News › JENOPTIK AG • sus­tai­ned good demand from the semi­con­duc­tor equip­ment indus­try and the public sec­tor in first half-year

  • Group order intake down on prior year; order back­log slightly up
  • Adjus­ted reve­nue decre­a­sed by 11.9 per­cent to 329.0 mil­lion euros
  • Sharp impro­ve­ment in second-quar­ter pro­fi­ta­bi­lity (adjus­ted EBITDA mar­gin up from 10.5% in Q1 to 15.6% in Q2)
  • Adjus­ted free cash flow up to 17.8 mil­lion euros
  • More pre­cise out­look for 2020: reve­nue of 770 to 790 mil­lion euros (without TRIOPTICS) expec­ted, with adjus­ted EBITDA mar­gin of bet­ween 14.5 and 15.0 per­cent

 

From Janu­ary through early March busi­ness per­for­mance was in line with expec­ta­ti­ons, but clear impacts of the corona pan­de­mic and incre­a­sing uncer­tainty wit­hin the auto­mo­tive indus­try became appa­rent from late March on. These impacts impe­ded Jenoptik’s busi­ness per­for­mance in this sec­tor over the second quar­ter. Over­all, demand at group level decli­ned signi­fi­cantly in the six-month period, in part due to pro­ject post­po­ne­ments and can­cel­la­ti­ons. The order intake decre­a­sed to 333.9 mil­lion euros (prior year: adjus­ted 381.6 mil­lion euros). Due to the acqui­si­tion of INTEROB, the order back­log grew slightly to 478.0 mil­lion euros (31/12/2019: adjus­ted 464.7 mil­lion euros).

The corona pan­de­mic had vary­ing effects on the deve­lo­p­ment of reve­nue of Jenoptik’s divi­si­ons. The pan­de­mic had little to no impact on busi­ness with public-sec­tor cus­to­mers and the semi­con­duc­tor equip­ment indus­try, which actually pos­ted growth. By con­trast, the Light & Pro­duc­tion divi­sion was stron­gly affec­ted by deve­lo­p­ments in the auto­mo­tive indus­try. Over the first six mon­ths of 2020, the Jen­op­tik Group gene­ra­ted reve­nue of 329.0 mil­lion euros (prior year: adjus­ted 373.4 mil­lion euros). The Spa­nish com­pany INTEROB, acqui­red in Febru­ary 2020, con­tri­bu­ted 5.3 mil­lion euros to group reve­nue over the repor­ting period.

Mea­su­res taken to limit the impact of the COVID-19 pan­de­mic, such as short-time working, had a posi­tive effect on pro­fi­ta­bi­lity in the second quar­ter. Adjus­ted EBITDA rose appre­cia­bly from 17.3 mil­lion euros in the first quar­ter to 24.9 mil­lion euros in the second quar­ter. For the full repor­ting period, adjus­ted EBITDA fell to 42.2 mil­lion euros as a result of the drop in reve­nue, and was thus 22.3 per­cent down on the com­pa­ra­ble prior-year figure (prior year: 54.3 mil­lion euros). The adjus­ted EBITDA mar­gin accord­in­gly fell to 12.8 per­cent (prior year: 14.5 per­cent). As we already infor­med, the figu­res include effects ari­sing from struc­tu­ral and port­fo­lio mea­su­res amoun­ting to a total of minus 4.4 mil­lion euros (prior year: minus 0.3 mil­lion euros). The mea­su­res include effects of minus 0.8 mil­lion euros for rest­ruc­tu­ring and site opti­miz­a­tion, minus 2.4 mil­lion euros for cost-cut­ting pro­grams, and minus 1.1 mil­lion euros for M+A acti­vi­ties.

“After a solid start to the year, the second quar­ter has seen a wea­ker order situa­tion, as we expec­ted. Howe­ver, we are con­fi­dent of achie­ving impro­ved busi­ness per­for­mance in the second half-year,” says Ste­fan Tra­e­ger, Pre­si­dent & CEO of JENOPTIK AG. “Key to this has been our com­pre­hen­sive and rapid response, with a bunch of mea­su­res, to the struc­tu­ral chal­len­ges we face, par­ti­cu­larly in the auto­mo­tive indus­try, and, of course, to the effects of the corona pan­de­mic.”

Robust cash and liqui­dity situa­tion crea­tes good basis for future busi­ness per­for­mance

In the first quar­ter, the Exe­cu­tive Board had deci­ded to take pre­cau­tio­nary action allowing it to react quickly to the situa­tion crea­ted by the corona pan­de­mic. In addi­tion to secu­ring the company’s liqui­dity and pro­fi­ta­bi­lity, mea­su­res were imple­men­ted to secure the ope­ra­ting busi­nes­ses, inclu­ding the sup­ply chain, and opti­mize the working capi­tal. As a result, the ope­ra­ting cash flow impro­ved to 26.7 mil­lion euros as of June 30, 2020 (prior year: minus 7.6 mil­lion euros), chiefly due to active working capi­tal manage­ment. As a result of the hig­her ope­ra­ting cash flow, the free cash flow also saw a strong incre­ase to 16.0 mil­lion euros (prior year: minus 14.6 mil­lion euros), des­pite an incre­ase in capi­tal expen­dit­ure over the repor­ting period. Adjus­ted for the cash impacts ari­sing from struc­tu­ral and port­fo­lio mea­su­res, the free cash flow actually grew to 17.8 mil­lion euros.

In view of the cur­rent situa­tion, the Group is in a good posi­tion with short-term finan­cial resour­ces of 123.5 mil­lion euros (31/12/2019: 168.7 mil­lion euros). Des­pite a slight reduc­tion in finan­cial debt, the acqui­si­tion of INTEROB and the repay­ment of a deben­ture loan resul­ted in net debt of 26.6 mil­lion euros (31/12/2019: minus 9.1 mil­lion euros).

Deve­lo­p­ment of the divi­si­ons: impro­ved mar­gin in Light & Optics, posi­tive deve­lo­p­ment in Light & Safety, and sta­ble per­for­mance in VINCORION, los­ses as expec­ted in Light & Pro­duc­tion

In the first six mon­ths of 2020, the Light & Optics divi­sion gene­ra­ted 137.7 mil­lion euros of reve­nue, 10.0 per­cent down on the adjus­ted prior-year figure of 153.0 mil­lion euros. Des­pite the spread of the coro­na­vi­rus, busi­ness with the semi­con­duc­tor equip­ment indus­try pro­ved to be very robust. By con­trast, the divi­sion repor­ted sharp decli­nes in its Bio­pho­to­nics and Indus­trial Solu­ti­ons units. EBITDA adjus­ted for the effects ari­sing from struc­tu­ral and port­fo­lio mea­su­res fell at a lower rate than reve­nue, by 4.3 per­cent to 30.7 mil­lion euros (prior year: 32.0 mil­lion euros). The adjus­ted EBITDA mar­gin con­se­quently impro­ved noti­ce­ably from 20.8 per­cent to 22.1 per­cent, thanks to active cost manage­ment. At the end of the first half-year of 2020, the divi­sion repor­ted an order intake worth 139.6 mil­lion euros (prior year: adjus­ted 142.1 mil­lion euros). At the end of June 2020, the order back­log remai­ned at a good level of 139.0 mil­lion euros (31/12/2019: adjus­ted 143.5 mil­lion euros).

Reflec­ting the glo­bal slump in the auto­mo­tive indus­try, the Light & Pro­duc­tion divi­sion was most stron­gly affec­ted by the impacts of the corona cri­sis. In the first six mon­ths, the divi­sion pos­ted a reve­nue decline of 33.2 per­cent, to 74.3 mil­lion euros (prior year: 111.3 mil­lion euros). While the Auto­ma­tion & Inte­gra­tion unit remai­ned lar­gely sta­ble, in part due to the INTEROB acqui­si­tion, both Metro­logy and Laser Pro­ces­sing pos­ted signi­fi­cant reduc­tions. INTEROB con­tri­bu­ted reve­nue of 5.3 mil­lion euros over the repor­ting period. Nevertheless, sta­ble deve­lo­p­ment in the auto­ma­tion busi­ness was not suf­fi­ci­ent to off­set unde­ruti­liz­a­tion in the other units. Sharp were pri­ma­rily due to weak busi­ness in Asia, but also pro­ject post­po­ne­ments and the tem­porary clo­sure of two Jen­op­tik plants decli­nes in the divi­sion. To coun­ter these deve­lo­p­ments, struc­tu­ral and port­fo­lio adjus­t­ment pro­jects were initia­ted at the begin­ning of the year, tog­e­ther with mea­su­res to reduce the impact of the COVID-19 pan­de­mic. The division’s EBITDA, adjus­ted for the impacts ari­sing from the struc­tu­ral and port­fo­lio mea­su­res, came to minus 3.4 mil­lion euros in the repor­ting period (prior year: 11.9 mil­lion euros). Due to the can­cel­la­tion of a major order and a num­ber of post­po­ned pro­jects, the order intake in Light & Pro­duc­tion fell to 65.0 mil­lion euros (prior year: 113.0 mil­lion euros). Inclu­ding the INTEROB orders, worth 13.9 mil­lion euros, the division’s order back­log of 90.6 mil­lion euros at the end of the repor­ting period was, howe­ver, up on the figure at year-end 2019 (31/12/2019: 81.6 mil­lion euros).

Des­pite the spread of the coro­na­vi­rus, sta­ble capi­tal spen­ding pat­terns by public-sec­tor cus­to­mers hel­ped the Light & Safety divi­sion to achieve very good busi­ness per­for­mance in the first half-year of 2020. Reve­nue rose by 15.1 per­cent to 55.7 mil­lion euros (prior year: 48.4 mil­lion euros). As a result of good busi­ness per­for­mance, the divi­sion also mana­ged to signi­fi­cantly improve its ope­ra­ting results. Adjus­ted EBITDA incre­a­sed to 10.9 mil­lion euros in the period cove­red by the report (prior year: 6.6 mil­lion euros). The adjus­ted EBITDA mar­gin accord­in­gly incre­a­sed appre­cia­bly to 19.6 per­cent (prior year: 13.5 per­cent). The order intake is sub­ject to typi­cal fluc­tua­tions and, for pro­ject-rela­ted rea­sons, fell to 41.9 mil­lion euros in the first six mon­ths of 2020 (prior year: 50.6 mil­lion euros). The order back­log grew 22.6 per­cent to 54.1 mil­lion euros (31/12/2019: 69.9 mil­lion euros).

Over the first six mon­ths of the year, VINCORION gene­ra­ted reve­nue of 58.8 mil­lion euros, ther­eby almost reaching the prior-year figure (prior year: 59.1 mil­lion euros). This posi­tive busi­ness per­for­mance was pri­ma­rily due to strong demand in the Power Sys­tems unit, mainly for power gene­ra­tors and com­pon­ents for energy sys­tems. Due to reve­nue mix effects, the ope­ra­ting result was slightly down. Over the repor­ting period, EBITDA came to 4.1 mil­lion euros, down on the prior-year figure of 4.5 mil­lion euros. The EBITDA mar­gin fell from 7.6 per­cent to a pre­sent 7.0 per­cent. At 84.3 mil­lion euros, the order intake in the period cove­red by the report was shar­ply up on the prior-year figure of 73.8 mil­lion euros. In light of good demand, VINCORION’s order back­log also grew in value, by 23.9 mil­lion euros to 193.6 mil­lion euros (31/12/2019: 169.7 mil­lion euros), and was thus stron­gly up on all the quar­ters in the prior year.

JENOPTIK AG spe­ci­fies reve­nue and mar­gin tar­gets for 2020

Sup­por­ted by the actions taken to limit the impacts of COVID-19 and in view of an expec­ted stron­ger second half-year, the Exe­cu­tive Board fore­casts reve­nue of 770 to 790 mil­lion euros for the full year 2020 (not inclu­ding the impacts ari­sing from the expec­ted acqui­si­tion of TRIOPTICS GmbH). Adjus­ted for the effects ari­sing from the initia­ted struc­tu­ral and port­fo­lio mea­su­res, the EBITDA mar­gin is expec­ted to be bet­ween 14.5 and 15.0 per­cent. “To ensure a stron­ger second half-year, we expect to see signs of reco­very in the eco­nomy and no fur­ther corona wave. The struc­tu­ral and port­fo­lio mea­su­res that we have initia­ted will help Jen­op­tik to acce­le­rate growth and improve pro­fi­ta­bi­lity star­ting next year at the latest. To ensure full trans­pa­rency, we are repor­ting the asso­cia­ted effects sepa­r­ately in this fis­cal year,” says Tra­e­ger.

The half-year report is avail­able in the “Investors/Reports and Pre­sen­ta­ti­ons” sec­tion of the Jen­op­tik web­site (www.jenoptik.com). The “Jen­op­tik app” can be used to view the report on mobile devices run­ning iOS or Android. Images for down­load can be found in the Jen­op­tik image data­base at media.jenoptik.com.

*Figu­res without note 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 as well as with VINCORION for mecha­tro­nics solu­ti­ons. 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