SMARTRAC N.V. / Interim Report
30.07.2009
Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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SMARTRAC reports on first six months 2009: Growth of 19 percent in sales
with profitability at 11 percent EBITDA margin
- Sales H1 2009: Euro 59.1 million, accounting for an increase of 19
percent on the euro 49.6 million generated in H1 2008
- EBITDA H1 2009: Decline to euro 6.6 million compared to euro 11.5
million in H1 2008, profitability at 11 percent EBITDA margin
- Outlook 2009: Management expects improvement in the second half of the
year and confirms guidance for the full year
- Dr. Christian Fischer, CEO: 'In an ongoing challenging economic
environment, the SMARTRAC Group continued to deliver sales growth. The
effects of the global recession significantly affected our
profitability, but we are confident to increase sales and profitability
in the second half to achieve our today confirmed guidance.'
Amsterdam, July 30, 2009 - The TecDAX listed company SMARTRAC N.V. today
announces financial figures for the six-month period ended 30 June 2009.
Despite a demanding situation presented by the continued challenging
economic environment, SMARTRAC reports sales growth of 19 percent from euro
49.6 million in H1 2008 to euro 59.1 million in H1 2009. SMARTRAC had to
confront the significant volatility in its global production network caused
by a less long-term order behavior across all business units. The
associated effects on its efficiency and profitability in combination with
unfavorable performance of the U.S. production facility and significant
ramp-up costs in Malaysia, EBITDA decreased by 42 percent from euro 11.5
million to euro 6.6 million. Profit for the period amounted to euro 1.8
million compared to euro 8.2 million a year ago.
SMARTRAC financial figures at a glance:
<pre>
Key data
In thousands of Consolidated Consolidated Change
euro 6 months ended 6 months ended in %
30 June 2009 30 June 2008
Consolidated income
statement
Revenues 59,087 49,605 19
EBITDA 6,608 11,468 (42)
Profit for the period 1,845 8,171 (77)
Financial position and
liquidity
Net cash flow provided by (1,509) 8,758 (117)
used in) operating
activities
Working capital 31,935 21,584 48
Capital expenditure 3,578 7,488 (52)
Total Assets 174,283 114,681 52
Operating Figures
Basic earnings per share 0.14 0.62 (77)
(euro)
Operating cash flow per (0.11) 0.66 (117)
share (euro)
Equity ratio (%) 58 78 (26)
Headcount (at month's 2,543 2,739 (7)
end)
</pre>
Group revenues
The SMARTRAC Group generated revenues of euro 59.1 million in the first six
months of 2009. This represents an increase of 19 percent from the previous
year figure of euro 49.6 million. The growth is attributable to a favorable
performance of the Cards business unit and the Industry & Logistics
business unit. The Industry & Logistics business unit includes revenues
from Sokymat Automotive GmbH. Sokymat Automotive GmbH is consolidated since
26 September 2008.
Revenues in SMARTRAC's Security segment (Cards and eID business unit)
amounted to euro 45.0 million compared to sales of euro 44.9 million in
2008. Existing and new ePassport and eID projects around the world and a 19
percent growth in the Cards business unit were able to compensate
significant demand driven decline in deliveries to the U.S. ePassport
project. In H1 2009 the Security Segment accounted for 76 percent of total
Group revenue compared to 91 percent a year ago.
Revenues in the Industry segment (Industry & Logistics and Tickets & Labels
business unit) accounted for euro 13.6 million in H1 2009 representing an
increase of 250 percent compared to sales of euro 3.9 million in H1 2008.
The 2009 sales represent a 23 percent share in the overall sales of the
company compared to 8 percent a year ago. Beside organic growth, this
increase is a result of the consolidation of Sokymat Automotive GmbH.
Group EBITDA
The Group EBITDA of euro 6.6 million (H1 of previous year: euro 11.5
million) is equivalent to an EBITDA margin of 11 percent. The decline was
prompted to a very volatile utilization of SMARTRAC's production capacity
in the first six months of 2009 and negative effects from the U.S. factory
as well as the ramp-up in Malaysia and a change in product mix.
The Security segment reached an EBITDA of euro 7.7 million. This represents
a decrease of 40 percent compared to EBITDA of euro 12.9 million a year
ago. A higher proportion of microchip sourcing and significant lower U.S.
ePassport sales are the reasons for the disproportionate development.
The Industry segment reported an EBITDA of euro 0.5 million in H1 2009
compared to an EBITDA of euro - 0.3 million recorded in the same period of
2008. Cost measures have balanced to a certain extend the significant
decline in the automotive industry but the segment profitability is
affected by significant ramp-up costs for the production in Malaysia.
Profit for the period
At euro 1.8 million, profit for the period was down 77 percent on the
previous year's euro 8.2 million. The total comprehensive income for the
period including translation effects of foreign exchange rates amounts to
euro 1.6 million in H1 2009 and euro 8.1 million, respectively.
Financial position
Accounting for euro 174.3 million, the total assets of the consolidated
interim balance sheet as of 30 June 2009 were two percent below the
year-end figure 2008 of euro 177.4 million. The consolidated interim
balance sheet shows equity of euro 100.5 million, representing a two
percent increase compared to euro 98.2 million at 31 December 2008.
SMARTRAC's equity ratio of 58 percent, the net debt position of euro 27.4
million and the completion of the euro 65 million refinancing package,
provide a solid financial basis to develop the business and surmount the
current economic recession.
Net cash used in operating activities in the first six months of 2009
amounted to negative euro 1.5 million compared to a positive inflow of euro
8.8 million a year ago. The decrease of operating cash flow is mainly
attributable to a decrease in net profit combined with an increase in
working capital mainly due to the shift in sales towards the end of the
quarter.
Business outlook
Although developments in the global macroeconomic environment remain
volatile, the first signs of an economic stabilization should provide the
basis for the expected improvement in the second half of 2009. Within the
SMARTRAC business, signs of recovery can be seen in the automotive business
and in the U.S. ePassport project. In collaboration with growth
opportunities in card-related and industry applications as well as in
animal identification and in the Ticket & Label business, SMARTRAC's broad
business portfolio provides a solid base to confront and master the ongoing
challenges posed by the current economic environment.
For these reasons, SMARTRAC reaffirms its guidance for the full fiscal
year. The Management is convinced that the business will grow organically
in the course of 2009 and that SMARTRAC on a full year basis will continue
to be a profitable and cash generating company.
'We had a very challenging first half of the business year 2009.
Nevertheless, we delivered growth and we are confident to improve our
profitability in the second half of the year,' said Dr. Christian Fischer.
'The completion of our refinancing package for the next three years, the
strong position in the RFID value chain and the evident growth potential of
the RFID market provide the strategic framework for SMARTRAC's growth in
the coming years.'
The SMARTRAC Interim Report for the six month period ended 30 June 2009 has
been published today and is available for download on the company's website
at www.smartrac-group.com.
About SMARTRAC N.V.
SMARTRAC is a leading manufacturer and supplier of RFID (Radio Frequency
Identification) transponders for a broad bandwidth of applications in all
current frequencies. The company produces ready-made as well as customized
transponders for public transport, access control, automotive, animal
identification, industry and logistics. SMARTRAC is the global leader in
high-quality RFID inlays for passports with integrated, contactless chips
(ePassports) and contactless credit cards (ePayment). 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 2.500 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.
SMARTRAC N.V.
Andreas Schwarzwälder
Investor Relations
+31 20 30 50 156
andreas.schwarzwaelder@smartrac-group.com
Tanja Möhler
Corporate Communications
+31 20 30 50 157
tanja.moehler@smartrac-group.com
DGAP 30.07.2009
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Language: English
Issuer: 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
End of News DGAP News-Service
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DGAP-News: SMARTRAC N.V.: SMARTRAC reports on first six months 2009
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