Ackermans & Van Haaren NV (ACKB) Earnings Call Transcript & Summary

Hello. The global economy faces its worst downturn and period of extreme volatility since the Great Depression. The World Economic Forum says that the COVID-19 pandemic threatens to become one of the most difficult tests faced by humanity in modern history. Yet, during these unprecedented times, the diversified AvH model has shown its value and, above all, its resilience. But let me say, first of all, that our primary attention was and is directed towards our 22,000 colleagues and their families worldwide; making sure they stay healthy and were able to continue working from home or in safe conditions; doing our utmost for those colleagues aboard our DEME vessels, who could not return home; or supporting the many brave employees at the Anima Care senior care residences, who gave the best of themselves in helping others, sometimes in harsh conditions. Thanks to the hard work, the creativity and commitment of our management teams and personnel in our group, we realized a sound consolidated profit of EUR 56 million at midyear. All our group companies are financially sound. And at the holding level, we have about EUR 200 million of net cash with no financial debt. The order book at DEME grew to a record level of EUR 4.3 billion. DEME is developing from a pure dredging company to a diversified and innovative marine engineering group, today, with a leading market position towards offshore wind projects, tomorrow, potentially harvesting deep-sea minerals and producing green hydrogen from renewable energy sources. Our clients at Delen Private Bank and Bank Van Breda confirm their confidence in the prudent asset management philosophy of our bankers by entrusting a gross inflow of new money of about EUR 2 billion. The total assets under management amount to almost EUR 50 billion at June 30. Our banks are well capitalized and extremely cost efficient. Although many of our group companies felt the impact of the crisis due to the lockdown measures, the economic and social consequences and the high volatility of the stock and commodities markets, we expect the AvH Group will realize a solid net profit for the full year of 2020. For more financial details about our half year results, I refer you to our website. As a token of confidence in the financial solidity of the group and its long-term outlook, the AvH Board of Directors shall propose the approval of a gross dividend of EUR 2.32 per share, identical to the dividend of fiscal year 2018, at a special shareholders’ meeting to be convened in the fourth quarter. Our sound balance sheets and substantial cash reserves allow us to continue to screen the market for interesting new investments and partnerships, of which we hope to realize one or more in the second half of this year. To all our colleagues in the group, I just want to say thank you. Thank you for your extraordinary work, your resilience and your continuous efforts. I realize we are living uncertain times and certainly uncharted territory that puts a burden on your professional life but even more so on yourself and your family. As the saying goes, times are difficult before they become easy. Now more than ever, we are all more dependent on each other than we have ever been. So please stay safe. Stay healthy. Take care of yourself and each other. Because in the end, it's all about people.