(DGAP-Media / 2015-11-02 / 19:23)
Business picks up - Performance still below potential
- Sales of EUR 132.7 million (9M 2014: EUR 140.1 million) showing the expected improvements versus Q2
- EBITDA climbing to EUR 8.2 million (9M 2014: EUR 15.1 million) with Q3 adding EUR 3.9 million showing the highest
quarterly margin year to date
- exceet USA, Inc. successfully established
Luxembourg, 2 November 2015 - 06.30 p.m. - A low propensity to invest and reluctant call-ups from existing framework
agreements are still negatively affecting exceet's revenues and margins. Nevertheless the group managed to achieve 3.5%
higher revenues in Q3 2015 versus Q2. Revenues for the first nine months 2015 reached EUR 132.7 million (9M 2014: EUR
140.1 million) representing a decline of 5.3%.
The gross profit and the EBITDA results of the group have therefore still to be seen in the light of lower than
anticipated sales and utilization rates. For the first nine months exceet achieved an EBITDA of EUR 8.2 million (6.2% of
net sales) compared to EUR 15.1 million (10.8% of net sales) in 9M 2014. On 30 September 2015 exceet's order backlog
amounted to EUR 87.1 million which is at the level of 31 December 2014 (EUR 87.3 million).
Electronic Components, Modules & Systems (ECMS) contributed 71.8% to overall group sales. Net sales decreased to EUR
95.4 million during the first nine months of 2015, against EUR 99.2 million during the first nine months of 2014. The
segment achieved an EBITDA of EUR 11.4 million, accounting for an EBITDA margin of 11.9% compared to EUR 16.2 million or
a margin of 16.3% in the same period of the previous year.
For the intensification of its business and market development in the North American Market, exceet USA, Inc. was
established with opening a representative office on the US East Coast near Boston, MA. exceet USA is especially focused
on activities related to the health market.
ID Management & Systems (IDMS) accounted for 23.0% of the group sales. The revenue in the first nine months 2015
amounted to EUR 30.5 million, which represented a decrease of 12.9% compared to EUR 35.0 million in 9M 2014. IDMS
reported an EBITDA of EUR 1.4 million for the first nine months 2015 which results in an EBITDA margin of 4.5%. In the
same period of the previous year the segment achieved an EBITDA of EUR 2.3 million representing 6.6% EBITDA margin.
Currently IDMS has nearly full capacity utilization and has an optimistic view for the coming months. The card
specialist expects positive seasonal effects in the fourth quarter and year-end related orders.
exceet Secure Solutions (ESS) contributed 5,2% of total group sales. In the first nine months 2015 the segment generated
revenues of EUR 6.9 million. This reflects an increase by 13.1% compared to 9M 2014 revenues of EUR 6.1 million. EBITDA
for this reporting period reached minus EUR 0.3 million (9M 2014: minus EUR 0.2 million).
ESS continued the realization of a follow-up order in context with the German electronic health card (eGK) and
strengthened its position as an IT Security specialist and experienced partner in this market. The Internet of Things
(IoT) business is still characterized by a slow but steady market development. Nevertheless, ESS sold several IoT
projects in various industries. The new German IT Security Law, which came into effect in July 2015, opens up new
opportunities for ESS to offer its IT security and compliance know-how and to benefit from these new obligations and
upcoming standards.
Outlook for 2015
The long-term growth prospects for exceet with respect to its technological skills and its product and service portfolio
remain unchanged despite the setbacks seen in the course of the current year. The main trigger for exceet's business
performance would be a convincing upswing of overall investment activities, especially investments into intelligent
electronics, for example in the field of the Internet of Things (IoT). Studies by International Data Corporation (IDC)
disclose that executives worldwide put the IoT topic at the top of their agendas but close to 40 percent of them see
obstacles for investments within the next two years because of high initial costs. For one of four executives, data
security concerns also might lead to the postponement of investment decisions. However, more than a third of the
interviewed executives unanimously regard suppliers of electronic hardware - like exceet - to turn out the strongest
beneficiaries once investment sentiment improves. Therefore the management of the group maintains its confidence to
participate in the growth within these markets as the company's portfolio addresses the skills in demand.
Each of the first three quarters 2015 showed slightly lower sales by mid-single digit percentages compared to the prior
year period. The final quarter 2015 most probably should exceed the Q4 figure of 2014 thus continuing the trend seen
since this summer.
In order to enhance the operational efficiency of the group, exceet will run through a process of structural adjustments
and optimizations including the management structure and asset base of the group. The process will emphasize the group's
focus on its high margin core businesses.
Greenock S.à r.l. a major shareholder of exceet Group SE had informed the company in Q1 2014 that they are assessing
their strategic options related to their shareholding in exceet Group SE, including a possible disposal of such
shareholding to a third party. Pursuant to the updated information provided by Greenock S.à r.l., no final decision has
still been taken regarding the form and timing of a potential transaction.
Annex: Performance and Structural Data first nine months 2015
Complete Interim Management Report on the first nine months 2015 and actual Investor Relation Presentation available at
www.exceet.lu
Please contact for further information:
Wolf-Günter Freese, CFO - Email: Investor.relations@exceet.lu
exceet Group SE
115 avenue Gaston Diderich
L-1420 Luxembourg
Phone +352 26 29 91 22
ISIN LU0472835155 (Public Shares), Regulated Market, Prime Standard, Frankfurt/Main
ISIN LU0472839819 (Public Warrants), Regulated Market, General Standard, Frankfurt/Main
exceet will announce full year results for 2015 on 2 March 2016 (after closing of the market)
About exceet
exceet is an international technology group, which is specialized in the development and production of intelligent,
complex and secure electronics.
End of Media Release
Issuer: exceet Group SE
Key word(s): Enterprise
2015-11-02 Dissemination of a Press Release, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
Language: English
Company: exceet Group SE
115, avenue Gaston Diderich
L-1420 Luxemburg
Grand Duchy of Luxembourg
Phone: +352 2629 9122
Fax: +352 2629 9150
E-mail: info@exceet.ch
Internet: www.exceet.ch
ISIN: LU0472835155, LU0472839819
WKN: A0YF5P, A1BFHT
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Munich
End of News DGAP Media
407855 2015-11-02
(END) Dow Jones Newswires
November 02, 2015 13:23 ET (18:23 GMT)
