Repositioning on the capital market: Feintool plans capital increase for further growth Mittwoch, 22. Mai 2013 - 07:00

This press release or the information contained therein is not being issued and may not be distributed in the United States of America, Canada, Australia or Japan and does not constitute an offer of securities for sale in such countries.

Feintool and its major shareholder plan a capital increase totalling up to CHF 45 million along with a placement of shares which will increase the free float to more than 40 percent. The internationally active industrial group is returning to the capital market to continue with the growth strategy embarked upon in recent years.  

Feintool International Holding AG is planning a capital increase totalling up to CHF 45 million by granting subscription rights to the existing shareholders. Up to 557,871 new registered shares with a nominal value of CHF 10 per share are to be offered for subscription from authorized capital. This is equivalent to a ratio of one new share for seven existing shares.

In this context, Artemis Beteiligungen III AG, which is controlled by the Swiss industrialist Michael Pieper, has decided to reduce its current shareholding in Feintool from 79.4% to 50.1%. As a result, the free float will increase from its present level of 9% to more than 40%. Artemis Beteiligungen III AG has committed itself to a staggered holding period of 18 months for its remaining shareholding and additional 18 months for half of the shareholding.

The capital increase is intended to raise Feintool's equity ratio from 35.2% of total assets (as of 31 March 2013) to around 45% in order to create financial flexibility for the future growth of the company.

"The capital increase will enable us to continue with our strategy of focusing on fineblanking and forming, which has been in place since 2009 and requires extensive investments. Based on the existing nominated product programmes, we anticipate medium-term sales of CHF 600 million which we can achieve with the existing capital structure. Over and above this, the inflow of funds generated by the capital increase should enable us to secure additional growth potential in the years ahead. We already have promising enquiries from the US, China and Germany", says Feintool's Board Chairman Alexander von Witzleben, explaining the rationale behind the plan.

The final conditions and timetable for the capital increase are expected to be announced in June 2013. Bank Vontobel AG and Joh. Berenberg, Gossler & Co. KG have been entrusted with executing the transaction. Zürcher Kantonalbank is also a member of the syndicate.

Feintool strategy:
successful specialization
In recent years Feintool has concentrated heavily on its core competencies of fineblanking and forming; these now account for about 90% of Group sales. As the technology leader, Feintool has developed new innovative fineblanking presses, including some aimed specifically at the Asian market. As a partner to global automotive suppliers and a manufacturer of sophisticated components, Feintool specializes in the mass production of high-precision components for seat mechanisms, drive trains and safety systems. The internationalization of the Feintool Group has been pursued energetically through the restructuring of the plant in Nashville (USA) and the opening of a manufacturing facility in Taicang (China) and a third factory in Atsugi (Japan). In 2012 Feintool also continued with its extensive investment strategy, thanks to which the Group now has one of the most up-to-date ranges of fineblanking machinery on the market anywhere in the world today.

Market growth and market shares
Feintool's manufacturing activities are located mainly in Germany, the US, Japan and China - the major automotive markets where its products are actually sold. Together, these markets represent solid yearly growth estimated at 3% for the period up to 2025. This regional presence in strong markets protects Feintool from exchange rate fluctuations and offers sound growth prospects. The strategy of specialization, internationalization and investment in highly productive facilities started to bear fruit in 2012: recent financial years have seen Feintool receive higher-than-average nominations for new product programmes. These will result in a further increase in sales over the next few years if the economic situation remains stable. On this basis, the Group is aiming for sales of CHF 600 million and an EBIT margin of around 8% over the medium term.

Result for first quarter of 2013:
sales and earnings in line with expectations
The Feintool Group is benefiting from its strong market position and expansion in related processes. Overall, the industrial group's sales amounted to CHF 113.0 million - a year-on-year increase of 14.4%. This growth was the result of the chipless forming process acquisition completed in the previous year. In organic terms, sales were down by CHF 1.8 million on account of the weaker market environment. Business in the individual segments followed a similar trend.

Earnings before interest, taxes, depreciation and amortization (EBITDA) fell by CHF 2.5 million to CHF 11.0 million during the quarter under review. The EBITDA margin was 9.7%. Without the previous year's special effects (sale of IMA Berlin), EBITDA increased by CHF 0.2 million, although the result was impaired by start-up costs at the sites in Taicang (CN) and Nashville (USA).

During the quarter under review the higher sales were not sufficient to fully compensate for the increase in depreciation resulting from the large-scale investments. However, this is the nature of business in the System Parts segment, which requires the early installation of manufacturing equipment that can only be fully utilized over the years as the output of new products is ramped up. As a result, EBIT fell to CHF 4.4 million after deduction of one-off effects of CHF 2.5 million. The EBIT margin declined to 3.9%. All regions and segments generated a positive operating result. Consolidated net income stands at CHF 2.4 million or 2.1% of sales.

Outlook spelled out in greater detail
Despite dwindling sales in the premium automotive segment in all European markets, overall we expect a stable level of activity for the sector in global terms. We remain cautiously optimistic about 2013. We expect group sales of approximately CHF 480 million and - due to additional development costs for the start-up of new products - a slightly lower operating margin than in 2012.

Further information may be obtained from Karin Labhart, Media Spokesperson, at any time by calling +41 (0)32 387 51 57 or e-mailing karin.labhart@feintool.com.

Brief profile of Feintool
Feintool is the world's leading technology group specializing in the development of fineblanking systems and the production of ready-to-install fineblanking and forming components, notably for the automotive industry. Feintool maintains close partnerships with its customers across the entire fineblanking and forming process - from component design, toolmaking and system construction through to large-scale series parts production. In addition to fineblanking, the Feintool Group also deploys other key processes such as precision forming and orbital technology, and is the world's only supplier of all-round solutions for the cost-effective manufacture of complex precision components. A further brand in its portfolio is IMA Automation - a leading manufacturer of automated assembly systems.

With its locations in Europe, Japan, China and the USA, Feintool Group is represented in the world's major automotive markets. Headquartered in Lyss, Switzerland, the Group has a headcount of just under 2,000. At its various locations, Feintool provides training at any given time for about 100 young people in a number of skills (multiskilled mechanics, design engineers and commercial trades).

Key financial figures in brief

1. Adjusted to revised IAS standard 19 

2. CHF 3.3 million in sales at IMA Automation Berlin, which has now been disposed of 

3. CHF 2.6 million in orders received at IMA Automation Berlin, which has now been disposed of 

For detailed information on Feintool's results for the first quarter of 2013, please visit http://www.feintool.com/en/company/investor-relations.html.

Disclaimer

This document does not constitute an offer of securities for sale in the United States of America, Germany, or any other jurisdiction.  Securities may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. There will be no offering of securities in the United States.

This document constitutes neither an offer to sell nor a solicitation to buy securities of the Company and it does not constitute a prospectus within the meaning of article 652a and/or 1156 of the Swiss Code of Obligations or a listing prospectus within the meaning of the listing rules of the SIX Swiss Exchange. The offer will be made solely by means of, and on the basis of, a securities prospectus which is to be published.  An investment decision regarding the publicly offered securities of the Company should only be made on the basis of the securities prospectus. The securities prospectus is expected to be published in June and will be available free of charge at Bank Vontobel AG (telephone: +41 58 283 70 03, facsimile: +41 58 283 70 75, e-mail: prospectus@vontobel.ch).

This communication is directed only at persons (i) who are outside the United Kingdom or (ii) who have professional experience in matters relating to investments and who fall within article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the "Order") or (iii) who fall within article 49(2)(a) to (d) ("high net worth companies, unincorporated associations etc.") of the Order (all such persons together being referred to as "Relevant Persons").  Any investment or investment activity to which this communication relates is available only to Relevant Persons and will be engaged in only with Relevant Persons. Any person who is not a Relevant Person must not act or rely on this communication or any of its contents.

In connection with the offer or sale of the securities referred to herein, the Global Coordinators and Joint Bookrunners may over-allot the securities or effect transactions with a view to supporting the market price of the securities at a level higher than that which might otherwise prevail. Any stabilisation action or over-allotment will be conducted by Bank Vontobel AG (on behalf of the Managers) in accordance with all applicable laws and rules. Save as required by law or regulation, the Global Coordinators and Joint Bookrunners do not intend to disclose the extent of any stabilisation action. No representation is made as to whether the Global Coordinators and Joint Bookrunners will engage in any stabilisation activity or that this activity, if commenced, will not be discontinued without notice.

Feintool International Holding AG
Industriering 8
CH-3250 Lyss
Switzerland

Media spokesperson

Karin Labhart
Phone +41 (0)32 387 51 57
Mobile +41 (0)79 609 22 02
karin.labhart@feintool.com
www.feintool.com

The press release can be downloaded from the following link: