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Kardex AG: Encouraging year for the Kardex Group

Media information Zurich, 14 March 2013 Kardex Group Encouraging year for the Kardex Group The Kardex

Kardex AG / Key word(s): Final Results


14.03.2013 06:00


Release of an ad hoc announcement pursuant to Art. 53 KR



Media information


Zurich, 14 March 2013


Kardex Group


Encouraging year for the Kardex Group


The Kardex Group has had a good financial year, supported by strong team

performances, consolidated market positions and despite some clouds on the

horizon, a generally positive economic climate. The measures introduced

last year are taking effect and the changes in strategic alignment have

been implemented. This has led to progressive improvements in results, both

at a revenue and in particular at an income level. The target margins for

2012 were achieved in the two major divisions Kardex Remstar and Kardex

Stow, and the foundations for achieving the turnaround were laid in Kardex

Mlog. With a much improved equity ratio, with no goodwill or capitalized

tax loss carry-forwards included , and a net cash position in the

double-digit million range, Kardex had a solid balance sheet at year end.

This gives us full business independence and flexibility, and also enables

us to pay dividends to shareholders again.


The Group's 2012 net revenues of EUR 484.4 million were 5.5% up on 2011.

This increase in revenues, coupled with efficiency increases and controlled

cost management, have had a distinctly positive effect on the Group result.

With an EBITDA of EUR 37.7 million (EUR 21.5 million), an EBIT of EUR 27.6

million (EUR 10.4 million) and a net result of EUR 21.4 million (EUR 3.0

million) or earnings per share of CHF 3.34 (CHF 0.59), the Group generated

an encouraging result. The return on capital employed (ROCE) increased to

21.2% (7.6%).


At EUR 489.7 million, bookings were up slightly compared with last year's

already strong performance (EUR 480.2 million). Despite some levelling off

of incoming orders during the year, the order books continue to be well

filled at year end, at EUR 154.9 million (EUR 148.5 million).


Strategic changes to divisions put in place


The positive momentum in the Kardex Group continues. Following the shift in

business responsibility to the divisions in summer 2011, the strategic

focuses of the Group and the divisions were reviewed and defined.

Strategies were then consistently revised and refined at divisional level.

The Board of Directors definitively approved the divisions' strategic

alignment and the resulting measures in June 2012. The Group Executive

Committee has drawn up an investor handbook to improve the understanding of

all stakeholders. This handbook can be downloaded from the corporate

website (, Investor Relations section).


Common to all divisions is the fact that they are their customers' partner

throughout the entire product or solution life cycle. This begins with

identifying customer requirements and continues throughout the planning,

development and implementation of customer-specific systems, right through

to ensuring a high level of availability and low lifecycle costs with the

aid of customer-oriented lifecycle management. Development expenditure is

being maintained at a high level for this purpose, and customer proximity

will be strengthened by increased investment in sales and service

organisations. Efforts to expand the service element in all divisions are

making good progress. In addition to better and more stable margins, this

will lead to a reduction in cyclicality.


Kardex Remstar doubles operating result


Kardex Remstar's dynamic storage and retrieval systems enjoyed solid demand

in the year under review. The division consolidated its market leadership

position with the expansion of its service business and a substantial

improvement in productivity. The division increased its revenues by 7.9% to

EUR 236.7 million (EUR 219.3 million) despite a cyclical weakening of

demand in southern Europe and a slowdown in Asia. This increase was

specifically the result of the encouraging performance of its service

operation, which grew by 12.2% and made a 27.9% (26.9%) contribution to

revenues. Operating profit (EBIT) increased by more than 100% from EUR 10.5

million in the previous year to EUR 23.1 million. This equates to a sound

EBIT margin of 9.8%, at the top end of our target range. With its

realignment in the US completed, its innovative product portfolio and the

centralisation of its European spare parts warehousing, Kardex Remstar is

well positioned, despite strong competition, to further consolidate the

sales and profitability figures it has achieved in 2012.


Kardex Stow profits from expanding sales and OEM business


Kardex Stow put in a promising performance in the year under review. With

revenues of EUR 181.6 million, the division exceeded the previous year's

figure by 7.6%. These higher volumes, but also the change in the marketing

and sales approach introduced in 2011 in the form of a clearer focus on

smaller and more profitable orders, combined with a targeted expansion of

its sales organisations in core European markets, has resulted in a

sustained improvement in margins. This division is also profiting from the

further expansion of its product range and the ongoing expansion of joint

initiatives with strong OEM and key account partners. Thanks to these new

products, it has also been able to lay the foundations for an own service

business. With an EBIT of EUR 9.1 million (EUR 3.6 million) and an EBIT

margin of 5.0% (2.1%), Kardex Stow is making good progress and is already

at the top end of the anticipated target range.


Despite this encouraging progress, the Kardex AG Board of Directors and the

management of Kardex Stow have in parallel over the last twelve months been

examining all possible ways of giving Kardex Stow even better opportunities

for development. A merger has been worked out with an industrial partner

that has a geographical profile which complements that of Kardex Stow. The

appropriate due diligence work and evaluation had been concluded and

defined at the time this Annual Report went to press. The definitive

financing of this transaction is still outstanding, and must be secured by

the industrial partner. If this does not come about in April 2013, the

Board of Directors has stated that the division will remain within the



Kardex Mlog: Legacy problems overshadow positive performance on products

and services front


Whereas the business model for the other two divisions was solid before the

strategic realignment took place, and their potential and actual

improvement is specifically the result of a more consistent implementation,

Kardex Mlog has had to modify its business model extensively, and it is

taking longer to implement. At EUR 71.3 million and EUR 72.2 million

respectively, sales and bookings in 2012 are slightly down on last year.

The main market of Germany accounted for 76% of these figures, and business

in surrounding countries showed an encouraging increase, representing 24%

of revenues. The increased focus on modernization projects and modular

industry solutions as well as end-to-end service offerings have reduced the

significance and risks of the systems business. But Kardex Mlog continues

to suffer from its legacy problems. In 2012, the division generated a

negative EBIT of EUR 3.0 million (EUR -2.4 million). This includes EUR 3.6

million for warranty work and provisions for major project orders in the

systems business, most of which were acquired during the years 2010 and

2011. Order quality is showing a significantly improved risk profile for

2013, and is forming the basis for a long-term return to profitability. The

standardized solutions for special industrial segments launched in 2012 are

being well received by the market and the drive to expand the services

business is starting to bear fruit. The proportion of revenues generated by

these services rose in the reporting period from 13.8% to 15.7%.


High free cash flow strengthens balance sheet and reduces financial



The largely encouraging progress in the divisions is also reflected

positively in the Group's key balance sheet figures. Despite higher

revenues, net working capital remained stable at EUR 72.1 million (EUR 71.8

million) and free cash flow rose strongly, reaching EUR 28.4 million (EUR

-7.8 million). The Group's net debt of EUR 15.6 million at the start of the

year has become a net cash position of EUR 12.4 million. This has had a

positive impact on net financial expenditure, which fell by more than half

to EUR 3.1 million compared with last year (EUR 6.4 million) and will be

reduced further. The tax rate remained low at 12.7%, thanks to the use of

tax loss carry forwards. Group equity stood at EUR 85.4 million at period

end, with the equity ratio rising to 36.2%, up from 25.5% at the end of

2011. The return on equity reached 25.1% (4.7%).


Management reorganization proves its worth


Following the General Meeting on 24 April 2012, Felix Thöni assumed the

office of President of the Executive Committee in his capacity as Executive

Member of the Board of Directors, a post he has held since June 2011. After

performing the dual role of Executive Chairman of the Board of Directors

for a period of one year, Philipp Buhofer has since been concentrating

solely on his duties as Board Chairman. Jakob Bleiker and Ulrich Looser

were elected as new Board members. The cooperation and division of tasks

within the Board of Directors are efficient and encouraging. The Board of

Directors will therefore propose to the General Meeting that all current

members be re-elected for a further one-year period of office. There were

no further changes to the Executive Committee following the 2012 General



Share price and proposal to pay dividend


The good result for the financial year and the solid balance sheet also

enable the Board of Directors to propose to the General Meeting that a

dividend be paid to shareholders. It will propose that a dividend of CHF

1.20 per share be paid from the reserve from capital contributions. This

will be tax-free for shareholders who are private Swiss individuals. The

financial community has also been taking note of the Group's operational

performance and results during the year under review. Interest in Kardex

shares was keen, and the company's market capitalization more than doubled

in 2012, reaching CHF 189 million.




The global debt crisis is not passing the industry by unnoticed. In

contrast to the US, investment momentum levelled off during the first half

of the year in (southern) Europe and in Asia, but has since remained

stable. The trend towards efficient and innovative intra-logistics

solutions remains unchanged.


So from today's perspective, the prospects for all the Group's business

areas continue to be rated as good. In the new financial year, the

Executive Committee is anticipating business to consolidate at its current

high level. But Kardex remains ready to respond promptly to any possible

worsening of the economic climate.




Contact for media and investors:

Edwin van der Geest

Investor Relations


Tel. +41 79 330 55 22




Calendar of events:

25 April 2013 2013 Annual General Meeting

22 August 2013 2013 Half-year-closing, Publication Interim

Report 2013

13 March 2014 2013 Year-end-closing, Publication Annual

Report 2013

2014 Media and analysts' conference

24 April 2014 2014 Annual General Meeting




2012 Annual Report


The full 2012 Annual Report of the Kardex Group is available at:



Kardex Group - Corporate Profile


The Kardex Group is a leading supplier of static and automated storage

solutions and materials handling systems. It consists of the three

corporate divisions Kardex Remstar, Kardex Stow and Kardex Mlog. Kardex

Remstar develops, produces and maintains shuttles and dynamic storage and

retrieval systems, Kardex Stow static storage systems, pallet shuttles and

automated mobile shelving systems and Kardex Mlog integrated materials

handling systems and automated high-bay warehouses. All divisions are

partners for their customers over the entire lifecycle of a product or

solution. This starts with an assessment of customer requirements and

continues via the planning, realization and implementation of

customer-specific systems through to ensuring a high level of availability

and low lifecycle costs by means of customer-oriented lifecycle management.

More than 2 000 employees in over 30 countries worldwide work for the

companies of the Kardex Group.




This communication contains statements that constitute 'forward-looking

statements'. In this communication, such forward-looking statements

include, without limitation, statements relating to our financial

condition, results of operations and business and certain of our strategic

plans and objectives. Because these forward-looking statements are subject

to risks and uncertainties, actual future results may differ materially

from those expressed in or implied by the statements. Many of these risks

and uncertainties relate to factors which are beyond Kardex's ability to

control or estimate precisely, such as future market conditions, currency

fluctuations, the behavior of other market participants, the actions of

governmental regulators and other risk factors detailed in Kardex's past

and future filings and reports and in past and future filings, press

releases, reports and other information posted on Kardex Group companies'

websites. Readers are cautioned not to put undue reliance on

forward-looking statements, which speak only of the date of this

communication. Kardex disclaims any intention or obligation to update and

revise any forward-looking statements, whether as a result of new

information, future events or otherwise.


Key Figures



EUR millions


1 January to 31 December 2012 2011 +/-%

Bookings 489.7 101.1% 480.2 104.6% 2.0%

Order backlog (31

December) 154.9 32.0% 148.5 32.3% 4.3%

Net revenues 484.4 100.0% 459.2 100.0% 5.5%

Gross Profit 118.4 24.4% 97.9 21.3% 20.9%

OPEX 90.8 18.7% 87.5 19.1% 3.8%

Operating result (EBIT) 27.6 5.7% 10.4 2.3% 165.4%

EBITDA 37.7 7.8% 21.5 4.7% 75.3%

Result for the period 21.4 4.4% 3.0 0.7% 613.3%

Earnings per share (EUR) 2.77 0.48 477.1%

Free cash flow 28.4 -7.8 n.m.

Return on capital

employed (ROCE) 21.2% 7.6% 178.9%


31.12.2012 31.12.2011 +/- %

Net working capital 72.1 71.8 0.4%

Net debt -12.4 15.6 n.m.

Equity / Equity ratio 85.4 36.2% 64.5 25.5% 32.4%

Employees (full-time

equivalents) 2'062 2'124 -2.9%





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Language: English

Company: Kardex AG

Thurgauerstrasse 40

8050 Zürich


Phone: +41 (0)44 419 44 79




ISIN: CH0100837282

Swiss Security Number: A0RMWK

Listed: Freiverkehr in Berlin, München, Stuttgart;

Frankfurt in Open Market ; SIX


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