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Objectives and strategy

Hydratec Industries NV is a globally operating, listed technology specialist with two core activities: Industrial Systems and Plastic Components. Hydratec Industries intends to make a sustainable contribution worldwide to the demand for food, health and mobility. This demand is growing rapidly due to global population growth and rising prosperity. Original Equipment Manufacturers in our Systems operations market complete project-based machines under their own brand. Our companies in Plastic Components are suppliers that develop and produce constructive plastic components for Original Equipment Manufacturers. This diversification makes Hydratec Industries agile and able to withstand market fluctuations.

Food

Our companies deliver industrial solutions which help to efficiently provide food and water to increasing numbers of people and animals.

Health

By producing components for medical applications, our companies contribute towards improving our health.

Mobility

Our companies produce plastic components for cars and two-wheeled vehicles, among other things. They reduce the weight, leading to lower fuel consumption and fewer emissions.

Industrial Systems is responding to growing global demand for food and clean drinking water by supplying systems for the poultry, convenience food and pet food sectors and for the production of water supply lines for sanitation and clean water. Because these production systems are innovative, efficient and sustainable, they minimise wastage in production processes. The systems are sold on a project basis worldwide, which means results can fluctuate. This makes their dependency on macroeconomic factors considerable, but also means the risks are well spread.

“We invest a lot of energy in various Operational Excellence programmes to prevent wastage in our customers’ production processes.”

Plastic Components is responding to growing demand for plastic products. Plastic is a relatively new raw material and its uses are developing all the time. These materials’ unique properties mean that they will play a crucial part – as a replacement for metal, for instance – in a more sustainable and raw material-efficient future. The Plastic Components companies are responding to this by producing construction components from plastic for the Food, Mobility and Health markets. Apart from often being weight-saving, the use of plastic also reduces the cost. This helps our company’s customers to attain their sustainability goals. Because the companies are process-oriented, fluctuations are less extreme than in the Industrial Systems’ operations.

Innovation is the key

Hydratec Industries’ independent, versatile companies develop smart products and functions which contribute to customers’ success. We not only improve primary functions, but also logistics, maintenance, design and consultancy. The focus on innovation is an important factor in the success of our companies. Our employees collaborate closely with customers and continually look for ways of improving products and production processes.

Leading positions

Our long-term strategy is for all our companies to contribute to generating consistent growth in terms of revenue and result at least in line with the market. We therefore aim to occupy leading positions in the various markets, which will enable us to generate considerable added value for the end user.

Our far-reaching services lead to substantial customer loyalty. We make the difference for our customers by making use of smart technologies and we are expanding our product range at existing customers. We invest a lot of energy in various Operational Excellence programmes to prevent wastage in our customers’ production processes. The increased importance of sustainability is a focal point. The consequences for the environment and public acceptance of our activities and products play an increasingly important part in everything we and our customers do. We are responding actively to this.

“Our independent, versatile companies develop smart products and functions which contribute to customers’ success”

Independent and agile

The management boards of the companies are responsible for their own operating activities within the agreed framework, and concentrate on their own specific markets. This independence makes the companies agile and innovative. This organisational set-up proved its worth during the Covid-19 pandemic in 2020. Each of our companies was able to adapt to circumstances quickly and in their own way. Furthermore, our structure is cost-effective; there are no central corporate departments, meaning overheads are limited.

The Management Board of Hydratec Industries has regular consultations with the management boards of the operating companies to discuss all aspects of the business and periodic developments of results. These consultations are based on a fixed framework of regular reports including analyses of the key performance indicators. Frequent informal meetings are also held. Strategic market positions and market options are evaluated annually for each company and a SWOT analysis is performed. We take decisions about long-term investments on this basis and set priorities for product market developments. One of our guidelines is a consistent and appropriate return for our shareholders.

Entrepreneurship and ambition

To respond actively to every change and opportunity in the market, it is essential that each of the companies has effective, highly motivated management and employees. ‘The war for talent’ is in full swing and, to meet our growth target, we are paying added attention to finding and keeping good employees, such as by offering internships and graduation placements in our companies on an ongoing basis. We furthermore continually promote employee development, which includes offering education and training. All this takes place on the basis of ambitious, but realistic targets, derived from scenarios which serve as guidelines for all those involved.

Financial targets

We aim for sufficient profitability for all the companies which make up Hydratec Industries. This creates scope for investments and for cushioning setbacks. Unless extraordinary economic conditions occur or organisational adjustments are needed, the target for each company’s operating result is at least 8% to 10% of revenue. In conjunction with the targeted growth for Hydratec Industries and preferred solvency target of at least 30%, we aim for a dividend distribution of at least 40% of the result after tax (excluding any non-recurring income).

Growth

It is our ambition to continue to grow in terms of quality with the companies we have at present. The key drivers for this are world population growth and the innovative power of the operating companies. Our companies operate in small, specialist markets, are close to the market and respond quickly to changes. In addition, we want to expand and broaden our existing activities through acquisitions and joint operations. Our acquisition strategy on the basis of current activities is that of ‘buy and build’. We will dispose of operations which would consistently develop better in other business organisations and therefore have insufficient long-term potential for Hydratec Industries.