INDUS Holding AG: Another successful year for INDUS

Another successful year for INDUS

- Sales revenues reach new record at approx. EUR 1,641 million

- Another strategic addition for AURORA

- Strong start to current fiscal year

Bergisch Gladbach, 22 February 2018 - According to preliminary, unaudited figures for the fiscal year 2017, INDUS reached its revenue and earnings targets. The forecast for the past fiscal year projected consolidated sales revenues in excess of EUR 1.5 billion and EBIT of between EUR 145 million and EUR 150 million.

According to preliminary consolidated figures, sales revenues amounted to EUR 1,641 million (2016: EUR 1,444.3 million) and earnings before interest and taxes (EBIT) came in at approx. EUR 153 million (2016: EUR 144.9 million). Adjusted for the effects of initial consolidations, EBIT stood at approx. EUR 164 million (2016: EUR 155.4 million). Earnings before taxes are expected to amount to roughly EUR 129 million (2016: EUR 123.4 million). Earnings after taxes will amount to roughly EUR 83 million (2016: EUR 80.4 million). Earnings per share are expected to reach EUR 3.37 (2016: EUR 3.27).

Record EBIT supported by strong, diversified portfolio
The highly profitable Construction/Infrastructure and Engineering segments were the main drivers of the revenue and earnings growth. The Medical Engineering/Life Science segment made stable earnings contributions at a high level. The two repositionings in the Automotive Technology and Metal Technology segments had a notably adverse impact on the earnings margin in 2017. Adjusted for the above-mentioned earnings effects from initial consolidations, the EBIT margin stood at 10% and the Group reached its operating targets. Jürgen Abromeit, CEO of INDUS, summarised the results: "The gratifying overall result reflects the excellent positioning of the INDUS Group. The very good performance of the overall portfolio offset the adverse impact of the two repositionings on the bottom line."

Acquisitions strengthen technological position
Two acquisitions in the high-tech automation, measurement and control technology segment - M+P INTERNATIONAL, Hannover, and PEISELER, Remscheid - strengthened the INDUS Group in the past fiscal year. INDUS sees further potential for growth primarily in such markets of the future as infrastructure/logistic technology, energy and environmental technology, medical engineering and healthcare as well as construction and security technology.

At the beginning of 2018, INDUS portfolio compancy AURORA made a strategic acquisition by taking over electronics specialist EE ELECTRONIC EQUIPMENT B.V. headquartered in Weert, Netherlands. EE develops and produces customised electronic control components for applications in the automotive, lighting and packaging industries and generates annual revenues of roughly EUR 3 million.

In accordance with its multi-stage transaction model, INDUS acquired the remaining shares in ROLKO Kohlgrüber GmbH (25%) as planned in 2018. The remaining shares in PROVIS Steuerungstechnik GmbH (25%) were transferred to BUDDE Fördertechnik, an INDUS portfolio company. Pursuant to the contractual arrangements, the remaining shares in IEF Werner (25%) and RAGUSE (20%) will be acquired by INDUS in the first half of 2018.

Positive outlook in good economic environment
According to CEO Jürgen Abromeit, the outlook for the current fiscal year is positive. "Even though 2017 was characterised by a certain slowdown for two companies, our portfolio companies used the good economic situation to further improve their competitiveness. Our offerings for the funding of innovations have been met with great acceptance. INDUS' development bank scheme currently supports twelve innovation projects; another 14 portfolio companies are taking advantage of our Innovation ToolBox."

The repositionings in the Automotive Technology and Metals Technology segments are proceeding to plan, according to Jürgen Abromeit. "The two repositioning projects will essentially be completed by mid-2018. Our portfolio is well positioned and we expect to be able to benefit from the excellent economic situation again in the current fiscal year. This expectation is supported by the fact that all segments had a good start to the year and are generating good earnings."

The full financial statements for the financial year 2017 will be presented at the annual accounts press conference in Düsseldorf on 27 March 2018.

For the 2108 financial calendar, click here.