Media release - year-end results of Komax Group

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

Significant improvement in results

2013 proved to be both challenging and successful. Komax Wire was again able to build on the good results of the previous year, while Komax Medtech and Komax Solar recorded a pleasingly strong improvement in their operating results. In addition, we have set the future course of our business on a new path through our decision to sell the Solar business and focus the Group more strongly on the high-income business of Komax Wire. Revenues increased by 18.5% to CHF 341.7 million and EBIT increased by an impressive 144.0% to CHF 33.2 million. The Board of Directors and Executive Committee expect to achieve another good result in 2014.

The Komax Group's consolidated revenues increased to CHF 341.7 million in 2013 (2012: CHF 288.2 million). The overall growth rate of 18.5% was split by acquisition effects (+7.0%), currency effects (+0.1%) and internal growth of +11.4%. The operating profit (EBIT) increased by an impressive 144.0% to CHF 33.2 million (2012: CHF 13.6 million). Corporate costs declined by CHF 1.9 million, primarily as a result of lower pension obligations under IAS 19. On the other hand, the operating result was impaired by significant writedowns on customer receivables as well as expenditure in connection with the sale of the Solar segment amounting to around CHF 4.5 million. Nonetheless, the EBIT margin reached 9.7% (2012: 4.7%). The currency effect here was equivalent to -0.1 percentage points. Group profit after taxes (EAT) rose by 166.6% to CHF 25.1 million (2012: CHF 9.4 million). Basic earnings per share therefore increased to CHF 7.33 (2012: CHF 2.81).

The Komax Group has a very strong financial footing. As at the balance sheet date, shareholders' equity was CHF 264.0 million (2012: CHF 236.1 million) while the equity ratio stood at 73.8% (2012: 65.7%). Free cash flow totalled CHF 24.5 million (2012: CHF 27.6 million) while net cash increased to CHF 22.6 million (2012: CHF 0.9 million).

Wire persistently strong
Komax Wire enjoyed another very good year. Thanks to broad geographic diversification, the business unit was able to compensate for weaker market development in certain regions and benefit from the flourishing automotive markets in the US and China. In the cyclical automotive business, the business unit's global presence once again paid off. Other end consumer markets such as the household goods, electronics and telecommunication industries likewise displayed robust development, albeit without matching the momentum of the automotive industry. At CHF 268.9 million (CHF 248.6 million after adjustment for acquisitions), order intake remained at a high level (2012: CHF 231.1 million). Net sales came in at CHF 253.8 million (2012: CHF 228.3 million), or CHF 233.6 million after adjustment for acquisition effects. EBIT amounted to CHF 47.4 million (2012: CHF 52.7 million). The partnership with the recently acquired companies is progressing well.

We are not concerned by the lower margin compared to the previous year. Our decision to drive forward business growth and exploit opportunities as they arise has led to temporary pressure on margins. The reasons for this decrease include the generally lower margins that the acquired companies currently have, higher investment in research and development, increased marketing expenditure and changes in the customer mix.

Medtech enjoying an upturn, Solar holding up well
After the disappointing results of the previous year, Komax Medtech was able to improve its result considerably. A large number of orders that had been postponed in 2012 were finally given the green light during the year under review. In addition, a number of other lucrative projects were acquired. The number of repeat projects as a proportion of the overall volume increased once again. Given the relatively high proportion of value creation in Switzerland, however, Komax Medtech continues to suffer from the effects of the strong Swiss franc when competing for business with its international competitors. Order intake increased by 56.9% to CHF 75.0 million (2012: CHF 47.8 million). Net sales totaled CHF 68.1 million (2012: CHF 49.8 million) while EBIT increased sharply by 135.5% to CHF 3.1 million (2012: CHF -8.6 million).

Solar module manufacturers continued to suffer from excess capacity. Furthermore, numerous producers were heavily indebted and unable to invest. The demand for new production equipment was accordingly modest in 2013. Despite this difficult environment, Komax Solar performed well. The order intake increased to CHF 24.4 million (2012: CHF 9.0 million) and net sales came in at CHF 20.2 million (2012: CHF 9.9 million). At the same time, EBIT improved from CHF -21.2 million to CHF -9.7 million.

Outlook
We continue to expect an economic environment that is characterized by uncertainty, and envisage a year full of challenges. We will meet these challenges with a focused strategy that is geared to resolutely pursue opportunities.

From today's standpoint, the Group expects to build on the success of the previous year and achieve another good result in 2014.

Komax Wire

The demand for Komax solutions is favoured by the persistent dynamism of the automotive industry, the ongoing trend towards automation of production processes, and the higher quality demands that vehicle manufacturers are placing on their suppliers. However, visibility in this area does not extend more than three months into the future at most.

On the basis of the information currently available, Komax Wire is expecting net sales for the first half of 2014 to be broadly on a par with the very strong first semester of the previous year when adjusted for acquisitions.

In 2014, Komax Wire will continue to invest in innovation, marketing and market development in order to preserve its unique market position and strengthen its competitiveness.

Komax Medtech

Komax Medtech started 2014 with a strong order book, and order intake in the first few weeks of the year was in line with expectations. These orders reveal a balanced mix of projects with repetitive nature and projects involving new customers or applications. Nonetheless, the risks inherent to the systems business are still present.

Given the prevailing parameters, we believe Komax Medtech will build on the success of 2013 this year. For the first half of 2014, we expect a positive EBIT.

Komax Solar

There is no doubt that the photovoltaic industry will retain its appeal in the long term.

However, as announced back in August 2013, Komax is willing to sell the solar business and is currently in contact with interested parties.

Dividend increased
The Board of Directors is adhering to its attractive dividend policy, and will propose to the Annual General Meeting of 7 May 2014 a distribution from the capital contribution reserves of CHF 4.50 per share (2012: CHF 2.00). The payout ratio is therefore 63%. The dividend yield on the date of the Board resolution stood at an attractive 3.2%.

Elections to the Board of Directors and Remuneration Committee
The generational change on the Board of Directors will continue at the 2014 Annual General Meeting. Max Koch is not standing for re-election. The Board would like to offer him its sincere gratitude and acknowledgement for the extremely valuable contributions he has made over many years. The Board of Directors of Komax Holding AG will propose David Dean (born 1959) as a new Board member at the next Annual General Meeting on 7 May 2014. David Dean has been CEO of the Bossard Group since 2005. He was the company's CFO from 1998 to 2004, and its Corporate Controller before that. David Dean is an expert in accounting and controlling. He holds a federal diploma and is a certified accountant. Furthermore, he has completed management training at Harvard Business School and IMD Lausanne.

The Board of Directors is confident that David Dean will prove to be a valuable new member. He has extensive knowledge of accounting, strong leadership skills and a proven track record in managing a listed company. From the Board of Directors' perspective, this makes him a suitable person to shape the Komax Group's future success.

With the entry into force of the Ordinance against Excessive Remuneration in Listed Com-panies as per 1 January 2014, the Chairman and the members of the Board of Directors as well as members of the Remuneration Committee will be elected as of this year.

Adjustments to the company's Articles of Association to the Ordinance against Excessive Remuneration in Listed Companies
The necessary adjustments to the company's Articles of Association - the result of the Minder Initiative accepted by the Swiss electorate in March 2013 and the Ordinance against Excessive Remuneration in Listed Companies - will be put to a vote at the next Annual General Meeting of 7 May 2014. We are endeavoring to implement these requirements in a pragmatic way that takes account of the interests of our shareholders, does not diminish the attractiveness of the company, and guarantees the company's legal security. We believe we have a comprehensible compensation system that is conducive to appropriate yet attractive remuneration in line with the market. Shareholders will be able to vote on this system for the first time at the 2015 Annual General Meeting.

Financial calendar Annual General Meeting 7 May 2014 Dividend payment 15 May 2014 First-half results 2014 19 August 2014 First information on the year 2014 20 January 2015 Annual media conference/analysts' presentation 24 March 2015 Annual General Meeting 8 May 2015

For more information, please contact:

Marco Knuchel Phone +41 41 455 06 16 Head Investor Relations / Corporate Communications marco.knuchel@komaxgroup.com

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 1 400 people worldwide and provides sales and service support via subsidiaries and independent agents in around 60 countries.

Appendix

Key figures of the Komax Group

201320121)+/- in % TCHF TCHF Revenues2) 341 669 288 216 18.5 Operating cash flow (EBITD)
  in % of revenues 43 766 22189 97.2 12.8 7.7 Operating profit (EBIT)
  in % of revenues 33 224 13 617 144.0 9.7 4.7 Group profit after taxes (EAT)
  in % of revenues 25 129 9 426 166.6 7.4 3.3 Free cash flow 24 545 27 627 -11.2 Research and development
  in % of revenues 27 048 24 633 9.8 7.9 8.5 Total assets 357 591 359 533 -0.5 Net cash 22 616 938 n.s. Shareholders' equity3) 263 985 236 111 11.8   in % of total assets 73.8 65.7 Headcount as at 31 Dec. 1 381 1 330 3.8 Information by segmentWireSolarMedtech2013 TCHF TCHF TCHF Order intake 268 895 24 379 74 999 Net sales 253 782 20 206 68 133 EBIT 47 388 -9 746 3 053 2012 Order intake 231 107 9 009 47 806 Net sales 228 255 9 873 49 804 EBIT 52 729 -21 171 -8 600 Key data Komax registered share20132012 Share capital as at 31 Dec. in TCHF 352 344 Number of shares as at 31 Dec. 3 523 780 3 443 789 Par value per share in CHF 0.10 0.10 Market capitalization as at 31 Dec. in TCHF 476 767 244 509 Basic earnings per share in CHF 7.33 2.811) P/E (price-earnings ratio) as at 31 Dec. 18.5 25.31)

1) Prior-year figures restated owing to application of IAS 19 (revised).
2) Revenues: Net sales + other operating income.
3) Equity attributable to equity holders of the parent company.

You can obtain further information on our website www.komaxgroup.com.

The complete Annual Report 2013 can be downloaded at:
http://www.komaxgroup.com/en/Investors/Reports-and-presentations/Financial-reports/

The online version can be found under:
http://ar.komaxgroup.com/?id=gb2013

The media release can be downloaded from the following link:

Short report (PDF)
Report (PDF)
Media release (PDF)


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Source: Komax Holding AG via Globenewswire
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Komax Holding AG
Industriestrasse 6 Dierikon-LU Switzerland

WKN: 1070215 ;ISIN: CH0010702154;