MAX Automation SE, DE000A2DA588

MAX Automation SE, DE000A2DA588

15.03.2019 - 09:28:36

MAX Automation SE: MAX Automation 2018 with successful core business - Order intake increases by 31% compared to the previous year

PRESS RELEASE

MAX Automation 2018 with successful core business - Order intake increases by 31% compared to the previous year

- Order intake for continuing operations reaches EUR 325.4 million (+30.8%), Order backlog increases to EUR 173.6 million (+52.7%)

- Group sales of EUR 277.4 million in the upper range of the target corridor, EBIT before PPA amortization better than expected at EUR 18.8 million

- Managing Director Andreas Krause: "2019 will be a year of transformation and transition for MAX on the way to sustainable profitable growth."

Düsseldorf, March 15, 2019 - MAX Automation recorded a successful development in its core businesses in fiscal year 2018. Group sales of the continuing operations rose to EUR 277.4 million and were thus in the upper range of the target corridor of EUR 270 to 280 million. At EUR 18.8 million, earnings before interest and taxes (EBIT) and before purchase price allocation (PPA) amortization exceeded the forecast range of EUR 16 million to 18 million. Order intake from continuing operations showed a strong development with an increase of 30.8% to EUR 325.4 million. The Order backlog grew by more than half (+52.7%) to EUR 173.6 million.

This development confirms the strategic decision of the Supervisory Board of MAX Automation SE in September 2018 to withdraw from the construction of special purpose machines/assembly lines for customers in the automotive sector and to initiate a structured sales process for the Group companies IWM Group as well as for ELWEMA and for the majority holding in MAX Automation (Asia Pacific). The decision supports the goal to improve the profitability and the risk profile of the Group. The companies held for sale are shown separately as discontinued operations in the 2018 Consolidated Financial Statements in accordance with IFRS 5.

Andreas Krause, Managing Director and CFO of MAX Automation SE: "2018 was a difficult year for MAX Automation, but also a year of significant change. We have realigned the strategic direction of our Group and will in future clearly focus on those areas of the automation market in which we can achieve above-average margins with limited volatility in demand. The strong development in our core businesses supports this strategic realignment. We look at 2019 as a year of transformation and transition, in which we want to successfully complete the ongoing sales processes and initiate a phase of sustainable profitable growth for MAX Automation."

Key Group figures for 2018 Unless otherwise indicated, the following information refers to continuing operations.

- Order intake improved by 30.8% to EUR 325.4 million (2017: EUR 248.9 million). The book-to-bill ratio was 1.17.

- At EUR 173.6 million, the order backlog as of December 31, 2018 was 52.7% higher than the figure as of December 31, 2017 (EUR 113.7 million).

- Sales increased by 10.6% to EUR 277.4 million and were in the upper range of the target corridor of EUR 270 million to 280 million (previous year: EUR 250.8 million).

- Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to EUR 24.0 million (previous year: EUR 26.1 million; -7.7%).

- Earnings before interest and taxes (EBIT) and before PPA amortization of EUR 18.8 million were above the forecast range of EUR 16 million to EUR 18 million (2017: EUR 21.0 million; -10.6%). This figure includes investments in improvements of the Group's risk management and in the internal control and reporting systems as well as costs related to the disposal process. The EBIT margin in relation to total output fell from 8.4% to 6.8%.

- The MAX Automation Group closed 2018 with a net loss of EUR 35.6 million (previous year: net profit of EUR 14.1 million). This includes earnings after taxes from discontinued operations of EUR -47.1 million (previous year: EUR 0.5 million). It is caused by the operating and extraordinary losses of the IWM Group, by measures to improve their profitability and by revaluations of assets in accordance with IFRS 5. Due to the net loss, the Supervisory Board of MAX Automation will propose to the Annual General Meeting on May 17, 2019, to suspend the dividend for fiscal year 2018.

- Working capital improved significantly from EUR 41.5 million as of December 31, 2017, to EUR 27.8 million as of December 31, 2018 (continuing operations), corresponding to approximately 10% of Group sales. The improvement was partly due to a tighter working capital management at the subsidiaries.

Development of the segments in 2018 The Industrial Automation segment developed dynamically in 2018. The good business performance was attributable in particular to the business units Life Science Automation and Process Technologies. The Group companies continued to benefit from important global growth drivers such as demographic trends and technological advances in the medical technology industry as well as the trends towards driver assistance systems and electric drives for vehicles. Order intake and order backlog grew significantly at double-digit rates, with sales up 3.4% on the previous year to EUR 166.6 million. EBIT before PPA reached EUR 16.6 million (2017: EUR 18.3 million).

The Environmental Technology segment with Vecoplan AG and its subsidiaries recorded a successful course of business in 2018 and was able to significantly increase all key performance indicators. The segment again benefited in the fiscal year from rising demand for efficient reprocessing plants for raw and residual materials. Sales increased by 23.7% compared with 2017 to EUR 110.6 million. Segment EBIT before PPA improved to EUR 8.5 million (2017: EUR 6.5 million).

Group to be re-segmented, change in key performance indicators With the clear focus on the core business, the Supervisory Board of MAX Automation SE intends to re-segment the Group, starting in fiscal year 2019 where the operating business is divided into the three segments Process Technologies, Environmental Technologies and Evolving Technologies, which will replace the previous Industrial Automation and Environmental Technology segments. The new segments will be reported for the first time with the interim report for the first quarter of 2019.

In addition, from fiscal year 2019 on, the Group's primary key performance indicators will include EBITDA, which replaces EBIT, in addition to the key figures sales and working capital. The Supervisory Board is convinced that EBITDA better reflects the operating business of the Group.

Outlook for fiscal year 2019 The Managing Director Andreas Krause sees MAX Automation with its continuing operations as strategically well-positioned. The high order backlog at the beginning of 2019 gives comfort to achieve targets in the core business. Possible effects of the economic downturn, especially in Europe, on demand have to be observed. Based on the current portfolio, Andreas Krause expects Group sales of more than EUR 300 million and EBITDA of more than EUR 20 million for 2019 for the continuing business (excluding effects from the conversion of IFRS 16 on leasing assets).

The structured sales process for the companies of the IWM Group, ELWEMA Automotive GmbH and the share in MAX Automation (Asia Pacific) Co., Ltd. is proceeding according to plan and is expected to be successfully completed in the second half of 2019.

 

MAX AUTOMATION GROUP AT A GLANCE

Continuing operations

  2018 2017 Change   in EUR million in EUR million in % Order intake 325.4 248.9 +30.8 Order backlog* 173.6 113.7 +52.7 Book-to-bill ratio 1.17 0.99 - Sales 277.4 250.8 +10.6 EBITDA 24.0 26.1 -7.7 EBIT before PPA 18.8 21.0 -10.6 in % of total output 6.8 8.4 -1.6 points EBIT after PPA 13.6 19.8 -31.7 EBIT per share before PPA (EUR) 0.64 0.71 -0.07 Euro Net result** -35.6 14.1 - Earnings per share after PPA (EUR)** -1.05 0.47 - Total assets* 364.3 323.3 +12.7 Equity* 91.6 139.0 -34.1 Equity ratio in %* 25.1 43.0 -17.9 points Working capital 27.8 41.5 -33,0  

* Balance sheet date comparison December 31, 2018, to December 31, 2017 **including profit after tax from discontinued operations

Industrial Automation segment

  2018 2017 Change   in EUR million in EUR million in % Order intake 209.4 155.9 +34.3 Order backlog* 139.1 83.9 +65.7 Segment sales 166.6 161.0 +3.4 EBITDA 20.1 21.6 -6.8 Segment EBIT before PPA 16.6 18.3 -9.3 Segment EBIT after PPA 11.4 17.5 -34.6  

* Balance sheet date comparison December 31, 2018, to December 31, 2017

Environmental Technology segment

  2018 2017 Change   in EUR million in EUR million in % Order intake 116.0 92.9 +24.8 Order backlog* 34.6 29.7 +16.2 Segment sales 110.6 89.4 +23.7 EBITDA 10.0 8.2 +23.3 Segment EBIT before PPA 8.5 6.5 +30.7 Segment EBIT after PPA 8.5 6.5 +30.7  

* Balance sheet date comparison December 31, 2018, to December 31, 2017

The complete annual financial report for fiscal year 2018 is now available for download on the MAX Automation SE website at www.maxautomation.com in the "Investor Relations/Financial Reports" section.

Contact: Katja Redweik Head of Corporate Development/IR MAX Automation SE Phone: +49 - 211 - 9099 144katja.redweik@maxautomation.comAbout MAX Automation SE MAX Automation SE (Securities Identification Number: A2DA58) with its headquarters in Düsseldorf is an internationally active industry group for high-tech automation solutions. Its operating business is divided into two segments. In the Industrial Automation segment, the Group is considered to be a trendsetter in the development and manufacturing of integrated and proprietary solutions for use in manufacturing and assembly in the automotive industry, medical technology, packaging machines and the electronics industry due to its comprehensive technological know-how. In the Environmental Technology segment, MAX Automation develops and installs innovative systems for use by the recycling, energy and raw materials industries.www.maxautomation.com

 

Additional features:Document: http://n.eqs.com/c/fncls.ssp?u=ILYGLCBAKADocument title: Press Release Annual Result 2018

15.03.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de

Language: English Company: MAX Automation SE Breite Straße 29-31 40213 Düsseldorf

Germany Phone: +49 (0)211 90991-0 Fax: +49 (0)211 90991-11 E-mail: Investor.Relation@maxautomation.com Internet: www.maxautomation.com ISIN: DE000A2DA588 WKN: A2DA58 Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange   End of News DGAP News Service

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