AI Terminal

MODULE: AI_ANALYST
Interactive Q&A, Risk Assessment, Summarization
MODULE: DATA_EXTRACT
Excel Export, XBRL Parsing, Table Digitization
MODULE: PEER_COMP
Sector Benchmarking, Sentiment Analysis
SYSTEM ACCESS LOCKED
Authenticate / Register Log In

Zumtobel Group AG

Quarterly Report Mar 7, 2017

770_10-q_2017-03-07_2192238c-5172-441a-ad52-526e947fdd5b.pdf

Quarterly Report

Open in Viewer

Opens in native device viewer

Q1 –Q3 (May 2016 – January 2017)

Report on the 3rd Quarter 2016/17 of Zumtobel Group AG

Overview of the Third Quarter 2016/17

  • >> FX-adjusted increase of 2.8% in Group revenues during the third quarter
  • >> Substantial positive effects from restructuring and cost savings measures
  • >> Adjusted EBIT rises by 82.5% to EUR 10.0 million (previous year: EUR 5.5 million)
  • >> Continued positive development of working capital and free cash flow
Key Data in EUR million Q3
2016/17
Q3
2015/16
Change in % Q1-Q3
2016/17
Q1-Q3
2015/16
Change in %
Revenues 306.1 307.9 (0.6) 973.4 1,009.9 (3.6)
Adjusted EBIT 10.0 5.5 82.5 62.0 47.8 29.9
as a % of revenues 3.3 1.8 6.4 4.7
EBIT 5.6 3.3 71.0 49.9 40.2 24.1
as a % of revenues 1.8 1.1 5.1 4.0
Net profit for the period 2.2 1.7 31.8 29.8 29.2 2.0
as a % of revenues 0.7 0.5 3.1 2.9
Cash flow from operating results 20.3 17.8 14.1 95.7 82.6 15.8
Investments 11.0 13.5 (18.2) 30.7 43.3 (29.1)
31 January
2017
30 April
2016
Change in %
2017 2016
Total assets 1,035.5 1,068.6 (3.1)
Equity 341.4 333.2 2.5
Equity ratio in % 33.0 31.2
Net debt 120.3 134.8 (10.7)
Headcount incl. contract worker (full
time equivalent)
6,615 6,761 (2.2)

Development of Business by Quarter

Adjusted EBIT

Letter to Shareholders

Dear Shareholders,

The third quarter of 2016/17 was characterised by sound operating development and important strategic steps to strengthen the competitive position of our global plant network. We set key milestones and paved the way for further steps to optimise this network by closing the facility in Usingen (Germany) as of 31 December 2016, announcing our intention to evaluate the sale of the Les Andelys plant (France) to the French industrial group Active'Invest and the decision to construct a new lighting plant in Serbia. In particular, the location in Serbia will allow the Zumtobel Group to substantially improve its competitive position and provide our customers with innovative products at optimal costs over the long-term.

Group revenues declined by 3.6% year-on-year to EUR 973.4 million in the first three quarters of 2016/17 (previous year: EUR 1,009.9 million) in an industry environment that remained challenging with high volatility. The development of revenues was influenced by substantial negative foreign exchange effects of EUR 34.6 million as well as the absence of revenues from the signage business which was sold in November 2015. After an adjustment for foreign exchange effects, Group revenues declined by 0.2% in the first three quarters. However, the Zumtobel Group nearly matched the comparable prior period revenues for the first time this year with EUR 306.1 million in the third quarter (previous year: EUR 307.9 million; minus 0.6%) and FX-adjusted growth of 2.8%.

On a very positive note: our efforts to improve cost structures were clearly visible in nearly all functional areas during the reporting period. Group EBIT adjusted for special effects rose by 29.9% from EUR 47.8 million to EUR 62.0 million in spite of the lower revenues. Both the Lighting Segment and the Components Segment clearly exceeded the prior year results. This sound development is attributable, above all, to the improved efficiency of our plants and sales organisation as well as higher earnings contributions from products introduced during the past financial year. A further achievement was the continued increase free cash flow, which was positive at EUR 40.6 million (previous year: minus EUR 10.1 million) in particular due to our strict working capital management.

Outlook: Detailed earnings guidance for the full 2016/17 financial year

We are still seeing widely different regional trends in this generally challenging and volatile industry environment. Revenue development remains weak in Australia, France, Switzerland and, above all, across the Middle East. In contrast, development is sound in the Benelux & East Europe region and in Austria, the USA and Italy. The clearly negative foreign exchange translation effects from the weak British pound and the strong USD dollar will continue to influence revenues and earnings during the fourth quarter. Based on the solid development of business in the first three quarters and the visible improvement in cost structures, the Management Board of the Zumtobel Group is issuing more specific guidance for earnings in the current financial year and now expects operating earnings (adjusted EBIT) of approx. EUR 70 million. The former earnings guidance (adjusted EBIT) indicated a slight improvement over the previous year (previous year: EUR 58.7 million).

Ulrich Schumacher Chief Executive Officer (CEO)

Ulrich Schumacher

The Zumtobel Group Share

Based on an unchanged number of 43.5 million common shares outstanding, the market capitalisation of Zumtobel Group AG totalled EUR 676 million at the end of January 2017. There have been no major changes in the shareholder structure since the end of the 2015/16 financial year. The Zumtobel family has remained the stable core shareholder of Zumtobel Group AG since the initial public offering with a stake of slightly over 35%. As of 31 January 2017, the institutional investors FMR LLC, Lazard Freres Gestion SAS and Erste Asset Management GmbH each held an investment of over 4%. The remainder of the shares is held predominately by other institutional investors. In the ATX, the leading index of the largest listed companies in Austria, the Zumtobel Group share ranked 21st based on market capitalisation and 14th based on trading volume as of 31 January 2017. The average daily turnover on the Vienna Stock Exchange totalled 316,225 during the reporting period compared with 173,053 in the previous year (double-count, as published by the Vienna Stock Exchange). The company held 353,343 treasury shares as of 31 January 2017.

Development of the Zumtobel Group Share

Key Data on the Zumtobel Group Share Q1-Q3 2016/17

Closing price at 29.04.2016 EUR 11.370 Currency EUR
Closing price at 31.01.2017 EUR 15.540 ISIN AT0000837307
Performance Q1-Q3 2016/17 36.7% Ticker symbol Vienna Stock Exchange (XETRA) ZAG
Market capitalisation at 31.01.2017 EUR 676 mill. Market segment Prime Market
Share price - high at 26.07.2016 EUR 18.235 Reuters symbol ZUMV.VI
Share price - low at 29.09.2016 EUR 9.900 Bloomberg symbol ZAG AV
Ø Turnover per day (shares) 316,225 Number of issued shares 43,500,000

Group Management Report

Significant Events since 30 April 2016

The 40th annual general meeting on 22 July 2016 authorised the payment of a EUR 0.20 dividend per share for the 2015/16 financial year. This dividend was distributed to shareholders on 2 August 2016.

The intensive negotiations between company representatives, the Employees' Council and the trade union IG Metall, over the plant in Usingen were successfully concluded on 26 October 2016. The agreement reached by the negotiating parties covered a social plan as well as the shutdown of operations as of 31 December 2016.

On 12 December 2016 the Zumtobel Group announced the evaluation of a long-term strategic partnership with Active'Invest for the plant in Les Andelys (France). This partnership with Active'Invest would transfer the Les Andelys plant to this French industrial group, although the Zumtobel Group would retain a 10% minority interest in the new company.

An arbitration court issued a decision on 27 December 2016 in the proceedings initiated by LLEDÓ ILUMINACIÓN S.A. against Zumtobel Lighting GmbH, which involved the termination of an official distributor contract from 2008. As expected, the arbitration court awarded the former Spanish distributor Lledó compensation of EUR 0.9 million for the premature termination of the contract by Zumtobel. However, the court also awarded Lledó a settlement payment of EUR 6.2 million, which is based on an extremely questionable legal basis and was therefore not expected.

On 27 January 2017 the Supervisory Board of the Zumtobel Group approved the construction of a new lighting plant in Serbia. The primary role of this lighting plant will be to handle the additional volumes planned for the coming years at optimal costs. The construction costs for the new plant will amount to a maximum of EUR 30 million. Construction will be carried out in two phases over the next two and one-half years.

Dividend of EUR 0.20 per share for 2015/16

Usingen plant closed as of 31.12.2016

Zumtobel Group considers sale of Les Andelys plant

Arbitration court awards Lledó compensation and settlement payment

New lighting production plant in Serbia

No other significant events occurred after the balance sheet date on 30 April 2016.

Development of revenues in the first three quarters of 2016/17

  • >> Group revenues decline by 3.6% (FX-adjusted: minus 0.2%)
  • >> LED- share of Group revenues rises to 72.9% (previous year: 62.9%)
  • >> FX-adjusted increase of 1.3% in Lighting Segment
  • >> Revenues in the Components Segment negatively affected by sale of signage activities (FX-adjusted: minus 6.8%)

Group revenues declined by 3.6% to EUR 973.4 million in the first nine months of 2016/17 (1 May 2016 to 31 January 2017) in an industry environment that remained challenging with high volatility (previous year: EUR 1,009.9 million). Revenue growth was slowed by negative foreign exchange effects of EUR 34.6 million as well as the absence of revenues from the signage business which was sold in November 2015. The negative foreign exchange effects resulted, above all, from the increase in the euro versus the British pound (GBP). After an adjustment for these effects, the revenue decline equalled 0.2% for the reporting period. However, the Zumtobel Group nearly matched the comparable prior period revenues for the first time this year with EUR 306.1 million in the third quarter (previous year: EUR 307.9 million; minus 0.6%) and FXadjusted growth of 2.8%. The dynamic growth with LED products remains unbroken: revenues from the sale of LED products increased by 11.7% year-on-year to EUR 709.5 million (previous year: EUR 634.9 million) and the LED share of Group revenues rose to 72.9% within 12 months (previous year: 62.9%).

FX-adjusted decline of 0.2% in Group revenues

Q3 Q3 Change in % Q1-Q3 Q1-Q3 Change in % FX adjusted
Segment development in EUR million 2016/17 2015/16 2016/17 2015/16 in %
Lighting Segment 232.4 231.6 0.3 747.0 762.7 (2.1) 1.3
Components Segment 91.1 96.3 (5.4) 281.8 311.8 (9.6) (6.8)
Reconciliation (17.4) (20.0) (13.0) (55.4) (64.6) (14.2)
Zumtobel Group 306.1 307.9 (0.6) 973.4 1,009.9 (3.6) (0.2)

FX-adjusted revenue growth of 1.3% in Lighting Segment

Business in the Lighting Segment was influenced by substantial regional differences, while the industry development has fallen below original expectations. Segment revenues declined by 2.1% to EUR 747.0 million (previous year: EUR 762.7 million) in this softer environment. However, revenues in the Lighting Segment rose by 1.3% after an adjustment for negative foreign exchange effects.

Sale of signage activities slows growth in Components Segment

The decline in the Components Segment was more pronounced than the Lighting Segment at minus 9.6% (FX-adjusted: minus 6.8%) for the first nine months. It resulted, in particular, from the revenues lost due to the sale of the signage activities in November 2015 and from the continuing sharp drop in the sale of conventional electronic ballasts. However, business development in this segment was supported by continuing sound growth in the demand for intelligent, networkable LED components and Tridonic system solutions. These products were, for the most part, introduced in recent quarters – they provide customers with clear added value and differentiate the Zumtobel Group from the competition. They also demonstrate the increasingly successful results of the high investments in Tridonic's innovative strength during earlier years.

Distribution of regional revenues

Q3 2016/17 Q1-Q3 2016/17
Revenues in
EUR million
Change in % Revenues in
EUR million
Change in % in % of Group
D/A/CH 86.8 1.3 288.9 (2.6) 29.7
Northern Europe 80.1 (4.3) 252.3 (6.9) 25.9
Benelux & Eastern Europe 40.6 16.2 125.7 10.1 12.9
Southern Europe 43.7 (2.2) 138.1 (2.1) 14.2
Asia & Pacific 29.3 (6.9) 94.2 (10.5) 9.7
Middle East & Africa 15.4 (14.8) 44.3 (18.6) 4.6
Americas 10.2 9.8 29.8 8.5 3.1
Total 306.1 (0.6) 973.4 (3.6) 100.0

Very different regional trends

The reporting period was characterised by widely different regional developments in a generally challenging industry environment, with individual trends that were generally unchanged during the past three quarters. The D/A/CH region, the strongest market in the Zumtobel Group, recorded a 2.6% decline (FX-adjusted: minus 2.2%) in revenues to EUR 288.9 million. It resulted primarily from substantially weaker demand on the Swiss market, in particular for office and industrial applications. Revenues in Northern Europe fell by 6.9% to EUR 252.3 million, while this development was influenced by strong negative foreign exchange effects from the British pound. An adjustment for these foreign exchange effects results in an increase of 5.0% in regional revenues. In Great Britain revenue growth has remained stable since the BREXIT referendum. The Benelux & Eastern Europe region also continued the sound prior year trend during the reporting period, with an increase of 10.1% in revenues to EUR 125.7 million (FX-adjusted: 11.2%). The Southern European region consists primarily of Italy and France. Italy recorded sound revenue growth in the first nine months, but business development in France remains disappointing. Revenues in this region fell by 2.1% to EUR 138.1 million. In the Asia & Pacific region, continued weakness on the Australian market led to a 10.5% decline in revenues (FX-adjusted: minus 10.5%). Business development in the Middle East & Africa region was influenced by the increasing tensions in the political and economic environment of several Middle East countries during recent quarters (e. g. Saudi Arabia).). Revenues in this region fell by 18.6% (FX-adjusted: minus 18.5%). The America region reported an increase of 8.5% in revenues (FX-adjusted: 8.2%) to EUR 29.8 million, which was supported by measures implemented in the previous year.

Development of earnings in the first three quarters of 2016/17

  • >> Adjusted Group EBIT rises by 29.9% to EUR 62.0 million (previous year: EUR 47.8 million)
  • >> Significant efficiency improvement in production
  • >> Selling expenses below previous year
  • >> Negative special effects from transformation process
  • >> Net profit totals EUR 29.8 million (previous year: EUR 29.2 million)
Income statement in EUR million Q3
2016/17
Q3
2015/16
Change in % Q1-Q3
2016/17
Q1-Q3
2015/16
Change in %
Revenues 306.1 307.9 (0.6) 973.4 1,009.9 (3.6)
Cost of goods sold (205.5) (212.3) (3.2) (641.3) (686.9) (6.6)
Gross profit 100.6 95.6 5.2 332.1 323.0 2.8
as a % of revenues 32.9 31.0 34.1 32.0
SG&A expenses adjusted for special effects (90.6) (90.1) 0.5 (270.1) (275.2) (1.9)
Adjusted EBIT 10.0 5.5 82.5 62.0 47.8 29.9
as a % of revenues 3.3 1.8 6.4 4.7
Special effects (4.4) (2.2) 99.7 (12.1) (7.6) 60.5
EBIT 5.6 3.3 71.0 49.9 40.2 24.1
as a % of revenues 1.8 1.1 5.1 4.0
Financial results (6.2) (1.0) <(100) (14.5) (2.2) <(100)
Profit/loss before tax (0.6) 2.2 <(100) 35.4 38.0 (6.8)
Income taxes 0.1 (0.6) >100 (8.3) (8.8) (5.7)
Net profit from discontinued operations 2.7 0.0 >100 2.7 0.0 >100
Net profit for the period 2.2 1.7 31.8 29.8 29.2 2.0
Earnings per share (in EUR) 0.05 0.04 31.8 0.69 0.68 2.0

Note: EBITDA (plus depreciation and amortisation) amounted to EUR 95.4 million in the first three quarters of 2016/17.

Group EBIT adjusted for special effects rose from EUR 47.8 million to EUR 62.0 million, or by 29.9% yearon-year, despite the decline in revenues. Consequently, the return on sales improved from 4.7% to 6.4%. Both segments clearly exceeded the prior year results in the first three quarters. The Lighting Segment, which was also the focus of restructuring efforts in the previous year, reported a 19.0% improvement in adjusted EBIT to EUR 46.4 million (previous year: EUR 39.0 million), while the Components Segment recorded an 8.6% increase to EUR 30.8 million (previous year: EUR 28.4 million).

The gross profit margin (after development costs) for the Zumtobel Group rose to 34.1% in the reporting period despite the continuing pressure on prices (previous year: 32.0%). This increase resulted, above all, from efficiency improvements in the plants and the better cost structure of products introduced during the previous financial year. Development costs included in the cost of goods sold amounted to EUR 57.5 million in the first three quarters of 2016/17 and were slightly lower than the high prior year level (previous year: EUR 62.8 million). This represents the first positive effects from the central bundling of R&D activities.

Adjusted Group EBIT rises by 29.9%

Significant efficiency improvements in production

Selling expenses below previous year

Selling expenses declined from EUR 243.1 million to EUR 240.1 million in the first three quarters of 2016/17 despite wage and salary increases mandated by collective negotiations. This is a consequence of the extensive restructuring and cost savings measures implemented in recent quarters. Administrative expenses were slightly higher than the previous year at EUR 38.1 million (previous year: EUR 37.2 million). Other operating results, excluding special effects, amounted to EUR 8.1 million (previous year: EUR 5.1 million) and included, among others, license income from the LED business and government grants.

Negative special effects from transformation process

Negative special effects of EUR 12.1 million (previous year: EUR 7.6 million) were recorded during the first nine months of 2016/17. These effects are related, above all, to the shutdown of the plant in Usingen (Germany), the ongoing restructuring of the global sales organisation and payments resulting from the arbitration decision in the proceedings initiated by LLEDÓ ILUMINACIÓN S.A. against Zumtobel Lighting GmbH (EUR 5.9 million) as well as positive results of EUR 2.5 million from the sale of the former plant location in Ennenda (Switzerland).

Adjusted EBIT in EUR million Q3
2016/17
Q3
2015/16
Change in % Q1-Q3
2016/17
Q1-Q3
2015/16
Change in %
Reported EBIT 5.6 3.3 71.0 49.9 40.2 24.1
thereof special effects (4.4) (2.2) 99.7 (12.1) (7.6) 60.5
Adjusted EBIT 10.0 5.5 82.5 62.0 47.8 29.9
as a % of revenues 3.3 1.8 6.4 4.7

Financial results below prior year

Financial results declined by EUR 12.3 million year-on-year to minus EUR 14.5 million (previous year: minus EUR 2.2 million). Interest expense is attributable primarily to the current credit agreement and to a finance lease. Other financial income and expenses totalled minus EUR 8.7 million (previous year: plus EUR 4.5 million). The substantial fluctuations in the fair value measurement of financial instruments reflected the high volatility on the foreign exchange market, above all as a result of the BREXIT referendum. The negative effect in comparison with the previous year resulted primarily from the realisation of foreign exchanges transaction with a previously positive market value.

Financial result in EUR million Q3
2016/17
Q3
2015/16
Change in % Q1-Q3
2016/17
Q1-Q3
2015/16
Change in %
Interest expense (2.0) (2.4) (15.6) (5.7) (7.0) (19.1)
Interest income 0.1 0.2 (38.2) 0.3 0.4 (29.6)
Net financing costs (1.9) (2.2) 13.5 (5.4) (6.6) 18.5
Other financial income and expenses (4.1) 1.3 <(100) (8.7) 4.5 <(100)
Result from companies accounted for at
equity
(0.2) (0.2) (4.4) (0.3) (0.1) <(100)
Financial results (6.2) (1.0) <(100) (14.5) (2.2) <(100)

Net profit totals EUR 29.8 million

Profit before tax amounted to EUR 35.4 million for the reporting period (previous year: EUR 38.0 million), and income taxes totalled EUR 8.3 million (previous year: EUR 8.8 million). The results of discontinued operations equalled EUR 2.7 million and reflected the release of a provision from the discontinuation of the event lighting business (Space Cannon VH SRL) in the second quarter of 2010/11. Net profit for the first three quarters of 2016/17 was therefore slightly higher than the previous year at EUR 29.8 million (previous year: EUR 29.2 million) in spite of higher negative special effects and lower financial results. Earnings per share for the shareholders of Zumtobel Group AG (basic EPS based on 43.1 million shares) equalled EUR 0.69 (previous year: EUR 0.68).

Cash flow and asset position

  • >> Further positive development of working capital
  • >> Substantial improvement in free cash flow to EUR 40.6 million (previous year: minus EUR 10.1 million)
  • >> Continued solid balance sheet structure

Working capital totalled EUR 240.0 million as of 31 January 2017 and was EUR 16.5 million lower than on 31 January 2016. That represents a year-on-year decline from 18.9% to 18.2% of rolling 12-month revenues. The seasonal increase in working capital was substantially lower than the previous year, above all due to strict receivables and payables management. Cash outflows from restructuring provisions created in connection with the plant shutdown in Usingen (Germany) are reported as part of the position "current provisions". Cash flow from operating activities rose substantially by EUR 42.9 million to EUR 63.2 million during the reporting period (previous year: plus EUR 20.3 million).

Positive development of working capital

Working Capital in % of rolling 12-month revenues

Investments in non-current assets for various production facilities were substantially lower during the first three quarters of 2016/17 at EUR 30.7 million (previous year: EUR 43.3 million). These expenditures consisted mainly of tools for new products, expansion and maintenance investments as well as capitalised R&D costs (EUR 10.0 million). The positive effect reported under "proceeds from the sale of non-current assets" resulted from the sale of the plant location in Ennenda (Switzerland) following the termination of production in 2014/15. The improvement in cash flow from operating activities and the decline in investments led to an improvement in free cash flow, which rose by EUR 50.7 million to EUR 40.6 million in the first three quarters of 2016/17 (previous year: minus EUR 10.1 million).

Free cash flow rises to EUR 40.6 million

Balance sheet data in EUR million 31 January 2017 30 April 2016
Total assets 1,035.5 1,068.6
Net debt 120.3 134.8
Equity 341.4 333.2
Equity ratio in % 33.0 31.2
Gearing in % 35.2 40.5
Investments 30.7 58.4
Working capital 240.0 231.2
As a % of rolling 12 month revenues 18.2 17.0

Continued solid balance sheet structure

The quality of the balance sheet structure remains nearly unchanged. The equity ratio rose slightly from 31.2% on 30 April 2016 to 33.0% as of 31 January 2017. Net debt declined EUR 14.5 million below the level on 30 April 2016 to EUR 120.3 million (31 January 2016: EUR 186.4 million). This reduction contrasted the normal seasonal pattern and was based on the sound development of cash flow. Accordingly, gearing – the ratio of net debt to equity – improved from 40.5% to 35.2%.

Outlook: Detailed earnings guidance for the full 2016/17 financial year

We are still seeing widely different regional trends in this generally challenging and volatile industry environment. Revenue development remains weak in Australia, France, Switzerland and, above all, across the Middle East. In contrast, development is sound in the Benelux & East Europe region and in Austria, the USA and Italy. The clearly negative foreign exchange translation effects from the weak British pound and the strong USD dollar will continue to influence revenues and earnings during the fourth quarter. Based on the solid development of business in the first three quarters and the visible improvement in cost structures, the Management Board of the Zumtobel Group is issuing more specific guidance for earnings in the current financial year and now expects operating earnings (adjusted EBIT) of approx. EUR 70 million. The former earnings guidance (adjusted EBIT) indicated a slight improvement over the previous year (previous year: EUR 58.7 million).

Dornbirn, 7 March 2017

Ulrich Schumacher Karin Sonnenmoser Alfred Felder

Chief Executive Officer (CEO) Chief Financial Officer (CFO) Chief Operating Officer (COO)

Zumtobel Group AG has adjusted the scope of the interim reports due to the changed requirements of the "Prime Market Rules" of the Vienna Stock Exchange for first and third quarter interim reporting. The adjustment particularly relates to the notes to the consolidated financial statements as required by IAS 34. Financial information presented in the interim report for the first three quarters of 2016/17 is fundamentally based on the same accounting and valuation methods underlying the consolidated financial statements of the Zumtobel Group AG for the 2015/16 financial year.

Income Statement

in TEUR Q3
2016/17
Q3
2015/16
Change
in %
Q1-Q3
2016/17
Q1-Q3
2015/16
Change
in %
Revenues 306,112 307,911 (0.6) 973,379 1,009,902 (3.6)
Cost of goods sold (205,533) (212,307) (3.2) (641,270) (686,920) (6.6)
Gross profit 100,579 95,604 5.2 332,109 322,982 2.8
as a % of revenues 32.9 31.0 34.1 32.0
Selling expenses (81,925) (79,357) 3.2 (240,080) (243,097) (1.2)
Administrative expenses (11,409) (12,243) (6.8) (38,113) (37,185) 2.5
Other operating results (1,638) (725) <(100) (4,012) (2,482) 61.6
thereof special effects (4,413) (2,210) 99.7 (12,140) (7,563) 60.5
Operating profit 5,607 3,279 71.0 49,904 40,218 24.1
as a % of revenues 1.8 1.1 5.1 4.0
Interest expense (1,986) (2,352) (15.6) (5,696) (7,040) (19.1)
Interest income 118 191 (38.2) 282 400 (29.6)
Other financial income and expenses (4,121) 1,317 <(100) (8,747) 4,485 <(100)
Result from companies accounted for at-equity (194) (186) 4.3 (310) (55) <(100)
Financial results (6,183) (1,030) <(100) (14,471) (2,210) <(100)
as a % of revenues (2.0) (0.3) (1.5) (0.2)
Profit/loss before tax (576) 2,249 <(100) 35,433 38,008 (6.8)
Income taxes 132 (566) >100 (8,317) (8,817) (5.7)
Net profit/loss from continuing operations (444) 1,683 <(100) 27,116 29,191 (7.1)
Net profit from discontinued operations 2,662 0 2,662 0
Net profit for the period 2,218 1,683 31.8 29,778 29,191 2.0
as a % of revenues 0.7 0.5 3.1 2.9
thereof due to non-controlling interests (41) 115 <(100) (42) 280 <(100)
thereof due to shareholders of the parent company 2,259 1,568 44.1 29,820 28,911 3.1
Average number of shares outstanding – basic (in 1,000 pcs.) 43,147 43,146 43,147 43,146
Average diluting effect (stock options) (in 1,000 pcs.) 0 0 0 0
Average number of shares outstanding – diluted (in 1,000 pcs.) 43,147 43,146 43,147 43,146
Earnings per share (in EUR)
Basic earnings per share 0.05 0.04 0.69 0.68
Diluted earnings per share 0.05 0.04 0.69 0.68
Earnings per share from continuing operations (in EUR)
Basic earnings per share (0.01) 0.04 0.63 0.68
Diluted earnings per share (0.01) 0.04 0.63 0.68
Earnings per share from discontinued operations (in EUR)
Basic earnings per share 0.06 0.00 0.06 0.00
Diluted earnings per share 0.06 0.00 0.06 0.00

State of Comprehensive Income

in TEUR Q3
2016/17
Q3
2015/16
Change
in %
Q1-Q3
2016/17
Q1-Q3
2015/16
Change
in %
Net profit for the period 2,218 1,683 31.8 29,778 29,191 2.0
Actuarial gain/loss 0 0 (20,672) 0
Deferred taxes due to actuarial loss 0 0 1,890 0
Total of items that will not be reclassified ("recycled") subsequently to the
income statement
0 0 (18,782) 0
Currency differences (1,427) 3,917 <(100) 11,449 (2,481) >100
Currency differences arising from loans 2,665 (4,003) >100 (6,397) (3,178) <(100)
Hedge accounting 425 103 >100 1,026 564 82.1
Deferred taxes due to hedge accounting (106) (26) <(100) (257) (137) 87.5
Total of items that will be reclassified ("recycled") subsequently to the income
statement
1,557 (9) >100 5,821 (5,232) >100
Subtotal other comprehensive income 1,557 (9) >100 (12,961) (5,232) <(100)
thereof due to non-controlling interests 47 18 >100 144 61 >100
thereof due to shareholders of the parent company 1,510 (27) >100 (13,105) (5,293) <(100)
Total comprehensive income 3,775 1,674 >100 16,817 23,959 (29.8)
thereof due to non-controlling interests 6 134 (95.4) 102 342 (70.0)
thereof due to shareholders of the parent company 3,769 1,540 >100 16,715 23,617 (29.2)

Balance Sheet

in TEUR 31 January 2017 in % 30 April 2016 in %
Goodwill 198,378 19.2 209,090 19.6
Other intangible assets 54,453 5.3 58,353 5.5
Property, plant and equipment 206,892 20.0 223,808 20.9
Financial assets accounted for at equity 1,924 0.2 2,234 0.2
Financial assets 1,277 0.1 1,203 0.1
Other assets 4,710 0.5 4,434 0.4
Deferred taxes 43,623 4.2 44,883 4.2
Non-current assets 511,257 49.4 544,005 50.9
Inventories 209,520 20.2 187,437 17.5
Trade receivables 189,171 18.3 220,869 20.7
Financial assets 288 0.0 2,309 0.2
Other assets 36,845 3.6 32,633 3.1
Liquid funds 88,415 8.5 81,394 7.6
Current assets 524,239 50.6 524,642 49.1
ASSETS 1,035,496 100.0 1,068,647 100.0
Share capital 108,750 10.5 108,750 10.2
Additional paid-in capital 335,316 32.4 335,316 31.4
Reserves (138,159) (13.3) (127,161) (11.9)
Net profit/loss for the period 29,820 2.9 11,367 1.1
Capital attributed to shareholders of the parent company 335,727 32.5 328,272 30.8
Capital attributed to non-controlling interests 5,707 0.5 4,973 0.4
Equity 341,434 33.0 333,245 31.2
Provisions for pensions 92,266 8.9 79,740 7.5
Provisions for severance compensation 53,936 5.2 48,717 4.6
Provisions for other employee benefits 11,541 1.1 11,527 1.1
Other provisions 636 0.1 744 0.1
Borrowings 194,983 18.8 209,438 19.5
Other liabilities 4,056 0.4 12,137 1.1
Deferred taxes 1,770 0.2 1,624 0.2
Non-current liabilities 359,188 34.7 363,927 34.1
Provisions for taxes 22,846 2.2 21,182 2.0
Other provisions 37,760 3.6 54,707 5.1
Borrowings 13,077 1.3 6,758 0.6
Trade payables 138,256 13.4 147,062 13.7
Other liabilities 122,935 11.9 141,766 13.3
Current liabilities 334,874 32.3 371,475 34.7
EQUITY AND LIABILITIES 1,035,496 100.0 1,068,647 100.0

Cash Flow Statement

in TEUR Q1-Q3
2016/17
Q1-Q3
2015/16
Profit/loss before tax 35,433 38,008
Depreciation and amortisation 45,515 46,728
Gain/loss from disposal of fixed assets (2,397) (4,300)
Interest income/ Interest expense 5,450 6,676
Other financial income and expenses 9,021 (4,465)
Results from discontinued operations 2,662 0
Cash flow from operating results 95,684 82,647
Inventories (25,111) (14,867)
Trade receivables 31,546 16,047
Trade payables (6,768) (34,517)
Prepayments received (10,293) 2,826
Change in working capital (10,626) (30,511)
Non-current provisions (3,572) (7,543)
Current provisions (16,736) 866
Other current and non-current assets and liabilities 2,107 (23,127)
Change in other operating items (18,201) (29,804)
Taxes paid (3,657) (2,024)
Cash flow from operating activities 63,200 20,308
Proceeds from the sale of non-current assets 4,451 6,532
Capital expenditures on non-current assets (30,702) (43,286)
Change in non-current and current financial assets 3,687 3,182
Change in liquid funds from changes in the consolidation range 0 (280)
Assets/Liabilities held for Sale 0 3,494
Cash flow from investing activities (22,564) (30,358)
FREE CASH FLOW 40,636 (10,050)
Change in net borrowings (26,190) 55,957
thereof restricted cash (76) (3)
Loss absorption for non-controlling interests (631) (1,366)
Capital increases 631 733
Dividends (8,629) (9,866)
Interest paid (5,640) (6,858)
Interest received 282 400
Cash flow from financing activities (40,177) 39,000
Effects of exchange rate changes on cash and cash equivalents (105) (2,638)
CHANGE IN CASH AND CASH EQUIVALENTS 354 26,312
Cash and cash equivalents at the beginning of the period 75,305 43,150
Cash and cash equivalents at the end of the period 75,659 69,462
Change absolute 354 26,312

Statement of Changes in Equity

Q1 –Q32016/17

Attributed to shareholders of the parent company
in TEUR Share
capital
Additional
paid-in
capital
Other
Reserves
Currency
reserve
Hedge
accounting
Reserve for
stock
options
Reserve
IAS 19
Net
profit/loss
for the
period
Total Non
controlling
interests
Total
equity
30 April 2016 108,750 335,316 (636) (23,167) (2,046) 19,479 (120,791) 11,367 328,272 4,973 333,245
+/- Additions to reserves 0 0 11,367 0 0 0 0 (11,367) 0 0 0
+/- Total comprehensive
income 0 0 0 4,908 769 0 (18,782) 29,820 16,715 102 16,817
+/- Capital increases 0 0 0 0 0 0 0 0 0 631 631
+/- Dividends 0 0 (8,629) 0 0 0 0 0 (8,629) 0 (8,629)
+/- Loss absorption for
non-controlling interests 0 0 (631) 0 0 0 0 0 (631) 0 (631)
31 January 2017 108,750 335,316 1,471 (18,259) (1,277) 19,479 (139,573) 29,820 335,727 5,707 341,434

Q1 –Q32015/16

Attributed to shareholders of the parent company
in TEUR Share
capital
Additional
paid-in
capital
Other
Reserves
Currency
reserve
Hedge
accounting
Reserve for
stock
options
Reserve
IAS 19
Net
profit/loss
for the
period
Total Non
controlling
interests
Total
equity
30 April 2015 108,750 335,316 (2,013) (9,782) (2,814) 19,479 (142,718) 12,231 318,449 4,152 322,601
+/- Additions to reserves 0 0 12,231 0 0 0 0 (12,231) 0 0 0
+/- Total comprehensive
income 0 0 0 (5,718) 426 0 0 28,911 23,619 342 23,961
+/- Capital increases 0 0 0 0 0 0 0 0 0 733 733
+/- Dividends 0 0 (9,492) 0 0 0 0 0 (9,492) (396) (9,888)
+/- Loss absorption for
non-controlling interests 0 0 (1,366) 0 0 0 0 0 (1,366) 0 (1,366)
31 January 2016 108,750 335,316 (640) (15,500) (2,388) 19,479 (142,718) 28,911 331,210 4,831 336,041

The balance sheet position "reserves" comprises other reserves as well as the currency reserve, the reserve for hedge accounting, the reserve for stock options and the IAS 19 reserve for "employee benefits".

Service

Financial Terms

Adjusted EBIT EBIT adjusted for special effects
Adjusted EBIT margin = Adjusted EBIT as a percentage of revenues
CAPEX Capital expenditure
Debt coverage ratio Net debt divided by EBITDA
EBIT Earnings before interest and taxes
EBITDA Earnings before interest, taxes, depreciation and amortisation
Equity ratio = Equity as a percentage of assets
Gearing = Net debt as a percentage of equity
Net debt = Non-current borrowings + current borrowings - liquid funds - current financial
receivables from associated companies
SG&A Selling expenses, administration expenses and other operating results
WACC Weighted average cost of capital (debt and equity)
Working capital = Inventories + trade receivables - trade payables - prepayments received

Financial Calendar

Annual Results 2016/17 23 June 2017 Record Date Annual General Meeting 11 July 2017 41st Annual General Meeting 21 July 2017 Ex-Dividend Day 31 July 2017 Record Date Dividend 01 August 2017 Dividend Payout Day 02 August 2017 Report on the First Quarter 2017/18 (1 May 2017 – 31 July 2017) 05 September 2017 Report on the First Half-year 2017/18 (1 May 2017 – 31 October 2017) 05 December 2017 Report on the First Three Quarters 2017/18 (1 May 2017 – 31 January 2018) 06 March 2018

Contact Information

Harald Albrecht Simone Deitmer VP Investor Relations Head of Corporate Communications Telephone +43 (0)5572 509-1125 Telephon +43 (0)5572 509-575 E-Mail [email protected] E-Mail [email protected]

Investor Relations Relations Press / Corporate Communication Corporate Communication Communication

Financial Reports

Our financial reports are available in English and German for download under: http://www.zumtobelgroup.com.

More Information

on Zumtobel Group AG and our brands can be found on the Internet under:

www.zumtobelgroup.com www.zumtobel.com www.thornlighting.com www.tridonic.com www.acdclighting.co.uk

Imprint

Publisher: Zumtobel Group AG, Investor Relations, Harald Albrecht Coordination Financials: Jan Güstemeyer Translation: Donna Schiller-Margolis Copyright: Zumtobel Group AG 2017 Produced in-house with FIRE.sys

Disclaimer

This quarterly financial report includes statements on future developments, which are based on information available at the present time and involve risks and uncertainties that could cause the results realised at a later date to vary from these forward-looking statements. These statements on future developments are not to be under-stood as guarantees. On the contrary, future developments and results are dependent on a wide range of factors and connected with various risks and incalculable events. Moreover, they are based on assumptions that may prove to be incorrect. Included here, for example, are unforeseeable changes in the political, economic and business environment, especially in the regions where the Zumtobel Group operates, as well as the competitive situation, interest rates and foreign exchange rates, technological developments and other risks and incalculable events. Other risks may arise as a result of price developments, unforeseeable events in the operating environments of acquired companies or Group companies as well as ongoing cost optimisation programmes. The Zumtobel Group does not plan to update these forward-looking statements. This interim financial report is also presented in English, but only the German text is binding.

Talk to a Data Expert

Have a question? We'll get back to you promptly.