Swisslog with increased sales and operating profit

Record-high order intake for the Healthcare Solutions division

 

Buchs/Aarau, 7 March 2013 – Swisslog’s net sales in the 2012 fiscal year rose to MCHF 652.0, which is equivalent to an increase of 13.4% year-on-year. The provider of automated logistics solutions to hospitals and distribution centers succeeded in increasing its EBIT by 33.3%, to MCHF 25.6. However, restructuring expenses took their toll on net profit. Swisslog sees positive growth in profitability for the current fiscal year.

 

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  Swisslog closed the 2012 fiscal year with a satisfactory overall result. There was an increase in both net sales and EBIT. The Healthcare Solutions division (HCS) in particular experienced a positive development, once again with record-high order intake, and it acquired its biggest order ever in the growing market of Asia. As expected, order intake for the Warehouse & Distribution Solutions division (WDS) fell year-on-year. The decrease is attributable to the fact that, in the previous year, the division succeeded in receiving a major order with an extraordinarily large order value.

Expansion in Asia – new markets in Europe Swisslog remains well positioned in its target markets (i.e., for the HCS division, in the hospital sector, and, for the WDS division, in the retail, food and beverage market as well as the pharma sector). Both divisions have invested in innovations, which are now reaching market-readiness. For example, HCS, together with an American company called JBT, has developed a new generation of automated guided vehicles for hospitals, which will be brought onto the market in 2013. In addition, HSC launched the UniPick picking solution for hospital outpatient pharmacies on the Chinese market. Swisslog sees great potential for growth in this segment. In North America, it expanded its portfolio in the field of automated drug management systems with MedTower. The WDS division introduced two innovative picking systems onto the market. From a geographical point of view, emphasis is to be placed on Asia. Swisslog has invested heavily in the expansion of the organization there. Furthermore, Swisslog is now represented by both divisions on the Turkish and Polish markets.

Lower order intake – higher net sales The Group's order intake reduced year-on-year by 9.3% (−11.6% in constant currencies) to MCHF 632.4 and thus remained within the range expected. Three large orders (projects with order volumes larger than MCHF 20) were won in the 2012 fiscal year—about just as much as in the previous year. However, the order volume of these large orders was significantly lower than for the year prior. The margin in order intake experienced positive growth, which will improve profitability next year.

Based on the higher order backlog in relative terms at the end of 2011, net sales got a substantial increase, climbing to MCHF 652.0 (+13.4%, or +10.8% in constant currencies). These higher net sales led to a rise in operating profit before interest and taxes (EBIT) and before restructuring expenses, which brought it up to MCHF 25.6 (+33.3%, or +23.4% in constant currencies). The progress of HCS and the reduced fixed costs in corporate headquarters in particular have contributed significantly to the better operating profit. The EBIT margin also increased from 3.3% to 3.9% as a result. Swisslog is thus on track to achieve its target margin of 5% by 2014.

Positive effects of Score! Swisslog put special emphasis on the Score! program in the 2012 fiscal year, which aims to improve profitability. With this program, structures in the whole company were optimized during the year under review in order to sustainably increase profitability by MCHF 8–10 by 2014. This was carried out on the one hand via cost optimizations, and on the other by realizing potential for growth. Various sub-projects were almost completed by the end of 2012 and resulted in restructuring expenses that affected the financial result in 2012 amounting to a total of MCHF 8.0. Net profit thus fell by 33.3% (−40.5% in constant currencies) to MCHF 7.8.

The financial situation of Swisslog remains solid. The General Meeting will therefore propose that a dividend of CHF 0.02 per share be distributed.

HCS with significant improvement, WDS with more new business The growth of the Healthcare Solutions division is encouraging on all levels. In Europe, a return to profitable results was begun. In addition, the division's order intake came in strong in all three regions (North America, Europe, Asia), totaling a record-high MCHF 243.9 (+11.0%, or +6.8% in constant currencies). The division's solid growth in the growing market of Asia in particular is noteworthy, which is where HCS acquired its largest order ever. The division's order backlog climbed to MCHF 163.3 (+6.2%, or +8.2% in constant currencies). Positive growth was also seen in net sales, which came in at MCHF 219.3 (+6.6%, or +2.3% in constant currencies), and EBIT before restructuring expenses, which came in at MCHF 18.0 (+40.6%, or +32.0% in constant currencies). The division succeeded in increasing its EBIT margin from 6.2% to 8.2% and is thus approaching its target value of 10%.

The profit that came in for the Warehouse & Distribution Solutions division was not entirely satisfactory. The division's order intake fell, as expected, to MCHF 388.5 (−18.6%, or −20.1% in constant currencies). The division's order backlog, which came in at MCHF 324.1 (−11.4%, or −11.7% in constant currencies), is lower than it was the year prior, while the quality of the order backlog in terms of margins is better than in the previous year. Net sales increased by 17.2% (+15.5% in constant currencies) totaling MCHF 432.7. This growth in net sales has not led to an improvement in EBIT, because the lower-margin new business in particular was increased. EBIT before restructuring expenses amounted to MCHF 15.6 (+2.0%, or −3.3% in constant currencies), and the EBIT margin fell from 4.1% to 3.6%. The targeted EBIT margin remains at 5%.

New executive management and new head of WDS The 2012 fiscal year was also characterized by two important staff changes. Remo Brunschwiler, CEO of the Swisslog Group since 2003, left the Company effective the end of December 2012 to take over the lead of the Selecta Group. The Board of Directors subsequently decided to streamline the management structure of the Group. Chairman of the Board of Directors Hans Ziegler has taken over the lead of the Executive Committee as of January 1, 2013. In addition to Hans Ziegler, Karl Pühringer, Head of the Healthcare Solutions division, and Joe Doering, the new Head of the Warehouse & Distribution Solutions division, as well as Christian Mäder as Chief Financial Officer are now part of the Executive Committee. Christian Mäder also heads up the Corporate Center.

Positive outlook Swisslog sees positive growth in profitability for 2013, especially as a result of the improved margin in its order backlog and the positive effects of Score! Given the background of large economic uncertainties, especially in Europe, expectations are, however, more on the conservative side. Swisslog sees a substantially more positive outlook for its business in Asia, where we expect further growth for 2013. We also see growth in the U.S. market in a positive light. Swisslog expects stable net sales for 2013, along with an increased EBIT margin of between 4.0% and 4.5%.

Calendar 11 April 2013: 2013 General Meeting of Shareholders 29 May 2013: Investor Day 20 August 2013: Publication of 2013 Half-Year Result

 

Contact Swisslog Holding AG Reto Sidler Head Corporate Communications Tel.: +41 (0)62 837 95 36 Fax: +41 (0)62 837 95 55 E-mail: reto.sidler@swisslog.com Internet: www.swisslog.com

Swisslog Holding AG Christian Mäder Chief Financial Officer Tel.: +41 (0)62 837 95 64 Fax: +41 (0)62 837 95 10 E-mail:christian.maeder@swisslog.com Internet: www.swisslog.com

  About Swisslog Swisslog is a global provider of integrated logistics solutions for warehouses, distribution centers and hospitals. Its comprehensive services portfolio ranges from building complex warehouses and distribution centers to implementing Swisslog's own software and technology to intra-company logistics solutions for hospitals.

Swisslog’s solutions optimize customers’ production, logistics and distribution processes in order to increase flexibility, responsiveness and quality of service while minimizing logistics costs. With years of experience in the development and implementation of integrated logistics solutions, Swisslog provides the expertise that customers in more than 50 countries around the world rely on.

Headquartered in Buchs/Aarau, Switzerland, Swisslog currently employs over 2000 staff in 20 countries worldwide. The group’s parent company, Swisslog Holding AG, is listed on the SIX Swiss Exchange (security number: 1232462, Telekurs: SLOG, Reuters: SLOG.S). Note: Swisslog refers to an order as “major order” if its financial volume exceeds the threshold of MCHF 20.

For more information, please visit www.swisslog.com

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