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*Financial Results Third Quarter 2017*
*Further improved Performance supported by strong Demand*
*- *9M 2017 group sales at EUR 108.7 million (9M 2016: EUR 99.8 million),
plus 8.9% compared to prior year; organic growth[1] 9M 2017: +9.0% (9M 2016:
minus 1.4%)
- 9M 2017 group EBITDA[2] at EUR 8.0 million (9M 2016: EUR 6.5 million),
up 21.9% versus 9M 2016
- On 30 September 2017, order backlog[3] at EUR 96.9 million (EUR +10.0
million compared to 30 September 2016), cash at EUR 25.1 million, net
debt[4] at EUR 4.0 million (31.12.2016: EUR 5.4 million), equity ratio[5] at
55.5% (31.12.2016: 55.4%)
- On 18 September 2017, White Elephant S.à r.l., indirectly controlled by
Active Ownership Fund SICAV-FIS SCS, has published their ownership of 28.26%
of exceet shares outstanding (replacing the former shareholder Greenock S.à
r.l.)
- On 23 October 2017, White Elephant S.à r.l. submitted its voluntary public
takeover offer to exceet's shareholders at a share price of Euro 2.91 per
share (www.elephant-offer.com)
*Luxembourg, 6 November 2017 -* Q3 2017 sales of exceet group amounted to
EUR 37.6 million, an increase by 9.4% versus the corresponding quarterly
figure one year ago and exceeding the turnover of the preceding quarter by
5.3%. This cumulates total group sales up to EUR 108.7 million for the first
nine months 2017 (+8.9% y-o-y, +9.0% organic growth).
On 30 September 2017 exceet's order backlog amounted to EUR 96.9 million
(30.9.2016:
EUR 86.9 million). The twelve months rolling book-to-bill ratio[6] of 1.07
(9M 2016: 1.10) supports the continued promising sales trend.
*Electronic Components, Modules & Systems (ECMS*) which accounts for 93.3%
of group sales increased its external net sales by 8.4% to EUR 101.5 million
during the first nine months of 2017 (9M 2016: EUR 93.6 million). The EBITDA
of the segment reached EUR 11.6 million, +8.9% versus one year ago (9M 2016:
EUR 10.7 million) generating an EBITDA margin for the segment of 11.5% (9M
2016: 11.4%).
Within ECMS, exceet develops and produces innovative, complex and
intelligent electronics with integrated communication features. The segment
currently benefits from an overall increased demand of exceet's customer
base due to favorable market conditions.
Technologically, exceet has gained promising market awareness for its
microprocessor related product suite, its micro- and opto-electronics using
cutting-edge technology and its spectrum of high-end chip-level
technologies. The sensor-based business in medical-grade body wearable
devices currently performs below customers and exceet's expectations. This
is also the case with the group's high-end printed circuit board business
which is focused on miniaturized applications for the medical and avionics
industries. The started adjustment for leaner cost structures already
supported the performance of the quarter. The earlier announced
implementation of new technologies for the semi-additive process is also
well on course. The transformation process of the electronics operations in
Rotkreuz (Switzerland) makes good progress towards an optimized production
flow. The concentration on customer-specific product bundles like control
units, panels and web terminals for the medical, industrial and avionics
markets is well accepted.
*exceet Secure Solutions (ESS)* accounts for 6.7% of group sales and
generated external revenues of EUR 7.2 million in the first nine months of
the year, +15.9% versus the year earlier figure (9M 2016: EUR 6.3 million).
The EBITDA for the reporting period remained negative with minus EUR 1.6
million versus minus EUR 1.3 million the year before.
The segment is focused on secure connectivity and combines its IT security
and Internet of Things (IoT) know-how with the group's long-lasting
competences in smart electronics. The segment experienced a rising demand
for specific industry routers and customized gateways for the use in
protective maintenance environments. The modular product suite "exceet
connect" which ensures secure communication between users and devices is
ready for commercialization and will be presented at upcoming trade fairs.
Additionally, with its eSignature and Hardware Security Module (HSM)
solutions, ESS offers a complete digital and secure communication portfolio.
*Outlook*
Even if the top-line performance of exceet in Q3 2017 at first sight shows a
clear increase, the cumulative nine months sales progression has to be
regarded as in line with the management's expectations communicated at the
beginning of the year. Current percentage increases should take into account
positive basis effects from the low level of the year before. The speed of
improvement most probably will slow down in the final quarter as reflected
in a slightly diminished order backlog figure versus 30 June 2017. In
addition a global occasional shortage of electronic components availability
caused by strong market demand might lead for some projects to noticeable
longer delivery times and will limit the possibility to realize short-term
sales opportunities. However, it should leave exceet with an overall
satisfactory recovered annual performance compared to last year, with the
second half sales figure slightly surpassing the turnover of the first half
year, as pointed out earlier.
The profitability as measured by the EBITDA figure should also follow the
path outlined in the fiscal year report 2016 and reiterated in the Q1 and Q2
interim reports. In the absence of larger economic disturbances, that could
potentially result in a renewed customer reluctance to continue in their
investment cycle, the margin evolution in Q4 should confirm the higher
single digit level reached meanwhile. This should provide a reasonable step
up on an annual average basis versus the bottomed-out level of 2016.
As already mentioned in the H1 2017 report, some non-cash impairment on
intangible assets referring to former acquisitions might remain on the
agenda until the end of this year in Ebbs (Austria) and Dusseldorf
(Germany).
*Annex: Performance and Structural Data third quarter 2017*
Complete Interim Management Report on the third quarter 2017 and actual
Company Presentation available at www.exceet.com [1]
*Please contact for further information:*
*Wolf-Günter Freese, CEO & 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
*exceet will announce full year results for 2017 on 28 February 2018*
(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.
[1] Organic Growth is the growth rate calculated excluding impact from
changes in exchange rates (9M 2017: minus EUR 0.029 million; 9M 2016: minus
EUR 0.974 million) and acquisitions (2017 and 2016 none)
[2] EBITDA is the operating profit (EBIT) of EUR -8.5 million (9M 2016: EUR
-2.5 million) plus depreciation and impairments of EUR 16.5 million (9M
2016: EUR 9.0 million) (see page 10 "Interim Income Statement")
[3] Order Backlog shows the total of all not yet delivered customer orders
at revenue value as at balance sheet date, to help to judge future revenue
development.
[4] Net Debt is calculated as balance sheet financial debt adjusted for cash
and cash equivalents (see page 9 "Interim Balance Sheet), to assist in
presenting the Group's financial capacities.
[5] Equity Ratio is calculated as the ratio of total equity to total assets
(see page 9 "Interim Balance Sheet") representing the Group's financial
leverage.
[6] Twelve months rolling Book-to-Bill Ratio is the ratio of orders received
last twelve months (30.9.2017 EUR 153.8 million; 30.9.2016: EUR 146.8
million) to net sales last twelve months (30.9.2017 EUR 144.3 million;
30.9.2016: EUR 134.0 million), to support the analysis of potential future
growth.
End of Media Release
Issuer: exceet Group SE
Key word(s): Enterprise
2017-11-06 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.
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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 Berlin, Munich, Stuttgart, Tradegate Exchange
End of News DGAP Media
625635 2017-11-06
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(END) Dow Jones Newswires
November 06, 2017 13:01 ET (18:01 GMT)
