The Interroll Group as a whole generated sales of CHF 370.9 million in the 2007 financial year, which corresponds to year-on-year growth of 19 % (2006: CHF 312.0 million). Of this
total increase, 15 percentage points were attributable to organic growth and 4.0 percentage points to acquisitions (the share relating to the recently acquired enterprises BDL and
Werner Motor Company). Order intake also improved and marginally exceeded invoiced sales for the year.
This encouraging business performance was driven in part by favourable economic conditions, as well as by more extensive marketing activities and the launch of new products and
innovations at a global level. The forward momentum generated by the Interroll Group was supported by all product groups and business segments. Recording revenue growth of 31.3 %,
Asia proved to be the most buoyant sales region for the Group as a whole.
Total output, i.e. net sales plus inventory changes plus work performed by the enterprise and capitalised, increased by CHF 62.3 million year on year, or 19.7 % to CHF 378.7
million. The fact that total output was 2.1 % higher than revenue is attributable mainly to the encouraging backlog of orders within the area of Subsystems.
EBITDA and EBIT remain buoyant
Earnings before interest, taxes, depreciation and amortisation (EBITDA) were propelled upwards from CHF 44.4 million in 2006 to CHF 67.5 million in 2007 (+ 51.9 %). In parallel,
the Group's operating margin rose sharply, up from 14.1 % to 17.8 % on the basis of EBITDA and up from 9.7 % to 11.9 % when calculated in terms of EBIT. This was the direct result
of an optimum product positioning, continuing efforts to raise productivity levels, and the benefits of economies of scale at manufacturing level. As was the case in the previous
financial year, the Group had to contend with rising steel prices in the period under review. And yet again our global purchasing strategy for clearly defined material groups
proved highly successful when it came to responding to this situation. At the same time, higher raw-material prices were also passed on to customers insofar as this was possible
within the competitive environment.
Earnings before interest and taxes (EBIT) rose by 47.7 % in the period under review, up from CHF 30.6 million last year to CHF 45.2 million at the end of 2007. For 2007,
amortisation expense relating to acquired intangible assets amounted to CHF 5.8 million. Amortisation periods for these assets are usually between five and ten years.
Net profit and cash flow
In 2007, net profit rose by a significant 66.5 % year on year to CHF 33.7 million (2006: CHF 20.2 million). We have thus consistently recorded double-digit growth rates in net
profit since the year 2000.
Cash flow rose at a more pronounced rate year on year, up by 72.2 % to CHF 68.5 million. In line with our strategy aimed at sustained growth, cash flow is reinvested mainly in
operating activities.
Both segments on the growth track: Components and Subsystems
Of the overall sales revenue generated by the Interroll Group in 2007, totalling CHF 370.9 million, an amount of CHF 235.2 million or 63.4 % was attributable to the Components
segment. Compared with the previous financial year, its sales revenue rose by 19.7 % (12.0 % organic growth). Total output increased from CHF 197.6 million a year ago to CHF 241.0
million at the end of the period under review, which corresponds to a rise of 21.9 %. The Components segment has been recording double-digit growth rates for the past four years,
thus outpacing market growth by a considerable margin.
The Subsystems segment, which significantly expanded its market share, accounted for CHF 135.6 million or 36.6 % of total sales revenue (CHF 370.9 million) generated by the
Interroll Group in 2007. Calculated on this basis, revenue within this segment grew by 17.4 % year on year (2006: CHF 115.5 million). Total output rose by 18.9 % compared with the
previous financial year, up from CHF 118.8 million to CHF 141.3 million.
Capital expenditure and balance sheet
The construction of a new Centre of Excellence for Drum Motors, located in Baal (Germany), together with other equipment introduced for the purpose of raising productivity levels
and expanding production capacity in response to higher demand in the future propelled capital expenditure to CHF 24.0 million at the end of 2007.
Buoyed by higher sales and more expansive investments, the balance sheet total rose year on year and stood at CHF 255.1 million at the end of the reporting period.
Equity reached CHF 124.9 million at the end of the 2007 financial year. At the end of 2007 the equity ratio was 49.0 %. The return on equity grew significantly from 18.9 % to 28.1
% year on year. Return on net assets (RONA) was propelled upwards from 14.1 % in 2006 to 23.0 % in 2007.
Par value repayment
The Board of Directors proposes to the Annual General Meeting on May 9, 2008, a par value reduction from CHF 30.50 to CHF 20.00 per registered Interroll share. The par value
repayment (instead of a dividend) of CHF 10.50 per registered Interroll share is usually tax free for holders of such shares.
Outlook
Our forecast for the current financial year points to less pronounced growth at a global level. Prices for raw materials look set to rise sharply yet again, particularly in the
case of steel, and thus the onus will be on us to raise productivity in order to soften the impact on our internal cost structures. In parallel, higher prices will be passed on to
our customers to the extent that this is deemed feasible within the current market. On the whole, we believe the market environment in which we operate will remain favourable. Our
objective must be to maintain forward momentum and keep costs within the required parameters. Above all, however, we will be looking to establish new products and solutions as
fast as possible, ensure that newly created resources such as the Interroll Centre of Excellence for Industrial Drum Motors are working at full capacity and drive regional market
expansion in line with our overall game plan.
Profile of the Interroll Group
Interroll is one of the world's leading suppliers of components and subsystems for materials handling, conveyor technology, and automation. Under the umbrella of a strategic
holding company located in Sant'Antonino, Switzerland, Interroll's three global business units are responsible for managing the Group's international activities, based on an
incisive strategy in terms of market and product position-ing. Within the Components segment, the business unit "Interroll Drives & Rollers" mainly focuses on assisting
regional engineering companies and original equipment manufacturers. The business units "Interroll Dynamic Storage" and "Interroll Automation", which operate in the Subsystems
segment, are responsible for system integrators, multinational corporations and end-users. Listed on Switzerland's SWX stock exchange, Interroll employs roughly 1300 people in 28
companies worldwide.
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For any questions, please feel free to contact Interroll on 28th March, 2008 between 13:00 and 14:00 hrs:
Paul Zumbühl, CEO
Tel. +41 91 850 25 24
Lorenz Köhler, Head of Corporate Communications
Tel. +41 91 850 25 21
www.interroll.com/ir (Investor Relations)
investor.relations@interroll.com
Agenda 2008
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Annual General Meeting of Interroll Holding AG:
Friday, 9th May, 2008, Interroll Holding AG, CH-6592 Sant'Antonino/Switzerland.
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Half-year results: 12th August, 2008
Download Financial Report
Key figures 2007
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