Half-year report 2021
Tornos Group
incl. Interim Consolidated Financial Statements
Content
Key Figures | 3 |
Letter to Shareholders | 4 |
Management Report | 6 |
Interim Consolidated Financial Statements | 9 |
Forward-looking statements
The present half-year report contains forward-looking statements in relation to the Tornos Group which are based on current assumption and expectations. Unforeseeable events and developments could cause actual results to differ materially from those anticipated.
This half-year report is available in English, German and French. The original English-language version is binding. Tornos half-year report can be downloaded from the Tornos website: https://investors.tornos.com
Responsible for the contents
Tornos Holding Ltd, Moutier, Switzerland
Concept
Zoebeli Communications AG, Bern, Switzerland
Design
Luidspreker-Creative Studio, Venlo, Netherlands
Printing
Pressor Ltd, Delémont, Switzerland
2 Content
Key Figures
Tornos Group
1st HY 2021 | 1st HY 2020 | Difference | Difference | |
Unaudited, in CHF 1 000 1) | 1.1.-30.6.2021 | 1.1.-30.6.2020 | in % | |
Order intake | 104 640 | 42 834 | 61 806 | 144.3% |
Net sales | 84 389 | 56 170 | 28 219 | 50.2% |
EBITDA 2) | 13 182 | -10 988 | 24 170 | n/a |
in % of net sales | 15.6% | -19.6% | ||
EBIT 2) | 11 109 | -13 089 | 24 198 | n/a |
in % of net sales | 13.2% | -23.3% | ||
Net result | 11 644 | -13 908 | 25 552 | n/a |
in % of net sales | 13.8% | -24.8% | ||
Cash flow from operating activities | 18 581 | -8 781 | 27 362 | n/a |
Cash flow from investing activities | 877 | 804 | 73 | 9.1% |
Free cash flow 2) | 19 458 | -7 977 | 27 435 | n/a |
30.6.2021 | 31.12.2020 | |||
Net cash 2) | 15 401 | -4 992 | 20 393 | n/a |
Total equity | 90 200 | 77 927 | 12 273 | 15.7% |
in % of total balance sheet | 66.2% | 60.8% | ||
Total balance sheet | 136 314 | 128 176 | 8 138 | 6.3% |
Employees (full-time equivalents) 3) | 613 | 603 | 10 | 1.7% |
- Unless otherwise stated
- Non-GAAPfinancial indicator, see https://investors.tornos.com/en/content/publications
- Without apprentices
Key Figures 3
Tornos with marked improvements at all levels
Dear Shareholders,
In the first half of 2021, business developed very well for the Tornos Group. Following an extremely difficult year 2020, in which our business was at times almost paralyzed worldwide, we achieved massive growth in both order intake and sales. This applies to all our product groups and sales markets. During the first six months of this year, all our production plants were running at full capacity. By the end of 2020, we were able to end short-time working in each of our business units. Despite relatively high inventory levels at the beginning of the year, our production sites occasionally faced major challenges in meeting the desired delivery times. This was due in particular to frequent interruptions in the global supply chain for raw materials and vendor products. The regulations and precautionary measures necessitated by the Covid-19 pandemic also made business more difficult in the first half of 2021. In many countries, machine installations and service calls were only possible with great additional effort.
Nevertheless, the Tornos Group succeeded in significantly improving profitability. In addition to the massive increase in sales, the cost struc- ture, which has improved considerably since 2020, and the write-back of value adjustment provisions due to the reduction in inventories also had a positive impact on our EBIT 1).
Overall, our Group generated order intake of CHF
104.6 million in the first half of 2021 (first half of 2020: CHF 42.8 million, +144.3%) and net sales of CHF 84.4 million (first half of 2020: CHF 56.2 million, +50.2%). EBIT 1) improved from CHF -13.1
- Non-GAAPfinancial indicator, see https://investors.tornos.com/en/content/publications
million to CHF 11.1 million. Excluding the write- back of value adjustment provisions in the amount of CHF 6.5 million and the book gain from a property sale in the UK of CHF 0.7 million, EBIT 1) for the first half of 2021 would be CHF 3.9 million.
Revitalized automotive business
Fortunately, the Tornos Group was able to acquire numerous new customers and significantly increase its order intake in all its sales markets in the first half of 2021. This applies in particular to the automotive industry, which was by far the most important market for Tornos until 2018. In 2019, order intake collapsed completely in this area, and it was only toward the end of last year that a slight recovery of the market was noticeable again. In the first half of 2021, this market segment is again leading the way for Tornos, followed by medical and dental technology and the electronics market segment, in which Tornos was also able to achieve disproportionately high growth in the reporting period.
What applies to the industries also applies to the order intake in the regions: Tornos was able to grow everywhere in the first half of 2021. The development in China stands out here. Tornos has significantly strengthened its market position in China, particularly with its locally manufactured Swiss-type automatic lathes. Within Europe, demand from Italy was especially strong. In São Paulo, Brazil, Tornos established a new customer center in the first half of 2021, primarily for the medical and dental technology market.
4 Letter to Shareholders
Multispindle machines in demand again
The EvoDECO and SwissNano Swiss-type automatic lathes produced in Switzerland attracted significantly more customers in all sales markets in the first half of 2021 than in the previous year. Particularly striking, however, was the increase in demand for the MultiSwiss multis- pindle machines, sales of which had suffered particularly badly in the previous year due to the very special market conditions.
Circular economy with DECO 10 Plus
Tornos' service and spare parts business also recovered. Despite the still sometimes severe travel restrictions due to the Covid-19 pandemic, this area was able to increase sales by 45%. The DECO 10 Plus offer launched by Tornos last year has become well established. It allows customers to have their older DECO 10 machines upgraded to the latest technology. Tornos also buys back older machines and, in the spirit of a circular economy, puts them back on the market after a complete overhaul-tostate-of-the-art.
Management of the Tornos Group. The 48-year-old MBA has broad experience in finance and con- trolling, strategy development, human resources, and information technology, gained in various management positions at Swatch Group and Richemont. He will take over his new assignment at Tornos at the beginning of September 2021.
Outlook
In view of the high order backlog of CHF 46.5 million (end of 2020: CHF 27.2 million), we also expect significantly better results for the second half of 2021 than in the previous year. How sustainable the upswing will be is still difficult to assess today. A good part of the market development in the first half of 2021 is likely to be based on catchup effects attributable to the Covid-19-year 2020. The availability of raw materials and vendor parts and their price development also remain uncertain. With its product portfolio, which is excellently geared to customer needs, its steadily expanding services and its flexible structure, the Tornos Group is, in any case, well equipped for the future.
Product launches
In the first half of 2021, Tornos successfully
launched two new Swiss DT series Swiss-type | ||
automatic lathes specifically tailored to the North | ||
American and Chinese markets. In addition, | François Frôté | Michael Hauser |
Tornos expanded its services and in particular | Chairman of the | President and Chief |
further developed its remote service. | Board of Directors | Executive Officer |
Management changes
At the end of April 2021, the Board of Directors of the Tornos Group appointed Stéphane Pittet to succeed Luc Widmer as the new Chief Financial Officer (CFO) and member of the General
Letter to Shareholders | 5 |
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Disclaimer
Tornos Holding AG published this content on 03 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 August 2021 06:59:07 UTC.