THE AVK GROUP OF COMPANIES AND FINANCIAL REPORT 2013/14

EXPECT
GLOBAL LEADERSHIP
THE AVK GROUP OF COMPANIES
AVK International A/S Glenfield Valves Limited Vatech 2000 ApS AVK VOD-KA a.

Production & Sales Denmark, 100% Production & Sales Scotland, 100% Sales Denmark, 80% Sales Czech Repu

JCH ApS AVK Syddal Ltd. AVK Norge AS AVK Gulf JLT

Production & Sales Denmark, 100% Production & Sales UK, 100% Sales Norway, 100% Sales U

Saudi Valves
Flonidan DC A/S AVK Sverige AB AVK Industrial Pty
Manufacturing Co. Ltd.
Production & Sales Denmark, 50% Production & Sales Saudi Arabia, 100% Sales Sweden, 100% Sales Aust

AVK Valves
Q-Transportmateriel A/S American AVK Co. Indva Sverige AB
Southern Africa (Pty
Production & Sales Denmark, 44% Production & Sales USA, 100% Sales Sweden, 100% Sales South A

AVK Nederland BV AVK Valvulas do Brasil Ltda. AVK Finland AVK Philippines I

Production & Sales NL, 100% Production & Sales Brazil, 67% Sales Finland, 100% Sales The Philippi

AVK Mittelmann
AVK Australia Pty Ltd AVK France S.A.S. AVK Vietnam Co.
Armaturen GmbH
Production & Sales Germany, 100% Production & Sales Australia, 75% Sales France, 100% Sales Vietn

AVK Valves Manufacturing AVK Valves Comp

TEC artec GmbH AVK Belgium NV
Malaysia Sdn. Bhd. Hong Kong Ltd
Production & Sales Germany, 75% Production & Sales Malaysia, 100% Sales Belgium, 100% Sales Hong K

AVK Valves (Shang

Wouter Witzel EuroValve B.V. AVK Valves India Pvt. Ltd. AVK Válvulas S.A.
Co. Ltd.
Production & Sales NL, 91% Production & Sales India, 100% Sales Spain, 100% Sales Ch

Shanghai Water
World Valve B.V. AVK UK Ltd. I.C. Valves Compan
AVK Valves Co. Ltd.
Production & Sales NL, 100% Production & Sales China, 60% Sales United Kingdom, 100% Sales Ch

CYL Knife Valves S.L. Shimizu Kogyo Co. Ltd. Invicta Valves Ltd. AVK Valves Korea Co

Production & Sales Spain, 69% Production & Sales Japan, 40% Sales United Kingdom, 75% Sales Ko

AVK Industrial Val

AVK Armadan Sp. z o.o.
Singapore Pte. L
Sales Poland, 100% Sales Singap

AVK Italy

Sales Italy, 100%

 AVK Holding A /S

.s. AVK Polska Sp. z o.o. InterApp AG Orbinox S.A. AVK GUMMI A/S

ublic, 100% Production Poland, 100% Sales Switzerland, 100% Production & Sales Spain, 65% Production & Sales Denmark, 100%

AVK Sealing Technology

AVK Haut Marnaise S.A.S. InterApp Technics AG Orbinox Comercial S.L.
(Kunshan) Co. Ltd.
UAE, 100% Production France, 100% Production Switzerland, 100% Sales Spain, 52% Production & Sales China, 100%

y Ltd Aqua-Gas Manufacturing Ltd. InterApp Ges.m.b.H. Luca Valves S.L. AVK Tooling A/S

tralia, 56% Production United Kingdom, 100% Sales Austria, 100% Sales Spain, 33,10% Production & Sales Denmark, 100%

Bryan Donkin Valves Ltd. InterApp Italiana S.r.l. Orbinox (UK) Ltd. AVK Components Sp. z o.o.
y.) Ltd.
Africa, 75% Production United Kingdom, 100% Sales Italy, 100% Sales UK, 39,31% Production & Sales Denmark, 100%

AVK Valves (Anhui)

Inc. InterApp Valcom S.A. Damper Technology Ltd. AVK Plastics BV
Co., Ltd.
ines, 100% Production China, 100% Production Spain, 100% Sales UK, 55,25% Production & Sales NL, 90%

AVK Advanced Castings

Ltd. InterApp Deutschland GmbH Damper Technology Canada G+W GmbH
(Anhui) Co. Ltd.
nam, 100% Production China, 66% Sales Germany, 100% Sales Canada, 55% Production & Sales Germany, 90%

pany Premier Valves

Damper Technology India AVK Syntec (Anhui) Co. Ltd.
d. Proprietary
Kong, 100% Sales South Africa, 75% Sales India, 55% Production China, 90%

ghai) Premier Valves

Orbinox Deutshland GmbH AVK Plast A/S
(West Rand)
hina, 100% Sales South Africa, 48% Sales Germany, 65% Production & Sales Denmark, 90%

ny Ltd. PV Engineering Orbi France S.R.L

hina, 100% Production South Africa, 53% Sales France, 33,15%

o., Ltd. PV Process Solutions Orbinox India P.L.

orea, 100% Sales South Africa, 48% Production & Sales India, 63,05%

lves
Cementation Engineering Orbe Canada Inc.
Ltd.
pore, 100% Production & Sales South Africa, 56% Production & Sales Canada, 65%

Orbe Valve Inc.

Sales USA, 65%

Orbinox Valves
(Ningbo) Co. Ltd.
Production & Sales China, 65%

PT Orbinox
South East Asia Ltd.
Sales Indonesia, 39%

Orbinox Brasil Industria e

Comèrcio, Ltda.
Sales Brazil, 65%

Mandrinox

Sales Spain, 65%

 FINANCIAL
NET SALES - MILLION DKK
3,600
3,400
3,200
3,000
REPORT 2013/14
2,800
2,600 Main activities
2,400 The AVK Group is divided into three main business divisions: AVK Water, AVK Industrial Valves
and AVK Advanced Manufacturing. These divisions are built upon the more than 80 operational
2,200
companies in the Group designing, producing and selling our own products into a range of
2,000 business segments.
1,800 AVK Water is serving the markets of water and gas supply, sewage and fire protection with an
extensive product range of valves, hydrants and accessories.
1,600
The AVK Industrial Valves is built upon a number of acquired companies over the last years
1,400 including Orbinox, InterApp and Wouter Witzel. A comprehensive programme of valve solutions
1,200 is marketed to customers within water treatment, power generation, oil&gas, the marine sector,
pulp and paper, mining, the chemical industry, air separation and other segments.
1,000
Advanced Manufacturing comprises companies supplying rubber-, plastic and metal
components to both companies in the Group and external customers in various industries
0 including food, pharmaceutical, transport and wind energy.
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Production and sales take place via the Group’s network of own companies in Europe, the
Middle East, North and South America, Australia, Asia and Africa.
During the past year, Premier Valves in South Africa was acquired. Premier Valves produces and
280
OPERATING PROFIT - MILLION DKK sells valve solutions to the local market and will serve as platform for production of AVK valves
in South Africa.
260
240
Development of key financial figures
220
Net sales continued to show a positive development during the past year, and an increase to
200 DKK 3.5 billion corresponding to a growth rate of 5 per cent was achieved. The sales increase was
supported by growth in many of AVKs markets in spite of the continuous difficult market conditions.
180
Advanced Manufacturing expanded their business considerably in both rubber, plastics and metal
160
components, and also the Industrial Valves companies achieved a positive development in the
140 marine sector, air separation, mining and other segments. The sales of the Water division grew
altogether but the development was more varied across regions with Asia leading the way with
120
strong growth and also Europe developed positively.
100
The Group continued to expand activities across the world with new sales entities in Korea,
80 Singapore and Qatar. A factory was established in Brazil and we are now having local production
in all continents. For Industrial Valves a new sales channel was established, AVK Flow Control,
60 which will offer the full product range of AVK into relevant segments and markets via own sales
40 companies.

20 The operating profit amounted to DKK 269.6 million compared to DKK 216.3 million in 2012/13.
The operating margin improved considerably to 7.8% against 6.5% the year before. Across the
0 Group focus was kept on improving business operations in both supply chain, sales operations and
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back office functions. The optimisation of products to lower costs also made a positive contribution.
An extensive investment programme was carried out during the past year including the new foundry
in Anhui province in China, a factory in Brazil, further development of the Group IT platform, and
EMPLOYEES IN THE AVK GROUP
3,200 an extension of capacity in more factories in Denmark, the Netherlands and China. The focus on
product development to bring new and optimised products to the market was continued.
3,000
2,800
Expected Group developments
2,600
We expect the general investment and activity level of the Group’s markets to continue on the
2,400
same level as in the past year, but we do see improvements in some markets. Growth in the
2,200 mature markets will however mainly be driven by expansion into new products and segments.
2,000 The Group’s presence in the growing markets in Asia, Latin America and Africa will be
continuously expanded, in the form of sales companies and local production. In these markets,
1,800 there is a large need for infrastructure investments within the areas of water and waste water,
1,600 and a growing share of the Group’s turnover is expected to come from these markets in the
years ahead.
1,400
We will continue investing in the improvement and expansion of our production capacity, supply
1,200 chain and IT tools to support both sales and operations. Acquisition of new companies will also
1,000 in the future contribute to further development of the Group.
On the whole, a positive development of turnover, operating profit and net profit is expected in
the coming year.
0
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AVK Group
www.avkvalves.com
Copyright©AVK Group A/S 2014 - December 2014