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Jenoptik posts a good start to the year in the first quarter of 2017

Preview Interim Report Q1
  • Group revenue rose by 3.5 percent to 163.7 million euros
  • EBIT improved by 13.0 percent to 11.0 million euros
  • Significant 39.7 percent rise in order intake to 221.3 million euros
  • Dr. Stefan Traeger has been the new President & CEO since May 1st
  • Executive Board confirms 2017 guidance based on current business performance and excellent order situation

As expected, the Jenoptik Group made a solid start into the 2017 fiscal year and saw further increases over the first quarter, particularly in terms of orders, revenue and earnings.

“We made a good start into the new fiscal year and over the first quarter of 2017 managed to build on the successful development of business seen in prior quarters. This, in particular, was facilitated by our broad business base and the increasing internationalization of the Jenoptik Group. An excellent order situation, our consistent focus on megatrends and target markets, and a solid financial footing will also help us to achieve sustainably profitable growth in the future,” says Hans-Dieter Schumacher, CFO of JENOPTIK AG.

Revenue up 3.5 percent, particularly strong growth in the Americas

Group revenue rose to 163.7 million euros (prior year 158.2 million euros), with growth seen in optical systems for the information and communication technology as well as the semiconductor equipment industries. The Group also registered stronger demand in the medical technology and traffic safety industries, as well as for metrology from the automotive industry.

On a regional level, growth momentum was primarily attributable to the Americas, where revenue increased sharply, by 38.8 percent to 34.9 million euros (prior year 25.1 million euros). All three segments contributed to this positive development. Overall, Jenoptik generated 68.6 percent of its revenue abroad (prior year 65.3 percent).

EBIT sharply up again on back of profitable revenue mix

In the first three months of 2017, EBIT improved at a faster rate than revenue. At 11.0 million euros, the operating result was 13.0 percent up on the prior year (prior year 9.7 million euros) thanks to a strong contribution from the Optics & Life Science segment. The EBIT margin of 6.7 percent was higher than in the prior year (prior year 6.1 percent). In addition to slightly higher selling expenses, earnings were also influenced by increased administrative expenses, in part associated with changes on the Executive Board. Earnings before interest, taxes, depreciation and amortization (EBITDA) also increased more sharply than revenue, by 6.5 percent to 17.7 million euros (prior year 16.6 million euros).

Strong order situation and solid financial resources are the basis of successful corporate development

By the end of March 2017, the order intake in the Jenoptik Group had reached a record high for a first quarter, and at 221.3 million euros was 39.7 percent up on the prior-year figure of 158.4 million euros. The book-to-bill ratio, that of order intake to revenue, was consequently also sharply up on the prior year at 1.35 (prior year 1.00). At 461.0 million euros, the order backlog was 13.8 percent above the figure at the end of 2016 (31/12/2016: 405.2 million euros). All three segments contributed to the increase in order figures. There were also frame contracts (framework agreements with customers) worth 156.5 million euros (31/12/2016: 160.9 million euros).

Thanks to a still good free cash flow of 10.2 million euros (prior year 12.0 million euros), the Jenoptik Group remained, at minus 21.8 million euros, free of net debt in the first quarter (31/12/2016: minus 17.9 million euros).

Increase in employee numbers abroad

As of March 31, 2017, the number of employees in the Jenoptik Group increased slightly compared to year-end 2016, to 3,574 (31/12/2016: 3,539 employees). The number of employees abroad grew in the course of the international expansion of business and due to first-time consolidations. At the end of March 2017, 730 people were employed at the foreign locations (31/12/2016: 686 employees), bringing the total workforce abroad up to 20.4 percent (31/12/2016: 19.4 percent).

Revenue growth and improved order situation in all three segments

In the first three months of 2017, the Optics & Life Science segment generated revenue of 59.0 million euros, an increase of 13.0 percent (prior year 52.2 million euros). EBIT saw a significant improvement of 87.1 percent to 9.7 million euros (prior year 5.2 million euros), particularly due to strong demand for optical system solutions and good development in the lasers area following completion of implemented measures. In the first three months of 2017, the segment thus achieved an EBIT margin of 16.5 percent (prior year 10.0 percent). The segment posted a pleasing 30.5 percent increase in its order intake to 77.1 million euros (prior year 59.1 million euros). Set against revenue, this resulted in a book-to-bill ratio of 1.31 (prior year 1.13). By the end of March 2017, the order backlog in the segment was worth 97.2 million euros (31/12/2016: 80.7 million euros). There were also frame contracts worth 14.1 million euros (31/12/2016: 14.5 million euros).

In the first three months of 2017, revenue in the Mobility segment came to 54.8 million euros, slightly up on the prior-year figure (prior year 52.1 million euros). Automotive business developed at a stable rate in the first quarter. Business with traffic safety technology saw minor growth. EBIT in the segment fell by 59.7 percent to 0.9 million euros (prior year 2.3 million euros). The EBIT margin accordingly fell to 1.7 percent in the first quarter (prior year 4.4 percent). This development was mainly due to entry into new business fields and the start-up costs for customer-specific projects. These include the toll project awarded to Jenoptik in 2016, on which the company will act as a development and technology partner to deliver new systems to monitor truck toll payments on Germany’s federal highways by 2018. The segment posted a 15.0 percent increase in its order intake to 74.5 million euros (prior year 64.8 million euros). The order backlog grew 18.3 percent to 128.1 million euros (31/12/2016: 108.3 million euros). There were also frame contracts worth 80.8 million euros (31/12/2016: 79.1 million euros).

At the end of the first three months, the Defense & Civil Systems segment had achieved revenue in the amount of 50.2 million euros. As expected, this revenue was 7.7 percent below the figure for the prior-year quarter (prior year 54.4 million euros), which saw particularly strong revenues in the field of energy and sensor systems due to the settlement of several major projects. Despite a weaker development of revenue, EBIT of 3.2 million euros remained stable at the prior-year level (prior year 3.2 million euros), primarily the result of good service business and a changed product mix. In the period covered by the report, the EBIT margin accordingly improved to 6.3 percent (prior year 5.8 percent). The segment order intake saw a sharp rise of 85.7 percent to 69.8 million euros (prior year 37.6 million euros). The book-to-bill ratio doubled from 0.69 as at December 31, 2016 to the current figure of 1.39. Due to the very good order intake, the segment’s order backlog also grew by 19.2 million euros in value to 237.1 million euros (31/12/2016: 217.8 million euros). There were also frame contracts worth 61.6 million euros (31/12/2016: 67.4 million euros).

Dr. Stefan Traeger has been President & CEO of JENOPTIK AG since May 1, 2017

With effect from May 1, 2017, Dr. Stefan Traeger has been the new President & CEO of the Jenoptik Group. The 49-year-old succeeds Dr. Michael Mertin, who has left Jenoptik after almost ten years of service as CEO. Dr. Stefan Traeger was formerly a member of the group management at the Swiss listed company Tecan Group AG. The holder of a doctorate in physics, Dr. Traeger has extensive experience in a range of management positions in the photonics industry and worked at companies such as Leica Microsystems and the Carl Zeiss Group prior to his position at Tecan. “I look forward to my new challenging role, and to playing an active part in shaping the successful development of the company,” says Dr. Stefan Traeger.

2017 guidance confirmed

Following good development of business as scheduled in the first quarter of 2017, the Executive Board of JENOPTIK AG has confirmed the guidance for the current fiscal year it published in March 2017. Based on a very good order and project pipeline, the Executive Board is anticipating organic growth in revenue and earnings for 2017. Group revenue is expected to come in at between 720 and 740 million euros. All three segments will contribute to growth. Jenoptik is also expecting EBIT – on the basis of continuing operations – to rise in 2017. Depending on the development of revenue, the EBIT margin is forecast within the range of 9.5 to 10.0 percent.

“Our other plans also remain unchanged: by 2018, we aim to increase annual revenue to around 800 million euros – including smaller acquisitions – and achieve an EBIT margin of around 10 percent. The share of revenue in our focus regions of the Americas and Asia/Pacific combined will then grow to over 40 percent of group revenue,” says CFO Hans-Dieter Schumacher.

The Interim Report is available in the “Investors/Reports and Presentations” section of the website. Images are available for download from the Jenoptik image database in the “Current Events/Financial Reports” gallery.

This announcement can contain forward-looking statements that are based on current expectations and certain assumptions of the management of the Jenoptik Group. A variety of known and unknown risks, uncertainties and other factors can cause the actual results, the financial situation, the development or the performance of the company to be materially different from the announced forward-looking statements. Such factors can be, among others, changes in currency exchange rates and interest rates, the introduction of competing products or the change of the business strategy. The company does not assume any obligation to update such forward-looking statements in the light of future developments.

About Jenoptik

As an integrated photonics group, Jenoptik divides its activities into three segments: Optics & Life Science, Mobility as well as Defense & Civil Systems. Its customers around the world mainly include companies in the semiconductor equipment industry, automotive and automotive supplier industry, medical technology, security and defense technology as well as the aviation industry. Jenoptik has about 3,600 employees worldwide and generated revenue of approx. 685 million euros in 2016.

Contact

Point of contact Katrin Lauterbach - Head of Corporate Communications and Marketing Jenoptik

Katrin Lauterbach

Head of Corporate Communications and Marketing

+49 3641 65-2255

+49 3641 65-2484

Point of Contact Thomas Fritsche - Head of Investor Relations

Thomas Fritsche

Head of Investor Relations

+49 3641 65-2120

+49 3641 65-2804

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