Quarterly Report • May 2, 2018
Quarterly Report
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| in € m* | OI 2016 | QI 2017 | QI 2018 | Changes to previous year |
|---|---|---|---|---|
| Sales revenues | 22.4 | 36.3 | 44.9 | 24 % |
| Incoming orders | 23.5 | 60.4 | 46.1 | -24 % |
| Gross results | 11.0 | 18.0 | 22.7 | 26 % |
| Gross profit margin | 49.1 % | 49.6 % | 50.6 % | 1.0 Pp. |
| Full costs for research and | ||||
| development | 3.4 | 4.0 | 4.5 | 13 % |
| Research and development ratio | 15.2 % | 11.0 % | 10.0 % | -1.0 Pp. |
| EBITDA | 4.0 | 10.0 | 14.0 | 40 % |
| EBIT | 2.4 | 8.0 | 10.8 | 35 % |
| EBT | 2.2 | 7.9 | 10.8 | 37 % |
| Net income | 1.6 | 5.7 | 8.1 | 42 % |
| Weighted average number of | ||||
| shares | 3,241,363 | 3,226,407 3,209,620 | -1 % | |
| Result per share (€) | 0.51 | 1.78 | 2.52 | 42 % |
| Cash flow from operating | ||||
| activities | 0.8 | 4.2 | -1.1 | -126 % |
| Cash flow from investing | ||||
| activities | -2 | -2.5 | -3.1 | 24 % |
| Free Cash flow | -1.2 | 1.7 | -4.2 | -347 % |
| in € m* | 12/31/2016 12/31/2017 03/31/2018 | Changes to previous year |
||
|---|---|---|---|---|
| Total assets | 90.4 | 117.7 | 124.8 | 6 % |
| Long-term assets | 43.9 | 45.9 | 46.4 | 1 % |
| Equity | 50 | 65.6 | 73.7 | 12 % |
| Liabilities | 40.4 | 52.1 | 51.1 | -2 % |
| Equity ratio | 55.3 % | 55.7 % | 59.1 % | 3.4 Pp. |
| Net cash | 8.8 | 25.0 | 20.0 | -20 % |
| Working Capital | 18.6 | 19.8 | 32.3 | 63 % |
| Number of employees for the fiscal year (full time equivalents) |
457 | 504 | 552 | 10 % |
| Share price (XETRA) in € | 60.37 | 195.05 | 173.00 | -11 % |
| Number of shares in circulation | 3,215,247 | 3,211,136 | 3,211,136 | 0 % |
| Market capitalization | 194.1 | 626.3 | 555.5 | -11 % |
| *unless otherwise stated |
¼ Incoming orders: Euro 46.1 million (previous year: Euro 60.4 million, -24 %)
¼ Sales: Euro 44.9 million (previous year: Euro 36.3 million, +24 %)
¼ EBIT: Euro 10.8 million (previous year: Euro 8.0 million, +35 %)
¼ EBT: Euro 10.8 million (previous year: Euro 7.9 million, +37 %)
¼ Operating cash flow: Euro -1.1 million (previous year: Euro 4.2 million, -126 %)
¼ Free cash flow: Euro -4.2 million (previous year: Euro 1.7 million, -347 %)
In an as expected more quiet market environment than last year, Basler group had a very positive start into the first three months of the new fiscal year 2018. A good level of incoming orders and strong sales led to a further expansion of the market position as well as to very high profitability.
As foreseen, last year's extraordinarily strong momentum of the capital goods markets for the electronics industry was not repeated. Moreover, the successfully implemented measures for a capacity expansion led to a high delivery capacity and subsequently to a balanced ratio between incoming orders and sales. In total, incoming orders were on a good level, however, clearly below the previous year's.
For the first two months of 2018, the VDMA (Verband Deutscher Maschinen- und Anlagenbau, German Engineering Federation) reported a sales growth amounting to 6 % for the German manufacturers of image processing components. According to the VDMA (Verband Deutscher Maschinen- und Anlagenbau, German Engineering Federation) incoming orders in the industry reduced by 5 % in the same period.
In comparison to the market, in the first three months of 2018, the Basler group's sales increased by 24 % and thus again gained market shares
In the first quarter, Basler launched a camera series onto the market which was especially developed for the medical & life sciences sector. The so-called Basler MED ace series offers high performance CMOS sensor technology providing up to 164 pictures per second and up to 20 megapixel resolution. Unique features address special demands in the capital goods markets for medical and life sciences. Additionally, Basler's new DIN EN ISO 13485:2016 certification offers customers a conformity with the internally accepted quality standard of the medical industry.
-24 % Order entry to previous year
Keyfact
+24 % Sales revenues to previous year
Keyfact
For the last five quarters (in € million)
* Mycable included since June 2017 ** Mycable included since January 2018
REVENUE SPLIT BY REGIONS
Despite idle costs due to expanded capacities and a non-optimal utilization rate, the gross margin developed slightly positively. It increased to 50.6 % (previous year: 49.6 %). The reason for this was in particular the product mix as well as a lower share in total sales of price sensitive major projects. Compared to the previous year, also in absolute terms the gross result increased by Euro 4.7 million to Euro 22.7 million (previous year: Euro 18.0 million).
The successful ace camera series portfolio was expanded by eight new models for industrial applications. The new models with low to medium solutions are based on Sony Pregius CMOS sensors and substitute older camera models with discontinued CCD sensors.
On the embedded world trade fair in Nuremberg, Basler presented a unique new product concept: the dart camera modules with BCON for MIPI interfaces. These camera modules can be combined with selected Qualcomm® embedded processors and thus offer the basis for small, high performance and low price image processing systems. Furthermore, Basler concluded a sales cooperation agreement for embedded solutions with Arrow Electronics, in order to optimally address emerging application fields for embedded vision.
So far, as expected, the fiscal year 2018 has developed positively along the forecast communicated to the capital market. The growth targets were achieved. In the first three months, profitability was higher than expected due to a positive development of the gross margin and an employee recruiting program slower than planned. The management is very positive about the coming months of the fiscal year and confirms the current forecast according to which the group's sales 2018 will be within a corridor of Euro 145 – 160 million at a pre-tax return margin of 13 – 15 %. Based on positive results and positive outlook the management will continue to go ahead with the recruiting program in the coming months.
Compared to the previous year, sales increased by 24 % to Euro 44.9 million (previous year: Euro 36.3 million). Due to the reasons mentioned above, incoming orders decreased by 24 % to Euro 46.1 million. Considering the special effects of the past years, this is a very high level.
At the end of the first quarter 2018, two capitalized developments were found to be no longer valid. They were written-off in an amount of Euro 400 thousand.
Equity amounted to Euro 73.7 million (Dec. 31, 2017: Euro 65.6 million), thus the equity ratio was 59.1 % on March 31, 2018, compared to 55.7 % on December 31, 2017.
The operating cash flow amounted to Euro -1.1 million (previous year: Euro 4.2 million). The main reason for this relatively weak operating cash flow is the increase in receivables. The significant increase in sales at the beginning of the year led to an increase in receivables by approximately Euro 11.5 million. The cash flow from investing activities nearly increased in line with sales by 24 % to Euro -3.1 million (previous year: Euro -2.5 million).
In total, the free cash flow achieved a level of Euro -4.2 million (previous year: Euro 1.7 million).
Thus, liquid assets decreased to Euro 31.0 million on the reporting period closing date. The net cash position amounted to Euro 20.0 million on the reporting date (Dec. 31, 2017: Euro 25.0 million).
For the last five Quarters (in € million)
Development of Gross Profit and Margin
Due to the very positive gross result as well as an unintended delay in personnel increase and the subsequently lower than planned personnel costs, the pre-tax result amounted to Euro 10.8 million (previous year: Euro 7.9 million, +37 %). The pre-tax return rate of nearly 24 % continues to be far above the long-term target for the EBT-margin of 12 %.
For the last five quarters (in € million)
The
period surplus amounted to Euro 8.1 million exceeding the previous year's value of Euro 5.7 million by 42 %. Thus, the result per share (diluted/undiluted) amounted to Euro 2.52 (previous year: Euro 1.78).
Keyfact
€ 195.00
Opening price 01/02/2018
Keyfact
€ 173.00 Closing price 03/31/2018
Keyfact
BASLER (Xetra) vs. TecDax 2017/01/01-2018/03/31
The share capital of Basler AG remained unchanged at Euro 3.5 million at the end of the quarter on March 31, 2018 divided into 3.5 million of no-par-value bearer shares.
Due to the acquisition of shares by Oppenheimer Funds, USA, of 5.475 % in the course of the first quarter of 2018, the shareholder structure of the company chan-
ged as follows:
Treasury Shares Norbert Basler Holding GmbH Dr. Dietmar Ley (CEO) Oppenheimer Funds Free Float
No events of any significance occurred after the end of the interim reporting period.
On the reporting date March 31, 2018, the company employed 552 (previous year: 480) employees (full-time equivalents). The increase is mainly due to the future growth plan of the company. Currently, this increase is slower than planned. In particular in the R&D department it is difficult to find employees with appropriate qualifications.
There are no significant changes compared to the information provided in the consolidated financial statements as of December 31, 2017.
Regarding significant opportunities and risks of the probable development of the company, we refer to the opportunities and risks described in the group management report as of December 31, 2017. Meanwhile, no significant changes occurred.
The interim statement of Basler was prepared according to the International Financial Reporting Standards (IFRS) as applicable within the European Union (EU), the interpretations of the International Financial Reporting Interpretations Committee (IFRIC), as well as the Standing Interpretations Committee (SIC). The interim statement present was prepared according to the provision of the IAS 34.
The interim statement as of December 31, 2017, has not been audited. Basically, the same accounting and valuation methods are applied as in the consolidated financial statements as of December 31, 2017. For significant changes of the consolidated balance sheet, the consolidated income statement as well as the consolidated cash flow statement we refer to the report on the profit, finance and asset situation.
The general meeting of June 04, 2014, authorized the company to buy back own shares amounting to a total of up to 10 % of the share capital of the corporation existing at the time the resolution was adopted. The authorization is valid until June 03, 2019. The shares can be used for all purposes provided for in the authorization of the general meeting of June 04, 2014. When acquiring own shares via the stock exchange, the price paid per share (without considering incidental purchase costs) must not differ by more than 10 % from the share price of the company for shares with same conditions as determined on the trading day by the opening auction for XETRA trade on the Frankfurt/Main stock exchange.
The current declaration of the management board and the supervisory board pursuant to § 161 of the German Stock Corporation Act (AktG) regarding the German Corporate Governance Code was made continually available to the shareholders on the company's website at www.baslerweb.com/Investoren/Corporate-Governance. On April 17, 2018, an intra-annual supplement was made to item 5.4.1 also available on mentioned above website.
We affirm to the best of our knowledge that the interim consolidated financial statements, in accordance with the accounting principles applicable to interim reporting, provide a true and fair view of the group's asset, financial, and earnings situation and that the group's interim management report represents a true and fair picture of the course of business, including the operating result, and the group's financial situation as well as describing the essential opportunities and risks concomitant with the expected development of the group during the remainder of the fiscal year.
The management board
Dr. Dietmar Ley John P. Jennings Arndt Bake Hardy Mehl CEO CCO CMO CFO/COO
| 12/31/2017 Number of shares |
03/31/2018 Number of shares |
|
|---|---|---|
| Supervisory Board | ||
| Norbert Basler | - | - |
| Prof. Dr. Eckart Kottkamp | - | - |
| Horst W. Garbrecht | - | - |
| Prof. Dr. Mirja Steinkamp | - | - |
| Management Board | ||
| Dr. Dietmar Ley | 125,794 | 125,794 |
| John P. Jennings | 5,500 | 4,500 |
| Arndt Bake | 700 | 700 |
| Hardy Mehl | 800 | 1,000 |
On May 7, 2018, the annual general meeting of Basler AG will take place in Hamburg. The agenda for the general meeting was published in the Federal Gazette on March 28, 2018 and is since then accessible on Basler AG's website together with all other documents of the general meeting. One of the items on the agenda is the distribution of the dividend. For fiscal year 2017, the supervisory board and the management board will propose to the general meeting to distribute a dividend amounting to Euro 2.02 per share. For 3.2 million dividend bearing shares the sum to be distributed amounts to Euro 6.5 million (previous year: Euro 2.4 million). Thus, the distribution ration for fiscal year 2017 corresponds to the company's dividend policy to distribute 30 % of the net profit.
Pursuant to Section 1, no. 1, sent. 1 of the One-Third-Participation Act (Drittelbeteiligungsgesetz), employees of a stock corporation have a right of participation in the supervisory board if the company generally employs more than 500 employees. The company has exceeded the threshold at the beginning of the year. On February 28, 2018, Mrs. Dorothea Brandes and Mr. Dr. Marco Grimm were elected by the employees as employee representatives to the supervisory board. The term of office of both representatives starts with the day of the general meeting on May 7, 2018.
Because of this innovation a complete new election of ordinary members of the supervisory board is required at this year's general meeting.
The management board and the supervisory board of Basler AG decided on April 21, 2016, to buy back additional own shares. In February 2017, the company ultimately bought back non-par bearer shares on the capital market and currently holds 8.3 % (288,864 pieces) own shares.
Group´s annual balance sheet according to IFRS for the fiscal year from January 1, 2018 to March 31, 2018
| in € k | 01/01/ - 03/31/2017 |
01/01/ - 03/31/2018 |
|---|---|---|
| Sales revenues | 36,316 | 44,932 |
| Currency earnings | -95 | -178 |
| Cost of sales | -18,285 | -22,074 |
| - of which depreciations on capitalized | ||
| developments | -1,299 | -1,762 |
| Gross profit on sales | 17,936 | 22,680 |
| Other operating income | 103 | 86 |
| Sales and marketing costs | -4,699 | -5,331 |
| General administration costs | -3,189 | -3,337 |
| Research and development | -2,079 | -2,983 |
| Other expenses | -30 | -318 |
| Operating result | 8,042 | 10,797 |
| Financial income | 92 | 48 |
| Financial expenses | -249 | -90 |
| Financial result | -157 | -42 |
| Earnings before tax | 7,885 | 10,755 |
| Income tax | -2,148 | -2,660 |
| Group´s period surplus | 5,737 | 8,095 |
| of which are allocated to | ||
| shareholders of the parent company | 5,737 | 8,095 |
| non-controlling shareholders | 0 | 0 |
| Average number of shares | 3,226,407 | 3,209,620 |
| Earnings per share diluted / undiluted (€) | 1.78 | 2.52 |
Group´s annual balance sheet according to IFRS for the fiscal year from January 1, 2018 to March 31, 2018
| in € k | 01/01/ - 03/31/2017 |
01/01/ - 03/31/2018 |
|---|---|---|
| Group's period surplus | 5,737 | 8,095 |
| Result from differences due to currency | ||
| conversion, directly recorded in equity Surplus/ Net loss from cash flow hedges |
-7 0 |
-72 0 |
| Adjustment Finance Lease w/o income effect | 0 | 0 |
| Total result, through profit or loss | -7 | -72 |
| Total result | 5,730 | 8,023 |
| of which are allocated to | ||
| shareholders of the parent company | 5,730 | 8,023 |
| non-controlling shareholders | 0 | 0 |
Group´s annual balance sheet according to IFRS for the fiscal year from January 1, 2018 to March 31, 2018
| in € k | 01/01/ - 03/31/2017 |
01/01/ - 03/31/2018 |
|---|---|---|
| Operating activities | ||
| Group's period surplus | 5,737 | 8,095 |
| Increase (+) / decrease (-) in deferred taxes | 1,182 | -99 |
| Payout/ incoming payments for interest | 285 | 102 |
| Depreciation of fixed assets | 1,998 | 2,711 |
| Change in capital resources without affecting payment | -7 | -72 |
| Increase (+) / decrease (-) in accruals | 1,443 | 1,163 |
| Profit (-) / loss (+) from asset disposals | 0 | 0 |
| Increase (-) / decrease (+) in reserves | -1,439 | -229 |
| Increase (+) / decrease (-) in advances from demand | 264 | -1,467 |
| Increase (-) / decrease (+) in accounts receivable | -7,227 | -11,527 |
| Increase (-) / decrease (+) in other assets | -670 | 181 |
| Increase (+) / decrease (-) in accounts payable | 2,382 | 710 |
| Increase (+) / decrease (-) in other liabilities | 220 | -649 |
| Net cash provided by operating activities | 4,168 | -1,081 |
| Investing activities | ||
| Payout for investments in fixed assets | -2,489 | -3,105 |
| Incoming payments for asset disposals | 1 | 19 |
| Expenses for acquisitions less cash acquired | 0 | 0 |
| Net cash provided by investing activities | -2,488 | -3,086 |
| Financing activities | ||
| Payout for amortisation of bank loans | -122 | -156 |
| Incoming / Payout for amortisation of finance lease | -394 | -556 |
| Incoming payment for borrowings from banks | 0 | 0 |
| Interest payout | -285 | -102 |
| Payout for own shares | -657 | 0 |
| Dividends paid | 0 | 0 |
| Net cash provided by financing activities | -1,458 | -814 |
| Change in liquid funds | 222 | -4,981 |
| Funds at the beginning of the fiscal period | 19,437 | 36,025 |
| Funds at the end of the fiscal period | 19,659 | 31,044 |
| Composition of liquid funds at the end of the fiscal period | ||
| Cash in bank and cash in hand | 19,659 | 31,044 |
| Payout for taxes | 217 | 1,052 |
I. Subscribed capital 3,211 3,211
III. Retained earnings including group's earnings 59,028 67,123
I. Long-term liabilities
III. Short-term other liabilities
Group´s annual balance sheet according to IFRS for the fiscal year from January 1, 2018 to March 31, 2018
| in € k | 12/31/2017 03/31/2018 | |
|---|---|---|
| Assets | ||
| A. Long-term assets | ||
| I. Intangible assets | 21,476 | 21,031 |
| II. Fixed assets | 8,784 | 9,730 |
| III. Buildings and land in finance lease | 12,481 | 12,354 |
| IV. Goodwill | 3,139 | 3,139 |
| V. Other financial assets | 5 | 5 |
| VI. Deferred tax assets | 39 | 101 |
| 45,924 | 46,360 | |
| B. Short-term assets | ||
| I. Inventories | 20,829 | 21,058 |
| II. Receivables from deliveries and services and from | ||
| production orders | 11,066 | 22,592 |
| III. Other short-term financial assets | 1,666 | 2,080 |
| IV. Other short-term assets | 1,040 | 1,009 |
| V. Claim for tax refunds | 1,170 | 608 |
| VI. Cash in bank and cash in hand | 36,025 | 31,044 |
| 71,796 | 78,391 | |
| 117,720 | 124,751 |
Group´s annual balance sheet according to IFRS for the fiscal year from January 1, 2018 to March 31, 2018
| Other components of equity | |||||||
|---|---|---|---|---|---|---|---|
| Sub scribed |
Capital | Retained earnings incl. group's |
Differen ces due to currency |
Reserves for cash flow |
Sum of other components of |
||
| in € k | capital | reserve | earnings | conversion | hedges | equity | Total |
| Shareholders´ equity as of 01/01/2017 |
3,215 | 2,443 | 43,648 | 710 | 0 | 710 50,016 | |
| Total result | 5,737 | -7 | -7 | 5,730 | |||
| Share salesback | 0 | 0 | |||||
| Share buyback | -10 | -647 | -657 | ||||
| Shareholders´ equity as of |
|||||||
| 03/31/2017 | 3,205 | 2,443 | 48,738 | 703 | 0 | 703 55,089 | |
| Total result | 676 | 11,837 | -431 | -431 12,082 | |||
| Share salesback | 831 | 831 | |||||
| Share buyback | 6 | -7 | -1 | ||||
| Dividend outpayment* |
-2,371 | -2,371 | |||||
| Shareholders´ equity as of 12/31/2017 |
3,211 | 3,119 | 59,028 | 272 | 0 | 272 65,630 | |
| Total result | 8,095 | -72 | -72 | 8,023 | |||
| Share salesback | 0 | ||||||
| Share buyback | 0 | ||||||
| Shareholders´ equity as of 03/31/2018 |
3,211 | 3,119 | 67,123 | 200 | 0 | 200 73,653 |
* 0,74 € per share
| Date | Event | Venue |
|---|---|---|
| 05/07/2018 | Shareholders' meeting 2018 | Hamburg, Germany |
| 08/13/2018 | Publication 6-month report 2018 | Ahrensburg, Germany |
| 11/05/2018 | Publication 9-month report 2018 | Ahrensburg, Germany |
| Deutsches Eigenkapitalforum 2018 | Frankfurt am Main, | |
| 11/26 - 28/2018 | (Germany equity forum) | Germany |
| Deutsches Eigenkapitalforum 2018 |
|---|
| (Germany equity forum) |
| Frankfurt am Main, Germany |
|---|
BASLER AG An der Strusbek 60-62 22926 Ahrensburg Germany Tel. +49 4102 463 0 Fax +49 4102 463 109 [email protected]
BASLER, INC. 855 Springdale Drive, Suite 203 Exton, PA 19341 USA Tel. +1 610 280 0171 Fax +1 610 280 7608 [email protected]
35 Marsiling Industrial Estate Road 3 #05-06 Singapore 739257 Tel. +65 6367 1355 Fax +65 6367 1255 [email protected]
TAIWAN INC. No. 21, Sianjheng 8th St. Jhubei City, Hsinchu County 30268 Taiwan/R.O.C. Tel. +886 3 558 3955 Fax +886 3 558 3956 [email protected]
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