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Euromicron
AG Comm. & control tech.
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Germany
Euromicron AG Communication
& control technology (Euromicron) is a Germany-based provider of network
components based on copper, glass fiber and wireless technology. The Company
also plans, implements and maintains communications, information and security
networks for various applications. Its Components division manufactures
components for optical transmission technology, used in data, communications,
laser, measurement and automation technology. It also produces grinding
machines and dies for the cable and wire industry. The Solutions division
offers solutions for communications and security applications. It is involved
in the planning, installation, system integration, project management,
maintenance and support for a number of applications. The Distribution
division is engaged in the trading and distribution of network components,
consulting and training. As of December 31, 2009, Euromicron AG operated
through 18 subsidiaries located in Germany and Austria.
http://www.euromicron.de
Address
Speicherstrasse
1
Frankfurt,
60327
Germany
+49-69-6315830
(Phone)
+49-69-63158317
(Fax)
Frankfurt am Main | March 27, 2013
27.03.2013 2012 annual financial statements – euromicron lays foundation for Agenda 500
Growth targets achieved: Total operating performance rises by 10% to around €330 million
Structural and
integration measures implemented as planned and managed well in
economic terms: Operating EBIT is €23.0 million (previous year: €30.0
million)
On the way to the Agenda 500 Order books of approximately €130 million are a good springboard for further growth in 2013
By embarking
on the 2- to 3-year build and integrate phase at the start of fiscal
year 2012, euromicron put the focus of its activities, as planned, on
optimizing and consolidating its corporate structures and processes.
This first stage of integration was brought forward and, following
completion of the buy and build phase and the early acquisition of
telent as the first large target in 2011, had become necessary in order
to adapt the Group to the new general conditions as quickly as possible
and to get its structures ready for further growth.
“Our aim with
this is to prepare our company for its next phase of growth and give it
a secure and professional setup as we move to the next plane,” explains
Dr. Willibald Späth. “In 2015 we plan to achieve the final stage of our
15-year strategy of achieving annualized sales of €500 million. So that
we can cope with this ambitious growth, it’s vital for us to adapt
structures, optimize processes and costs, reorganize business and make
our organization even more professional – in short, to put the company
on a new foundation,” adds the Chairman of the Executive Board.
In view of
that, the company has launched a large number of measures in fiscal
2012 as part of the “Agenda 500”, i.e. at the start of the third 5-year
phase in the corporate strategy. They range from location optimization,
reorganization of management structures at the operating companies,
expansion and modernization of the IT landscape, investment in product
innovations, professionalization of the sales team, initiation of
Competence Centers, the setup of operational controlling units to
establishment of a compliance organization.
The first
stage of these extensive measures has resulted in total integration
costs of around €4.5 million. The quality of earnings – with a
consolidated EBIT margin of 5.2% – is lower than in previous years due
to these measures. The minimum sales growth target was achieved despite
the organization’s focus on integration and structuring.
“After buying
telent, we planned for a decline in the quality of our EBIT to a
maximum of 7% and so a lower share of high-margin manufacturing
business relative to total consolidated EBIT for the integration phase
2012-2014 and also communicated that. This trend was bolstered in 2012
by the unforeseen drop in high-margin delivery business as a result of
investments being deferred, in particular by the telecommunications
industry, and consequently an operationally weaker 2nd half of the
year,” states Dr. Späth.
Nevertheless,
the company did not slacken its pace in implementing the planned
integration measures in the course of the year and will continue them
in 2013 so as to prepare itself purposefully for further growth. The
Group has come to terms well with the structural and integration
measures implemented as planned in the fiscal year and posted
respectable figures:
Total operating performance and consolidated sales
In fiscal
2012, the euromicron Group posted a total operating performance of
around €330 million and so, largely like sales, around 10% above the
comparable figure for the previous year (around €300 million). The
euromicron Group generated sales of €330.0 million (previous year:
€305.3 million).
Own work capitalized
Own work
capitalized of €5.6 million grew by €3.7 million over the previous
year’s figure of €1.9 million and reflects the company’s significantly
greater efforts in connection with the development of new products to
secure its market position and increase its innovativeness. Moreover,
the inclusion of the companies acquired in the previous year for the
first time for the year as a whole resulted in an increase in own work
capitalized.
Consolidated income
EBITDA was
€25.0 million (previous year: €30.7 million). Operating EBIT was €23.0
million (previous year: €30.0 million). Earnings before interest and
taxes (EBIT) were €17.1 million (previous year: €24.2 million). The
consolidated EBIT margin relative to sales was 5.2% (compared with 7.9%
in the previous year) following the strong growth in the previous year,
the impact of the consolidation effects in 2012, extensive postponement
of investments in the telecommunications market in the 2nd half of the
year and the generally difficult economic climate. Consolidated net
income was €8.6 million (previous year: €12.2 million). After the issue
of more than 2 million new shares in the years 2010 and 2011, undiluted
earnings per share were €1.29 following €2.32 in the previous year.
Order situation at the Group
New orders in
fiscal 2012 rose by around 6% to €327.8 million (previous year: €309.2
million) despite the tough general economic conditions. Order books
were €125.2 million and so around the good level of the previous year
(€127.5 million). That means euromicron enters fiscal 2013 with
well-filled order books.
Balance sheet structure
Total assets of the euromicron Group at December 31, 2012, rose to €283.9 million or by 7.1% year on year.
Personnel
The euromicron
Group employed 1,699 persons at December 31, 2012. The increase of 244
in the headcount compared with the previous year is mainly attributable
to changes in the consolidated companies.
Equity
Equity at
December 31, 2012, was €119.0 million and so at the level of the
previous year (€120.0 million). The equity ratio was around 42%, still
at a very stable level against the backdrop of the further increase in
total assets and well above the average for the German small and
medium-sized sector.
Finances/liquidity
euromicron’s
partner banks again supported its corporate strategy in fiscal 2012,
proving to be strong and dependable partners. All of the financial
institutes expressed their interest in expanding their commitment at
euromicron as the company grows. Of particular importance for the
company is the statement by all of the financing partners that
euromicron in its entirety is graded as a virtually “risk-free
commitment” – a result of the many years of trusted cooperation and
substantial understanding of the financial partners for the company’s
strategic development.
Share and investor relations
The euromicron
share started the fiscal year 2012 very positively with its admission
to the TecDAX. After publication of the annual financial statements for
the record fiscal year 2011, the share even went as high as €23 at one
stage. Although the restrained trend in operational business against
the background of a turndown in the investment climate resulted in
temporary fluctuations in the further course of the year, the share
proved stable overall and was mostly listed at around the €20 mark
thanks to greater attention for it on the capital market. At December
31, 2012, the share’s market capitalization was €120.9 million, well up
on the previous year (€106.2 million) and the volume of trading in the
share also around 30% higher at 7.4 million (previous year: 5.7
million).
In line with a
sustainable financial policy, the Executive Board and Supervisory Board
will propose a dividend payout to the General Meeting on May 17, 2013,
at a lower level in the years of structuring and integration so as to
ensure that the company has the necessary financial flexibility on its
way to becoming a €500 million enterprise. That also accords with the
long-term objectives of the corporate strategy, which include a
reduction in net financial debt, strengthening of the equity structure
and maintaining the good rating as the basis for trusted cooperation
with financial partners. €0.30 per share is to be proposed as the
dividend for 2012.
Outlook
The focus of
activities in the year 2013 will again be on integration of the
company. The framework of measures initiated in fiscal 2012 will be
expanded further and flanked by appropriate adjustment of the cost
ratios and programs to increase efficiency, with the objective of
giving the company feasible structures for its further growth and the
necessary security and agility.
“As part of
adapting our organizational structures, we will deal in particular with
expanding the Competence Centers we have launched,” explains Thomas
Hoffmann from euromicron’s Executive Board. “Our aim here is to build
important future topics, such as active technology or data centers,
pool them in the overall organization and make them available
comprehensively.”
The company
aims to let specific functions – such as IT or Purchasing – act as a
service function/shared service center in future. Structuring of the
company’s international activities will also be a subject of the 2- to
3-year integration phase. It will also continue its strategy of
acquiring specialized companies in order to round out its expertise and
portfolio in the future.
In view of the
demand for high-speed, state-of-the-art data transmission networks, the
company is excellently equipped to tackle structural changes in the
world of communications thanks to its business model geared to
sustainable growth, clear strategic orientation, operational
competences and skills and a secure basis for financing. “We assume
that, following the operational structuring phase, the phase of
strategic integration of the Group can be accomplished on a strong
economic foundation and that, after the years of integration 2012 to
2014, expansion of our manufacturing activities and optimization of all
internal general conditions, we can again attain the quality of
earnings and dividends we have had all these years,” concludes Dr.
Willibald Späth.
euromicron AG
(www.euromicron.de) is an all-round solution provider for
communications, transport, data and security networks. euromicron’s
network infrastructures integrate voice, video and data transport
wirelessly, via copper cable and by means of fiber-optic technologies.
euromicron builds leading applications, such as security, control,
healthcare or surveillance systems, on the basis of these cutting-edge
network infrastructures.
Founded on its
expertise as a developer and producer of fiber-optic components,
euromicron AG is a strongly growing, highly profitable group that is
listed on the stock market, has a medium-sized character and focuses on
operational growth, integration and further market penetration,
internationalization and expansion.
If you have any more questions, please contact
Dr. Willibald Späth
Chairman of the Executive Board
Ulrike Hauser
Investor & Public Relations
euromicron AG
Zum Laurenburger Hof 76
D - 60594 Frankfurt/Main
Phone.: +49 (0)69 / 631583-0
Fax: +49 (0)69 / 631583-17
E-mail: IR-PR@euromicron.de
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