Corporate | 22 April 2013 09:30

INDUS to accelerate portfolio expansion

INDUS Holding AG / Key word(s): Final Results

22.04.2013 / 09:30

INDUS to accelerate portfolio expansion

– 2012 sales and earnings according to plan
– Stable outlook for 2013

Bergisch Gladbach, April 22, 2013 – SME investment company INDUS Holding AG wants to accelerate its growth in the coming years. At today’s press conference in Düsseldorf, CEO Jürgen Abromeit expressed his satisfaction with business in 2012. ‘Sales revenues of roughly EUR 1.1 billion and an operating result of approximately EUR 106 million mean that our Group reached its earnings targets in what was a rather difficult environment.’

INDUS’ domestic sales revenues declined by approx. 4% in 2012, but this decline was more than offset by dynamically growing export sales. Growth no longer happens in Europe these days but in the emerging countries, primarily in Asia. The Group meanwhile comprises 16 foreign locations and sales revenues outside the EU amounted to almost EUR 300 million in 2012.

Group sales revenues grow moderately; EBIT clearly above the EUR 100 million target
As had been expected, sales revenues were up only moderately on the year 2011 (EUR 1,097.1 million) to EUR 1,105.3 million. Earnings before interest and taxes (EBIT) amounted to EUR 105.7 million (2011: EUR 113.2 million). Net income reached EUR 52.3 million (2011: EUR 55.6 million).

The INDUS portfolio comprises 39 small and medium-sized enterprises operating in five segments. In terms of the EBIT margins, the results in the Construction/Infrastructure, Medical Engineering/Life Science and Engineering segments reached a good to very good level and exceeded the Group-wide 10% target. By contrast, the Management Board was not satisfied with the Vehicle Engineering and Metal Processing segments. ‘While the 5% margin in the Vehicle Engineering segment is well within the usual industry limits, we have more ambitious objectives for our segment,’ said Jürgen Abromeit. INDUS is therefore working to realign this segment and develop segment-specific solutions. The result in the Metal Processing segment was below the prior year level. The temporarily critical CHF/EUR exchange rate had a clearly adverse impact on two companies in this segment. In both segments, high collective pay rises are weighing on personnel expenses. The global economic environment was relatively difficult in 2012. The debt crisis in the USA and the unresolved sovereign debt issue and banking problems in Europe continued to have an adverse impact.

Solid balance sheet ratios improved even further
At EUR 440.5 million, financial liabilities remained more or less unchanged (2011: EUR 434.3 million). Equity climbed again from EUR 382.1 million in the previous year to EUR 410.1 million in 2012. The equity ratio has reached a new high of 39%. Cash and cash equivalents in the amount of EUR 98.7 million (2011: EUR 123.1 million), together with firm loan commitments, will comfortably support the planned growth in the coming years.

‘Kompass 2020’ strategy to accelerate the portfolio expansion
After an extended phase of consolidation, INDUS intends to increasingly internationalise its operations in order to grow and enhance its profitability. According to the Management Board, INDUS is heading for a new development phase. The Group will pursue a strategy of ‘controlled development’, which is summarised under the catchword ‘Kompass 2020’. Going forward, this strategy stands not only for ‘Buy and Hold’ but also for ‘Develop’, which means that the existing portfolio will be expanded actively and aggressively, complemented by selected acquisitions. The primary objective will be to continuously develop the investments through effective investments and innovations, while at the same time pushing ahead the Group’s internal expansion. On the company’s radar are small and medium-sized enterprises which produce engineering-driven niche products and have high technological expertise. For this purpose, INDUS has analysed industrial mega trends and defined four key sectors, namely Medical Engineering, Transport and Logistics, Energy and Environmental Engineering as well as Automation. The takeover of the BUDDE Group in late January 2013 marks the first acquisition in the logistics segment.

Outlook on 2013
Due to the return of the euro crisis, the economic outlook is relatively uncertain at present. INDUS does not expect the economy to recover before the second half of 2013. The Management Board nevertheless believes that INDUS’ consolidated sales revenues will be at least on a par with the previous year, as the industry-specific conditions for the five segments are largely stable and showing a positive trend. ‘We should also benefit from stable material prices,’ said Jürgen Abromeit. ‘By contrast, high pay rises will probably again have an adverse impact. We are concerned about the latest wages policy, as it puts the international competitive advantage of Germany’s SMEs at risk. Bout our ‘specialists in the niche’ are well positioned, which is why we project stable earnings on moderately growing sales,’ said Jürgen Abromeit. INDUS projects consolidated sales revenues of EUR 1.1 billion to EUR 1.3 billion and an operating result in excess of EUR 100 million. The Group also aims to exceed the result of 2012 if possible.

The full annual report of INDUS Holding AG can be downloaded from www.indus.de .

Contact:
Regina Wolter
Corporate Communications & Investor Relations
Phone +49 2204 4000 70
E-Mail wolter@indus.de

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Language:	English
Company:	INDUS Holding AG
	Kölner Straße 32
	51429 Bergisch Gladbach
	Germany
Phone:	+49 (0)2204 40 00-0
Fax:	+49 (0)2204 40 00-20
E-mail:	indus@indus.de
Internet:	www.indus.de
ISIN:	DE0006200108
WKN:	620010
Listed:	Regulierter Markt in Düsseldorf, Frankfurt (Prime Standard); Freiverkehr in Berlin, Hamburg, München, Stuttgart

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