Komax Holding AG : Year-end results of Komax Group

              Komax Holding AG : Year-end results of Komax Group

Komax Holding AG / Year-end results of Komax Group . Processed and transmitted
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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               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:
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)

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Komax Holding AG
Industriestrasse 6 Dierikon-LU Switzerland

WKN: 1070215 ;ISIN: CH0010702154;