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Mid-Year Report 2012Sant’Antonino
10 August 2012

Dear Shareholders
Overview – The Interroll Group
During the first half of 2012, the Interroll Group achieved an encouraging increase in net salesof 7.5 % compared to the same period in 2011, taking the figure from CHF137.2m to CHF147.4m.
In local currency terms, sales revenue rose by as much as 11.0 %, with every product groupcontributing to growth. In the period under review, order intake also increased by a remarkable
8.1 %, from CHF153.9m to CHF166.3m. This corresponds to growth of 11.4 % in local currency
terms. As at 30 June 2012, the book-to-bill ratio (new orders in relation to sales) stood at 1.13
compared to 1.12 as at 30 June 2011.
In brief

Earnings before interest, taxes, depreciation and amortisation (EBITDA) amounted

First semester 2012: Encour-

to CHF19.5m (previous year: CHF20.5m). Earnings before interest and taxes (EBIT)

aging increase of sales turnover,net profit stabletotalled CHF11.5m (previous year: CHF13.2m). Compared with the first half-yearof 2011, EBIT in the period under review included approx. CHF3.0m in amortisationand operating expenses relating to SAP. Net profit totalled CHF9.5m, which was almost as highas the very good level achieved in the same period of the previous year (CHF9.9m).
Along with an emphasis on innovation, Interroll stepped up its marketing and branding activities
in the period under review. Specific campaigns to increase sales were augmented by measures
to enhance the appeal of the Interroll brand. These included an expert forum on the subjectof “Efficiency and Sustainability in Logistics” held during the LogiMAT trade fair in Stuttgart. New
solutions for low-resource logistics of the future were the focus of this event held at the Interroll
stand in front of an international trade audience.

Interroll at LogiMAT 2012, Stuttgart: Expert panelon the future of logistics

2

Pre-installed for rapid installation and immediate commissioning – Interroll Conveyor
Control technology keeps the time and cost of on-site installation to the bare minimumL e t t e r

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S h a r e h o l d e r sPeter Uttrup, Interroll Global Product Manager Food (left), receives the Gold Medal from Prof. Achim Stiebing of theGerman Agricultural Association for Interroll’s ultra-hygienic Synchronous Drum Motor

Financial position
The latest figures confirm the continued financial stability of the Interroll Group. As at 30 June 2012
equity amounted to CHF148.5m (31.12.11: CHF143.3m) and total assets reached CHF240.0m(31.12.11: CHF239.2m). The Group’s equity ratio continued to improve in the period under review,
standing at 61.9 % as at the end of June 2012 (31.12.11: 59.9 %). Net working capital increasedby CHF7.0m in the reporting period, reaching CHF39.7m (31.12.11: CHF32.7m). When comparing
the two half-year periods, net cash flow from operating activities rose significantly from CHF5.8m
to CHF18.2m. As a result, net debt of CHF17.6m (year-end 2011) declined to CHF7.2m. Free
cash flow also improved significantly in the period under review by CHF19.1m from CHF –4.2m
to CHF +14.9m.
“Drives” product group
The Drives product group (motors and drives for conveyor systems) continued its strong performance, generating revenue of CHF51.8m in the first half of 2012 (previous year: CHF50.3m),
while order intake declined slightly from CHF51.8m to CHF50.0m. In March 2012, at the Anuga
FoodTec trade fair in Cologne, Interroll received the Gold Medal from the German Agricultural
Association (DLG) and the European Federation of Food Science and Technology (EFFoST) for its
Synchronous Drum Motor. This hygienic drive solution is particularly suitable for use in foodprocessing plants. At the international trade fair for internal logistics, LogiMAT in Stuttgart, Interroll
launched the latest control units in the ConveyorControl range of energy-saving roller conveyors.
“Rollers” product group
In the period under review, revenue generated by the sale of conveyor rollers (CHF41.6m) was
almost as high as the level achieved in the first half of the previous year (CHF42.1m). However,expressed in local currency, revenue actually rose by 2.2 %. In the period under review, Interroll
forged ahead with new developments in conveyor rollers for the foodstuffs industry. The Interroll
Centre of Excellence for Conveyor Rollers and RollerDrives in Wermelskirchen, near Cologne,
experienced an increased workload in the period under review and almost matched the record
output of 2008. Thanks to many years of experience in this field, high-end production expertiseand its willingness to deliver at short notice, Interroll has established a very strong market positionin the roller segment. This can have a positive effect even in economies facing a significant
downturn, such as parts of Southern Europe that are experiencing a severe slowdown. A casein point: Spain, where roller sales slightly increased.
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S h a r e h o l d e r s“Conveyors & Sorters” product group
The Conveyors & Sorters product group achieved a significant increase in revenue of 17.5 % in
the first half of 2012, up from CHF21.8m in the same period of 2011 to CHF25.6m. Incoming
orders rose by a massive 43.6 % from CHF28.9m to CHF41.5m year on year. Interroll managed
to secure follow-up orders for sorters from Amazon and the Chinese postal service. As well as
testimonials from satisfied customers and the many benefits of the mechanical concept, the sorter
business continues to benefit from the positive effects of the worldwide sorter campaign conducted in 2007/2008. In the first half of 2012, Interroll also received some key orders for conveyor
modules destined for airport security purposes in Europe and the Middle East.
Buoyed by its very positive experience with the new organisational structure, Interroll pressed
ahead with further product harmonisation of conveyor modules. The top priorities here are evenfaster delivery times, simplified design and complete consistency of all modules to facilitate
immediate on-site installation. The aim here is also to keep expanding the group’s day-to-day
business as opposed to its typically more cyclical project business.
“Pallet & Carton Flow” product group
The dynamic storage product group increased its revenue in the period under review by animpressive 23.4 % from CHF23.1m to CHF28.5m. Order intake also improved from CHF31.0m
to CHF33.2m. A major contract for Procter & Gamble in Crailsheim (D) involving around
20,000 pallet spaces was completed to the great satisfaction of the client, and its modernised
distribution centre was officially opened in June. In Asia, Interroll was successful in securing
a further dynamic storage order from Red Bull.
Due to the new sales organisation, Interroll was able to achieve increased market share in the worldwide dynamic storage segment. In the period under review, Interroll – in association with Leibniz
University in Hanover and the Southeast University Nanjing in China – published a white paper on
distribution centres for fast and moderately fast turnaround goods. The next step in this venture
is to develop a simulation tool to calculate the performance of distribution centres. The aim of thiswhite paper and simulation tool project is for Interroll to provide planners and operators of distribution centres worldwide with significant added value and practical assistance with investment
decisions.

Throughput increased, space used more efficiently: Procter & Gamble replaced drive-in racking with Interroll pallet
flow storage at its distribution centre located in Crailsheim (Germany)4

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Sweet treats from Turkey bound for Europe – Eti Gida in Eskisehir leverages the benefits of an energy-saving dynamic
storage system by Interroll to move 300 different chocolate and biscuit specialities

Overview by region
Sales in Europe increased significantly in Group currency terms in the first half of the year, by
16.0 % to CHF105.2m or – expressed in local currency – by as much as 22.3 %. Interroll madesome considerable gains in market share throughout Europe. However, some key accounts inCentral Europe also export their products to overseas markets. All product areas contributed to
growth. In the period under review, Interroll officially opened its new sales base in Turkey during
the WIN industrial trade fair in Istanbul. In this burgeoning market, Interroll already has some interesting dynamic storage products and intelligent roller conveyor systems in place within local
distribution centres.
The difficult economic environment and postponements of some projects led to a decline in revenue in the USA during the period under review, down from CHF33.7m to CHF28.5m. However, the trend in this market is encouraging, and Interroll succeeded in securing two follow-up
contracts from Amazon. In North America, Interroll went ahead with preparations to consolidate
production in Atlanta and concentrate on dynamic storage business at this site. In Brazil, Interroll
moved into larger business premises close to the centre of São Paolo.

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S h a r e h o l d e r s“We teamed up with Interroll to develop a new sorter
system that combines superior energy efficiency withlow-maintenance operation – based on an ingeniously
simple design. With this technology at our fingertips,
the future is very bright indeed.” Commented the
manager at China Post responsible for choosing theInterroll sorter system, Li Xueping, Deputy Director
General of the Science and Technology Committee ofChina Post Group

Sales in Asia increased year on year by around 7 % in the period under review. Interroll Korea,
Thailand, China and Singapore secured some promising new business – such as an additional sorter
project for the China Post Group. In Malaysia, Interroll also won a sorter contract for an online
sales firm, and in Indonesia the company is also working on a significant module order. Interroll willcontinue to invest in the growth markets of Asia to expand its market share in this region.
Innovation: Example of economical, high-performance roller conveyors
Interroll innovations are always designed to simplify everyday logistics tasks. A typical example ofthis would be the Interroll ConveyorControl. This solution is tailor-made for system integrators
and OEMs and always customised to user needs. These new control units, unveiled at the LogiMAT
trade fair in Stuttgart, make roller conveyors more economical in the long term than comparable
solutions. As decentralised, intelligent units, they control individual sections of any conveyor systemthat is divided into zones. Only the sections containing conveyed goods are actually in operation,
while others that have nothing to convey remain idle. This means the system uses less power. The
scalable solution saves at least 30 % of normal energy costs – a huge bonus for any user.

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Even the time and cost involved in installing such roller conveyors on site can be kept to a minimum. As the smart alternative to highly complex PLC programming, Interroll ConveyorControl
enables offline programming prior to on-site installation. The very simple configuration and wiring
system enable rapid installation and immediate commissioning of the conveyor system. Thanks
to the flat-ribbon cable throughout, there is no need to waste time on site cutting wires to fit. The
ConveyorControl units can be quickly connected in the desired location via simple pressure
contacts. System integrators and OEMs thus receive conveyor modules they can put to work
quickly and reliably – with this “plug and play” solution.
The easily installed, low-energy, 24-V product portfolio of ConveyorControl modules can also be
used in conjunction with Interroll Intelliveyor conveyor modules. These include straights, curves,transfers, input and output merges and other modules. With ConveyorControl and RollerDrives fromInterroll existing systems can also be modernised and upgraded by turning them into energy-efficient, zero-pressure lines. This means users can make their existing investments more sustainable
and adapt them to new tasks and conditions.
OutlookGiven the current economic climate, Interroll is keeping a watching brief and a realistic view of thenear future. Continuing currency fluctuations, volatile raw material prices and the prevailing reluctance of key user markets to invest are stifling growth. But Interroll intends to leverage this situation
to stand out even further from the competition and expand its market position. The new corporate
structure introduced at the start of last year is proving very successful in this regard. We will befine-tuning it in all areas in order to increase our market share and make even better use of our opportunities. This includes expanding our global network, particularly in the USA and Asia. We
will continue to invest in product innovation in order to generate above-average added value forour customers and to secure the future of the business. To be sure of achieving our long-term
growth strategy, we will also be staying true to our established core principles: keeping costs undercontrol, increasing productivity in various areas and maintaining a healthy and stable financial base.

Paul Zumbühl

Kurt Rudolf

Chief Executive Officer					 Chairman of the Board of Directors

7

K e yF i g u r e s

All graphics depict January–June in million CHF
Consolidated net sales, Group
0

50

100

150

200

2009

116.5

2010

136.8

2011

137.2

2012

147.4

Consolidated earnings before interest, taxes, depreciation and amortisation (EBITDA)
0

10

20

30

40

2009

8.5

2010

15.2

2011

20.5

2012

19.5

Consolidated earnings before interest and taxes (EBIT)
0

10

20

30

40

2009

0.8

2010

7.5

2011

13.2

2012

11.5

Consolidated net profit
0

8

5

10

15

20

2009

0.1

2010

5.3

2011

9.9

2012

9.5

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f i n a n c i a l
p o s i t i o n
I n t e r r o l l
G r o u p

F I N A N C I A L I N T E R I M S TAT E M E N T S O F I N T E R R O L L G R O U P

1.1

Consolidated statement of financial positionin thousands CHF

30.06.2012

in %31.12.2011

in %ASSETS
Property, plant and equipment

79 71682 107

Intangible assets

40 06640 687

Financial assets

934

932

Deferred tax assets
Total non-current assets
Non-current assets held for sale

1 057
121 773715
50.7

124 441

52.0

–

950

47 07345 100801

528

Trade and other accounts receivable

58 53257 654

Cash and cash equivalents

11 822

Total current assets

118 22849.3

114 75448.0

Total assets

240 001

100.0

239 195

100.0

Inventories
Current tax assets

10 522EQUITY AND LIABILITIESShare capital

8 540

8 540

Reserves

184 192

178 601

Translation reserve–44 202

Total equity

148 530–43 85661.9

143 285

Financial liabilities

5 043

5 271

Deferred tax liabilities

1 611

2 441

59.9

Provisions

6 324

Total non-current liabilities

12 978

6 211

Financial liabilities

14 018Current tax liabilities

8 734

9 264

Trade and other accounts payable

55 74149 873

Total current liabilities

78 49332.7

81 987

34.3

Total liabilities

91 471

38.1

95 91040.1

Total liability and shareholder’s equity

240 001

100.0

239 195

100.0

5.4

13 923

5.8

22 8509

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1.2

2 0 1 2 :I n c o m e / c o m p r e h e n s i v e

i n c o m e

s t a t e m e n t

Consolidated income statement
Jan. – Jun.
2012

in %

Jan. – Jun.
2011

in %

absolute

Variancein %Net Sales

147 442100.0

137 208

100.0

10 234

7.5

Material expenses–63 726–43.2–58 681–42.8

Personnel expenses–45 002–30.5–41 476

–30.2

1 706

1.2

2 772

2.0

Other operating expenses–25 476–17.3–23 742–17.3

Other operating income

4 562

3.1

4 429

3.2

Operating result before depreciation andamortisation (EBITDA)

19 506

13.2

20 51014.9–1 004–4.9

Depreciation–5 242–3.6–5 207–3.8

Operating result before amortisation (EBITA)

14 2649.7

15 303

11.2–1 039–6.8

Amortisation–2 716–1.8–2 121–1.5

Operating result (EBIT)

11 5487.8

13 182

9.6–1 634–12.4

Finance expenses

–161

–0.1

–953

–0.7

Finance income

158

0.1

474

0.3

Finance result

–3

–0.0

–479

–0.3

476

–99.4

Result before income taxes

11 545

7.8

12 703

9.3–1 158–9.1

Income tax expense–2 088–1.4–2 812–2.0

Result

9 457

6.4

9 891

7.2

–434

–4.4

in thousands CHF

Increase/(Decrease) in work in progress,
finished products and own goods capitalised

Earnings per share (in CHF)
Non-diluted earnings per share

11.85

12.50

–0.65

–5.2

Diluted earnings per share

11.71

12.34

–0.63

–5.1

1.3

Consolidated statement of comprehensive incomein thousands CHF

10

Jan. – Jun.
2012

Jan. – Jun.
2011

Result

9 457

9 891

Currency translation differences–346–7 626

Other Comprehensive income, net of taxes–346–7 626

Total comprehensive income for the period

9 111

2 265

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S t a t e m e n t
I n t e r r o l l
G r o u p

Consolidated statement of cash flows
Jan. – Jun.
2012

Jan. – Jun.
2011

Result

9 457

9 891

Depreciation, amortisation and impairment

in thousands CHF

7 958

7 328

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

–15

–6

Loss/(gain) on disposal of non-current assets held for sale

–1 233–3

479

Financial result
Income taxes

2 088

2 812

Changes in working capital

3 036–9 059Changes in provisions
Income taxes paid

122

–696

–3 987–5 376

Personnel expenses on share based payments

838

724

Other non-cash (income)/expenses

–60

–331

Cash flow from operating activites

18 207

5 766

Acquisition of property, plant and equipment–3 515–5 058Acquisition of intangible assets–2 212–4 240Acquisition of financial assets

–29

–

2 379

224

42

36

Acquisition of business activities, net of cash acquired

–

–931

Interests received

48

48

Cash flow from investing activities–3 287–9 921

Free cash flow

14 920–4 155Distribution from reserves from capital contributions

Proceeds from disposal of property, plant and equipment
Settlement of loans receivable–5 594–3 966

Acquisition of own shares––1 060

Disposal of own shares

866

5 478

Proceeds from financial liabilities

234

7 098

Repayment of financial liabilities–9 005

–608

–171

–296

–13 6706 646Interests paid
Cash flow from financing activities
Translation adjustment on cash and cash equivalents

50

–885

Change in cash and cash equivalent

1 300

1 606

Cash and cash equivalent at January 1

10 52210 110Cash and cash equivalent at June 30

11 82211 71611

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2 0 1 2 :C h a n g e si n

E q u i t y

Consolidated statement of changes in equity

in thousands CHF
Balance at January 1, 2011

SharecapitalShare
Premium

Reserve forown shares

Translation
reserve

Retainedearnings

Total Equity

8 540

27 577–27 959–40 001

159 300

127 457

9 891

9 891

ResultTranslation adjustments–7 626––––7 626––7 626Comprehensive income

–

–

–

–7 626

9 891

2 265

Distribution from reserves from
capital contributions–3 966

Reclassification

4 504

Share based payment transaction

–254

978

724

–1 053

5 561

4 508

Changes in own shares,incl. tax effects–3 966–4 504

Balance at June 30, 2011

8 540

26 808–21 420–47 627

164 687

130 988

Balance at December 31, 2011

8 540

26 630–21 018–43 856

172 989

143 285

9 457

9 457

ResultTranslation adjustments

–346

–346

Other comprehensive
income, net of taxes

–

–

–

–346

–

–346

Comprehensive income

–

–

–

–346

9 457

9 111

Distribution from reserves from
capital contributions–5 594–5 594

Share based payment transaction

–286

1 124

838

Changes in own shares,incl. tax effects

–289

1 179

890

20 461–18 715

Balance at June 30, 201212

–7 626

Other comprehensive
income, net of taxes

8 540–44 202

182 446

148 530

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N o t e s
G r o u p otes to t h e consolidated financial
N
interim statements

2.1

Basis of the consolidated financial statements

Convention of preparation
The condensed, unaudited consolidated interim financial statements as per June 30, 2012 havebeen 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 areprepared based on uniform Group accounting principles. This interim statement reflects an updateof previously published information. Therefore, it should always be read in conjunction with theannual report 2011. The interim statements were approved by the Board of Director on July 25, 2012.
The Interroll Group has adopted the amendments of the IASB in the standards and interpretations(IAS 12, IFRS 7) that came into effect as per 1st of January 2012. There was no significant impact in the disclosure and reporting of this interim statement from the adoption of the new andamended standards and interpretations.
Foreign currency translation
The following most important exchange rates were used for the translation of financial statements
denominated in foreign currencies:
Income Statement(average rates)

Jan. – Jun.
2012

Jan. – Jun.
2011

Changein %Balance sheet(Year end rates)

30.06.2012

31.12.2011

Change
in %
–1.0

1 EUR

1.203

1.268

–5.1

1.203

1.216

1 USD

0.924

0.891

3.7

0.956

0.940

1.7

1 CAD

0.922

0.916

0.6

0.935

0.920

1.6

1 GBP

1.464

1.451

0.9

1.491

1.455

2.5

1 SGD

0.735

0.713

3.1

0.753

0.723

4.2

1 CNY

0.146

0.137

7.2

0.150

0.149

0.9

1 PLZ

0.285

0.320

–10.8

0.283

0.273

3.8

1 THB

0.030

0.029

1.7

0.030

0.030

1.7

1 ZAR

0.117

0.130

–9.7

0.116

0.116

0.0

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2 0 1 2 :N o t e s

New or amended IAS/IFRS standards and interpretations
The IASB has published new and revised standards and interpretations. These come into force
later than 2013 and are not early adopted in this financial statement. The impact of the introduction/
amendment of IFRS 9, IFRS 10, IFRS 11, IFRS 12, IFRS 13, IAS 1, IAS 19, IAS 27 as well as IAS 28
cannot yet be assessed with sufficient certainty or the expectation of the impact is in line with thedisclosures made in the annual report 2011. Based on a first assessment, the Group Management does not expect significant impacts on the consolidated financial statements from these standards and interpretations.
Critical accounting estimates and judgments
The preparation of the consolidated interim financial statements requires management to makeestimates, assumptions and judgments for the determination of income, expenses, assets,
liabilities and for the disclosure of contingent liabilities. Such estimates, which are based on the
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 thecircumstances change.

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N o t e s
G r o u p

Segment reporting
The Interroll Group consists of one single business unit. The complete product range is sold in all
markets through the respective regional sales organisation. The customer groups being OEMs,
system integrators and endusers are taken care by tailor-made product offerings and differentiatedconsulting levels. The Interroll manufacturing units focus on the production of specific productranges. Local assembly units receive semi-finished products from the manufacturing units and assemble a wide product range to serve their local markets. The Interroll Research Center, which iscentrally 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 and existing product portfolio.
The Group Management and the Interroll management structure are organized by functions(overall management, Products & Technology, Global Sales & Services, marketing, finance and IT).
The financial management of the Group by the Board of Directors is effected on one hand by
turnover of the product groups and geographical markets and on the other hand by the reportingof the consolidated financial statements. The Group Management additionally assesses theachievement of financial and qualitative targets of all legal entities.

2.2

Accounting policies and standards

Acquisitions of consolidated subsidiaries resp. business activities
In the period under review, there was no acquisition of subsidiaries or business activities
respectively. There were also no payments due from previous acquisitions.
In the previous year interim period as per 1 January 2011 the business activities of the former licensing partner in Australia (CSA Conveyors) were acquired by the existing Interroll entity in Australia.
Intangible and tangible assets at fair value amounted to CHF1.1m, whereof half was paid in
November 2010 and the other half in January 2011. Furthermore the last installment of CHF0.4m
related to the acquisition of BDL France has been paid.

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Fair value of net assets acquired
Jan. – Jun. 2012
Fair value

Jan. – Jun. 2011
Fair value

Property, plant and equipment–

170

Intangible assets–

875

Total non-current assets

–

1 045

Inventory–

331

Total current assets–

331

Total assets

–

1 376

Deferred tax liabilities–

262

Total liabilities–

262

Total net assets acquired

–

1 114

Goodwill acquired––

Total acquisition costs

–

1 114

Jan. – Jun. 2012

Jan. – Jun. 2011

in thousands CHF

Settlement of acquisition costsin thousands CHF
Settled by cash and cash equivalents––1 114

Total acquisition costs––1 114Jan. – Jun. 2012

Jan. – Jun. 2011

Settled by cash and cash equivalents––1 114

Paid in previous periods as advanced payments–

570

Settlement of last installment for BDL France

–

–387

Cash flow from acquisitions of business activities

–

–931

Cash flow from acquisitions of business activities
in thousands CHF

Other changes in the consolidation range
In the period under review as well as in the previous period, no other changes in the consolidation
range have taken place.

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N o t e s
G r o u p

Segment information

Net sales by geographical markets
Turnover by product groups according to geographical markets is presented as follow:
Jan. – Jun.
2012

in %

Jan. – Jun.
2011

in %

Other Europe, Middle East, Africa

66 89945.4

61 50044.8

Germany

35 27823.9

26 745

19.5

Switzerland

2 992

2.0

2 361

1.7

Total Europe, Middle East, Africa

105 169

71.3

90 60666.0

USA

20 822

14.1

23 440

17.2

Other Americas

7 634

5.2

10 221

7.4

Total Americas

28 456

19.3

33 661

24.6

Asia incl. Australia

13 817

9.4

12 941

9.4

in thousands CHF

Total Asia and Pacific

13 817

9.4

12 941

9.4

Total Group147 442100.0

137 208

100.0

Material turnover with specific customers
Turnover is realized with more than 10 000 customers. There is no customer achieving a turnover ofmore than five per cent of Group sales.
Turnover by product group
Turnover realised in the first half year by product group is presented as follow:

in thousands CHF

2012

in %

2011

in %

2010

in %

Drives51 76435.2

50 30236.6

46 25733.8

Rollers

41 62428.2

42 06230.7

40 86429.9

Conveyors & Sorters

25 57017.3

21 77015.9

23 79417.4

Pallet- & Carton Flow

28 48419.3

23 07416.8

25 884

18.9

Total Group147 442100.0

137 208

100.0

136 799100.0

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I n t e r r o l l
G r o u p

2.4

2 0 1 2 :N o t e s otes to the consolidated statement of financial
N
position

Consolidated statement of financial position
Total assets was increased compared to the year end 2011 by CHF0.8m. Merely due to thehigh reduction of current bank loans, the net working capital was increased by CHF7.0m
to CHF39.7m. Higher depreciations and amortisations alongside with less capital expenditures
on non-current assets lead to lower tangible and intangible assets.
Investments/capital expanditures
Major investments undertaken into the extension of the center of competences are merely completed and therefore there are less investments into tangible assets than in the previous period
under review. The investments done in the period under review are mainly for machines and are to
optimise the manufacturing processes. Investments into intangible assets are in relation to thefurther developement of SAP.
In line with IAS 36, goodwill and other intangible assets are subject to an annual impairment test.
These tests are normally performed in the second half of the year. Currently, no evidence exists for
impairment.
Net financial liabilities (net debt)
Net debts as per end of the reporting period was decreased by CHF10.4m to CHF7.2m comparedto year end 2011. Net debt in per cent of the equity was reduced compared to year end 2011
from 12.3 % to 4.9 %. The reduction of nebt debt is merely due to the reduced short term bankloans and is a result of strengthened management of net working capital and less means
expensed for investments.
The total credit lines available as per end of the reporting period amount to CHF82.2m, of which
CHF63.1m remain unused. From these credit lines CHF40.0m are committed until the first half of2015 under condition that debt covenants are complied with.
The debt covenants that have not been changed since year end 2011 have always been compliedwith during the interim period as well as during the previous year period.
EquityEquity increased by CHF5.2m to CHF148.5m compared to the previous year end. The distributionof reserves from capital contributions of net CHF5.6m took place on 21st of May 2012 andhas been debited accordingly to the equity. The equity ratio as per end of the interim period
corresponds to 61.9 % (year end 2011: 59.9 %).

18

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2.5

R e p o r t
2 0 1 2 :I n t e r r o l l

N o t e s
G r o u p

Notes to the consolidated income statement

Net sales
Net sales in reporting currency have increased by 7.5 % to CHF147.4m compared to the previous
year’s period. Excluding negative foreign currency effects the increase represents a growth of
11.0 %. The negative translation effects result from Euro and other European currencies.
Earnings before interest and taxes (EBIT)
The operating profit (EBIT) decreased from CHF13.2m in the previous year period to CHF11.5m
in the current interim period which results in a margin of 7.8 % (previous year period: 9.6 %).
Additional personnel costs were expensed for the strategic developement of the global distribution
network. For the first time, costs incurred for the maintenance and enhancement of SAP.
One time expenses of CHF1.0m have incurred for the introduction of a new platform of modules aswell as for the optimization of the group wide strategic purchasing. Both buildings that were held
for sale (Spain, Wassenberg) were sold to a total price of CHF2.2m which is shown as "proceedsfrom disposal of property, plant and equipment" in the consolidated cash flow statement. The
profit on these sales in the amount of CHF1.2m is included in the other operating income of theconsolidated income statement.
Finance result
Net interest expenses of CHF0.1m are compensated by net currency gains of almost the sameamount. The Interroll Group is due its broad geographic orientation generally not much exposed
to currency fluctuations.
Income tax expense
Income tax expense is recognized 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 distinguishedassessment of future realizable losses carried forward. In the period under review no material tax
income/charges resulting from previous years were incurred. A deferred tax asset of CHF0.5m
was capitalised through deferred tax income due to the encouraging developement of the North
American production company of the product groups Rollers and Drives.
Result
The profit presented for the reporting period amounts to CHF9.5m (previous year: CHF9.9m).
The result from acquisition is immaterial in both periods under review.

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G r o u p

2.6

2 0 1 2 :N o t e s otes to the consolidated statement of cash
Nflows

Cash flow from operating activities
The cash flow from operating activities amounts to CHF18.2m (previous year: CHF5.8m). Cash could
be freed by sticking to a tight debtor management.
Cash flow from investing activities
For investments into buildings, machinery, acquisitions and the new ERP system CHF5.7m (previous
year: CHF10.2m) were spent (see “notes to the consolidated statement of financial position”).
Cash flow from financing activities
The payment from reserves from capital contribution for the net amount of CHF5.6m wasprocessed on 21st of May 2012 and is therefore included in the cash flow statement. The higher
free cash flow was mainly used to repay short term financial debts.

2.7

 otes to the consolidated statement of changes
Nin equity

Capital contributions
The decision of the ordinary general shareholder meeting from May 11th, 2012 to distribute CHF 7
per share from reserves from capital contributions was executed on May 21th, 2011.
Option plan
No options from the option plan were exercised in the period under review. In the previous year
period 2 464 were exercised. No additional options were attributed.
Assignment of shares
Shares assigned to members of the management in the amount of CHF0.8m (previous year:
CHF0.7m) was expensed.

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3

R e p o r t
2 0 1 2 :I n t e r r o l ln o t e s
G r o u p

F urt h er disclosures and information

Events after the balance sheet date, seasonality
The Group did not identify any events after the closing date of the interim statement that would
have a material effect on the presentation of its financial position as at June 30, 2012.There are noother facts which require disclosure according to IAS 34.
The industry in which the Group operates does not have significant seasonal variations which
would result in a materially different result in the second half year compared to the reporting
period. However, current difficult economical environment can have an impact on the short term
profitability.
Contingent liabilities
There were no contingent liabilities in the period under review.
Financial Calendar
January 25, 2013

Sales and order income results for the annual year 2012

March 22, 2013

Press conference for the business year 2012

May 10, 2013

General assembly for the business year 201221

Interroll Holding LTD.
Via Gorelle 36592 Sant’Antonino, Schweiz
Phone+41 91 850 25 25

Fax		

+41 91 850 25 05

www.interroll.com
www.interroll.com/ir (Investor Relations)Contact
Paul Zumbühl
CEO
Phone

+41 91 850 25 25

investor.relations@interroll.com

Impressum
Concept and coordination:
Interroll Holding LTD., Investor Relations
Layout/DTP:
Victor Hotz, Lasting Impressions In Print, S­ teinhausenThis interim report is also available in German.
The German version is binding.