News › JENOPTIK • Impro­ve­ments in reve­nue and ear­nings in third quarter

• In the third quar­ter, order intake was at prior-year level with 177.0 mil­lion euros; buoyed by acqui­si­ti­ons, order back­log grew to 496.7 mil­lion euros after nine months
• Reve­nue of 176.1 mil­lion euros in the third quar­ter was 6.9 per­cent up on prior quar­ters; cumu­la­tive figure of 505.0 mil­lion euros was 13.1 per­cent down on prior year
• Pro­fi­ta­bi­lity impro­ved over the year; adjus­ted EBITDA mar­gin was up to 18.0 per­cent in the third quar­ter, and came to 14.6 per­cent in first nine months
• Adjus­ted free cash flow grew to 18.5 mil­lion euros
• Out­look for 2020: inclu­ding TRIOPTICS, reve­nue is expec­ted to come in at bet­ween 755 and 775 mil­lion euros, with an adjus­ted EBITDA mar­gin of 15.0 to 15.5 per­cent, exclu­ding PPA impacts ari­sing from the acqui­si­tion of TRIOPTICS

The effects of the COVID-19 pan­de­mic and uncer­tainty in the auto­mo­tive indus­try were also noti­ceable in the pre­sent report­ing period too, and impac­ted on busi­ness per­for­mance in the third quar­ter. Over­all eco­no­mic deve­lo­p­ment was still weak, par­ti­cu­larly in the tra­di­tio­nal auto­mo­tive busi­ness, but also in parts of the avia­tion and medi­cal tech­no­logy indus­tries. Nevert­hel­ess, demand for our pro­ducts and ser­vices was plea­sing in the third quar­ter, as pre­viously announ­ced, and at a value of 177.0 mil­lion euros was con­sider­a­bly above the prior-quar­ter order intake of 122.2 mil­lion euros. In the period from Janu­ary through Sep­tem­ber 2020, the order intake fell to 510.9 mil­lion euros (prior year: adjus­ted 558.7 mil­lion euros) due to a wea­ker first half of the year that was affec­ted by the COVID-19 pan­de­mic. The order back­log grew to 496.7 mil­lion euros (31/12/2019: adjus­ted 464.7 mil­lion euros), with acqui­red enti­ties INTEROB and TRIOPTICS adding orders worth 51.4 mil­lion euros.

The COVID-19 pan­de­mic had vary­ing effects on the deve­lo­p­ment of reve­nue of the Jen­op­tik divi­si­ons. The pan­de­mic had little to no impact on busi­ness with public-sec­tor con­trac­tors and the semi­con­duc­tor equip­ment indus­try, which actually pos­ted growth. By con­trast, the Light & Pro­duc­tion divi­sion was stron­gly affec­ted by deve­lo­p­ments in the auto­mo­tive indus­try, but over the year still saw a slight impro­ve­ment in reve­nue. Reve­nue for the July through Sep­tem­ber period of 176.1 mil­lion euros was up on the two prior quar­ters of 2020. Over the first nine months of 2020, the Group gene­ra­ted cumu­la­tive reve­nue of 505.0 mil­lion euros, a fall of 13.1 per­cent (prior year: adjus­ted 581.4 mil­lion euros). The con­tri­bu­tion to reve­nue made by the INTEROB group, acqui­red in Febru­ary 2020, came to 9.5 mil­lion euros. TRIOPTICS, included in the Con­so­li­da­ted Finan­cial State­ments at the end of the quar­ter, made a con­tri­bu­tion of 0.9 mil­lion euros.

A more favoura­ble pro­duct mix as well as mea­su­res taken to limit the impact of the COVID-19 pan­de­mic, such as short-time working, had a posi­tive effect on pro­fi­ta­bi­lity over the course of the year. Adjus­ted EBITDA increased stron­gly from 17.3 and 24.9 mil­lion euros in the first and second quar­ters to a figure of 31.7 mil­lion euros in the report­ing quar­ter. In the period from Janu­ary through Sep­tem­ber, adjus­ted EBITDA fell to 73.9 mil­lion euros as a result of reve­nue deve­lo­p­ment in the first six months (prior year: 92.4 mil­lion euros). The adjus­ted EBITDA mar­gin for the quar­ter was 18.0 per­cent and a cumu­la­tive 14.6 per­cent for the first nine months (prior year: Q3 18.3 per­cent, 9M 15.9 per­cent). The adjus­t­ments include impacts ari­sing from struc­tu­ral and port­fo­lio mea­su­res amoun­ting to a total of minus 7.3 mil­lion euros (prior year: minus 1.0 mil­lion euros), of which minus 0.9 mil­lion euros for res­truc­tu­ring and site opti­miza­tion, minus 3.0 mil­lion euros for cost-reduc­tion pro­grams, and minus 3.4 mil­lion euros for M+A activities.

“As alre­ady announ­ced, Jenoptik’s order intake sta­bi­li­zed in the third quar­ter at the prior-year level. In the period from July through Sep­tem­ber, we also saw an app­re­cia­ble impro­ve­ment in the qua­lity of our ear­nings com­pared to the prior quar­ters. This makes us con­fi­dent for the coming months,” says Ste­fan Trae­ger, Pre­si­dent & CEO of JENOPTIK AG.

Solid cash flow deve­lo­p­ment con­tin­ued – con­so­li­da­tion of TRIOPTICS cle­arly reflec­ted in chan­ges to balance sheet ratios

In the first quar­ter, the Exe­cu­tive Board took 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 put in place to safe­guard the ope­ra­ting busi­nesses, inclu­ding the sup­ply chain, and opti­mize the working capi­tal. Con­se­quently, the ope­ra­ting cash flow saw an encou­ra­ging increase to 31.1 mil­lion euros as of Sep­tem­ber 30, 2020 (prior year: 27.4 mil­lion euros). As a result, the free cash flow also saw a strong increase to 13.4 mil­lion euros over the report­ing period (prior year: 7.3 mil­lion euros). Adjus­ted for the cash impacts ari­sing from struc­tu­ral and port­fo­lio mea­su­res, the free cash flow actually grew to 18.5 mil­lion euros.

Cash and cash equi­va­lents, tog­e­ther with cur­rent finan­cial invest­ments, fell in line with expec­ta­ti­ons to 83.1 mil­lion euros as of Sep­tem­ber 30 due to the acqui­si­ti­ons and the repay­ment of a deben­ture loan (31/12/2019: 168.7 mil­lion euros). In view of the pre­sent situa­tion, the Group con­ti­nues to see its­elf in a very good posi­tion with short-term liquid funds and unu­sed lines of cre­dit worth over 50 mil­lion euros, as well as addi­tio­nal bridge finan­cing of 300 mil­lion euros. The sharp rise in finan­cial debt fol­lo­wing the acqui­si­ti­ons resul­ted in net debt incre­asing to 242.3 mil­lion euros (31/12/2019: minus 9.1 mil­lion euros).

Deve­lo­p­ment of the divi­si­ons: impro­ved mar­gin in Light & Optics, good growth in Light & Safety, as expec­ted decli­nes in Light & Pro­duc­tion and VINCORION

In the first nine months of 2020, the Light & Optics divi­sion gene­ra­ted reve­nue of 209.8 mil­lion euros, 11.2 per­cent below the adjus­ted and thus com­pa­ra­ble prior-year figure of 236.4 mil­lion euros. Busi­ness with the semi­con­duc­tor equip­ment indus­try remained robust, but the divi­sion pos­ted sharp decli­nes due to the pan­de­mic in its bio­pho­to­nics and indus­trial solu­ti­ons areas. Com­pared to the prior year, EBITDA adjus­ted for the impacts ari­sing from struc­tu­ral and port­fo­lio mea­su­res of 1.7 mil­lion euros fell by 2.8 per­cent, to 48.1 mil­lion euros, and thus at a mark­edly lower rate than reve­nue (prior year: 49.5 mil­lion euros). The adjus­ted EBITDA mar­gin accor­din­gly increased app­re­cia­bly from 20.8 per­cent to 22.8 per­cent, in part due to a more pro­fi­ta­ble pro­duct mix. In the first nine months of 2020, the divi­sion repor­ted an order intake worth 214.6 mil­lion euros, almost the same as the adjus­ted prior-year figure of 216.8 mil­lion euros, par­ti­cu­larly due to sus­tained good demand from the semi­con­duc­tor equip­ment indus­try. At the end of Sep­tem­ber 2020, the order back­log, buoyed by the acqui­si­tion, had a value of 162.2 mil­lion euros, and was con­sider­a­bly hig­her than the figure at year-end 2019 (31/12/2019: adjus­ted 143.5 mil­lion euros). TRIOPTICS added 24.3 mil­lion euros to the division’s order backlog.

The Light & Pro­duc­tion divi­sion pro­ved to be most sus­cep­ti­ble to the ongo­ing reluc­tance to invest and con­sidera­ble uncer­tainty within the auto­mo­tive indus­try, which has been seen since 2019. In the first nine months, the division’s reve­nue fell by 30.4 per­cent on the prior-year period to 119.0 mil­lion euros (prior year: 170.9 mil­lion euros). Com­pared to prior quar­ters, Light & Pro­duc­tion achie­ved the hig­hest quar­terly reve­nue of 44.6 mil­lion euros in the third quar­ter of this fis­cal year. For the first time this year, the divi­sion repor­ted a posi­tive EBITDA of 9.1 mil­lion euros in the third quar­ter, mainly due to hig­her reve­nue and cost savings. Howe­ver, this, tog­e­ther with impro­ved pro­fi­ta­bi­lity in the auto­ma­tion busi­ness, was not enough to off­set unde­r­uti­liza­tion in the other areas throug­hout the period covered by the report. The division’s EBITDA, adjus­ted for the impacts of struc­tu­ral and port­fo­lio mea­su­res worth minus 1.5 mil­lion euros, came to minus 5.9 mil­lion euros in the entire report­ing period (prior year: 19.2 mil­lion euros). Fol­lo­wing a very weak second quar­ter, the order intake grew to 56.8 mil­lion euros in the period from July through Sep­tem­ber (prior year: 45.6 mil­lion euros). In the first nine months of 2020, the order intake in Light & Pro­duc­tion was worth 121.7 mil­lion euros (prior year: 158.7 mil­lion euros), still reflec­ting the impacts of an order can­cel­la­tion in June and pro­ject post­po­ne­ments. Inclu­ding the acqui­red INTEROB orders, worth 27.1 mil­lion euros, the division’s order back­log of 100.6 mil­lion euros at the end of the report­ing period was shar­ply up on the figure at year-end 2019 (31/12/2019: 81.6 mil­lion euros).

Despite the COVID-19 pan­de­mic, sta­ble capi­tal spen­ding pat­terns by public-sec­tor con­trac­tors hel­ped the Light & Safety divi­sion to achieve very good busi­ness per­for­mance over­all in the first nine months of 2020. Reve­nue rose by 9.3 per­cent to 82.1 mil­lion euros (prior year: 75.1 mil­lion euros). As a result of good busi­ness deve­lo­p­ment, the Light & Safety divi­sion also mana­ged to signi­fi­cantly improve its ope­ra­ting results. Adjus­ted EBITDA increased to 14.0 mil­lion euros in the period covered by the report (prior year: 11.9 mil­lion euros). The adjus­ted EBITDA mar­gin accor­din­gly grew app­re­cia­bly to 17.0 per­cent (prior year: 15.9 per­cent). The division’s order intake is sub­ject to typi­cal fluc­tua­tions and, for pro­ject-rela­ted reasons, came to 66.1 mil­lion euros in the first nine months of 2020 (prior year: 72.2 mil­lion euros). The division’s order back­log fell by 26.1 per­cent to 51.6 mil­lion euros (31/12/2019: 69.9 mil­lion euros).

In the first nine months of the year, VINCORION gene­ra­ted reve­nue of 91.0 mil­lion euros, ther­eby fal­ling short of the prior-year figure of 96.8 mil­lion euros. Demand in the power sys­tems area remained good, but fell in the avia­tion and energy & drive areas due to the dif­fi­cult glo­bal situa­tion. As a result, and due to a lower-mar­gin pro­duct mix, VINCORION’s ope­ra­ting result saw a decline. Over the report­ing period, EBITDA came to 6.9 mil­lion euros, down on the prior-year figure of 10.6 mil­lion euros. The EBITDA mar­gin fell from 10.9 per­cent in the prior year to a pre­sent 7.5 per­cent. The order intake in the report­ing period was 105.2 mil­lion euros, prac­ti­cally unch­an­ged on the prior-year figure of 108.0 mil­lion euros. The order back­log grew to 182.2 mil­lion euros and was thus sub­stan­ti­ally hig­her than at the end of 2019 (31/12/2019: 169.7 mil­lion euros).

Reve­nue out­look and mar­gin tar­get for 2020, inclu­ding TRIOPTICS

The Exe­cu­tive Board updated its assess­ment for the 2020 fis­cal year in mid-Octo­ber. Due to per­sis­t­ently weak over­all eco­no­mic deve­lo­p­ment and fur­ther dra­stic mea­su­res to con­tain the COVID-19 pan­de­mic, the Exe­cu­tive Board anti­ci­pa­tes reve­nue, exclu­ding TRIOPTICS, to come in at bet­ween 730 and 750 mil­lion euros in the 2020 fis­cal year. This would equate to a decline of 10 to 13 per­cent on the adjus­ted prior-year figure. Fol­lo­wing a fur­ther impro­ve­ment in the qua­lity of ear­nings in the third quar­ter com­pared to the prior quar­ter, the adjus­ted EBITDA mar­gin for the full year 2020 is now expec­ted to be at the upper end of the pre­viously fore­cast range of 14.5 to 15.0 per­cent. Inclu­ding TRIOPTICS’ con­tri­bu­tion to reve­nue of around 25 mil­lion euros, reve­nue for the full year 2020 is expec­ted to come in at bet­ween 755 and 775 mil­lion euros, with an adjus­ted EBITDA mar­gin of bet­ween 15.0 and 15.5 per­cent exclu­ding PPA impacts ari­sing from the acqui­si­tion of TRIOPTICS. “The struc­tu­ral and port­fo­lio mea­su­res are to help Jen­op­tik achieve acce­le­ra­ted growth and impro­ved pro­fi­ta­bi­lity start­ing in 2021,” says 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 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 4,400 employees world­wide 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