INDUS Holding AG

Earnings Release • Apr 21, 2015

News Details

Corporate | 21 April 2015 11:00

INDUS reaches targets and aims for further growth

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

2015-04-21 / 11:00

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INDUS reaches targets and aims for further growth

– 2014 sales revenues up 5.8 %; 2014 EBIT up 7.3%

– Successful start to 2015

Bergisch Gladbach, 21 April 2015 – Although the German economy showed a rather moderate trend last year, the INDUS Group over-achieved its targets for 2014. This was emphasised by CEO Jürgen Abromeit at today’s annual accounts press conference in Düsseldorf: “We are pleased that all our segments are moving forward. This shows that our companies are on the right track.”

2014 revenues and earnings exceed expectations

The earnings figures showed an extremely positive trend and exceeded the company’s expectations. Sales revenues reached a record EUR 1,255.7 million (previous year: EUR 1,186.8 million), which represents an increase by 5.8%. Over the year, the Group benefited from a consistently stable development, with the general economic weakness, especially in the third quarter, primarily offset by the very strong fourth quarter.

The Group’s continued operations generated earnings before interest and taxes (EBIT) of EUR 127.2 million (previous year: EUR 118.6 million). The EBIT margin improved to 10.1% (previous year: 10.0%). In spite of some profit-reducing effects, e.g. from the initial consolidation of new investments and increased interest expenses from minority interests resulting from the acquisitions, the INDUS shareholders’ earnings after taxes amounted to EUR 63.3 million (previous year: EUR 64.0 million). The discontinuation of one investment led to a result from discontinued operations of EUR -4.0 million (previous year: EUR -3.9 million), which reduced earnings after taxes accordingly. The Board of Management and the Supervisory Board will propose a EUR 0.10 increase in the dividend to EUR 1.20 to the Annual General Meeting on 3 June.

Continued strong investment activity

INDUS made a total of five transactions in 2014, including selective additions to the Medical Engineering/Life Science segment and the Engineering segment in the form of ROLKO and MBN. There were another three strategic additions at the level of the subsidiaries. Including fixed asset investments, the Group thus invested a total of EUR 97 million in 2014. The optimisation of the portfolio structure also included the discontinuation of the activities of one smaller company, which had incurred losses for some time in spite of various restructuring efforts.

Group-wide EBIT margin of 10.1%

The INDUS Group meanwhile comprises 42 medium-sized enterprises operating in five segments. In terms of the EBIT margin, the results in the Construction/Infrastructure segment and the Medical Engineering/Life Science segment reached a very good level and clearly exceeded the Group-wide EBIT margin target of 10%, at 14.7% and 16.4%, respectively. As had been expected, the margin in the Automotive Technology segment declined moderately to 6.9%, which was still clearly above the industry average of 6.5%. At 11.9%, the EBIT margin in the Engineering segment also reached a very good level. The Metals Technology segment again improved on the previous year and posted a margin of 9.2%.

Fit for the future thanks to stable balance sheet structures

The balance sheet ratios of the INDUS Group showed a stable trend in 2014. Net debt amounted to EUR 345.8 million, while equity increased by EUR 34.6 million to EUR 549.9 million. At 42.0%, the equity ratio reached the desired level of >40% (previous year: 43.6%) in spite of the continued growth. The net-debt-to-EBITDA ratio stayed at 2.0 years (previous year: 1.9). INDUS thus remains within the defined target range of a debt repayment period of 2 to 2.5 years.

The Cash flow from operating activity (proceeds) declined moderately in 2014, primarily due to the reporting-date-related reduction in advance payments received and higher income tax payments. It amounted to EUR 87.0 million (previous year: EUR 97.5 million). Cash and cash equivalents of EUR 116.5 million (previous year: EUR 115.9 million) and unused credit lines of approx. EUR 100 million will support the planned fixed asset investments of roughly EUR 60 million in the existing portfolio and the growth strategy also for 2015 and beyond.

Further acquisitions

INDUS intends to make further acquisitions in the defined target sectors, i.e. automation technology and medical engineering/life science, in 2015. “Our COMPASS 2020 strategy programme was launched in 2012 with the aim of increasing the performance of our portfolio companies as a whole and of growing notably as a group. We will therefore continue to spend considerable amounts on investments and growth. The profitability of our most profitable segment provides an indication why we have defined this segment as one of our target markets for acquisitions,” said CEO Jürgen Abromeit.

Positive outlook on 2015

Many economic experts project a stronger recovery for 2015. Based on the expectation of the INDUS subsidiaries and the results of the first months of the year, this forecast is confirmed also in the INDUS Group. The overall conditions are positive; the persistently weak euro supports business with Asia and America. The prices of oil and gas are low. The collective agreements signed to date are fairly high but were achieved swiftly and without lengthy strikes. Moreover, the stabilisation process in Europe is gradually showing effect.

In 2015, INDUS will continue to expand its portfolio organically and through the selective acquisition of promising hidden champions. At the beginning of the year, INDUS already supported OFA Bamberg, one of its investee companies, in the acquisition of an entire plant in Glauchau. INDUS wants to outgrow the market, which, according to current figures, would be equivalent to Group sales revenues of EUR 1.3 billion and EBIT of EUR 125 million to EUR 130 million.

The full Annual Report of INDUS Holding AG is available for downloading at www.indus.de .

Contact:

Regina Wolter

Corporate Communications & Investor Relations

Phone +49 2204 4000 70

E-Mail wolter@indus.de

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

End of News	DGAP News-Service

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