News Archive

In 2009, the global recession had a major impact on the InterrollGroup. As demand declined and projects were postponed or cancelledaltogether worldwide, consolidated sales fell from CHF 357.9 million toCHF 234.0 million, a drop of 34.6 % on the previous, highly successfulyear; in local currency, revenue declined by 31.4 %. In terms ofreporting currency, the consolidated Group turnover contained foreigncurrency losses of 3.2 %, with a further 5 % fall linked to thecollapse in the price of raw materials such as steel and plastics.However, despite the extremely tough market environment and risingpressure on prices, the gross margin (sales revenue less cost ofmaterials, expressed as a percentage of sales) virtually matched thelevel of the previous year (57.8 % compared to 58.8 % in 2008). On theprocurement side, Interroll succeeded in renegotiating conditions withits most important regular suppliers with a view to alleviating thecost situation.

Wecaptured market share and new clients in most markets. In the USA, forexample, margins developed very positively, with business in check-outcounter motors reported to be highly satisfactory. Additional trade wasgenerated with a number of existing clients thanks to new products,which will have a positive effect on business in the medium term.

EBITDA and EBIT
Interroll'sflexible cost structure, together with a cost-cutting scheme introducedat the beginning of 2009, enabled the company to stabilise its EBITDAmargin at 8.0 % in the year under review, despite the sharp fall insales. Earnings before interest, taxes, depreciation and amortisation(EBITDA) stood at CHF 18.8 million, compared to CHF 58.2 million in thevery satisfactory previous year. Earnings before interest and taxes(EBIT) amounted to CHF 3.1 million (1.3 %), compared to CHF 43.4million (12.1 %) in the previous year.

Net profit and cash flow
Atthe end of 2009, net profit stood at CHF 5.7 million, compared to CHF33.8 million for 2008. Operating cash flow amounted to CHF 20.4million, or 8.7 % of net sales (2008: CHF 41.9 million, or 11.7 % ofnet sales).

The Components segment
Interms of local currency, sales for the Components segment fell by 25.6% during financial year 2009. In Group currency, sales amounted to CHF157.9 million, compared to CHF 223.7 million in 2008. The decline insales for the segment - a consequence of the global economic crisis -was shared more or less equally by established markets in the main. Bycontrast, sales were up in new markets such as India, Japan and Brazil.Despite the recessionary climate, the segment achieved satisfactoryoperating EBITDA of CHF 19.6 million, with a margin of 12.3 %.Overheads were reined back at an early stage within the Componentssegment, with the express purpose of relieving pressure on EBITDA. Thisdid not affect investment in strategic projects aimed at long-termgrowth, such as the expansion of the Centre of Excellence for ConveyorRollers and RollerDrives at Wermelskirchen and the development ofinnovative products. At the end of 2009, earnings before interest andtaxes (EBIT) stood at CHF 7.4 million (4.6 %), compared to CHF 28.8million (12.8 %) in the previous year.

The Subsystems segment
In2009, sales for the largely project-dependent Subsystems division fellby 40.3 % in local currency compared to the prior year. In terms ofreporting currency, turnover stood at CHF 76.1 million (against CHF134.2 million in 2008). The figures reflect the unexpectedly highnumber of projects shelved until further notice or abandoned owing tolack of secured financing. There were no earnings before interest,taxes, depreciation and amortisation (EBITDA), following on fromearnings of CHF 17.7 million in 2008; the loss in terms of EBITamounted to CHF 4.3 million; in 2008, a positive EBIT of CHF 14.6million was achieved. Thanks to its stable financial basis, however,Interroll was able to pursue strategic projects in this area (such asinvesting in product innovation).

Financial position and capital expenditure
Interrollhas a sound financial foundation. At the end of the reporting year, thebalance sheet total stood at CHF 215.7 million (2008: CHF 236.8million). Shareholders' equity was CHF 133.0 million at the end of 2009(2008: CHF 130.7 million). In yearly comparison, the equity ratio rosefrom 55.2 % to 61.7 %. Investment for the future amounted to CHF 22.9million in the year under review (CHF 22.4 million in 2008). Mostinvestment was channelled into the scheduled realisation of strategicprojects and areas such as the geographic expansion of the Interrollnetwork, product innovation and introduction of the new ERP system. Inthis way, Interroll reaffirmed its commitment to a strategy oflong-term growth. By the end of 2009, net debt stood at CHF 4.2 million.

Par value reimbursement
Inview of the financial stability of the company and encouragingprospects for the medium term, the Board of Directors will propose apar value reduction from CHF 15.00 to CHF 10.00 per Interrollregistered share to the Annual General Meeting to be held on 7th May2010. The reduction, offered in place of a dividend, will match theprevious year's amount of CHF 5.00 per registered share and will betax-exempt for shareholders in most cases.

Outlook
Interrollexpects the economic climate to remain highly challenging throughoutthe current financial year, with a slight upturn possibly assertingitself in the second half of 2010 at the earliest. However, thanks tothe company's stable financial foundation, we are confident that wewill be able to remain on course as we pursue and conclude strategicprojects linked to innovation, reinforcing the global network andimplementing the new ERP system. In this way, Interroll will adhere toits long-term growth strategy, putting in place the preconditions thatwill enable the company quickly to gain full advantage of freshopportunities that arise from an economic recovery. Interroll will alsosustain the discipline of recent years as regards costs and seek outnew possibilities for raising productivity in all fields of activity.

Profile of the Interroll Group
Interrollis one of the world's leading suppliers of core products for materialshandling, logistics and automation. The Interroll Group employs 1,200people in 28 companies worldwide and is listed on the SIX SwissExchange. Under the umbrella of its strategic holding company locatedin Sant'Antonino, Switzerland, three business units are responsible forall global operations ranging from consultancy to product management,R&D, production, distribution and service. The business unitInterroll Drives & Rollers offers easy-to-install, space-saving keyfunctional units including Drum Motors and powered and non-poweredRollers for transport solutions. The Interroll Dynamic Storage businessunit supplies modules for energy-free flow storage of pallets, totesand boxes. The third business unit, Interroll Automation, providesCrossbelt Sorters, Belt Curves and other easy-to-operate modules with aquick ROI for economical unit handling. Interroll's product and serviceoffering is targeted principally at regional system engineeringcompanies and original equipment manufacturers, system integrators,multinational companies and end-users. Interroll serves more than23,000 customers across all continents.
 
For any questions, please feel free to contact Interroll on 26th March, 2010
between 1:30 p.m. and 2:30 p.m.:
 
Paul Zumbühl, CEO
Tel. +41 91 850 25 24
 
Lorenz Koehler, Head of Corporate Communications
Tel. +41 91 850 25 21
 
www.interroll.com/ir (Investor Relations)
investor.relations@interroll.com
 
Agenda 2010

• Annual General Meeting of Interroll Holding Ltd.:
  Friday, 7th May, 2010, Interroll Holding Ltd., CH-6592 Sant'Antonino/Switzerland
• Half-yearly results: 11th August, 2010

 
Download Financial Report
Key figures 2009