DATACOLOR AG DATACOLOR AG
FINANCIAL REPORT 2 0 2 3
This English version of the Datacolor AG annual report is a translation from German and is provided solely for reader's convenience. Only the German version in binding.
DATACOLOR AG
FINANCIAL REPORT 2 0 2 3
Financial year from October 1, 2022 through September 30, 2023
Information and Key Figures
Datacolor Share Information | 2 |
Key Figures Datacolor | 3 |
Report of the Board of Directors of Datacolor AG | 5 |
Annual Report 2022/23 | 6 |
Corporate Governance | |
Group Structure | 8 |
Executive Bodies | 9 |
Information for Investors | 12 |
Compensation Report 2022/23 | |
Compensation Report | 14 |
Statutory Auditor's Report on the Compensation Report | 19 |
Financial Report | |
Datacolor | |
Consolidated Income Statement | 22 |
Consolidated Balance Sheet | 23 |
Consolidated Cash Flow Statement | 24 |
Consolidated Statement of Changes in Equity | 25 |
Notes to the Consolidated Financial Statements | 26 |
Statutory Auditor's Report on the Consolidated Financial Statements | 40 |
Datacolor AG | |
Balance Sheet | 44 |
Income Statement | 45 |
Statement of Changes in Equity | 45 |
Notes | 46 |
Proposed Appropriation of Retained Earnings | 49 |
Statutory Auditor's Report on the Audit of the Financial Statements | 50 |
Information & Key Figures
DATACOLOR SHARE INFORMATION
Stock exchange information | |||||
Expected dividend ex date (subject to approval by AGM) | December 11, 2023 | ||||
Listing | SIX Swiss Exchange (Zurich) | ||||
Security ID | 853 104 | ||||
ISIN | CH0008531045 | ||||
Reuters | DCN.S | ||||
Bloomberg | DCN | ||||
Investdata | DCN | ||||
Capital structure | 30.09.2023 | 30.09.2022 | |||
Share capital in CHF | 168 044 | 168 044 | |||
Conditional share capital in CHF | 16 804 | 16 804 | |||
Number of registered shares | 168 044 | 168 044 | |||
Nominal value per share in CHF | 1 | 1 | |||
Registration restrictions | none | none | |||
Voting restrictions | none | none | |||
Opting out / opting up | none | none | |||
Significant shareholders (in %) | 30.09.2023 | 30.09.2022 | |||
Werner Dubach | 94.09% | 64.04% | |||
Community of heirs - Anne Keller Dubach | 0.00% | 19.70% | |||
Shareholders by category (in %) | 30.09.2023 | 30.09.2022 | |||
Significant shareholders | 94.09% | 83.74% | |||
Private investors | 95.33% | 93.35% | |||
Corporate investors | 4.67% | 6.65% | |||
Non-registered shareholders | 0.46% | 1.38% | |||
Share distribution | 30.09.2023 | 30.09.2022 | |||
Number of registered shares | Number of shareholders | Number of shareholders | |||
1 - 100 | 127 | 456 | |||
101 - 1 000 | 5 | 18 | |||
1 001 - 10 000 | 1* | 5 | * | ||
>10 000 | 1 | 2 | |||
Total | 134 | 481 | |||
*including treasury shares of Datacolor AG | |||||
Share price data in CHF | 2022/23 | 2021/22 | |||
First trading day | 660.00 | (03.10.2022) | 635.00 | (01.10.2021) | |
Low | 610.00 | (19.04.2023) | 630.00 | (26.10.2021) | |
High | 770.00 | (22.08.2023) | 750.00 | (26.11.2021) | |
Last trading day | 755.00 | (29.09.2023) | 660.00 | (30.09.2022) | |
Average share price | 682.19 | 696.91 | |||
Market capitalization in CHF million as of September 30 | 121.40 | 106.50 |
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Information & Key Figures
KEY FIGURES GROUP
in USD million | 2022 /23 | 2021 /22 |
Net sales | 93.2 | 87.4 |
Change relative to previous year in % | 6.7% | 18.8% |
EBITDA | 10.7 | 12.9 |
Change relative to previous year in % | -17.2% | 59.0% |
as a % of net sales | 11.5% | 14.8% |
EBIT | 8.1 | 11.2 |
Change relative to previous year in % | -27.5% | 73.7% |
as a % of net sales | 8.7% | 12.8% |
Net result | 10.9 | 5.2 |
Change relative to previous year in % | 110.5% | -44.2% |
as a % of net sales | 11.7% | 5.9% |
as a % of average shareholders' equity | 20.8% | 10.3% |
Cash flow from operating activities | 9.2 | 9.0 |
Change relative to previous year in % | 2.5% | 0.7% |
as a % of net sales | 9.9% | 10.3% |
Cash flow from investing activities | -5.1 | -4.0 |
Change relative to previous year in % | 28.0% | 251.5% |
as a % of cash flow from operating activities | -55.0% | -44.0% |
Free Cash Flow | 4.2 | 5.0 |
Change relative to previous year in % | -17.6% | -35.5% |
as a % of net sales | 4.5% | 5.8% |
Average number of employees | 426 | 387 |
Personnel expenses | 41.5 | 36.3 |
Total assets | 95.6 | 81.3 |
Shareholders' equity | 56.9 | 47.8 |
as a % of assets | 59.5% | 58.8% |
Net liquidity (including current financial assets) | 42.7 | 43.7 |
Per share data 1) | ||
Average number of shares | 160 884 | 162 411 |
Earnings per share in USD (non-diluted) | 67.60 | 31.81 |
Free Cash Flow per share in USD | 25.82 | 31.04 |
Shareholders' equity per share in USD | 353.71 | 294.34 |
Dividend per share in CHF 2) | - | 20.00 |
Share price data as of 30.09. in CHF | 755.00 | 660.00 |
Yield in % 3) | 0.0% | 3.8% |
- Calculation is based on the weighted average number of shares outstanding (issued shares less treasury shares).
- According to the proposal of the Board of Directors on November 7, 2023 no dividend payment proposed.
- Distribution in percentage of the share price as of September 30, 2023.
3
SpectraVision V | Spectro 1000 |
Spyder X2 | SpyderCheckr |
Colibri Analytics
ColorReader
4
Annual Report 2022 /23
Report of the Board of Directors
In the 2022/23 financial year, Datacolor continued its successful strategy implementation of previous years. Sales reached a new high. Once again, innovative industrial and consumer products were launched with the aim of achieving efficient color management. Datacolor continued to expand its position in the global color management market with the successful integration of matchmycolor GmbH, which specializes in color management software.
During the reporting period, Datacolor made substantial investments in the development of new products, especially in a cloud-based software as a service offering (SaaS) for Datacolor industrial products. For the consumer market, Datacolor introduced new devices for the efficient color calibration of monitors and a new pocket-sized color reference tool. In addition, the global sales and marketing organization was expanded, mainly in the Asia region, which is Datacolor's biggest and fastest-growing market.
During the 2022/23 financial year, a public tender offer was made in summer 2023 by the majority shareholder for all publicly held Datacolor shares, setting the course for the company's future development. The voluntary tender offer was unanimously supported by the independent members of the Board of Directors and was completed in October 2023. The planned delis- ting of the Datacolor shares is a major milestone. The Board of Directors is convinced that the withdrawal from the stock exchange is appropriate for Datacolor's size and that it supports the company's strategic agility.
The Board of Directors intends to continue expanding Datacolor's leading market position in the international color management market in the years to come and to supplement organic growth with acquisitions.
The Board of Directors wishes to thank all shareholders for their loyalty, some of whom have supported the company for many years.
Werner Dubach
Chairman of the Board of Directors
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Annual Report 2022/23
DATACOLOR IN FISCAL 2022 / 23
Continued growth leading to record sales
Datacolor realized record sales in fiscal 2022/23 with its broad offering of products and solutions for efficient, precise and digital color management. While sales to industrial customers increased significantly, sales in the consumer market were down from previous year due to a decrease in customer demand caused by the economic slowdown.
In May of 2023 Datacolor acquired the Swiss color software company matchmycolor LLC. The technology company's financials were consolidated for five months starting May 1, 2023. The impact of the acquisition and integration costs are spread over two fiscal years 2022/23 and 2023/24. With the acquisition of matchmycolor, Data- color strengthened its market position for color management software in its core markets of textile and apparel, paint, coatings, plastics and automotive and expanded its global presence in the color management market of ink and printing, among others. The acquisition of this innovative Swiss software company is in line with Data- color's strategy of continuously expanding its customer base with state-of-the-art color management solutions and supporting organic growth through acquisitions that complement its business model.
Datacolor achieved a further increase in sales after two years of double-digit growth and confirmed its strong position in the international color management market in fiscal 2022/23, despite the challenging business climate. With further substantial investments in research and de- velopment, Datacolor again launched several new cutting -edge products in all business units. The global sales and marketing organization was further expanded, particularly in Asia, Datacolor's largest and fastest-growing market. The company also continued to grow its service revenues of color certification and color calibration with its Datacolor Certify and Datacolor Guardian products. Recruitment of new employees, which was challenging during the start of the fiscal year, improved considerably, allowing the Company to fill most of its open positions. In the year under review, Datacolor employed an average of 426 (387) people.
In fiscal 2022/23, net sales were USD 93.2 million (fis- cal 2021/22: USD 87.4 million), exceeding the previous year by 6.7% or 9.5% in local currency. Continued sales growth, a more favorable product mix, due to the high- margin software products acquired from matchmycolor, and close management of expenses led to a high gross profit to USD 62.4 million, corresponding to a gross profit margin of 66.9% (66.3%). Operating profit includes the first tranche of acquisition costs of matchmycolor as well as announced extraordinary costs related to the public tender offer from the majority shareholder for all publicly held Datacolor shares announced on July 3, 2023. Therefore, resulting EBITDA for the fiscal year amounts to USD 10.7 million (USD 12.9 million) and EBITDA margin to 11.5% (14.8%). EBIT amounts to USD 8.1 million
(USD 11.2 million) and EBIT margin to 8.7% (12.8%). Net income improved significantly to USD 10.9 million (USD
- million), mainly due to the good financial result of USD
- million (USD -5.5 million) and a positive one-off tax ef- fect in the US. Earnings per share corresponded to USD
- (USD 31.81).
Continuing sales growth in all market regions
In the reporting period, Datacolor continued to report increased sales in all market regions with the largest increase in Europe despite the depreciation of the Euro against the US Dollar and partially driven by the acquisition of matchmycolor, whose revenues were mainly Europe-based. Consequently, the European region's contribution to sales increased in the year under review to 31% (29%). Asia remained Datacolor's strongest region with a share of 43% (44%) of Group sales. The American markets contributed 26% (27%).
Direct customer service expanded
In April 2023, Datacolor announced the transition from an agent to a direct sales and support setup in the Scandinavian market including Sweden, Norway, Finland, Den- mark and Iceland, in line with the Company's strategy to assure state-of-the-art service and support to customers from one source.
New software and products launched
Datacolor continued to invest substantially in the development of new products, in particular a cloud-basedSoftware-as-a-Service (SaaS) offering for Datacolor industrial products that supports customers in efficient data exchange, Big Data analytics and increased process flexibility. Thanks to the recent acquisition of match- mycolor Datacolor further strengthened its capabilities in software development and introduction of SaaS solu- tions.
For the consumer market Datacolor introduced its next generation monitor color calibrators Spyder X2 Elite and the Spyder X2 Ultra. Datacolor Spyder X2 Elite enables effective color calibration in less than two minutes with an even clearer user interface and advanced calibration features. With expanded sensor capabilities, Spyder X2 Ultra allows for calibration of HDR/high-brightness monitors making it ideal for photo, video and hybrid use, as well as for viewing HDR/high-brightness content on computer -connected TVs and projectors. Furthermore, Data- color launched Spyder Checkr Video, a pocket-sized color reference tool that works with a variety of professional video equipment and editing software solutions to ensure accurate video color and exposure. Spyder Checkr Video offers the ability to quickly and precisely color calibrate one or more camera and lens combina- tions, ensuring color accuracy at the start of shooting, streamlining the post-production workflow for a seamless video editing experience.
6
Annual Report 2022/23
Sound balance sheet
At the end of fiscal 2022/23, Datacolor AG had total assets of USD 95.6 million (9/30/2022: USD 81.3 mil- lion), significantly higher than the previous year. The increase in total assets is mainly driven by the intangible assets from the acquisition of matchmycolor. Net cash including financial assets amounted to USD 42.7 million (9/30/2022: USD 43.7 million). Accounts receivable amounted to USD 9.3 million (9/30/2022: USD 11.0 mil- lion). After prior year's considerable increase in invento- ries, inventory levels decreased slightly in the reporting period and corresponded to USD 12.4 million at the end of fiscal 2022/23 (9/30/2022: USD 13.0 million). Data- color remains debt-free and has a solid equity ratio of 59.5% (9/30/2022: 58.8%).
Datacolor AG
The holding company Datacolor AG posted a profit of CHF 4.6 million in fiscal 2022/23 (fiscal 2021/22: CHF 4.3 million). After payment of the dividend of CHF 3.2 million for fiscal 2021/22, Datacolor AG had shareholders's equity of CHF 13.8 million on the reporting date Septem- ber 30, 2022 (9/30/2022: CHF 12.9 million). For fiscal 2022/23, the Board of Directors proposes no dividend distribution to the Annual General Meeting of Datacolor AG on December 7, 2023.
Public tender offer for the shares of Datacolor AG
On July 3, 2023, the Chairman of the Board of Directors of Datacolor, Werner Dubach, announced a voluntary public tender offer to purchase all publicly-held shares of Datacolor AG. With the tender offer, which was unanimously supported by the independent members of Datacolor's Board of Directors, Werner Dubach enabled Datacolor's shareholders to sell their Datacolor shares, which were only thinly traded, at a fair price without taking the risk of causing above-average price volatility. The public tender offer was widely accepted and Werner Dubach announced the successful closing on October 16, 2023.
Outlook
In the course of the tender offer Werner Dubach and Datacolor AG communicated the intention to delist the shares of Datacolor AG after the successful closing of the transaction. Following a delisting of the Datacolor shares, Datacolor, one of the leading international companies in the color management sector, will continue to strengthen and expand its market position. Further- more, Datacolor's organic growth is to be supported by future acquisitions.
This report contains forward-looking statements that reflect management's views with respect to future events. Such statements are subject to risks and uncertainties. Datacolor disclaims any liability that actual results correspond to the forward-looking statements and does not assume any obligation to update any forward-looking statements to reflect events or circumstances after the date of this report.
This English version of the Datacolor AG annual report 2022/23 is a translation from German and is provided solely for reader's convenience. Only the German version in binding.
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Corporate Governance
GROUP STRUCTURE
Introduction
This corporate governance report describes the principles of leadership and control at the top organizational levels of Datacolor AG, in accordance with the Directive on Information Relating to Corporate Governance (DCG) issued by SIX Swiss Exchange AG as well as the guidelines and recommendations of the Swiss Code of Best Practice for Corporate Governance. Unless indicated otherwise, the information in this report for fiscal year 2022/2023 is as of September 30th, 2023.
The information on Corporate Governance can also be retrieved under the following link: https://ir.datacolor.com/en/corporate-governance/
Roles and duties of Datacolor AG
Datacolor AG as top holding company of the Datacolor Group manages Datacolor's business by means of objec- tives. Datacolor AG is involved in the planning process for the Datacolor Group and monitors adherence to the bud- get. Once the three-year plan and the budget have been approved by the Board of Directors of Datacolor AG, the Executive Committee acts on its own authority within the limits of the budget and the rules of competence.
Datacolor AG is a public limited company under Swiss law with headquarters in Risch listed on SIX Swiss Ex- change. The overview of shareholdings can be found in note 28 on page 39; the market capitalization is shown on page 2.
Strategy
Datacolor's mission is to be a global, customer-focused,growth-oriented, profitable and sustainable company that provides a wide range of innovative, easy to use, high quality products and services assuring color and appearance are accurately measured and managed.
To accelerate growth, Datacolor expands its business activities in adjacent areas by applying its knowhow in product development, manufacturing, sales and support as well as by digitalizing its own and customer's workflows.
The Company aims to be a technology and innovation leader and at least a strong number two in the markets on which it is focused, as well as the standard for color in these segments, by applying leading software and hardware technologies in its products and providing market-leading services primarily through its direct sales organization as well as partners.
By broadening its software offering, Datacolor actively pursues the latest technologies in Cloud Computing, Artificial Intelligence and Big Data analytics, while at the same time developing connected instruments using the latest sensor and data sharing technologies.
Datacolor invests in highly engaged and skilled employees who are in tune with customer needs and live Datacolor's core values.
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Disclaimer
Datacolor AG published this content on 15 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 November 2023 05:17:01 UTC.
