DGAP-News: InTiCa Systems AG

Ramp-up of production in Mexico on schedule

Orders on hand remained at a very high level

Outlook for FY 2017 confirmed
 

Passau, August 24, 2017 - InTiCa Systems AG (Prime Standard, ISIN DE0005874846, ticker IS7) today published the interim report for the first half year of 2017. With a sales growth of around 7% to EUR 24.6 million and an EBIT margin of 2.9%, the company is on the right track to reach the targets for the full year 2017:

"We also made further progress in realizing our strategic goals in the first six months of 2017. As internationalization proceeds, our aim is to increasingly position InTiCa Systems as a global supplier. The successful start of business at our new site in Mexico confirms our strategy. Production started in the third quarter of 2016, just six months after the decision in favour of this location. This site now provides serial production for one customer and has more than 20 employees. Serial production for a second customer is scheduled to start in the third quarter of 2017 and production for a further new customer will be added in 2018. Given the positive demand, we are confident that the new site will be making a positive earnings contribution by 2018/19", comments Dr. Gregor Wasle, Spokesman of the Board of Directors, the business development in the first half year of 2017.

Earnings position

Compared with the first six months of 2016, Group sales rose 7.1% to EUR 24.6 million (H1 2016: EUR 22.9 million), with both segments contributing to this. Sales increased 5.9% to EUR 19.8 million (H1 2016: EUR 18.7 million) in the Automotive Technology segment and 12.2% to EUR 4.8 million (H1 2016: EUR 4.2 million) in the Industrial Electronics segment.

The ratio of material costs to total output was 54.9% in the reporting period, which was around the prior-year level (H1 2016: 54.6%). At the same time, the personnel expense ratio increased from 21.8% to 22.7% due to the increase in the average headcount in the reporting period.

EBITDA (earnings before interest, taxes, depreciation and amortization) remained virtually unchanged at EUR 2.9 million (H1 2016: EUR 2.9 million). The EBITDA margin therefore declined from 12.6% to 11.7%. Due to lower depreciations EBIT (earnings before interest and taxes) increased slightly year-on-year to EUR 0.71 million (H1 2016: EUR 0.67 million). The EBIT margin remained at the prior-year level of 2.9%. At segment level, the Automotive Technology segment reported EBIT of EUR 0.7 million in the first six months of 2017 (H1 2016: EUR 0.7 million) and the Industrial Electronics segment reported positive EBIT of EUR 48 thousand (H1 2016: minus EUR 42 thousand).

As in the prior-year period, the financial result was minus EUR 0.2 million in the first half of 2017 (H1 2016: minus EUR 0.2 million). Tax expense was EUR 0.1 million (H1 2016: EUR 6 thousand). Group net income was therefore EUR 0.3 million in the reporting period (H1 2016: EUR 0.4 million). Earnings per share were EUR 0.08 (H1 2016: EUR 0.10).

Thanks to a clear improvement in the second quarter of 2017, the operating cash flow was EUR 1.2 million in the first six months of 2017 (H1 2016: EUR 2.3 million). Despite further investment, due to a new long-term bank loan and scheduled repayment instalments, the company recorded a positive overall cash flow of EUR 0.2 million in the reporting period (H1 2016: EUR 0.7 million). The equity ratio is a solid 41% (December 31, 2016: 40%).

The Board of Directors expects orders on hand to rise in the Automotive Technology segment and the Industrial Electronics segment. At the end of the first six months of 2017 orders on hand were well above the prior-year level at EUR 47.8 million (June 30, 2016: EUR 37.0 million). 80% of orders were for the Automotive Technology segment (June 30, 2016: 85%).

Outlook

"The key technologies that will drive the future development of the automotive sector are solutions for electric mobility, safety technology, connectivity, autonomous driving, energy storage technology and energy management. At present, our products directly serve three of these key technologies. A variety of models manufactured by different car producers use electric mobility, energy storage and safety technology from InTiCa Systems. Our solutions for the future-oriented e-mobility and e-solutions markets already account for around 15% of total sales revenue. That proportion will increase further in the future", outlines Günther Kneidinger, Member of the Board of Directors, the perspective of InTiCa Systems AG.

Business performance in the first six months was in line with the Board of Directors' expectations so it is retaining its outlook for fiscal 2017. At present, the Board of Directors still assumes that, given a stable economic environment, Group sales will rise to around EUR 47 million to EUR 50 million in 2017 and the EBIT margin will improve to around 3%. The material cost ratio should drop further and the equity ratio should be held stable.

The complete interim report for the first half year of 2017 is available for download from the Investor Relations section of InTiCa Systems' website at www.intica-systems.com.

InTiCa Systems AG

The Board of Directors

CONTACT Dr. Gregor Wasle | CEO
TEL +49 (0) 851 - 966 92 - 0
FAX +49 (0) 851 - 966 92 - 15
EMAIL investor.relations@intica-systems.com

 

About InTiCa Systems:

InTiCa Systems is a European leader in the development, manufacture and commercialization of inductive components, passive analogue switching technology and mechatronic assemblies. It operates in the Automotive Technology and Industrial Technology segments and has more than 590 employees at its sites in Passau (Germany), Prachatice (Czech Republic) and Silao (Mexico).

The Automotive Technology segment focuses on innovative products that raise the comfort and safety of cars, improve the performance of electric and hybrid vehicles and reduce carbon emissions. InTiCa Systems' Industrial Electronics segment develops and manufactures mechatronic assemblies for the solar industry and other industrial applications.

Forward-looking statements and predictions
This press release contains statements and forecasts referring to the future development of InTiCa Systems AG which are based on current assumptions and estimates by the management that are made using information currently available to them. If the underlying assumptions do not materialize, the actual figures may differ substantially from such estimates. Future developments and results are in fact dependent on a large number of factors; they contain different risks and imponderables and are based on assumptions that may not be accurate. We neither intend nor assume any obligation to update forward-looking statements on an ongoing basis as these are based exclusively on the circumstances prevailing on the date of publication.