SMARTRAC N.V. / Final Results
17.03.2009
Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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* Sales 2008: EUR 112.3 million, representing an increase of 16 percent on
the EUR 96.6 million generated in 2007
* EBITDA 2008: Decline to EUR 21.0 million compared to EUR 25.5 million in
2007, profitability at 19 percent EBITDA margin
* Operating cash flow 2008: EUR 19.3 million, representing an increase of
15 percent on EUR 16.7 million provided in 2007
* Outlook 2009: Confidence to grow the business organically
* Dr. Christian Fischer, CEO: 'Even in today's economic environment,
SMARTRAC's business model is and remains profitable and cash generating. We
are well positioned to participate in the potential of the growing RFID
market.'
Amsterdam, March 17, 2009 - The TecDAX listed company SMARTRAC N.V. today
announces financial figures for the full year 2008. Despite the challenging
economic environment, SMARTRAC reports another good year with further
increase in sales and operating cash flow as well as an attractive
profitability level. SMARTRAC's strategy as a dedicated RFID company with a
diversified technology portfolio and a broad product range has proven to be
correct in an economy surrounded by uncertainty.
Reviewing 2008, SMARTRAC was affected by the deep financial and economic
crisis. Despite that, the company advanced its business both strategically
and operationally. Key topics of the 2008 development:
Compensating a significant decline in the U.S. ePassport business
In the second half of the year, the global economic developments and the
U.S. recession led to a significant reduction in demand for passports as
people trimmed down travel activities and companies cut business travel.
Including the effects of a decline due to large inventory in the value
chain in the second quarter, SMARTRAC delivered over 40 percent less inlays
to its customers for the U.S. passport in 2008. Due to newly acquired
projects SMARTRAC was able to compensate the reduction in U.S. ePassport
volume for a portion, strongly supported by 54 percent growth in the
product line ePayment and an 8o percent growth in the product lines
allocated to SMARTRAC's standard segment.
Expansion of manufacturing capacity to record level
In 2008, SMARTRAC strengthened its position as leading provider of RFID
transponders with the largest production capacity worldwide. In the course
of one year, SMARTRAC increased the capacity of the four factories in
Ayutthaya, Thailand, from 15 million units to 24 million units per month by
year end 2008. In addition, SMARTRAC completed the construction and
security certification of its U.S. factory and integrated it into the
global manufacturing network. SMARTRAC now maintains dedicated high
security manufacturing facilities in Asia, Europe and America.
Strategic acquisition of Sokymat Automotive GmbH
In September 2008, SMARTRAC acquired Sokymat Automotive GmbH. The company
considers this investment as being substantial for the further development
of the SMARTRAC Group. Both companies have a very similar position in the
global RFID value chain. The acquisition broadens the product portfolio and
it represents an important step towards a more balanced product portfolio.
SMARTRAC has implemented a new platform to accelerate the combined business
activities in industrial, logistics and animal ID applications. The
activities of Sokymat Automotive provide access to the market of RFID
components for the automotive industry, where Sokymat Automotive GmbH holds
a strong market position. Despite the current challenging environment,
SMARTRAC's Management strongly believes that RFID technology in the
automotive industry in general will provide additional growth opportunities
in the future.
Group revenues
The SMARTRAC Group generated revenues of euro 112.3 million in 2008. This
represents an increase of 16 percent from the previous year figure of euro
96.6 million. The increase is due in particular to the favorable
performance of the ePayment business and growth in the public transport and
access control business. Revenue of euro 5.5 million is attributable to
Sokymat Automotive GmbH, which was consolidated as of 26 September 2008.
Revenue in the Standard segment amounted to euro 52.1 million in 2008
representing a strong increase of 80 percent compared to sales of euro 29.0
million in 2007. The 2008 sales represent a 46 percent share in the overall
sales of the company compared to 30 percent a year ago. This share in the
overall sales figures illustrates the fact that the Standard segment
applications gain significant importance in the product mix of SMARTRAC.
Revenue in SMARTRAC's High Security segment amounted to euro 60.6 million,
which is equivalent to a decrease of 11 percent compared to sales of euro
67.7 million in the 2007 financial year. The decline is due mainly to the
slowdown in the U.S. ePassport project which could not be fully offset by
new project wins in the other ePassport projects and the positive
development of the ePayment business. In 2008 the High Security Segment
accounted for 54 percent of total Group revenue compared to 70 percent a
year ago.
Group EBITDA
The Group EBITDA of euro 21.0 million (previous year: euro 25.5 million) is
equivalent to an EBITDA margin of 19 percent. The anticipated reduction in
profitability in 2008 was prompted by the changing product mix, the
proportion of microchip sourcing in the revenues, the investments in the
factories in Malaysia and the U.S., as well as extraordinary legal fees for
the protection of SMARTRAC's intellectual property. Considering the
difficult environment and various one-time charges, the Management is
generally satisfied with the sales and the results achieved.
The Standard segment achieved an EBITDA of euro 4.6 million in 2008.
Compared to euro 3.7 million in 2007, this is an increase of 23 percent.
The High Security segment reached EBITDA of euro 18.8 million. Compared to
EBITDA of euro 23.3 million from High Security applications in 2007, this
represents a decrease of 19 percent.
Net profit
At euro 13.6 million, profit for the period attributable to the equity
holders of the company was down 34 percent on the previous year's euro 20.7
million. Increased operating expenses, financial expenses and a slightly
increased tax burden resulted in a disproportionate decrease of the net
profit.
Financial position
Accounting for euro 177.4 million, the consolidated balance sheet total as
at 31 December 2008 was 52 percent higher than the previous year figure of
euro 116.5 million. This increase is mainly attributable to the acquisition
and first time consolidation of Sokymat Automotive GmbH. The consolidated
balance sheet shows equity of euro 98.2 million, representing a 14 percent
increase compared to euro 86.2 million a year ago.
With an equity ratio of 55 percent, an operating cash flow of euro 19.3
million, and net debt of euro 22.4 million, SMARTRAC possesses a solid
financial basis for the future development of the company
As of 31 December, 2008, SMARTRAC employed a total workforce of 2,786
people compared to 2,625 employees in 2007.
Business outlook
2009 will be a challenging year. The repercussions of the deep global
recession and the ongoing financial crisis are currently difficult to
gauge. Nevertheless, SMARTRAC's Management is convinced that in the coming
years RFID will remain a growth market with average growth rates of up to
25 percent per year. As the market leader, SMARTRAC has the opportunity to
participate the most from this trend.Decisively committed to a dedicated RFID business model, SMARTRAC will
continue to be a profitable and cash generating company with apparent
growth opportunities. Based on SMARTRAC's market leadership and its
diversified product and technology portfolio, the Management Board is
confident to grow the business organically in the course of 2009.
'We face a deep global recession, but we further developed SMARTRAC's
business model and have a very solid financial structure,' said Dr.
Christian Fischer. 'Therefore, we are confident that we are prepared to
face the challenges and opportunities in the coming year.'
The SMARTRAC 2008 Annual Report has been published today and is available
for download on the company's website at www.smartrac-group.com.
About SMARTRAC N.V.
SMARTRAC is a leading manufacturer and supplier of RFID (Radio Frequency
Identification) transponders for a broad bandwidth of applications in all
current frequencies. The company produces ready-made as well as customized
transponders for public transport, access control, automotive, animal
identification, industry and logistics. SMARTRAC is the global leader in
high-quality RFID inlays for passports with integrated, contactless chips
(ePassports) and contactless credit cards (ePayment). SMARTRAC was founded
in 2000 and since going public in July 2006 has been trading as a stock
corporation under Dutch law with its registered headquarters in Amsterdam.
The company currently employs some 2.800 employees and maintains a global
research and development, production and sales network.
Andreas Schwarzwälder
Investor Relations
Tel: +31 20 30 50 156
Email: andreas.schwarzwaelder@smartrac-group.com
************
Tanja Möhler
Corporate Communications
Tel: +31 20 30 50 157
Email: tanja.moehler@smartrac-group.com
DGAP 17.03.2009
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Language: English
Issuer: SMARTRAC N.V.
Strawinskylaan 851
1077 XX Amsterdam
Niederlande
Phone: +31 20 30 50 156
Fax: +31 20 30 50 155
E-mail: investor.relations@smartrac-group.com
Internet: www.smartrac-group.com
ISIN: NL0000186633
WKN: A0JEHN
Indices: TecDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, München, Stuttgart
End of News DGAP News-Service
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DGAP-News: SMARTRAC reports full year results 2008: Growth of 16 percent in sales and 15 percent in operating cash flow, profitability at 19 percent EBITDA margin
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