Quarterly Report • Nov 13, 2007
Quarterly Report
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| Figures in TEUR | Jan. – Sept. 2007 | Jan.– Sept. 2006 * | Change in % | July – Sept. 2007 | July –Sept. 2006 * | Change in % |
|---|---|---|---|---|---|---|
| Sales | 374,714 | 344,307 | 8.8 | 120,971 | 119,424 | 1.3 |
| Laser & Optics | 159,867 | 145,866 | 9.6 | 50,449 | 50,400 | 0.1 |
| Sensors | 115,872 | 108,090 | 7.2 | 37,818 | 39,169 | – 3.4 |
| Mechatronics | 94,525 | 83,723 | 12.9 | 30,657 | 27,944 | 9.7 |
| Other** | 4,450 | 6,628 | – 32.9 | 2,047 | 1,911 | 7.1 |
| EBITDA | 45,274 | 46,665 | – 3.0 | 15,921 | 15,362 | 3.6 |
| Laser & Optics | 28,909 | 23,845 | 21.2 | 8,445 | 8,131 | 3.9 |
| Sensors | 7,526 | 16,673 | – 54.9 | 1,741 | 5,267 | – 66.9 |
| Mechatronics | 6,655 | 5,092 | 30.7 | 2,652 | 1,795 | 47.7 |
| Other** | 2,184 | 1,055 | 107.0 | 3,083 | 169 | ++ |
| EBIT | 21,152 | 24,159 | – 12.4 | 8,071 | 8,041 | 0.4 |
| Laser & Optics | 15,990 | 11,651 | 37.2 | 4,378 | 4,160 | 5.2 |
| Sensors | 3,478 | 13,522 | – 74.3 | 288 | 4,308 | – 93.3 |
| Mechatronics | 4,103 | 2,492 | 64.6 | 1,823 | 931 | 95.8 |
| Other** | – 2,419 | – 3,506 | 31.0 | 1,582 | – 1,358 | 216.5 |
| EBIT margin (EBIT as % of sales) | 5.6 | 7.0 | 6.7 | 6.7 | ||
| Laser & Optics | 10.0 | 8.0 | 8.7 | 8.3 | ||
| Sensors | 3.0 | 12.5 | 0.8 | 11.0 | ||
| Mechatronics | 4.3 | 3.0 | 5.9 | 3.3 | ||
| Other** | – 54.4 | – 52.9 | 77.3 | – 71.1 | ||
| Earnings before tax | 2,097 | 10,503 | –80.0 | 1,654 | 1,166 | 41.9 |
| Earnings after tax | – 2,485 | 11,818 | – 121.0 | – 3,041 | 1,372 | – 321.6 |
| Order intake | 368,940 | 346,459 | 6.5 | 116,558 | 103,293 | 12.8 |
| Laser & Optics | 166,803 | 143,664 | 16.1 | 48,076 | 45,054 | 6.7 |
| Sensors | 114,656 | 101,805 | 12.6 | 44,223 | 34,110 | 29.6 |
| Mechatronics | 80,930 | 94,327 | – 14.2 | 21,440 | 22,222 | – 3.5 |
| Other** | 6,551 | 6,663 | – 1.7 | 2,819 | 1,907 | 47.8 |
| Sept. 30, 2007 | Dec. 31, 2006 | Sept. 30, 2006 |
| Order backlog | 427,540 | 438,378 | 436,052 |
|---|---|---|---|
| Laser & Optics | 74,252 | 66,073 | 55,194 |
| Sensors | 67,024 | 68,993 | 62,586 |
| Mechatronics | 286,264 | 303,312 | 318,272 |
| Other** | 0 | 0 | 0 |
| Employees (incl. trainees) | 3,363 | 3,192 | 2,921 |
| Laser & Optics | 1,310 | 1,254 | 1,234 |
| Sensors | 1,156 | 1,050 | 800 |
| Mechatronics | 837 | 828 | 829 |
| Other** | 60 | 60 | 58 |
* The figures for 2006 include only the continuing business division.
** Other includes holding, real estate, consolidation.
Jenoptik specializes in photonic and mechatronic technologies and is one of the technology and market lead ers in selected areas. The Group is actively engaged in its four areas of expertise of lasers/optics, optoelectron ics and mechatronics. The Jenoptik Group employs around 3,300 personnel worldwide.
The listed company JENOPTIK AG is not itself engaged in the operating business. It holds investments in more than 25 operating companies which will be organized into five divisions with effect from January 1. More de tailed information on the future group structure can be found in the Forecast from P. 15 of this nine-monthly report.
Following a temporary, strong rise during the first half year 2007 in August this year the companies listed on the Dax and TecDax indices reported sharp falls in their share prices. By the end of September however the TecDax in particular successfully recouped these losses. As at end September both indices were sharply above the levels at the start of the year. The Dax rose by nearly 18 percent to 7861.51 points on September 28, with the TecDax actually reporting an increase of approx. 27 percent to 966.06 points.
The Jenoptik share was unable to keep pace with this very positive trend during the third quarter 2007. The announcement of the results for the first half year 2007 and reduction in the forecast for the operating results in particular prompted a marked fall in the price of the Jenoptik security. Since the start of the year the share has lost approx. 11 percent and was trading at 6.92 euros on September 28, 2007. The Jenoptik share reached its high in the first nine months 2007 of 8.29 euros on January 30 and its low of 6.54 euros on September 24. With effect from September 24 the Jenoptik share was removed from the TecDax due to insufficient exchange volumes.
During the third quarter the Jenoptik management provided analysts and investors with information on the development of business and the first steps in the strategic reorientation of the Jenoptik Group by way of an analysts' conference in Frankfurt, roadshows in Frank furt, London and, at the beginning of October in New York, as well as at capital markets conferences.
At the beginning of July the rating agency Standard & Poor's upgraded the JENOPTIK AG rating from B+ to BB-, stable outlook. Standard & Poor's expects the early repayment of the bond to improve the financial profile and cash flow.
| Earnings per share | in TEUR | |
|---|---|---|
| 1.1. – 30.9.2007 | 1.1. – 30.9.2006 | |
| Net profit | – 4,273 | 9,954 |
| Weight. average number of outst. shares | 52,033,002 | 52,028,475 |
| Earnings per share in euros | – 0.08 | 0.19 |
| Dilution effect* | 1,656 | 1,381 |
| Weight. average number of outst. shares** | 56,916,421 | 56,911,931 |
| Earnings per share in euros** | – 0.08 | 0.19 |
Earnings per share represent the net profit divided by the weighted average number of shares outstanding. In calculating the diluted earnings per share the dilution effects are accounted for in determining the weighted average number of shares outstanding. The weighted average number of outstanding shares is adjusted for the effect of the options granted in the convertible bond assuming all options are exercised. The diluted earnings per share were reduced to the lower undiluted earnings per share.
* After taking deferred taxes into account. ** diluted
The global economy is growing, however the expectations for economic activity over the short-term have become slightly clouded following the financial turbulences resulting from the US mortgage crisis. The Inter national Monetary Fund (IMF) has therefore slightly reduced its growth targets for all the major economies both for 2007 as well as for 2008.
According to forecasts by the European Commission the negative consequences of the financial crisis for the euro zone have so far been kept within limits. How ever, the risk of a slowdown in the existing pace of growth is today considered clearly greater than it was in summer.
The German economy has had its spirits dampened but is still performing well. The main driving forces are the manufacturing industry and exports which have report ed further sharp rises despite the strong euro. How ever, in September 2007 the levels of the Ifo Business Climate Index have fallen for the fourth time in succession.
In Jenoptik's key markets the development of business showed a differentiated pattern:
For the German companies in the lasers and optical components area the industry association Spectaris anticipates an 11.5 percent increase in sales in comparison with the previous year, to 8.9 billion euros.
In September the semiconductor sector posted a marked rise of 5.9 percent in revenues – compared with the previous year. According to information from the SIA (Semiconductor Industry Association) this was attributable to the second strong month of growth. The reason behind this is said to be the increased demand for computers and mobile phones.
In the German metrology, sensor systems, other photonics and precision engineering industry, total sales in 2006 rose by 5.7 percent compared with the previous year. According to details from Spectaris the level of exports remained unchanged at 54.7 percent.
By contrast, in the traffic monitoring market weak exports during the first half-year 2007 and beyond were the reason why the development of business remained sharply below expectations. On the domestic front digital camera technology for stationary applica tions are in demand.
In 2007 the German automobile industry lost impetus on the domestic market despite the general economic upturn. Exports account for 75 percent of production. The automobile industry association, the VDA, sees the increase in VAT and the debate on climate change as the reason behind weak domestic demand. The sector is hoping for a recovery in 2008. By contrast, according to the assessment of a current sector study by the IKB Deutsche Industriebank, German automotive suppliers are booming as the manufacturers are increasingly relying on their suppliers for innovations.
Important note on the comparability of figures in the previous year with those for the first nine months of 2007: unless stated otherwise the figures for the previous year which were shown in the report on the first nine months of 2006 for the continuing business divi sions can be compared with the figures for the first nine months of 2007.
Sales development. Jenoptik Group sales totaled 374.7 million euros (prev. year 344.3 million euros). The 8.8 percent increase came from all three of the Group's divisions. The Lasers & Optics and Mechatronics divi sions in particular reported a high level of growth. In the Sensors division the Etamic Group and Detroit Precision Hommel Inc., which were not included in the previous year, made a key impact through their con tribu tion to sales in the sum of approx. 24.5 million euros. Exports' share of sales for the Group as a whole was 214.9 million euros, consequently accounting for 57.3 percent (prev. year 197.9 million euros).
The cost of sales totaled 264.3 million euros (prev. year 239.0 million euros) and were therefore 10.6 percent up on the figure for the same period in the previous year. This increase is attributable not only to the nearly nine-percent growth in sales but also to companies which were consolidated for the first time and have not yet reached the margins achieved elsewhere by Jenoptik. The lower sales and share of sales produced
by the traffic safety technology area also had an effect. The gross profit in the sum of 110.4 million euros represents a gross margin of 29.5 percent (prev year 30.6 percent).
Earnings development in the 3rd quarter was in line with the statements issued in the half-year report. The result of operating activities in the three divisions – very good in the Lasers & Optics and Mechatronics divisions and clearly below those of the previous year in the Sensors division – showed no major change during the course of the 3rd quarter 2007.
Earnings before taxes, financial result and depreciation and amortization of the Jenoptik Group (EBITDA) came in at 45.3 million euros, representing a slight fall of 3 percent compared with the same period in the previous year (prev. year 46.7 million euros).
The Group EBIT totaled 21.2 million euros (prev. year 24.2 million euros). The 12.4 percent reduction was primarily due to the result posted by the Sensors divi sion which was down by 74.3 percent and approx. 10 million euros in total terms, compared with a year ago. This figure was only partially offset by the very good earnings development in the Mechatronics and the Lasers & Optics divisions. The contribution to the EBIT from the Mechatronics division increased by 1.6 million euros over the same period in the previous year (plus 64.6 percent), that of the Lasers & Optics division by 4.3 million euros (plus 37.2 percent). In the Sensors
| Sales | in TEUR | EBIT | in TEUR | ||||
|---|---|---|---|---|---|---|---|
| 1.1. to 30.9.2007 |
1.1. to 30.9.2006 |
Change | 1.1. to 30.9.2007 |
1.1. to 30.9.2006 |
Change | ||
| Total | 374,714 | 344,307 | 8.8 % | Total | 21,152 | 24,159 | – 12.4 % |
| Laser & Optics | 159,867 | 145,866 | 9.6 % | Laser & Optics | 15,990 | 11,651 | 37.2 % |
| Sensors | 115,872 | 108,090 | 7.2 % | Sensors | 3,478 | 13,522 | – 74.3 % |
| Mechatronics | 94,525 | 83,723 | 12.9 % | Mechatronics | 4,103 | 2,492 | 64.6 % |
| Other | 4,450 | 6,628 | – 32.9 % | Other | – 2,419 | – 3,506 | 31.0 % |
division we are still seeing no major improvement in the market situation for traffic safety technology. In addition, this area of business is continuing to invest heavily in the expansion of its business in the USA. Furthermore, in the industrial metrology area, another key pillar of the Group's Sensors division, the integra tion of Hommelwerke and the French company Etamic worldwide is proceeding according to plan. As expect ed, Etamic is not yet making any contribution to the Group results.
The net financial result, at minus 19.1 million euros, was 5.4 million euros lower than in the same period for the previous year (prev. year minus 13.7 million euros). This difference is due to the markedly lower inter est income of 5.9 million euros (prev. year 10.8 million euros). The main reason for the fall is one-off interest income which was included in the previous year in connection with the M+W Zander sales process. The inter est income is offset by interest expenses of 21.0 mil lion euros, comparable with those of the previous year (prev. year 21.2 million euros).
Earnings before tax came in at 2.1 million euros compared with 10.5 million euros in the same period of the previous year as a result of the approx. 3 million euro reduction in the EBIT and the financial result which was down by approx. 5 million euros.
Whilst income taxes totaled 0.6 million euros and were primarily incurred in the foreign subsidiaries, the consolidated result is reduced by non-cash effective deferred taxes in the sum of 4.0 million euros. This one-off effect as at the end of the 3rd quarter 2007 is the
result of the German tax reform which will come into force with effect from January 1, 2008. As a consequence of the reforms, Jenoptik will be charged at a lower rate for income taxes from 2008. This does however also mean a reduction in the tax savings re sulting from the loss carried forward and differences between IFRS and tax balance sheet. In accordance with the IFRS accounting these tax savings must be capitalized. The capitalized amounts from these two positions had to be adjusted to the in future lower tax rate and impact ed on expenses as at the end of the 3rd quarter. Jen op tik was able to partially offset this effect since only a small proportion of the loss carried forward was capitalized.
For this reason the earnings after tax of the Jenoptik Group showed a negative figure, coming in at minus 2.5 million euros (prev. year 11.8 million euros).
Development of orders. The Jenoptik Group order in take rose by 6.5 percent to 368.9 million euros (prev. year 346.5 million euros). The impetus for this figure came from the Lasers & Optics division which succeed ed in growing its order intake by 16.1 percent. The 12.6 percent increase in orders recorded by the Sensors division came from the area of industrial metrology which recorded an overall positive order intake and furthermore, the order intake of Etamic, acquired in 2006, was for the first time also shown in full in this year. The order intakes of the traffic safety technology business increased slightly compared with the first two quarters 2007. However, this division was unable to report a similar scale of major export orders which were a characteristic feature of the previous years. As expected,
| Order intake | in TEUR | ||
|---|---|---|---|
| 1.1. to 30.9.2007 |
1.1. to 30.9.2006 |
Change | |
| Total | 368,940 | 346,459 | 6.5 % |
| Laser & Optics | 166,803 | 143,664 | 16.1 % |
| Sensors | 114,656 | 101,805 | 12.6 % |
| Mechatronics | 80,930 | 94,327 | – 14.2 % |
| Other | 6,551 | 6,663 | –1.7 % |
| Order backlog | in TEUR | ||
|---|---|---|---|
| 30.9.2007 | 31.12.2006 | 30.9.2006 | |
| Total | 427,540 | 438,378 | 436,052 |
| Laser & Optics | 74,252 | 66,073 | 55,194 |
| Sensors | 67,024 | 68,993 | 62,586 |
| Mechatronics | 286,264 | 303,312 | 318,272 |
| Other | 0 | 0 | 0 |
the order intakes in the Mechatronics division, in which major long-term orders are a typical feature, came in below the level for the previous year.
The Jenoptik Group recorded an order backlog of 427.5 million euros representing a reduction of approx. 10 million euros compared with the comparison qualifying date December 31, 2006 (as of Dec. 31, 2006: 438.4 million euros). In the Lasers & Optics division there was a marked increase in the order backlog despite the significant rise in sales. The order backlog of the Sensors division remained virtually unchanged – despite the figures for Etamic which are now included. In the Mechatronics division major orders, a characte r istic feature of the order backlog, are being processed as planned, leading to a reduction in the order backlog, as had been anticipated.
Research and development. The research and development expenses totaled 25.1 million euros and therefore showed a small 5.8 percent increase compared with the same period in the previous year (prev year 23.7 million euros). This figure includes 1.9 million euros as depreciation on development projects which were thus higher compared with the previous year (prev. year 1.5 million euros). By contrast, the R+D expenses do not include the development-intensive XTREME technologies GmbH which is shown at equity in the balance sheet as a joint venture between Jenoptik and the Japanese Ushio Group and was therefore included in the investment result.
Development of employees. There was a further in crease in the number of personnel employed by the Jenoptik Group compared with December 31, 2006. As of September 30, 2007 a total of 3,363 personnel were employed at Jenoptik (Dec. 31, 2006: 3,192). The increase of 171 or 5.3 percent of the workforce was the result both of new appointments as well as addi tions from newly consolidated companies such as Detroit Precision Hommel Inc. in the USA, as a result of which the number of personnel employed abroad has now increased to 515 or 15.3 percent.
Financial indicators. As in the 1st half-year 2007, during the course of the 3rd quarter there were no major changes in the balance sheet and key financial indicators. The proportion of non-current financial liabilities, at 77.2 percent, was at a similar level to that as at end 2006. There was also no significant change in the net debt which totaled 210.4 million euros as of September 30, 2007, despite the takeover of Detroit Precision Hommel and the remaining shares in SINAR AG in the 2nd quarter (as of Dec. 31, 2006: 203.0 million euros).
Investment analysis. Investments in intangible assets and tangible assets in the first nine months of the 2007 fiscal year totaled 24.3 million euros (prev. year 24.7 million euros). Of this figure 7.8 million euros or 32.1 percent was invested in intangible assets (prev. year 10.8 million euros) with capitalized development costs accounting for a large share of this at 5.5 million euros
| R+D expenses | in TEUR | ||
|---|---|---|---|
| 1.1. to 30.9.2007 |
1.1. to 30.9.2006 |
Change | |
| Total | 25,054 | 23,689 | 5.8 % |
| Laser & Optics | 14,183 | 12,539 | 13.1 % |
| Sensors | 9,981 | 9,675 | 3.2 % |
| Mechatronics | 2,716 | 3,382 | – 19.7 % |
| Other | – 1,826 | – 1,907 | – 4.2 % |
| 30.9.2007 | 31.12.2006 | 30.9.2006 | |
|---|---|---|---|
| Total | 3,363 | 3,192 | 2,921 |
| Laser & Optics | 1,310 | 1,254 | 1,234 |
| Sensors | 1,156 | 1,050 | 800 |
| Mechatronics | 837 | 828 | 829 |
| Other | 60 | 60 | 58 |
(prev. year 5.3 million euros). Tangible assets which received investment totaling 16.5 million euros (prev. year 13.9 million euros) were dominated by investments in technical equipment and machinery or other equipment, factory and office equipment. The investments were offset by depreciation on intangible assets and tangible assets in the sum of 24.1 million euros (prev. year 22.5 million euros) of which 5.8 million euros was applied to intangible assets (prev. year 5.1 million euros).
Financial assets, including shares in associated companies, remained virtually constant at 55.7 million euros (as of Dec. 31, 2006: 56.4 million euros).
Cash flow analysis. The statement of cash flows for the previous year includes the discontinued business area M+W Zander up to the date of its deconsolidation during the course of the 2nd quarter 2006. The statement of cash flows for the same period in the previous year was shown for the continuing business divisions in order to provide for better comparison.
The cash flow from operating activities, at 27.1 million euros, showed a marked 10.5 million euro in crease compared with the figure for the previous year (prev. year 16.6 million euros). This was the result primarily of improvements in the working capital. A sys tem of active working capital management has been an integral part of the corporate controls since the beginning of 2007. In the same period for the previous year the increase in working capital within a period of less than a year was still 33.4 million euros, significantly reducing the cash flow. In 2007, despite an equally marked rise in sales, the increase in working capital affecting cash flow was only 11.1 million euros and thus markedly lower than in the previous year. All three divisions contributed towards the significant increase in the operating cash flow.
The cash flow from investing activities totaled minus 16.7 million euros (prev. year 146.0 million euros) and mainly includes the payments for investments in intangible assets in the sum of 7.8 million euros (prev. year 11.4 million euros) and for tangible assets in the sum of 16.1 million euros (prev. year 13.5 million euros) which include, amongst other things, payments for the child daycare center. In the previous year the cash flow from investing activities was characterized by the re ceipts from the liquidation of securities funds, the sales of part of the DEWB shares plus, in particular, the payments resulting from the sale of M+W Zander.
The cash flow from financing activities came in at minus 8.8 million euros and was primarily influenced by interest payments in the sum of 14.5 (prev. year 16.3 million euros).
Balance sheet analysis. At 884.9 million euros the Jenoptik Group balance sheet total showed a slight rise of 11.2 million euros compared with December 31, 2006 (as of Dec. 31, 2006: 873.7 million euros). The prime reasons for this are the newly consolidated companies in 2007 such as Detroit Precision Hommel Inc.
| Net debt | in TEUR | ||
|---|---|---|---|
| 30.9.2007 | 31.12.2006 | 30.9.2006 | |
| Total | – 210,375 | – 203,030 | – 211,079 |
| Securities | 1,458 | 3,638 | 1,952 |
| Cash and cash equivalents | 155,318 | 153,840 | 156,407 |
| Non-current financial liabilities | 283,533 | 281,679 | 281,758 |
| Current financial liabilities | 83,618 | 78,829 | 87,680 |
On the assets side non-current assets remained un changed at 416.8 million euros (as of Dec. 31, 2006: 416.9 million euros). The capitalized loss carried forward was adjusted in the course of the tax reform from the previous 55.1 to the new figure of 50.9 mil lion euros. Current assets report ed an 11.4 million euro rise as a result of increased in ventories, to 468.1 million euros (as of December 31, 2006: 456.7 million euros).
Shareholders' equity rose by 5.0 million euros to 304.4 million euros (as of Dec. 31, 2006: 299.4 million euros). The increase in the value of the PVA TePla shares had a positive effect whilst by contrast the tax reform and the resultant adjustments to the loss carried forward, had a negative impact on the shareholders' equity. The shareholders' equity ratio remained virtually unchanged at 34.5 percent with a simultaneous slight increase in the balance sheet total (as of Dec. 31, 2006: 34.3 percent).
Non-current liabilities reduced slightly by 2.1 million euros to 331.1 million euros (as of Dec. 31, 2006: 333.2 million euros). There were only minor changes respectively in the individual items, with the slight increase of 1.8 million euros in non-current financial liabilities, to 283.5 million euros (as of Dec. 31, 2006: 281.7 million euros) being attributable to the non-cash effects, in particular to the discounting of the conver tible bond.
Current liabilities totaled 249.4 million euros (as of Dec. 31, 2006: 241.1 million euros). There were however marked changes within the current financial liabilities.
As a result of the increase in liabilities to banks which rose to 79.8 million euros (as of Dec. 31, 2006: 65.8 million euros) liabilities arising from the commercial paper program were repaid in the sum of 9.4 million euros, reducing them to just 2.0 million euros (as of Dec. 31, 2006: 11.4 million euros). Liabilities arising from the operational business activities, at 68.7 million euros, remained almost constant compared with the end of 2006 (as of Dec. 31, 2006: 66.9 million euros).
Purchases and sales of companies. In the current fiscal year Jenoptik acquired 100 percent of the shares in Detroit Precision Hommel Inc. and SINAR AG. Detroit Precision Hommel, Inc. has been fully consolidated since April 2, 2007 and included in the income statement on a proportional basis. SINAR AG, in which Jenoptik previously held 51 percent of the shares, had already been fully consolidated.
The joint venture company JT Optical Engine GmbH + Co. KG has been shown in the balance sheet at equity since July 2007 and is therefore included in the investment result. Jenoptik had invested the business activities of a non-consolidated R+D project company into the joint venture with Trumpf in which both partners hold 50 percent.
The Lasers & Optics division increased its sales by 9.6 percent to 159.9 million euros (prev. year 145.9 million euros) and consequently accounted for 42.7 percent of Group sales. The result of operating activities grew sharply and at a disproportionately high rate to the growth in sales to 16.0 million euros. This represents a 37.2 percent increase over the first nine business months of the year 2006 (prev. year 11.7 million euros). The optics business is the main engine driving growth in the division.
The division's order intake increased by 16.1 percent over the same period in the previous year to 166.8 million euros (prev. year 143.7 million euros). In terms of sales this corresponds to a book-to-bill rate of 1.05. The order backlog of the division grew accordingly from 66.1 million euros at the end of 2006 to 74.3 million euros as at September 30, 2007.
The number of employees in the Lasers & Optics divi sion rose by 56 or 4.5 percent to a total of 1,310 (as of Dec. 31, 2006: 1,254). The increase is almost exclusively attributable to new appointments as a result of the strong growth but was clearly at a disproportionately lower rate to the rise in sales.
In the lasers area Jenoptik expanded its cooperation arrangement with Trumpf in June 2007 and established a joint venture for the development, production and mar keting of so-called optical engines. The joint venture JT Optical Engines GmbH + Co. KG will offer the modules on a worldwide basis and also supply both partners. Trumpf and Jenoptik have been working together in the area of high-power diode lasers since 2001. Jenoptik has further strengthened this branch of its business through the full integration of unique mode, which was acquired in 2006, into JENOPTIK Laserdiode GmbH. The amalgamation, completed in the 3rd quarter, will enable Jenoptik Laserdiode to strengthen its core areas of expertise particularly in the fiber coupling business.
All three areas in the optics business, micro, polymer and high-performance optics contributed towards the growth.
The amalgamation of the digital imaging activities, one of the cross- sectional areas of expertise in the Group, was intensified. Under the management of Wolfgang Keller, director of the Digital Imaging unit, the Swiss subsidiary SINAR AG plus the imaging systems business of JENOPTIK Laser, Optik, Systeme GmbH are working more closely together than in the past in marketing/ distribution, development and production. The latest product from this area, the new Sinar Hy6 mediumformat camera for professional photographers, was successfully launched in September 2007.
During the course of the 3rd quarter the Sensors divi sion was still not able to repeat the level of perform ance achieved in the previous year. The trend in the first two quarters of the current fiscal year continued. The growth rates in sales and order intakes are attributable to Etamic, which is included in the figures for the first time in this fiscal year, as well as to Detroit Precision Hommel Inc., full ownership of which was acquired in the Spring and which is now included on a pro rata basis.
The Sensors division posted sales of 115.9 million euros, showing an increase of 7.2 percent over a year ago (prev. year 108.1 million euros), with around 24.5 million euros of which coming from the Etamic Group and Detroit Precision Hommel Inc. The result of operat ing activities by the Sensors division showed a sharp 74.3 percent drop to just 3.5 million euros now (prev. year 13.5 million euros). The main reason for this is the continuing weakness in the international market for traffic safety technology. This area of business is also continuing a massive program of expansion for the new service providing business in the USA. In the in dustrial metrology business the integration of Etamic and Hommelwerke to create an international systems pro vider for industrial manufacturing metrology is continuing.
The Sensors division increased its order intake to 114.7 million euros, representing a rise of 12.6 percent compared with the same period in the previous year (prev. year 101.8 million euros). Here again the growth is primarily attributable to the new companies in the indus trial metrology business. Because of its business model the order intake for North America in the traffic safety technology business, recorded at the start of the year, is essentially not included in the order intake nor consequently in the order backlog. Another major order was received from the solar industry for which Jenoptik will supply series systems for the structuring of thin-film solar cells.
According to a book-to-bill rate of 0.95, the order backlog of the Sensors division, at 67.0 million euros, came in at almost the same level as of end of 2006 (as of Dec. 31, 2006: 69.0 million euros).
The number of employees of the division showed a marked increase in the proportion of foreign em ployees compared with December 31, 2006 due, amongst other things, to the full acquisition of the US company Detroit Precision Hommel Inc. There was consequently also a marked increase in the total number of employees in the Sensors division: as of September 30, 2007 the division employed 1,156 personnel, a rise of 106 compared with the end of 2006 (as of Dec. 31, 2006: 1,050 employees).
The Mechatronics division continued the positive business development achieved in the 1st half year: sales and results showed marked increases over the same period for the previous year. However, because of the primarily long-term nature of the business fluctuations in sales, results and order situation in the Mechatronics division – positive or negative – are of less relevance than in the other two divisions.
In the first nine months of the current fiscal year the Mechatronics division posted sales of 94.5 million euros (prev. year 83.7 million euros). This 12.9 percent increase is partly attributable to shifts in longer-term projects. The result of operating activities by the divi sion showed a sharp increase of 64.6 percent to 4.1 million euros (prev. year 2.5 million euros). However, this result can not be extrapolated for the full year since the majority of sales and consequently the results as well are generated in the fourth quarter.
The long-term, project-related nature of the business, more than 75 percent of which is generated in the defense technology area, can clearly be seen from the order intake which, at 80.9 million euros, is, as expected, down on the high level achieved in the previous year (prev. year 94.3 million euros).
The number of employees in the Mechatronics division rose by 9 to a total of 837 (as of Dec. 31, 2006: 828). The new additions came exclusively from Lechmotoren GmbH, based in the Bavarian town of Altenstadt which, in 2007, was awarded new orders mainly for the maintenance of technical equipment systems for the US Army.
At the beginning of October Jenoptik sold all of its shares in PVA TePla AG. This generated cash flow in excess of 20 million euros. As planned, Jenoptik uses this liquidity to repay liabilities, in particular the remain ing liability to the minority shareholders of the Clean Systems business division, sold in 2006, in the sum of approx. 15 million euros was redeemed.
In October Jenoptik announced that, as planned, it would be redeeming the fixed interest-bearing bond in the nominal sum of 156 million euros prematurely as at November 15 this year, i.e. at the earliest possible date. More information on this is given in the Outlook for the full year 2007 contained in this report on P. 18.
There were no other events of significant importance occurring after the end of the period covered by the report from January 1 to September 30, 2007.
Jenoptik notched up a further success in the patent litigation with Asyst Technologies Inc. before the US District Court in San José. Contrary to the jury recommendation dated February 1, 2007 to order Jenoptik to pay damages in the sum of 57.6 million euros for alleged patent infringement, on August 3, 2007 the court rejected the claim for the third time in succes sion. As expected, the defeated plaintiff has since filed another appeal against this decision.
The risk arising from guarantees for the M+W Zander Group resp. its successor company has been further reduced during the first nine months of the current fiscal year. With the revolving framework of guarantees for M+W Zander (excluding the Fab 36 guarantee) having been reduced in the 4th quarter 2006 from the original 150 million euros to 33 million euros, it subsequently expired in February 2007. The old guarantees arising from this framework have been reduced to approx. 7.7 million euros as of September 30, 2007. There is currently no indication that this will result in Jenoptik incurring further expenses. No new guarantees can now be issued by M + W Zander on Jenoptik lines.
In addition, the guarantees for the former M+W Zan der Gebäudetechnik GmbH (today trading as caverion) were reduced in 2007 from 180 million euros to 150 million euros. The budgeted liquidity facility was also further lowered from 30.1 million euros to 12.9 million euros. Since caverion's operating business has conti nued to improve there has been a marked reduction in the risk for Jenoptik.
By contrast, the risk arising from misguided developments as well as from additional adjustments to the Group portfolio increased for the Jenoptik Group during the third quarter compared with the report on risks contained in the 2006 Annual Report.
In conjunction with the ongoing concentration on its core areas of expertise, Jenoptik is consis tently ad justing its product and technology portfolio. Negotiations currently being held with interested parties for research and business activities might be concluded under terms and conditions that will necessitate value adjustments. There is also a possibility of the negotiations failing. Value adjustments which arise in connection with a sale or a failure and thus a possible termination of these activities, can have a negative impact on the Group result for the current fiscal year, although at this point in time it is not possible to place a figure on this.
Regarding the opportunities and risk report we refer further to the comprehensive details contained in the 2006 Annual Report from P. 83. With the exception of the above-mentioned risk situations, in the period covered by the report there were no other major changes in the opportunities and risk management system or in the opportunities and risks.
Over the long term, Jenoptik aims to once again be come a billion euro group. To achieve this the target is an annual growth rate of 10 percent on average – including smaller acquisitions which expand both the technology and product portfolio as well as the international market presence. A long-term marked im provement of earnings shall be achieved both through new products with high earnings potential and new markets as well as through substantial cost reductions. Therefore, the focus of the further development of Jenoptik will be on:
We have pressed rapidly ahead with the further devel opment of Jenoptik. As a result of focusing the Group on its core activities of lasers/optics, optoelectronics and mechatronics, Jenoptik has already withdrawn from a number of activities that do not form part of the strategic core topics. These include the reduction of the shareholding in what is now Zenteris GmbH from the previous 100 to just 24.9 percent, the sale of the entire shareholding in PVA TePla AG in which Jenoptik originally held a 17.95 percent stake as well as the sale of 33 percent of the shares in KSI Krämer Scientific
Instruments during the current fourth quarter. Amongst other things, for 2008, preparations for the sale of real estate which is not required for operational purposes and not used by the group itself are made. In addition, research and development topics of the Group are being analyzed at present.
A new Group structure – and thus a better defined management structure that will be introduced with effect from January 2008 – form the basis for a stronger market and client-driven approach and cost savings.
With effect from January 2008 the Jenoptik Group will be organized into three segments, which are divided into five divisions in total, which combine the operational business:
Defense and Civil Systems segment
– Defense and Civil Systems division
With this new organization we are creating the condi tions required to facilitate and intensify the Group's further strategic development over and beyond the boundaries of the individual subsidiaries.
The focus of this divisional structure was placed on client groups, technologies, development topics and production processes of the group companies which are similar in nature. The new organization is intended to enable us to be more successful than in the past to bring efficiently products and technologies to market that offer a high level of client benefit.
With the new organizational structure the management structure of the Group will change too. In future strategic decisions will be made by the Executive Management Board with the managers of the five divisions being members of this board.
These changes had become necessary after the sale of M+W Zander and due to the strong growth of the technology business.
At the same time, JENOPTIK AG is being developed further into a strategic holding company. The kind of financial holding company which Jenoptik previously maintained, is no longer adequate for the purpose of managing a focused group. The further devel opment of the Jenoptik holding company actually began at the beginning of 2007. New central departments have been established expanding its strategic functions in comparison with the previous years. The central departments of Strategy & Innovation Management, Human Resources as well as Mergers & Acquisitions have been established. A group-wide Shared Service Center, which combines comprehensive processes with high potential for cost reduction, will start in 2008.
Since January of the current business year the operat ing cash flow and strategic objectives have been added to the controlling system for the operational business which before only included financial key performance indicators. The expansion of the controlling system has produced first results already at the end of the 3rd quarter 2007, in particular in the cash flow from ope r ating activities (see Page 9). With effect from 2008 additional strategic controlling instruments will be introduced step by step.
The measures mentioned above are the main cornerstones of the comprehensive realignment of the Jenoptik Group.
All projects of the strategic realignment, which have already been defined and some of which have been started, are combined under the following five value levers which form the basis for the next 3 to 5 years:
organic growth through opening up new markets, market penetration and product innovations,
market and client orientation through the expansion of the distribution and marketing activities,
internationalization through the systematically opening up of foreign markets, particularly in North America and Asia,
personnel & management by challenging and devel oping employees and management personnel and
operational excellence by analyzing all processes in the company in order to improve them and reduce costs.
It is still impossible to calculate precisely the full impact of the US financial crisis on the global economy. Economists are concerned about the growing risk of inflation and high oil prices. In the euro zone the strength of the euro compared with the weakness of the dollar could give rise to prob lems.
According to the overwhelming view of economists the turbulences on the international markets will not put a halt to the upturn in Germany. The economy remains robust. According to the current autumn report by leading economic institutes, GDP in 2007 is expected to increase by 2.6 percent and in 2008 by 2.2 percent and was therefore only adjusted slightly downwards in each case. Economists are in hopeful mood about increasing private consumer spending in many areas in Germany which is attributable, amongst other things, to the positive trend in the job market.
According to Spectaris German companies in the optical technologies area can expect disproportionate growth in sales, averaging 8.5 percent per annum up to 2015. According to assessments by the Federal Ministry for Education and Research, optical technologies will be amongst the future technologies of the 21st Century.
Following the higher than expected increase in sales by the semiconductor sector in September, the sector association SIA now again anticipates a slight improve-
ment in the full year sales for 2007 over the forecasts in summer. By contrast, 2008 is expected to show solid growth. The sector expert Gartner has slightly reduced its expectations for equipment manufacturers for 2008.
The automobile sector is undergoing a major change worldwide and continuing to differentiate. On the one side, over the years ahead the expanding emerging nations will be increasingly demanding attractivelypriced and technically simpler products. On the other side it is also forecast that there will be an increase in sales particularly of luxury vehicles. The German supplier industry will be able to benefit in particular from the latter trend as it takes a flexible and inno va tive approach to new challenges
Sales of the Jenoptik Group are expected to come in at between 510 and 535 million euros in the full year 2007, in 2008 the figure is anticipated to break through the 550 million euro barrier. All three of the Group's divisions are expected to contribute towards the growth in sales.
Following the leap in sales in 2006 the Lasers & Optics division is planning to generate sales of between 200 and 210 million euros. If the current 4th quarter will also show an extremely positive trend, the division's sales may even exceed the forecast range. Sales of the Mechatronics division in 2007 are anticipated to reach
between 120 und 130 million euros and – providing the positive business situation continues – may also slightly exceed this range. Sales of the Sensors division will probably come in below the targeted range of 180 to 190 million euros. This will, however, be completely compensated by the two other divisions.
Providing the very good trend in results achieved by the Lasers & Optics division continues and subject to a stable Mechatronics division which, as in previous years, is expected to make significant contributions to sales and results in the 4th quarter, it will be possible to continue partly offsetting but not fully compensating the drop in the results of the Sensors division.
There fore, despite the fact that the Laser & Optics division will probably exceed our expectations and a stable situation in the Mechatronics division and the industrial metrology area, the Group operating result before one-off effects is expected to come in at 32 to 36 million euros, as announced in the half-year report.
In addition to this contribution to operating results – over and above the effects arising from the tax reforms and the sale of PVA TePla shares – further one-off effects are expected in the 4th quarter. These will be derived from the early repayment of the fixed interestbearing bond (impacting on the financial result) and may also be derived from the current adjustment of the product and technology portfolio. Since negotiations with interested parties for research and business activities are currently being held, it is not possible at this
point in time to forecast the effects precisely. Positive and negative one-off effects with impact on the EBIT will presumably almost offset as at the end of the year with only a small positive or negative balance.
The interest payments for the fixed interest-bearing bond will impact on the financial result of the Jenoptik Group for the last time in 2007. Jenoptik announced in October 2007 that the bond will be repaid at the earliest possible date on November 15, 2007. The existing call option is at 103.938 – equating to a repayment volume of almost 156 million euros.
Following the repayment of this bond the balance sheet total will reduce in 2007 by approx. 140 to 150 million euros, giving rise to a further increase in the shareholders' equity ratio. The one-off costs arising from the bond repayment, derived primarily from the compensation for early repayment, will impact on the financial result for the current fiscal year. This will however be offset in 2008 by a marked reduction in the burden on the financial result, of 6 to 7 million euros compared with 2007. This is derived from saving the difference between the costs for the bond and the interests received and will also have a positive effect on the earnings after tax in future.
| in TEUR | Group 1.1. – 30.9. 2007 |
Continuing business divisions 1.1. – 30.9. 2006 |
Discontinued business division 1.1. – 30.9. 2006 |
Group 1.1. – 30.9.2006 |
|---|---|---|---|---|
| Sales | 374,714 | 344,307 | 517,049 | 861,356 |
| Cost of sales | 264,280 | 239,008 | 468,098 | 707,106 |
| Gross profit | 110,434 | 105,299 | 48,951 | 154,250 |
| Research and development expenses | 25,054 | 23,689 | 997 | 24,686 |
| Selling expenses | 36,766 | 34,470 | 7,654 | 42,124 |
| General administrative expenses | 30,701 | 26,095 | 18,430 | 44,525 |
| Other operating income | 15,885 | 14,361 | 6,107 | 20,468 |
| Other operating expenses | 12,646 | 11,247 | 15,286 | 26,533 |
| Result from operating activities | 21,152 | 24,159 | 12,691 | 36,850 |
| Result from investments in associated companies | – 3,124 | – 691 | 923 | 232 |
| Result from other investments | – 877 | – 2,558 | – 3,011 | – 5,569 |
| Interest income | 5,903 | 10,793 | 1,862 | 12,655 |
| Interest expenses | 20,957 | 21,200 | 6,188 | 27,388 |
| Financial result | – 19,055 | – 13,656 | – 6,414 | – 20,070 |
| Earnings before tax | 2,097 | 10,503 | 6,277 | 16,780 |
| Income taxes | 580 | 1,747 | 3,551 | 5,298 |
| Deferred taxes* | 4,002 | – 3,062 | 593 | – 2,469 |
| Earnings after tax* | – 2,485 | 11,818 | 2,133 | 13,951 |
| Minority interests' share of profit/loss | 1,788 | 1,864 | 2,133 | 3,997 |
| Net profit | – 4,273 | 9,954 | 0 | 9,954 |
| Earnings per share in euros | – 0.08 | 0.19 | 0.00 | 0.19 |
| Earnings per share (diluted) in euros | – 0.08 | 0.19 | 0.00 | 0.19 |
* taking the German tax reform into account
| in TEUR | Sept. 30, 2007 | Dec. 31, 2006 | Change |
|---|---|---|---|
| Non-current assets | 416,808 | 416,934 | – 126 |
| Intangible assets | 91,006 | 89,490 | 1,516 |
| Tangible assets | 173,297 | 170,178 | 3,119 |
| Investment properties | 33,837 | 34,553 | – 716 |
| Share in associated companies | 2,556 | 1,396 | 1,160 |
| Financial assets | 53,124 | 55,035 | – 1,911 |
| Other non-current-assets | 12,106 | 11,163 | 943 |
| Deferred tax assets | 50,882 | 55,119 | – 4,237 |
| Current assets | 468,051 | 456,725 | 11,326 |
| Inventories | 180,919 | 161,494 | 19,425 |
| Current accounts receivable and other assets | 130,356 | 137,753 | – 7,397 |
| Securities | 1,458 | 3,638 | – 2,180 |
| Cash and cash equivalents | 12,118 | 10,640 | 1,478 |
| Restricted cash | 143,200 | 143,200 | 0 |
| Total assets | 884,859 | 873,659 | 11,200 |
| in TEUR | Sept. 30, 2007 | Dec. 31, 2006 | Change |
|---|---|---|---|
| Shareholders' equity | 304,377 | 299,364 | 5,013 |
| Subscribed capital | 135,290 | 135,290 | 0 |
| Capital reserves | 186,726 | 186,726 | 0 |
| Other reserves | – 41,002 | – 45,190 | 4,188 |
| Own shares | 0 | – 47 | 47 |
| Minority interests | 23,363 | 22,585 | 778 |
| Non-current liabilities | 331,107 | 333,198 | – 2,091 |
| Pension provisions | 6,816 | 6,361 | 455 |
| Other non-current provisions | 22,883 | 22,340 | 543 |
| Non-current financial liabilities | 283,533 | 281,679 | 1,854 |
| Other non-current liabilities | 16,261 | 19,953 | – 3,692 |
| Deferred tax liabilities | 1,614 | 2,865 | – 1,251 |
| Current liabilities | 249,375 | 241,097 | 8,278 |
| Tax provisions | 1,318 | 1,218 | 100 |
| Other current provisions | 36,444 | 41,066 | – 4,622 |
| Current financial liabilities | 83,618 | 78,829 | 4,789 |
| Other current liabilities | 127,995 | 119,984 | 8,011 |
| Total shareholders' equity and liabilities | 884,859 | 873,659 | 11,200 |
| in TEUR | Subscribed capital |
Capital reserve |
|---|---|---|
| Balance as at 01.01.2006 | 135,290 | 186,727 |
| Valuation of financial instruments | ||
| Currency differences | ||
| Changes in value recorded in shareholders' equity |
||
| Earnings after tax | ||
| Sum of earnings after tax and changes in value not impacting income |
||
| Dividend payments | ||
| Change in consolidated companies | ||
| Other changes | – 2 | |
| Balance as at 30.09.2006 | 135,290 | 186,725 |
| Balance as at 01.01.2007 | 135,290 | 186,726 |
| Valuation of financial instruments | ||
| Currency differences | ||
| Changes in value recorded in shareholders' equity |
||
| Earnings after tax | ||
| Sum of earnings after tax and changes in value not impacting income |
||
| Dividend payments | ||
| Change in consolidated companies | ||
| Other changes | ||
| Balance as at 30.09.2007 | 135,290 | 186,726 |
| Reserves | |||||
|---|---|---|---|---|---|
| Minority interests | Own shares | Cumulative currency differences |
Hedging | Fair value measurement |
Cumulated profit |
| – 48 42,930 |
– 4,557 | 3,195 | – 3,623 | – 45,587 | |
| 571 | 13,669 | ||||
| – 1,102 | 3,577 | 640 | |||
| – 1,155 | 3,577 | 571 | 13,669 | 640 | |
| 9,954 | |||||
| 3,577 | 571 | 13,669 | 10,594 | ||
| – 20,573 | – 23,268 | ||||
| 2 | – 264 | ||||
| – 46 25,000 |
–980 | 3,766 | 10,046 | – 58,525 | |
| – 47 22,585 |
–1,404 | 3,958 | 9,143 | – 56,887 | |
| 202 | 9,796 | ||||
| – 1,169 | – 199 | ||||
| – 1,169 | 202 | 9,796 | – 199 | ||
| – 4,273 | |||||
| – 1,169 | 202 | 9,796 | –4,472 | ||
| 47 | – 169 | ||||
| 0 23,363 |
–2,573 | 4,160 | 18,939 | – 61,528 | |
Consolidated statement of cash flows.
| Earnings before tax Interest |
2,097 15,054 24,564 |
10,503 10,407 |
16,780 |
|---|---|---|---|
| 14,733 | |||
| Depreciation / write-up | 24,334 | 24,334 | |
| Profit on disposal of fixed assets | – 2,965 | – 188 | – 174 |
| Other non-cash expenses / income | 4,111 | 2,313 | 1,390 |
| Operating profit / loss before working capital changes | 42,861 | 47,369 | 57,063 |
| Increase / decrease in provisions | – 5,279 | 6,895 | – 6,785 |
| Increase / decrease in working capital | – 11,079 | – 33,401 | 2,154 |
| Increase / decrease in other assets and liabilities | 1,103 | – 2,065 | 2,758 |
| Cash flow from / used in operating activities before income taxes | 27,606 | 18,798 | 55,190 |
| Income taxes paid | – 479 | – 2,203 | – 8,845 |
| Cash flow from / used in operating activities | 27,127 | 16,595 | 46,345 |
| Receipts from disposal of intangible assets | 35 | 754 | 763 |
| Payments for investments in intangible assets | – 7,825 | – 11,405 | – 11,314 |
| Receipts from disposal of tangible assets | 1,279 | 24,814 | 24,915 |
| Payments for investments in tangible assets | – 16,122 | – 13,480 | – 17,123 |
| Receipts from disposal of financial assets | 5,734 | 17,240 | 19,812 |
| Payments for investments in financial assets | – 2,865 | – 7,641 | – 8,894 |
| Receipts from sale of consolidated companies | 0 | 139,061 | 1,613 |
| Payments for acquisition of consolidated companies | – 2,432 | – 12,448 | – 12,448 |
| Interest received | 5,476 | 9,099 | 11,633 |
| Cash flow from / used in investing activities | – 16,720 | 145,994 | 8,957 |
| Payments to shareholders (dividend) | 0 | – 180 | – 180 |
| Receipts from issue of bonds and loans | 20,225 | 37,739 | 55,742 |
| Repayments of bonds and loans | – 14,525 | – 32,312 | – 36,865 |
| Repayments for finance leases | – 1,435 | – 3,326 | – 3,460 |
| Change in group financing | 1,460 | – 723 | – 14,920 |
| Interest paid | – 14,500 | – 16,312 | – 19,785 |
| Cash flow from / used in financing activities | – 8,775 | – 15,114 | – 19,468 |
| Change in cash and cash equivalents | 1,632 | 147,475 | 35,834 |
| Foreign currency translation changes in cash and cash equivalents | – 154 | 86 | – 2,892 |
| Cash and cash equivalents at the beginning of the period | 153,840* | 8,846 | 123,465 |
| Cash and cash equivalents at the end of the period | 155,318* | 156,407 | 156,407 |
* including restricted cash of 143,200 TEUR.
January 1 – September 30, 2007 (previous year's figures in brackets)
| in TEUR | Laser & Optics | Sensors | Mechatronics | Other | Group |
|---|---|---|---|---|---|
| Sales | 159,867 | 115,872 | 94,525 | 4,450 | 374,714 |
| (145,866) | (108,090) | (83,723) | (6,628) | (344,307) | |
| of which Germany | 50,628 | 45,831 | 58,945 | 4,450 | 159,854 |
| (45,308) | (40,329) | (54,164) | (6,628) | (146,429) | |
| European Union | 53,254 | 27,189 | 29,207 | 0 | 109,650 |
| (46,763) | (26,070) | (26,689) | (0) | (99,522) | |
| Other Europe | 15,874 | 5,673 | 723 | 0 | 22,270 |
| (15,037) | (2,417) | (333) | (0) | (17,787) | |
| NAFTA | 22,988 | 18,206 | 2,429 | 0 | 43,623 |
| (26,079) | (17,395) | (1,032) | (0) | (44,506) | |
| South East Asia/Pacific | 5,838 | 14,100 | 2,927 | 0 | 22,865 |
| (5,002) | (15,756) | (1,367) | (0) | (22,125) | |
| Other | 11,285 | 4,873 | 294 | 0 | 16,452 |
| (7,677) | (6,123) | (138) | (0) | (13,938) | |
| Operating result (EBIT) | 15,990 | 3,478 | 4,103 | – 2,419 | 21,152 |
| (11,651) | (13,522) | (2,492) | (–3,506) | (24,159) | |
| Earnings before tax, depreciation, interest, | 28,909 | 7,526 | 6,655 | 2,184 | 45,274 |
| amortisation (EBITDA) | (23,845) | (16,673) | (5,092) | (1,055) | (46,665) |
| Result from investments in associated | – 3,124 | 0 | 0 | 0 | – 3,124 |
| companies | (– 1,644) | (0) | (0) | (953) | (– 691) |
| Research and development expenses | 14,183 | 9,981 | 2,716 | – 1,826 | 25,054 |
| (12,539) | (9,675) | (3,383) | (– 1,908) | (23,689) | |
| Tangible assets and intangible assets* | 109,304 | 28,980 | 26,461 | 133,395 | 298,140 |
| (107,989) | (22,821) | (26,971) | (136,440) | (294,221) | |
| Investments excluding company acquisitions | 13,972 | 5,970 | 2,042 | 2,304 | 24,288 |
| (18,542) | (4,392) | (1,481) | (327) | (24,742) | |
| Depreciation and amortisation | 12,919 | 4,048 | 2,552 | 4,603 | 24,122 |
| (12,194) | (3,151) | (2,600) | (4,561) | (22,506) |
*Previous year figures as at December 31, 2006.
The consolidated financial statements were prepared in accordance with the International Financial Reporting Standards (IFRS) published by the International Account ing Standards Board (IASB) and the interpreta tion of these standards by the International Financial Reporting Interpretations 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 consoli dated 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 September 30, 2007, 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 2006. 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 pub lished individually and described in detail in the Notes to the Annual Report 2006. The Annual Report can be called up on the Internet at www.jenoptik.com, on the Investors page under the heading Accounts & Reports.
The interim report was prepared in the group currency of the Euro and the figures are stated in TEUR unless specified otherwise.
In addition to JENOPTIK AG, the consolidated financial statements include 18 (prev. year 20) domestic and 9 (prev. year 8) foreign companies fully consolidated. In accordance with IAS 31 "Interests in Joint Ventures" 1 (prev. year 1) joint venture company is included in the quarterly report proportionally at 50 percent and, under IAS 28 "Interests in Associates" 3 (prev. year 1) domestic associated companies are shown at equity.
In the first nine months of 2007 three subsidiaries were included in consolidation for the first time, these had not been included before due to their minor import ance, as well as four mergers of fully consolidated subsidiaries.
In the second quarter 2007 the remaining shares in SINAR AG and Detroit Precision Hommel Inc. were acquired, the latter ws merged with ETAMICUS in the third quarter 2007.
| Tangible assets | in TEUR | |
|---|---|---|
| 30.9.2007 | 31.12.2006 | |
| Land, buildings | 99,292 | 100,433 |
| Technical equipment and machines | 42,830 | 41,500 |
| Other equipment, factory and office | ||
| equipment | 24,557 | 23,297 |
| On-account payments and construction in | ||
| progress | 6,618 | 4,948 |
| 173,297 | 170,178 | |
| Inventories | in TEUR | |
| 30.9.2007 | 31.12.2006 | |
| Raw materials and supplies | 56,256 | 46,669 |
| Work in progress | 100,230 | 91,323 |
| Finished goods and merchandise | 19,153 | 17,662 |
| Property held for disposal | 43 | 43 |
| On-account payments | 5,237 | 5,797 |
| 180,919 | 161,494 |
| Accounts receivable and other assets | in TEUR | |
|---|---|---|
| 30.9.2007 | 31.12.2006 | |
| Trade accounts receivable | 89,018 | 92,248 |
| Receivables from construction contracts | 12,690 | 11,530 |
| Receivables from non-consolidated | ||
| affiliated companies | 7,619 | 8,305 |
| Receivables from participating interests | 4,736 | 11,732 |
| Other assets | 16,293 | 13,938 |
| 130,356 | 137,753 |
| Non-current financial liabilities | in TEUR | |
|---|---|---|
| 30.9.2007 | 31.12.2006 | |
| Long-term bonds | 206,698 | 204,772 |
| Non-current bank liabilities | 54,328 | 53,177 |
| Non-current liabilities from finance leases | 22,507 | 23,730 |
| 283,533 | 281,679 |
| Current financial liabilities | in TEUR | |
|---|---|---|
| 30.9.2007 | 31.12.2006 | |
| Bonds | 2,000 | 11,400 |
| Bank liabilities | 79,784 | 65,768 |
| Liabilities from bills of exchange | 0 | 0 |
| Liabilities from finance leases | 1,834 | 1,661 |
| 83,618 | 78,829 |
| Other current liabilities | in TEUR | |
|---|---|---|
| 30.9.2007 | 31.12.2006 | |
| Liabilities from on-account payments | ||
| received | 26,741 | 26,010 |
| Trade accounts payable | 40,918 | 40,433 |
| Liabilities from construction contracts | 1,014 | 483 |
| Liabilities to affiliated companies | 4,526 | 7,076 |
| Liabilities to participating interests | 4,274 | 3,262 |
| Other current liabilities | 50,522 | 42,720 |
| 127,995 | 119,984 |
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 proceedings. 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 2006. At present, it is only one procedure.
At the beginning of October all shares in PVA TePla AG were sold.
To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, 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 expected development of the Group for the remaining months of the fiscal year.
Jena, November 2007
Dr. Michael Mertin Frank Einhellinger of the Executive Board
Chairman Executive Board Member
November 13, 2007 Interim Report on the third quarter 2007 of the Jenoptik Group
March 28, 2008 Annual Report 2007 of the Jenoptik Group
May 8, 2008 Interim Report on the first quarter 2008 of the Jenoptik Group
June 2008 General Meeting 2008 of JENOPTIK AG
Investor Relations Sabine Barnekow Phone + 49 (0) 3641 65-2156 Fax + 49 (0) 3641 65-2484 E-mail [email protected]
Katrin Lauterbach Phone + 49 (0) 3641 65-2255 Fax + 49 (0) 3641 65-2484 E-mail [email protected]
Additional information These and other publications of Jenoptik are available at
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