revIew 2012
coMbIned STRENGTH
together we can offer significant added value to our customers all over the world
REVENUES (EUR 1 MILLION)
25,0
23,9
25,7
27,0
41,9
54,2
61,4
59,7
57,4
67,5
109,6
‘02
‘03
‘04
‘05
‘06
‘07
‘08
‘09
‘10
‘11
‘12
EMPLOYEES (IN FTE)
142
133
137
143
226
226
231
239
282
286
465
‘02
‘03
‘04
‘05
‘06
‘07
‘08
‘09
‘10
‘11
‘12
Introduction
I
am proud to present the second edition of the DGI Annual Review, one that covers our many achievements during 2012. I see our company changing and evolving to a mature global player in our core markets. We have further developed
ourselves as a professional engineered solutions company; one that develops, manufactures and distributes power, motion and control solutions. The integration of Wilmax and the acquisition of Logan Industries in November 2012 marked significant steps on our path of international growth. With Logan as member of DGI, we now have a strong foothold in all three key geographic hubs for the maritime, offshore and oil & gas industries. With this sound base we are able to maximize our customer services worldwide. Our people’s dedication, their hard work and the strong performance of our core clients resulted in record results over 2012. We were able to grow our revenues to EUR 110 million, compared to EUR 67 million a year ago. As our strategy for 2013 remains unchanged, we will continue to focus on innovative technological solutions, international expansion and broadening our range of specialties, both by means of organic growth and add on acquisitions At the end of the year we have implemented a regional organisation structure, further enabling inter-company technology transfers and global strength as one team. I am pleased to introduce the renewed DGI (Doedijns Group International) branding to our clients; a global brand representing an experienced group of technology innovators. I have seen the dedication and quality of work of our people. With their support, I am confident that we will continue our impressive growth path even further. I feel proud being a part of DGI and very much look forward to continue shaping our business in the years to come to benefit our clients worldwide. Juul IJzermans CEO DGI
DGI - Review 2012
1
Meet dGI
D
GI designs, produces and
Besides this synergy, each member
distributes engineered power,
has developed its own specialty over
motion and control solutions
the years, which enables DGI to jointly
to its clients in the oil and gas
offer added value to clients. Each of the
and maritime industries. DGI is trusted
DGI members is ISO certified and works
by its clients as a solutions provider for
according to stringent, internationally
complete project management and as
recognised quality standards.
an official distributor of a wide range of components from well-known brands.
With the creation of DGI earlier this year, we created a single brand which enables
DGI members include Doedijns, Koppen
us to present customers a complete view
& Lethem, Logan Industries and Wilmax
of the portfolio of solutions offered by
Control Systems. All members can draw
DGI. Customers in all our markets are
on a shared experience in power, motion and control solutions and - thanks to a presence in the world’s major industry
manage entire projects and complete solutions for them instead of working
hubs - are able to respond rapidly to
with individual, single system suppliers.
clients’ needs wherever they may
DGI’s strength is that it offers multiple
occur
2
increasingly demanding parties that can
technologies to customised solutions.
dGI - revIew 2012
eMeA
ApAc
Doedijns’ location in the centre of Europe and its proximity to the
With its headquarters and production facilities in Singapore, as well as
North Sea area is convenient for its clients in the oil and gas and
production and service capabilities in Indonesia and Malaysia, Wilmax
maritime industries. In addition to its headquarters and three further
Control Systems is well positioned in the APAC region. Wilmax has built its
offices in the Netherlands, Doedijns has offices in Belgium, France
own unique products for the market and these products have given them
and Dubai. Doedijns specialties include hydraulic and pneumatic
a reputation as an innovative front-runner within a relatively short period of
system engineering and production, innovative oil filtration
time. Wilmax specialties include wellhead control panels, valve automation
solutions, sampling systems, temperature measurement systems
systems, injection skids, helifuel systems and flooding systems.
and valve automation. Alongside its role as distribution partner for reputable brands, Doedijns has its own range of proprietary technologies under brand names such as SITE, RMF Systems and
AMerIcAs
Thermo Electric. Logan Industries is strategically located in close proximity to Houston, Koppen & Lethem is based in Newark, in the United Kingdom and
Texas the oil and gas capital of the world and adjacent to the Gulf of
is the exclusive distribution partner for a number of well-known
Mexico region. Logan is known as an expert in deepwater solutions
brands such as HAWE Hydraulik and Braden Paccar Gearmatic
with specialties that include hydraulic design, field assistance and repair
Winches. Koppen & Lethem offers complete hydraulic and
capabilities. In addition, Logan has a wide range of proprietary solutions for
pneumatic system solutions in line with DGI Group capabilities
specific applications such as winches, launch and recovery systems, heave compensation systems, tensioners, spoolers and lifting frames.
dGI: an experienced group of technology innovators!
dGI - revIew 2012
3
MAnAGeMent boArd JUUL IJZERMANS, CEO
bachelor degree in Economics and completed post-doctoral Chartered
Mr IJzermans was appointed CEO of Doedijns in 2001. He holds a
Accountant and IT Auditor at the Universities of Groningen and
master’s degree in Chemical Engineering from the TU Eindhoven. He
Amsterdam. The CFO is responsible for finance & accounting, tax &
has a background in engineering, and structured finance. Since starting
treasury, legal & risk management, ICT and facilities. .
his career in 1994, he has held management positions in engineering and sales at Weweler, Geelen Counterflow and Stork Engineers &
MARTIN ROSMOLEN, COO
Contractors. The CEO is Chairman of the Management Board and
Mr Rosmolen was appointed as COO of Doedijns in 2011. He
is responsible for operations, leadership and governance of the
joined Doedijns in 2001 as part of the Thermo Electric acquisition.
Management Board.
Previous positions include MD at Doedijns Instrumentation and Hydraulics. He holds a bachelor degree Mechanical
MARK DE HAAS, CFO
Engineering from the Technical College of The Hague and MBA
Mr de Haas was appointed as CFO of Doedijns in 2011. His previous
from Business School Netherlands. The COO’s responsibilities
positions include CFO at Fairstar Heavy Transport N.V., Corporate
include strategic planning, corporate marketing and the
Controller at Nielsen Company and Consultant at KPMG. He holds a
Operational Excellence project.
4
dGI - revIew 2012
supervIsory boArd
REMKO HILHORST
PETER WIT
GIJS MARBUS
Partner at IK Investment Partners. Mr Hilhorst
Chief Financial Officer of Dockwise since
Associate Director of IK Investment Partners. Mr
joined IK Investment Partners in 2001, prior
2009. Mr. Wit has a master’s degree in
Marbus joined IK Investment Partners in 2008,
to which he worked at HAL Investments
business administration from Groningen
prior to which he worked at Goldman Sachs
in Rotterdam. Mr Hilhorst holds an MA in
University, and a post doctorate degree in
Investment Banking in London. He holds a BSc.
Economics from the University of Amsterdam.
controlling from VU Amsterdam. Prior to
Mechanical Engineering and an MSc. Offshore
joining Dockwise, Mr. Wit was employed by
Engineering from Delft University of Technology.
Royal Dutch Shell plc. in various finance roles in The Netherlands, the UK and Albania.
CHRIS MASEK
JOCHEN WEYRAUCH
Managing Partner and Chairman of the
President and CEO of Schenck Process Group.
Executive Committee of IK Investment
As member of the Board of Carl Schenck
Partners, responsible for Region West
AG from 2003 to 2005, Dr Weyrauch led the
(France, Benelux and Denmark/Norway).
successful MBO of Schenck Process from Dürr
Special focus on investments in Benelux. Mr
AG (owners of Carl Schenck AG) end of 2005.
Masek joined IK Investment Partners in 2000.
With a profound engineering background,
From 1990 to 2000 he worked as a founding
Dr Weyrauch holds a Masters degree in
partner for KPMG Corporate Finance in Paris.
Industrial Engineering from the University of
Mr Masek graduated in 1987 from Institut
Kaiserslautern, Germany and a Doctorate in
d’Études Politiques de Paris and also holds
Engineering from the University of Magdeburg,
a degree in Law from Paris University and
Germany. With a strong strategic and technical
an MA in International Economics from Yale
focus, prior to joining Schenck Process,
University.
Dr Weyrauch held board positions in the automotive and machine building industries.
dGI - revIew 2012
5
strAteGy updAte
S
ervicing key markets and keeping our technology business in sharp focus are two vital areas which underpin our strategic planning. DGI technologies - specialists in power, motion and control solutions
– are integral to our strategy, and will see continued focus on product development and innovation. The forecasts for our key markets in the Oil & Gas and Maritime sector are promising and support our growth plans into 2016. Acquisition of Wilmax in December 2011 was our first international step towards achieving these strategic, long-term goals. The first quarter of 2012 has been dominated by the integration of Wilmax’ activities and aligning them with the DGI-group. To further professionalise the Wilmax organisation, a regional executive team has been assigned, and will implement the roll out of our strategic plans for Asia Pacific. Product combinations within Wilmax and the DGI portfolio will create new sales opportunities in Asia Pacific, as well as Europe, the Middle East and the Americas. Within Europe, our Doedijns businesses have benefited from restructured management which enabled us to better address
the forecasts for our key markets oil & Gas and Maritime are promising and support our growth plan towards 2016
and position all our different fields of expertise. New talents have been brought into the business, creating an élan, and moving the business another step towards internationalisation of DGI. Various business improvement projects have been adopted, based on ‘operational excellence’ and ‘lean’ principles. Doedijns, sales, service and assembly facility in our Middle East and Africa operations have delivered their first tangible results. We recognised the need to connect and train our local staff within DGI subsidiaries and have set up related activities to address this in line with our global business model; servicing our customers with an extensive range of power, motion and control solutions worldwide. Another strategic milestone was marked in November 2012 by the acquisition of Texas-based Logan Industries. Logan
6
dGI - revIew 2012
Industries portfolio of products is a welcome addition to the range of solutions offered by the group, and runs alongside its unique capability to combine mechanical construction engineering with power, motion and control solutions. This combination drives constant innovation; and ensures a winning formula that has proved its success with an impressive offshore client base around the Gulf of Mexico and further afield.
OPERATIONAL EXCELLENCE
I
n January of 2012, DGI kicked off its Operational Excellence projects within its Dutch-based operations. After extensive training sessions, a plot of the core business processes has been designed, monitored and reviewed. Constrictions
or bottlenecks within the business have been identified and
Logan Industries offers the whole DGI group a solid platform
specific improvement actions started to meet each milestone
from which to support the United States-based clientele whilst
case by case. The large number of business and process
benefiting from similar distribution channels facing Asia Pacific
improvements identified has already led to DGI having a better
and European markets.
insight regarding capacity and planning alongside a betterorganised work environment.
DGI created their stable and solid foundations from which the company will continue to grow, autonomously, through
Within DGI, Operational Excellence was embedded within
global account management and the transfer of technologies.
the key values and corporate culture and could, rightly, be
Programs for continuous improvement of operational
classified as phase I. For the Dutch- based Doedijns business,
efficiency, performance and gross margin, define our strategic
operational excellence will now progress to phase II with the
horizon and will remain key issues for management and staff
continuous improvement of individual processes, the alignment
for 2013.
of departments and further optimisation of the external
dGI - revIew 2012
7
business environment experienced
conclusions have been acknowledged
by suppliers and subcontractors. In
and show the importance of
order to roll out the Operational
procurement and logistics, alongside
Excellence program for the entire DGI
the identification of the group spend
organisation, Wilmax and Logan will
matrix. To date, small initiatives in
start with phase I in mid- 2013.
procedures and shifting staff focus have been made. During 2013 we will
SUPPLY CHAIN MANAGEMENT
address our Supply Chain Management processes and procedures. The appointment of a Global Procurement
During 2012, DGI recognised the
Manager, dedicated to the whole
individual, and combined, group
group will ensure interaction between
potential for professional procurement
continents and also improve the
and supply chain initiatives. Logistical
Procurement function within individual
and commercial improvement initiatives
DGI business units. Priorities have
lead to better business positions in
been identified and are classified on
the supply chain, especially within our
operational and strategic level, paired
challenging core markets. This potential
with a support function. We trust that a
has been explored via our database
further professionalisation of the group
and in-company survey, undertaken
in this respect will bring benefits to the
by specialised consultants. Their
entire supply chain we inhabit.
DGI 7 SYNERGY Following the acquisition of Logan, DGI formed the ‘DGI-7 Synergies’ initiative - comprising seven individual targeted synergy-creation items, where product-market-combinations are released into new geographic territories. All projects are honed on clear targets, based on the individual proprietary technologies available within the group and equally distributed worldwide across DGI organisations. This project’s laser focus on global product marketing and cooperation in engineering and operations envisions a satisfied client portfolio.
8
dGI - revIew 2012
dGI - revIew 2012
9
With the acquisition of Logan in November and Wilmax twelve months earlier, we can claim a strong foothold worldwide
10
DGI - Review 2012
Another big stride forward
I
n November 2012, DGI took another important strategic step and acquired Logan Industries, located in close proximity to Houston,
Texas - the oil and gas capital of the world. Logan Industries provides heavy hydraulic equipment and services to the oil and gas market and is a valuable addition to DGI for its highly specialist expertise in providing deep-water solutions as well as its service location which encompasses the Gulf of Mexico
Shayne Babich
region.
CEO Logan
“DGI and Logan have a synergy in the field of engineered
Shayne Babich adds: “The corner-stone of any great business is
hydraulic systems and complement each other in
its people and their commitment to providing the best products
specialist areas, says DGI CEO Juul IJzermans. With
and services. Logan prides itself on the dedication and efforts
the acquisition of Logan in November and Wilmax
of its employees to exceed customers’ expectations and I
twelve months earlier, we can claim a strong foothold
recognise the same dedication within DGI. This was another
worldwide.”
strong signal for us that it was the right thing for our two companies to join forces.”
Shayne Babich, CEO of Logan Industries explains: “DGI came at the right time for Logan, as we were looking for
With Logan’s inclusion into the DGI Group, the company can
a partner to help us respond to the growing demand of
now rely on a strong presence in the world’s major industry
our customers for servicing hydraulic equipment in Asia.
hubs and is able to respond rapidly to clients’ needs – wherever
With DGI’s presence in Singapore as well as being a
in the world they may be. As all DGI Group companies share
solid and reliable partner in hydraulic systems, the choice
the same hallmarks of being specialists in power, motion
to join forces was easily made.”
and control systems from engineering and manufacturing, to implementation and after sales, it is no wonder that DGI is sure
The challenges of drilling oil from ever-greater depths
of its ability to offer significant advantages to its clients.
means that demands on technology are constantly shifting towards more intelligent solutions, that meet strict design and manufacturing parameters. Logan’s long-established quality management system plays a vital role in ensuring stringent guidelines involved with these solutions are met. Logan developed its own technology to deliver high end deepwater hydraulic solutions inhouse and has a 66,000 square foot facility for machining, fabrication, assembly and testing capabilities, which will even double in size and capacity during 2013.
DGI - Review 2012
11
buILdInG LAstInG reLAtIonshIps wIth our cLIents
S
BM Offshore is a leader in floating production and mooring systems for the offshore energy industry. Their fleet of fifteen Floating Production, Storage and Offloading (FPSO) vessels, with two more under construction, all feature Doedijns complete hydraulic power systems.
“Building a long-term relationship is our priority for us when doing business with our customers,” says Oscar Bik, Manager Offshore at Doedijns. “Our relationship
henK ZwAAn service engineer
with SBM Offshore dates back to 2008 and since then, we have successfully serviced equipment and commissioned a number of vessels for the company.”
12
dGI - revIew 2012
delivering excellent service is what I try to accomplish in every project Henk Zwaan, Service Engineer for
track record, and I feel proud of the
our customers that we are capable of
Doedijns explains how important
reputation we have earned with our
handling a wide scale of solutions.”
excellent service is to the success
customers over the years.”
of a project: “I have worked on the
“The reliability of the offloading
commissioning and servicing of several
Oscar Bik concludes: “It is crucial to
systems is important for the FPSO’s and
of SBM Offshore’s vessels - the most
any project that you deliver what you
SBM is pleased with the design and
recent of which was FPSO Cidade
promise and our continuing relationship
manufacturing of the power and drive
de Paraty, where I commissioned the
with SBM means that we have done just
units for the FPSO offloading systems
complete hydraulic power system for
that, and has led to us being involved
by Doedijns, said Anton den Boer,
the winches, including electrical control
in new projects each year. Alongside
Project Manager at SBM Schiedam.
systems, switchboards and manifolds”.
delivering complete hydraulic power systems, we have broadened our
FPSO Cidade de Paraty will enter into
scope with the delivery of hydraulic
production for Petrobras in May 2013
power units and will extend this
with a processing capacity of 120
further in future orders and show all
thousand barrels of oil per day and 5 million cubic metres of natural gas. “Showing Doedijns at its very best, by delivering excellent service is what I try to accomplish in every project”, continues Henk Zwaan, “it is very motivating to receive new orders for complete systems based on our
dGI - revIew 2012
13
shAnthInI sAndrAMohAn project engineer
D
offerInG hIGhLy coMpLeX soLutIons for eLdfIsK II
ragados Offshore runs major projects in the
DGI-member Wilmax Control Systems was commissioned to
construction of production platforms for large oil
design a Jacket Upend Control System (UCS) on ConocoPhillips’
companies in the offshore sector. In July 2012,
Eldfisk II 2/7S Jacket Structure at the Eldfisk Field. The field is
Dragados Offshore assigned a contract to Wilmax
located in the Norwegian sector of the North Sea and Eldfisk
Control Systems, a DGI member, to produce a Jacket Upend
2/7S will be an integrated wellhead, process and living quarter
Control System for ConocoPhillips
platform. It will be bridge linked to the Eldfisk complex and will come into service towards the end of 2014.
14
dGI - revIew 2012
this project is an example of the highly complex solutions we provide to our clients Wilmax project engineer Shanthini
developed the detailed design for the
(up to a depth of 75 metres) to allow easy
Sandramohan explains: “As a project
engineered solution to provide the Deck
management of the hydraulic and electric
team, we are excited to provide this
Control Centre (DCC), Hydraulic Power
connections robust enough to withstand
complex control automation system to
Unit (HPU), Umbilical Storage Winch and
the force and wave slam upon its launch.
Dragados. It is a challenging project as
the Umbilical Interface Panel (UIP) in the
Commissioning will be finished by end
during its seabed installation, the jacket
form of a capsule.
May 2013.
A critical part of the project is the
“This project is an example of the highly
connection of the primary electro-
complex solutions we provide to our
The scope of the project is broad and
hydraulic umbilical and the DCC. The
clients.” says Ms Sandramohan. “Projects
includes design calculations, drawings and
umbilical, DCC, HPU will provide means to
like this allow us to demonstrate our
documentation, provision of all materials,
open and close the valves and to monitor
innovation and leadership in control
manufacture, inspection, non-destructive
the jacket and flotation tank compartment
automation and process packages
examination, trial assembly, testing and
pressures and valve positions. The UIP,
whilst consolidating our position in the
ultimately the commissioning of the UCS
located at the top of the Jacket structure,
marketplace.”
package.
will connect the Jacket hydraulic tube
legs will be flooded to achieve upending and obtain optimum on-bottom stability.”
bundles and electrical cables with the With William Toh, Managing Director
Umbilical transferred from the installation
of Wilmax, working on the conceptual
vessel. The structure was designed with
design himself, the engineering team
a pressure capsule with an IP rating of 68
dGI - revIew 2012
15
Specialist in subsea winch solutions
O
ceaneering International – a marine contracting organisation with their own fleet of Dynamically Positioned Ocean Intervention Multiservice Vessels (MSV’s). The company specialises in running small to medium-sized deep water projects with a primary focus on the installation of subsea tiebacks
in the Gulf of Mexico. DGI member, Logan Industries was commissioned to build a Deep Reach Winch for Oceaneering International to use on board their MSV’s.
The Deep Reach Winch (DRW) is a highly specialised piece of equipment, developed to be used in very harsh, offshore environments. The DRW has a capacity of 7.3MT (16,000 lbs) at depths up to 3,353 metres (11,000 ft) carried on 15 layers of wire-rope and was built by Logan Industries for Oceaneering International to deploy and retrieve
Kenny Rogers
various components on the seabed.
Project Manager
16
DGI - Review 2012
We have built a track record as specialist in sophisticated subsea equipment “Oceaneering first approached us
system (winch, remote control station
Stephen Pfiester, Lead Engineer for
for a much smaller project requiring
and hydraulic power units) and also
Oceaneering says: “It has been a
our expertise in refurbishing some
incorporated a shipping frame where
pleasure working with Logan Industries.
of their existing equipment”, says
the winch could be operated both
They provide a great service and
Logan Project Manager, Kenny Rogers.
within and outside the protective frame.
product from initial design through to
“They were so impressed with how
The success of the winch has resulted
delivery and after sale service. The
we handled that project that they
in multiple orders from Oceaneering
first delivery of winches and HPUs
gave us the opportunity to design and
and has set an industry standard for this
exceeded our expectations in both
build the DRW. We have continued to
type of application.
quality and performance and since
prove ourselves with the DRW which
these first units, we have continued to
has opened the door for yet more
The development of the DRW was
look for opportunities to improve the
projects with Oceaneering and we are
instrumental to Logan Industries
system with subsequent orders. I look
positioning ourselves to be one of their
broadening their range of products into
forward to future projects with Logan
preferred equipment suppliers.”
bigger and more elaborate systems
and believe these will expand beyond
used in deploying some of the most
winches and HPUs.”
Logan worked closely with Oceaneering
sophisticated subsea equipment
to develop the DRW and meet their
available in the industry and positions
strict operational requirements. The
them as premier providers in this
DRW was provided as a complete
specialist area.
DGI - Review 2012
17
With service locations in the three key areas of the world, it is much easier to meet demands for world wide servicing
Global service delivered locally specialists are trained to perform
our quick response time, wherever in
services at locations both on- and
the world we are needed. We aim to
offshore. They are self-supporting and
help our clients within 48 hours and
skilled at installing, commissioning,
are known for our experience in the
inspecting and maintaining a wide
maritime markets and our flexibility to
range of power, motion and control
service at any location.
systems and products. DGI clients value the service and honest advice our
“Knowledge and experience is shared
experienced engineers give them. Upon
between our service team worldwide,”
repair of a system, these engineers will
explains Mr Kruidenier, “we have
advise the client of any other problems
specialists currently working jointly on
which may arise in the near future.
a project in Batan, Indonesia, where
Clients can act upon this advice and
service engineers from Europe and Asia
s an increasing number
prevent any malfunctions, and in that
work together and share specific system
of our customers are
way avoid losses of time and money.”
knowledge. This is how we continue
active around the globe,
DGI clients know that our service
to build the capabilities of our service
demands on our ability to
engineers are available 24/7 and value
engineers for the benefit of our clients.
Aswin kruidenier Service Coordinator
A
offer service wherever it is needed, from commissioning, aftersales to preventative maintenance and delivery of spare parts is continuing to grow.
“As we now have service locations in the three key areas of the world, it is much easier to meet those demands for worldwide servicing,” according to Aswin Kruidenier, Service Coordinator at Doedijns. “In the past we could not compete with service requests from our clients in Asia, as flying an engineer from Europe meant that servicing costs rose well above those offered by a local competitor. Now, we can support our customers through our local Wilmax servicing team in Asia.” All DGI service specialists are highly qualified, well-trained and capable of working in hazardous areas whilst meeting all safety requirements. These
DGI - Review 2012
19
suMMAry of fInAncIALs InTeGraTIOn - We spent a significant amount of time on integrating Wilmax and and Logan into the DGI organisation. Amongst others the financial controls were tightened, we integrated the Dubai operation of Wilmax into Doedijns Middle East and Africa and we made key managerial appointments (CEO& CFO APAC and a new CFO USA) while ensuring the value creation logic for the acquisitions drove the process. PerFOrmanCe CulTure - We strive towards an organisation that takes decisions, is accountable for the outcomes, that fosters an entrepreneurial attitude and takes business planning and performance management serious. During 2012 our reward system has
Another great year for dGI
2
been aligned to reflect the focus on growth and improving performance. This was one just of the levers we used to kick start a process towards a growth and performance oriented culture.
012 was again a great year for DGI, with the combined
reDuCInG Our WOrKInG CaPITal
business demonstrating record performance; in
- Compared to the end of 2011, net working capital of the
revenue, margin and EBITDA. The consolidated
group increased due to the growth of the business. We are
revenues added to EUR 109.6 million. The operating
reducing our working capital requirements as a percentage
result (GAAP EBITDA) was EUR 13.7m. The acquisition of
of sales by focussing on procurement (what we are buying, at
Logan Industries in Houston, which was completed in October
which conditions and when), our project proposals (to include
of 2012, resulted in additional positive result being added to
meaningful milestones) and reducing our inventory.
the 2012 figures. Of the EUR 109.6m revenue, EUR 6m can be attributed to Logan, of the EBITDA of EUR 13.7m, EUR 1.2m
These topics will remain high on our agenda’s, but for 2013
can be attributed to Logan. The EUR 5.9m costs increase was
we are adding another one; transforming our business
mainly due to addition the two months of Logan expenses (EUR
processes to create a lean end-to-end value chain. A number
1.9 million) and higher personnel costs as we welcomed over
of initiatives have been kicked off early in the year; process
a hundred additional FTEs in 2012. This number excludes the
blueprinting, master data management and global ERP, further
additional 77 employees from Logan.
rolling out of “lean”, invest in key account management, CRM and implement a corporate performance tool. This
Even though controlled growth of DGI has become a recurring
demonstrates we are not only “engineering your ambitions”,
theme, growth itself was not our main focus. During 2012 the
we have ambition ourselves; that is to create a strong, world
corporate team invested a significant amount of time on the
class company for all our stakeholders.
following topics; integrating Wilmax Control Systems (and later in the year also Logan Industries), creating a performance
marK De Haas, CFO DGI
culture and reducing our working capital requirements.
20
dGI - revIew 2012
doedIJns Group InternAtIonAL b.v. consoLIdAted stAteMent of IncoMe
2012
2011
revenues
109.637
67.473
cost of goods sold
(65.390)
(37.969)
Gross profit
44.247
29.504
Labour cost
(22.438)
(17.872)
other operating expenses
(6.814)
(4.310)
Acquisition related costs
(1.303)
(1.883)
General and Administrative costs
(30.555)
(24.065)
earnings before interest, taxes, depreciation and amortization
13.692
5.439
depreciation and Amortization
(6.168)
(1.228)
Operating profit (eBIT)
7.524
4.211
net financial Income/ (expense)
(2.739)
(1.401)
-
(191)
Profit before tax
4.785
2.619
Income tax expense
(1.234)
(1.086)
net result for the year
3.551
1.533
(Amounts in thousands of EUR)
results on disposals
dGI - revIew 2012
21
doedIJns Group InternAtIonAL b.v. consoLIdAted stAteMent of fInAncIAL posItIon
2012
2011
33.394
27.616
5.074
3.018
38.468
30.634
Inventories
13.690
17.022
work in progress
11.204
2.542
trade and other receivables
25.903
15.995
cash and cash equivalents
2.341
5.385
53.138
40.947
14.295
11.712
8.401
3.134
other current liabilities
19.931
7.711
Total current liabilities
42.627
22.557
working capital
10.511
18.390
Capital employed
48.979
49.024
34.571
36.744
other non-current liabilities
2.291
3.061
Total non-current liabilities
36.862
39.805
18
18
Legal reserves
(627)
(19)
other reserves
12.771
9.220
Total equity
12.117
9.219
Financing
48.979
49.024
(Amounts in thousands of EUR)
Intangible assets property, plant, and equipment Total non-current assets
Total current assets trade and other payables current portion of borrowings and bank overdrafts
borrowings
Issued share capital
22
dGI - revIew 2012
doedIJns Group InternAtIonAL b.v. consoLIdAted stAteMent of cAsh fLows
2012
2011
operating profit
7.524
4.211
Amortization, impairments, and depreciation
6.168
1.228
Acquisition related costs
1.303
742
(3.097)
(1.546)
11.898
4.635
(2.451)
(926)
paid corporate income tax
(496)
(1.064)
Appropriation of provisions
(50)
(21)
9.001
2.624
(1.166)
(614)
(14.062)
(22.895)
-
270
(15.228)
(23.239)
(4.487)
(3.885)
5.000
39.000
(2.749)
(1.231)
-
(8.600)
3.262
25.284
(2.965)
4.669
(Amounts in thousands of EUR)
cAsh fLow froM operAtInG ActIvItIes
Autonomous movements in working capital Cash flow from operations paid financing cost
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 redemption loans new loans Movements in bank overdrafts dividends paid net cash used for financing activities
net Cash Flow
dGI - revIew 2012
23
customers need to be able to rely on us working consistently to the same standards in each country
worLdwIde stAndArds “As a result of our hard work creating quality processes for our products and systems, whilst maintaining the highest possible safety standards, I am proud that the 2012 audits resulted in zero major nonconformities.� - Quality Assurance Manager, John Heijboer. All DGI businesses are ISO 9001 certified as standards in the market require. Our other certifications include SCC Petrochemical (VCA Petrochemie), ISO 17025 and EN 13980 (ATEX). SCC Petrochemical is the highest possible Dutch standard to ensure safety and health of employees. As our organisation grows more international each year, we focus on maintaining our high standards worldwide and are therefore developing equivalent standards in all our areas of operation. Our customers rely on us to work consistently to the same standards in each country. We have built strong relationships with certifying parties – this has led us to improve our policies and standards continuously, as they advise us on the latest requirements of the market. In 2012 not only have we undergone audits by certifying parties but we have also been inspected by auditors representing our customers, all of which have resulted in zero major non-conformities. This clearly demonstrates that the policies and procedures we have in place are well established and effective. Care for the environment is crucial to all DGI businesses. We endeavour to limit, control and recycle as much of our waste as possible, we work hard to reduce our energy consumption within all our offices, as well as making it a major consideration in our designs and projects. In 2012 we made real progress by implementing the international environmental standard ISO14001 within one of our Dutch businesses. We recently received the certificate for this business and will now work towards achieving it across our other businesses as well. In line with our policy for continuous improvement, we are implementing the adoption of Operational Excellence via Lean Manufacturing processes, and our goals for 2013 will be to modify our manual and work towards achieving ISO14001 certification for our other Dutch businesses. Besides, we will look into other opportunities to improve and develop our safety standards worldwide.
24
dGI - revIew 2012
coLophon CONCEPT, COPY AND COORDINATION: Rianne Duine, Mark de Haas, Martin Rosmolen EDITING: Sallie Taylor DESIGN AND LAYOUT: DUNE advertising agency PHOTOS: Tycho’s Eye + stock photo’s PRINT: Nuance Print
DGI operates from 15 offices around the world. We have a solid basis in the three major industry hubs, Europe/Middle-East/Africa (EMEA), Asia-Pacific (APAC) and the Americas. DGI headquarters is based in Leidschendam in the Netherlands, where we have three further offices and production facilities as well. Other EMEA region offices are located in Belgium, France, the United Kingdom and the United Arab Emirates. In the APAC region we are well positioned with regional headquarters and production facilities in Singapore, as well as production and service capabilities in Indonesia and Malaysia. The Americas region is well covered via a strategic office and production facility in close proximity to Houston, Texas the oil and gas capital of the world and adjacent to the Gulf of Mexico region. For a full list of contact details for all our offices worldwide, please see the Contact page on our website: www.doedijns.com DGI HeaDQuarTers - THe neTHerlanDs - Vlietweg 17G NL - 2266 KA Leidschendam T +31 (0)85 488 13 00 info@doedijns.com www.doedijns.com
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 2012 of Doedijns Group International B.V.
DOeDIJns GrOuP InTernaTIOnal B.V. - Vlietweg 17G 2266 KA Leidschendam, the Netherlands T +31 (0)85 488 13 00 www.doedijns.com