Outlook

Marel is targeting 12% average annual revenue growth from 2017-2026 through market penetration and innovation, complemented by strategic partnerships and acquisitions. Marel enjoys a balanced exposure to global economies and local markets through its global reach, innovative product portfolio and diversified business mix.

Marel is committed to its financial targets

In Q2 2022, Marel revised its year-end 2023 financial target to a run-rate of 14-16% EBIT, from the previously stated 16%, allowing for 2% contingency buffer due to volatility in market conditions. Other 2023 financial targets are unchanged, gross profit of around 40%, SG&A of around 18% and innovation at the 6% strategic level.

Market conditions remain challenging due to continued supply chain disruption and inflation at high levels resulting in inefficiencies in manufacturing and aftermarket, and higher costs associated with timely delivery. Marel is targeting a gradual build-up of revenues and operational performance in 2022-2023, based on a strong order book with better price/cost coverage in new orders. Marel is experiencing strong demand for its solutions, software and services driven by an accelerating focus on automation, robotics technology and digital solutions that support sustainable food processing.

In the period 2017-2026, Marel is targeting 12% average annual revenue growth through market penetration and innovation, complemented by strategic partnerships and acquisitions.

Financial targets

Maintaining solid operational performance and strong cash flow is expected to support 5-7% revenue growth on average by acquisition.
Marel’s management expects average annual market growth of 4-6% in the long term. Marel aims to grow organically faster than the market, driven by innovation and growing market penetration.
Management believes that market growth will be at a level of 6-8% in the medium term (2021-2026), due to catch up effect from the past five years and a tailwind in the market.
Marel’s management expects basic EPS to grow faster than revenues.
Recurring revenues to reach 50% of total revenues by YE26, including software, services and spares.
Cash capital expenditures excluding R&D investments are expected to increase to on average 4-5% of revenues in 2021-2026, thereafter, returning to more normalized levels.

Growth is not expected to be linear but based on opportunities and economic fluctuations. Operational results may vary from quarter to quarter due to general economic developments, fluctuations in orders received and timing of deliveries of larger systems.

In the period 2017-2026, Marel is targeting 12% average annual revenue growth through market penetration and innovation, complemented by strategic partnerships and acquisitions.

Financial targets

Marel is targeting 12% average annual revenue growth from 2017-2026 through market penetration and innovation, complemented by strategic partnerships and acquisitions.

Revenue growth
Innovation investment
Earnings per share
Leverage
Dividend policy

Target	Description	FY21	FY20	FY19	FY18	FY17
12% average annual revenue growth in 2017- 2026¹	Maintaining solid operational performance and strong cash flow is expected to support 5-7% revenue growth on average by acquisition. Marel’s management expects average annual market growth of 4-6% in the long term. Marel aims to grow organically faster than the market, driven by innovation and growing market penetration. Management believes that market growth will be at a level of 6-8% in the medium term (2021-2026), due to catch up effect from the past five years and a tailwind in the market. Recurring revenues to reach 50% of total revenues by YE26, including software, services and spares.	9.9%	-3.6%	7.2%	15.4%	7.1%

Target

Description

FY21

FY20

FY19

FY18

FY17

12% average
annual revenue
growth in 2017-
2026¹

Maintaining solid operational performance and strong cash flow is expected to support 5-7% revenue growth on average by acquisition.

Marel’s management expects average annual market growth of 4-6% in the long term. Marel aims to grow organically faster than the market, driven by innovation and growing market penetration.

Management believes that market growth will be at a level of 6-8% in the medium term (2021-2026), due to catch up effect from the past five years and a tailwind in the market.

Recurring revenues to reach 50% of total revenues by YE26, including software, services and spares.

9.9%

-3.6%

7.2%

15.4%

7.1%

¹Growth is not expected to be linear but based on opportunities and economic fluctuations. Operational results may vary from quarter to quarter due to general economic developments, fluctuations in orders received and timing of deliveries of larger systems.

Target	Description	FY21	FY20	FY19	FY18	FY17
~6% of revenues	To support new product development and ensure continued competitiveness of existing product offering.	5.9%	5.6%	6.4%	6.2%	5.6%

Target	Description	FY21	FY20	FY19	FY18	FY17
EPS to grow faster than revenues	Marel’s management expects Earnings per share to grow faster than revenues	12.9 eurocents	13.6 eurocents	15.3 eurocents	17.95 eurocents	13.70 eurocents

Target	Description	FY21	FY20	FY19	FY18	FY17
Net debt/ EBITDA x2-3	The leverage ratio is estimated to be in line with the targeted capital structure of the company.	x1.0	x1.0	x0.4	x2.0	x1.9

Target	Description	FY21	FY20	FY19	FY18	FY17
20-40% of net profit	Dividend or share buyback targeted at 20-40% of net profits. Excess capital used to stimulate growth and value creation, as well as payment of dividends / funding share buybacks.	40%	40%	40%	30%	30%

Disclaimer

This list is provided for informational purposes only and is subject to change. Any opinions, estimates or forecasts regarding Marel’s performance and/or outlook made by these analysts and their respective brokerage firms are not opinions, forecasts or predictions of Marel or its management. By providing the list, Marel does not imply its endorsement of or concurrence with such information, conclusions or recommendations. Marel will not distribute analyst reports. Copies of reports should be obtained directly from the analysts or their brokerage firms.