Quarterly Report • Aug 12, 2010
Quarterly Report
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| Figures in million euros | Jan. – June 2010 | Jan. – June 2009 | Change in % | April – June 2010 | April – June 2009 | Change in % |
|---|---|---|---|---|---|---|
| Sales | 239.6 | 231.3 | 3.6 | 124.4 | 113.6 | 9.5 |
| Lasers & Optical Systems | 92.9 | 74.1 | 25.4 | 47.7 | 37.2 | 28.2 |
| Metrology | 43.4 | 48.0 | – 9.6 | 23.4 | 23.7 | – 1.3 |
| Defense & Civil Systems | 103.2 | 105.2 | – 1.9 | 53.3 | 50.8 | 4.9 |
| Others* | 0.1 | 4.0 | – 97.5 | 0.0 | 1.9 | – 100.0 |
| EBITDA | 23.4 | 15.0 | 56.0 | 13.0 | 7.3 | 78.1 |
| Lasers & Optical Systems | 12.4 | 1.9 | 552.6 | 5.9 | 0.0 | |
| Metrology | 0.9 | – 1.2 | 175.0 | 1.1 | – 0.1 | 1.200.0 |
| Defense & Civil Systems | 8.7 | 11.4 | – 23.7 | 5.3 | 4.8 | 10.4 |
| Others* | 1.4 | 2.9 | – 51.7 | 0.7 | 2.6 | – 73.1 |
| EBIT before one-off effects | 10.5 | 3.3 | 218.2 | 6.4 | 2.9 | 121.2 |
| Lasers & Optical Systems | 7.2 | – 3.0 | 340.0 | 3.3 | – 1.1 | 400.0 |
| Metrology | – 1.0 | – 3.9 | 74.4 | 0.0 | – 1.5 | 100.0 |
| Defense & Civil Systems | 5.5 | 6.9 | – 20.3 | 3.8 | 2.4 | 58.3 |
| Others* | – 1.2 | 3.3 | – 136.4 | – 0.7 | 3.1 | – 122.1 |
| EBIT margin before one-off effects** | 4.4 % | 1.4 % | 5.2 % | 2.6 % | ||
| Lasers & Optical Systems | 7.8 % | – 4.0 % | 6.9 % | – 4.6 % | ||
| Metrology | – 2.3 % | – 8.1 % | 0.0 % | – 7.6 % | ||
| Defense & Civil Systems | 5.3 % | 6.6 % | 7.1 % | 3.9 % | ||
| One-off effects | 0.0 | – 7.9 | 0.0 | – 7.9 | ||
| EBIT | 10.5 | – 4.6 | 327.2 | 6.4 | – 5.0 | 228.3 |
| Earnings before tax | 4.4 | – 11.3 | 138.9 | 3.7 | – 8.4 | 144.0 |
| Earnings after tax | 3.5 | – 11.1 | 131.5 | 3.1 | – 8.4 | 136.9 |
| Order intake | 300.2 | 218.1 | 37.6 | 154.6 | 108.2 | 42.9 |
| Lasers & Optical Systems | 106.6 | 80.1 | 33.1 | 50.4 | 38.2 | 31.9 |
| Metrology | 70.9 | 40.1 | 76.8 | 30.5 | 20.2 | 51.0 |
| Defense & Civil Systems | 121.8 | 94.3 | 29.2 | 73.0 | 47.9 | 52.4 |
| Others* | 0.9 | 3.6 | – 75.0 | 0.7 | 1.9 | – 63.2 |
| June 30, 2010 | Dec. 31, 2009 | June 30, 2009 |
|---|---|---|
| 398.4 | 339.4 | 374.6 |
| 72.8 | 59.9 | 66.9 |
| 49.6 | 21.9 | 27.3 |
| 277.9 | 260.2 | 281.1 |
| – 1.9 | – 2.6 | – 0.7 |
| 3,069 | 3,268 | 3,354 |
| 1,224 | 1,284 | 1,349 |
| 635 | 769 | 791 |
| 1,060 | 1,077 | 1,079 |
| 150 | 138 | 135 |
* Others includes holding, SSC, real-estate, consolidation. ** EBIT as % of sales
EBIT, EBITDA and EBIT margin cannot be compared with the figures for the previous year (see page 6).
See Development of orders – Page 7.
See Development of the key performance indicators – Page 7.
See Forecast report – Page 16.
As an integrated optoelectronics group Jenoptik operates in the following five divisions
These five divisions are organized into the Lasers & Optical Systems, Metrology and Defense & Civil Systems segments and so correspond to the segment reporting.
Jenoptik is primarily a supplier of capital goods and a partner for industrial companies. In the Traffic Solutions and Defense & Civil Systems divisions we are also a major supplier to the public sector both directly as well as indirectly through system integrators. We do not focus on consumer markets.
The product portfolio extends from complex systems, industrial facilities and production lines, to modules and subsystems, through to components. The Jenoptik Group also successfully markets comprehensive total solutions and/or operator models comprising the integration of systems and facilities and corresponding networks, as well as project management, data processing and after-sales.
Our key markets primarily include security and defense technology, the aviation and aerospace markets as well as traffic solutions, the automotive and machine construction industry, medical technology as well as the semiconductor and photovoltaics industry.
The development of the capital market in the 1st half-year 2010 was shaped by a continuing recovery in the global economy but also by the debt problems in the euro region, a weaker euro as well as increasing concerns about the continuing prospects for economic development, particularly in the 2nd quarter. The Dax, the leading German index of equities, lost around 1.4 percent in the first six months of 2010, falling from 6,048.30 points on January 4, 2010 to 5,965.52 points on June 30, 2010. The TecDax posted an even sharper fall of around 12 percent. It was down from 834.46 points at the start of the year to 734.48 points at the end of the 1st half-year.
The Jenoptik share was also trading 6.2 percent lower as at the end of the first half-year. The first closing price on January 4, 2010 was 4.21 euros. After a rise in the share price up to mid March the share subsequently fell in line with the market, closing on June 30, 2010 at 3.95 euros. Up to August 10, 2010 the Xetra closing price rose to 4.63 euros, an increase of almost 10 percent compared with January 4, 2010.
On March 10, 2010 Jenoptik carried out a 10 percent capital increase. Approx. 5.2 million shares were issued to institutional investors as part of an accelerated placement process, with the shareholders' subscription right excluded. The placement price was 4.25 euros. The proceeds of approx. 22 million euros are to be used not only to finance major orders in the traffic solutions business but also to expand the Group's global presence, particularly in the laser business in Asia and North America, as well as for
.
| 1st half 2010 | 1st half 2009 | |
|---|---|---|
| Net profit in TEUR | 3,546 | – 12,565 |
| Weighted average number of outstanding shares |
55,272,362 | 52,034,651 |
| Earnings per share in euros | 0.06 | – 0.24 |
| Dilution effect* in TEUR | – | 889 |
| Weighted average number of outstanding shares** |
55,272,362 | 55,659,076 |
| Earnings per share in euros** | 0.06 | – 0.24 |
Earnings per share are the net profit divided by the weighted average number of shares outstanding. The convertible bond was repaid in fiscal year 2009, therefore earnings per share cannot be diluted.
* After taking deferred taxes into account.
** Diluted.
smaller acquisitions which will increase the Group's profitability. The intention is to also round off the Group product portfolio resp. the added value chain.
During the 2nd quarter 2010 the Jenoptik Management attended banking conferences in Frankfurt and Paris as well as an investors' conference as part of Optatec and gave presentations of the Group at roadshows in Frankfurt, Zurich, Amsterdam, and Brussels as well as at various locations in the USA and Canada.
The Annual General Meeting of JENOPTIK AG held on June 9, 2010 in Weimar was attended by approx. 300 share hold ers, representing approx, 51 percent of the share capital. The shareholders passed the resolutions on all the items on the agenda with a significant majority in each case.
The pace of the recovery in the global economy in the first half-year 2010 was faster than had been anticipated: the International Monetary Fund (IMF) consequently raised its forecast for global growth for the current year from 4.2 to 4.6 percent. The main reasons for the recovery were the in crease in export demand, particularly from emerging countries in Asia such as China and India, as well as the fall in value of the euro.
The Organization for Economic Cooperation and Develop ment (OECD) forecasts an increase of 1.9 percent in German GDP after the first half-year. That's a rise of 0.5 percentage points over autumn 2009. By contrast, the Federal German Govern ment lowered its forecast slightly from 1.5 to 1.4 per cent.
In July 2010 the business climate index of the Institut für Wirtschaftsforschung, Munich, (Ifo) reached its highest level for three years, returning to the pre-crisis level. The Ifo index also currently sees the German economy as the engine driving growth in Europe. Accord ing to the economic report of IMF in July 2010 China and India are driving economic growth in global terms with growth rates of 10.5 or 9.4 percent.
By contrast to the losses posted by the German photonics industry in 2009, Spectaris, the sector association of the high tech industry, antici pates a return to growth after the first half-year 2010. In the first quarter 2010 sales by German companies in the global market index for Optical Technologies had already risen by 36 percent compared with the same period in the previous year.
According to the Semiconductor Industry Association (SIA) the semiconductor sector reported a 47.6 percent increase in the worldwide sale of semiconductors in May 2010 compared with the previous year; this is mainly attributable to good sales of PCs and mobile phones.
The automotive sector is recovering thanks to the increase in passenger cars production worldwide. In this context the sector is benefiting from exports to China. According to details from the European Automobile Manufacturers Association (ACEA), all big European markets recorded a plus except for Germany which regis tered a minus of 28.7 percent com pared with the same period in the previous year. By contrast, according to ACEA domestic demand in Europe fell once again in comparison with the same quarter in the previous year, primarily as a result of the ending of government help for sales.
The Verband der Deutschen Maschinen und Anlagen bauer (VDMA) is seeing an unexpected up ward trend in the German machine construction industry. In May 2010 the order intake rose by 61 percent compared with the pre vious year. Export-driven machine construction companies benefited in particular from a high level of orders from China and Brazil. According to the VDMA these almost returned to the level in the boom years of 2005/2006.
According to the International Air Transport Association (IATA) the passenger and freight business of the aviation and aerospace industry rose by 11.7 percent and 34.3 percent respectively compared with the same period in the previous year.after losses as a result of the ash cloud from Iceland.
No significant new reports were published for the other sectors in the second quarter. We therefore refer to the details in the 2009 Annual Report and the report on the 1st quarter 2010.
Note: The details on the three segments in the result from operating activities (EBIT) and EBITDA cannot be compared with the details in the report on the 1st half-year 2009. In 2010 the Jenoptik Group changed to showing the EBIT and EBITDA of the segments after the Group charge. The results for the year 2009 shown in this report have been adjusted. All other details can be compared in full with the figures published a year ago.
Development of sales. Group sales, at 239.6 million euros, rose slightly against the previous year (prev. year 231.3 million euros). Sales in the same period in the previous year still included contributions to sales in the middle single fi gure million euro range from businesses which were either sold or closed down. The increase in the 1st half-year 2010 was the result of a marked rise in sales by the Lasers & Opti cal Systems segment due to the continuing high demand from the semiconductor industry. In some areas the cautious investment climate is still continuing, in particular regarding new technologies. In plant engineering and industrial metrology pre- crisis level has not yet been reached. As expected the Metrology segment, which in the 1st quarter 2010 had still been benefiting from good order backlogs from the pre-economic crisis period, posted a reduction in sales. In the Defense & Civil Systems segment sales were slightly below the level in the previous year. Jenoptik generated approx. 61 percent of its six-monthly sales abroad (prev. year 56 percent). On a quarterly comparison for 2010, sales in the 2nd quarter 2010, at 124.4 million euros, were up on those for the 1st quarter
(115.2 million euros) primarily as a result of the continuing pickup in the semiconductor industry.
Development of results. The Group EBIT totaled plus 10.5 million euros as against minus 4.6 million euros in the same period for the previous year which included one-off effects in the sum of 7.9 million euros from the termina tion of a business. The positive devel opment in the EBIT was also dominated by the Lasers & Optical Systems segment. Thanks to improved cost struc tures, the losses in the Metrology segment were reduced despite the lower sales. The Defense & Civil Systems segment posted a slight re duction in its EBIT compared with the level in the previous year as the figure for the 1st quarter 2009 was characte rized by the delivery of a major order in the sensor systems area. Comparing the individual quarters, Jenoptik posted an increase of more than 50 percent in the Group EBIT at 6.5 million euros in the 2nd quarter 2010 over the 1st quarter (4.0 million euros).
Earnings before interest, taxes, depreciation and amortization (EBITDA) totaled 23.4 million euros in the 1st half-year 2010 (prev. year 15.0 million euros).
The financial result showed an improvement to minus 6.0 million euros (prev. year minus 6.7 million euros) as the investment result had been improved to just minus 0.3 million euros (prev. year minus 1.6 million euros). The investment result essentially entails JT Optical Engine GmbH + Co. KG on a pro rata basis. The interest result, at minus 5.7 million euros, was down slightly on the figure for the previous year (prev. year 5.1 million euros). As expected, interest expenses increased compared with the same period in the previous year during which Jenoptik had
| 1.1. to 30.6.2010 |
1.1. to 30.6.2009 |
Change in % |
|
|---|---|---|---|
| Total | 10.5 | – 4.6 | 328.3 |
| Lasers & Optical Systems | 7.2 | – 10.9 | 166.1 |
| Metrology | – 1.0 | – 3.9 | 74.4 |
| Defense & Civil Systems | 5.5 | 6.9 | – 20.3 |
| Others | – 1.2 | 3.3 | – 136.4 |
benefited from low short-term interest rates as the maturity of the credits has been extended.
Earnings before tax showed a positive result of 4.4 million euros (prev. year minus 11.3 million euros) thanks to the increase in the Group EBIT. Income taxes in the sum of 0.7 million euros were thus minimal as Jenoptik used its tax losses carried forward of more than 450 million euros in total. Deferred taxes totaled 0.3 million euros. Earnings after tax accordingly totaled 3.5 million euros (prev. year minus 11.1 million euros).
Order book situation. The order intake grew by 37.6 percent to 300.2 million euros (prev. year 218.1 million euros). This was attributable to a general improvement in the economic environment, the continuing high demand from the semiconductor industry and the recovery in demand from the automotive industry which was better than expected as well as a number of major or ders, among others from the defense area. The areas of traffic safety and medical lasers received the biggest individual orders in history. All three segments succeeded in increasing their order intakes, with the Lasers & Optical Systems segment in particular report ing a 33.1 percent growth thanks to the continuing high demand from the semiconductor industry. The Metro logy segment actually posted an increase of 76.8 percent in its order intake. This was attributable to the major orders in the Traffic Solutions division as well as the continuing pickup in demand from the automotive industry in the Industrial Metrology division.
The order intake exceeded the level of sales by approx. 60 million euros overall, representing a book-to-bill rate of 1.3 (prev. year 0.9). The Jenoptik Group order backlog
| 1.1. to 30.6.2010 |
1.1. to 30.6.2009 |
Change in % |
|
|---|---|---|---|
| Total | 300.2 | 218.1 | 37.6 |
| Lasers & Optical Systems | 106.6 | 80.1 | 33.1 |
| Metrology | 70.9 | 40.1 | 76.8 |
| Defense & Civil Systems | 121.8 | 94.3 | 29.2 |
| Others | 0.9 | 3.6 | – 75.0 |
increased accordingly by 59 million euros to just under 398.4 million euros (31.12.2009: 339.4 million euros).
Cost of sales at 169.8 million euros, remained at the same level as in the previous year (prev. year 169.1 million euros) despite the growth in sales. The gross margin rose accord ingly from 26.9 to 29.1 percent. The measures of the Jenoptik Excellence Program had a positive impact, particularly in the area of purchasing, through optimization of processes and locations, the lower number of employees as well as the change in the sales and product mix.
The cost of sales includes development costs on behalf of customers in the sum of 11.1 million euros (prev. year 11.3 million euros). The allocation to cost of sales or R+D expenses is partially dependent upon the contract structure of customer orders. The level of cost of sales (gross margin) and R+D expenses (R+D ratio) can therefore fluctuate without affecting the overall R+D costs.
Research and development costs of the Jenoptik Group in the 1st half-year 2010 totaled 24.9 million euros (prev. year 26.5 million euros), representing 10 percent of sales. These expenses comprise the development costs on behalf of customers, the capitalized development costs and depreciation on these as well as the R+D expenses.
R+D expenses totaled 13.8 million euros and were there fore 1.9 million euros lower compared with the same period in 2009 (prev. year 15.7 million euros). The reduc -
| 30.6.2010 | 30.6.2009 | Change in % |
|
|---|---|---|---|
| Total | 398.4 | 374.6 | 6.4 |
| Lasers & Optical Systems | 72.8 | 66.9 | 8.8 |
| Metrology | 49.6 | 27.3 | 81.7 |
| Defense & Civil Systems | 277.9 | 281.1 | – 1.1 |
| Others | – 1.9 | – 0.7 | – 171.4 |
tion is essentially attributable to the discontinuation of themes which offer no future prospects, such as e.g. the withdrawal from the mid-format camera business in the fiscal year just past, as well as to focused R+D road map ping. The costs for the development of optical engines for fiber lasers are included in the investment result on a pro rata basis through the joint venture JT Optical Engine GmbH & Co. KG.
Employees & management. In the 2nd quarter there was a further reduction in the number of employees in the Jenoptik Group to a total of 3,069 as at June 30, 2010 (31.12.2009: 3,268). The reduction is due to the personnel-related measures introduced in the 4th quarter 2009 and which took effect in the first months of the current year. The main reduction in the number of employees was in the Lasers & Optical Systems segment and the Industrial Metrology division. As at June 30, 2010 approx. 50 em ployees were on short-time working, the majority of these in the Industrial Metrology division. As at June 30, 2010 Jenoptik had a total of 109 trainees. This was increased at the beginning of August by 34 trainees and students from the career academies who were starting their training at Jenoptik in Germany.
New appointments were made to the Group Works Council of Jenoptik in June 2010. The new Chairman of the Group Works Council is Thomas Klippstein who replaced Günther Reißmann who had held this post since 1994.
Financing structure. Jenoptik continued to show a sound financing structure in the 2nd quarter 2010.
Since the beginning of the year the Group's non-current liabilities reduced to 196.4 million euros (31.12.2009: 205.8 million euros). Current liabilities fell to 152.4 million euros (31.12.2009: 161.3 million euros). As a result, there was a further improvement in the debt to equity ratio, as a proportion of borrowings (348.9 million euros) to share holders' equity (265.6 million euros) in the 2nd quarter 2010, to 1.31 (Dec. 31, 2009: 1.53).
After achieving a significant reduction in net debt in the 2009 fiscal year from 191.6 million euros to 159.5 million euros and a further reduction in the 1st quarter 2010 (31.03.2010: 145.7 million euros), net debt of the Jenoptik Group remained almost unchanged at 144.0 million euros as at the end of the 2nd quarter 2010. The figures does not yet include the net cash inflow in the upper single figure million euro range connected with the completion of the sale of the shares in caverion, which is expected in the 2nd half-year and will have a positive impact on net debt.
Analysis of capital expenditure. Capital expenditure on intangible and tangible assets in the total of 6.8 million euros was down on the previous year's level (prev. year 7.8 million euros). The largest share, 5.5 million euros, was invested in tangible assets, mainly in technical equipment and machines as well as factory and office equipment. At 1.2 million euros, capital expenditure on intangible assets was lower com pared with the previous year (prev. year 2.5 million euros).
| 1.1. to 30.6.2010 |
1.1. to 30.6.2009 |
Change in % |
|
|---|---|---|---|
| Total | 24.9 | 26.5 | – 6.0 |
| Lasers & Optical Systems | 9.5 | 10.5 | – 9.5 |
| Metrology | 5.8 | 5.5 | 5.5 |
| Defense & Civil Systems | 9.5 | 10.8 | – 12.0 |
| Others | 0.1 | – 0.3 | 133.3 |
| 30.6.2010 | 30.6.2009 | Change in % |
|
|---|---|---|---|
| Total | 3,069 | 3,354 | – 8.5 |
| Lasers & Optical Systems | 1,224 | 1,349 | – 9.3 |
| Metrology | 635 | 791 | – 19.7 |
| Defense & Civil Systems | 1,060 | 1,079 | – 1.8 |
| Others | 150 | 135 | 11.1 |
Capital expenditure was offset by regular depreciation in the sum of 13.0 million euros (prev. year: 19.6 million euros).
In the analysis of cash flows the cash flows in the 1st halfyear 2010 can be compared in full with those of the previous year.
At 6.9 million euros, cash flow from operating activities was below the figure in the same period in the previous year (prev. year 12.5 million euros). The reduction is due mainly to the increase in the working capital resulting from the recovery in the operating business as well as to payments made in connection with the personnel-related measures. On the other side, earnings before tax had a positive effect.
Cash flow from investing activities, at minus 10.1 million euros, was also down on the level for the previous year (prev. year minus 6.7 million euros). This included payments for capital expenditure on tangible assets in the sum of 5.5 million euros, with capital expenditure on intangible assets totaling 1.2 million euros. However, in the 1st quarter 2010 the cash flow from investing activities was primarily influenced by the payments in connection with the acquisition of the outstanding shares in the laser diode business from the previous minority shareholder which is now consequently 100 percent back in Jenoptik hands.
At 7.5 million euros, cash flow from financing activities showed a rise on the level for the previous year (prev. year minus 4.1 million euros). The main contributory factor here was the proceeds raised by the 10 percent capital increase in March 2010 totaling approx. 22 million euros which are included under receipts from allocations to equity. At 20.1
million euros receipts from the issue of bonds and loans were lower than in the same period in the previous year.
Balance sheet analysis. The balance sheet total of the Jenoptik Group increased slightly to 614.5 million euros by comparison with the end of 2009 (31.12.2009: 607.1 mil lion euros).
Non-current assets remained virtually unchanged at 333.1 million euros (31.12.2009: 336.9 million euros). There was a slight reduction in tangible assets to 147.6 million euros (31.12.2009: 152.1 million euros), since depreciation, in particular on real estate, exceeded investments. By contrast, financial assets including shares in associated companies at 19.9 million euros were virtually unchanged (31.12.2009: 19.2 million euros).
At 281.3 million euros current assets rose compared with the end of 2009 (31.12.2009: 270.2 million euros), since in particular inventories at 162.3 million euros were higher as a result of the growth in sales (31.12.2009: 154.7 million euros). As a result of the capital increase in March 2010 cash and cash equivalents increased to 16.1 million euros compared with the figure as at end December 2009 (31.12.2009: 11.2 million euros).
Working capital is defined as total receivables from operat ing business activities and inventories, less trade accounts payable, liabilities from PoC (Percentage of Completion) and on-account payments received. Compared with June 30, 2009, the working capital showed a marked reduction to 177.2 million euros in the 1st half-year 2010 (30.06.2009: 195.7 million euros). However, as a result of the pickup in the operating business and the processing of major orders
| 30.6.2010 | 31.12.2009 | 30.6.2009 | |
|---|---|---|---|
| Total | – 144.0 | – 159.5 | – 188.5 |
| Securities | 1.0 | 1.1 | 1.5 |
| Cash and cash equivalents | 16.1 | 11.2 | 13.8 |
| Non-current financial liabilities | 132.4 | 158.2 | 109.9 |
| Current financial liabilities | 28.7 | 13.6 | 93.9 |
the figure was higher compared with the end of 2009 (31.12.2009: 166.4 million euros). The working capital quota, the ratio between working capital and sales, there fore remained virtually unchanged at 35.8 percent (31.12.2009: 35.1 percent).
At the beginning of March this year the Jenoptik Group carried out a 10 percent capital increase raising approx. 22 million euros which is to be used, among other things, for growth in the core business and the continuing process of internationalization. Together with the profit reported in the 1st half-year 2010, this led to an increase in the Group shareholders' equity to 265.6 million euros (31.12.2009: 240.0 million euros). Despite the slight increase in the bal ance sheet total there was therefore also an improvement in the shareholders' equity quota, the ratio between sharehold ers' equity and balance sheet total, from 39.5 percent at the end of 2009 to the new figure of 43.2 percent.
Non-current liabilities totaled 196.4 million euros as at June 30, 2010 (31.12.2009: 205.8 million euros). The reduction is mainly attributable to lower non-current financial liabilities resulting from the installments due within nine to twelve months being reclassified to current financial liabilities. The other items included in non-current liabilities, such as e.g. pension liabilities, other non-current provisions as well as other non-current liabilities, remained virtually un changed.
Current liabilities reduced by approx. 9.0 million euros to 152.4 million euros (31.12.2009: 161.3 million euros). This was primarily due to the reduction in other current provi sions as the result of the payments which have now been made in connection with the personnel-related measures. There was also a slight fall in other items included in current liabilities.
Purchases and sales of companies. At the end of the 2nd quarter 2010 signing was made for the sale of the 15.1 percent minority stake in caverion GmbH to the Finnish stock-listed construction and technology group YIT. Among other things, the transaction is still subject to the suspen sive condition of approval from the correspond ing antitrust authorities condi tions. Jenoptik has been consistently implementing the Group strategy and continuing to focus on its core business with this sale.
After the successful conclusion of the transaction Jenoptik not only anticipates the elimination of existing receivables and liabilities but also a net cash inflow in the upper single figure million euro range. The Group also anticipates a small, non-operat ing income in the 2nd half-year. In addi tion, with the closing Jenoptik will be released from all existing guarantees provided for caverion, both directly or through a Group countersecurity by YIT, as well as from other financing liabilities.
For details on assets and liabilities not included in the balance sheet we refer to the information contained in the 2009 Annual Report on Page 73, the information on guarantees in the Risk Report from Page 85 as well as the corresponding updating on P. 15 of this report.
Note. The details on the three segments regarding the results from operating activities (EBIT) and EBITDA cannot be compared with the details in the report for the 1st halfyear 2009. In 2010 the Jenoptik Group changed over to showing the segment EBIT and EBITDA after the Group charge. The figures on the results for the year 2009 stated in this re port have been adjusted. All other details can be compared in full with the figures published a year ago.
There was a further improvement in the business climate as a result of the continuing recovery in the semiconductor industry.
Sales of the Lasers & Optical Systems segment rose by 25.4 percent compared with the previous year to a total 92.9 million euros (prev. year 74.1 million euros). The Optical Systems division reported growth primarily as a result of the continuing high demand from the semiconductor industry. The Lasers & Material Processing division also posted a marked rise in sales, mainly attributable to the Lasers business unit.
The segment EBIT was 7.2 million euros compared with minus 3.0 million euros for the same period in the previous year. In addition, negative one-off effects of 7.9 million euros from the termination of a business had a negative impact on the segment EBIT in the previous year. In addi tion to the growth in sales the significant improvement in EBIT was also helped by the comprehensive cost-saving measures introduced in the previous year. In addition to the withdrawal from the loss-making mid-format camera
business, amongst other things, the Optical Systems divi sion optimiz ed its locations, restructured production and adjusted capacities in line with the increased efficiency.
Order book situation. The segment reported a 33.1 percent increase in its order intake to 106.6 million euros (prev. year 80.1 million euros) beat ing the rise in sales for the period covered by the report. Since sales were also higher the segment's book-to-bill rate remained at 1.1 (prev. year 1.1). The Optical Systems division posted a significant rise in its order intake thanks to the recovery in the semiconductor industry. In the 1st quarter the Lasers & Material Processing division received the biggest individual order in history for medical lasers from the USA.
Employees. As at June 30, 2010 the Lasers & Optical Sys tems segment had a total of 1,224 employees (31.12. 2009: 1,284). The reduction of 60 in the number of employees was due to the personnel-related measures in the 4th quarter 2009, the majority of which were implemented during the course of the 1st half-year 2010.
Internationalization continued. The division's international presence was expanded at the beginning of 2010. The new Laser Application Center in South Korea opened in March. Customers and potential customers from Asia can use the Center for testing lasers and laser applications and continue to develop their processes in conjunction with Jenoptik's engineers. Essentially in 2009 the Jenoptik Group invested a total of around 3.4 million euros in this Center. Mass production of the new compact JenLas® D2.mini medical laser started in June 2010. Its miniaturized design opens up potential new applications particularly in the areas of medicine and entertainment. With an improve-
| 30.6.2010 | 30.6.2009 | Change in % |
|
|---|---|---|---|
| Sales | 92.9 | 74.1 | 25.4 |
| EBIT | 7.2 | – 10.9 | 166.1 |
| Order intake | 106.6 | 80.1 | 33.1 |
| Order backlog | 72.8 | 59.9* | 21.5 |
| Employees | 1,224 | 1,284* | – 4.7 |
* Figures as at December 31, 2009.
.
ment in beam quality the laser has been made more than 3 times smaller. The mini-laser therefore offers the required laser power in a much more compact form. Other benefits include efficient mass production and easy integration of the laser into existing equipment.
New development and award. The Digital Imaging business unit of the Optical Systems division was awarded preferred supplier status by Leica Camera AG in July. Jenoptik received this recognition as a result of the superb collaboration on the LEICA M9 range finder camera. Both partners will be extending their successful cooperation to new products and projects. The business unit also launched a new microscopy camera, the ProgRes® SpeedXT core, for re cording surface inspections. It offers a markedly improved CCD live image speed, combined with high resolution.
Organizational development. The company structure of the segment was comprehensively streamlined and adapted to the Group divisional structure in the 1st half-year 2010. In order to make better use of synergies in the USA in the future all US optics companies were amalgamated within JENOPTIK Optical Systems Inc. with effect from January 1, 2010. Since May this year the limited company structures in Germany have been operating fully in line with the divisional structure. The Laser Technology business unit of JENOPTIK Laser, Optik, Systeme GmbH and JENOPTIK Laser diode GmbH merged and now form JENOPTIK Laser GmbH. The previous JENOPTIK Laser, Optik, Systeme GmbH therefore now operates exclusively in the optics and optoelectronics areas and now trades under the name JENOPTIK Optical Systems GmbH.
In the segment the pickup in demand from the automotive industry was stronger than expected in the 2nd quarter 2010. In addition, significant major orders for traffic safety technology were received.
Sales of the Metrology segment were down compared with the 1st half-year 2009, totaling 43.4 million euros (prev. year 48.0 million euros). The reason for this was a relatively good 1st quarter 2009, on the sales side, in the Industrial Metrology division which had at that time still been benefiting from order backlogs from the period prior to the crisis in the automotive industry. The Traffic Solutions division posted a small rise in sales.
Although the segment EBIT showed a negative result at minus 1.0 million euros in the 1st half-year 2010 (prev. year minus 3.9 million euros), losses were sharply reduced despite the reduction in sales. This is attributable to the cost reduction measures of the previous year which were implemented at the end of 2009 and in the 1st half-year 2010. On a quarter-by-quarter comparison, after posting a loss of approx. 1 million euros in the 1st quarter 2010 the segment achieved break-even already in the 2nd quarter.
The Metrology segment posted a significant 76.8 percent increase in its order intake to 70.9 million euros (prev. year 40.1 million euros). This figure includes the biggest individual order for traffic safety technology in the history in the total sum of more than 12 million euros which will affect sales and earnings still in 2010. Major international projects are becoming an increasingly important feature in the Traffic Solutions divi sion so its order intake can fluctuate significantly during the course of the year. In the Industrial
| Change | ||
|---|---|---|
| 30.6.2010 | 30.6.2009 | in % |
| 43.4 | 48.0 | – 9.6 |
| – 1.0 | – 3.9 | 74.4 |
| 70.9 | 40.1 | 76.8 |
| 49.6 | 21.9* | 126.5 |
| 635 | 769* | – 17.4 |
* Figures as at December 31, 2009.
Metrology division increasing demand from the automotive industry led to a marked growth in orders. The recovery in demand thus started earlier than had originally been expected. However, this does not represent a return to the pre-crisis period. The division was able to benefit from its global presence.
The segment recorded a book-to-bill rate of 1.6 (prev. year 0.8). The order backlog increased from 21.9 million euros as at end 2009 to 49.6 million euros as at June 30, 2010.
Employees. As at June 30, 2010 the Metrology segment had a total of 635 employees (31.12.2009: 769 employees). The reduction was almost entirely due to the Industrial Metro logy division as the severe crisis in the automotive industry necessitated personnel-related measures being taken at home and abroad in 2009. The number of em ployees in the Traffic Solutions division remained virtually constant despite the increase in sales.
Since February 1, 2010 ROBOT Visual Systems GmbH has been trading as JENOPTIK Robot GmbH and with this completed the switchover to a group-wide, uniform umbrella brand. For the first time the Traffic Solutions division appeared with a changed external presence under the Jenoptik brand at Intertraffic in Amsterdam in March 2010. Here the division showcased the new 3D Tracking Radar which is able to simultaneously track several vehicles and offers optimum analysis speeds thanks to high precision lane assignment. At the beginning of 2010 the division launched the new TraffiSection traffic monitoring system in three countries. This system monitors average speeds over a defined section of road. The total order value is in excess of 4 million euros.
Internationalization continued. The new location in China was officially opened, combining all Jenoptik's activities in the new premises and making its services available to all divisions. For the customers of the Industrial Metrology division project planning, production, sales as well as the Application and Training Center are now housed under one roof. Approx. 50 customers from all over China attend ed the official opening in May. In addition, international orders were delivered in the 1st quarter 2010. State-of-theart metrology was supplied amongst others to General Motors in Thailand, India and Uzbekistan. At "Control 2010", the leading trade fair for metrology in Stuttgart in May, the Industrial Metrology division presented its tactile, optical and pneumatic measurement systems.
In the Defense & Civil Systems segment the solid development of business recorded in the previous year continued within market conditions which remained stable. Sales and results for the 1st half-year 2009 were influenced by the delivery of a major order in the Sensor Systems business unit.
This is the reason for the slight reduction in the segment's sales to 103.2 million euros in the 1st half-year 2010, compared with the same period in the previous year (prev. year 105.2 million euros). The Optronics business unit successfully increased sales thanks, amongst other things, to its role as a market leader in attitude and orbit control sensors as well as docking sensors.
Reflecting the reduction in sales and change in the product mix, the segment EBIT was unable to repeat the level
| 30.6.2010 | 30.6.2009 | Change in % |
|
|---|---|---|---|
| Sales | 103.2 | 105.2 | – 1.9 |
| EBIT | 5.5 | 6.9 | – 20.3 |
| Order intake | 121.8 | 94.3 | 29.2 |
| Order backlog | 277.9 | 260.2* | 6.8 |
| Employees | 1,060 | 1,077* | – 1.6 |
* Figures as at December 31, 2009.
achieved in the previous year, coming in at 5.5 million euros in the 1st half-year 2010 compared with 6.9 million euros for the same period in the previous year when the result had been influenced by the delivery of a major order in the Sensor Systems business unit in the 1st quarter 2009. At 3.8 million euros the segment EBIT in the 2nd quarter 2010 was substantially higher compared with both the same quarter in the previous year (2.4 million euros) and the 1st quarter 2010 (1.7 million euros).
Order book situation. The segment's order intake increased by 29.2 percent compared with the 1st half-year 2009, totaling 121.8 million euros in the 1st half-year 2010 (prev. year 94.3 million euros). The increase is attributable to an order for Eurofighter radomes valued at more than 20 million euros awarded to the Mechatronics business unit in the 2nd quarter. In the 2nd quarter 2010 the segment received at 73.0 million euros the highest order intake for an individual quarter within the past two-and-a-half years. The segment posted a book-to-bill rate of 1.2 (prev. year 0.9), with the order backlog accordingly increasing to 277.9 million euros by comparison with the end of December 2009, (31.12.2009: 260.2 million euros).
The number of employees in the segment reduced slightly as at the end of the 1st half-year 2010 to 1,060 (31.12. 2009: 1,077).
In the Sensor Systems business unit Jenoptik launched a new thermographic camera at the beginning of April, the VarioTHERM® InSb, designed specially for use in industry and research institutes. The camera covers a temperature range from minus 40 to plus 2,000 degrees and also oper ates on a spectral-selective basis, i.e. by using special filters the camera can carry out readings through specific mate rials, e.g. glass or plastic, and disregard them in the mea sure ment. The camera, which had already recorded its first successes in the Japanese market, was premiered at the SPIE Defense & Security Symposium trade fair in the USA at the beginning of April. At the Interschutz trade fair at the beginning of June in Leipzig Dräger and Jenoptik show cased the first thermal imaging cameras which has been developed by the two companies within the framework of a cooperation agreement. The cameras were designed for use by fire fighters and rescue teams and are based on an innovative infrared camera module from Jenoptik.
There were no events of special importance occurring after the end of the period under review. Details of any individual developments in the current 3rd quarter have been dealt with within the framework of this report.
Within the framework of the risk report we refer to the details on Pages 85 to 97 of the 2009 Annual Report published at the end of March 2010. Up to the closing editorial date for this report there have been no significant changes in the risks described in the Annual Report during the course of the 1st half-year 2010, with the exception of those specified below.
The economic environment improved during the course of the 1st half-year 2010. Whilst this does slightly alleviate the general economic risk and risk to the sectors it does not entirely dispel the doubts about whether the recovery in the economic environment represents a sustainable trend. There is continuing uncertainty and varying opinions about developments in the international currency and financial markets.
In terms of the sector-related risks the pickup in demand from the semiconductor industry in the period covered by the report as well as the recovery in demand from the automotive industry since spring 2010 have continued and as such reduced the risk arising from the development of these sectors.
The capital increase in March 2010 and the further reduc tion in net debt have reduced the liquidity risks for the Jenoptik Group. As at the end of June 2010 the Group had free liquidity at its disposal in the form of credit lines and loans not yet utilized totaling 91.2 million euros (31.12. 2009: 68.9 million euros).
The sale of the minority stake in caverion GmbH will significantly reduce the risks arising from guarantees and sureties of the Jenoptik Group. The sale is subject to several suspensive conditions, amongst other things to the approv al by the competent anti-trust authorities. Over the course of the sale the financing agreement between Jenoptik and caverion in particular will be terminated and Jenoptik released from all existing guarantee commitments either directly or via a Group counter indemnity of the purchaser. Approx. 90 percent of the Group guarantees and cash facilities issued in favor of third parties will therefore no longer apply.
The OECD forecasts that the global economy will grow by 2.7 percent in 2010 compared with the previous year, with the gross domestic products in China and India, at 11.1 per cent and 8.3 percent respectively, far exceeding the growth rates in the USA and the euro zone.
However, according to the Ifo economic forecasts, the growth dynamic will slow down in the 2nd half of 2010. The reasons for this according to the Ifo report "Eurozone Economic Outlook" are said to be the loss of the impetus from fiscal policies, consolidation measures, the continuing restrictive approach to lending and the increased uncertainty in the financial markets as a result of the European debt crisis.
In the semiconductor industry according to information from the SIA, the monthly increase in sales compared with the previous year will continually reduce. The Zentral ver band Elektrotechnik- und Elektronikindustrie (ZVEI) also forecasts weakening semiconductor sales. The market research company iSuppli generally expects to see the high est individual growth in the semiconductor market since the boom year of 2000, with a global sales volume of 300.3 billion US dollars. That corres ponds to a 15.4 percent increase by comparison with the pre-crisis year of 2008. However, there are as yet still no indications as to whether the current orders are being used purely to re stock warehouses or whether there is actually increasing demand coming from end users. According to the firm of analysts Gartner factory suppliers can expect to post orders in excess of 30 billion euros.
The sector association Spectaris forecasts that the German photovoltaics sector will see sales grow by 15 percent to 21.2 billion euros in 2010, with the domestic market accounting for 13 percent and exports 16 percent. There were no forecasts for the overall market of the German optical, medical and mechatronical industries at the time of the editorial deadline.
Following a 25 percent fall in laser sales in 2009 the laser sector anticipates a recovery for 2010, during which the
rate of recovery in the material processing sector will be slower according to the "Laser 2010" report. The market for laser applications is anticipated to grow by an average of 9 percent per annum up to 2014, to 8.8 billion US dollars. Fiber lasers in particular are expected to offer significant potential.
The sector association VDMA adjusted its forecast for 2010 for the machine and plant construction sector. Instead of stagnation the association believes that there is the possibility of a 3 percent rise in production.
Despite the export boom the automotive sector is unable to give the all-clear. Although according to a report of the consulting company PriceWaterhouseCoopers the number of vehicles sold worldwide is expected to increase by approx. 7 percent to approx. 68 million in 2010, this growth is being increasingly unevenly distributed. Whilst we are seeing enormously increased demand in China, Western Europe and Japan are struggling to reach the pre-crisis levels.
The German automation industry is cautiously optimistic about 2010. The Fachverband Robotik + Automation predicts a 5 percent growth in sales to approx. 6.5 billion euros. However, according to the sector association ZVEI the high level of sales achieved in 2008 will not be repeat ed until 2011 at the earliest. There is also continuing un cer tain ty as to whether the strong development at the start of 2010 will be maintained for the whole year. The largest consumer markets are in China, India, Brazil and Russia.
In the aviation and aerospace industry the Bundesverband der Deutschen Luft- und Raumfahrtindustrie (BDLI) expects to see a repeat of the sales level of 23.9 billion euros achieved in 2009. However, whilst the current high level of economic activity in China, India and Brazil may be able to soften the fall in demand in Europe and North America, it will be unable to compensate for it in full.
In the defense area reductions in military spending within the framework of the cost cutting measures are being discussed, particularly in Europe.
Jenoptik sees the conditions for the sale of its products and services as good in the long term - irrespective of the economic development over the next two years. The technology group operates in attractive sectors with a comprehensive portfolio of technologies, products and services. Optoelectronics, our core area of expertise, is a cross-sectional technology that facilitates new applications in a wide range of sectors.
Jenoptik operates through its innovative technologies and products in the following areas which offer long-term growth:
Our predictions for the future development in the segments are based on the assumption that there will be a general continuing recovery in the markets which have been affected to differing degrees by the crisis. At this point in time it is impossible to predict to what extent the economic crisis will have a lasting effect on general market trends.
In the Lasers & Optical Systems segment the duration and extent of the current recovery in the semiconductor indus try and the development of its associated industries will significantly influence the course of business, particularly in the Optical Systems division. In the Lasers & Material Processing division the Laser Processing Systems business unit will continue to focus on the expansion of its photovoltaic activities. In the lasers business the range will be expanded by the addition of attractively-priced products for mass applications. The aim is to massively press ahead with the process of internationalization in this division, particularly in Asia and North America.
In the Metrology segment we are seeing the recovery in demand from the automotive industry which is stronger than expected, with the Industrial Metrology division being well placed in this respect as a result of its improved cost structures and international presence. Major projects are increasingly becoming a characteristic feature of business in the Traffic Solutions division. Thanks to our position as a market leader and our entry into new service models, together with the major order received in March 2010, we are seeing signs of a positive development in this area.
The Defense & Civil Systems segment operates in what is essentially a stable market environment and is benefiting from the trend towards increased investment in security.
The details are given on the proviso that the economic situation develops in line with the economic forecasts stated under 6.1 and does not significantly deteriorate. All statements relating to the future development of the business situation have been made on the basis of current information.
In the 1st half-year 2010 and the past weeks of the current quarter the recovery of the semiconductor industry continued. In the Metrology segment there was a recovery in the demand from the automotive industry which started earlier than we had been expected. The areas of medical technology, traffic safety with significant major orders as well as the stable business of the Defense & Civil Systems segment remain the driving forces behind an improvement in the development of business. In addition, Jenoptik benefits from the measures taken in 2009 to create permanent cost savings in all areas
The forecasts for the current fiscal year have been increas ed. Sales of the Jenoptik Group in 2010 are expected to come in at approx. 500 million euros (previously 475 to 500 mil lion euros). Increases in sales are anticipated in the Lasers & Optical Systems segment as a result of the continuing high demand from the semiconductor industry and medical technology. In the Defense & Civil Systems segment we
anticipate a continuation of the stable development at the level in previous years. Sales in the Metrology segment are expected to increase slightly. The segment reached breakeven already in the 2nd quarter 2010. We expect a posi tive EBIT of the Metrology segment in the 2nd half of the year.
The Group expects a Group EBIT of at least 25 million euros (previously between 15 and 25 million euros). The EBIT improvement will also be reflected in the positive net income. In 2009 we countered the continuing downward pressure on prices resulting from the economic crisis by introducing cost saving measures which will take comprehensive effect throughout 2010 and consequently enable us to achieve a higher level of savings than in 2009. We do not anticipate any negative one-off effects in 2010. Based on current assessments 2011 is expected to show a further improvement in sales and results.
Following the successful closing of the sale of the minority stake in caverion GmbH, in the 2nd half-year Jenoptik not only expects to eliminate existing receiv ables and liabilities but to also generate a net cash inflow in the higher single figure million euro range which will have a positive effect on net debt. The Group also anticipates a smaller, nonoperating income in the 2nd half-year.
On the financing side the Group has a free framework of liquidity at its disposal in the form of credit lines and loans not yet utilized totaling 91.2 million euros, including the proceeds from the capital increase that was successfully placed in March. Amongst other things these funds are to be invested in the continuing process of internationaliza tion.
We will maintain the focus on positive cash flows which will essentially be achieved through active working capital management; these are again expected to be in the clear double figure million euro range. Amongst other things these cash flows are to be used in 2010 to fully compen sate for the cash outflows resulting from the personnelrelated measures.
| in TEUR | 1.1. – 30.6.2010 | 1.1. – 30.6.2009 |
|---|---|---|
| Sales | 239,571 | 231,326 |
| Cost of sales | 169,816 | 169,088 |
| Gross profit | 69,755 | 62,238 |
| Research and development expenses | 13,816 | 15,714 |
| Selling expenses | 24,708 | 26,608 |
| General administrative expenses | 18,272 | 17,961 |
| Other operating income | 8,027 | 8,162 |
| Other operating expenses | 10,536 | 14,723 |
| of which expenses for reorganization and restructuring | 0 | 7,892 |
| EBIT | 10,450 | – 4,606 |
| of which EBIT before reorganization and restructuring | 10,450 | 3,286 |
| Result from investments in associated and | ||
| jointly controlled companies | – 308 | – 898 |
| Result from other investments | – 4 | – 724 |
| Interest income | 936 | 854 |
| Interest expenses | 6,629 | 5,972 |
| Financial result | – 6,005 | – 6,740 |
| Earnings before tax | 4,445 | – 11,346 |
| Income taxes | 660 | 62 |
| Deferred taxes | 277 | – 344 |
| Earnings after tax | 3,508 | – 11,064 |
| Minority interests' share of profit/loss | – 38 | 1,501 |
| Net profit | 3,546 | – 12,565 |
| Earnings per share in euros | 0.06 | – 0.24 |
| Earnings per share (diluted) in euros | 0.06 | – 0.24 |
| in TEUR | 1.1. – 30.6.2010 | 1.1. – 30.6.2009 |
|---|---|---|
| Earnings after tax | 3,508 | – 11,064 |
| Difference arising on foreign currency translation | 3,881 | – 302 |
| Financial assets available for sale | – 127 | 97 |
| Cash flow hedge | – 3,823 | – 2,255 |
| Deferred taxes | 510 | 602 |
| Total income and expense recognized in shareholders' equity | 441 | – 1,858 |
| Total result | 3,949 | – 12,922 |
| of which attributable to: | ||
| Minority interests | – 38 | 1,501 |
| Shareholders | 3,987 | – 14,423 |
| Assets in TEUR | June 30, 2010 | Dec. 31, 2009 | Change |
|---|---|---|---|
| Non-current assets | 333,143 | 336,874 | – 3,731 |
| Intangible assets | 78,068 | 77,949 | 119 |
| Tangible assets | 147,581 | 152,143 | – 4,562 |
| Investment properties | 23,855 | 24,450 | – 595 |
| Shares in associated companies | 1,363 | 261 | 1,102 |
| Financial assets | 18,537 | 18,938 | – 401 |
| Other non-current assets | 10,812 | 11,037 | – 225 |
| Deferred tax assets | 52,927 | 52,096 | 831 |
| Current assets | 281,339 | 270,216 | 11,123 |
| Inventories | 162,259 | 154,665 | 7,594 |
| Current accounts receivable and other assets | 101,922 | 103,240 | – 1,318 |
| Securities held as current investments | 1,006 | 1,110 | – 104 |
| Cash and cash equivalents | 16,152 | 11,201 | 4,951 |
| Total assets | 614,482 | 607,090 | 7,392 |
| Shareholders' equity and liabilities in TEUR | June 30, 2010 | Dec. 31, 2009 | Change |
|---|---|---|---|
| Shareholders' equity | 265,616 | 239,989 | 25,627 |
| Subscribed capital | 148,819 | 135,290 | 13,529 |
| Capital reserve | 194,286 | 186,137 | 4,147 |
| Other reserves | – 77,908 | – 81,895 | 7,989 |
| Minority interests | 419 | 457 | – 38 |
| Non-current liabilities | 196,417 | 205,760 | – 9,343 |
| Pension provisions | 6,415 | 6,417 | – 2 |
| Other non-current provisions | 19,093 | 18,544 | 549 |
| Non-current financial liabilities | 148,386 | 158,218 | – 9,832 |
| Other non-current liabilities | 20,547 | 20,116 | 431 |
| Deferred tax liabilities | 1,976 | 2,465 | – 489 |
| Current liabilities | 152,449 | 161,341 | – 8,892 |
| Tax provisions | 1,360 | 2,587 | – 1,227 |
| Other current provisions | 34,359 | 40,592 | – 6,233 |
| Current financial liabilities | 12,742 | 13,532 | – 790 |
| Other current liabilities | 103,988 | 104,630 | – 642 |
| Total shareholders' equity and liabilities | 614,482 | 607,090 | 7,392 |
| in TEUR | 1.1. to 30.6.2010 | 1.1. to 30.6.2009 |
|---|---|---|
| Earnings before tax | 4,445 | – 11,346 |
| Interest | 5,693 | 5,118 |
| Depreciation / write up | 12,998 | 14,299 |
| Impairment | 42 | 6,289 |
| Loss / profit on disposal of fixed assets | – 21 | 41 |
| Other non-cash expenses / income | 334 | 1,008 |
| Operating profit / loss before working capital changes | 23,491 | 15,409 |
| Increase / decrease in provisions | – 7,120 | – 7,073 |
| Increase / decrease in working capital | – 9,638 | 6,114 |
| Increase / decrease in other assets and liablities | 1,639 | – 1,547 |
| Cash flow from / used in operating activities before income taxes | 8,372 | 12,903 |
| Income taxes paid | – 1,475 | – 377 |
| Cash flow from / used in operating activities | 6,897 | 12,526 |
| Receipts from disposal of intangible assets | 34 | 36 |
| Payments for investments in intangible assets | – 1,246 | – 2,533 |
| Receipts from disposal of tangible assets | 1,356 | 395 |
| Payments for investments in tangible assets | – 5,464 | – 5,236 |
| Receipts from disposal of financial assets | 351 | 1,253 |
| Payments for investments in financial assets | – 2,111 | – 1,550 |
| Payments for acquisition of consolidated companies | – 4,000 | 47 |
| Interest received | 936 | 856 |
| Cash flow from / used in investing activities | – 10,144 | – 6,732 |
| Receipts from allocations to equity | 21,678 | 0 |
| Receipts from issue of bonds and loans | 20,098 | 27,420 |
| Repayments of bonds and loans | – 30,194 | – 30,017 |
| Repayments for finance leases | – 721 | – 403 |
| Change in group financing | 601 | 749 |
| Interest paid | – 3,925 | – 1,885 |
| Cash flow from / used in financing activities | 7,537 | – 4,136 |
| Change in cash and cash equivalents | 4,290 | 1,658 |
| Foreign currency translation changes in cash and cash equivalents | 661 | – 393 |
| Cash and cash equivalents at the beginning of the period | 11,201 | 12,523 |
| Cash and cash equivalents at the end of the period | 16,152 | 13,788 |
| Subscribed capital |
Capital reserve | ||
|---|---|---|---|
| in TEUR | |||
| Balance as at 1.1.2009 | 135,290 | 186,137 | |
| Valuation of financial instruments | |||
| Currency differences | |||
| Earnings after tax | |||
| Balance as at 30.6.2009 | 135,290 | 186,137 | |
| Balance as at 1.1.2010 | 135,290 | 186,137 | |
| Valuation of financial instruments | |||
| Currency differences | |||
| Earnings after tax | |||
| Capital increase | 13,529 | 8,149 | |
| Balance as at 30.6.2010 | 148,819 | 194,286 |
| Cumulated profit |
Financial assets available for sale |
Cash flow hedge |
Cumulative currency differences |
Minority interests | Total |
|---|---|---|---|---|---|
| – 53,776 | – 1,888 | 6,552 | – 1,395 | 21,917 | 292,837 |
| 101 | – 1,653 | – 4 | – 1,556 | ||
| 124 | – 426 | – 302 | |||
| – 12,565 | 1,501 | – 11,064 | |||
| – 66,217 | – 1,787 | 4,899 | – 1,821 | 23,414 | 279,915 |
| – 82,527 | – 1,790 | 4,409 | – 1,987 | 457 | 239,989 |
| – 127 | – 3,313 | – 3,440 | |||
| – 1,425 | 5,306 | 3,881 | |||
| 3,546 | – 38 | 3,508 | |||
| 21,678 | |||||
| – 80,406 | – 1,917 | 1,096 | 3,319 | 419 | 265,616 |
January 1 – June 30, 2010 (previous year's figures in brackets)
| in TEUR | Lasers & Opti cal Systems |
Metrology | Defense & Civil Systems |
Other, Consolidation |
Group |
|---|---|---|---|---|---|
| Sales | 92,906 | 43,421 | 103,147 | 97 | 239,571 |
| (74,075) | (47,994) | (105,182) | (4,075) | (231,326) | |
| of which Germany | 27,470 | 16,034 | 50,583 | 415 | 94,502 |
| (22,526) | (18,576) | (55,199) | (4,238) | (100,539) | |
| European Union | 26,553 | 7,778 | 27,399 | 0 | 61,730 |
| (21,796) | (10,717) | (31,005) | (0) | (63,518) | |
| Other Europe | 2,238 | 1,853 | 10,502 | 0 | 14,593 |
| (3,245) | (2,921) | (9,355) | (0) | (15,521) | |
| NAFTA | 20,193 | 8,249 | 8,370 | – 318 | 36,494 |
| (19,050) | (8,796) | (3,598) | (– 163) | (31,281) | |
| South East/Pacific | 10,308 | 6,787 | 5,460 | 0 | 22,555 |
| (5,154) | (3,567) | (5,777) | (0) | (14,498) | |
| Others | 6,144 | 2,720 | 833 | 0 | 9,697 |
| (2,304) | (3,417) | (248) | (0) | (5,969) | |
| EBIT | 7,168 | – 1,030 | 5,470 | – 1,158 | 10,450 |
| EBIT of prev. year before one-off effects | (– 3,052) | (– 3,932) | (6,950) | (3,320) | (3,286) |
| EBIT of prev. year after one-off effects | (– 10,944) | (– 3,932) | (6,950) | (3,320) | (– 4,606) |
| Earnings before interest, taxes, depreciation | 12,433 | 871 | 8,729 | 1,395 | 23,428 |
| and amortization (EBITDA) | (1,924) | (– 1,252) | (11,379) | (2,901) | (14,952) |
| Earnings from investments in associated and jointly | – 308 | 0 | 0 | 0 | – 308 |
| controlled companies | (– 898) | (0) | (0) | (0) | (– 898) |
| Result from other investments | 8 | 0 | 2 | – 14 | – 4 |
| (– 958) | (107) | (124) | (3) | (– 724) | |
| Research and development expenses | 6,003 | 3,909 | 3,880 | 24 | 13,816 |
| (7,119) | (4,389) | (4,515) | (– 309) | (15,714) | |
| Free cash flow (before income taxes) | 9,525 | 5,808 | 9,534 | 24 | 24,891 |
| (10,479) | (5,473) | (10,836) | (– 310) | (26,478) | |
| Working capital* | 9,694 | – 6,712 | 2,712 | – 2,642 | 3,052 |
| (398) | (1,936) | (4,639) | (– 1,408) | (5,565) | |
| Order intake | 44,806 | 33,867 | 102,867 | – 4,332 | 177,208 |
| (44,394) | (31,612) | (96,301) | (– 5,867) | (166,440) | |
| Tangible assets, investments properties and intangible | 106,616 | 70,912 | 121,778 | 883 | 300,189 |
| assets* | (80,124) | (40,108) | (94,267) | (3,623) | (218,122) |
| Investments excluding company | 91,284 | 16,361 | 37,359 | 104,500 | 249,504 |
| acquisitions | (92,590) | (17,040) | (38,066) | (106,846) | (254,542) |
| Depreciation and amortization | 2,594 | 773 | 2,519 | 891 | 6,777 |
| (2,669) | (1,195) | (2,674) | (1,231) | (7,769) | |
| Employees on annual average | 5,265 | 1,901 | 3,259 | 2,553 | 12,978 |
| (without trainees) | (11,600) | (1,942) | (3,361) | (2,655) | (19,558) |
| 1,182 | 630 | 1,015 | 147 | 2,974 | |
| (1,321) | (773) | (1,035) | (132) | (3,261) | |
* Previous year's figures as at December 31, 2009.
The consolidated financial statements were prepared in accordance with the International Financial Reporting Standards (IFRS) published by the International Accounting Standards Board (IASB) and the interpretation of these standards by the International Financial Reporting Inter pretations Committee (IFRIC).
The consolidated financial statements of JENOPTIK AG have been prepared in accordance with § 315a HGB (German Commercial Code) in line with the rules of the IASB with an exemption from preparation of consolidated financial statements under HGB. At the same time the consolidated financial statements and group management report are in line with the European Union Directive on Consolidated Accounting.
In the consolidated interim report ("interim report") as at June 30, 2010, prepared on the basis of the International Accounting Standard (IAS) 34 "Interim Reporting", the same accounting methods were used as in the consolidated financial statements for the fiscal year 2009. These were prepared in accordance with the International Financial Reporting Standards (IFRS) which have to be applied for reasons of comparison within the European Union. These methods are published individually and described in detail in the Notes to the Annual Report 2009. The Annual Re port can be called up on the Internet at www.jenoptik.com, on the Investors page under the heading Reports & Pre sentations.
The interim report was prepared in the group currency of the Euro and the figures are stated in TEUR unless specified otherwise.
In the opinion of the management, the consolidated interim report includes all standard adjustments to be applied on an ongoing basis that are required to give a true and fair view of the development of the business of the company in the periods under report.
The consolidated financial statements include 17 (prev. year 18) domestic and 8 (prev. year 10) foreign companies fully consolidated. 2 (prev. year 2) joint venture companies are included in the consolidation at equity or proportionally and 1 (prev. year 1) domestic associated company is shown at equity.
| TANGIBLE ASSETS in TEUR | 30.6.2010 | 31.12.2009 |
|---|---|---|
| Land and buildings | 87,984 | 89,753 |
| Technical equipment and machines | 36,692 | 38,303 |
| Other equipment, factory and office equipment |
19,221 | 21,119 |
| On-account payments and assets under construction |
3,684 | 2,968 |
| 147,581 | 152,143 |
| INVENTORIES in TEUR | 30.6.2010 | 31.12.2009 |
|---|---|---|
| Raw materials and supplies Work in progress |
60,687 87,943 |
56,809 81,822 |
| Finished goods and merchandise | 13,629 | 16,034 |
| 162,259 | 154,665 |
| OTHER ASSETS in TEUR | 30.6.2010 | 31.12.2009 |
|---|---|---|
| Trade accounts receivable | 72,275 | 70,873 |
| Receivables from construction contracts | 10,579 | 9,925 |
| Receivables from non-consolidated affiliated companies |
3,892 | 4,195 |
| Receivables from participating interests | 1,292 | 1,869 |
| Other assets | 13,884 | 16,378 |
| 101,922 | 103,240 |
| 148,386 | 158,218 | |
|---|---|---|
| Non-current liabilities from finance leases | 3,128 | 3,822 |
| Non-current bank liabilities | 145,258 | 154,396 |
| LIABILITIES in TEUR | 30.6.2010 | 31.12.2009 |
| LIABILITIES in TEUR | 30.6.2010 | 31.12.2009 |
|---|---|---|
| Bank liabilities | 11,715 | 12,478 |
| Liabilities from finance leases | 1,027 | 1,054 |
| 12,742 | 13,532 |
| Liabilities from on-account payments received |
22,687 | 23,848 |
|---|---|---|
| Trade accounts payable | 39,303 | 38,541 |
| Liabilities from construction contracts | 5,915 | 6,634 |
| Liabilities to affiliated companies | 1,995 | 2,136 |
| Liabilities to participating interests | 3,472 | 3,271 |
| Other current liabilities | 30,616 | 30,200 |
| 103,988 | 104,630 |
30.6.2010
31.12.2009
The current declarations under § 161 AktG (German Stock Corporation Act) by the Executive Board and Supervisory Board relating to the German Corporate Governance Code have been made available to the shareholders at all times via the JENOPTIK AG Internet site. The declaration can also be viewed at JENOPTIK AG.
JENOPTIK AG and the one or the other of its group companies are involved in several legal or arbitration proceed ings. If these could have a substantial effect on the Group's economic situation, these are described in the consolidated financial statements of Jenoptik for the year 2009.
There were no events of special importance occurring after the period covered by the interim report.
To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial report ing, the interim consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the group, and the interim management report of the group includes a fair review of the development and performance of the business and the position of the group, together with a description of the principal opportunities and risks associated with the ex pected development of the group for the remaining months of the fiscal year.
Jena, August 11, 2010
Chairman of the Executive Board Member
Dr. Michael Mertin Frank Einhellinger Executive Board
AUGUST 12, 2010 Publication of the Interim Report 1st half-year 2010
NOVEMBER 11, 2010 Publication of the Interim Report 3th quarter 2010
Steffen Schneider Phone + 49 3641 65-2244 Fax + 49 3641 65-2804 E-mail: [email protected]
Katrin Lauterbach Phone + 49 3641 65-2255 Fax + 49 3641 65-2484 E-mail: [email protected]
www.jenoptik.com
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