HALF-YEAR REPORT2017

KEY FIGURES
01.01.–

01.01.–

30.06.2017

30.06.2016

Change in %Total incoming orders

244.5

216.3

13.2

Rollers

53.5

48.1

11.2

Drives

71.7

61.7

16.2

Conveyors & Sorters

51.1

44.5

14.8

in CHF million, unless otherwise indicatedIncoming orders / net sales

Pallet & Carton Flow

27.0

32.8

–17.7

Total net sales

203.3

187.1

8.6

EBITDA

29.6

30.9

–4.0

in % of net sales

14.6

16.5

EBITA

23.8

25.4

in % of net sales

11.7

13.6

EBIT

20.5

22.0

in % of net sales

10.1

11.7

Net profit

15.3

15.8

in % of net sales

7.5

8.4

Operating cash flow

17.6

14.2

in % of net sales

8.7

7.6

Free cash flow

8.2

8.3

in % of net sales

4.0

4.4

Total investments / capital expenditure

9.7

6.3

Profitability

–6.4
–6.6
–3.1

Cash flow

Balance sheet

23.9
–1.6
53.7

30.06.201731.12.2016

Total assets

332.9

324.8

2.5

Goodwill

16.9

17.3

–2.3

Net financial assets

28.8

38.0

–24.2

Equity

231.2

233.1

–0.8

Equity ratio (equity in % of assets)

69.5

71.8

Return on equity (in %)

13.2

16.4

–19.5

–14.6

Other key figures
RONA (return on net assets, in %)

14.6

17.1

Average number of employees

2060

1892

8.9

Net sales per employee (in CHF thousand)

197

212

–7.1

Productivity (added value / total personnel expenses)

1.96

2.10

–6.7

ABOUT INTERROLL

4

INTERROLL ON THE CAPITAL MARKET5REPORT BY THE BOARD OF DIRECTORS AND GROUP MANAGEMENT 

6

FINANCIAL POSITION, EARNINGS AND CASH FLOWS

8

PRODUCT GROUPS10

REGIONS14
INTERIM FINANCIAL STATEMENTS OF INTERROLL GROUP

17

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

17

CONSOLIDATED INCOME STATEMENT18

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

19

CONSOLIDATED STATEMENT OF CASH FLOWS

20

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY21

NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS

22

BASIS OF THE CONSOLIDATED FINANCIAL STATEMENTS

22

SEGMENT INFORMATION

23

NOTES TO THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION24

NOTES TO THE CONSOLIDATED INCOME STATEMENT25

NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS

26

NOTES TO THE CONSOLIDATED STATEMENT OF CHANGES IN EQUITY26

FURTHER DISCLOSURES AND INFORMATION

26

FINANCIAL CALENDAR 2018

27

CONTACT AND IMPRINT

27

ABOUT INTERROLL

4ABOUT INTERROLL
The Interroll Group is the leading global provider of material handling solutions. The company was
founded in 1959 and has been listed on the SIX Swiss Exchange since 1997. Interroll provides system
integrators and OEMs with a wide range of platform-based products and services in these categories:
Rollers (conveyor rollers), Drives (motors and drives for conveyor systems), Conveyors & Sorters aswell as Pallet & Carton Flow (flow storage systems). Interroll solutions are in operation in express
and postal services, e-commerce, airports, the food and beverage industry, fashion, and automotive
sectors, and many other manufacturing industries. Among the end users are leading brands suchas Amazon, Bosch, Coca-Cola, DHL, Nestlé, Procter & Gamble, Siemens, Walmart and Zalando.
Head­quartered in Switzerland, Interroll has a global network of 32 companies with sales of aroundCHF 401.5 million and 2,000 employees (2016).
www.interroll.com

23,000CUSTOMERSAROUND
THE WORLD

32
COMPANIESAROUND
THE WORLD

2,000
EMPLOYEESAROUND
THE WORLDPALLET & CARTON FLOWCONVEYORS & SORTERS

INTERROLL PRODUCT GROUPSROLLERSDRIVESINTERROLL ON THE CAPITAL MARKET

5

INTERROLL ON THE CAPITAL MARKET

Share price performance of Interroll relative to
Swiss Performance Index SPI / SXGE
25%
20%
15%
1280.00
CHF

10%
5%
0%

Interroll share
Share price as at 31 Dec. 2015: CHF 1,110.00
Share price as at 30 June 2016: CHF 1,280.00
SPI / SXGE

1110.00
CHF–5%
January

February

March

April

Mai

June

SWISS STOCK MARKET DID VERY WELL
The Swiss stock exchange experienced a very lively
first six months of 2017. The blue chips barometer,
the Swiss Market Index (SMI), reached 8,907 points at
the end of June, thus improving 8.4 % in the first halfof the year. The broad Swiss Performance Index (SPI)
climbed to 10,128 points, which is as much as 13.0 %better than at the end of 2016.
INTERROLL SHARE ONCE AGAIN OUTPERFORMED SWISS INDICES IN ITS ANNIVERSARYYEAR
The Interroll share once again improved on the previous year’s performance in the first half of 2017. At aclosing price of CHF 1,280 on 30 June 2017, the Interroll share was up 15.3 % on the closing price at the endof 2016 (CHF 1,110). As such, the Interroll share once
again outperformed the Swiss indices.

Interroll is celebrating its 20-year stock exchange
anniversary. The registered shares were issued at CHF
235.00 per share on 5 June 1997. On 5 June 2017, theGroup’s market capitalisation was almost CHF 1.1
billion.
LITTLE CHANGE TO FREE FLOAT
Around 21 % of the Interroll shares (31 December
2016: 22 %) are in the hands of the remaining founderfamilies. The free float as defined by the SIX Swiss
Exchange was therefore around 79 % on 30 June 2017(31 December 2016: 78 %).

REPORT BY THE BOARD OF DIRECTORS AND GROUP MANAGEMENT

6GROWTH ­STRATEGY:­E-COMMERCE AND­INDUSTRY 4.0

Paul Zumbühl, Chief Executive Officer

Dear shareholders,customers, employees and business partners,
The Interroll Group repeated its excellent performanceof the 2016 financial year during the first half of 2017
and successfully continued its growth strategy withparticularly strong new orders, net sales and cash flow.
Order intake rose by 13.2 % (12.8 % organically) in thefirst six months to a new record high of CHF 244.5
million (previous year: CHF 216.1 million). Expressedin local currency, growth was even stronger at 14.9 %.
Included in the incoming orders is a large contract forfive vertical sorters in the low tens of millions for aleading provider of package delivery and logistics solutions in the US.
Net sales grew by 8.6 % (8.2 % organically), reaching a
new consolidated company record of CHF 203.3 million (previous year: CHF 187.1 million). Sales growth
was 10.6 % in local currency.
Our efforts to generate new business bore fruit in
the form of many orders from the food and beverageindustry and the airport construction sector. Interroll’sbusiness growth is also supported by the global mega­
trends of e-commerce and online shopping and therelated surge in demand for efficient materials handlingsolutions by providers of postal and logistics services.
The Group is poised to take even better advantage fromthe rapidly growing trends “Industry 4.0” and “Indus-

trial Internet of Things”. Process digitisation is growing
in importance every single day. In materials handling,
this involves the reduction of throughput times in thetransport chain, solutions for decentralised conveyors
and the expansion of services, e.g. operating and maintenance services.
As announced at the financial press conference inMarch 2017, Interroll wants to play a leading role here
too and will invest up to an additional CHF 5 million
per year in research and development over the next two
years.
This is also the main reason for the decline in EBITDA
of 4.0 % to CHF 29.6 million (previous year: CHF
30.9 million) in the first half of the year. The EBITDA
margin was 14.6 % (previous year: 16.5 %). EBIT contracted by 6.6 % to CHF 20.5 million (previous year:
CHF 22.0 million), while the EBIT margin stood at
10.1 % ­(previous year: 11.7 %).
Net profit fell by 3.1 % to CHF 15.3 million (pre­­vious year: CHF 15.8 million). Thanks to good balance
sheet management, operating cash flow improved
substantially by 23.9 % to CHF 17.6 million (previous
year: CHF 14.2 million). At CHF 9.7 million (previous
year: CHF 6.3 million), gross investments increased
significantly.
Free cash flow was at CHF 8.2 million (previous year:
CHF 8.3 million).

REPORT BY THE BOARD OF DIRECTORS AND GROUP MANAGEMENT

7“Our excellence is sustainably
guided by the principles
of efficiency, culture andinnovation.”
Urs Tanner, Chairman of the Board of Directors

GREAT CAPACITY FOR INNOVATION AND THE
RIGHT PARTNER IN THE MARKET
Interroll further strengthened its capacity for innovation and demonstrated its expertise by launching new
products on the market. The new Softstart Control
solution for checkout counters presented by Interroll
at EuroShop in March is a brand new, multi-­functional
system that is very easy to install. With the new
DM0080 as the first model, Interroll introduced a newgeneration of drum motors at the LOGIMAT fair in
Stuttgart. In May, Interroll confirmed its position as atechnological leader in the media with the presentationof the most powerful synchronous drum motor for
belt conveyor systems available in the market, with aproven output of 1.1 kilowatts.

focus and strong identity. This is why ­Interroll is continuing its “Culture for Growth” programme this year.

The partners of our “Rolling on Interroll” platform
continue to appreciate our extensive expertise and project-based market experience. By now, the partner programme comprises 62 members from 31 countries withwhose support we are continuing to develop a common
vision of material flow in the future and intensifying
our efforts to increase added value for our joint customers. This very powerful community dedicated toinnovation and communication is constantly growing.

Sant’Antonino, 4 August 2017

CULTURE FOR GROWTH AND COMPLIANCE
MANAGEMENT STRENGTHENED FURTHERInterroll’s global success is based on collaboration
within its team and with the customers. In order toachieve the strong growth that we are targeting, it isvery important to have a corporate culture with a clear

In December 2016, we underlined our commitment to
responsible corporate governance by joining the UN
Global Compact. We have since aligned several of ourcompliance management processes and courses to thisCompact, which we believe will further improve ourcompetitive position.
Together with our most valuable resources, the employees of Interroll, we wish to create long-term excellence
for our customers and shareholders. In doing so, weare sustainably guided by the principles of efficiency,­culture and innovation.

Urs Tanner
Chairman of theBoard of Directors

Paul Zumbühl
Chief Executive Officer

FINANCIAL POSITION, EARNINGS AND CASH FLOWS

8FINANCIAL POSITION,­EARNINGS AND CASH FLOWSNET SALES

149.1

157.1

2013

2014

171.3

2015

EBITDA AND
EBITDA MARGIN
187.1

2016

203.3
21.4
14.4 %

2017

EBIT AND EBIT MARGIN

13.1
8.8 %

2013

17.5
10.2 %

22.0
11.7 %

2015

2017

EQUITY AND
EQUITY RATIO

170.9
68.7 %

186.1
70.1 %

192.3
68.1 %

213.3
66.1 %

29.6
14.6 %

2014

2015

2016

2017

15.8
8.4 %

15.3
7.5 %

2016

2017

NET PROFIT

10.5
7.1 %

2016

30.9
16.5 %

18.2
11.6 %

20.5
10.1 %

8.8
5.6 %

2014

2013

26.5
15.5 %

2013

12.8
7.5 %
7.1
4.5 %

2014

2015

OPERATIONAL
CASH FLOW
231.2
69.5 %

17.6

17.6
14.2
11.6

5.0

2013

2014

2015

2016

All amounts in CHF million

2017

2013

2014

2015

2016

2017

FINANCIAL POSITION, EARNINGS AND CASH FLOWS9STRONG ORDER INTAKE, NET SALESAND CASH FLOWAs announced at the financial press conference in March 2017, Interroll wants
to exploit its financial strength to invest up to an additional CHF 5 million peryear in research and development in 2017 and 2018. The Group also wants
to strengthen its position as a technology and innovation leader in materials­handling in the field of “Industry 4.0”.

ORDER INTAKE AND NET SALES REACH NEW
RECORD HIGHS
In the first half of 2017, the Interroll Group received
record new orders for CHF 244.5 million (previous
year: CHF 216.1 million). In local currencies, theGroup posted 14.9 % growth. Growth in the reporting
currency reached 13.2 % (organically 12.8 %) and was
supported by the growing product business as well as
by the promising demand for projects mainly for the
food and beverage industry, e-commerce and airports.
New orders received from the Asia region improved bymore than 33 %.
At CHF 203.3 million (previous year: CHF 187.1 million), consolidated net sales also reached a new recordand grew by 8.6 % in the reporting currency (8.2 %organically). In local currencies, the Group posted
10.6 % growth. Europe reported particularly strong
sales growth of some 12 %, with all the countries contributing to this performance.
RESULTS BELOW PREVIOUS YEAR
Mainly as a result of the increase in research anddevelop­­ment costs mentioned above, earnings before
interest, taxes, depreciation and amortisation (EBITDA)
dropped by 4.0 % in the first half of 2017 to CHF 29.6
million (previous year: CHF 30.9 million).
The EBITDA margin was 14.6 % (previous year: 16.5 %).
Earnings before interest and taxes (EBIT) amounted to
CHF 20.5 million (previous year: CHF 22.0 million),while the EBIT margin stood at 10.1 % (previous year:
11.7 %).
Net profit fell by 3.1 % to CHF 15.3 million (previous
year: CHF 15.8 million). The net profit margin was
7.5 % (previous year: 8.4 %).

SOLID BALANCE SHEET PERFORMANCE
Total assets increased to CHF 332.9 million on 30 June
2017, up 2.5 % from the end of 2016 (CHF 324.8 mil­lion). In addition to the accounts receivable, the workin progress included in inventory increased substantially in the first half of the year. Interroll also
received more payments on deposit. This development
reflects the intensive project work done by the Interroll
Group in the reporting period.
Among other things following the payment of a div­
idend of CHF 13.6 million in May 2017, net financial
assets dropped to CHF 28.8 million as at 30 June 2017(31 December 2016: CHF 38.0 million).
Equity declined by 0.8 % to CHF 231.2 million (31December 2016: CHF 233.1 million). The equity ratio
was 69.5 %, compared to 71.8 % at the end of 2016.
STRONG CASH FLOW
Thanks to good balance sheet management, operating
cash flow increased substantially on the prior-year
period (CHF 14.2 million) by 23.9 % to CHF 17.6
million.
At CHF 9.7 million, gross investments were consider­ably higher than in the previous year (CHF 6.3 million).
These in particular include the further expansion of
capacity at the Global Center of Excellence for rollers
in Wermelskirchen, Germany and the purchase of land
reserves for the Regional Center of Excellence for belt
curves in Kronau, Germany.
Because of the higher investments, the free cash flow
declined to CHF 8.2 million (previous year: CHF 8.3
million).

PRODUCT GROUPS

10

GROWING PRODUCT BUSINESS,PROMISING PROJECT DEMAND
Interroll’s range of products comprises four product groups: “Rollers”, “Drives”,“Pallet & Carton Flow" and “Conveyors & Sorters”. The “Rollers” and “Drives”
product groups performed particularly well in the first half of 2017.

PRODUCT GROUP: ROLLERS
The “Rollers” product group serves as the foundationof the Interroll portfolio. Interroll has been producing rollers at Wermelskirchen in Germany since 1959,
and now also produces rollers at five other sites. As
such, Interroll is the world leader in this field. Rollers are used in many applications for internal logistics.
Growth in the first half was also supported by very
short delivery times, highly efficient production processes, proximity to customers and the excellent quality of Interroll’s products. In addition, the company
anticipated and exploited the potential offered by thelatest market trends such as e-commerce, investments
in modernisation and outsourcing.
In the first half of 2017, Interroll acquired new business for rollers in all regions. This strong demand isreflected in the production figures. Demand was also
boosted by the further expansion of the customer basethrough Interroll’s intensive sales efforts. The growing
use of rollers in the MCP conveyor platform further
strengthened synergies between Interroll’s individual
product groups.

Top quality Interroll conveyor rollers, available
in 60,000 different configurations.

The good performance of this product group is confirmed by the sales and order intake figures for the firsthalf of 2017. At CHF 53.5 million, consolidated sales
were up 11.2 % on the prior-year period (CHF 48.1
million). Consolidated order intake was 18.2 % better
at CHF 55.1 million than in the prior-year period(CHF 46.6 million).
All regions made a positive contribution to this development, with demand in China providing a particular highlight. The Regional Center of Excellence inSuzhou (China) was equipped with a new production
line and the related know-how by the Global Center of
Excellence in Wermelskirchen in Germany.
The innovative magnetic speed controller MSC 50 has
been welcomed by the markets. This device smartly
controls the speed of items carried on gravity roller
conveyors, thus preventing damage to these goods.
Strong demand for this product group allowed the
expansion of the Global Center of Excellence for rollers in Wermelskirchen, Germany. In 2016, Interroll
already invested EUR 5 million in the expansion of its
building in Wermelskirchen, and this year the company will invest another EUR 3 million in the Global
Center of Excellence.

PRODUCT GROUPS

11

PRODUCT GROUP: DRIVESThe portfolio of the “Drives” product group includes
driven conveyor rollers (24-volt RollerDrive), control systems and drum motors. The Global Centers of
Excellence in Baal, Germany and in Hvidovre, Denmark bear global responsibility for drum motors at theInterroll Group.
Sales amounted to CHF 71.7 million, up 16.2 % on theprevious year (CHF 61.7 million). Consolidated orderintake rose by 17.8 % to CHF 75.5 million (prior-year
period: CHF 64.1 million). The Americas region performed particularly well and sales of drum motors
increased by 24 %. The Asia-Pacific region also posted
growth in this area of around 15 %.
EMEA received 29 % more orders for the RollerDrive
than in the first half of 2016, while Asia-Pacific posted

an increase in orders of 71 %. Interroll, with its flexible,easy-to-install solutions, is a global leader in this field.
In addition to being energy-efficient, the 24-volt RollerDrive is much quieter than comparable products.
In March 2017, Interroll introduced a new generationof drum motors to the European market. The innovative motor platform, which is predominantly used formodern conveyor belt systems in distribution centers,in production areas or in the food industry, has acompletely modular design and encompasses bothsynchronous and asynchronous drive solutions. The
product will be launched on the US and Asian markets
during the course of this year.
In May, Interroll also launched the world’s most powerful synchronous drum motor for conveyor belt systems with a proven output of 1.1 kilowatts. With thisnew drum motor, Interroll customers can flexibly andefficiently implement new application scenarios in theinternal flow of materials.
At EuroShop in Düsseldorf, Interroll presented a new,smart controlling system for checkout counters. The
new Softstart Control solution assumes numerous
control functions and is an easy-to-install control system. The new solution guarantees smooth running andgentle braking of the belt, even when it is heavily laden.
More than 60 percent of all checkout counters worldwide are now fitted with key components from Interroll. Customers include Walmart, Tesco, Coop, Metro,
Lidl, Aldi and Edeka.

Interroll Drum Motors and the RollerDrive product family comply
with highest efficiency standards.

PRODUCT GROUPS

12

PRODUCT GROUP: PALLET & CARTON FLOWThe “Pallet & Carton Flow” product group offers flow
storage solutions for pallets and parcel packaging
based on the FIFO (first in, first out) or LIFO (last in,
first out) principles. This product group is the responsibility of Interroll’s Global Center of Excellence in La
Roche-sur-Yon in France.
At the end of the first half of 2017, Interroll posted adecline in consolidated sales for this product groupof 17.7 % to CHF 27.0 million (previous year: CHF
32.8 million). Some projects in South Africa could
be invoiced in the current year. The big mineral waterproject in Asia that was invoiced last year could not becompensated, however.

Robust and reliable Interroll
flow storage solutions.

Consolidated order intake dropped by 7.5 % to CHF
28.6 million (previous year: CHF 30.9 million).
Demand was particularly strong in the first half of2017 in Asia and in North America, with demand
from the food and beverage industry remaining very
good. Interesting orders were received from Indonesia
and the Philippines in the reporting period.
Flow storage solutions have proven to be particularly
cost-effective for warehouses with high stock turnover.
Interroll’s flow storage systems are checked at Interroll’s Test Center in La Roche-sur-Yon in France. After
50,000 test cycles under extreme conditions, Interroll
can guarantee a long service life and maximum safety.
Interroll sees great market potential in expanding thisarea with semi-automatic and fully automatic solutions
and is preparing for new developments in this field.

PRODUCT GROUPS

13

PRODUCT GROUP: CONVEYORS & SORTERS
The “Conveyors & Sorters” product group comprises
sorter and conveyor solutions that were developed at
the Global Centers of Excellence in Sinsheim (Germany) and Cañon City (USA). These include crossbelt
sorters, belt curves and modular conveyor platforms(MCP). Interroll has a strong position in this segmentwith its products and solutions, in particular in theequipping of airports and of postal/logistics distribution centers and in e-commerce. Projects for the tyreindustry are also growing.
The product group generated consolidated sales in
the first half of 2017 of CHF 51.1 million, which is anincrease of 14.8% over the previous year (CHF 44.5
million). Order intake increased again by 14.4 % to
CHF 85.2 million compared to CHF 74.5 million in
the previous year.

Interroll’s modular conveyor platform offers
application flexibility.

Interroll received new orders for equipping the distribution centers of one of the leading courier companies
in North America in the first half of 2017. In Europe,
too, many orders were received from the postal andlogistics services sector and from the food and beverage industry.
Modern materials flow facilities can be quickly andefficiently planned using Interroll’s modular concept.
Changes can be made at any time and can even still be
implemented during the installation phase. Facilities
designed to take advantage of Interroll’s drive concepts
are notable for their maximised availability, energy
efficiency and very low operating and maintenancecosts. This applies to new facilities as well as to modernised equipment.
The Regional Center of Excellence for belt curves in
Kronau in Germany was commissioned in the firstquarter of 2017. It was built from the company divisions acquired from Ortner GmbH in the fourth quarter of 2016. Additional land reserves were purchased
for this Regional Center of Excellence in Kronau in
Germany during the reporting period.

REGIONS

14

SUSTAINABLE GROWTH IN ALL REGIONS
We continued our globalisation strategy in the first half of 2017 by tapping into newmarkets and reaching new customers. Interroll posted order intake growth in all regions.
Europe-Middle East-Africa (EMEA) accounted for 61 % of total revenue, America for
28 % and Asia-Pacific for 11 %. Expectations regarding the newly concentrated “Tyre& Automotive” activities were exceeded. This focused industry management team supports customers in Europe and overseas and at the same time also develops new markets.

EUROPE-MIDDLE
EAST-AFRICAREGION POSTS SOLID PERFORMANCEIn the EMEA region, the growth of the past few years
continued in the first half of 2017. Incoming orders,already at a high level, increased by 3.5 % on the previous year to CHF 135.3 million. Sales amounted to
CHF 124.8 million, up 12.0 % on the prior-year period(CHF 111.5 million).

At 61 % of total sales, EMEA is still the most importanteconomic region for the Interroll Group. The technicalrequirements for internal logistics suppliers are highand demand flexible customer relationships, i­ndustry
knowledge, technical expertise to solve problems,innovative answers to growing complexity, and new
developments.

This performance was driven by a huge demand for rollers, drives and conveyor belts. While Central Europe,
Eastern Europe and Northern Europe could sub­stantially improve on their prior-year results, growth inWestern Europe declined in the wake of a strong previous year. Africa reported encouragingly strong sales
growth, albeit starting from a lower level.

At the international LogiMAT trade fair in Stuttgart,
Germany in March this year, Interroll’s newly designed
stand presented technical innovations and showcased
the company's broad industry knowledge and the highquality of its production and sales processes.

Interroll at the LogiMAT 2017 in Stuttgart

REGIONS

15

AMERICAS
ACTIVE PROJECT REGION
Sales for the America region amounted to CHF 56.4
million, up 9.5 % on the previous year (CHF 51.5 million). The North American market spearheaded by the
US accounted for the lion's share of this performance.
After a small “breather” in 2016, Interroll managed topost growth in this region again, thanks to continued
strong demand from e-commerce, the food industry
and the distribution center business. Interroll further
strengthened its sales footprint in the US in the reporting period by establishing a new sales company in the
Atlanta region.
Order intake, which grew by 25.7 % to CHF 76.6 million, added substantial impetus to the success of thisIntralogistics Latin America trade fair in Mexico City

region. Interroll received a large contract for five vertical sorters in the low tens of millions for a leading provider of packaging and logistics solutions in the US.
An office was opened in Mexico City to expand Interroll’s presence in the important South American
growth market. Interroll intends to use this location
as a hub for tapping into the markets in Mexico andits neighboring countries, which are growing dy­­
namically on the back of e-commerce and the auto­
mobile industry and offer much business potential. Thiswas successfully demonstrated by the Interroll productportfolio at the “Intralogistics Latin America” trade fairheld in Mexico City at the end of June.
Delivery of sorters to the Brazilian Post Office con­tinued in the reporting year. Interroll has a very
successful local team to look after its long-standing
customer relationships in the challenging but still
very promising Brazilian market. In June, Interroll
successfully presented all its product groups to theSouth American food industry at the FISPAL trade
fair in São Paolo.

REGIONS

16

ASIA-PACIFICREGION WITH EXCELLENT GROWTHPROSPECTS
Interroll’s sales in the Asia-Pacific region contracted
in the first half of 2017. A large project for Korea was
invoiced in the previous year, which left a gap in thereporting year. Sales for the first six months of this year
amounted to CHF 22.1 million, 8.7 % less than in theprior-year period (CHF 24.2 million).
Order intake on the other hand rose by 33.7 % from
CHF 24.4 million in the previous year to a new record
high of CHF 32.6 million.
Demand for Interroll “Rollers” and “Drives” tech­
nologies in particular, improved in this region.

As in the past years, China was Interroll’s most important market in the region and posted further growth aswell as good order intake.
Positive impetus came from Thailand. A resurge in neworders in Korea supports the positive outlook. Sales
trended very positively in South-East Asia and some
growth potential could be realised. This growth trend
also continued with strong order intake.
This region is increasingly benefiting from the globalisation of the Interroll Group and the establishment oflocal production facilities. The successful integrationof the Regional Centers of Excellence in Suzhou andShenzhen into the production network continued togenerate consistently positive synergy effects in the firsthalf of 2017 thanks to improved local technical expertise and greater proximity to customers.
Interroll is consistently implementing its productstrategy in Asia, too. This was very visible in April at
KoreaMAT, one of the leading intralogistics trade fairs
in the region. Interroll will launch its new generationof drum motors on the Asian market in autumn thisyear. Global market opportunities are thus strengthened by innovative and globally available technologies
and services.

Interroll at KOREAMAT 2017

STATEMENT OF FINANCIAL POSITION

17

1

INTERIM FINANCIAL STATEMENTS OF INTERROLL GROUP

1.1

Consolidated statement of financial positionin CHF thousand

30.06.2017

in %31.12.2016

in %ASSETS
Property, plant and equipment

97,73695,859Intangible assets

36,517

38,629Financial assets

658

655

Deferred tax assets

2,464

3,207

Total non-current assets
Inventories

137,375

41.3

62,024

138,350

Current tax assets

2,175

1,202

Trade and other accounts receivable

99,31398,725

Cash and cash equivalents

42.6

48,274

31,97538,264

Total current assets

195,487

58.7

186,465

57.4

Total assets

332,862100.0

324,815

100.0

EQUITY AND LIABILITIESShare capital

854

854

Share premium

7,894

7,184

Reserve for own shares–3,565–1,914

Translation reserve–57,688–55,083

Retained earnings

283,700

Total equity

231,195

282,04469.5

233,085

71.8

Financial liabilities

19

Deferred tax liabilities

1,526

3,050

Pension liabilities

8,309

8,154

Provisions

7,419

Total non-current liabilities

17,273Financial liabilities

3,208

283

Current tax liabilities

11,633

13,959Trade and other accounts payable

69,553

Total current liabilities

84,39425.4

73,659Total liabilities

101,667

30.5

91,73028.2

Total equity and liabilities

332,862100.0

324,815

100.0

6,867
5.2

18,071

5.6

59,417
22.6

CONSOLIDATED INCOME STATEMENT

18

1.2

Consolidated income statement
Jan.–Jun.

Jan.–Jun.

2017

in %

2016

in %

Variancein %Net Sales

203,276

100.0

187,123100.0

16,153

8.6

Material expenses–83,787–41.2–79,948–42.7

Personnel expenses–64,207–31.6–56,766–30.3–1,244–4.0–1,629–6.4–1,440–6.6

in CHF thousand

Increase / (decrease) in workin progress, finished products andown goods capitalised

6,569

3.2

10,217

5.5

Other operating expenses–33,675–16.5–30,659–16.4

Other operating income

1,471

0.7

924

0.5

and amortization (EBITDA)

29,64714.6

30,891

16.5

Depreciation–5,829–2.9–5,444–2.9

23,81811.7

25,447

13.6

Operating result before depreciation

Operating result before amortisation(EBITA)
Amortisation–3,306–1.6–3,495–1.9

Operating result (EBIT)

20,512

10.1

21,952

11.7

Financing expenses

–827

–0.4

–15

–0.0

Financing income

75

0.0

646

0.3

Financing result

–752

–0.4

631

0.3

–1,383–219.2

19,7609.7

22,583

12.1–2,823–12.5

Income tax expense–4,485–2.2–6,818–3.6

Result15,275

7.5

15,765

8.4

–490

–3.1

15,275

7.5

15,765

8.4

–490

–3.1

Result before income taxes

Result attributable to:– Non-controlling interests– Owners of Interroll Holding Ltd.
Values per share (in CHF)
Non-diluted earnings (result) per share

17.94

18.54

–0.60

–3.2

Diluted earnings (result) per share

17.94

18.54

–0.60

–3.2

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

19

1.3

Consolidated statement of comprehensive income

in CHF thousand

ResultJan.–Jun.

Jan.–Jun.

2017

2016

15,275

15,765

Other income
Items that in the future may be reclassified subsequently to income statement– Currency translation differences–2,605–1,110Total items that in the future may be reclassified subsequently to income statement–2,605–1,110

Other income–2,605–1,110Comprehensive income

12,67014,655

12,67014,655Result attributable to:– Non-controlling interests– Owners of Interroll Holding Ltd.

CONSOLIDATED STATEMENT OF CASH FLOWS

20

1.4

Consolidated statement of cash flows
Jan.–Jun.

Jan.–Jun.

2017

2016

Result15,275

15,765

Depreciation, amortisation and impairment

in CHF thousand

9,135

8,939

Loss/(gain) on disposal of tangible and intangible assets

–3

–141

Financing result, net

752

–631

4,485

6,818

Changes in inventories–15,049–13,363

Changes in trade and other accounts receivable–1,664–22,107

Changes in trade and other accounts payable

10,50823,687

Income taxes

Changes in provisions, net

552

577

Income taxes paid

–8,542–6,371

Personnel expenses on share-based payments

2,240

1,223

Other non-cash expenses/(income)

–48

–155

Cash flow from operating activities

17,641

14,241

Acquisition of property, plant and equipment–7,915–5,531

Acquisition of intangible assets–1,741–752

Acquisition of financial assets–12

Proceeds from disposal of property, plant and equipment and intangible assets

128

296

Settlement of loans receivable

35Interest received

69

51

Cash flow from investing activities–9,468–5,931

Free cash flow

8,173

8,310

Dividends–13,619–10,231

Acquisition of own shares–3,181

Proceeds from financial liabilities

3,000

Repayment of financial liabilities–55

Interest paid

–12

–19

–13,867–10,341

Cash flow from financing activities
Translation adjustment on cash and cash equivalents
Changes in cash and cash equivalents

–91

–595

–39

–6,289–2,070Cash and cash equivalents at 1 January

38,26431,654

Cash and cash equivalents at 30 June

31,97529,584

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

21

1.5

Consolidated statement of changes in equity

in CHF thousand

Balance at 1 January 2016

SharecapitalSharepremium

Reserve forown shares

Translation
reserve

Retainedearnings

Total
equity854

6,519–1,623–55,227

257,123

207,646

15,765

15,765ResultOther comprehensive
income, net of taxes–1,110Comprehensive income–1,110Share-based payments

370–1,11015,765

14,655–10,231–10,231

854

1,224

Dividends
Balance at 30 June 2016

854

6,889

–769

–56,337

262,657

213,294

Balance at 31 December 2016

854

7,184

–1,914–55,083

282,044

233,085

15,275

15,275ResultOther comprehensive
income, net of taxes–2,605Comprehensive income–2,605

Share-based payments

710

Purchase of own shares incl. tax effects
854

7,894

15,275

12,670

1,530

2,240

–3,181–3,181Dividends
Balance at 30 June 2017

–2,605–3,565–57,688–13,619–13,619

283,700

231,195

NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS

22

2

NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS

2.1

Basis of the consolidated financial statements

Convention of preparation
The condensed, unaudited consolidated interim financial statements at 30 June 2017 have been prepared in accordance with IAS 34(“interim period”) and are based on the uniform financial statements of Interroll Holding LTD. and its subsidiaries (“the Group”). All
statements are prepared based on uniform Group accounting principles. These interim statements reflect an update of previously published information. Therefore, they should always be read in conjunction with the Annual Report 2016. The interim statements were­approved by the Board of Directors on 26 July 2017.
The accounting standards used for these interim financial statements are identical to those published and described in the Annual
Report 2016.
Foreign currency translation
The following key exchange rates were used for the translation of financial statements denominated in foreign currencies:
Income statement (average rates)

Balance sheet (year-end rates)

Jan.–Jun.

Jan.–Jun.

Change

2017

2016

in %

30.06.201731.12.2016

1 EUR

1.078

1.098

–1.8

1.093

1.074

1.8

1 USD

0.986

0.986

0.0

0.958

1.019

–6.0

1 CNY

0.144

0.150

–4.4

0.141

0.147

–4.1

Changein %New or amended IAS / IFRS standards and interpretations
The IASB has published new and revised standards and interpretations. These come into force on or later than 1 January 2018 and are
not early adopted in this financial statement. The impact of the introduction / amendment of IFRS 9 (Financial Instruments) and IFRS
16 (Leasing) cannot yet be assessed with sufficient certainty or the expectations of the impact are in line with the disclosures made in the
Annual Report 2016. Had Interroll introduced IFRS 15 (Revenue from Contracts with Customers) already as per 1 January 2017, only
minor changes would have been made to the current practise, according to recent assessments.
Various amendments will also come into force, which will have no significant impacts on the consolidated financial statements of theInterroll Group: IFRS 2 (Share-based Payment), IFRS 4 (Insurance Contracts), IAS 40 (Investment Property), the Annual improvements
2014-16, IFRIC 22 (Foreign Currency Transactions and Advance Consideration) as well as IFRIC 23 (Uncertainty over Income Tax
Treatments).
Critical accounting estimates and judgements
The preparation of the consolidated interim financial statements requires management to make estimates, assumptions and judgements
for the determination of income, expenses, assets, liabilities and for the disclosure of contingent liabilities. Such estimates, which are
based on management’s best knowledge and belief at the reporting date, may deviate from actual circumstances. In such a case, they will
be modified as appropriate in the period in which the circumstances change.
Segment reporting
The Interroll Group consists of one single business unit. The complete product range is sold in all markets through the respective regionalsales organisation. The customer groups of OEMs, system integrators and end users are provided with tailor-made product offeringsand differentiated consulting levels. The Interroll manufacturing units focus on the production of specific product ranges. Assembly
units receive semi-finished products from the manufacturing units and assemble a wide product range to serve their local markets. The­Interroll Research Center, which is centrally located, develops new application techno­logies and new products for all product groups.
Centers of Excellence, which focus on specific product groups, concentrate on the development of their assigned product portfolio.
Group Management and the whole Interroll management structure are organised by function (Overall Management, Products &­Technology, Global Sales & Services, Marketing and Finance). The Board of Directors bases its financial management of the Group on
both the sales generated in the product groups and geographical markets as well as on the consolidated financial statements. GroupManagement additionally assesses the achievement of financial and qualitative targets of all legal entities.

 NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS

23

Financial instruments
Interroll Group has only financial instruments classified as hierarchy 2 in line with IFRS 13. These financial instruments include only
foreign currency forward contracts and cash flow hedges. The valuation in hierarchy 2 is based on ­factors which cannot be tracked toactively listed prices on public markets. Instead, they can be monitored directly (as a price) or indirectly (as a derivative of the price). The
amount of the financial instruments ­classified as hierarchy 2 is CHF 0.2 million at 30 June 2017 (31 December 2016: CHF 0.1 million).

2.2

Segment information

Net sales by geographical markets
Sales by geographical market is presented as follows:
Jan.–Jun.

Jan.–Jun.

2017

in %

2016

in %

Other Europe, Middle East, Africa

99,20348.8

84,91945.4

Germany

25,612

12.6

26,53414.2

in CHF thousand

Total Europe, Middle East, Africa

124,81561.4

111,453

59.6

USA

42,39520.9

37,975

20.3

Other Americas

14,011

6.9

13,531

7.2

Total Americas

56,40627.8

51,506

27.5

Asia incl. Australia

22,055

10.8

24,164

12.9

Total Asia-Pacific

22,055

10.8

24,164

12.9

Total Group203,276

100.0

187,123

100.0

Material sales with specific customers
Sales are realised with more than 10,000 active customers. No customer accounts for net sales of more than four percent of Group sales.
Sales by product group
Sales realised in the first half-year by product group is presented as follows:

Jan.–Jun.

Jan.–Jun.

2017

in %

2016

in %

Drives71,65835.3

61,662

32.9

Rollers

53,50726.3

48,05425.7

Conveyors & Sorters

51,06925.1

44,53223.8

Pallet & Carton Flow

27,042

13.3

32,87517.6

203,276

100.0

187,123100.0

in CHF thousand

Total GroupNOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS24

2.3	Notes to the consolidated statement of financial position
Consolidated statement of financial position
Total assets increased by CHF 8.1 million compared to year-end 2016. Mainly accounts receivable and work in progress as part ofinventories increased to a record level. This development shows the strong project growth of the Interroll Group in the first half of2017. Current liabilities increased by CHF 10.7 million to CHF 84.4 million. Net working capital increased by CHF 7.5 million to
CHF 82.3 million.
Investments / capital expenditures
A total of CHF 9.7 million in gross capital expenditures were invested in various production facilities. Total non-current assets reached
CHF 137.4 million. Capital expenditure into ­intangible assets are mainly for the further development of the SAP ERP system.
In line with IAS 36, goodwill and other intangible assets are subject to an annual impairment test. These tests are normally performedin the second half of the year. Currently, there is no indication of impairment.
Net financial assets
Net financial assets at the end of the reporting period decreased by CHF 9.2 million compared to year-end 2016 and reachedCHF 28.8 million by 30 June 2017.
Total credit lines available but unused at the end of the reporting period amount to CHF 74.4 million (end of 2016: CHF 78.6 million).
From these credit lines, CHF 40.0 million are committed until first half 2018.
Debt covenants have always been complied with during the reported interim period as well as during the previous-year period.
EquityThe equity position decreased by CHF 1.9 million to CHF 231.2 million compared to the end of 2016, mainly as a result of lower net
profit. The equity ratio at the end of the interim period corresponds to 69.5 % (year-end 2016: 71.8 %). In mid-2017, a dividend of
CHF 16.00 per share was paid as agreed during the annual general meeting (previous year: CHF 12.00 per share).

 NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS

25

2.4

Notes to the consolidated income statement

Net sales
Net sales in the reporting currency have increased by 8.6 % to CHF 203.3 million compared to the same period last year. 8.2% of thisgrowth is of organic nature. In local currencies the increase reached 10.6 %. Above-average growth was seen in the Europe - Middle
East - Africa business in particular.
Earnings before interest and taxes (EBIT)
Higher expenses for research and development are the main cause for the EBITDA decrease by 4.0 % to CHF 29.6 million (previous year:
CHF 30.9 million). Interroll is accelerating development and extension of products and services for the fast growing "Industry 4.0" trend.
The EBITDA margin was 14.6 % (previous year: 16.5 %).
The EBIT decreased by 6.6 % and reached CHF 20.5 million (previous year: CHF 22.0 million). In the reporting period, depreciation
increased and amortisation decreased slightly compared to previous year.
  
Financing result
The net financial loss of CHF 0.8 million includes, apart from immaterial net financial interest income, mainly realised and ­unrealised­foreign exchange losses. Due to its decentralised structure, the Interroll Group is generally not very highly exposed to currency­fluctuations.
Income tax
Income tax expense is recognised based upon the best estimates of the weighted average annual income tax rate for the full financial
year. The tax rate presented in the interim report generally contains tax recoveries / adjustment charges from previous years. It is also
influenced by a differentiated assessment of future r­ ealisable losses carried forward. In the period under review, tax charges resulting
from previous periods amounted to CHF 0.2 million (previous year: CHF 1.1 million).
Result
The net profit presented for the reporting period amounts to CHF 15.3 million (previous year: CHF 15.8 million).

NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS

26

2.5

Notes to the consolidated statement of cash flows

Cash flow from operating activities
Cash flow from operating activities amounts to CHF 17.6 million (previous year: CHF 14.2 million).
Cash flow from investing activities
Total investments of CHF 9.7 million (previous year: CHF 6.3 million) mainly include the amendment of the Global CompetenceCenter for Rollers in Wermelskirchen, Germany and the purchase of land reserves for the Local Competence Center for Belt Curves in
Kronau, Germany. In the previous year investments mainly included machinery and the SAP ERP system.
Cash flow from financing activities
In the first half of 2017, dividends totalling CHF 13.6 million were paid out (previous year: CHF 10.2 million).

2.6

Notes to the consolidated statement of changes in equity

Share capital
The shareholders’ capital of CHF 854,000 is unchanged compared to year-end 2016.
Assignment of shares
Shares assigned to members of the management in the amount of CHF 1.5 million (previous year: CHF 0.9 million) were expensed.

3

FURTHER DISCLOSURES AND INFORMATION

Events after the balance sheet date, seasonality
The Group did not identify any events after the closing date of the interim statements that would have a ­material effect on the presentation of its financial position as at 30 June 2017. There are no other facts which require disclosure according to IAS 34.
The industry in which the Group operates does not have significant seasonal variations. However, changes in the economical environment could have an impact on the short-term profitability.
Contingent liabilities
There were no contingent liabilities in the period under review.

 NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS

27

FINANCIAL CALENDAR
2018
Preliminary Financial Figures 201722 January

Publication Annual Report 2017 and Balance Sheet Press Conference

23 March

Annual General Assembly
Publication Half-Year Report 2018CONTACT AND IMPRINT
If you have any questions regarding Interroll Group or
would like to be included in our distribution list, pleasecontact the Investor Relations Team:
investor.relations@interroll.com

Martin Regnet
Global PR Manager
Tel: +41 91 850 25 21
E-mail: m.regnet@interroll.com
EditorInterroll Holding AG
Via Gorelle 36592 Sant’Antonino, Switzerland
Tel: +41 91 8502525
Fax: +41 91 8502505
www.interroll.com

4 May
3 August

NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS

28

NOTE ON THE HALF-YEAR REPORTThis half-year report is also available in German. If there are differences between the two, the German version
takes priority. The half-year report is available as a PDF document.
NOTE ON ROUNDING
Please note that slight differences may arise as a result of the use of rounded amounts and percentages.
FORWARD-LOOKING STATEMENTS
This half-year report contains certain forward-looking statements. Forward-looking statements include all statements which do not relate to historical facts and events and contain forward-looking expressions such as “believe”,“estimate”, “assume”, “expect”, “forecast”, “intend”, “could” or “should” or expressions of a similar kind. Such­forward-looking statements are subject to risks and uncertainties since they relate to future events and are based on
the company’s current assumptions, which may not take place in the future or be fulfilled as expected. The company points out that such forward-looking statements provide no guarantee for the future and that the actual
events including the financial position and profitability of the Interroll Group and developments in the economic
and regulatory fundamentals may vary substantially (particularly on the down side) from those explicitly or implicitly assumed in these statements. Even if the actual assets for the Interroll Group, including its financial positionand profitability and the economic and regulatory fundamentals, are in accordance with such forward-looking
statements in this half-year report, no guarantee can be given that this will continue to be the case in the future.

Interroll Holding AG
Via Gorelle 3 | 6592 Sant᾽Antonino | Switzerland
www.interroll.com© Interroll Holding AG