Komax Holding AG : Year-end results of Komax Group 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 CHF14.4 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: CHF371.4 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 CHF14.4 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: CHF39.3 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: CHF247.0 million) while the equity ratio stood at 67.9% (2011: 68.3%). Free cash flow increased to CHF27.6 million (2011: CHF-0.1 million). Net cash stood at CHF0.9 million (2011: CHF5.6 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% in2012. 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: CHF83.8 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: CHF3.8 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 email@example.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: http://www.komaxgroup.com/en/Investors/Reports%20and%20presentations/Financial% 20reports/ The online version can be found under: http://ar.komaxgroup.com The media release and the annual report can be downloaded from the following links: Annual Report (PDF) Media release (PDF) ------------------------------------------------------------------------------ This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: Komax Holding AG via Thomson Reuters ONE HUG#1685705 --- End of Message --- Komax Holding AG Industriestrasse 6 Dierikon-LU Switzerland WKN: 1070215 ;ISIN: CH0010702154;
Komax Holding AG : Year-end results of Komax Group
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