SMARTRAC N.V. / Final Results
15.03.2010 07:32
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PRESS RELEASE
SMARTRAC reports full year results 2009: Sales growth of 14 percent in a
difficult economic environment, profitability at 13 percent EBITDA margin
- Sales 2009: EUR 127.9 million, representing an increase of 14 percent
on the EUR 112.3 million generated in 2008
- EBITDA 2009: EUR 15.9 million compared to EUR 21.0 million in 2008,
profitability at 13 percent EBITDA margin, improvement in the second
half of 2009
- Balance sheet 2009: Equity increased by 27 percent to EUR 124.6 million
compared to EUR 98.2 million in 2008, equity ratio at 60 percent (2008:
55 percent)
- Outlook 2010: Profitable Growth - Sales expected in a range between EUR
140 million to EUR 150 million, EBITDA profitability to exceed margin
of 2009
- Dr. Christian Fischer, CEO: 'We passed the challenges the economic
environment assessed in 2009. SMARTRAC delivered growth and we managed
to improve profitability in the second half of the year. We secured
solid financing and strengthened our equity base. We are looking into
2010 with certain optimism.'
Amsterdam, March 15, 2010 - The TecDAX listed company SMARTRAC N.V. today
announces financial figures for the full year 2009. The extraordinary
dimension of the economic crisis produced a relentless assessment on
SMARTRAC's business model, on its strategy and the company's organization.
Reviewing SMARTRAC's strategic decisions, operational performance and
financial soundness at the end of financial year 2009, the Management Board
can state that SMARTRAC as a Group has passed this challenge. SMARTRAC
delivered on growth and, in the second half of 2009, the management team
managed to improve profitability. The company secured solid financing,
strengthened its equity base and provided further evidence to the value of
SMARTRAC's dedicated RFID strategy.
In the light of the economic crisis, SMARTRAC considers 2009 to be a
successful year for the company: successful in terms of operating and
financial performance, but more important in terms of stability and
flexibility of the company. Key topics of the 2009 development:
- Cope with and counteract the deep economic recession
Across all business units SMARTRAC had to cope with the uncertain economic
environment at the start of the financial year 2009. The players in the
RFID value chain were taking an observant approach. The order behavior was
noticeably less focused on the long-term. The displayed cautious order
behavior resulted in significant volatility and fluctuations in the
utilization of SMARTRAC's global production network with an associated
significant impact on efficiency and profitability. All four quarters were
characterized by a slow start in the first month with a strong performance
towards the end of the quarter.
Beside the general effects, SMARTRAC had to cope with the effects of the
challenging economic environment in specific industries and applications.
The automotive industry and the e-Payment application are most evident
examples. SMARTRAC counteracted the significant decline in the automotive
business twofold; on the one hand with cost measures like short-time work
at its main production site in Germany, and on the other hand with a more
focused and emphasized development of the non-automotive business. In the
business related to contactless credit cards (e-Payment) SMARTRAC was able
to maintain the business level in 2009 but the next growth spurt was
postponed clearly related to the economic crisis.
Nevertheless, SMARTRAC reported sales growth of 14 percent to EUR 127.9
million and delivered on its targets.
- SMARTRAC's position as high-security company
In 2009, SMARTRAC strengthened its position as high-security developer and
supplier in the global RFID industry. The ability of SMARTRAC to cope with
highest security standards, highest quality and confidentiality levels
within the entire value chain is a key asset to maintain and expand our
leading market position. SMARTRAC obtained EAL5+ security certification for
its production in Thailand from the German Federal Office for Information
Security (BSI). SMARTRAC is the first inlay manufacturer worldwide to
obtain security certification for its production environment, processes for
personal electronic identification (eID) products and the initialization
environment for eID.
In the light of SMARTRAC's strategy to support its customers with a
worldwide network of highly secure inlay production sites, the management
team decided in November 2009 to expand SMARTRAC's German production
facility in Reichshof-Wehnrath to a European competence center. In addition
to the production of RFID transponders for the industry and logistics
market segment, SMARTRAC will build a high-security production facility for
personal electronic identification (eID) products, especially RFID inlays
for e-Passports and contactless national ID cards.
- Securing financial flexibility and strengthening the balance sheet
In 2009, SMARTRAC was able to successfully complete transactions on the
debt and equity markets. SMARTRAC completed its first transaction in the
syndicated loan market in July 2009. In an environment affected by the
financial crisis and its impact on the banking system, SMARTRAC was able to
sign an agreement on a syndicated multicurrency credit facility for EUR 65
million which matures on June 30, 2012 with standard market terms and
conditions. SMARTRAC has successfully transferred the existing one-year
bridge financing facility into a mid-term credit facility.
In November 2009, SMARTRAC increased its share capital and successfully
placed 1,349,999 bearer shares with qualified investors in Germany and
Europe. SMARTRAC increased its share capital from EUR 6,750,000 (13,500,000
bearer shares) to EUR 7,424,999.50 (14,849,999 bearer shares). SMARTRAC
took in gross proceeds in the amount of EUR 20.9 million.
With the transactions SMARTRAC significantly strengthened its financial
basis, achieved financial flexibility and improved its equity position to
support SMARTRAC's strategic development in line with its growth
objectives.
Financial year 2009
|[![CDATA[|[pre|]]]|]
Key financial figures Consolidated Consolidated Change
In thousands of EUR December 31, 2009 December 31, 2008 in %
Consolidated income statement
Revenues 127,862 112,301 14
EBITDA 15,933 21,015 (24)
Net profit 5,060 13,628 (63)
Financial position and liquidity
Cash flow from 6,063 19,253 (69)
operating activities
Working capital 31,037 23,839 32
Capital expenditure 9,673 13,584 (29)
Total Assets 208,345 177,387 17
Operating Figures
Basic earnings per 0.38 1.03 (63)
share (EUR)
Operating cash flow 0.45 1.46 (69)
per share (EUR)
Equity ratio (%) 60 55 8
Headcount (at month'send) 2,734 2,786 (2)
|[![CDATA[|[/pre|]]]|]
Group revenues
The SMARTRAC Group generated revenues of EUR 127.9 million in 2009. This
represents an increase of 14 percent from the previous year figure of EUR
112.3 million. All business units except the Business Unit eID contributed
to the growth of the Group. The Business Unit eID was affected by an
unfavorable development of the volumes delivered to the U.S. e-Passport
project in 2009 which could not be fully offset by new passport projects in
the global market for e-Passports and national ID cards. In the first full
year of consolidation and significantly affected by the global crisis in
the automotive industry, SMARTRAC TECHNOLOGY GERMANY GmbH (former Sokymat
Automotive GmbH) accounted for sales of EUR 19.0 million compared to sales
of EUR 5.5 million consolidated in the financial statements 2008 when the
company was consolidated as of September 26, 2008.
In 2009, sales in the Security segment amounted to EUR 95.5 million and
were slightly below sales of EUR 96.3 million a year ago. The development
is mainly related to the U.S. e-Passport project, whereas other e-Passport
and national ID projects and the Business Unit Cards delivered favorable
growth.
Sales in the Industry segment accounted for EUR 30.7 million in 2009
representing a favorable increase of 107 percent compared to sales of EUR
14.9 million in 2008. The growth is attributable to the full year
consolidation of SMARTRAC TECHNOLOGY GERMANY GmbH (former Sokymat
Automotive GmbH). Significantly affected by the automotive crisis, SMARTRAC
TECHNOLOGY GERMANY effectively managed the crisis by introducing short-time
work and successfully developed the non-automotive business. Start of
volume production in Malaysia in the Business Unit Tickets & Labels
additionally supported the sales growth of the segment.
Group EBITDA
The Group EBITDA of EUR 15.9 million decreased by 24 percent compared to
EBITDA of EUR 21.0 million in 2008. All four quarters of 2009 were
characterized by a very volatile utilization of our production capacity
with significant effects on efficiency and profitability. In total, the
impact on the Group EBITDA from the results related to the operations in
the United States and Malaysia as well as the nonrecurring restructuring
costs amounted to EUR 3.9 million or approximately 3 percent EBITDA margin.
The Group EBITDA margin amounted to 13 percent compared to 19 percent a
year ago. However, on a quarter by quarter basis, SMARTRAC managed to
improve its EBITDA profitability in the third quarter (13 percent) and
continued on the path of improvement in the fourth quarter (14 percent).
In financial year 2009, the Security segment reported EBITDA of EUR 16.9
million. Compared to EBITDA of EUR 24.1 million reached in 2008, this
represents a drop of 30 percent. The EBITDA margin of 18 percent (2008: 25
percent) was burdened by the underutilization of the U.S. production
facility and affected by a higher proportion of microchip sourcing in the
period under review.
In financial year 2009, the Industry segment accounted for EBITDA of EUR
1.0 million and thus more than tripled compared to EBITDA of EUR 0.3
million reported in 2008. The EBITDA margin of 3 percent (2008: 2 percent)
is still significantly affected by the ramp-up costs for the production
facility in Malaysia and nonrecurring restructuring costs related to the
phase out production in Germany and the technology transfer to Malaysia.
Net profit
At EUR 5.1 million, profit for the financial year 2009 attributable to the
equity holders of the company was down 63 percent on the previous year's
EUR 13.6 million. The decline was mainly attributable to the lower
operating result and increased financial expenses related to the syndicated
credit facility secured in 2009.
Financial position
As of December 31, 2009, total assets of the consolidated balance sheet
amounted to EUR 208.3 million. Total assets increased by 17 percent
compared to the previous year figure of EUR 177.4 million. This increase is
mainly due to the equity increase executed in 2009 and the increase in
working capital.
In 2009, the increase of 27 percent in total equity attributable to equity
holders to a total of EUR 124.6 million can be primarily attributed to the
capital increase and the net profit of EUR 5.1 million. The equity ratio
increased from 55 percent at the end of 2008 to 60 percent at record date
2009, providing a solid financial structure for future growth.
In 2009, net cash provided by operating activities amounted to EUR 6.1
million compared to EUR 19.3 million in the prior year. Group's net profit
of EUR 5.1 million (2008: EUR 13.6 million) and increased trade receivables
as a result of allocation of sales towards the end of a quarter are the
main parameters to this development.
As of December 31, 2009, SMARTRAC employed a total workforce of 2,734
people compared to 2,786 employees in 2008.
Business outlook
The bottom of the global economic recession seems to be passed and a
further but slow economic recovery is expected for 2010. Nevertheless, the
crisis has changed the environment in which SMARTRAC conducts its business
and the current situation still provides a number of challenges. SMARTRAC
will continue to tackle all challenges determinedly and in a responsible
manner.
For the financial year 2010, the Management Board is confident to deliver
growth and improvement of SMARTRAC's profitability despite the fact that
the global market environment still provides some uncertainty and that the
management team has to address challenges within SMARTRAC, for instance to
achieve break even in the Malaysian operations.
SMARTRAC targets a revenue growth of at least 10 percent compared to 2009.
Group sales are expected in a range of EUR 140 million to EUR 150 million
in comparison to EUR 127.9 million in 2009. In terms of profitability,
SMARTRAC intends to deliver a more dynamic improvement of its EBITDA. The
Management Board is confident to achieve a Group EBITDA profitability
exceeding the margin of 2009.
'We are looking ahead to the financial year 2010 with decisiveness and
self-confidence. We formed an excellent base for the future and have a
strong and solid financial position,' said Dr. Christian Fischer.
'Therefore, we have all the requirements for a successful financial year
2010. The selection of SMARTRAC as supplier of eCovers by De La Rue
Identity Systems is a first milestone. We are confident to progress on the
path of profitable growth.'
The SMARTRAC 2009 Annual Report has been published today and is available
for download on the company's website at www.smartrac-group.com. The 2009
financial statements will be presented to the Annual General Meeting of
Shareholders in Amsterdam on May 12, 2010 for adoption. KPMG ACCOUNTANTS
N.V. issued an unqualified auditor's report in relation to the financial
statements 2009.
About SMARTRAC N.V.
SMARTRAC is a leading developer, manufacturer and supplier of RFID (Radio
Frequency Identification) components for a broad bandwidth of applications
in all current frequency standards. The company produces ready-made as well
as customized transponders for public transport, access control, animal
identification, industry and logistics.
SMARTRAC is the global leader in high-quality RFID inlays for passports
with integrated, contactless chips (e-Passports), contactless credit cards
(e-Payment) as well as for RFID transponders for public transportation
applications and car immobilizers. 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 2.700 employees and maintains a global research and
development, production and sales network.
Forward-looking statements
To the extent that this press release contains forward-looking statements,
such statements are based on assumptions, planning and forecasts at the
time of publication of this press release. Forward-looking statements
always involve uncertainties. Business and economic risks and developments,
the conduct of competitors, political decisions and other factors may cause
the actual results to be materially different from the assumptions,
planning and forecasts at the time of publication of this press release.
Therefore, SMARTRAC N.V. does not assume any responsibility relating to
forward-looking statements contained in this press release. Furthermore,
SMARTRAC N.V. does not assume any obligation to update the forward-looking
statements contained in this press release.
Andreas Schwarzwälder
Investor Relations
Phone: +31 20 30 50-156
Email: andreas.schwarzwaelder@smartrac-group.com
Tanja Möhler
Corporate Communications
Phone: +31 20 30 50-157
Email: tanja.moehler@smartrac-group.com
15.03.2010 07:32 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Medienarchiv at |[![CDATA[|[a href="http://www.dgap-medientreff.de"|]www.dgap-medientreff.de|[/a|]]]|] and |[![CDATA[|[a href="http://www.dgap.de"|]www.dgap.de|[/a|]]]|]
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Language: English
Company: 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
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