SMARTRAC NV 
By
SMARTRAC Reports Fiscal Year 2012 Results
Amsterdam, March 21, 2013 - SMARTRAC N.V., the leading developer, manufacturer and supplier of RFID transponders and inlays, today announces financial figures for the fiscal year 2012. The company further increased its revenues and reported total sales of EUR 255.5 million in the fiscal year 2012 compared to sales of EUR 167.6 million in 2011. EBITDA for 2012 amounted to EUR 23.4 million in 2012 compared to EBITDA of EUR 15.2 million in 2011. EBITDA for 2012, as per definition, excludes exceptional items. Net profit for the period, including non-controlling interests, amounted to EUR 5 million in 2012 compared to net loss of EUR 42 million in 2011.
Business Development 2012
SMARTRAC started the business year with the burden of the flood disaster in Thailand, the positive momentum of the acquisitions conducted at the end of 2011, and the commitment to further improve its excellence. Over the course of the year, integration of the former KSW Microtec AG, Dalton Group, and Neology were completed, while integration of the former UPM RFID has been finalized end of January 2013. Along with the integration, joint product and technology roadmaps were developed and the company started leveraging synergies resulting from the acquisitions.
From an overall perspective, business development in 2012 was characterized by stable demand for high-security inlays, e-Covers and card inlays as well as a very favorable growth in the retail and apparel tracking business. SMARTRAC also introduced several new products for use in access control, animal identification, automated fare collection, cable tagging, item-level tagging, high-security documents, and NFC applications to the market which generated significant customer interest.
Business by Segments 2012
Revenues in the Security Segment (Business Units eID and CTA) increased by 22 percent and amounted to EUR 143 million in 2012 compared to EUR 117 million in 2011. Revenues in the Industry Segment (Business Units Industry & Logistics and ePI, Neology and Dalton) increased by 124 percent to EUR 112 million in 2012 compared to EUR 50 million in 2011. Growth mainly resulted from stable demand for card inlays and PRELAM® products, the significant increase of sales in the ePI business (including the business of former UPM RFID), and the contribution of the new business unit Dalton & Neology.
EBITDA in the Security Segment amounted to EUR 15 million in 2012 compared to EBITDA of EUR 13 million a year ago. This represents an increase of 13 percent. The EBITDA margin of 10 percent (2011: 11 percent) was burdened by higher administration costs mainly due to the acquisitions conducted at the end of 2011.
The Industry Segment reported EBITDA of EUR 10 million in 2012 compared to EBITDA of EUR 3 million reported in 2011. The EBITDA margin further increased from 5 percent in 2011 to 9 percent in 2012.
Overall, SMARTRAC will continue to improve excellence and driving down costs in 2013.
Financial Position and Liquidity 2012
As of December 31, 2012, total assets on the consolidated balance sheet amounted to EUR 329 million, representing an increase of 25 percent compared to the previous year's figure of EUR 264 million. This increase was predominantly related to the inclusion of the former UPM RFID as well as investments in property, plant, and equipment, mainly to rebuild the production site in Thailand after the flood.
Group equity amounted to EUR 168 million as of December 31, 2012, compared to EUR 139 million as of December 31, 2011. The increase in group equity mainly results from the proceeds from the capital increase conducted on March 31, 2012, in relation to the acquisition of the former UPM RFID.
Based on the increased profit, the retained earnings increased from EUR 13 million in 2011 to EUR 18 million in 2012. As of December 31, 2012, SMARTRAC held no treasury stock. Theequity ratio decreased slightly from 53 percent at the end of 2011 to 51 percent as of December 31, 2012.
Net cash provided by operating activities amounted to EUR 16 million in 2012, compared to EUR 6 million in the previous year, due to a higher net profit.
Net cash used in investing activities decreased from EUR 59 million in 2011 to EUR 36 million as of December 31, 2012. Net cash used in investing activities in 2012 mainly related to investments in property, plant, and equipment used for the reconstruction in Thailand and acquisitions performed. In 2011, net cash used in investing activities mainly related to the acquisitions conducted at the end of 2011.
Net cash provided by financing activities amounted to EUR 26 million in 2012, compared to net cash provided by financing activities of EUR 25 million in 2011. In 2011, SMARTRAC received net proceeds from the issuance of share capital. In 2012, the cash inflow mainly resulted from proceeds of secured loans. SMARTRAC signed a EUR 100 million term and revolving facilities agreement in the second quarter of 2012, replacing the syndicated EUR 65 million term and multicurrency revolving facilities agreement concluded in 2009.
In total, cash and cash equivalents and bank overdrafts as of December 31, 2012, increased to EUR 28 million (2011: EUR 22 million).
As of December 31, 2012, SMARTRAC employed a total workforce of 3,635 people compared to 3,676 employees at the end of 2011.
Squeeze-out and Delisting
On July 20, 2012, the Management Board of SMARTRAC N.V. was informed that OEP Technologie B.V. decided to initiate squeeze-out proceedings against all minority shareholders in SMARTRAC N.V. in order to have their shares in SMARTRAC N.V. transferred to OEP Technologie B.V., pursuant to Article 2.92a of the Dutch Civil Code. The Management Board of SMARTRAC N.V. was also informed that OEP Technologie B.V. intended to request the Enterprise Chamber of the Amsterdam Court of Appeal to order the minority shareholders to transfer their shares and to set the price of the shares to be transferred at EUR 11.00 per share.
On September 12, 2012, the SMARTRAC Management Board resolved to apply for a delisting of the company's shares from the Frankfurt Stock Exchange (Prime Standard) and to propose to the general meeting a change of the company's articles of association subject to the approval of the delisting.
At the Extraordinary General Meeting of shareholders held on October 29, 2012, the proposed changes of the company's Articles of Association were approved with 99.9 percent of the votes cast.
On November 30, 2012, SMARTRAC N.V. was informed about the decision of the Frankfurt Stock Exchange regarding its request for a delisting of the company's shares from the Frankfurt Stock Exchange (Prime Standard). On the company's request, the Frankfurt Stock Exchange decided to revoke the listing of the ordinary bearer shares, ISIN NL0000186633, on the regulated market. The Frankfurt Stock Exchange also informed SMARTRAC N.V. that the revocation will become effective at the end of the day on May 28, 2013.
The overall development of the SMARTRAC share in 2012 was characterized by the low free float and the resulting low trading volumes in SMARTRAC shares.
Changes in the Management Board
Dr. Christian Fischer resigned from his position as Chairman of the Management Board and Chief Executive Officer effective September 3, 2012. He left SMARTRAC on December 31, 2012, and handed over responsibility to Christian Uhl and Nigel Sealey. Christian Uhl joined SMARTRAC in May 2006 and Nigel Sealey has been working for SMARTRAC since April 1, 2012, thus providing continuity in the management board.
Christian Uhl was appointed Director A of SMARTRAC N.V. on October 29, 2012, and as Co-Chairman of the Management Board of the company on December 5, 2012. Nigel Sealey was appointed as Director A of SMARTRAC N.V. and as Co-Chairman of the Management Board on January 22, 2013.
The appointment of Christian Uhl and Nigel Sealey as Co-Chairmen of SMARTRAC N.V. acknowledges the complementarity of their professional experiences and skills. In their new role, they will specifically concentrate on accelerating profitable revenue growth and the implementation of action plans focused on the operational and administrative cost structure of the company.
Business Outlook
The SMARTRAC Management intends to further grow the business steadily and robustly and to creating value for employees, shareholders, customers, business partners, and additional stakeholders of the company.
For the 2013 fiscal year, the SMARTRAC Management Board is confident that it will be able to achieve growth and improve the company's profitability. SMARTRAC Group sales are expected to come close to the EUR 300 million mark in 2013.
From a strategic perspective, the Management Board will pursue the target to optimize structures and processes in order to further improve overall efficiency of the Company and profitability of the Group.
"2012 has been another successful year in our company history despite the various challenges we faced," said Christian Uhl, Co-Chairman of the Management Board and CFO. "Based on our technology leadership, the broad product range, and our clear focus on customer needs, we are confident that we will be able to further grow in 2013 together with our customers and business partners."
The SMARTRAC 2012 Annual Report has been published today and is available for download on the company's website at www.smartrac-group.com. The 2012 financial statements will be presented to the Annual General Meeting of Shareholders in Amsterdam on June 18, 2013, for adoption. KPMG ACCOUNTANTS N.V. issued an unqualified auditor's report in relation to the financial statements 2012.
About SMARTRAC:
SMARTRAC is the leading developer, manufacturer, and supplier of RFID transponders and inlays. The company produces both ready-made and customized transponders and inlays used in access control, animal identification, automated fare collection, border control, RFID-based car immobilizers, contactless payment cards, electronic product identification, industry, libraries and media management, laundry, logistics, mobile and smart media (NFC), public transport, retail, and many more.
SMARTRAC was founded in 2000, went public in July 2006, and trades as a stock corporation under Dutch law with its registered headquarters in Amsterdam. The company currently employs approximately 3,600 employees and maintains a global research and development, production, and sales network.
If you have any questions, please contact:
Tanja Moehler
Head of Corporate Communications & Marketing
SMARTRAC N.V.
Phone: +31 20 30 50 157
Email: tanja.moehler@smartrac-group.com
Internet: www.smartrac-group.com
Twitter: www.twitter.com/SMARTRAC_NV
Forward-looking statements:
All forward-looking statements contained in this press release are based on assumptions, planning, and forecasts at the time of publication of this press release. Forward-looking statements always involve uncertainties. Business and economic risks and developments, the conduct of competitors, political decisions, and other factors may cause the actual results to be materially different from the assumptions, planning, and forecasts at the time of publication of this press release. Therefore, SMARTRAC N.V. does not assume any responsibility relating to forward-looking statements contained in this press release. Furthermore, SMARTRAC N.V. does not assume any obligation to update the forward-looking statements contained in this press release.
- Revenues 2012: EUR 255.5 million, representing an increase of 52 percent compared to EUR 167.6 million generated in fiscal year 2011
- EBITDA 2012: EUR 23.4 million compared to EUR 15.2 million in 2011, profitability at 9 percent EBITDA margin
- Balance sheet 2012: Total equity increased to EUR 168 million compared to EUR 139 million in 2011, equity ratio at 51 percent (2011: 53 percent)
- Outlook 2013: Group sales expected to come close to the EUR 300 million mark in 2013, improvement of EBITDA profitability targeted
- Christian Uhl, Co-Chairman of the Management Board & CFO: "The 2012 fiscal year has been another year of growth for SMARTRAC. In 2013, we intend to further improve our cost structure and to further expand our market share and leadership position in the global RFID industry."
Amsterdam, March 21, 2013 - SMARTRAC N.V., the leading developer, manufacturer and supplier of RFID transponders and inlays, today announces financial figures for the fiscal year 2012. The company further increased its revenues and reported total sales of EUR 255.5 million in the fiscal year 2012 compared to sales of EUR 167.6 million in 2011. EBITDA for 2012 amounted to EUR 23.4 million in 2012 compared to EBITDA of EUR 15.2 million in 2011. EBITDA for 2012, as per definition, excludes exceptional items. Net profit for the period, including non-controlling interests, amounted to EUR 5 million in 2012 compared to net loss of EUR 42 million in 2011.
Business Development 2012
SMARTRAC started the business year with the burden of the flood disaster in Thailand, the positive momentum of the acquisitions conducted at the end of 2011, and the commitment to further improve its excellence. Over the course of the year, integration of the former KSW Microtec AG, Dalton Group, and Neology were completed, while integration of the former UPM RFID has been finalized end of January 2013. Along with the integration, joint product and technology roadmaps were developed and the company started leveraging synergies resulting from the acquisitions.
From an overall perspective, business development in 2012 was characterized by stable demand for high-security inlays, e-Covers and card inlays as well as a very favorable growth in the retail and apparel tracking business. SMARTRAC also introduced several new products for use in access control, animal identification, automated fare collection, cable tagging, item-level tagging, high-security documents, and NFC applications to the market which generated significant customer interest.
Business by Segments 2012
Revenues in the Security Segment (Business Units eID and CTA) increased by 22 percent and amounted to EUR 143 million in 2012 compared to EUR 117 million in 2011. Revenues in the Industry Segment (Business Units Industry & Logistics and ePI, Neology and Dalton) increased by 124 percent to EUR 112 million in 2012 compared to EUR 50 million in 2011. Growth mainly resulted from stable demand for card inlays and PRELAM® products, the significant increase of sales in the ePI business (including the business of former UPM RFID), and the contribution of the new business unit Dalton & Neology.
EBITDA in the Security Segment amounted to EUR 15 million in 2012 compared to EBITDA of EUR 13 million a year ago. This represents an increase of 13 percent. The EBITDA margin of 10 percent (2011: 11 percent) was burdened by higher administration costs mainly due to the acquisitions conducted at the end of 2011.
The Industry Segment reported EBITDA of EUR 10 million in 2012 compared to EBITDA of EUR 3 million reported in 2011. The EBITDA margin further increased from 5 percent in 2011 to 9 percent in 2012.
Overall, SMARTRAC will continue to improve excellence and driving down costs in 2013.
Financial Position and Liquidity 2012
As of December 31, 2012, total assets on the consolidated balance sheet amounted to EUR 329 million, representing an increase of 25 percent compared to the previous year's figure of EUR 264 million. This increase was predominantly related to the inclusion of the former UPM RFID as well as investments in property, plant, and equipment, mainly to rebuild the production site in Thailand after the flood.
Group equity amounted to EUR 168 million as of December 31, 2012, compared to EUR 139 million as of December 31, 2011. The increase in group equity mainly results from the proceeds from the capital increase conducted on March 31, 2012, in relation to the acquisition of the former UPM RFID.
Based on the increased profit, the retained earnings increased from EUR 13 million in 2011 to EUR 18 million in 2012. As of December 31, 2012, SMARTRAC held no treasury stock. Theequity ratio decreased slightly from 53 percent at the end of 2011 to 51 percent as of December 31, 2012.
Net cash provided by operating activities amounted to EUR 16 million in 2012, compared to EUR 6 million in the previous year, due to a higher net profit.
Net cash used in investing activities decreased from EUR 59 million in 2011 to EUR 36 million as of December 31, 2012. Net cash used in investing activities in 2012 mainly related to investments in property, plant, and equipment used for the reconstruction in Thailand and acquisitions performed. In 2011, net cash used in investing activities mainly related to the acquisitions conducted at the end of 2011.
Net cash provided by financing activities amounted to EUR 26 million in 2012, compared to net cash provided by financing activities of EUR 25 million in 2011. In 2011, SMARTRAC received net proceeds from the issuance of share capital. In 2012, the cash inflow mainly resulted from proceeds of secured loans. SMARTRAC signed a EUR 100 million term and revolving facilities agreement in the second quarter of 2012, replacing the syndicated EUR 65 million term and multicurrency revolving facilities agreement concluded in 2009.
In total, cash and cash equivalents and bank overdrafts as of December 31, 2012, increased to EUR 28 million (2011: EUR 22 million).
As of December 31, 2012, SMARTRAC employed a total workforce of 3,635 people compared to 3,676 employees at the end of 2011.
Squeeze-out and Delisting
On July 20, 2012, the Management Board of SMARTRAC N.V. was informed that OEP Technologie B.V. decided to initiate squeeze-out proceedings against all minority shareholders in SMARTRAC N.V. in order to have their shares in SMARTRAC N.V. transferred to OEP Technologie B.V., pursuant to Article 2.92a of the Dutch Civil Code. The Management Board of SMARTRAC N.V. was also informed that OEP Technologie B.V. intended to request the Enterprise Chamber of the Amsterdam Court of Appeal to order the minority shareholders to transfer their shares and to set the price of the shares to be transferred at EUR 11.00 per share.
On September 12, 2012, the SMARTRAC Management Board resolved to apply for a delisting of the company's shares from the Frankfurt Stock Exchange (Prime Standard) and to propose to the general meeting a change of the company's articles of association subject to the approval of the delisting.
At the Extraordinary General Meeting of shareholders held on October 29, 2012, the proposed changes of the company's Articles of Association were approved with 99.9 percent of the votes cast.
On November 30, 2012, SMARTRAC N.V. was informed about the decision of the Frankfurt Stock Exchange regarding its request for a delisting of the company's shares from the Frankfurt Stock Exchange (Prime Standard). On the company's request, the Frankfurt Stock Exchange decided to revoke the listing of the ordinary bearer shares, ISIN NL0000186633, on the regulated market. The Frankfurt Stock Exchange also informed SMARTRAC N.V. that the revocation will become effective at the end of the day on May 28, 2013.
The overall development of the SMARTRAC share in 2012 was characterized by the low free float and the resulting low trading volumes in SMARTRAC shares.
Changes in the Management Board
Dr. Christian Fischer resigned from his position as Chairman of the Management Board and Chief Executive Officer effective September 3, 2012. He left SMARTRAC on December 31, 2012, and handed over responsibility to Christian Uhl and Nigel Sealey. Christian Uhl joined SMARTRAC in May 2006 and Nigel Sealey has been working for SMARTRAC since April 1, 2012, thus providing continuity in the management board.
Christian Uhl was appointed Director A of SMARTRAC N.V. on October 29, 2012, and as Co-Chairman of the Management Board of the company on December 5, 2012. Nigel Sealey was appointed as Director A of SMARTRAC N.V. and as Co-Chairman of the Management Board on January 22, 2013.
The appointment of Christian Uhl and Nigel Sealey as Co-Chairmen of SMARTRAC N.V. acknowledges the complementarity of their professional experiences and skills. In their new role, they will specifically concentrate on accelerating profitable revenue growth and the implementation of action plans focused on the operational and administrative cost structure of the company.
Business Outlook
The SMARTRAC Management intends to further grow the business steadily and robustly and to creating value for employees, shareholders, customers, business partners, and additional stakeholders of the company.
For the 2013 fiscal year, the SMARTRAC Management Board is confident that it will be able to achieve growth and improve the company's profitability. SMARTRAC Group sales are expected to come close to the EUR 300 million mark in 2013.
From a strategic perspective, the Management Board will pursue the target to optimize structures and processes in order to further improve overall efficiency of the Company and profitability of the Group.
"2012 has been another successful year in our company history despite the various challenges we faced," said Christian Uhl, Co-Chairman of the Management Board and CFO. "Based on our technology leadership, the broad product range, and our clear focus on customer needs, we are confident that we will be able to further grow in 2013 together with our customers and business partners."
The SMARTRAC 2012 Annual Report has been published today and is available for download on the company's website at www.smartrac-group.com. The 2012 financial statements will be presented to the Annual General Meeting of Shareholders in Amsterdam on June 18, 2013, for adoption. KPMG ACCOUNTANTS N.V. issued an unqualified auditor's report in relation to the financial statements 2012.
About SMARTRAC:
SMARTRAC is the leading developer, manufacturer, and supplier of RFID transponders and inlays. The company produces both ready-made and customized transponders and inlays used in access control, animal identification, automated fare collection, border control, RFID-based car immobilizers, contactless payment cards, electronic product identification, industry, libraries and media management, laundry, logistics, mobile and smart media (NFC), public transport, retail, and many more.
SMARTRAC was founded in 2000, went public in July 2006, and trades as a stock corporation under Dutch law with its registered headquarters in Amsterdam. The company currently employs approximately 3,600 employees and maintains a global research and development, production, and sales network.
If you have any questions, please contact:
Tanja Moehler
Head of Corporate Communications & Marketing
SMARTRAC N.V.
Phone: +31 20 30 50 157
Email: tanja.moehler@smartrac-group.com
Internet: www.smartrac-group.com
Twitter: www.twitter.com/SMARTRAC_NV
Forward-looking statements:
All forward-looking statements contained in this press release are based on assumptions, planning, and forecasts at the time of publication of this press release. Forward-looking statements always involve uncertainties. Business and economic risks and developments, the conduct of competitors, political decisions, and other factors may cause the actual results to be materially different from the assumptions, planning, and forecasts at the time of publication of this press release. Therefore, SMARTRAC N.V. does not assume any responsibility relating to forward-looking statements contained in this press release. Furthermore, SMARTRAC N.V. does not assume any obligation to update the forward-looking statements contained in this press release.
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