pacific areas
build nine jack-up rigs utilising their KFELS
can now be extended to the North Sea region
Class B design for various clients. One of those
- these are exciting times for us.”
These are exciting times for us Gabriel Toh Business Development Manager
Doedijns - Review 2011
9
28 metre-long multi-point temperature sensors on their way to Saudi Arabia
Instrumentation experience at great length Joop Scheffer Sales & Product Manager Export When it comes to temperature measurement
we were asked to build four complete systems
Joop Scheffer, Sales & Product Manager
measuring 28 metres, with multi-point sensors
Export at Doedijns’ Thermo Electric, has seen
and a specific fast response time. Although we
it all… “Over the decades our instrumentation
are equipped to produce this at the customers’
specialists have designed and produced
site (we do this on a global scale) this particular
10-point elements measuring just a few
situation called for rapid commissioning,
centimetres through to a 46 metre-long
which was better suited to us producing it in-
instrument with 36 measuring points - we really
house. Although both the design, choice of
The Saudi Aramco Shell Refinery Company
like to demonstrate our capabilities.”
materials and the production, e.g.: welding and
SASREF is at the very heart of Saudi
hardening requires a great deal of expertise,
Arabia’s petrochemical industry, Jubail
The petrochemical industry is one of the
the biggest challenge was at the end: the safe
Industrial City. It is acknowledged as an
markets that really values the expertise of
passage of these giant temperature sensors
industry pacesetter and was specifically
Doedijns. “In 2011 we received another
from Waddinxveen to the clients’ delivery site;
designed as an export refinery.
special request for SASREF, a joint venture of
in Saudi Arabia. Somehow we have always
Saudi Aramco and Shell for the high reactor
managed this effectively and securing a repeat
vessels of the Kylation refinery. To measure the
order within just a couple of months tells me
temperature along the total height of the vessel
we’re doing a fine job”, says Joop.
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Doedijns - Review 2011
‘To remain at the top, you must continually
connect all kinds of equipment from various
innovate: and to develop and implement
suppliers to our hydraulic power units
the best innovations you must work co-
(HPU), but also for the commissioning, well-
operatively. Sharing knowledge is one of the
functioning, and worldwide aftersales service of
most important components to stimulate the
these products as well.
advance of the best possible products.’ “The highly innovative Axe Bow shaped
Based in The Netherlands, Damen
This is how ‘Damen Shipyards’ explains
SPa 5009 Standard Patrol boat, launched in
its success working nationally and
2011, is a good example of this co-working. We
internationally with customers as diverse as
supplied it with one central HPU that operates
the US Coastguard, independent research
the capstan, mooring winch, a david, the
organisations including Technical University
deck crane, bow thrusters, stabilizers and the
Delft and classification societies and suppliers
stern door. When you see this ship put to sea,
like Doedijns.
you’ll understand how good it feels to have contributed our expertise to the production of
Shipyards has a strong global presence with over 6,000 employees operating
Ard van Marrewijk is a regular at Damen.
more than 42 shipyards and related
“Doedijns typically acts as co-maker for
companies worldwide.
Damen,” he says. “We are entrusted with
this astonishing, high-tech patrol vessel.”
the responsibility, not only to engineer and
We typically act as co-maker Ard van Marrewijk Project Manager Hydraulics
Doedijns - Review 2011
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A valuable link between manufacturer and customer
Q
uality components play a major role in both Doedijns’ system solutions and to the company’s value. Distributing components
still represents one third of our turnover and is also a field in which our people really make a difference. On a daily basis, Doedijns’ engineers and sales team advise Benelux clients on the suitability of which parts match which specific need. In the UK our colleagues
ACE
from Koppen & Lethem (K&L) also have an outstanding reputation among their customers.
Airtac Alfair Alwitco
ASA Hydraulik
Bowman
Of course knowledge is useless without being able to supply corresponding quality products
Bettis
Braden*
Bühler Technologies
and would fade quickly without regular training. We are particularly proud to represent the most
BuTech
prestigious brands within their specific product
Circle Seal
areas including hydraulics, pneumatics, controls
Clippard
and instrumentation. Altogether there are more
Danfoss Eaton
than 25 principals, enabling us to provide an
FaberCom*
unparalleled source of solutions. This is for
Hydraforce Hydroll
explains: “our sales and engineering staff not only participate in dozens of product training
InLine*
sessions and factory visits to our principals, clients as well. This really reinforces the bond
competence and the way you act that makes all the difference. And bear in mind, we are more than just a supplier of parts, often it is all about the way we propose customized total
Insert Deal
JTEKT-HPI** Ledeen
we also organise training and tours for our
becoming more transparent, it is your technical
Haskel
Hawe Hydraulik**
Manager Fluid Power Components, Jelle Beuker
a valued lynchpin. In times where markets are
Firestone
Gast Gearmatic*
direct sales, and for after sales and service.
at two sides, and strengthens our position as
ControlAir
Nova Swiss
Scanreco*
RMF Systems***
SAI
SITE*** Sun Hydraulics
Sunfab Thermo Electric*** Topflo Val-tex
Versa
Vesta Voith
Wandfluh Williams
Zook
*) UK only **) UK + Benelux ***) Proprietary brand of Doedijns
solutions that makes the difference.” Jelle Beuker continued, “This can be to local clients or global players – you never know what a new day brings, but that is precisely what makes life such a challenge.”
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Doedijns - Review 2011
We are less concerned about the impact of the recession in the West and more by the speed at which our client base is becoming focused on emerging economies in the East juul IJzermans, CEO
Doedijns - Review 2011
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Information on the board The Management Board is Doedijns major body of authority and collectively responsible for the management, direction and performance of the Company’s businesses. The Management Board consists of the CEO, COO, CFO and the Managing Directors of the respective Business Units of the Company. Most of the members of the Management Board hold shares in Doedijns.
Doedijns | One Firm 7
countries
10
offices
4
specialist solution areas
1
unique partnership
juul IJzermans, CEO
Mark de Haas, CFO
Martin Rosmolen, COO
Mr IJzermans was appointed CEO of Doedijns in 2001. He holds a master’s degree in Chemical Engineering from the TU Eindhoven. He has a background in engineering, and structured finance. Since starting his career in 1994, he has held management positions in engineering and sales at Weweler, Geelen Counterflow and Stork Engineers & Contractors. The CEO is Chairman of the Management Board and is responsible for operations, leadership and governance of the Management Board.
Mr de Haas was appointed as CFO of Doedijns in 2011. His previous positions include CFO at Fairstar Heavy Transport N.V., Corporate Controller at Nielsen Company and Consultant at KPMG. He holds a bachelor degree in Economics and completed post-doctoral Chartered Accountant and IT Auditor at the Universities of Groningen and Amsterdam. The CFO is responsible for finance & accounting, tax & treasury, legal & risk management, ICT and facilities.
Mr Rosmolen was appointed as COO of Doedijns in 2011. He joined Doedijns in 2001 as part of the Thermo Electric acquisition. Previous positions include MD at Doedijns Instrumentation and Hydraulics. He holds a bachelor degree Mechanical Engineering from the Technical College of The Hague and MBA from Business School Netherlands. The COO’s responsibilities include strategic planning, corporate marketing and the Operational Excellence project.
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Doedijns - Review 2011
Dirk Smulders, MD Hydraulics
Marc Bieleveldt, MD Pneumatics
Jan-Willem Noordermeer, MD Instrumentation
Cor Feddes, MD Controls
Mr Smulders was appointed as Managing Director of Hydraulics in 2011. He received his M.Sc. in Mechanical Engineering from Delft University of Technology. He started his career at Stork Technical Services, where his last position was BU Manager Maintenance & service. After gaining experience in the financial sector, he worked for Eriks as a BU Manager Power Transmission.
Mr Bieleveldt was appointed as Managing Director Pneumatics in 2011. He holds a bachelor’s degree in Business Administrations from the College of Enschede. His previous positions include Director at Romijnders, Sales Director at Dales Sanitair and Sales Director at Agpo Ferroli.
Mr Noordermeer was appointed as Managing Director Instrumentation in 2007. His previous positions include Sales Manager Doedijns Instrumentation and Sales Engineer Thermo Electric. He holds a bachelor degree in Chemical Technology from the Technical college of The Hague.
Mr Feddes was appointed Managing Director Controls in 2006. His previous positions include General Manager Delta Controls and Managing Director Delta Controls Velsen. He graduated from the Technical College Process and Mechanical Engineering and studied Mechanical-Industrial engineering in South Africa, Johannesburg.
A global approach, demands local expertise and a professionalism that fuels our philosphy
William Toh, MD Wilmax | Doedijns - Apac
Gerry Barker MD Koppen & Lethem - UK
Rakesh Surti, MD Doedijns MEA
Mr Toh joined the Doedijns’ Management Board directly after the acquisition of Wilmax by Doedijns at December 19, 2011. Mr Toh has educations in Mechanical Engineering, Business and Financial Management and wide management experience in both Asia and the USA. He founded Wilmax in 1989 and built it up to a leading company within its niche segments.
Mr Barker was appointed as Managing Director of Koppen & Lethem Limited in 1999 and has grown the business by 400% over the following years. A qualified Aeronautical Engineer, he has 20 years’ experience in Mechanical Engineering and holds a Master’s degree in Business Administration.
Mr Surti was appointed as Managing Director Doedijns Middle East & Africa FZE, Dubai, UAE in June 2011. He holds a first class Bachelor’s degree in Production Engineering from S P University, India & Post Graduation Diploma in Business Management from M S University, India. His previous positions include Managing Partner at Heliflex Hydraulics & Engg Co, and senior manager in India & UAE.
Doedijns - Review 2011
15
When we identify a problem and face it with confidence and enthusiasm, the solution is already well on the way
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Doedijns - Review 2011
Well (a)head and in Control
A
t the end of December 2011, Doedijns made a significant step in its strategy for growth and acquired Wilmax Control Systems in Singapore. Under the leadership of William Toh, Wilmax had grown significantly over the past ten years and was a respected competitor of Doedijns in the Far East, predominantly in the wellhead
control business. The coming together of these two businesses - with Doedijns production facilities in the Netherlands and Wilmax’ in Indonesia and Singapore - cements its position as a global player.
Mr Feddes concludes: “Our combined offering has enormous scope and ranges from a single well head unit, to expandable multi well head units for over 20 wells. The units can be operated by air, gas, electricity or solar power. If additional valves need to be hooked-up, Cor Feddes, Doedijns Controls’ Managing Director and William
such as Choke, HIPPS, blow down, ESD or fusible loop, it can all be
Toh are happy to speculate about the future of this synergy. “Of
done - and if required, logic control can be interfaced with PLC or
course the prospects are good,” says Mr Feddes. “Doedijns
the clients’ DCS.”
Controls already holds a strong position in engineered custom-built wellhead units in Europe, and now that we come together with
With Wilmax’ inclusion into Doedijns, the company is firmly at the
Wilmax, our client network will benefit from the advantages our
sharp end of wellhead control panels and related solutions both on
combined strength gives us. Both parties bring solid experience and
and offshore such as chemical injection skids, hydraulic power units,
knowledge to the table and there are clear benefits to be gained
valve automation PARTNER and sampling systems. The total Doedijns budget OF DOEDIJNS
from joint sourcing as well.”
for 2012 is set well above EUR 100 million.
In Asia-Pacific, Wilmax is listed as vendor to most of the leading oil companies, including Shell, Petronas and Saudi-Aramco. For this
PART OF DOEDIJNS
reason Wilmax will retain its name with the enhanced addition of being ‘part of Doedijns’. Mr Toh adds philosophically: “Every challenge has within it the seeds of its own conclusion and so, when we identify a problem and face it with confidence and enthusiasm, the solution is already well on the way.” Like Doedijns, Wilmax focusses on independent, original problem solving support. “We tailor solutions to each client’s requirements, objectives and situation - and while we insist on customisation, we follow a consistent approach in working with our clients. In my experience this creates highly effective working relationships and roots out any obstacles, regardless of whether they are technical or due to miscommunication.”
Doedijns - Review 2011
17
Agenda for Innovation As customers’ needs change, so do technological and organisational possibilities. At Doedijns, we turn yesterdays’ dreams into todays’ reality. Our Agenda for Innovation features projects we know will make a direct impact on the success of all our clients - both current and in the future. Our on-going product development is vital and geared towards specific market issues, yet we are also investing in organising our operations to deliver an increasingly high standard of service. Take a look at just a few of our 2012 projects:
From a custom engineered product to a fully certified safety component.
at the request of one of their Norwegian clients, before Doedijns acquired the company. It is the world’s first lift and turn spring return actuator, which converts one single linear drive into a three
Derived from the patented design of the Lift & Turn Actuator,
dimensional movement to lift, turn and reseat the plug valve. The
Doedijns today produces a range of standardised Compact
product still holds a prominent position in Doedijns’ SITE range
Actuators. As creator, pneumatic ‘veteran’ Berry Richter, is
and is particularly suitable for very abrasive surroundings such as
particularly proud to announce that in June 2012 Lloyds certified
crude (sandy) oil, gas and petrochemicals.
‘the Doedijns Compact Series Quarter Turn Actuator complies with the IEC61508 as type A equipment’. “This means it is capable of performing at SIL2 - a very important industry requirement that opens the way to a further successful roll out of our range.” “Compared to conventional actuators our Compacts realise a footprint reduction of 6070% - so where limited space and weight are an issue, which often happens off-shore, we enable smaller skid building and/or reduced piping constructions. Seeing great potential for our solution in serious upstream SIL applications as well, e.g. emergency shutdown valves and high integrity pressure protection systems (HIPPS) we called upon an independent consultancy firm to put our design through rigorous examinations. The outcome is superb – it will be internationally recognized, with SIL3 certification by the end of 2012 as a logical next step”. The Lift & Turn Actuator was custom built by SITE,
18
Doedijns - Review 2011
Limiting explosion risk and fire blaze at refineries The process of cracking crude oil takes multiple phases of reheating at high temperatures - a potentially explosive situation as temperature, air, pressure and combustibles all come together. Experience tells us that this can go horribly wrong. With this in mind, in 2009 a major refinery turned to Doedijns’ Thermo Electric experts for a joint investigation how to improve on safety, focussing in particular on the lifespan of the thermocouples used in their production process. This partnership, coupled with a similar request from a producer of ceramic raw materials, has resulted in the development of a smart solution and extensive field tests have since proved the new technology to be robust and reliable. In 2012 we will see the commercial launch of the RFT. This ‘retractable furnace thermocouple’ can be exchanged while the cracking process remains fully operational, preventing costly down-time or increasingly hazardous situations. The solution is found in both the design and the composition of the materials used. The core of the sensor is straight which makes it more durable and suitable for a multilayer application of ceramics. As the furnace tubes expand and contract with the temperature fluctuations, Doedijns conceived a bellow system, which when placed outside the furnace, will accommodate the movement of the core. From this location technicians are also able to exchange the sensors as required without risk.
over 35 countries and across a wide variety of markets. The sole focus of this part of our business is to ensure the deployment of all kinds of power systems takes place with as little disruption as possible.
Clients already using equipment-monitoring systems can simply add the OQS which, when integrated with a standard interface e.g.; 4-20mA, CANBUS and RS232/RS485 will enable the presentation of exceptionally detailed information. Alternatively, results can be instantly displayed on the various RMF Systems stand-alone and PC
Following the launch of the RMF ‘air
display systems.
conditioners’ (an improved version of traditional air breathers), the brand will
The world’s most accurate oil quality sensor
introduce the OQS in 2012 - this Oil Quality Sensor is a small device giving outstanding results. It will be the world’s most accurate,
Approximately 80% of hydraulic system
real-time oil condition monitoring device.
failures are caused by contamination of the
The OQS has a patented core technology
hydraulic oil either by solids or water. RMF
that delivers up to sixty times more accurate
Systems is a Doedijns brand which sets the
condition monitoring results than any other
standard in micro filtration systems and oil
sensor – exhaustive evaluation and testing has
condition monitoring and is represented in
repeatedly demonstrated this.
Doedijns - Review 2011
19
The end user as real winner Operational Excellence and Supply Chain Management
I
n addition to exciting product developments, in 2012 Doedijns will continue to work hard and improve on the way it is organising its operations to provide exceptional service. Chief Operations Officer, Martin Rosmolen comments on two particular areas.
“How can we better serve our customers?” This question is even more relevant when a company is undergoing a transformation like Doedijns is today – it is not simply a matter of being close, knowledgeable and enthusiastic. As the company professionalizes and continues to grow, we must pay attention to how we communicate and operate as efficiently and effectively as possible. This is why we are committed to our 2012 Operational Excellence Project. Right from the start, in January, the four Dutch Doedijns branches started the project. We hired Duggan Associates to guide us through the process. Operational Excellence is an accelerated version of the Lean Manufacturing principle, introduced by Toyota in Japan. We are convinced that a midsized company like Doedijns can achieve remarkable results with it as well,
We are convinced that a midsized company like Doedijns can achieve remarkable results with Lean Manufacturing as well
offering tangible benefits for both our company and our customers. Doedijns is implementing both Lean Manufacturing and Lean Office and the first results are really promising. Obviously our suppliers play a significant role in this process. Coming from our background as a trading company and distributor for leading brands Doedijns has, until today, never put particular emphasis on procurement. Now that our business has grown - in the variety of product categories resulting from our local acquisitions, and with extra focus on engineered production processes via our recent global expansion - we expect significant benefits to come from our new focus on Supply Chain Management. Global procurement is essential in the sourcing of similar materials, products, or even brands; we can learn from each other’s experiences, ensure standardization and obviously take commercial advantage of scaling up our demand. We have plans to merge such activities within our holding company to maximise our logistical efficiency – by connecting our worlds and our skills, Doedijns will be in a better position to cooperate strategically and forge agreements with our principals. We expect that this step forward will bring advantages to all parties - with our customers as the real winner.
20
Doedijns - Review 2011
@ your service – around the globe Service at Doedijns has many faces. This is no surprise when you
oil is won in some quite exciting areas of the world, such as Sierre
consider that we have technicians in a wide variety of disciplines
Leone. Last year some equipment needed urgent attention over
around the world. Each of them is a highly-trained specialist with a
there, so I hopped on a plane, the head office arranged a four
single goal: to ensure our clients installations run without a hitch.
wheel drive and the necessary security and off I went, making sure the work got done. There is no doubt the clients are appreciative -
In 2011 we joined forces with experienced colleagues in Dubai,
the stakes are indeed high.”
Singapore and Battam (Indonesia). Self-supporting and skilled at installing, commissioning, inspecting and maintaining hydraulic
Obviously Doedijns also offers contracts for preventative
power units, control panels, valve automation systems, as well as
maintenance. “For me this brings the right balance. I must still keep
equipment packages including chemical injection skids, sampling
focused as the work is tailored to the needs and circumstances of
systems and more. Doedijns’ technicians work to the strictest
the customer and the equipment is virtually always mission critical.
industry standards and client-specific requirements. State of the
We carry out inspection, make sure we exchange whatever is
art tools and safety methods along with a vast array of spare parts
required and provide feedback to the client,” continues Ricardo.
in various locations around the world accommodate a smooth
As another special service Doedijns regularly deploys its mobile
operation and ensure our service record is second to none.
ATEX high pressure flushing unit - developed and built in-house this ensures oil in hydraulic systems meets the purity requirements of
Service Engineer Ricardo Etman confirms: “What I particularly like
ISO4406, “Applying one of our RMF filter systems is the next logical
about my job at Doedijns is the adventurous aspect of the work –
step” hints Ricardo.
Doedijns - Review 2011
21
Summary of financials
I
n March 2011 Mark de Haas joined Doedijns as CFO. Having worked for large corporations, his first encounter with the company came as a pleasant surprise. “I am extremely impressed with the professionalism of the team here at Doedijns, something I
was not expecting to find in a mid-sized Dutch engineering company headquartered in Waddinxveen”. Although Doedijns has had some dynamic years over the past decade, his impression is that 2011 was “quite extreme”. The new CFO has prepared the 2011 financials using the International Financial Reporting Standards for the first time in the company’s history. “This first year under review was characterized by strong operational results, revenue grew 18% organically, and normalized EBITDA (excluding extraordinary acquisition related costs) grew by 40% from EUR 5,2 million in 2010 to over EUR 7,3 million. We engaged in a number of activities that put us in a favourable position to take advantage of long term growth opportunities. As part of our
Although Doedijns has had some dynamic years over the past decade, the impression is that 2011 was quite extreme
22
strategic focus we divested Doedijns Automotive early in the year. In June we celebrated the opening of our office in Dubai, which boosted sales in the Middle East and Africa region. In September our ultimate parent, Doedijns Group Holding changed ownership. IK Investment partners, together with the Doedijns management team acquired the shares of the group from Friesland Bank Investment, who divested their shares after six very successful years of ownership. In December, we acquired the shares of Wilmax Control Systems Pte Ltd. in Singapore. As a result of the Wilmax acquisition the group refinanced its entire debt structure, with a new 6 years facility with ABN AMRO and RABO Bank totalling to EUR 54 million. Doedijns ended the year with a cash position of EUR 5,4 million and another EUR 15 million of committed credit facilities. With a strong balance sheet, our already mentioned professional team, our loyal client base and innovative mind-set, I am confident that we can achieve our ambitions in coming years”
Doedijns - Review 2011
Doedijns International Consolidated Statement of Income
2011
2010
67.473
57.410
Cost of goods sold
(37.969)
(31.457)
Gross profit
29.504
25.953
Labour Cost
(17.872)
(17.005)
Other Operating Expenses
(4.310)
(3.774)
Exceptional Acquisition related costs
(1.883)
-
(24.065)
(20.779)
Earnings before interest, taxes, depreciation and amortization
5.439
5.174
Depreciation and Amortization
(1.228)
(1.349)
Operating profit (EBIT)
4.211
3.825
Net Financial Income/ (expense)
(1.401)
(239)
(191)
-
Profit before tax
2.619
3.586
Income tax expense
(1.086)
(1.056)
Net result for the year
1.533
2.530
(Amounts in thousands of EUR)
Revenues
General and Administrative costs
Results on disposals
Doedijns - Review 2011
23
Doedijns International Consolidated Statement of Financial Position
2011
2010
27.616
8.650
3.018
2.474
30.634
11.124
Inventories
19.567
11.576
Trade and other receivables
15.995
9.917
Cash and cash equivalents
5.385
798
40.947
22.291
11.712
7.459
Current portion of borrowings
3.134
1.395
Other current liabilities
7.711
4.111
Total current liabilities
22.557
12.959
Capital employed
49.024
20.456
36.744
3.340
Other non-current liabilities
3.061
1.074
Total non-current liabilities
39.805
4.413
18
18
Legal reserves
(19)
(206)
Other reserves
9.220
16.287
-
(56)
9.219
16.043
49.024
20.456
(Amounts in thousands of EUR)
Intangible assets Property, plant, and equipment Total non-current assets
Total current assets Trade and other payables
Borrowings
Issued share capital
Non-controlling interests Total equity Financing
24
Doedijns - Review 2011
Doedijns International Consolidated Statement of Cash Flows
2011
2010
Operating profit
4.211
3.825
Amortization, impairments, and depreciation
1.228
1.349
742
-
Autonomous movements in working capital
(1.546)
2.790
Cash flow from operations
4.635
7.964
(926)
(263)
(1.064)
(1.197)
(21)
(612)
2.624
5.892
(614)
(1.756)
(22.895)
(6.665)
270
-
(23.239)
(8.421)
Redemption loans
(3.885)
(575)
New loans
39.000
4.735
Movements in bank overdrafts
(1.231)
(1.893)
Dividends paid
(8.600)
-
25.284
2.267
4.669
(262)
(Amounts in thousands of EUR)
CASH FLOW FROM OPERATING ACTIVITIES
Acquisition related costs
Paid financing cost Paid corporate income tax Appropriation of provisions Net cash from operating activities
CASH FLOW FROM INVESTING ACTIVITIES Net capital expenditure Acquisition spending net of cash acquired Receipts from disposal of activities Net cash used in investing activities CASH FLOW FROM FINANCING ACTIVITIES
Net cash used for financing activities Net Cash Flow
Doedijns - Review 2011
25
Doedijns cares … ... about
people every day “Our clients adhere to the strictest rules and regulations concerning quality and safety. It is little wonder when you consider the hazardous nature of the oil and gas, maritime and high-end machine building industries.” Quality Assurance manager John Heijboer manages countless certificates, accreditations and industry standards and explains how much importance Doedijns places on ensuring a safe working environment and high-quality end products: “Doedijns is VCA/SCC certificated and, as Wilmax, is certified by Lloyds for ISO9001. If the situation demands it, we produce ATEX explosion-proof equipment and sampling systems for offshore use with an EN12079 certificate. Another example are our fully autonomous Emergency Shutdown (ESD) systems, for jetty and process installations that are built according to Shell DEP 31.36.10.30. The standards and accreditation undertaken by Doedijns to comply with stringent quality and safety regulations is seemingly endless but essential for the business.” Doedijns also has its own in-house calibration laboratory in line with ISO 17025 requirements, so we can provide our thermocouples with an RvA certificate, or equivalent like ILAC or ANAB. John: “Safety of course goes far beyond a certificate on the wall. For Doedijns it means continuously training our people and redefining our end solutions to be sure we deliver the highest possible security standards”.
... about
future generations With the demand for energy rising and the extent of the world’s natural resources running ever lower, new techniques are being developed for even better, deeper and further exploration. At the same time as this, new forms of clean energy are emerging to satisfy demand. The solutions Doedijns offers contribute to both sides of the equation; yet we continue to strive for the most efficient way to produce and run them. Harnessing solar power as an option is one such example. The contribution made by RMF Oil Management Systems, a key player in its market, is much bigger. RMF offers a wide range of solutions, in particular microfiltration and oil
At the same time new forms of clean energy emerge to satisfy the demand 28
quality monitoring systems to help increase the lifespan of hydraulic and lubrication fluids and the equipment in which it is used. RMF applications are certainly diverse and include the shipment of coal, the mining of oil and gas. RMF Systems are involved in the development of some of the world’s most efficient wind farms and solar power tracking systems as well. Sustainability remains high on our Agenda for Innovation and the growth of our company, and demonstrates how serious we are when we say ‘we care’… In 2012 Doedijns Instrumentation began working towards accreditation for the environment standard ISO14001. This important mark will demonstrate that our practices lead to less energy consumption and lower emissions, ensuring that people, planet and profit will benefit in equal measure.
Doedijns - Review 2011
Colophon Concept, copy and coordination: Eric Boers, Mark de Haas Editing: Sallie Taylor Design and Layout: DUNE advertising agency Photos: Ticho’s Eye + stock photo’s Print: Nuance Print
The Doedijns Companies operates around the world. At the moment (July 2012) we have a solid basis on three continents, Europe, Middle-East/ Africa and Asia-Pacific and we are actively working to extend our footprint. Please feel free to contact us for further information.
Doedijns Headquarters -T he Netherlands T +31 (0)182 30 28 88 info@doedijns.com www.doedijns.com Hydraulics -C oenecoop 103-105 NL - 2741 PH Waddinxveen T +31 (0)182 30 28 88 Instruments -C oenecoop 71-73 NL - 2741 PH Waddinxveen T +31 (0)182 30 28 88 Pneumatics -V an Galenweg 23 NL - 5431 LG Cuijk T +31 (0)485 31 51 00 Controls -A ustraliëweg 10 NL - 9407 TE Assen T +31 (0)592 40 50 70 Doedijns - Belgium - L angveld Park 10, P. Basteleusstraat 2 B - 1600 Sint-Pieters-Leeuw T +32 (0)2 361 74 01 Koppen & Lethem | Doedijns United Kindom -3 Glenholm Park, Brunel Drive Northern Industrial Estate, Newark UK - Nottinghamshire NG24 2EG T +44 (0)1636 676 794 Doedijns Middle East & Africa -R A08BC02, Jebel Ali Free Zone Dubai, UAE T +971 4 887 6315 info.dubai@doedijns.com Wilmax | Doedijns - Apac -B lock 302, TOPS Avenue 3 #02-05 Loyang Offshore Supply Base Loyang Crescent, Box 5189, Singapore 508988 T +65 6 546 7997 sales@wilmax.com.sg www.wilmax.com.sg
This print contains certain financial information in summarized form. The contents of this version are qualified in their entirety by reference to the full Annual Report 2011 of Doedijns International BV.
Doedijns is all about engineering your ambitions. We are proud to employ knowledgeable and capable professionals from various backgrounds and regions of the world, with one single goal: to be trusted partner to our renowned clients and suppliers in the oil and gas, maritime and high-end machine building industries worldwide. In just a decade Doedijns has grown to be a true system integrator of Power, Actuation, Controls and Instrument systems and a global player within specialised markets. This is the first Annual Review we have published. We have chosen to do so, not because we want to advertise how great we are as a company, but instead, to tell you our story. We do this through the voices of those who work for Doedijns, its subsidiaries and brands around the globe and the people who every day, ensure that we provide the solutions, the expertise and the success that drives our business and makes Doedijns the company that dares.
Doedijns International BV - Coenecoop 103-105 2741 PH Waddinxveen, the Netherlands T. +31 182 30 28 88 www.doedijns.com