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Record order intake, sales and EBIT

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Interroll Holding AG / Key word(s): Annual Results

18-March-2022 / 06:31 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this announcement.

Sant'Antonino, Switzerland, March 18, 2022. In a dynamic but challenging year, Interroll increased sales significantly to CHF 640.1 million (+20.6% year-on-year). Order intake climbed significantly to CHF 788.4 million (+43.9% year-on-year). Net profit again rose strongly by 12.3% to CHF 80.6 million (previous year: CHF 71.7 million). The Group is cautiously optimistic about the year 2022.

Currency fluctuations had a lesser effect in the reporting year. In local currencies, sales increased by +21.0% and order intake by 44.2%.

Growth in all product groups

In 2021, all product groups developed above the previous year and Interroll produced record volumes of conveyor rollers. Consolidated sales in the Rollers product group amounted to CHF 134.6 million, up +27.0% on the previous year's figure of CHF 106.0 million. Consolidated order intake rose by +45.4% to CHF 156.2 million, well above the previous year's level of CHF 107.4 million.

Consolidated sales in the Drives product group amounted to CHF 191.6 million in fiscal year 2021, up +22.4% on the prior-year period (CHF 156.5 million). Consolidated order intake increased by +55.2% to CHF 244.8 million compared to CHF 157.7 million in the previous year.

The Conveyors & Sorters product group generated consolidated sales of CHF 254.0 million in the 2021 financial year, up +14.7% on the previous year (CHF 221.5 million). At CHF 315.9 million, order intake was +35.7% above the level of the prior-year period (CHF 232.8 million).

In the year under review, Interroll recorded an increase in consolidated sales of +28.3% to CHF 59.8 million (previous year: CHF 46.6 million) in the Pallet Handling product group. Consolidated order intake rose by +43.2% to CHF 71.5 million (previous year: CHF 49.9 million).

Growth at different rates in the regions

Net sales in the Europe, Middle East and Africa (EMEA) region amounted to CHF 334.4 million, up +16.5% on the previous year (CHF 287.0 million). Order intake increased significantly by +38.9% compared to the previous year (CHF 299.9 million) and reached CHF 416.7 million. In terms of order intake, RollerDrive grew by +92.5%, Rollers by +50.6% and Drum Motors by +28.9%.

With a share of 52% of Interroll's total sales, EMEA remains the commercially most significant region within the Group. The requirements placed on suppliers in internal logistics are high. In addition to close customer relationships, industry knowledge and technical solution expertise, they require innovative responses to increasing complexity and new market trends. A new plant in Mosbach, Germany, was put into operation in the middle of the year. Also announced was the expansion of capacities at the site in Baal, Germany, for 2022. Thus, capacities are available for Interroll's future growth in the EMEA region.

Sales in the Americas amounted to CHF 212.8 million, +34.6% higher than in the previous year (CHF 158.1 million). With growth of +57.9% in order intake to CHF 261.5 million (previous year: CHF 165.6 million), strong impulses were noticeable. In particular, sorters (+65.4%) saw another significant increase in order intake, which also included orders for the new innovative High-Performance Crossbelt Sorter (HPCS). These included two major orders from a leading e-commerce platform in North America and from a large fashion company. The orders cover the supply of horizontal and vertical crossbelt sorter solutions for a total of five sites and have a volume in the lower double-digit million range in Swiss francs. Demand for the Modular Conveyor Platform (MCP) showed very convincing growth (+98.1%).

Interroll's sales in the Asia-Pacific region grew by +8.6% to CHF 92.9 million (previous year: CHF 85.5 million). Order intake rose sharply by +33.8% to CHF 110.2 million (previous year: CHF 82.3 million). RollerDrive recorded a very pleasing increase in order intake in the region (+80.0%). Demand for the Modular Conveyor Platform (MCP) also increased significantly (+18.2%). As in previous years, China was the most important market for Interroll in the region. Very positive impetus came in particular from Australia and South Korea, where Interroll recorded a strong increase in sales. From South Korea, Interroll received a major order in the low double-digit million Swiss franc range for the delivery of the Modular Conveyor Platform (MCP) to an e-commerce company in December 2021. The project, a follow-up to earlier large orders, is scheduled for completion by the end of June 2022.

The region is increasingly benefiting from the globalization of the Interroll Group and the expansion and modernization of its own local production facilities. A new, Interroll-owned plant in Suzhou, China, is under construction. Commissioning is scheduled for mid-2022. This will again significantly increase production capacities for the Asia-Pacific region.

Record result

Earnings before interest, taxes, depreciation and amortization (EBITDA) increased again, to CHF 122.5 million (previous year: CHF 115.4 million). The EBITDA margin decreased to 19.1% (previous year: 21.7%). Earnings before interest and taxes (EBIT) reached CHF 99.3 million (+5.6% above previous year with CHF 94.1 million). Net profit again increased strongly, by +12.3% to CHF 80.6 million (previous year: CHF 71.7 million). The net profit margin reached 12.6% (previous year: 13.5%). Operating cash flow decreased to CHF 47.3 million (previous year: CHF 122.9 million). This was mainly due to the uncertainty in the supply chains as well as the availability of materials and the related increased inventory levels.

Solid balance sheet performance

Total assets grew to CHF 538.5 million as of December 31, 2021, 14.9% above the previous year 2020 (CHF 468.8 million). Shareholders' equity increased to CHF 345.4 million, while the equity ratio was 64.1% (end of 2020: 66.5%). Net financial assets decreased by 50.0% to CHF 46.1 million (previous year: CHF 92.2 million). Due to the uncertain supply chains, inventories had to be built up and thus the operating cash flow decreased by 61.5% from CHF 122.9 million (previous year) to CHF 47.3 million. As a consequence, the free cash flow also decreased to CHF -0.8 million in the reporting year (previous year: CHF 74.0 million).

Gross capital expenditures amounted to CHF 51.1 million (previous year: CHF 51.3 million). These include, among other things, the completion of the plant in Mosbach, Germany, as well as the construction progress on the new plant in Suzhou, China, which is scheduled to commence operation in the third quarter of 2022.

Innovation

With the launch of the Split Tray Sorter MT015S in March 2021, Interroll offers a range of automated sorting solutions with a system for a wide range of potential users in the basic segment. The new product makes it easier for companies to enter into e-commerce and can be used as a flexible addition to existing sorting solutions in the fashion industry, the pharmaceutical industry and parcel service providers, for example. The new MX018V Vertical Crossbelt Sorter, which replaces the previous model ST6130, was launched in June 2021. Its conveying speed of the unit loads was increased to up to 1.8 m/s increased compared to 1.6 m/s.

With the new Smart Pallet Mover (SPM), Interroll has launched a solution that has already won two awards. As a flexible and modular pallet management system, it can be adapted as needed to meet a wide variety of material flow requirements in industrial companies.

Positive development of Interroll share price and again increased dividend proposal

With a closing price of CHF 4,105.00 on December 30, 2021, the Interroll share was +52.3% above the year-end price 2020 (CHF 2,695.00). Thus, the Interroll share again significantly outperformed the Swiss indices. The Group's market capitalization thus exceeded CHF 3.3 billion. A dividend of CHF 31.00 per share will be proposed to the Annual General Meeting on May 13, 2022 (+14.8%; previous year: CHF 27.00 per share).

Outlook: cautiously optimistic despite mixed short-term signals

The Group has made a positive start into the financial year 2022. Important key markets, such as Germany, are still suffering from the effects of the COVID-19 pandemic and global supply chain issues. Nevertheless, medium-term market demand for Interroll solutions remains disproportionately strong and Interroll's sustained expansion in the market is accompanied by the need to expand capacity. In addition, Interroll is relying on an expanded technology platform, which 2022 will be supplemented by new solutions for the basic segment and a new generation of belt curves. Although Interroll only generates a very small share of its sales in Russia and Ukraine, the risks have increased with the war and the consequences for the global economy and intra-logistics cannot be assessed at this point in time.

"Interroll is consistently continuing its growth course: In 2022, we will bring very innovative and sustainable solutions to the market," explains Ingo Steinkrüger, CEO of the worldwide Interroll Group. "In addition to our further capacity expansion, we are investing in digitalization and in even more sustainable material-handling solutions."

Development of key figures 2017-2021

In millions of CHF, unless otherwise stated

2021

2020

2019

2018

2017

Order intake/sales

Total order intake

788.4

547.8

546.5

592.6

458.1

Rollers

134.6

106.0

110.1

108.0

105.8

Drives

191.6

156.5

172.4

170.9

146.7

Conveyors & Sorters

254.0

221.5

223.2

220.5

142.6

Pallet Handling

59.8

46.6

54.0

60.5

55.6

Total sales

640.1

530.6

559.7

559.9

450.7

Profitability

EBITDA

122.5

115.4

96.1

93.2

66.3

in % of sales

19.1

21.7

17.1

16.6

14.7

EBIT

99.3

94.1

72.3

69.4

47.4

in % of sales

15.5

17.7

12.9

12.4

10.5

Result

80.6

71.7

56.0

51.8

39.1

in % of sales

12.6

13.5

10.0

9.3

8.7

Cash flow

Operating cash flow

47.3

122.9

99.6

67.4

46.2

in % of sales

7.4

23.2

17.8

12.0

10.3

Free cash flow

-0.8

74.0

66.9

40.9

20.1

in % of sales

-0.1

13.9

12.0

7.3

4.5

Total investment

51.1

51.3

33.6

28.6

25.4

Balance sheet (as of December 31)

Total assets

538.5

468.8

435.1

417.6

355.3

Goodwill

16.7

16.4

17.1

17.3

17.6

Net financial assets

46.1

92.2

76.9

52.0

37.1

Equity

345.4

312.0

304.0

284.8

261.7

Equity ratio (equity as % of assets)

64.1

66.5

69.9

68.2

73.6

Return on equity (in %)

24.5

23.3

19.0

19.0

15.8

Other key figures

RONA (return on net assets, in %)

25.4

30.4

22.6

20.9

16.5

Average number of employees

2421

2206

2284

2198

2067

Sales per employee (in thousand CHF)

264

241

245

255

218

Productivity

2.19

2.30

2.09

2.17

2.02

Investor Relations:
www.interroll.com
investor.relations@interroll.com

Contacts
Ingo Steinkrüger
CEO Interroll Worldwide Group
+41 91 850 26 70


Heinz Hössli
Chief Financial Officer
+41 91 850 25 44


Martin Regnet
Head of Communications & Investor Relations
Via Gorelle 3 | 6592 Sant'Antonino | Switzerland
+41 91 850 25 21
investor.relations@interroll.com

www.interroll.com

Financial calendar 2022

May 13 Annual general meeting

August 2 Publication of the 2021 half-year report and web conference (in English)

Interroll online financial reporting platform
For the reporting year, online versions of the Interroll financial reports are also available via https://www.interroll.com/annual-report are available.

Interroll shares
The registered shares of Interroll Holding AG are traded in the Main Standard of the SIX Swiss Exchange under the security number 637289.

About Interroll
The Interroll Group is the world's leading provider of material-handling solutions. The company was founded in 1959 and has been listed on the SIX Swiss Exchange since 1997. Interroll supplies system integrators and equipment manufacturers with a comprehensive range of platform-based products and services in the categories "Rollers" (conveyor rollers), "Drives" (motors and drives for conveyor systems), "Conveyors & Sorters" (conveyors & sorters) and "Pallet Handling" (pallet conveying and storage). Interroll solutions are used in express and postal services, e-commerce, airports, food & beverage, fashion, automotive and other industries. The company counts leading brands such as Amazon, Bosch, Coca-Cola, DHL, Nestlé, Procter & Gamble, Siemens, Walmart and Zalando among its users. Headquartered in Switzerland, Interroll has a global network of 35 companies with a turnover of 640.1 CHF million and 2,600 employees (2021).


End of ad hoc announcement

Language:

English

Company:

Interroll Holding AG

Via Gorelle 3

6594 S.Antonino

Switzerland

Phone:

+41 91 850 25 25

Fax:

+41 91 850 25 55

E-mail:

investor.relations@interroll.com

Internet:

www.interroll.com

ISIN:

CH0006372897

Valor:

637289

Listed:

SIX Swiss Exchange

EQS News ID:

1305977


End of Announcement

EQS News Service

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