Today, Wavin - Jaarverslag.com

Wavin Annual Report 2010 | page 16Business andMarket SummaryMarketsIn Europe construction output declined for the third consecutive year, but the speed of the declinelevelled off and the fi rst signs of stabilisation were seen. Residential construction activity in the Euro-zonedeclined further, with new residential construction accounting fully for this drop, whilst residential Repair,Maintenance and Improvement (RMI) was stable. The drop in residential markets was seen in bothWestern and Eastern Europe. The non-residential markets remained weak throughout the year. The civilengineering market was positive, supported by infrastructure investments in some Eastern Europeancountries. However, they were infl uenced by the announcements of cutbacks in governmental spendingthroughout Europe in the second half of the year.Key figures(€ × 1 million) 2010 2009 CHANGERevenue 1,231.3 1,159.6 6.2%Like-for-like growth 3.1% (22.9%)Ebitda 104.1 110.4 (5.7%)Ebitda margin % 8.5% 9.5%Operating result 37.9 32.9 15.2%Net profit 7.1 1.8 –Earnings per share € × 1 0.11 0.00 –Dividend € × 1 0.00 0.00 –First signs ofmarketstabilisation; solidrevenue recoveryWavin in 2010In these market conditions Wavin showed solid revenue recovery. Double-digit growth was recordedin Scandinavia and the UK, as well as in some larger emerging markets, like Poland and Turkey.Developments in the Netherlands, Italy and some smaller Eastern European countries weredisappointing.Below ground activities picked up well following a slow start due to heavy winter conditions. Aboveground building performance was less affected by these climate conditions, showing recovery from2009.Following a period of managing the business through the credit crisis in which we reduced headcount byover 1,600 FTEs and realised cost savings ahead of € 40 million, we could again give full attention tosustainable growth and profi tability. We launched ‘Wavin 2015’, the company’s strategy for the period2011-2015 which has as its core elements local market leadership, a complete product portfolio,European market coverage, Group-wide innovation and an effi cient manufacturing footprint and supplychain. We implemented several organisational changes in the second half of the year. The ManagementBoard is limited to three members from four and we reorganised both our regional structure and ourbusiness unit structure.To accelerate product innovation and increase the speed to market, the Marketing & Technologydepartment was established. The benefi t to our customers will be a more comprehensive productportfolio, offering integrated systems and solutions providing answers to today’s advanced buildingrequirements.In 2010 we continued to focus on a number of key growth areas. Additional investments were madein our Water Management and Surface Heating & Cooling solutions that address to current sustainabilityissues. We also put more emphasis on sustainability in operations, increasing the usage of recycled PVCin non-pressure applications, and installing energy-effi cient manufacturing systems across the Group.Further progress was made in complexity reduction. Product portfolio rationalisation resulted inproduction reallocations which helped us to further optimise our manufacturing footprint.