In local currency terms, sales for the reporting year rose 2.4% to CHF 379.9 million (2007: CHF 370.9 million), although when converted to the consolidated group currency,
exchange rate movements led to a fall of 3.5 % from CHF 370.9 million in the record year 2007 to CHF 357.9 million in the year under review. The Group's results in 2008 were
strongly influenced by a surprisingly large increase in the price of steel in the first half-year followed by a further deterioration in the wider economy in the second half.
Total output was down 2% in local currency. This represents a fall of 7.9% from CHF 378.7 million to 348.9 million after translation into the consolidated currency. This downturn
should be seen in the context of an exceptionally successful year in 2007, when a number of major orders led to a particularly large rise in total output. This concentration of
large projects, such as that awarded by the Swiss Post Office, is not usual.
EBITDA and EBIT
Set against the average of recent years, the figure for EBITDA (earnings before interest, taxes, depreciationand amortisation) was perfectly satisfactory at CHF 58.2 million
compared to CHF 67.5 million in the recordyear 2007. Thanks to a strict approach to cost management and the strategic purchasing of materials, the EBITDA margin reached 16.7 %
(2007: 17.8 %). EBIT (earnings before interest and taxes) stood at CHF 43.4 million (2007: CHF 45.2 million). The EBIT margin was up on the previous year at 12.4 % (2007: 11.9
%).
Net profit on record level
Net profit grew by 6% from CHF 31.9 million to CHF 33.8 million, year on year. Cash flow stood at CHF 41.9 million (2007: CHF 68.5 million), equivalent to 12 % of total output.
This was largely due to a levelling off after the unusual concentration of major orders and corresponding advance payments received from customers in 2007. Free cash flow in the
year under review amounted to CHF 18.6 million.
Components segment
The Components segments accounted for CHF 223.7 million or 62.5 % of the total revenue of CHF 357.9 million generated by the Interroll Group in 2008. In local currency terms,
segment revenue showed a modest increase of 0.7 %; following translation into the currency of the consolidated group, this became a fall of 4.9 % (sales revenue 2007: CHF 235.2
million). Total segment output declined from CHF 241.0 million in 2008 to CHF 222.7 million.
The Subsystems segment
At CHF 134.2 million, the Subsystems segment accounted for 37.5 % of the Group's total revenue of CHF 357.9 million for 2008. Segment revenue in Swiss francs was almost on a
par with last year (2007: CHF 135.6 million), although expressed in local currency it showed a rise of 4.8 %. Principally as a result of unfavourable currency movements, total
output was down from CHF 141.3 million in 2007 to CHF 130.5 million. Another factor here was the unusually high level of large-scale orders that led to an above-average figure for
total output in 2007.
Balance sheet and capital expenditure
Capital expenditure in the reporting year on projects for increased productivity of the Conveyor Roller Centre of Excellence in Wermelskirchen (Germany) and other plants and for
launching new products reached CHF 22.4 million. At the end of 2008, the balance sheet total stood at CHF 236.8 million (2007: CHF 255.1 million), with equity of CHF 130.7 million
and an equity ratio of 55.2 % (2007: 49 %). The year-end figure for return on equity was 26.5% (2007: 26.7% ). Net financial debt was reduced over the reporting year, leaving net
financial assets of CHF 4.4 million. All in all, this represents a solid balance sheet for the Interroll Group.
Changes to the Board of Directors
Urs Tanner was elected as a new member of the Board of Directors of Interroll at the ordinary Annual General Meeting on May 9, 2008. As a former CEO and director in the world of
industry, Mr. Tanner, a Swiss national, has considerable experience of business in an international environment.
Par value repayment
The Board of Directors intends to propose a par value reduction from CHF 20.00 to CHF 15.00 per registered Interroll share at the Annual General Meeting on May 8, 2009. The par
value repayment (instead of a dividend) of CHF 5.00 per registered Interroll share is usually tax-free for holders of such shares.
Outlook
As a result of the downturn in the wider economy and the consequent fall in order volumes in the fourth quarter of 2008, we expect the financial year 2009 to be very challenging.
We anticipate a substantial decline in revenue and earnings. With over 23,000 customers on each continent and in every industry, we are in a better position to mitigate the impact
of a further economic downturn. In addition, Interroll's solid balance sheet makes it possible to pursue a strategy of continued strategic capital expenditure and innovation.
Against this background, our task is to gear all our activities even more systematically towards our customers, to keep costs under tight control and make further ongoing
productivity gains in every possible area. As long as we maintain this approach, we are confident that we can remain a solid and reliable partner to our customers even in these
difficult times.
Profile of the Interroll Group
Interroll is one of the world's leading suppliers of core products for materials handling, logistics and automation. The Interroll Group employs 1500 people in 28 companies
worldwide and is listed on the SIX Swiss Exchange. Under the umbrella of its strategic holding company located in Sant'Antonino, Switzerland, three business units are responsible
for all global operations ranging from consultancy to product management, R&D, production, distribution and service. The business unit Interroll Drives & Rollers offers
easy-to-install, space-saving key functional units including Drum Motors and powered and non-powered Rollers for transport solutions. The Interroll Dynamic Storage business unit
supplies modules for energy-free flow storage of pallets, totes and boxes. The third business unit, Interroll Automation, provides Crossbelt Sorters, Belt Curves and other
easy-to-operate modules with a quick ROI for economical unit handling.
Interroll's product and service offering is targeted principally at regional system engineering companies and original equipment manufacturers, system integrators, multinational
companies and end-users. Interroll serves more than 23,000 customers across all continents.
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For any questions, please feel free to contact Interroll on 27th March, 2009 between 1:30 p.m. and 2:30 p.m.:
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 2009
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Annual General Meeting of Interroll Holding AG:
Friday, 8th May, 2009, Interroll Holding AG, CH-6592 Sant'Antonino/Switzerland
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Half-yearly results: 12th August, 2009
Download Financial Report
Key figures 2008
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