All three divisions well positioned to benefit from accelerated growth opportunities

Focus at the right time, against background of value creation

 

 

Sjoerd Vollebregt, CEO of Stork: ""Our strategy going forward allows for significant value to be realised within our portfolio of  businesses. Their respective market leadership positions, their current size and Storks' overall financial strength allow each of the underlying businesses to outperform their market growth rates. Within the framework of a continued disciplined operational and financial approach, operational excellence will add to further bottom line growth. We are ambitious in our plans ahead. All businesses operate in well developed markets and are excellently positioned to participate in and benefit from the current market consolidations".

 

In 2003 Stork management has expressed the intention to continue longer term with two, maximum three divisions. The strategy is based on the principal that we want to create the highest value for the company.
 

The past three years show that management has brought focus at the right time, creating optimum value.

Our approach of a logical, sensible and profitable focus was clear at all times

We know our businesses inside out and stand close to our activities. We have demonstrated that the current organisation is well suited to manage and support the operations in creating value; without a doubt the Stork umbrella adds clear benefits. We will not hesitate to bring further focus within the underlying businesses, but all against the background of value creation. Naturally, should circumstances and  the long term outlook change substantially, management will re-evaluate Storks' portfolio strategy. We are against any forced break-up of the company, because this will not bring the highest value for Stork and hence its stakeholders."

 

 

Portfolio of attractive businesses: Stork's three divisions Aerospace, Technical Services and Food Systems all hold leadership positions in the well developed  markets they operate in; each benefits from a  AAA customer base as well as a long standing track record of innovation and technology drive.

 

Accelerated growth opportunities, both autonomous and acquired: given their market leadership positions and competitive advantages, the three divisions are all well positioned to outperform market growth rates. Their respective high cash conversions and sustained financial performances provides each of these  businesses the platform to actively participate in the market consolidations and to further invest in the growth opportunities in their respective markets.  Bolt-on small to medium sized acquisitions will lead to accelerated growth and scale advantages will be further realised and proven practices will be applied to these targets.

 

Risk profile to decrease: the major challenges the businesses face at this moment will reduce over time, in particular in aerospace programmes.

 

Corporate added value:  each of the underlying businesses benefits from Stork's strong brand name and reputation, financial and organizational strength and various corporate initiatives such as centralised procurement, ICT, working capital management and central coordination of production strategies, sourcing and supply chain management.

 

The presentations of today will be webcast on our website www.stork.com.

 

 

Press information:

Stork N.V.

Dick Kors

Tel.: +31 (0)35 - 695 75 75 or (0)6 - 51 98 40 54