2013-03-19 07:04:58 -
Komax Holding AG /
Year-end results of Komax Group
. Processed and transmitted by Thomson Reuters ONE.
The issuer is solely responsible for the content of this announcement.
A solid performance under difficult conditions
2012 was a year of many challenges. On the one hand, it was characterized by the
extremely pleasing momentum enjoyed by Komax Wire. Here, we further strengthened
an already good market position by making two acquisitions. On the other hand,
market conditions meant that both Komax Solar and Komax Medtech posted declining
sales, and far-reaching measures had to be taken in response. All in all,
however, Komax performed well last year. Consolidated revenues amounted to CHF
288.2 million. The operating profit (EBIT)
declined to CHF 14.4 million. The
Board of Directors and Executive Committee expect to see a significant
improvement in results in 2013.
Consolidated revenues by the Komax Group amounted to CHF 288.2 million in 2012
(2011: CHF 371.4 million). Of the overall change of -22.4%, the above- mentioned
acquisitions contributed +4.5% and currency influences +1.8%, which means that
internal growth amounted to -28.7% in a year-on-year comparison. The operating
profit (EBIT) declined by 69.8% to CHF 14.4 million (2011: CHF 47.5 million).
However, this figure includes restructuring costs of CHF 1.7 million. In
addition, provisions and allowances were increased by CHF 4.8 million as a
result of existing risks. The EBIT margin amounted to 5.0% (2011: 12.8%). The
currency influence here was equivalent to +0.6 percentage points. Despite the
challenging environment and negative currency developments affecting the
financial result, Group profit after taxes (EAT) came in at CHF 10.0 million
(2011: CHF 39.3 million). Accordingly, basic earnings per share amounted to CHF
2.99 (2011: CHF 11.68).
The Komax Group is still on a very solid financial footing. On the balance sheet
date, shareholders' equity amounted to CHF 244.4 million (2011: CHF 247.0
million) while the equity ratio stood at 67.9% (2011: 68.3%). Free cash flow
increased to CHF 27.6 million (2011: CHF -0.1 million). Net cash stood at
CHF 0.9 million (2011: CHF 5.6 million).
Market position strengthened
Komax Wire was able to build on the good results of the previous year to a
significant extent, and once again posted an excellent result in 2012. The key
end consumer markets such as the automotive, household goods, electronics, and
telecommunication products industries proved stable. A global presence combined
with an outstanding profile in local markets to smooth out the often different
demand trends in the individual regions. Order intake amounted to CHF 231.1
million (2011: CHF 232.3 million), or CHF 214.1 million when adjusted for
acquisitions. Net sales amounted to CHF 228.3 million (2011: CHF 217.8 million),
or CHF 211.5 million when adjusted for acquisitions. EBIT came in at a high CHF
52.7 million (2011: CHF 57.1 million). As part of the growth strategy, market
position of Komax Wire was strongly expanded in the year under review. This was
achieved on the one hand through the acquisitions of TSK Group and MCM Cosmic
KK, which provide growth along the value chain and perfectly complement the
existing product portfolio of Komax Wire. On the other hand, several innovative
solutions became ready for market last year. Moreover, the efficiency and
responsiveness of the organization were further increased through numerous
initiatives.
Measures to improve profitability implemented
Komax Solar and Komax Medtech, by contrast, pursued defensive strategies aimed
at preserving value and steering the two business units out of the loss zone. It
is widely known that the solar industry has been in crisis for a considerable
period of time. As a result of significant surplus capacity among module
producers, order intake of equipment manufacturers recorded a year-on -year
decline of around 90% in 2012. Komax Solar could not escape the consequences of
this collapse. Overall, net sales amounted to CHF 9.9 million (2011: CHF 70.8
million), while EBIT came in at CHF -21.2 million (2011: CHF -3.4 million). This
figure includes restructuring costs of CHF 1.7 million. However, cash flow from
operating activities was even slightly positive. Komax Solar responded with far-
reaching measures, namely reducing headcount by more than 50% in a year-on-year
comparison, closing certain sites, and streamlining the product range. This has
laid the basis for improving the income situation and safeguarding the
competitive position when the anticipated market recovery arrives.
Komax Medtech suffered as a result of reticent investment activity on the part
of numerous customers who postponed projects. As a result, net sales declined to
CHF 49.8 million (2011: CHF 83.8 million). In addition, the proportion of
business with repeat character, which typically generates more attractive
margins, declined in the year under review. This development, together with low
capacity utilization, a negative currency situation, and unexpected additional
expenses incurred on individual projects, ultimately led to a disappointing EBIT
of CHF -8.6 million (2011: CHF 3.8 million). The measures to improve
profitability initiated the previous year were therefore pursued vigorously and
expanded. In addition, Komax Medtech has embarked on a cooperation with a
partner company, and this will provide further impulses to strengthen its market
position.
Outlook
The macroeconomic outlook remains uncertain, and visibility is still poor.
Making predictions for the future is therefore anything but easy. That
notwithstanding, Komax has laid the foundations for the continued growth of
profitability at Komax Wire and a sustainable improvement in the income
situation of the other two business units. As things stand, the Group is set to
deliver a significantly improved year-on-year result in 2013.
Komax Wire
The dynamic growth of the automotive industry, further increases in production
volumes, and the growing trend towards further automation of production
processes and higher quality requirements are all contributing to industrial
investment in the solutions manufactured by Komax Wire. However, visibility in
this area still does not extend more than two to three months into the future.
On the basis of all the information currently available, we are expecting Komax
Wire's net sales in the first half of 2013 to be in the area with those of the
very good first semester of the previous year when adjusted for acquisitions.
Komax Solar
Solar will remain an attractive market in the longer term. However, the major
supply overhang in capacity for solar module manufacturing is preventing a
short-term improvement in the competitive environment, which means that the
investment activity of solar module manufacturers is likely to remain restrained
in 2013 too. As a supplier to solar module manufacturers, Komax Solar is
directly affected and therefore anticipates another difficult year in 2013.
Thanks to adjustments to structures and a dramatically reduced cost base, the
business unit expects a significantly better EBIT figure this year, albeit
without reaching positive territory.
Komax Medtech
Thanks to the pleasing order intake in the fourth quarter of 2012 and the first
few months of 2013, the foundation has been laid for a good start to the current
year. The key factor for success going forward is whether and when customers
place further orders in order to implement anticipated projects. The risk
profile of these projects is appealing, as they involve a high proportion of
business with repeat character. Furthermore, it is expected that the programs
initiated in 2012 to improve operating performance will make a positive
contribution to business in 2013. As an additional factor, collaboration with
Doerfer Companies will enable Komax Medtech to further strengthen its market
position. Subject to these pre-requisites, and based on the assumption that
customers will continue to appraise the market more positively, we are confident
that we can once again generate positive EBIT in 2013.
Payout ratio increased
The Board of Directors would like to adhere to its attractive dividend policy,
and is therefore proposing to the Annual General Meeting a distribution of CHF
2.00 per share from the capital contribution reserve. The payout ratio will
therefore rise in a year-on-year comparison. The dividend yield on the date of
the Board resolution stood at an attractive 2.5%.
Election to the Board of Directors
The generational change on the Board of Directors which began in 2012 will
continue at the 2013 Annual General Meeting. After more than 25 years as a
member, Melk M. Lehner is not standing for re-election. The Board would like to
offer him his gratitude and acknowledgment for the valuable contributions he has
made over many years. In his place, the Board of Directors is proposing the
first-time election of Prof. Dr Roland Siegwart for a three-year term of office.
Roland Siegwart (born 1959) is Vice-President for Research and Commercial
Relations and member of the governing body of the ETH Zurich and Professor at
ETH's Institute for autonomous systems. Roland Siegwart is a globally renowned
pioneer in robotics research.
The Board of Directors is confident that Roland Siegwart will bring his
expertise, broad experience and network to bear in shaping the success of Komax.
Financial calendar
Annual General Meeting 3 May 2013
Dividend payment 10 May 2013
First-half results 2013 20 August 2013
First information on the year 2013 21 January 2014
Media briefing/presentation for analysts of 2013 financial 26 March 2014
statements
Annual General Meeting 7 May 2014
For more information, please contact:
Marco Knuchel Phone +41 41 455 06 16
Head Investor Relations / Corporate
marco.knuchel@komaxgroup.com
Communications
The Komax Group is a global technology company that focuses on markets in the
automation sector. As a leading manufacturer of innovative and high-quality
solutions for the wire processing industry, for the production of modules for
the photovoltaics market and for systems for the manufacture of self-medication
solutions, Komax helps its customers implement economical and safe manufacturing
processes, especially in the automotive supply, solar panel and pharmaceutical
sectors. The Komax Group employs around 1 350 people worldwide and provides
sales and service support via subsidiaries and independent agents in around 60
countries.
Appendix
Key figures of the Komax Group
2012 2011 +/- in %
+--------------------------------------+---------+-----------+-----------+
| | TCHF | TCHF | |
+--------------------------------------+---------+-----------+-----------+
| Revenues(1)) | 288 216 | 371 424 | -22.4 |
+--------------------------------------+---------+-----------+-----------+
| Operating cash flow (EBITD) | 22 924 | 54 906 | -58.2 |
| in % of revenues | | | |
| | 8.0 | 14.8 | |
+--------------------------------------+---------+-----------+-----------+
| Operating profit (EBIT) | 14 352 | 47 536 | -69.8 |
| in % of revenues | | | |
| | 5.0 | 12.8 | |
+--------------------------------------+---------+-----------+-----------+
| Earnings after taxes (EAT) | 10 046 | 39 280 | -74.4 |
| in % of revenues | | | |
| | 3.5 | 10.6 | |
+--------------------------------------+---------+-----------+-----------+
| Free cash flow | 27 627 | -61 | n.s. |
+--------------------------------------+---------+-----------+-----------+
| Research & development | 24 566 | 23 526 | 4.4 |
| in % of revenues | | | |
| | 8.5 | 6.3 | |
+--------------------------------------+---------+-----------+-----------+
+--------------------------------------+---------+-----------+-----------+
| Total assets | 360 189 | 361 448 | -0.3 |
+--------------------------------------+---------+-----------+-----------+
| Net cash | 938 | 5 604 | -83.3 |
+--------------------------------------+---------+-----------+-----------+
| Shareholders' equity(2)) | 244 391 | 246 994 | -1.1 |
| | | | |
| in % of total assets | 67.9 | 68.3 | |
+--------------------------------------+---------+-----------+-----------+
+--------------------------------------+---------+-----------+-----------+
| Headcount 31.12. | 1 330 | 1 140 | 16.7 |
+--------------------------------------+---------+-----------+-----------+
+--------------------------------------+---------+-----------+-----------+
| Information by segment | Wire | Solar | Medtech |
+--------------------------------------+---------+-----------+-----------+
| 2012 | TCHF | TCHF | TCHF |
+--------------------------------------+---------+-----------+-----------+
| Order intake | 231 107 | 9 009 | 47 806 |
+--------------------------------------+---------+-----------+-----------+
| Net sales | 228 255 | 9 873 | 49 804 |
+--------------------------------------+---------+-----------+-----------+
| EBIT | 52 729 | -21 171 | -8 600 |
+--------------------------------------+---------+-----------+-----------+
| 2011 | | | |
+--------------------------------------+---------+-----------+-----------+
| Order intake | 232 319 | 63 742 | 84 371 |
+--------------------------------------+---------+-----------+-----------+
| Net sales | 217 792 | 70 791 | 83 778 |
+--------------------------------------+---------+-----------+-----------+
| EBIT | 57 073 | -3 439 | 3 840 |
+--------------------------------------+---------+-----------+-----------+
(1) )Revenues: Net sales + other operating income.
(2) )Equity attributable to equity holders of the parent company.
+------------------------------------------------+-----------+-----------+
| Key share data | 2012 | 2011 |
+------------------------------------------------+-----------+-----------+
| Share capital 31.12. in TCHF | 344 | 340 |
+------------------------------------------------+-----------+-----------+
| Number of shares 31.12. | 3 443 789 | 3 400 880 |
+------------------------------------------------+-----------+-----------+
| Par value per share in CHF | 0.10 | 0.10 |
+------------------------------------------------+-----------+-----------+
| Market capitalization 31.12. in TCHF | 244 509 | 233 811 |
+------------------------------------------------+-----------+-----------+
| Basic earnings per share in CHF | 2.99 | 11.68 |
+------------------------------------------------+-----------+-----------+
| P/E (price earnings ratio) 31.12. | 23.7 | 5.9 |
+------------------------------------------------+-----------+-----------+
You can obtain further information on our website www.komaxgroup.com. The
complete annual report 2012 can be downloaded at:
www.komaxgroup.com/en/Investors/Reports%20and%20presentations/Fi ..
20reports/
The online version can be found under:
ar.komaxgroup.com
The media release and the annual report can be downloaded from the following
links:
Annual Report (PDF):
hugin.info/100418/R/1685705/552374.pdf
Media release (PDF):
hugin.info/100418/R/1685705/552373.pdf
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Source: Komax Holding AG via Thomson Reuters ONE
[HUG#1685705]
