HALF-YEAR REPORT 2016

INSPIRED
BY EFFICIENCYKEY
FIGURES01.01.–

01.01.–

30.06.2016

30.06.2015

Changes in %Total incoming orders

216.3

206.3

4.8

Rollers

48.1

48.3

–0.4

Drives

61.7

53.2

16.0

Conveyors & Sorters

44.5

43.6

2.1

in CHF million, if not stated differently

Incoming orders / net sales

Pallet & Carton Flow

32.8

26.2

25.2

Total net sales

187.1

171.3

9.2

EBITDA

30.9

26.5

16.4

in % of net sales

16.5

15.5

EBITA

25.4

21.4

in % of net sales

13.6

12.5

EBIT

22.0

17.5

in % of net sales

11.7

10.2

Net profit

15.8

12.8

in % of net sales

8.4

7.5

Operating cash flow

14.2

11.6

in % of net sales

7.6

6.7

Free cash flow

8.3

–0.6

in % of net sales

4.4

–0.4

Total investments / capital expenditure

6.3

12.3

Profitability

18.8
25.1
23.4

Cash flow

Balance sheet

23.3
100.0
–43.8

30.06.2016

31.12.2015

Total assets

322.7

293.0

10.1

Goodwill

16.5

16.7

–1.2

Net financial assets

29.4

31.3

–6.1

Equity

213.3

207.6

2.7

Equity ratio (equity in % of assets)

66.1

70.9

Return on equity (in %)

15.0

14.4

4.2

Other key figures
RONA (Return on Net Assets, in %)

15.1

15.3

–1.3

Average number of employees

1856

1820

2.0

Net sales per employee (in thousands CHF)

202

198

2.0

Productivity (added value / total personnel expenses)

2.07

2.04

–1.5

ABOUT INTERROLL

4

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

6OVERVIEW OF FINANCIAL POSITION, EARNINGS AND CASH FLOWS

8

OVERVIEW BY PRODUCT GROUPS10OVERVIEW BY REGION

14

FINANCIAL INTERIM 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 FINANCIAL INTERIM 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 2017

27

CONTACT AND IMPRINT

27

ABOUT INTERROLL

4ABOUT INTERROLLInterroll Group is a leading global provider of high-quality key products and services for internal
logistics. The company offers a broad product range in the four product groups “Rollers”, “Drives”,“Conveyors & Sorters” and “Pallet & Carton Flow” to about 23,000 customers (system integrators andOEMs) around the world. Our core industries include courier, parcel, express and postal services,
airports, food processing as well as distribution centres.
Interroll products are in use at well-known global brands such as Amazon, Bosch, Coca-Cola, Coop,
DHL, FedEx, Peugeot, PepsiCo, Procter & Gamble, Siemens, Walmart and Yamaha, amongst others.
Interroll is engaged in global research projects on logistics efficiency and actively supports industry
associations in developing standards. Headquartered in Sant’Antonino, Switzerland, Interroll operates a worldwide network of 30 companies with around 1,900 employees. The company was founded
in 1959. Since 1997, Interroll Group has been listed on the SIX Swiss Exchange and included in the
SPI index.
www.interroll.com

23,000CUSTOMERSAROUND
THE WORLD

30
COMPANIESAROUND
THE WORLD

1,900
EMPLOYEESAROUND
THE WORLDCONVEYORS & SORTERS

PALLET & CARTON FLOWINTERROLL PRODUCT GROUPSROLLERSDRIVESINTERROLL ON THE CAPITAL MARKET

5

INTERROLL ON THE CAPITAL MARKET

Share price performance Interroll relative to
Swiss Performance Index SPI / SXGE
20%
15%
10%
5%

913.00CHF

0%–5% 856.50
CHFInterroll share
Share price as at 31 Dec. 2015: CHF 856.50
Share price as at 30 June 2016: CHF 913.00
SPI / SXGE

–10%
–15%
–20%
January

February

March

April

Mai

June

INTERNATIONAL STOCK MARKETS­CHARACTERISED BY HIGH VOLATILITY
International stock markets experienced high volatility in the first half of 2016. After a significant drop in
share prices in the first quarter, the Swiss Stock Index
staged a recovery. Discussions about Great Britain
remaining in the European Union ushered in anotherround of high volatility on the international exchanges
toward the end of the second quarter of 2016.
INTERROLL SHARES CONTINUEPOSITIVE TRENDInterroll shares once again continued their strong
year-on-year performance in the first half of 2016.
With a closing price of CHF 913.00 on 30 June 2016,
Interroll shares were 6.6 % higher than the closing
price for 2015 (CHF 856.50).

As such, Interroll shares recovered more strongly thanthe Swiss Index as a whole. The SPI Index stood at
8,660 points at 30 June 2016 or –2.9 % below the closing price for 2015 (8,918 points). The SMI Index closed
for the first half of the year at 8,020 points, –8.7 %below the closing price for 2015 (8,780 points).
SHAREHOLDER BASIS INCREASINGLYINTERNATIONAL
In the first half of 2016, an increasing percentage ofshareholders based outside Switzerland purchased
shares of Interroll. On 30 June 2016, 49 % of shareholders were based abroad, compared with 41 % on
31 December 2015.

REPORT BY THE BOARD OF DIRECTORS AND GROUP MANAGEMENT

6

Growth strategy
successfully continued
Paul Zumbühl, Chief Executive Officer

Dear shareholders,customers, employees and business partners,

cash flow jumped by CHF 8.9 million from CHF –0.6
million a year ago to CHF 8.3 million as at 30 June 2016.

The Interroll Group managed to build on its strong
2015 fiscal year and continued its course of growththrough the first half of 2016. All product groups andregions developed well. Business outside Europe performed especially strongly.

Interroll’s strong results in the first half of 2016reflected a continuation of the positive trends fromrecent years.

Order intake rose in the first six months by 4.8 %, from
CHF 206.3 million a year ago to a new record of CHF
216.3 million. Net sales grew by 9.2 %, finishing at aconsolidated value of CHF 187.1 million (previous
year: CHF 171.3 million).
EBITDA climbed in the first half of the year by
16.4 %, from CHF 26.5 million to CHF 30.9 million.
The EBITDA margin stood at 16.5 % (previous year:
15.5 %). EBIT of CHF 22.0 million for the first halfof 2016 represented a 25.1 % jump on a year-on-yearbasis, from CHF 17.5 million. EBIT margin totalled
11.7 % (previous year: 10.2 %).
Operating cash flow improved by CHF 2.7 million to
CHF 14.2 million (previous year: CHF 11.6 million),
thanks primarily to higher net profits of CHF 15.8 million (previous year: CHF 12.8 million). Impacted byinvestment levels below those of the previous year, free

In May, Kurt Rudolf stepped down from his role as
Chairman of the Board of Directors. We owe him our
express thanks for his dedication and service to thecompany. New Chairman of the Board of Directors
Urs Tanner has expressed his stated intent to pursue
the same constructive, goal-oriented collaboration
with the group management.
TECHNOLOGICAL AND INNOVATIVE­EXPERTISE ONCE AGAIN PUT TO THE TESTInterroll found a good opportunity to demonstrate
its strong technical expertise early this year. We presented our new MSC 50 magnetic speed controller tothe public for the first time at the LOGIMAT trade
show in Stuttgart, Germany. Interroll also launched
new technologies on the market outside Europe as
well. Our modular conveyor platform (MCP) has beena successful seller on the European and Asian markets for the past two years, and went on sale in Aprilin the Americas as well. This represents a consistentcontinuation of Interroll’s strategy of providing its cus-

REPORT BY THE BOARD OF DIRECTORS AND GROUP MANAGEMENT

7“Our growth policies are based ontrusted, well-established partnerships
with our customers, innovativetechnology and processes and healthyfinances. With these strengths in mind,
we plan on continuing our work in the
future as well.”Urs Tanner, Chairman of the Board of Directors

tomers with innovative, high-quality technology at its
many locations around the world.
More than 150 customers and partners had a chanceon April 2016 to experience this first-hand at theInnovation Summit in Baal, Germany. Our innovation centre there, including the headquarters for theInterroll Research Centre and our Academy, opened
their doors to present their broad range of expertisein internal logistics. Another programme started ayear ago, “Rolling on Interroll”, reflects the strong trust
placed in Interroll by our partners. More than 40 partners are now engaged in the programme worldwide,
forging closer business ties as well as a uniform concept of quality and service. We are thus very happy thatthe biggest platform for investment goods marketingin the German-speaking world, “Rolling on Interroll”,
was awarded a BoB bronze medal in May.
EXPERIENCING THE CULTURE OF
GROWTH TOGETHER
Success always reflects collaboration between people,
externally and internally. Our “Culture for Growth”
programme represents another pillar of our growthstrategy. It was intended to provide all employees at
Interroll with a shared understanding of leadership,values and cooperation, and nurture that understanding in daily working life. Culture for Growth isn’t a

project in the traditional sense, but rather an attitude
towards how we can continue to provide our customers and shareholders with our most valuable resource– our Interroll employees – for the long term. It represents a daily cornerstone obligation for our executives,and forms the sustainable foundation for continued
improvement and solid growth at Interroll.
Sant’Antonino, 5 August 2016

Urs Tanner
Chairman of theBoard of Directors

Paul Zumbühl
Chief Executive Officer

OVERVIEW OF FINANCIAL POSITION, EARNINGS AND CASH FLOWS8OVERVIEW OF FINANCIAL
POSITION, EARNINGS AND
CASH FLOWSEBITDA AND
EBITDA MARGIN

NET SALES

147.4

149.1

157.1

2012

2013

2014

171.3

2015

2016

EBIT AND EBIT MARGIN
17.5
10.2 %
11.6
7.9 %

2012

13.1
8.8 %

2013

2015

147.7
61.5 %

170.9
68.7 %

21.4
14.4 %

2012

2013

2016

30.9
16.5 %

18.2
11.6 %

2014

2015

2016

NET PROFIT AND
NET PROFIT MARGIN

9.5
6.4 %

EQUITY AND
EQUITY RATIO
186.1
70.1 %

19.6
13.3 %

22.0
11.7 %

8.8
5.6 %

2014

26.5
15.5 %

187.1

2012

12.8
7.5 %

10.5
7.1 %

15.8
8.4 %

7.1
4.5 %

2013

2014

2015

2016

OPERATING
CASH FLOW
192.3
68.1 %

213.3
66.1 %

18.2

17.6

14.2
11.6
5.0

2012

2013

2014

2015

2016

2012

2013

2014

2015

2016

OVERVIEW OF FINANCIAL POSITION, EARNINGS AND CASH FLOWS

9ORDER INTAKE AND SALES CONTINUE­POSITIVE DEVELOPMENT­The Interroll Group saw record order intake in thefirst half of 2016 of CHF 216.3 million (previous year:
CHF 206.3 million). Organic growth rose to 4.8 %,underpinned by ongoing product business and projects in the areas of eCommerce and airports, especially in Asia.
Consolidated sales reached CHF 187.1 million (previous year: CHF 171.3 million), thus growing in thereporting currency by 9.2 %. The growth, in which
all regions played a role, is strictly organic in nature.
Positive currency effects contributed 3.1 % to thesales growth.
RESULTS EXCEEDED PREVIOUS
YEAR’S FIGURES
Bolstered by the higher sales and the resulting economies of scale, EBITDA grew by 16.4 % in the first halfof 2016 to CHF 30.9 million (previous year: CHF
26.5 million). The EBITDA margin was 16.5 % (previous year: 15.5 %).
EBIT also grew year-on-year. After CHF 17.5 million
in the previous year, this figure was CHF 22.0 million
in the first half of 2016. The EBIT margin hit 11.7 %(previous year: 10.2 %).
Year-on-year net profit rose by a notable 23.4 %, from
CHF 12.8 million to CHF 15.8 million. The net profit
margin stood at 8.4 % (previous year: 7.5 %).
CONTINUED SOLID BALANCE SHEETDEVELOPMENT
The balance sheet increased as of 30 June 2016 to
CHF 322.7 million and was thus 10.1 % above the levelat the end of 2015 (CHF 293.0 million). In particular, accounts receivable and the portfolio of projects
started in the first half of the year grew strongly. This
trend reflects the intensive project orientation at theInterroll Group during the reporting period.
Higher net profits also impacted equity, which rose
to CHF 213.3 million as at 30 June 2016. This is 2.7 %above the closing value of CHF 207.6 million from31 December 2015. The equity ratio was thus 66.1 %compared to 70.9 % on 31 December 2015.
Due to the dividend payment net financial assets
decreased to CHF 29.4 million as at 30 June 2016.

IMPROVED CASH FLOW UNDERSCORESSTRONG PROFITABILITY
Operative cash flow once again rose year-on-year,
attributable in particular to the higher net profit, to
CHF 14.2 million (previous year: CHF 11.6 million).
Investments totalling CHF 6.3 million gross were significantly below the levels seen in the previous year
(CHF 12.3 million). This can be attributed in part tothe fact that the Interroll Academy investment projectin Baal, Germany, is no longer on the books.
Given the higher cash flow and lower investments,
free cash flow reached CHF 8.3 million, a significant
CHF 8.9 million improvement in a year-on-year comparison (2015: CHF –0.6 million).

OVERVIEW BY PRODUCT GROUPS

10

STEADY PRODUCT BUSINESS AND
EXPANDING PROJECT BUSINESSInterroll breaks down its portfolio of services into four product groups: “Rollers”,“Drives”, “Conveyors & Sorters” and “Pallet & Carton Flow”. Each of these product groups saw growth in the first half of 2016.

PRODUCT GROUPROLLERSThe “Rollers” product group forms the foundation of
the Interroll portfolio. Since 1959, Interroll has been
producing rollers at its location in Wermelskirchen,
Germany, the global centre of excellence for Rollers
and Driven Rollers. Since its founding, Interroll has
produced more than 500 million rollers, making it theworld’s leading company in this field. Rollers are usedin numerous applications for internal logistics, suchas conveying and sorting. Very short delivery times,
high-efficiency production processes and the tremendous quality of Interroll’s products all played a significant role in its continued growth in the first six monthsof the year.
Interroll booked more business with rollers in the firsthalf of 2016 in all regions. The strong demand has also
been reflected in the production figures. June 2016
saw Interroll produce more rollers than any othermonth in its history. Another reason for the increasing demand is a customer base that has been further
expanded through Interroll’s intensive sales efforts.
As with drives, the growing use of rollers in the new
MCP conveyor platform has led to increased synergies
between Interroll’s individual product groups.
The positive development of the product group isreflected in the sales and order intake from the firsthalf of 2016. Although consolidated sales stood at CHF
48.1 million, or 0.4 % below the figure (CHF 48.3 million) from the same time a year ago, consolidated
order intake was recorded at CHF 48.5 million (previous year: CHF 48.1 million). The EMEA region wasa particular highlight in terms of order intake, with
Interroll enjoying roughly 7 % year-on-year growth.
The MSC 50 magnetic speed controller was launched
onto the market in spring, giving Interroll anothershowcase innovation for regulating the speed of roller
ramps intelligently and preventing damage to transported material. The new product has already beenvery positively received by the market in the shortperiod since its release.
The Interroll Production System (IPS) forms the foundation for efficient workflows and top quality for all
Interroll processes. It allows Interroll to offer customers a broad choice of almost 60,000 conveyor variants
at minimal production volumes – more than half thecatalogue items can be produced in batch sizes of lessthan 10 units.

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

OVERVIEW BY PRODUCT GROUPS

11

PRODUCT GROUP
DRIVES
The portfolio for the “Drives” product group includes
driven conveyor rollers (24-volt RollerDrive), control
systems and drum motors. Through its RollerDrive
products, Interroll serves as the leading provider ofenergy-efficient 24-volt technology. Drum motors
from Interroll fulfil the highest hygiene standards
for the food production industry and are European
Hygenic Engeneering & Design Group (EHEDG)
certified. From a global standpoint, drum motors areproduced within the Interroll Group at the global centre of excellence in Baal, Germany, and in Hvidovre,
Denmark.
Sales amounted to CHF 61.7 million, a 16.0 % yearon-year rise (CHF 53.2 million). Consolidated orderintake increased to CHF 62.1 million, compared with
CHF 57.2 million a year earlier. The EMEA region

Interroll drum motors comply with the strictest
hygiene specifications.

grew particularly strongly, with a 26 % rise for RollerDrive; Asia-Pacific was also a point of strength. Overall, EMEA produced 14 % higher order intake for drum
motors compared to the first half of 2015. The positive
trend is based primarily on the strong performance inthe key food markets of France and Great Britain.
Interroll and its products hold a globally leading rolein this product segment. The 24-volt RollerDrive is notjust energy-efficient; it also produces significantly lessnoise than comparable products. Beyond this it offers
benefits common to all product groups at Interroll:
rapid installation, quick and uncomplicated replacement and almost no maintenance required.
The strong demand for driven conveyor rollers fromInterroll has necessitated an expansion of production
capacities at the facility in Wermelskirchen, Germany.
At the same time, Interroll is taking advantage of thisopportunity to further improve its technology and toorient itself toward continued success for these activities in the future. Construction of a new hall began
there in June 2016; it is expected to be completed in
the coming year.

OVERVIEW BY PRODUCT GROUPS

12

PRODUCT GROUPCONVEYORS & SORTERS
The “Conveyors & Sorters” product group encompasses sorter and conveyor solutions produced at the
global centres of excellence in Sinsheim (Germany)and Cañon City (USA). It includes crossbelt sorters,
belt curves and modular conveyor platforms. Interroll’s products and solutions in this segment havepositioned it strongly in fields such as the equippingof airports and post / logistics distribution centres.
In the first half of 2016, the product group recorded
consolidated sales of CHF 44.5 million, beating its
figures from the year prior by 2.1 % (CHF 43.6 million). Consolidated order intake increased by significant 5.4 % to CHF 74.4 million, compared with CHF
70.6 million a year earlier.

Interroll’s modular conveyor platform offers
application flexibility.

Interroll concluded the first half of 2016 with a neworder to equip the luggage control stations at airports
using its MCP modular conveyor platform. Within
Germany, Interroll also invoiced a project for theequipping the distribution centre of a leading fashion
producer; the project involved the longest stretch of
conveyors ever delivered by Interroll. In South America, Interroll recently completed a large-scale orderfor the new conveyor platform.
Following its successes in Europe and Asia, Interroll released the modular conveyor platform onto
the American market in early 2016. This represents
a consistent continuation of Interroll’s globalisation
strategy of making its innovative products available
globally as quickly as possible.
Modern materials flow facilities can be planned
quickly and efficiently using Interroll’s modular concept – adjustments can always be retrofit, even during the assembly stage. Facilities designed to takeadvantage of Interroll’s drive concepts are notable
for their extreme high availability, energy efficiency
and very low operating and maintenance costs.
This applies to both new facilities and modernised
existing equipment.

OVERVIEW BY PRODUCT GROUPS

13

PRODUCT GROUPPALLET & CARTON FLOWThe “Pallet & Carton Flow” product group offers
dynamic storage solutions for pallets and parcel packaging based on the FIFO (First In, First Out) or LIFO
(Last In, First Out) principle. This product group is
the responsibility of the global centre of excellence in
La Roche-sur-Yon (France).
With the first half of 2016 now complete, Interroll
is reporting consolidated sales of CHF 32.8 million,
25.2 % higher than from the same period a year ago(CHF 26.2 million). Consolidated order intake rose
to CHF 30.9 million (previous year: CHF 30.4 million). Asia and Europe produced especially strong
demand during the first half of the year. In Korea, alarge-scale project involving mineral water was billed.
Europe saw demand rise on numerous markets. In
Italy, Interroll successfully concluded projects that

Robust and reliable Interroll
flow storage solutions.

included the specification of its products for a leading
automaker. In Egypt, Interroll implemented its largest
flow storage project outside Europe, working with asystem integrator to equip the warehouse of a foodcompany with 11,000 slots for pallets.
The dynamic storage solutions have proven an especially affordable long-term solution for warehouses
with high inventory turnover. The flow storage system from Interroll is tested in the Interroll test centre
in La Roche-sur-Yon, France. The solution survived
50,000 test cycles under extreme conditions, enabling
Interroll to guarantee a long service life and maximum safety.

OVERVIEW BY REGION

14

GLOBALISATION STRATEGY
SUCCESSFULLY CONTINUED
We continued our globalisation strategy in the first half of 2016 as well by tapping new markets andreaching new customers. Interroll recorded growth in all regions. Europe-Middle East-Africa (EMEA)
accounted for 59.6 % of total revenue, Americas for 27.5 % and Asia-Pacific for 12.9 %.

EUROPE–MIDDLE
EAST–AFRICAREGION POSTS STRONG GROWTH
The EMEA region’s growth from a year ago continued in the first half of 2016 as well. Incoming orders
grew by 15.1 % year-on-year, totalling CHF 130.8 million. Sales amounted to CHF 111.5 million, or 6.9 %higher than in the same period a year ago. The growth
was driven now as then by strong demand for rollers and drives as well as for sorters and conveyors. In
northern and western Europe, demand for pallet and­carton flow solutions remained unabatedly strong. The
trends did vary between the individual regional markets. While central Europe maintained the same levels as a year ago, Italy and Spain rose despite difficult
economic conditions and France in particular shone.
Spain and Great Britain recorded monthly records
for order index. Northern and eastern Europe developed positively as well. Orders in South Africa trailed
expectations.

+6,9 %IN REPORTING CURRENCY
IN THE EMEA REGION, GROWTH WASSTRONG IN GERMANY AND FRANCE.

With a 59.6 % share of overall sales at Interroll, EMEA
remains the most important region for the Group. The
technical requirements for suppliers of internal logistics are high and require solid customer relations, deep
knowledge of the industry and technical know-how
to produce innovative solutions for rising complexity
and new trends. Interroll used the Innovation Summit
in Baal, Germany, and the leading international technology fair CeMAT in Hannover, Germany, to present
its technical innovations and broad industry expertise,
as well as the high quality of its production and sales
processes.
Interroll has launched into the Tire & Automotive field
this year as well. A newly created international Key
Account team supports customers in Europe and overseas, opening up new markets at the same time. This
segment has shown a strong interest in Interroll, andbusiness developed rapidly over the course of the firstsix months of the year.

OVERVIEW BY REGION

15AMERICASSALES INCREASE IN THE AMERICAS
The Americas region also grew rapidly for the Interroll Group in the first half of 2016. Sales rose by 13.6 %to CHF 51.5 million. The lion’s share of that development came on the North American market, with theUnited States leading the way. Interroll’s growth trends
here from recent years continued as well. The positive
growth can be attributed to the same factors as before:
strong demand in the areas of e-commerce, food production and distribution centres. Incoming orders
dropped by 6.2 %, amounting to CHF 60.8 million.
South America also developed positively. The pleasantly strong growth in Brazil continued. With thedelivery of the first sorters for a project with the Brazilian postal service, Interroll has positioned itself
successfully despite the country’s difficult politicaland economic conditions. The project required close
collaboration between Interroll’s responsible regional
competence centre in Atlanta and the global competence centre for conveyors and sorters in Sinsheim.
Beyond this, Interroll continued its consistent strategy
of global availability of products and services. This
spring it used the Modex trade fair in Atlanta, the largest logistics exhibition in the Americas, to present its
modular conveyor platform (MCP). After a successful
market launch in Europe and Asia over the past two
years, the solution is now being offered on the growthmarket of the Americas.

The strong growth dynamic in the Americas isreflected by the founding of a sales and service subsidiary in Mexico City this year. It will help Interroll
to provide better service to the logistics hub of Mexico and the surrounding countries, where e-commerce
and automotive sectors are producing strong growthand offering tremendous potential for sales.

+13,6 %IN REPORTING CURRENCYGROWTH IN THE AMERICAS REGION IS
BEING DRIVEN MAINLY BY THE US AND
BRAZILIAN MARKETS.

OVERVIEW BY REGION

16

ASIA-PACIFICSOLID GROWTH REGIONInterroll continued its growth in the Asia-Pacificregion as well in the first half of 2016. After a seasonallydictated weak start, sales through the first six monthsof this year totalled CHF 24.2 million, representing a11.2 % rise year-on-year. Incoming orders dropped by
12.6 %, amounting to CHF 24.4 million in total.
As in recent years, China was Interroll’s most important market in the region. Sales trends in Southeast
Asia were somewhat slow due to the delay of new projects and ongoing projects that cannot yet be invoiced.
The strong demand in the region for Interroll technology stretched across all product groups. For example,
in the first half of 2016 Interroll completed a project+11,2 %IN REPORTING CURRENCY
IN THE ASIA-PACIFIC REGION, THE­CHINESE AND THE KOREAN SUBSIDIARIESBOTH REPORTED GROWTH.

to equip a large aeronautics hub for a global post andlogistics concern together with a system integrator.
The region is increasingly benefiting from the Interroll Group’s global focus, including the founding of a
local production facility. The successful integration of
the regional centres of excellence in Suzhou and Shenzhen into the production chain – resulting in increased
local technical expertise as well as greater proximity
to customers – produced positive synergies in the firsthalf of 2016.
Interroll is consistent in its pursuit of its product strategy in Asia. Following on the heels of the successful
market introduction of the modular conveyor platform last year, Interroll will now launch its magnetic
speed controller 50 (MSC 50) on the Asian market.
This represents a further narrowing of the gaps inglobal product roll-outs, and increases its market
opportunities worldwide through innovative, globally
available technologies and services.

STATEMENT OF FINANCIAL POSITION

17

1

FINANCIAL INTERIM STATEMENTS OF INTERROLL GROUP

1.1

Consolidated statement of financial positionin thousands CHF

30.06.2016

in %31.12.2015

in %ASSETS
Property, plant and equipment

90,31490,374

Intangible assets

40,21043,160Financial assets

621

626

Deferred tax assets

3,308

3,959

Total non-current assets
Inventories

134,453

41.7

57,132

138,119

Current tax assets

2,273

1,360

Trade and other accounts receivable

99,24776,989Cash and cash equivalents

47.1

44,83329,58431,654

Total current assets

188,236

58.3

154,836

52.9

Total assets

322,689

100.0

292,955

100.0

EQUITY AND LIABILITIESShare capital

854

854

Share premium

6,889

6,519

Own shares–769–1,623

Translation reserve–56,337–55,227

Retained earnings

262,657

257,123

Non-controlling interests
Total equity
Financial liabilities

213,29466.1

207,646

8

8

Deferred tax liabilities

3,514

4,505

Pension liabilities

6,562

6,324

Provisions

6,448

Total non-current liabilities

16,532

70.9

5,893
5.1

16,730

5.7

Financial liabilities

204

296

Current tax liabilities

13,345

11,784

Trade and other accounts payable

79,314

Total current liabilities

92,86328.8

68,579Total liabilities

109,39533.9

85,30929.1

Total liabilities and equity

322,689

100.0

292,955

100.0

56,49923.4

CONSOLIDATED INCOME STATEMENT

18

1.2

Consolidated income statement
Jan.–Jun.

Jan.–Jun.

2016

in %

2015

in %

Variancein %Net Sales

187,123100.0

171,338100.0

15,785

9.2

Material expenses–79,948–42.7–70,412–41.1

Personnel expenses–56,766–30.3–51,303

–29.9

4,357

16.4

4,026

18.8

4,403

25.1

in thousands CHF

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

10,217

5.5

3,636

2.1

Other operating expenses–30,659–16.4–27,500

–16.1

924

0.5

775

0.5

and amortisation (EBITDA)

30,891

16.5

26,534

15.5

Depreciation–5,444–2.9–5,113–3.0

25,447

13.6

21,421

12.5

Other operating income
Operating result before depreciation

Operating result before amortisation(EBITA)
Amortisation–3,495–1.9–3,872–2.3

Operating result (EBIT)

21,952

11.7

17,549

10.2

Financing expenses

–15

–0.0

–12

–0.0

Financing income

646

0.0

169

0.1

Financing result

631

0.3

157

0.1

474

301.9

22,58312.1

17,706

10.3

4,877

27.5

Income tax expense–6,818–3.5–4,929–2.8

Result15,765

8.4

12,777

7.5

2,988

23.4

15,765

8.4

12,777

7.5

2,988

23.4

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

18.54

15.05

3.49

23.2

Diluted earnings (result) per share

18.54

15.05

3.49

23.2

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

19

1.3

Consolidated statement of comprehensive incomein thousands CHF

ResultJan.–Jun.

Jan.–Jun.

2016

2015

15,765

12,777

Other income
Items that will not be reclassified to income statement
Remeasurements of pension liabilities–1,485

Income tax

281

Total items that will not be reclassified to income statement–1,204

Items that in the future may be reclassified subsequently to income statetement
Currency translation differences–1,110–20,194

Total items that in the future may be reclassified subsequently to income statetement–1,110–20,194

Other income–1,110–21,398

Comprehensive income

14,655–8,621

14,655–8,621Result 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.

2016

2015

Result15,765

12,777

Depreciation, amortisation and impairment

8,939

8,985

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

–141

88

Financing result, net

–631

–157

in thousands CHF

Income taxes

6,818

4,929

Changes in inventories–13,363–7,986

Changes in trade and other accounts receivable–22,107–15,996

Changes in trade and other accounts payable

23,687

11,780Changes in provisions, net

577

842

Income taxes paid

–6,371–4,139Personnel expenses on share-based payments

1,223

972

Other non-cash expenses / (income)

–155

–543

Cash flow from operating activities

14,241

11,552Acquisition of property, plant and equipment–5,531–11,106–752–1,189296

64

Settlement of loans receivable

5–9Interests received

51

33

Cash flow from investing activities–5,931–12,201

Free cash flow

8,310

–649

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

Dividends

6–10,231

Acquisition of own shares–394

Disposal of own shares
Proceeds from financial liabilities

4,723

Repayment of financial liabilities–91

Interests paid

–19

–15

–10,341

4,234

–39

–2,274–2,070

1,311

Cash flow from financing activities
Translation adjustment on cash and cash equivalents
Changes in cash and cash equivalent–80

Cash and cash equivalent at 1 January

31,654

24,380Cash and cash equivalent at 30 June

29,58425,691CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

21

1.5

Consolidated statement of changes in equity

in thousands CHF

Share
capitalSharepremium

Reserve forown shares

Translation
reserve

Retainedearnings

Total
equityBalance at 1 January 2015

8,540

6,416

–2,008–41,104

228,486

200,330

12,777

12,777

ResultOther comprehensive
income, net of taxes–20,194–1,204–21,398

Comprehensive income–20,194

11,573–8,621

Distribution from reserves
from ­capital contributions, net
Share-based payments–15

Purchase of own shares incl. tax effects
Balance at 30 June 2015
Balance at 31 December 2015

987

972

–394

–394

8,540

6,401

–1,415–61,298

240,059

192,287

854

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
854

6,889

14,655–10,231–10,231

262,657

213,294

854

1,224

Dividends
Balance at 30 June 2016

–1,11015,765–769–56,337

NOTES TO THE CONSOLIDATED FINANCIAL INTERIM STATEMENTS

22

2

NOTES TO THE CONSOLIDATED FINANCIAL INTERIM STATEMENTS

2.1

Basis of the consolidated financial statements

Convention of preparation
The condensed, unaudited consolidated interim financial statements at 30 June 2016 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. This interim statement reflects an update of previously
published information. Therefore, it should always be read in conjunction with the Annual Report 2015. The interim statements were­approved by the Board of Directors on 27 July 2016.
The accounting standards used for these interim financial statements are identical to those published and described in the Annual
Report 2015.
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)

Balance sheet (year end rates)

Jan.–Jun.

Jan.–Jun.

Change

2016

2015

in %

30.06.2016

31.12.2015

1 EUR

1.098

1.047

4.9

1.087

1.083

0.3

1 USD

0.986

0.942

4.6

0.979

0.995

–1.6

1 CNY

0.150

0.151

–0.7

0.147

0.154

–4.4

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 2017 and are
not early adopted in this financial statement. The impact of the introduction / amendment of IFRS 9 (Financial Instruments), IFRS 16(Leasing), IFRS 10 and IAS 28 (Group closing and investments into associated companies and joint ventures), IFRS 11 (Joint Arrangements), IFRS 15 (Revenue Recognition) as well as IAS 16 and IAS 38 (Clarification on acceptable depreciation methods) cannot yet beassessed with sufficient certainty or the expectations of the impact are in line with the disclosures made in the Annual Report 2015.
Based on a first assessment, with the exception of IFRS 15, Group M­ anagement does not expect significant impacts on the consolidated
financial statements from these standards and interpretations.
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 being OEMs, system integrators and end users are taken care of by 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. The Interroll Research Center, which is centrally located, develops new application techno­logies and new products for all product groups. Centersof 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 organized by functions (Overall Management, Products &Technology, Global Sales & Services, Marketing and Finance). The financial m­ anagement of the Group by the Board of Directors is
effected on the one hand by the turnover of the product groups and geographical markets and on the other hand by the reporting of theconsolidated financial ­statements. Group Management additionally assesses the achievement of financial and qualitative targets of alllegal entities.

 NOTES TO THE CONSOLIDATED FINANCIAL INTERIM 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 –0.1 million at 30 June 2016 (31 December 2015: CHF –0.5 million).

2.2

Segment information

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

Jan.–Jun.

2016

in %

2015

in %

Other Europe, Middle East, Africa

84,91945.4

81,901

47.8

Germany

26,53414.2

22,341

13.0

in thousands CHF

Total Europe, Middle East, Africa

111,45359.6

104,24260.8

USA37,975

20.3

37,147

21.7

Other Americas

13,531

7.2

8,212

4.8

Total Americas

51,50627.5

45,35926.5

Asia incl. Australia

24,16412.9

21,737

12.7

Total Asia-Pacific24,16412.9

21,737

12.7

Total Group

187,123100.0

171,338

100.0

Material turnover with specific customers
Turnover is realised with more than 10,000 active customers. There is no customer achieving a turnover of more than four percent ofGroup sales.
Turnover by product group
Turnover realised in the first half year by product group is presented as follows:
Jan.–Jun.

Jan.–Jun.

Jan.–Jun.

2016

in %

2015

in %

2014

in %

Drives61,66233.0

53,20131.0

55,98835.7

Rollers

48,05425.7

48,29528.2

39,39025.1

Conveyors & Sorters

44,53223.8

43,64825.5

33,49821.3

Pallet & Carton Flow

32,875

17.6

26,19415.3

28,192

17.9

187,123100.0

171,338100.0

157,068

100.0

in thousands CHF

Total GroupNOTES TO THE CONSOLIDATED FINANCIAL INTERIM STATEMENTS24

2.3	Notes to the consolidated statement of financial position
Consolidated statement of financial position
Total assets increased by CHF 29.7 million compared to year end 2015. 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 of2016. Current liabilities increased by CHF 24.3 million to CHF 92.9 million. Net working capital increased by CHF 11.1 million to
CHF 66.0 million.
Investments / capital expenditures
A total of CHF 6.3 million in gross capital expenditures were invested in various production facilities. Total non-current assets reached
CHF 134.5 million. Capital expenditure into ­intangible assets in essence are 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, no evidence exists for impairments.
Net financial assets
Net financial assets at the end of the reporting period decreased by CHF 2.0 million compared to year end 2015 and reachedCHF 29.4 million by 30 June 2016.
Total credit lines available but unused at the end of the reporting period amount to CHF 78.8 million (end of 2015: CHF 78.5 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.
EquityMainly due to the higher net profit the equity position increased by CHF 5.6 million to CHF 213.3 million compared to the year end 2015.
The equity ratio at the end of the interim period corresponds to 66.1 % (year end 2015: 70.9 %). Mid May 2016 a dividend of CHF 12.00
per share was paid as agreed during the annual general meeting.

 NOTES TO THE CONSOLIDATED FINANCIAL INTERIM STATEMENTS

25

2.4

Notes to the consolidated income statement

Net sales
Net sales in reporting currency have increased by 9.2 % to CHF 187.1 million compared to the same period last year. In local currencies
the increase reached 6.1 %. All growth is of organic nature. Particularely in Asia a large Pallet and Carton Flow project could be billed.
Earnings before interest and taxes (EBIT)In addition to higher sales und corresponding scale effects in the Group, the EBITDA increased by 16.4 % to CHF 30.9 million (previous
year: CHF 26.5 million). The EBITDA margin was 16.5 % (previous year: 15.5 %).
The EBIT increased by 25.1 % and reached CHF 22.0 million (previous year: CHF 17.5 million). In addition to the better operational
performance, decreased amortisation led to this improvement.
  Financing result
The net financial result of CHF 0.6 million includes, besides a not material net financial interest income, mainly realised and not realised
foreign exchange gains. Due to its decentralised structure, the Interroll Group is generally not much exposed to currency fluctuations.
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 distinguished assessment of future ­realisable losses carried forward. In the period under review tax charges resulting fromprevious periods amounted to CHF 1.1 million (previous year: CHF 0.05 million).
Result
The net profit presented for the reporting period amounts to CHF 15.8 million (previous year: CHF 12.8 million).

NOTES TO THE CONSOLIDATED FINANCIAL INTERIM 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 14.2 million (previous year: CHF 11.6 million).
Cash flow from investing activities
Total investments of CHF 6.3 million (previous year: CHF 12.3 million) include amendments and renewals of machinery and the SAP
ERP system. The previous year mainly contained the construction of the Interroll Academy in Huckelhoven/Baal, Germany.
Cash flow from financing activities
In the first half year of 2016 dividend payments in the total amount of CHF 10.2 million were paid.

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 2015. In August 2015 the shareholders’ capital of CHF
8,540,000 was reduced by CHF 7,686,000 to CHF 854,000.
Assignment of shares
Shares assigned to members of the management in the amount of CHF 0.9 million (previous year: CHF 1.0 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 statement that would have a m­ aterial effect on the presentationof its financial position as at 30 June 2016. 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 FINANCIAL INTERIM STATEMENTS

27

FINANCIAL CALENDAR 2017
Preliminary Financial Figures 201623 January

Publication Annual Report 2016 and Balance Sheet Press Conference

24 March

Annual General Assembly

12 MayPublication Half-Year Report 2017

4 August

CONTACT 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

Erwin Teichmann
Head of Communications & Investor Relations
Tel: +41 91 850 25 21
Email: e.teichmann@interroll.com
EditorInterroll Holding AG
Via Gorelle 36592 Sant’Antonino, Switzerland
Tel: +41 91 8502525
Fax: +41 91 8502505
www.interroll.com

NOTES TO THE CONSOLIDATED FINANCIAL INTERIM 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 halfyear report is available as 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 future-oriented statements. Future-oriented statements include all statements which do not relate
to historical facts and events and contain future-oriented expressions such as “believe”, “estimate”, “assume”, “expect”, “forecast”, “intend”,“could” or “should” or expressions of a similar kind. Such future-oriented 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 in the future take place or be fulfilled as
expected. The company points out that such future-oriented 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 position and profitability and the economic and regulatory fundamentals, are inaccordance with such future-oriented statements in this half year report, no guarantee can be given that this will continue to be the casein the future.

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