News › JENOPTIK • Posi­tive deve­lo­p­ment of orders and cash flow crea­tes solid basis for future per­for­mance over the year

posi­tive start in first quarter

• Adjus­ted order intake grew by 3.6 per­cent to 211.7 mil­lion euros
• Sharp impro­ve­ment in adjus­ted free cash flow to 15.1 mil­lion euros
• Reve­nue decli­nes by 7.8 per­cent (adjus­ted) to 164.4 mil­lion euros
• Adjus­ted EBITDA mar­gin of 10.5 percent
• Suc­cessful busi­ness model – out­look posi­tive: the Exe­cu­tive Board anti­ci­pa­tes to be able to achieve the cur­rent average mar­ket expec­ta­ti­ons for reve­nue and EBITDA in 2020

The Jen­op­tik Group made a solid start in 2020. Over the first quar­ter, demand in many areas pro­ved robust despite the corona cri­sis. The pho­to­nics com­pany accor­din­gly pos­ted an increase in order intake (adjus­ted for the decon­so­li­da­tion of Hil­los GmbH) of 3.6 per­cent to around 211.7 mil­lion euros (prior year: adjus­ted 204.4 mil­lion euros / 210.4 mil­lion euros)*. VINCORION and, on an adjus­ted basis, the Light & Optics divi­sion both recor­ded signi­fi­cantly more orders than in the prior-year period. The Group’s book-to-bill ratio saw a marked increase to 1.29 (prior year: adjus­ted 1.15 / 1.14). The adjus­ted order back­log grew by more than 12.4 per­cent to 522.5 mil­lion euros (31/12/2019: adjus­ted 464.7 mil­lion euros / 466.1 mil­lion euros),

Over the first quar­ter of 2020, the corona pan­de­mic had vary­ing effects on Jenoptik’s reve­nue per­for­mance. The pan­de­mic had little or no impact on busi­ness with public-sec­tor cus­to­mers and the semi­con­duc­tor equip­ment indus­try, with both areas pos­ting growth. The Light & Pro­duc­tion divi­sion was stron­gly affec­ted by deve­lo­p­ments in the auto­mo­tive indus­try. The Jen­op­tik Group gene­ra­ted reve­nue of around 164.4 mil­lion euros. Adjus­ted for the decon­so­li­da­tion of Hil­los GmbH (prior-year reve­nue of 5.7 mil­lion euros), this is a decline in the sea­so­nally wea­k­est quar­ter of the year of 7.8 per­cent (prior year: adjus­ted 178.3 mil­lion euros / 184.0 mil­lion euros). The Spa­nish com­pany INTEROB, acqui­red in Janu­ary 2020, con­tri­bu­ted 1.8 mil­lion euros to group reve­nue over the report­ing period.

“Large parts of our busi­ness showed a robust deve­lo­p­ment in the first quar­ter. It is also encou­ra­ging to note that we are con­ti­nuing to see sta­ble demand in the semi­con­duc­tor equip­ment sec­tor that is of par­ti­cu­lar importance to us,” says Ste­fan Trae­ger, Pre­si­dent & CEO of JENOPTIK AG. “The Light & Safety divi­sion and VINCORION both even mana­ged to increase their reve­nues with public-sec­tor cus­to­mers in the first quar­ter. Tog­e­ther with a good order situa­tion and a healthy balance sheet, this is a good basis for us to emerge stron­ger from the crisis.”

On a regio­nal level, all parts of the world pos­ted decli­ning reve­nues – with the sole excep­tion of the Middle East/Africa. Asia/Pacific was affec­ted most stron­gly, where impacts ari­sing from the pan­de­mic were alre­ady very cle­arly appa­rent in the first three months, espe­ci­ally in China (16.4 mil­lion euros com­pared to 23.0 mil­lion euros in the prior year). The share of reve­nue gene­ra­ted abroad was broadly unch­an­ged at 74.2 per­cent (prior year: 73.8 percent).

Gross pro­fit of 53.9 mil­lion euros was 17.8 per­cent down on the prior year (prior year: 65.6 mil­lion euros). Due to the lower level of uti­liza­tion, the gross mar­gin was 32.8 per­cent (prior year: 35.7 per­cent). The fall in reve­nue resul­ted in an adjus­ted EBITDA of 17.3 mil­lion euros (prior year: 23.8 mil­lion euros). Adjus­t­ments include non-recur­ring effects for struc­tu­ral adjus­t­ment, site opti­miza­tion and effi­ci­ency enhance­ment mea­su­res that will take effect in the fis­cal year. The adjus­ted EBITDA mar­gin was accor­din­gly 10.5 per­cent (prior year: 12.9 per­cent). The group EBITDA came to 13.6 mil­lion euros, with an EBITDA mar­gin of 8.3 per­cent. Over the first three months of 2020, EBIT adjus­ted for non-recur­ring effects amoun­ted to 6.2 mil­lion euros (prior year: 12.8 mil­lion euros), while group EBIT came to 2.5 mil­lion euros. The adjus­ted group EBIT mar­gin was 3.8 per­cent (non-adjus­ted 1.5 per­cent / prior year 7.0 per­cent). EBIT also includes impacts ari­sing from the purchase price allo­ca­tion due to acqui­si­ti­ons of minus 1.7 mil­lion euros (prior year: minus 1.9 mil­lion euros).

Solid cash and liqui­dity situa­tion create good basis for future busi­ness performance

At the begin­ning of the year, the Exe­cu­tive Board adopted a num­ber of pre­cau­tio­nary mea­su­res to react quickly to the new situa­tion crea­ted by the corona pan­de­mic. In addi­tion to ensu­ring liqui­dity and pro­fi­ta­bi­lity, mea­su­res were adopted to secure the ope­ra­ting busi­ness inclu­ding the sup­ply chain and to opti­mize the working capi­tal. As a result, the ope­ra­ting cash flow impro­ved sub­stan­ti­ally to 26.4 mil­lion euros as of March 31, 2020 (prior year: minus 0.9 mil­lion euros). This change was essen­ti­ally due to the fact that the increase in invent­ories was more than off­set by the reduc­tion in trade receiv­a­bles. As a result of the hig­her ope­ra­ting cash flow, the free cash flow also saw an encou­ra­ging increase to 14.4 mil­lion euros (prior year: mil­lion 5.1 mil­lion euros), despite an increase in capi­tal expen­dit­ure over the report­ing period. On an adjus­ted basis, the free cash flow came to even hig­her 15.1 mil­lion euros.

In view of the cur­rent situa­tion, the Group is in a com­for­ta­ble posi­tion with short-term liquid funds of 160.0 mil­lion euros (31/12/2019: 168.7 mil­lion euros). The increase in finan­cial debt and a lower level of cash and cash equi­va­lents (pay­ment of first tran­che for INTEROB) resul­ted in net debt of 16.1 mil­lion euros as of March 31, 2020 (31/12/2019: minus 9.1 mil­lion euros), which nevert­hel­ess still pro­vi­des scope to ensure the company’s sche­du­led stra­te­gic growth.

Deve­lo­p­ment of the divi­si­ons: robust mar­gin level in Light & Optics, good busi­ness per­for­mance in Light & Safety and VINCORION, and as expec­ted, decline in reve­nue and ear­nings in Light & Production

In the first three months of 2020, the Light & Optics divi­sion gene­ra­ted reve­nue of 68.8 mil­lion euros, which, adjus­ted for the decon­so­li­da­tion of Hil­los GmbH, was 11.2 per­cent down on the prior year (prior year: adjus­ted 77.5 mil­lion euros / 83.2 mil­lion euros). Busi­ness with the semi­con­duc­tor equip­ment indus­try remained sta­ble, but the Bio­pho­to­nics and Indus­trial Solu­ti­ons units repor­ted decli­ning reve­nues. EBITDA, adjus­ted for non-recur­ring effects, came to 15.9 mil­lion euros, with an adjus­ted EBITDA mar­gin of 23.0 per­cent. Over­all, EBITDA of the divi­sion fell to 14.9 mil­lion euros (prior year: 16.6 mil­lion euros) due to unde­r­uti­liza­tion in the above-men­tio­ned units and the initia­ted struc­tu­ral adjus­t­ments and site opti­miza­ti­ons. The EBITDA mar­gin impro­ved to 21.5 per­cent (prior year: 19.8 per­cent). As of March 31, 2020, Light & Optics repor­ted an order intake worth 73.4 mil­lion euros. On an adjus­ted basis, this is a plus of 4.1 per­cent (prior year: adjus­ted 70.5 mil­lion euros / 76.5 mil­lion euros). The order back­log came to 141.4 mil­lion euros by the end of March 2020 (31/12/2019: adjus­ted 143.5 mil­lion euros / 144.9 mil­lion euros).

Due to the deve­lo­p­ments in the auto­mo­tive indus­try, the Light & Pro­duc­tion divi­sion was stron­gly impac­ted by the corona cri­sis. Despite growth in the auto­ma­tion busi­ness and the con­tri­bu­tion of 1.8 mil­lion euros made by the acqui­red entity INTEROB, reve­nue fell by 21.7 per­cent on the prior year, to 39.5 mil­lion euros (prior year: 50.4 mil­lion euros) in the first three months of 2020, due to signi­fi­cant decli­nes in the Metro­logy and Laser Pro­ces­sing units. The division’s EBITDA, adjus­ted for non-recur­ring effects for effi­ci­ency mea­su­res, came to minus 3.5 mil­lion euros in the report­ing period. In addi­tion to the initia­ted mea­su­res, pro­ject post­po­ne­ments and the tem­po­rary clo­sure of two Jen­op­tik plants in this divi­sion were pri­ma­rily respon­si­ble for the decrease in EBITDA to minus 4.5 mil­lion euros (prior year: 5.6 mil­lion euros). The division’s order intake remained rela­tively sta­ble at 61.2 mil­lion euros (prior year: 63.1 mil­lion euros). The book-to-bill ratio increased to 1.55 (prior year: 1.25). As of the end of March, the order back­log grew to 122.7 mil­lion euros (31/12/2019: 81.6 mil­lion euros).

Busi­ness with public-sec­tor cus­to­mers saw a good deve­lo­p­ment. In the first three months of 2020, the Light & Safety divi­sion gene­ra­ted reve­nue of 26.5 mil­lion euros – an increase of 8.2 per­cent (prior year: 24.5 mil­lion euros). This growth was pri­ma­rily due to strong demand for traf­fic safety solu­ti­ons in the Ame­ri­cas. It also resul­ted in impro­ved pro­fi­ta­bi­lity. EBITDA increased to 4.9 mil­lion euros (prior year: 3.7 mil­lion euros), the EBITDA mar­gin rose shar­ply to 18.6 per­cent (prior year: 15.2 per­cent). With the division’s focus on pro­ject busi­ness, the order intake is sub­ject to typi­cal fluc­tua­tions. Over the first three months, it fell to 22.3 mil­lion euros (prior year: 27.0 mil­lion euros), with the order back­log amoun­ting to 63.5 mil­lion euros at end of March (31/12/2019: 69.9 mil­lion euros).

VINCORION also per­for­med well, gene­ra­ting 28.1 mil­lion euros of reve­nue in the first months, an increase of 11.4 per­cent (prior year: 25.3 mil­lion euros), which also led to impro­ved pro­fi­ta­bi­lity. EBITDA came to 1.0 mil­lion euros, com­pared to minus 0.4 mil­lion euros in the prior year. The EBITDA mar­gin impro­ved from minus 1.6 per­cent in the prior year to 3.4 per­cent. The order intake in the period covered by the report grew signi­fi­cantly to 53.4 mil­lion euros (prior year: 43.0 mil­lion euros). The book-to-bill ratio increased to 1.9 (prior year: 1.7). In light of a very good order intake, the order back­log grew to 194.9 mil­lion euros by the end of March (31/12/2019: 169.7 mil­lion euros) and was thus con­sider­a­bly hig­her than in any of the prior-year quarters.

JENOPTIK AG gives posi­tive out­look for the year – Exe­cu­tive Board con­fi­dent of mee­ting cur­rent mar­ket expec­ta­ti­ons for 2020

“As a result of the coun­ter­me­a­su­res we have taken and in view of an expec­ted stron­ger second half-year, we anti­ci­pate to be able to meet ana­lysts’ cur­rent average mar­ket expec­ta­ti­ons for the full year 2020 – reve­nue of around 800 mil­lion euros and an EBITDA mar­gin of around 14.3 per­cent – despite corona-rela­ted impacts we see in the second quar­ter. In addi­tion, the pro­jects initia­ted for struc­tu­ral adjus­t­ment, effi­ci­ency enhance­ment and port­fo­lio manage­ment should con­tri­bute to acce­le­rate growth and improve the Group’s pro­fi­ta­bi­lity from next year at the latest. We are report­ing the asso­cia­ted non-recur­ring effects sepa­ra­tely in this fis­cal year,” says Ste­fan Traeger.

The Quar­terly State­ment is available in the “Investors/Reports and Pre­sen­ta­ti­ons” sec­tion of the Jen­op­tik web­site. The “Jen­op­tik app” can be used to view the Quar­terly Report on mobile devices run­ning iOS or Android. Images for down­load can be found in the Jen­op­tik data base at media.jenoptik.com.

*Figu­res wit­hout remark are not adjusted

About Jen­op­tik

Jen­op­tik is a glo­bally ope­ra­ting tech­no­logy group, which is active in the three pho­to­nics-based divi­si­ons Light & Optics, Light & Pro­duc­tion and Light & Safety. Opti­cal tech­no­lo­gies are the very basis of our busi­ness with the majo­rity of our pro­ducts and ser­vices being pro­vi­ded to the pho­to­nics mar­ket. Our key tar­get mar­kets pri­ma­rily include the semi­con­duc­tor equip­ment indus­try, the medi­cal tech­no­logy, auto­mo­tive and mecha­ni­cal engi­nee­ring, traf­fic, avia­tion as well as the secu­rity and defense tech­no­logy indus­tries. Jen­op­tik is lis­ted on the Frank­furt Stock Exch­ange, has more than 4,100 employees and gene­ra­ted reve­nue of approx. 855 mil­lion euros in 2019.

Cont­act

Tho­mas Fritsche
JENOPTIK AG
Head of Inves­tor Relations
+49 3641 65–2291
moc.kitponej@ehcstirf.samoht

 

Sabine Bar­ne­kow
JENOPTIK AG
Inves­tor Relations
+49 3641 65–2156
moc.kitponej@wokenrab.enibas