Media release - half-year results of Komax Group

Komax Holding AG / Media release - half-year results of Komax Group . Processed and transmitted by Nasdaq OMX Corporate Solutions. The issuer is solely responsible for the content of this announcement.

Good first-half results

The Komax Group generated another set of good results in the first half of 2015. Consolidated sales grew by 2.0% to CHF 175.0 million. Operating profit (EBIT) came to CHF 21.4 million (previous year: CHF 22.5 million) and Group profit after taxes rose by 43.4% to CHF 11.8 million. Another good result is expected for the 2015 financial year.

In the first half of 2015, the Komax Group achieved an order intake of CHF 193.9 million (previous year: CHF 176.2 million). Consolidated revenues increased by 2.0% to CHF 175.0 million (previous year: CHF 171.6 million). Internal growth was 4.7% and the currency impact amounted to -2.7%. Operating profit (EBIT) came to CHF 21.4 million (previous year: CHF 22.5 million). The EBIT margin was 12.3%. The currency effect here was -1.9 percentage points. The removal of the cap on the minimum euro-franc exchange rate also left its mark on the financial result, with one-off, non-cash currency losses on loans pushing financial expenses to CHF 6.2 million (previous year: CHF 1.0 million). Since the result from discontinued operations was significantly better than in the previous year, Group profit after taxes (EAT) nevertheless went up by more than 43% to CHF 11.8 million (previous year: CHF 8.3 million).

The Komax Group stands on a very firm financial footing. As at 30 June 2015, shareholders' equity totalled CHF 268.1 million (31 December 2014: CHF 284.2 million). Accordingly, the equity ratio amounted to 70.7%. Free cash flow stood at CHF 8.8 million (previous year: CHF 10.0 million), while net cash was CHF 16.2 million (31 December 2014: CHF 29.2 million).

Komax Wire

In the first six months, Komax Wire benefited from the continuing good demand for automation solutions, which was buoyed by the healthy state of the automotive industry and the trend to drive forward the automation of wire harness production. Global presence, good connections with all leading wire harness manufacturers around the world and good access to local customers also contributed to this success, more than compensating for fluctuations related to the investment cycle. Broad geographical diversification also helped make up for volatile demand in the individual regions and lessen the pressure caused by the strength of the Swiss franc.

In the first half of 2015, the Europe and Africa regions achieved growth in the course of further signs of recovery. Business development in North America was particularly pleasing, too. By contrast, Asia was temporarily unable to match the previous year's results. The Swiss sites also turned in an impressive performance, further improving their already excellent results thanks to economies of scale and the successful implementation of efficiency enhancement programmes. SLE quality engineering is making very gratifying progress, and in partnership with Laselec there are interesting, forward-looking projects underway.

In the first half of 2015, order intake reached CHF 165.5 million (previous year: CHF 144.6 million), while net sales increased by 5.0% to CHF 146.9 million (previous year: CHF 139.9 million). Internal growth amounted to around 10% and the book-to-bill ratio was 1.13. EBIT increased by 4.7% to CHF 28.0 million (previous year: CHF 26.7 million).

Komax Medtech

After a rocky start to the year, order intake at Komax Medtech picked up significantly during the second quarter. Nevertheless, the volatile nature of the order intake and the resulting imbalance in capacity utilization weighed on the results. In addition, the factory at La Chaux-de-Fonds was hit by the strength of the Swiss franc, which has put the site at a competitive disadvantage compared with its foreign competitors. The restructuring announced in March in response to these new circumstances has now been completed. However, it will not start to pay off until 2016.

Order intake amounted to CHF 28.4 million (previous year: CHF 31.6 million), while net sales came in at CHF 28.1 million (previous year: CHF 31.9 million). EBIT declined to CHF -1.8 million (previous year: CHF 0.3 million).

Outlook

We find ourselves in a volatile and uncertain environment. However, the Komax Group is well prepared to deal with this situation thanks to its innovative strength and pronounced customer focus. Nevertheless, the strength of the Swiss franc presents a challenge. We believe we can largely offset the negative effects in the medium term by intensifying the measures aimed at further increasing productivity and efficiency. We will continue to seize any opportunities to further the company's development.

From today's standpoint, we envisage another good result for the Komax Group in 2015.

For Komax Wire, we are not expecting any substantial changes to the market environment in the second half, and are thus anticipating continued strong performance.

At Komax Medtech, we are expecting a higher order intake and improved results in the second half of the year.

The evaluation of the strategic options open to the Komax Group that was announced in March is progressing on schedule.

Financial calendar

For further information, please contact:

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 and systems for the assembly of self-medication instruments, Komax helps its customers implement economical and safe manufacturing processes, especially in the automotive supply and pharmaceutical sectors. The Komax Group employs around 1 550 people worldwide and provides sales and service support via subsidiaries and independent agents in around 60 countries.

Appendix

Key figures of the Komax Group

¹ Revenues: Net sales revenues + other operating income.
² Share of shareholders' equity attributable to the shareholders of the parent company.

Further information can be found on our website www.komaxgroup.com.

The complete Half-Year Report 2015 can be downloaded at:
http://www.komaxgroup.com/en/Investors/Reports-and-presentations/Financial-reports/

The media release can be downloaded from the following link:

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Komax Holding AG
Industriestrasse 6 Dierikon-LU Switzerland

WKN: 1070215 ;ISIN: CH0010702154;