Quarterly Report • May 11, 2016
Quarterly Report
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JANUARY TO MARCH 2016
| in million euros | January - March 2016 | January - March 2015 | Change in % |
|---|---|---|---|
| Revenue | 158.2 | 145.8 | 8.5 |
| Optics & Life Science | 52.2 | 51.3 | 1.7 |
| Mobility | 52.1 | 51.7 | 0.8 |
| Defense & Civil Systems | 54.4 | 42.7 | 27.4 |
| Other¹ | -0.6 | 0.0 | |
| EBITDA | 16.7 | 15.8 | 5.2 |
| Optics & Life Science | 7.2 | 7.3 | -1.7 |
| Mobility | 4.4 | 4.2 | 3.9 |
| Defense & Civil Systems | 4.3 | 2.0 | 112.3 |
| Other¹ | 0.8 | 2.3 | |
| EBIT | 9.8 | 8.7 | 11.7 |
| Optics & Life Science | 5.2 | 5.2 | -0.9 |
| Mobility | 2.3 | 2.1 | 7.9 |
| Defense & Civil Systems | 3.2 | 0.8 | 300.2 |
| Other¹ | -0.9 | 0.6 | |
| EBIT margin | 6.2% | 6.0% | |
| Optics & Life Science | 10.0% | 10.2% | |
| Mobility | 4.4% | 4.1% | |
| Defense & Civil Systems | 5.8% | 1.9% | |
| Earnings before tax | 7.7 | 9.8 | -22.3 |
| Earnings after tax | 6.5 | 8.3 | -21.6 |
| Earnings per share in euros | 0.11 | 0.14 | |
| Free cash flow | 12.0 | -3.3 | |
| Order intake | 158.4 | 166.8 | -5.0 |
| Optics & Life Science | 59.1 | 49.1 | 20.3 |
| Mobility | 64.8 | 68.6 | -5.5 |
| Defense & Civil Systems | 37.6 | 50.7 | -25.8 |
| Other¹ | -3.0 | -1.6 | |
| March 31, 2016 | December 31, 2015 | March 31, 2015 | |
|---|---|---|---|
| Order backlog (in million euros) | 368.5 | 373.4 | 447.4 |
| Optics & Life Science | 75.7 | 73.7 | 84.0 |
| Mobility | 104.6 | 92.7 | 114.0 |
| Defense & Civil Systems | 192.7 | 209.7 | 253.5 |
| Other¹ | -4.4 | -2.6 | -4.1 |
| Employees (incl. trainees) | 3,492 | 3,512 | 3,570 |
| Optics & Life Science | 1,132 | 1,144 | 1,174 |
| Mobility | 1,200 | 1,207 | 1,217 |
| Defense & Civil Systems | 879 | 881 | 900 |
| Other¹ | 281 | 280 | 279 |
¹ Other includes holding, shared service center, real estate and consolidation.
Please note that there may be rounding differences as compared to the mathematically exact amounts (monetary units, percentages, etc.) in this report.
See Forecast Report – from page 12.
The Jenoptik Group operates in three segments
Jenoptik is a globally operating integrated photonics group and a supplier of high-quality and innovative capital goods. The Group is thus primarily a partner for industrial companies. In the Mobility and Defense & Civil Systems segments, we are also a supplier to the public sector, in part indirectly through system integrators.
Our product range comprises OEM and standard components, modules and subsystems, and extends to cover complex systems and production lines. It also includes fullservice solutions and operator models, comprising the integration of systems and facilities and their correspond ing networks as well as project management, data processing and after-sales.
Our key markets primarily include the semiconductor equip ment industry, medical technology, automotive, machine construction, transport, aviation and security and defense technology.
Since January 1, 2016 and the launch of our new organizational structure, we have been aligning our business more closely with market requirements and have positioned even closer to the customer. Business operations have been reorganized and thus better targeted at growth markets such as the medical technology, automotive and semiconductor equipment sectors.
To promote sustainable and profitable growth, we con tinued to make further headway on the Jenoptik Group's core strategic themes of internationalization, innovation and operational excellence. We are establishing ourselves as a strategic systems partner for international customers and together with them helping to shape forward-looking solutions.
We are working to achieve our growth strategy by
We want to enhance our organic growth with acquisitions.
For more information on the strategic trajectory of the Jenoptik Group, we refer to the 2015 Annual Report published in March 2016 and the details given in the "Targets and Strategies" section from page 65 on.
There was considerable uncertainty on the global capital markets in the first three months of 2016. Alongside con tinuing geopolitical conflicts – the refugee crisis in Europe, terrorist attacks on European soil and the Brexit debate – disappointing figures from German industry, sluggish demand in the euro zone and an economic slowdown in emerging countries were further grounds for unrest on the stock markets. To help boost growth in the euro zone, the ECB reduced interest rates to zero for the first time in March while increasing the scale of its bond purchase program to 80 billion euros a month.
Germany's benchmark index, the Dax, opened the year with a record 10,283 points on January 4, 2016. At the end of trading on March 31, 2016, it was at 9,965 points, thus closing a volatile first quarter with a loss of 3.1 percent. In the reporting period, the value of the TecDax fell 9.4 percent from its opening figure of 1,794 points, closing at 1,626 points on March 31, 2016.
Up to the end of March, the Jenoptik share also saw highly volatile performance. From the start of the year and the highest Xetra closing price of 14.59 euros on January 4, 2016, the share price fell to its lowest level of 11.14 euros on February 11, 2016, before climbing back to 14.05 euros on March 31, 2016. The Jenoptik share closed trading at 13.66 euros on April 29, 2016, representing a drop of around 6.4 percent in the current year.
In the first quarter of 2016, Oddo Asset Management reduced its stake in Jenoptik from 3.02 percent to 2.97 per cent. Templeton Investment reduced its JENOPTIK AG share holdings from 5.09 percent to 4.69 percent. On the
TecDax, Jenoptik was in 19th place (prior year 18th) in terms of free float market capitalization (89.0 percent) as of March 31, 2016, and remained 22nd in stock exchange turnover.
In the first three months of 2016, 16 research institutes and banks regularly reported on Jenoptik. At the time this report was prepared, nine analysts recommended buying the share, while seven advised investors to hold their shares. The average price target issued by all analysts at this time was 14.74 euros.
| JENOPTIK KEY SHARE FIGURES | |||
|---|---|---|---|
| ---------------------------- | -- | -- | -- |
| EARNINGS PER SHARE | ||
|---|---|---|
| 1/1/ to 31/3/2016 |
1/1/ to 31/3/2015 |
|
| Net profit in thousand euros | 6,479 | 8,084 |
| Weighted average number of outstanding shares |
57,238,115 | 57,238,115 |
| Earnings per share in euros | 0.11 | 0.14 |
Earnings per share are the net profit divided by the weighted average number of shares outstanding.
| 1/1/ to 31/3/2016 |
1/1/ to 31/3/2015 |
|
|---|---|---|
| Closing share price (Xetra) on 31/03/ in euros |
14.05 | 12.60 |
| Highest share price (Xetra) Jan. – March in euros |
14.59 | 13.43 |
| Lowest share price (Xetra) Jan. – March in euros |
11.14 | 10.22 |
| Market capitalization (Xetra) on 31/03/ in million euros |
804.2 | 721.2 |
| Average daily trading volume in shares¹ | 201,235 | 193,101 |
¹ Source: Deutsche Börse
According to the International Monetary Fund (IMF), the global economy lost momentum in the first quarter of 2016. This was in part due to a general reluctance to trade and invest, falling commodity prices and a further drop in growth in China, where gross domestic product increased just 6.7 percent on the prior-year quarter in the first three months of 2016. Contrary to expectations, Chinese exports, capital spending and industrial production all recovered slightly in March, which was generally seen as a sign of stabilization.
In the first quarter 2016 the US economy rose by an annualized growth rate of only 0.5 percent. This was the weakest rate for two years. The US Department of Commerce attributed this to the lower consumer spending and a decline in corporate investment.
In the German economy, the ifo Business Climate Index improved at the end of the first quarter following several successive months of in part sharp falls. Companies feel that both the current situation and the business outlook are picking up again.
In March 2016, the Semiconductor Equipment and Materials International (SEMI) trade association published its finalized 2015 figures for the semiconductor equipment industry. Compared to the prior year, the equipment manufacturers' global revenue fell 3 percent to 36.5 billion US dollars. Revenue also declined in the semiconductor industry, particularly in North America and Europe, accord ing to the report published by IT analyst Gartner in April 2016. Due to weaker demand for electronic equipment, higher inventory levels and the strong US dollar, revenue in 2015 fell 2.3 percent to 334.8 billion US dollars. This trend continued in the first quarter. The semiconductor industry and its associated value chain is currently going through a period of consolidation, reflected in a high number of takeovers.
Thanks to strong growth in March the order intake of German machinery engineering companies rose by 5 percent in the first quarter compared to the same period in the prior year according to the German Engineering Federation (VDMA). While domestic orders stagnated from January to March orders from abroad increased by 7 percent.
According to the German Association of the Automotive Industry (VDA), the first quarter of 2016 saw good business performance in the three major automotive markets of China, the US and Western Europe, assisted by low interest rates, high demand for replacement demand (especially in Southern Europe) and tax incentives in China. New registrations in Russia, Brazil and Japan, by contrast, were far below prior-year figures.
For the first time since 2011, global expenditure on security and defense technology increased by 1 percent to around 1.68 trillion US dollars in 2015, according to SIPRI, the Swedish International Peace Research Institute. In view of the crises in Eastern Europe and the Middle East, countries in these regions increased their military spending, while capital expenditure declined in North America, Western Europe and Latin America. Nevertheless, the US still had the world's biggest military budget, followed by China and Saudi Arabia.
No major new reports had been published for the other sectors at the time these financial statements were pre pared. We therefore refer to the details on pages 85 ff. of the 2015 Annual Report.
The tables in the Management Report, which show a breakdown of the key indicators by segment, include the Corporate Center, the Shared Service Center, real estate and consolidation effects under "Other".
Development of revenue. Jenoptik enjoyed a good start to the year, as expected, and in the first three months generated year-on-year growth of 8.5 percent with revenue of 158.2 million euros (prior year 145.8 million euros). Growth was seen in all three segments, in particular in the Defense & Civil Systems segment as well as in the optical systems and laser machines areas.
The share of revenue generated abroad was increased to 65.3 percent (prior year 64.3 percent). Compared to the first three months of 2015, revenue in Europe (excluding Germany) grew strongly by approximately 11 percent to 48.3 million euros (prior year 43.5 million euros). Jenoptik also saw growth in Germany and the Asia/Pacific region.
The cost of sales showed a rise of 10.6 percent, to 105.7 million euros (prior year 95.6 million euros), and was in part influenced by the changed product mix with a higher share of the Defense & Civil Systems segment. The gross margin consequently fell to 33.1 percent (prior year 34.4 percent).
Research and development expenses (R+D) are of key relevance to the Group's future performance and competitiveness, and remained at a high level in the first quarter of 2016. The R+D total output came to 14.2 million euros follow ing 13.4 million euros in the comparable period of the prior year, equating to 9.0 percent of revenue (prior year 9.2 percent). The indicator includes the R+D expenses,
REVENUE
| in million euros | 1/1/ to 31/3/2016 |
1/1/ to 31/3/2015 |
Change in % |
|---|---|---|---|
| Total | 158.2 | 145.8 | 8.5 |
| Optics & Life Science | 52.2 | 51.3 | 1.7 |
| Mobility | 52.1 | 51.7 | 0.8 |
| Defense & Civil Systems | 54.4 | 42.7 | 27.4 |
| Other | -0.6 | 0.0 | |
development costs on behalf of customers and amortiza tion of the capitalized development costs that are included in assets. In the period covered by the report, the development costs on behalf of customers that are included in the cost of sales rose to 3.7 million euros (prior year 2.4 million euros), while R+D expenses came to 10.6 million euros (prior year 11.2 million euros).
In the first quarter of 2016, selling expenses fell to 18.4 million euros (prior year 19.3 million euros). Due to the stronger increase in revenue the selling expenses ratio was 11.6 percent, below the prior-year figure of 13.2 percent. At 13.0 million euros, administrative expenses were almost on a par with the prior-year level (prior year 13.3 million euros).
expenses fell sharply on the prior year. The account balance from both items amounted to minus 0.7 million euros (prior year 2.3 million euros). In the prior year, the account balance was chiefly influenced by positive currency effects.
Development of earnings. In the first three months of 2016, the Group reported an increase in EBITDA of 5.2 percent to 16.7 million euros, compared with 15.8 in the same prior-year period.
EBIT showed a disproportionate increase of 11.7 percent to 9.8 million euros (prior year 8.7 million euros), primarily due to higher gross profit and lower functional costs. The EBIT margin consequently increased from 6.0 percent to 6.2 percent.
The financial result in the first quarter was at minus 2.1 mil lion euros below the prior-year figure (prior year 1.1 million euros) that was affected positively in particular by exchange rate gains from the valuation of financial assets. Despite
EBIT
| in million euros | 1/1/ to 31/3/2016 |
1/1/ to 31/3/2015 |
Change in % |
|---|---|---|---|
| Total | 9.8 | 8.7 | 11.7 |
| Optics & Life Science | 5.2 | 5.2 | -0.9 |
| Mobility | 2.3 | 2.1 | 7.9 |
| Defense & Civil Systems | 3.2 | 0.8 | 300.2 |
| Other | -0.9 | 0.6 | |
reduced interest expenses in the period covered by the report, the Group generated lower earnings before tax of 7.7 million euros (prior year 9.8 million euros) due to the lack of these currency effects. Income taxes came to 1.2 mil lion euros (prior year 1.6 million euros), equating to a cash effective tax rate of 15.7 percent (prior year 16.0 percent). Earnings after tax were 6.5 million euros, compared to 8.3 million euros in the prior year.
Order situation. At 158.4 million euros, the Jenoptik Group's order intake in the first three months of 2016 was 5.0 percent down on the prior-year figure (prior year 166.8 million euros). The book-to-bill ratio, that of order intake to revenue, came to 1.00 (prior year 1.14). In the prior year the order intake was particularly influenced by a major order for energy systems in the Defense & Civil Systems segment. The order intake in this segment and in the Mobility segment accordingly remained below the prior-year figure. By contrast, the Optics & Life Science segment reported a sharp increase.
As a whole, the lower order intake resulted in a slight fall in the group order backlog, which at 368.5 million euros was 1.3 percent below the comparative figure (31/12/2015: 373.4 million euros). Of this order backlog, 66.1 percent will be converted to revenue in the present fiscal year and help to support scheduled growth in subsequent quarters. Not included in the 2016 order backlog are contracts worth 19.0 million euros. These are longterm framework contracts with flexible conditions.
Detailed information on the development of the segments can be found in the Segment Report from page 10 on.
Employees & management. As of March 31, 2016, the number of employees in the Jenoptik Group fell to 3,492 (31/12/2015: 3,512 employees / 31/3/2015: 3,570 em ployees). The number of employees abroad increased slightly in the course of the international expansion of business. At the end of March 2016, 638 people were employed at the foreign locations (31/12/2015: 629 em ployees / 31/3/2015: 629 employees).
Jenoptik had a total of 104 trainees as of March 31, 2016 (31/12/2015: 125 trainees). The Group had 111 agency employees in Germany (31/12/2015: 101 agency employees).
With a sound equity ratio, the debenture loans and the syndicated loan, the Group has a viable financing structure for organic growth and potential acquisitions.
Compared to the end of 2015, the debt ratio, that of borrowings to equity, improved from 0.77 to 0.75 as of March 31, 2016, chiefly due to increased equity.
Following a significant reduction in net debt to 43.9 million euros on December 31, 2015, good free cash flows allow ed this indicator to fall further by more than 10 million euros to 33.4 million euros as of March 31, 2016.
Capital expenditure. In the first quarter of 2016, the Group invested 5.5 million euros in property, plant and equipment and intangible assets (prior year 5.9 million euros). At 5.1 million euros, the largest share of capital expenditure was again devoted to property, plant and equipment (prior year 5.2 million euros), including new technical equipment and an expansion in production capacities. Investments in intangible assets, at 0.4 million euros
| in million euros | 1/1/ to 31/3/2016 |
1/1/ to 31/3/2015 |
Change in % | |
|---|---|---|---|---|
| Total | 158.4 | 166.8 | -5.0 | |
| Optics & Life Science | 59.1 | 49.1 | 20.3 | |
| Mobility | 64.8 | 68.6 | -5.5 | |
| Defense & Civil Systems | 37.6 | 50.7 | -25.8 | |
| Other | -3.0 | -1.6 | ||
| in million euros | 31/3/2016 | 31/12/2015 | Change in % |
|---|---|---|---|
| Total | 368.5 | 373.4 | -1.3 |
| Optics & Life Science | 75.7 | 73.7 | 2.7 |
| Mobility | 104.6 | 92.7 | 12.9 |
| Defense & Civil Systems | 192.7 | 209.7 | -8.1 |
| Other | -4.4 | -2.6 | |
in the first three months, fell below the figure for the same period in the prior year (prior year 0.7 million euros). Scheduled depreciation totaled 6.9 million euros (prior year 7.1 million euros).
Cash flows from operating activities were mainly boosted by lower payments for the working capital, and at 15.4 mil lion euros as of March 31, 2016 were considerably above the prior year's figure of minus 0.8 million euros.
Proceeds from the sale of financial assets were chiefly responsible for improved cash flows from investing activities compared prior the prior year. The outflow of funds for investing activities in the first quarter of 2016 amounted to 3.9 million euros (prior year 6.1 million euros).
In the period covered by the report, the free cash flow (cash flows from operating activities before interest and income taxes minus payments for operating investing activities) was primarily influenced by the lower increase in working capital mentioned above, and at 12.0 million euros was well above the prior year's figure of minus 3.3 million euros.
The cash flows from financing activities amounted to minus 1.3 million euros (prior year minus 15.8 million euros). In the prior year, they were largely influenced by changes in the group financing, above all due to the payment made to the last remaining silent real estate investor.
At 766.3 million euros, the balance sheet total of the Jenoptik Group as of March 31, 2016 was marginally below the figure at the end of 2015 (31/12/2015: 769.2 million euros).
The fall in intangible assets, property, plant and equipment and financial assets resulted in lower non-current assets
R+D OUTPUT
of 372.8 million euros (31/12/2015: 382.8 million euros). Compared to the end of 2015, the increase in inventories and in cash and cash equivalents resulted in higher current assets of 393.5 million euros (31/12/2015: 386.3 million euros). Inventories rose to 173.6 million euros (31/12/2015: 167.1 million euros), as order-related prepayments were made for future revenues. The increase in cash and cash equivalents to 93.7 million euros (31/12/2015: 83.8 million euros) was due to good cash flows from operating activities generated in the first three months. Trade receivables, by contrast, came to 125.7 million euros and were thus below the figure at the end of 2015 (31/12/2015: 135.0 million euros), in part due to higher payments received.
Due to increased inventories, and lower trade accounts payable as well as trade accounts receivable, the working capital increased slightly on the 2015 year-end figure (31/12/2015: 215.5 million euros) to 218.0 million euros at the end of the first quarter of 2016, but was below the figure in the prior-year period (31/3/2015: 237.3 million euros). The increase, however, was lower than revenue growth. The working capital ratio, that of working capital to revenue based on the last twelve months, was 32.0 and below the comparative figures at the end of 2015 (31/12/2015: 32.2 percent) and in the prior-year period (31/3/2015: 35.2 percent).
The earnings after tax posted at the end of March, reduced by exchange rate effects from the conversion of consoli dated accounts, resulted in equity increasing to 438.2 million euros (31/12/2015: 435.1 million euros). The equity ratio thereby improved to 57.2 percent (31/12/2015: 56.6 percent).
Compared to the end of December 2015, non-current liabilities were virtually unchanged at 170.3 million euros (31/12/2015: 169.5 million euros). There were also no
| in million euros | 1/1/ to 31/3/2016 |
1/1/ to 31/3/2015 |
Change in % |
|---|---|---|---|
| R+D output | 14.2 | 13.4 | 6.3 |
| R+D expenses | 10.6 | 11.2 | -4.7 |
| Capitalized development costs | 0.0 | 0.1 | -98.8 |
| Depreciation and impairment on capitalized development costs |
-0.1 | -0.3 | 57.2 |
| Developments on behalf of customers |
3.7 | 2.4 | 54.2 |
| 3,492 | 3,512 | -0.6 |
|---|---|---|
| 1,132 | 1,144 | -1.0 |
| 1,200 | 1,207 | -0.6 |
| 879 | 881 | -0.2 |
| 281 | 280 | 0.4 |
significant changes in the items included, such as non-current financial liabilities and pension provisions. Non-current liabilities primarily include debenture loans placed in 2011 and 2015, totaling 125 million euros and with original terms of five and seven years.
Compared to year-end 2015, current liabilities fell to 157.8 million euros (31/12/2015: 164.5 million euros), among other things due to reduced trade accounts pay able. There were only minor changes in the other items.
Purchases and sales of companies. There were no pur chases or sales of companies in the first quarter 2016.
For details on assets and liabilities not included in the balance sheet, we refer to the information on page 98 of the 2015 Annual Report and the details on contingent liabilities on page 186.
The Optics & Life Science segment reported a robust start of business in the first three months of 2016: At 52.2 million euros, revenue in the segment was 1.7 percent up on the prior year (prior year 51.3 million euros). Slightly improved business with solutions for the IT and communications industry, as well as new products for the semiconductor equipment industry, were key drivers of this growth. Sales of laser systems and optoelectronic modules for the medical technology markets, by contrast, developed at a belowaverage rate at the start of the year. Overall, the segment's share of group revenue was 33.0 percent (prior year 35.2 percent). While revenue in Germany declined from 11.9 million euros to 10.2 million euros, the other European countries performed better: revenue in Europe (excluding Germany) increased to 18.1 million euros (prior year 14.9 million euros). In the Asia/Pacific region, too, revenue grew, while business in the Americas was marked by declining revenues.
At 7.2 million euros, EBITDA was virtually unchanged on the prior year (prior year 7.3 million euros). EBIT came to 5.2 million euros, and was also on a par with the figure in the prior-year period (prior year 5.2 million euros). The EBIT margin came to 10.0 percent (prior year 10.2 percent).
The segment order intake, at 59.1 million euros, was 20.3 percent up on the prior year (prior year 49.1 million euros) and 6.9 million euros above revenue in the reporting period. Set against revenue, this results in a book-to-bill ratio of 1.13 (prior year 0.96). The encouraging growth in order intake predominantly originated in the Healthcare & Industry division.
| in million euros | 31/3/2016 | 31/3/2015 | Change in % |
|---|---|---|---|
| Revenue | 52.2 | 51.3 | 1.7 |
| EBITDA | 7.2 | 7.3 | -1.7 |
| EBITDA margin | 13.8 | 14.2 | |
| EBIT | 5.2 | 5.2 | -0.9 |
| EBIT margin | 10.0 | 10.2 | |
| Free cash flow | -0.3 | -3.7 | 91.1 |
| Order intake | 59.1 | 49.1 | 20.3 |
| Order backlog¹ | 75.7 | 73.7 | 2.7 |
| Employees¹ | 1,132 | 1,144 | -1.0 |
THE OPTICS & LIFE SCIENCE SEGMENT AT A GLANCE
¹ Prior year's figures refer to December 31, 2015
The order backlog in the segment increased compared to the end of last year and came to 75.7 million euros at the end of March 2016 (31/12/2015: 73.7 million euros).
In the first three months of 2016, the number of employees was just below the level as at year-end 2015, with 1,132 employees (31/12/2015: 1,144 employees).
The reluctance to invest still prevailing at the beginning of the year in connection with the slight downturn in the economy resulted in restrained growth in the Mobility segment in the reporting period.
In the first three months of 2016, revenue in the segment came to 52.1 million euros, slightly higher than the prioryear figure (prior year 51.7 million euros). The Automotive division showed a positive development. Revenues in Europe (including Germany) were 7.4 percent lower. By contrast, revenue in the Americas grew 7.2 percent. In Asia/Pacific, the segment even managed a revenue increase of 37.8 percent. The segment's share of group revenue fell from 35.5 percent in the prior year to 33.0 percent.
In the period covered by the report, income from opera tions before depreciation (EBITDA) increased 3.9 percent to 4.4 million euros (prior year 4.2 million euros). The segment's EBIT grew even more, by 7.9 percent to 2.3 million euros (prior year 2.1 million euros). This development is largely due to lower functional costs. At 4.4 percent, the EBIT margin was accordingly up on the prior year level of 4.1 percent.
in million euros 31/3/2016 31/3/2015 Change in % Revenue 52.1 51.7 0.8 EBITDA 4.4 4.2 3.9 EBITDA margin 8.4 8.1 EBIT 2.3 2.1 7.9 EBIT margin 4.4 4.1 Free cash flow 3.7 4.3 -12.8 Order intake 64.8 68.6 -5.5 Order backlog¹ 104.6 92.7 12.9 Employees¹ 1,200 1,207 -0.6
¹ Prior year's figures refer to December 31, 2015
The order intake in the Mobility segment was at 64.8 mil lion euros (prior year 68.6 million euros) higher than revenue in the period covered by the report. The fall compared to the prior year is primarily attributable to the field of traffic safety, however, a number of larger projects are currently still at the tendering stage. Contracts for these projects are due to be awarded in the further course of the year.
At 1.24 the book-to-bill ratio reached a good level in the first three months of 2016 (prior year 1.33). At 104.6 million euros, the order backlog in the segment was 12.9 percent above the 2015 year-end figure (31/12/2015: 92.7 million euros).
As of March 31, 2016, the segment had 1,200 employees (31/12/2015: 1,207 employees).
In the first three months, revenue in the Defense & Civil Systems segment rose as planned, coming to 54.4 million euros, 27.4 percent above the prior-year figure (prior year 42.7 million euros). This development was predominantly due to a good start to the year in the area of energy and sensor systems. The segment's share of group revenue, at 34.4 percent, was up on the comparative quarter (prior year 29.3 percent). Growth was generated in all the report ing regions. In Germany – the segment's largest sales market – revenue increased to 31.4 million euros on the back of good business with domestic systems companies (prior year 27.6 million euros).
In the first quarter of 2016 the segment generated an EBITDA of 4.3 million euros (prior year 2.0 million euros).
THE DEFENSE & CIVIL SYSTEMS SEGMENT AT A GLANCE
| in million euros | 31/3/2016 | 31/3/2015 | Change in % |
|---|---|---|---|
| Revenue | 54.4 | 42.7 | 27.4 |
| EBITDA | 4.3 | 2.0 | 112.3 |
| EBITDA margin | 8.0 | 4.8 | |
| EBIT | 3.2 | 0.8 | 300.2 |
| EBIT margin | 5.8 | 1.9 | |
| Free cash flow | 9.3 | 1.6 | 468.4 |
| Order intake | 37.6 | 50.7 | -25.8 |
| Order backlog¹ | 192.7 | 209.7 | -8.1 |
| Employees¹ | 879 | 881 | -0.2 |
¹ Prior year's figures refer to December 31, 2015
THE MOBILITY SEGMENT AT A GLANCE
The EBIT improved considerably from 0.8 million euros in the prior year to 3.2 million euros, primarily due to good revenue growth and a high-margin product mix.
In the reporting period, the order intake fell 25.8 percent to 37.6 million euros (prior year 50.7 million euros). In the prior year, this item included a major order to deliver mo bile power generating units for the Patriot missile defense system to the US company Raytheon. The segment's bookto-bill ratio was 0.69, compared with 1.19 in the prior year.
The order backlog in the segment fell by a total of 17.0 million euros to 192.7 million euros (31/12/2015: 209.7 million euros), mainly due to the execution of longterm projects.
As of March 31, 2016, the segment had 879 employees (31/12/2015: 881 employees).
There were no events of special importance occurring after the balance sheet date of March 31, 2016.
Within the framework of the reporting on the Risk Report, we refer to the details on pages 110 to 121 of the 2015 Annual Report published at the end of March 2016.
There have been no major changes in the risks described in the report during the course of the first three months of 2016 up to the editorial closing date for this report.
For the fourth time in succession, the International Monetary Fund (IMF) has lowered its global growth forecast (see table) and for 2016 is expecting the global economy to grow 3.2 percent (previously 3.4 percent). Risks have grown significantly, and include developments in China – even though the IMF is now assessing these more positively –, widespread reluctance to invest, low oil and commodity prices and fluctuating exchange rates. These
GROWTH FORECAST OF GROSS DOMESTIC PRODUCT
| in percent / in percentage points | 2016 | Change to forecast of January 2016 |
2017 |
|---|---|---|---|
| World | 3.2 | -0.2 | 3.5 |
| US | 2.4 | -0.2 | 2.5 |
| Euro zone | 1.5 | -0.2 | 1.6 |
| Germany | 1.5 | -0.2 | 1.6 |
| China | 6.5 | 0.2 | 6.2 |
| Emerging economies | 4.1 | -0.2 | 4.6 |
Source: International Monetary Fund, April 2016
factors are compounded by geopolitical uncertainties: the IMF believes that the potential withdrawal of the UK from the EU could result in considerable regional and global upheaval. Further risks include terrorism and the refugee crisis. For the US, the IMF anticipates stable growth in gross domestic product of 2.4 percent, with a moderate 1.5 percent forecast for the euro zone and Germany.
According to forecasts issued by SEMI trade association, 2016 will at best see revenue stagnating at semiconductor equipment manufacturers. The association only expects growth to return, and then in the double-digit figures, in 2017. According to estimates provided by IT analyst Gartner, the semiconductor industry will generate revenue of around 333 billion US dollars in the current year, 0.6 percent less than in 2015. A new driver of growth is not in sight, according to Gartner.
According to a survey conducted by the German Engineering Federation (VDMA), just under 60 percent of Germany machinery engineering companies are planning to invest in the US over the coming three years; around half plan to establish or expand production and assembly capacities.
The VDA has upped its guidance for the Chinese automotive market and is expecting an increase of 6 percent. This would impact positively on the global market, which could reach the 80 million mark for the first time in 2016. The market for commercial vehicles in Western Europe is also due to continuing growing in 2016, according to the VDA.
No new major forecasts have been issued for the other sectors. We therefore refer to the details on pages 122 ff. of the 2015 Annual Report.
For information on the medium to long-term outlook, we refer to the 2015 Annual Report published in March 2016, in particular the details in the "Targets and Strategies" section from page 65 on and in the Forecast Report from page 122 on.
Jenoptik still anticipates annual revenue of around 800 million euros with an average EBIT margin of 9 to 10 percent over the market cycles, and including smaller acquisitions,
to be achieved by the end of 2018. In order to reach these goals, the company is aiming for exceptional growth abroad, particularly in the Americas and Asia/Pacific. More than 40 percent of revenue (2015: 32.7 percent) is due to be generated in these two target regions by 2018.
The details are given on the assumption that the economic situation develops in line with the economic and sector forecasts stated in this report and in the 2015 Annual Report from page 122 on.
The Jenoptik Group will continue to pursue its strategic agenda with the aim of achieving profitable growth in all its segments. Revenue growth, the resulting economies of scale, cost discipline and higher margins from the growing systems and service business together with the expansion of international sales structures are expected to produce an increase in and sustainability of results. Internal process optimization and the group development projects will also continue in the current fiscal year. Value-adding acquisi tions will be subject to close scrutiny.
The good asset position and a viable financing structure give Jenoptik sufficient room for maneuver to finance further growth and acquisitions.
Following good development of business as scheduled in the first quarter of 2016, the Jenoptik Executive Board has confirmed the guidance it published in March. For 2016, it is expecting group revenue to come in at between 680 and 700 million euros (prior year 668.6 million euros). Group EBIT is also expected to show a moderate rise, the EBIT margin shall be within the range of 9.0 and 9.5 percent (prior year 9.2 percent). Earnings before tax shall develop similarly to EBIT in 2016. Depending on the future tax burden, this will also be reflected to in the earnings after tax.
All statements on the future development of the business situation have been made on the basis of current information. We refer to the 2015 Annual Report, from page 125 on, for details of the outlook for other key indicators for the development of business and the development of the segments in 2016.
| in thousand euros Revenue Cost of sales Gross profit Research and development expenses Selling expenses General and administrative expenses Other operating income |
1/1/ to 31/3/2016 158,167 105,744 52,422 |
1/1/ to 31/3/2015 145,777 95,600 |
|---|---|---|
| 50,177 | ||
| 10,632 | 11,156 | |
| 18,389 | 19,274 | |
| 12,961 | 13,346 | |
| 4,132 | 8,713 | |
| Other operating expenses | 4,865 | 6,379 |
| EBIT – continuing operations | 9,708 | 8,735 |
| EBIT – discontinued operations | 50 | 0 |
| EBIT – Group | 9,758 | 8,735 |
| Result from other investments | -70 | -57 |
| Financial income | 2,159 | 5,795 |
| Financial expenses | 4,195 | 4,628 |
| Financial result | -2,106 | 1,111 |
| Earnings before tax – continuing operations | 7,602 | 9,845 |
| Earnings before tax – discontinued operations | 50 | 0 |
| Earnings before tax – Group | 7,652 | 9,845 |
| Income taxes | -1,182 | -1,594 |
| Earnings after tax – continuing operations | 6,419 | 8,251 |
| Earnings after tax – discountinued operations | 50 | 0 |
| Earnings after tax – Group | 6,469 | 8,251 |
| Results from non-controlling interests | -10 | 168 |
| Earnings attributable to shareholders | 6,479 | 8,084 |
| Earnings per share in euro – continuing operations | 0.11 | 0.14 |
| Earnings per share in euros - Group (diluted = undiluted) | 0.11 | 0.14 |
| in thousand euros | 1/1/ to 31/3/2016 | 1/1/ to 31/3/2015 |
|---|---|---|
| Earnings after tax | 6,469 | 8,251 |
| Items that will never be reclassified to profit or loss | -436 | 269 |
| Remeasurements | -436 | 174 |
| Deferred taxes | 0 | 96 |
| Items that are or may be reclassified to profit or loss | -2,945 | 6,789 |
| Available-for-sale financial assets | -211 | 647 |
| Cash flow hedges | 803 | -335 |
| Foreign currency exchange differences | -3,293 | 6,377 |
| Deferred taxes | -244 | 100 |
| Total of the profit/loss recognized in equity | -3,381 | 7,058 |
| Total other comprehensive income | 3,088 | 15,309 |
| Thereof attributable to: | ||
| Non-controlling interest | 123 | 97 |
| Shareholders | 2,965 | 15,213 |
| Assets in thousand euros | 31/3/2016 | 31/12/2015 | Change | 31/3/2015 |
|---|---|---|---|---|
| Non-current assets | 372,820 | 382,827 | -10,007 | 397,780 |
| Intangible assets | 117,785 | 122,737 | -4,951 | 126,071 |
| Property, plant and equipment | 152,288 | 155,659 | -3,371 | 152,625 |
| Investment property | 4,514 | 4,536 | -22 | 16,337 |
| Financial assets | 19,677 | 21,745 | -2,068 | 23,553 |
| Other non-current assets | 5,388 | 4,548 | 840 | 2,107 |
| Deferred tax assets | 73,168 | 73,602 | -434 | 77,087 |
| Current assets | 393,489 | 386,340 | 7,149 | 382,044 |
| Inventories | 173,628 | 167,132 | 6,496 | 194,850 |
| Trade and other receivables | 125,726 | 134,966 | -9,239 | 135,827 |
| Securities | 397 | 418 | -21 | 357 |
| Cash and cash equivalents | 93,738 | 83,824 | 9,914 | 51,010 |
| Total assets | 766,309 | 769,167 | -2,858 | 779,824 |
| Equity and liabilities in thousand euros | 31/3/2016 | 31/12/2015 | Change | 31/3/2015 |
|---|---|---|---|---|
| Equity | 438,220 | 435,132 | 3,088 | 401,902 |
| Share capital | 148,819 | 148,819 | 0 | 148,819 |
| Capital reserve | 194,286 | 194,286 | 0 | 194,286 |
| Other reserves | 96,073 | 93,108 | 2,965 | 60,031 |
| Non-controlling interests | -958 | -1,081 | 123 | -1,234 |
| Non-current liabilities | 170,281 | 169,513 | 768 | 219,252 |
| Pension provisions | 36,253 | 36,095 | 158 | 40,637 |
| Other non-current provisions | 10,491 | 10,275 | 216 | 10,036 |
| Non-current financial liabilities | 113,285 | 113,243 | 42 | 156,936 |
| Other non-current liabilities | 8,358 | 7,915 | 443 | 10,131 |
| Deferred tax liabilities | 1,894 | 1,986 | -92 | 1,512 |
| Current liabilities | 157,807 | 164,521 | -6,714 | 158,671 |
| Tax provisions | 2,264 | 3,281 | -1,017 | 4,403 |
| Other current provisions | 45,999 | 42,745 | 3,254 | 42,331 |
| Current financial liabilities | 14,258 | 14,850 | -592 | 5,582 |
| Other current liabilities | 95,286 | 103,646 | -8,360 | 106,355 |
| Total equity and liabilities | 766,309 | 769,167 | -2,858 | 779,824 |
| in thousand euros | Share capital | Capital reserve | Cumulative profit | Available-for-sale financial assets |
Cash flow hedges | |
|---|---|---|---|---|---|---|
| Balance at 1/1/2015 | 148,819 | 194,286 | 73,442 | 600 | -945 | |
| Remeasurement of financial instruments | 647 | -235 | ||||
| Remeasurement gain | ||||||
| Foreign currency exchange differences | ||||||
| Earnings after tax | 8,084 | |||||
| Balance at 31/3/2015 | 148,819 | 194,286 | 81,526 | 1,247 | -1,180 | |
| Balance at 1/1/2016 | 148,819 | 194,286 | 111,508 | 802 | -399 | |
| Remeasurement of financial instruments | -211 | 563 | ||||
| Remeasurement loss | ||||||
| Foreign currency exchange differences | ||||||
| Earnings after tax | 6,479 | |||||
| Balance at 31/3/2016 | 148,819 | 194,286 | 117,987 | 591 | 164 |
| Cumulative exchange differences |
Remeasurements | Equity attributable to shareholders of JENOPTIK AG |
Non-controlling interests |
Total | in thousand euros |
|---|---|---|---|---|---|
| 4,042 | -32,322 | 387,922 | -1,329 | 386,593 | Balance at 1/1/2015 |
| 412 | 412 | Remeasurement of financial instruments | |||
| 786 | 786 | 786 | Remeasurement gain | ||
| 6,448 | -517 | 5,931 | -71 | 5,860 | Foreign currency exchange differences |
| 8,084 | 168 | 8,251 | Earnings after tax | ||
| 10,489 | -32,052 | 403,135 | -1,233 | 401,902 | Balance at 31/3/2015 |
| 9,273 | -28,076 | 436,213 | -1,081 | 435,132 | Balance at 1/1/2016 |
| 352 | 352 | Remeasurement of financial instruments | |||
| -436 | -436 | -436 | Remeasurement loss | ||
| -3,453 | 23 | -3,430 | 133 | -3,297 | Foreign currency exchange differences |
| 6,479 | -10 | 6,469 | Earnings after tax | ||
| 5,820 | -28,489 | 439,178 | -958 | 438,220 | Balance at 31/3/2016 |
| in thousand euros | 1/1/ to 31/3/2016 | 1/1/ to 31/3/2015 |
|---|---|---|
| Earnings before tax | 7,652 | 9,845 |
| Financial income and financial expenses | 2,036 | -1,167 |
| Depreciation and amortization | 6,916 | 7,112 |
| Impairment losses and reversals of impairment losses | 72 | 65 |
| Profit/loss from asset disposals | 87 | 38 |
| Other non-cash income/expenses | -343 | -1,812 |
| Operating profit before adjusting working capital | 16,419 | 14,082 |
| Change in provisions | 3,231 | 3,694 |
| Change in working capital | -4,615 | -16,231 |
| Change in other assets and liabilities | 2,351 | 986 |
| Cash flows operating activities before income tax | 17,387 | 2,531 |
| Income tax expense | -2,031 | -3,292 |
| Cash flows from operating activities | 15,356 | -761 |
| Thereof discontinued operations | 50 | 0 |
| Proceeds from sale of intangible assets | 23 | 0 |
| Capital expenditure for intangible assets | -437 | -700 |
| Proceeds from sale of property, plant and equipment | 83 | 31 |
| Capital expenditure for property, plant and equipment | -5,097 | -5,182 |
| Proceeds from sale of financial assets | 1,500 | 0 |
| Capital expenditure for financial assets | -107 | -75 |
| Acquisition of consolidated entities | 0 | -411 |
| Interest received | 118 | 211 |
| Cash flows from investing activities | -3,918 | -6,127 |
| Repayments of bonds and loans | -465 | -49 |
| Payments for finance leases | -8 | -16 |
| Change in group financing | -419 | -14,261 |
| Interests paid | -376 | -1,450 |
| Cash flows from financing activities | -1,268 | -15,776 |
| Change in cash and cash equivalents | 10,171 | -22,663 |
| Thereof discontinued operations | 50 | 0 |
| Effects of movements in exchange rates on cash held | -257 | 4,178 |
| Cash and cash equivalents at the beginning of the period | 83,824 | 69,495 |
| Cash and cash equivalents at the end of the period | 93,738 | 51,010 |
from January 1 to March 31, 2016
| in thousand euros | Optics & Life Science |
Mobility | Defense & Civil Systems |
Other | Consolidation | Group |
|---|---|---|---|---|---|---|
| Revenue | 52,175 | 52,146 | 54,436 | 8,548 | -9,138 | 158,167 |
| (51,288) | (51,735) | (42,742) | (7,856) | (-7,844) | (145,777) | |
| Germany | 10,217 | 13,477 | 31,448 | 7,748 | -8,065 | 54,825 |
| (11,918) | (12,219) | (27,639) | (6,253) | (-6,052) | (51,977) | |
| Europe | 18,080 | 14,830 | 15,417 | 30 | -37 | 48,319 |
| (14,877) | (18,335) | (10,263) | (27) | (-27) | (43,475) | |
| Americas | 9,142 | 11,922 | 4,078 | 624 | -627 | 25,138 |
| (10,809) | (11,117) | (3,421) | (1,440) | (-1,454) | (25,333) | |
| Middle East and Africa | 3,693 | 1,683 | 871 | 0 | 0 | 6,247 |
| (3,345) | (2,636) | (856) | (0) | (0) | (6,836) | |
| Asia / Pacific | 11,048 | 10,236 | 2,623 | 146 | -416 | 23,637 |
| (10,339) | (7,428) | (563) | (136) | (-311) | (18,155) | |
| EBITDA | 7,182 | 4,381 | 4,334 | 759 | 20 | 16,676 |
| (7,307) | (4,215) | (2,041) | (2,325) | (-39) | (15,848) | |
| EBIT | 5,192 | 2,310 | 3,175 | -940 | 20 | 9,758 |
| (5,241) | (2,141) | (794) | (598) | (-39) | (8,735) | |
| Investment income | -70 | 0 | 0 | 0 | 0 | -70 |
| (-63) | (0) | (0) | (935) | (-929) | (-57) | |
| Research and development expenses | 3,763 | 5,187 | 1,680 | 96 | -94 | 10,632 |
| (3,985) | (5,251) | (1,855) | (150) | (-85) | (11,156) | |
| Free cash flow (before interest and income taxes) | -324 | 3,710 | 9,320 | -1,027 | 280 | 11,959 |
| (-3,661) | (4,253) | (1,640) | (-1,860) | (-3,692) | (-3,321) | |
| Working capital¹ | 61,698 | 56,802 | 103,809 | -4,259 | -30 | 218,020 |
| (56,152) | (58,351) | (106,026) | (-4,961) | (-31) | (215,537) | |
| Order intake | 59,076 | 64,750 | 37,606 | 7,969 | -10,988 | 158,413 |
| (49,121) | (68,551) | (50,706) | (7,856) | (-9,447) | (166,786) | |
| Total assets¹ | 187,851 | 208,338 | 182,540 | 662,937 | -475,357 | 766,309 |
| (188,948) | (212,848) | (187,544) | (676,953) | (-497,125) | (769,167) | |
| Total liabilities¹ | 51,552 | 139,016 | 128,403 | 166,665 | -157,547 | 328,089 |
| (56,622) | (142,374) | (143,208) | (171,323) | (-179,493) | (334,035) | |
| Increase in intangible assets and | 974 | 819 | 903 | 481 | 0 | 3,178 |
| property, plant and equipment | (1,462) | (1,203) | (1,842) | (1,451) | (0) | (5,957) |
| Depreciation and amortization | 1,988 | 2,071 | 1,158 | 1,698 | 0 | 6,916 |
| (2,065) | (2,072) | (1,248) | (1,727) | (0) | (7,112) | |
| Numbers of employees on average | 1,108 | 1,174 | 830 | 276 | 0 | 3,388 |
| without trainees | (1,148) | (1,183) | (842) | (267) | (0) | (3,439) |
Prior year figures in parentheses
¹ Prior year's figures refer to December 31, 2015
The parent company of Jenoptik Group is JENOPTIK AG headquartered in Jena with its legal seat registered in the Jena Commercial Register under the number HRB 200146. JENOPTIK AG is a stock corporation listed on the German Stock Exchange in Frankfurt and, among others, listed on the TecDax index.
The accounting policies applied in preparing the 2015 consolidated financial statements were also applied in preparing the interim consolidated financial statements as at March 31, 2016, which were prepared on the basis of the International Accounting Standard (IAS) 34 "Interim Financial Reporting". These interim consolidated financial statements were prepared in accordance with the Interna tional Financial Reporting Standards (IFRS) as adopted by the European Union. These policies were published and individually described in detail in the Notes to the 2015 Annual Report. The Annual Report is available on the internet under www.jenoptik.com using the path Investors/ Reports and Presentations.
The interim consolidated financial statements were pre pared in euros, the currency used in the Group, and figures are shown in thousand euros, if not otherwise stated. It is to be noted that there may be rounding differences as compared to the mathematically exact values (monetary units, percentages, etc.).
Management considers the interim consolidated financial statements to include all standard adjustments to be made on an ongoing basis to present a true and fair view of the Group's business performance in the period under review.
The following IFRS have been applied for the first time in the in fiscal year 2016:
IFRS Improvements IFRS (2012 – 2014). As part of the IASB Annual Improvements Project, amendments were made to four standards. Along with clarifying existing regulations, amendments impacting the statement of finan cial position and the required disclosures were adopted. The standards affected are IAS 19, IAS 34, IFRS 5 and IFRS 7. The amendments became effective as of January 1, 2016. These improvements have no material effects on the consolidated financial statements.
Statements". These amendments affect various disclosure issues. It was clarified that disclosures in the notes are only then required when their content is not immaterial. This is explicitly to be applied when an IFRS requires a list of minimum disclosures. In addition, explanations have been added regarding aggregating and disaggregating items in the statement of financial position and the statement of comprehensive income. Furthermore, it has been clarified how interests in entities stated at equity are to be disclosed in other comprehensive income in the statement of comprehensive income. Finally a sample structure for the notes was stricken in order to take considerations of relevance specific to an entity into account. These amendments became effective as of January 1, 2016. These improvements have no material effects on the consolidated financial statements.
Amendment to IAS 16 "Property, Plant and Equip ment" and IAS 38 "Intangible Assets". With this amendment further guidelines were made available for determining which measurement methods are to be applied for depreciating tangible assets and for amortizing intangible assets. Depreciation methods for property, plant and equipment based on revenue are not to be applied, whereas revenuebased amortization methods may be applied in certain cases as an exception for intangible assets. This amendment became effective as of January 1, 2016 and has no effect on the consolidated financial statements.
Amendment to IFRS 11 "Joint Arrangements". With this amendment the IASB regulates the accounting treatment for investing in a joint operation as defined by IFRS 3 (a joint operation constituting a business). In such cases the acquirer uses the accounting principles given in IFRS 3 for business combinations. Moreover, the disclosure requirements specified in IFRS 3 shall also be applied. This amendment became effective as of January 1, 2016 and has no effect on the consolidated financial statements.
The consolidated financial statements of JENOPTIK AG contain 32 fully consolidated subsidiaries (31/12/2015: 33). Thereof 13 (31/12/2015: 14) have their legal seat in Germany and 19 (31/12/2015: 19) abroad. The reduction of the number of fully consolidated subsidiaries is due to a simplification in the holding structure of the Group. The companies to be consolidated within the Jenoptik Group still contain one joint opera tion.
Since January 1, 2016 Jenoptik has aligned its organizational structure more consequently on market requirements. The business activities were newly structured and better targeted at growth markets such as medical technology, automotive and semiconductor equipment. The segment reporting follows this new organizational structure. Prior year figures were adjusted accordingly.
Transactions with a significant influence on the interim consolidated financial statements of Jenoptik as at March 31, 2016 did not occur.
| PROPERTY, PLANT AND EQUIPMENT | |||
|---|---|---|---|
| -- | -- | -- | ------------------------------- |
| in thousand euros | 31/3/2016 | 31/12/2015 |
|---|---|---|
| Land and buildings | 84,111 | 85,385 |
| Technical equipment and machines | 41,340 | 42,894 |
| Other equipment, operating and office | ||
| equipment | 22,819 | 23,418 |
| Payments on-account and assets under | ||
| construction | 4,018 | 3,962 |
| Total | 152,288 | 155,659 |
| in thousand euros | 31/3/2016 | 31/12/2015 |
|---|---|---|
| Raw materials, consumables and supplies | 60,641 | 57,753 |
| Work in progress | 91,136 | 89,007 |
| Finished goods and merchandise | 19,823 | 18,004 |
| Payments on-account made | 2,028 | 2,369 |
| Total | 173,628 | 167,132 |
| in thousand euros | 31/3/2016 | 31/12/2015 |
|---|---|---|
| Trade receivables | 111,109 | 120,009 |
| Receivables from unconsolidated | ||
| associates | 1,642 | 1,847 |
| Receivables from construction contracts | 1,486 | 1,359 |
| Receivables from entities in which | ||
| investments are held | 943 | 405 |
| Other assets | 10,546 | 11,346 |
| Total | 125,726 | 134,966 |
| in thousand euros | 31/3/2016 | 31/12/2015 |
|---|---|---|
| Non-current bank liabilities | 113,221 | 113,173 |
| Non-current liabilities from finance leases | 64 | 70 |
| Total | 113,285 | 113,243 |
| in thousand euros | 31/3/2016 | 31/12/2015 |
|---|---|---|
| Bank liabilities | 14,212 | 14,802 |
| Liabilities from finance leases | 46 | 48 |
| Total | 14,258 | 14,850 |
| in thousand euros | 31/3/2016 | 31/12/2015 |
|---|---|---|
| Trade payables | 44,088 | 47,801 |
| Liabilities from advanced payments received |
23,944 | 25,162 |
| Liabilities to unconsolidated associates | 2,473 | 2,874 |
| Liabilities from construction contracts | 171 | 0 |
| Liabilities to entities in which investments are held |
45 | 177 |
| Other current liabilities | 24,565 | 27,632 |
| Total | 95,286 | 103,646 |
The carrying amounts listed below for cash and cash equivalents, available for sale financial assets, contingent obligations and derivatives held for hedging purposes corres pond to their fair value. The carrying amounts of the remaining items represent an appropriate approximation of their fair value.
| in thousand euros | Carrying amount 31/3/2016 |
Carrying amount 31/12/2015 |
|---|---|---|
| Financial assets | 224,929 | 222,142 |
| Loans granted and receivables | 126,133 | 135,389 |
| Cash and cash equivalents | 93,738 | 83,824 |
| Available for sale | 2,390 | 2,585 |
| Finance lease receivables | 1,209 | 0 |
| Hedged derivatives | 1,459 | 343 |
| Financial liabilities | 191,265 | 196,254 |
| Liabilities to bank and other financial liabilities |
127,433 | 127,975 |
| Trade payables | 44,088 | 47,897 |
| Finance lease liabilities | 110 | 118 |
| Other non-derivative financial liabilities | ||
| Contingent liabilities | 1,871 | 1,423 |
| Other | 16,366 | 15,400 |
| Hedged derivatives | 1,397 | 3,441 |
The following chart shows the fair value hierarchy for financial assets and liabilities measured at fair value:
| Carrying amount |
||||
|---|---|---|---|---|
| in thousand euros | 31/3/2016 | Level 1 | Level 2 | Level 3 |
| Available for sale | 2,390 | 2,075 | 0 | 315 |
| (2,585) | (2,286) | (0) | (299) | |
| Hedged derivatives | 1,459 | 0 | 1,459 | 0 |
| (assets) | (343) | (0) | (343) | (0) |
| Contingent liabilities | 1,871 | 0 | 0 | 1,871 |
| (1,423) | (0) | (0) | (1,423) | |
| Hedged derivatives | 1,397 | 0 | 1,397 | 0 |
| (liabilities) | (3,441) | (0) | (3,441) | (0) |
Prior year figures are in parentheses
Fair values available as quoted market prices at all times were allocated to level 1. Fair values determined on the basis of direct or indirect observable parameters were allocated to level 2. Level 3 is based on measurement para meters that are not based upon observable market data.
Fair values of available for sale financial assets are determined on the basis of stock exchange prices (level 1) and discounted cash flows (level 3), respectively.
The fair value of derivatives with hedging relations was determined by using standard measurements made avail able to us by banks as well as by the increased support of our own treasury management system.
The fair value of contingent liabilities was measured by taking the expected and discounted payment outflows at the reporting date into consideration. The put option, agreed upon in conjunction with the acquisition of the British Vysionics Group, for the purchase of the remaining non-controlling interests in the amount of EUR 1,871 thousand was recognized at the present value of the expected exercise price. In the past quarter the expected cash outflows were revalued based on current information and discounted in consideration of the term with interest rates between 0.62 and 0.71 percent. These postings negatively affected the financial result in the amount of EUR 551 thousand. The effect on the operating result in the amount of minus EUR 103 thousand is due to the revaluation of this foreign currency liability.
The development of financial assets measured at fair value through profit and loss and allocated to level 3 is shown in the following chart:
| in thousand euros | Available for sale | Contingent liabilities |
|---|---|---|
| Balance at 1/1/2016 | 299 | 1,423 |
| Additions | 86 | 0 |
| Gains and losses recognized in operating result |
0 | -103 |
| Gains and losses recognized in financial result |
-70 | 551 |
| Balance at 31/3/2016 | 315 | 1,871 |
For the period under review no material business trans actions were performed with related parties.
The current statement given by the Executive Board and Supervisory Board pursuant to § 161 of the German Stock Corporation Act [Aktiengesetz (AktG)] regarding the German Corporate Governance Code have been made permanently available to shareholders on the JENOPTIK AG website www.jenoptik.com/investors/corporate-governance. Furthermore, the statements can also be viewed on site at JENOPTIK AG.
JENOPTIK AG and its group entities are involved in several court or arbitration proceedings. In the case that these may have any substantial influence on the Group's economic situation, these proceedings were described in the 2015 consolidated financial statements. As at March 31, 2016 no further litigation arose that could have a material effect on the financial position of the Group.
No significant events occurred after the interim reporting period ending on March 31, 2016.
To the best of our knowledge, we assure that the interim consolidated financial statements prepared in accordance with the applicable principles for the interim financial reporting give a true and fair view of the net assets, financial position and result of operations of the Group and that the interim group management report presents a fair view of the performance of the business including the operating result and the position of the Group, together with a description of the significant opportunities and risks associated with the anticipated development of the Group.
Jena, May 9, 2016
Dr. Michael Mertin Hans-Dieter Schumacher President & CEO Chief Financial Officer
June 8, 2016 Annual General Meeting of the JENOPTIK AG 2016
August 10, 2016 Publication of the interim report January to June 2016
November 10, 2016 Publication of the interim report January to September 2016
In cases of differences of opinion the German text shall prevail.
Phone +49 3641 65-2291 E-mail [email protected]
Phone +49 3641 65-2255 E-mail [email protected]
www.jenoptik.com www.twitter.com/Jenoptik_Group
You may find a digital version of this Interim Report on our internet site at http://www.jenoptik.com/investors/report-and-presenta tions.
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