M

W W. ITE RR O
LL.C ONW

INTERROLLCORPORATEART

Mid-Year Report
2010

2

letter to the shareholders

August 11, 2010

Dear Shareholders

Overview
In the first half of 2010, Interroll was quick to turn positive indicators emerging from the markets to the company’s advantage. However, there was still a general reluctance to invest in materials-handling projects.
Revenue, in comparison with the first half of 2009, increased encouragingly, rising by 20.3 % in local currency
and by 17.4 % in terms of Group currency from CHF 116.5 million to CHF 136.8 million. Order intake in Groupcurrency was up 18.9 % on the same period last year; costs and margins developed slightly better than
expected. Although prices of raw materials such as steel and plastics continued to climb sharply during thereporting period, Interroll was generally able to neutralise the effects of these increases thanks to productivity
gains and a globally established purchasing pool. Earnings before interest, taxes, depreciation and amortisa-

tion (EBITDA) were 78.9 % above the figure for the first half of 2009, reaching CHF 15.2 million by the end ofJune 2010. Earnings before interest and taxes (EBIT) rose by a considerable CHF 6.7 million to CHF 7.5 million.
Net profit for the period also improved significantly, from CHF 0.1 million in the comparable period of last year
to CHF 5.3 million.
Thanks to sound financing and in line with its strategy of long-term growth, Interroll continues to press aheadon schedule with strategically important projects, such as the introduction of SAP and the construction andexpansion of Centres of Excellence, despite the tough economic climate. The company has also refrained from
scaling back expenditure on the development of new products aimed at generating future growth.
Business activity in North America picked up considerably in the first six months of 2010, a trend largely driven
by Subsystems. Progress was also reported in Asia in the second quarter, while Europe stabilised at a very
low level before signs of a recovery became apparent; the situation here continues to be overshadowed by an
unwillingness to commit to major investments on account of the economic prospects and levels of national
debt.
Within the highly promising growth markets of Brazil, India and China, Interroll has succeeded in establishingstronger links with major clients and putting even more ground between itself and its competitors.

Left
New Interroll SynchronousDrum Motor
Above
New Interroll Centre of
Excellence for conveyor
modules and subsystems
in Sinsheim, Germany:
grand opening in October 2010letter to the shareholders

During the reporting period, the company addressed the realignment of its worldwide sales organisation. It
aims at increasing the market penetration of products, raising customer value through the overall availability ofInterroll solutions and enhancing distribution productivity. Sales and distribution will be reorganised in stagesby the end of 2011.
Financial position
Total assets stood at CHF 218.4 million at the end of June 2010 (compared to CHF 215.7 million at the endof 2009) and the equity ratio stood at 58.9 %. Investment (in the modernisation of production and the SAP
system, amongst other things) amounted to CHF 12.9 million in the period under review. The rise in current
assets linked to the growth in sales, together with current investment projects, pushed up net debt from
CHF 4.2 million to CHF 10.4 million. In half-yearly comparison, cash flow declined from CHF 7.2 million to
CHF 4.4 million, mainly as a result of higher net working capital arising from the substantial increase in sales.
The Components segment
After a slow start to the first quarter of 2010, Interroll reported higher levels of new orders in all of its regional
markets towards the middle of the year. Order intake for the Components segment rose by 16.3 % comparedto the same period of 2009. Revenue increased by 10.9 % to CHF 90.4 million in local currency, and in Groupcurrency by CHF 6.4 million to stand at CHF 88.0 million. All product categories delivered a contribution tosales growth. Thanks to strict cost controls, further improvements in productivity and rising volumes, operating
profit (EBITDA) expanded by 24.5 %, from CHF 10.4 million to CHF 12.9 million. At the level of EBIT, operating
profit rose sharply to CHF 7.0 million compared to CHF 4.4 million in the first six months of 2009.
There was a clear upturn in business activity in Europe against the same period last year, with upward trends
also reported in North America and Asia over the same timeframe.
The recently launched synchronous drum motor, an energy-efficient drive concept for belt conveyors, waswell received in the first half of the year (in the food sector, for example). The European Hygienic Engineering& Design Group (EHEDG) has certified the compatibility of the motor with food processing systems.
Interroll’s synchronous drum motor, a world first, is thus the first EHEDG-certified drive to use this technology.

Right
Interroll Crossbelt Sorter:
Finnish Post Itella
Rightmost
New Interroll Belt Curve3

4

letter to the shareholders

In May 2010, the synchronous drum motor generated a highly positive response at IFFA, the leading international trade fair for the meat industry in Frankfurt/Germany.
The new drum motor solutions – with their easy-to-install cassettes for checkout systems – performed particularly well in comparison with the same period of the previous year. RollerDrives are also expected to makeconsiderable gains in market share. In the first half of 2010, Interroll put the finishing touches to a new RollerDrive generation that will be launched this autumn. With its new control system, the product line will open up
access to smaller plant constructors who will benefit from its advanced user friendliness. The new solution
promises to consolidate the technological supremacy of Interroll.
The Subsystems segment
Although business activity for the Subsystems segment was static as the year began, the second quarter
brought a significant recovery as investment funds were released for small-scale projects in particular; there
remained a reluctance to commit to investment in larger projects. This trend is likely to continue throughout
the second half of the year. In comparison with the same period of 2009, revenue generated within the Subsystems segment expanded by 39.6 %, from CHF 35.0 million to CHF 48.8 million. Earnings before interest,
taxes, depreciation and amortisation (EBITDA) improved substantially, from CHF –1.9 million in the first six
months of last year to CHF 2.3 million at the end of June 2010. EBIT also moved back into positive territory
at CHF 0.5 million (compared to CHF –3.6 million for the 2009 period). Order intake at the end of June 2010
increased by 24.0 %, from CHF 41.6 million in the first half of 2009 to CHF 51.6 million.
In terms of sales, Europe, America and Asia reported double-digit increases for the first half of 2010, with thestrongest growth coming in the US. Interroll received its biggest sorter contract so far in the region from aleading North American postal service. This year, Interroll plans to consolidate its manufacturing facilities in

Above
Interroll dynamic storage
application in the USA
BottomDrum Motors for checkout
stands: plug-and-play cassettesolution
Right
Energy-efficient RollerDrives
from Interroll

letter to the shareholders

Thailand and China at a new Chinese site spanning over 10,000 square metres, the aim being to optimise
production activity in Asia. Thereafter, Thailand will focus exclusively on the southeast Asia region as a sales
hub providing local assembly for quick customer service.
During the reporting period, the new belt curve received a positive reception from the market. The British Airport Authority (BAA), agreed to use the device in its baggage handling systems at British airports. In China,
Interroll secured its first large-scale orders for the new belt curve in connection with a series of airport projects;
the company hopes, this will herald more projects of a similar nature in the future. Demand for safety equipment
at airports also continued to rise over the past year.
In the first half of 2010, Interroll received two major orders in the area of Dynamic Storage. A wholesale distributor in South Africa placed a follow-up order linked to the expansion of a distribution centre; Interroll wasable to win this contract on the basis of outstanding quality, a comprehensive product range and quick local
service. The second dynamic storage project was concluded in May for a client in South America; in this case,Interroll’s global network and references were the decisive factors, aside from the product itself.
Outlook
Although indications from the markets were encouraging in the first half of 2010, they do not point to a widespread turnaround in the economy; visibility may have improved since last year, but remains limited on thewhole. The economic environment continues to be challenging as we approach the second half of 2010. We
are, however, very well placed as we look to the future thanks to our sound financial base, the excellent brandreputation of our market-leading products and solutions and our long-established partnerships with customers. Our strategy of long-term expansion is based on sophisticated, energy-efficient, resource-friendly key
products to support internal logistics. In this way, Interroll will continue to support customers around the world,
including those involved in the increasingly important and eco-friendly field of “green logistics”.

									Paul Zumbühl							Kurt Rudolf

Chief Executive Officer					Chairman of the Board of Directors

5

6

T h e I n t e r r o l l s o l u t i o n s a t t h e g l a nc e

The Heart of Conveyor Technology
and Logistics
Consistent design from the initial concept through system integration toefficient operation: as the “Heart of conveyor technology and logistics”,
Interroll’s best in class solutions ensure high-performance unit load handlingat every stage of material processing – power, precision, perfection.
2

1

11

1

Energy and space-saving: FIFO palletstorage with full-width rollers

2

Space-optimising LIFO pallet flow storage
modules with LIFO speed controllers …

3

… or with Cart Pushback

4Efficient order picking with ergonomic Carton
Flow (Floway wheel tracks)5 uick conversion: order picking from conver­
Q
tible Flex Flow racks

6

Space-saving drive solutions for belt conveyors: Drum Motors with Idler Pulleys, brackets
and optional accessories (eg. controls)

7

Intelligent drive solutions for zero-pressure
accumulation conveyors: 24 VDC RollerDrives
with integrated control electronics, Conveyor
Rollers and PolyVee or O-ring transmissions

8

Long life-cycle solutions for non-driven conveyors: Conveyor Rollers, omni-directional wheels
and ball transfer units9 nbreakable “weightlifter”: pallet conveyor
U
modules with PalletDrive

12

6

5

10 Highly economical, starting at throughputs of2000 units/hour: Crossbelt Sorter with connecting conveyor modules
11 Space-saving solution for direction changes:

Belt Curves and Spiral Curves
12 Smartest solution for height differentials:

Belt Conveyor modules
13 Energy-saving and intelligent: Intelliveyor forzero-pressure accumulation

7

13

3

4

13
8

9

10

8

Key figures as per mid 2010

All charts from January to June, in million CHF

Net Sales Interroll Group consolidated

0

50

100

150

200

2007

175.8

2008

187.5

2009

116.5

2010

136.8

Net Sales Components

0

50

100

150

200

2007

118.2

2008

116.8

2009

81.5

2010

88.0

Net Sales Subsystems

0

50

100

150

200

2007

56.6

2008

70.7

2009

35.0

2010

48.8

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

0

10

20

30

40

2007

32.0

2008

30.5

2009

8.5

2010

15.2

Consolidated earnings before interest and taxes (EBIT)

0

10

20

30

40

2007

21.1

2008

23.3

2009

0.8

2010

7.5

Consolidated Net Profit

0

5

10

15

20

2007

13.9

2008

17.9

2009

0.1

2010

5.3

financial reportfina ncial statements

1 FINANCIAL STATEMENTS OF INTERROLL GROUP
1.1 Consolidated statement of financial positionin thousands CHF

30.06.2010

in %31.12.2009

in % 30.06.2009

in %

56.8

85 57939 525923
202
126 229

58.5

84 28638 833
1 083
273
124 475

56.5

41.5

1 233
40 728715
44 4708 812
95 958

43.5

100.0

220 433

100.0

61.7

12 810135 719– 16 618
131 910

59.8

8.4

2 437
17 5677 296
27 30012.4

27.8

ASSETS
Property, plant and equipment
Goodwill and other intangible assets
Financial assets
Deferred tax assets
Total non-current assets

84 36338 649860
191
124 063

Assets held for sale
Inventories
Current tax assets
Trade and other accounts receivable
Cash and cash equivalents
Total current assets

1 198
36 332
1 223
48 456
7 131
94 34043.2

1 300
39 252
1 711
38 8148 387
89 464

Total assets

218 403

100.0

215 693

58.9

12 810140 636– 20 422
133 024

8.0

1 444
10 4766 303
18 223

29.9

6 584
9 884
44 75561 223

EQUITY AND LIABILITIESShare capitalGroup reserves
Translation reserve
Total equity

8 540
148 780– 28 779
128 541

Financial liabilities
Deferred tax liabilities
Provisions
Total non-current liabilities

1 313
9 429
6 627
17 369Financial liabilities
Current tax liabilities
Trade and other accounts payable
Total current liabilities

16 1895 164
51 14072 49333.2

11 1186 359
46 96964 446

Total liabilities

89 862

41.1

82 66938.3

88 523

40.2

Total liability and shareholder’s equity

218 403

100.0

215 693

100.0

220 433

100.0

9

10

financial repor tfinancial statemen ts

1.2 Consolidated income statement
Jan. - Jun.
2010

in %

Jan. - Jun.
2009

in %

Variancein %Net Sales

136 799

100.0

116 515100.0

20 284

17.4

Material expenses
Personnel expenses
Increase/(Decrease) in work in progress,
finished products and own goods capitalised
Other operating expenses
Other operating income
EBITDA– 53 824– 42 201– 39.3– 30.8– 48 878– 41 540– 41.9– 35.7– 3 031– 26 906
4 335
15 172– 2.2– 19.7
3.2
11.1

2 037
– 23 596
3 941
8 479

1.7
– 20.3
3.4
7.2

6 693

78.9

Depreciation and impairment on property, plantand equipment
EBITA– 5 334
9 838

– 3.9
7.2

– 5 280
3 199

– 4.5
2.7

6 639

207.5

Amortisation
EBIT– 2 323
7 515

– 1.7
5.5

– 2 403
796

– 2.0
0.7

6 719

844.1

Financing expenses
Financing income
Financing result, net

– 279
1 032
753

– 0.2
0.8
0.6

– 947
205
– 742

– 0.8
0.2
– 0.6

1 495

n/a

Result before income taxes

8 268

6.0

54

0.1

–

–

Income tax expense
Result– 2 955
5 313

– 2.2
3.9

56
110

0.0
0.1

5 203

n/a

in thousands CHF

Earnings (result) per share
Basic earnings per average share outstanding in CHF
Diluted earnings per average share outstanding in CHF

6.85
6.85

0.14
0.14

6.71
6.71

1.3 Consolidated statement of comprehensive income
Jan. - Jun.
2010

in %

Jan. - Jun.
2009

in %

Result

5 313

–

110

–

Currency translation differences
Changes in the fair value of cash flow hedges
Net change in fair value of cash flow hedges
transferred to result
Other comprehensive income, net of taxes– 8 357
–

– 6.1
–

5 250
– 419

4.5
– 0.4

–
– 8 357

–
– 6.1

18
4 849

0.0
4.2

Total comprehensive income for the period– 3 044

– 2.2

4 959

4.3

in thousands CHF

financial reportfina ncial statements

1.4 Consolidated statement of cash flows
Jan. - Jun.
2010

Jan. - Jun.
2009

Result5 313

110

Depreciation, amortisation and impairment
Loss/(gain) on disposal of tangible and intangible assets
Financial result, net
Income taxes
Changes in working capital
Changes in provisions, net
Income taxes paid
Personnel expenses on share based payments
Other non-cash (income)/expenses
Cash flow from operating activites

7 657
84
– 753
2 955
– 7 015650– 4 054
1 234– 1 697
4 374

7 683
53
742
– 56
6 904
– 626
– 7 720
467
– 333
7 224

Acquisition of property, plant and equipment
Acquisition of intangible assets
Acquisition of financial assets
Proceeds from disposal of property, plant and equipment
Settlement of loans receivable
Acquisition of subsidiaries, net of cash acquired
Interests received
Cash flow from investing activities– 8 887– 4 034
– 11
169
89
–
59
– 12 615– 6 650– 2 308
– 320
520
12
– 4 595
205– 13 136

Free cash flow

– 8 241– 5 912

Changes in own shares, net
Proceeds from financial liabilities
Repayment of financial liabilities
Interests paid
Cash flow from financing activities

1 137
6 644
– 472
– 438
6 871

–
346
– 7 275– 585– 7 514

Translation adjustment on cash and cash equivalents
Change in cash and cash equivalent114– 1 256606– 12 820

Cash and cash equivalent at January 1
Cash and cash equivalent at June 30

8 387
7 131

21 632
8 812

in thousands CHF

11

12

financial repor tfinancial statemen ts

1.5 Consolidated statement of changes in equity

in thousands CHF
Balance at January 1, 2009

Share capital

17 080Reserve
Share for own Translation Hedging Retained
premium shares
reserve reserve earnings

29 848 – 34 652– 21 868

228

ResultTotal equity

140 095

130 731110

110

Translation adjustments
Effective portion of changes in thefair value of cash flow hedges
Net change in fair value of cash
flow hedges transferred to result
Other comprehensive
income, net of taxes

5 250

5 250

–

–

–

5 250

– 401

–

4 849

Comprehensive income

–

–

–

5 250

– 401

110

4 959

– 410

412
877

– 3 858
467

– 883

494

– 389

– 419

– 419

18

18

Reduction in par value
Share based payment transaction
Changes in own shares,incl. tax effects– 4 270

Balance at June 30, 200912 81028 555 – 32 869– 16 618– 173

140 205

131 910

Balance at December 31, 200912 81028 145 – 32 386– 20 422–

144 877

133 024

5 313

5 313

ResultTranslation adjustments
Effective portion of changes in thefair value of cash flow hedges
Net change in fair value of cash
flow hedges transferred to result
Other comprehensive
income, net of taxes– 8 357– 8 357–––– 8 357––– 8 357

Comprehensive income

–

–

–

– 8 357–

5 313– 3 044

325

386
909

– 3 884
1 234

– 518

1 729

1 211

–
–

Reduction in par value
Share based payment transaction
Changes in own shares,incl. tax effects– 4 270

Balance at June 30, 2010

8 540

27 952 – 29 362– 28 779–

150 190

128 541financial report
Notes to the financial statements

2 Notes to the consolidated financial statements
2.1 Basis of the consolidated financial statements
Convention of preparation
The condensed, unaudited consolidated interim financial statements as per June 30, 2010 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 Groupaccounting principles. This interim statement reflects an update of previously published information. Therefore,
it should always be read in conjunction with the annual report 2009. The interim statements were approved by
the Board of Director on July 28, 2010.
The applied accounting principles in the consolidated interim statements are in line with those of the annual
report 2009 but include the following, new or amended IFRS standards and interpretations.
Contrary to the annual report 2009, the consolidated income statement and the consolidated statement ofcomprehensive income are presented in two separate reports.
New or amended IAS/IFRS standards and interpretations
All new or amended IAS/IFRS standards as well as interpretations with effect as per 2010 (IFRS 1, IFRS 2,
IFRS 3, IFRS 5, IAS27, IAS 28, IAS 38, IAS 39, IFRIC 17) had no material effect onto the consolidated financial
reporting of the Group. They merely result in additional disclosures or in adjusted presentations of the consolidated financial statements.
As per balance sheet date, IFRS 9 (effective as per 2013) and IAS 32 amended (effective as per 2011) werereleased. The relating impact on the consolidated financial statements of the Group cannot yet be determinedwith sufficient reliability. All other standards released (IFRIC 19, IAS 24, IFRIC 14) which will come into effect asfrom the year 2011 or after will only have minor or no effect on the consolidated financial statements.
Critical accounting estimates and judgments
The preparation of the consolidated interim financial statements requires management to make estimates,
assumptions and judgments for the determination of income, expenses, assets, liabilities and for the disclosureof 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 the circumstances change.

13

14

financial repor t
Notes to the fi n an c i al statements

2.2 Accounting policies and standards
Acquisitions of consolidated subsidiaries resp. business activities
In the course of the interim period, there was no acquisition of subsidiaries or business activities respectively. There were no payments
due from previous acquisitions.
In the previous year, the Group acquired assets of two companies for a total of CHF 3.5 million: The net assets of “Maxwell Manufacturing Company” were acquired by Interroll Components Canada Ltd. for an amount of CHF 0.8 million and allow the extension of theadded-value-chain in the business area for supermarket products. The net assets of “BMW metal Fabrication Inc. and ACF Partners
Inc.” were acquired for an amount of CHF 2.7 million and were incorporated into the newly founded company “Interroll Dynamic Storage Inc.”. It produces and sells modules for flow storage systems.
Other changes in the consolidation range
Assets and liabilities of Inroll Ltd., British Virgin Islands, belonging to the scope of consolidation, were merged with Interroll (Schweiz)
AG as per June 1, 2010. Inroll Ltd. was thereafter liquidated. Furthermore Interroll Holding A/S has been merged with its subsidiary
Interroll Joki A/S as per end of May 2010. Also Interroll Financial Canada Ltd. in Aurora/Toronto has been merged with its subsidiary
Interroll Components Canada Ltd., Concord/Toronto as per January 1, 2010.

2.3 Segment information
Income statement and tangible assets as per operational segment
Components

Subsystems

Total Segmentsin thousands CHF

2010

in %

2009

in %

2010

in %

2009

in %

2010

2009

Net sales third party
Sales with other segments
Net sales segments*

87 954710
88 664

99.2
0.8
100.0

81 536–81 536

100.0
0.0
100.0

48 845849
49 694

98.3
1.7
100.0

34 979–34 979100.0 136 799
0.0
1 559
100.0 138 358

116 515–116 515

Material expenses
Personnel expenses
Change in WIP/FG
Other operating result, net
EBITDA
Depreciation
EBITA
Amortisation– 33 825– 27 249
94– 14 763
12 921– 3 845
9 076– 2 097– 38.1– 30.70.1– 16.7
14.6
– 4.3
10.2
– 2.4

– 30 903– 26 457– 1 051– 12 747
10 378– 3 752
6 626– 2 207– 37.9– 32.4– 1.3– 15.6
12.7
– 4.6
8.1
– 2.7

– 21 670– 14 952– 3 125– 7 6962 251– 1 489762– 226– 43.6– 30.1– 6.3– 15.5
4.5
– 3.0
1.5
– 0.5

– 17 975– 15 083
3 088– 6 908– 1 899– 1 528– 3 427– 196– 51.4 – 55 495– 43.1 – 42 201
8.8 – 3 031– 19.7 – 22 459– 5.4 15 172– 4.4 – 5 334
– 9.8
9 838
– 0.6 – 2 323– 48 878– 41 540
2 037– 19 655
8 479– 5 280
3 199– 2 403

6 979

7.9

4 419

5.4

536

1.1

– 3 623– 10.4

EBIT
Total assets
Total liabilities
Investments
Employees

145 906
30 5285 575
773

152 134
29 3605 652
783

64 50327 790
7 346
428

58 52022 688
3 306
441

7 515

796

210 409
58 31812 921
1 201

210 654
52 0488 958
1 224

financial report
Notes to the financial statements

Reconciliation
Total segmentsin thousands CHF

reconciliation togroup figures

Total group

2010

in %

2009

in %

2010

2009

2010

in %

2009

in %

Net sales third party
Sales with other segments
Net sales segments*

136 799
1 559
138 358

98.9
1.1
100.0

116 515–116 515

100.0
0.0
100.0

– 1 559– 1 559––

136 799–
136 799

100.0
0.0
100.0

116 515–116 515

100.0
0.0
100.0

Material expenses
Personnel expenses
Change in WIP/FG
Other operating result, net
EBITDA
Depreciation
EBITA
Amortisation
EBIT– 55 495– 42 201– 3 031– 22 459
15 172– 5 334
9 838– 2 323
7 515– 40.1– 30.5– 2.2– 16.2
11.0
– 3.9
7.1
– 1.7
5.4

– 48 878– 41 540
2 037– 19 655
8 479– 5 280
3 199– 2 403796– 41.9– 35.7
1.7– 16.9
7.3
– 4.5
2.7
– 2.1
0.7

1 671

–

– 112
–

–
–

–

–

–

–

– 53 824– 42 201– 3 031– 22 571
15 172– 5 334
9 838– 2 323
7 515– 39.3– 30.8– 2.2– 16.5
11.1
– 3.9
7.2
– 1.7
5.5

– 48 878– 41 540
2 037– 19 655
8 479– 5 280
3 199– 2 403796– 41.9– 35.7
1.7– 16.9
7.2
– 4.5
2.7
– 2.0
0.7

Total assets
Total liabilities
Investments
Employees

210 409
58 31812 921
1 201

7 994 9 779
31 544 36 475––––

218 403
89 86212 921
1 201

210 654
52 0488 958
1 224

220 433
88 5238 958
1 224* Transactions between segments were not evaluated in the previous year’s interim period.

The management structure of the Interroll Group is governed by organization regulations. All strategic and major operational decisions
lie within the competence of the Board of Directors who also decides on the allocation of financial resources. The Interroll Group is
managed through two organizational segments which primarily are defined by their product groups and their sales and distribution
channels.
a) The segment “components” develops, produces and sells rollers, roller drives and drum motors and uniquely sells to OEMs. The
production process is optimized for a large number of orders and follows the principle of mass production.
b) The segment “subsystems” develops, produces and sells flow storage modules for heavy and light duty applications as well as
modules for the internal unit load handling logistic such as belt curves, sorters and roller-/belt conveyors. Customers are on one
hand OEMs and on the other hand especially system integrators and end customers. The production process consists of parts
production and consecutive assembly of the final products.
The major assessment drivers are the EBITDA/EBIT and the return on net assets (RONA) based on the accounting principles IAS/IFRS.
In view of the centralized financing by group treasury, no financial expenses are allocated onto segments. Furthermore the legal structure clearly deviates from the management structure which is the reason for non-allocation of income taxes onto the segments.

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financial repor t
Notes to the fi n an c i al statements

2.4 Notes to the consolidated statement of financial position
Total assets
Total assets increased compared to the year end 2009 is mainly due to the higher sales with relating effect on
trade receivables.
Investments/capital expanditures
Investments are mainly related to the extension of the competence centre for Rollers in Wermelskirchen/Germany and the new facility for module production in Sinsheim/Germany. Both buildings will be completed during the second half of the year. Further investments relate to the construction and introduction of a new,groupwide uniform ERP system.
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)
The net debts as per end of the reporting period amount to CHF 10.4 million (year end 2009: CHF 4.2 million).
The increase relates on one hand to the rise of the net working capital as a result of sales growth. On theother hand no major cut backs were initiated on the investment program.
The total credit lines available as per end of the reporting period amount to CHF 75.1 million, of which
CHF 57.6 million remain unused. From these credit lines CHF 40 million are committed until March 2012 undercondition that debt covenance is complied with.
The debt covenants have always been complied with during the interim period.
EquityEquity decreased by CHF 4.5 million to CHF 128.5 million compared to the previous year end. The par value
reduction totalling CHF 3.9 million has been debited to equity as per end of this year’s interim period andallocated to the short term liabilities. The equity ratio as per end of the interim period corresponds to 58.9 %(year end 2009: 61.7 %).

financial report
Notes to the financial statements

2.5 Notes to the consolidated statement of comprehensive income
Net sales
Net sales in reporting currency have increased by 17.4 % from CHF 116.5 million to CHF 136.8 million compared to the previous year’s period. Excluding foreign currency effects the increase represents a growth of
20.3 %.
Both reporting segments and all regions have contributed to this growth. Although the global economy has
improved customers remain cautious with investments.
Personnel expenses
Personnel expenses include, in line with IFRS 2, an amount of CHF 0.7 million reflecting the value increase of
the existing share options issued to management. The option- and blocking period of the share options havebeen extended (see “Notes to the consolidated statement of changes in equity”).
Earnings before interest and taxes (EBIT)
The operating profit EBIT increased from CHF 0.8 million in the previous year period to CHF 7.5 million in thecurrent interim period. Volume effects, an increased gross margin and a strict cost control contributed to thepositive result improvement. Product development on the existing product range have not been reduced.
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 contains tax recoveries/-adjustment
charges from previous years. It is also influenced by distinguished assessment of future realizable losses carried forward.
Result
The profit presented for the reporting period amounts to CHF 5.3 million (previous year’s period: CHF 0.1 million). The profit is not influenced by acquisition activities in the interim period while it was insignificant in theprevious year’s period.

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financial repor t
Notes to the fi n an c i al statements

2.6 Notes to the consolidated statement of cash flows
Cash flow from operating activities
The cash flow from operating activities amounts to CHF 4.4 million (previous year’s period: CHF 7.2 million).
The improvement in net sales especially resulted in an increase of trade receivables and required respective
funding.
Cash flow from investing activities
For investments into buildings, machinery and the new ERP system CHF 12.9 million (previous year’s period:
CHF 9.0 million) were spent (see “Notes to the consolidated statement of financial position”).
In the period under review no acquisitions or business activities were undertaken. Furthermore no partial payments were due from previous year’s acquisitions.
For the net assets of “BMW Metal Fabrication Inc. and ACF Partners Inc.” and for “Maxwell Manufacturing
Company” as well as for payments related to acquisitions from years before an amount of CHF 4.6 million was
paid from cash & cash equivalents in the previous year period.
Cash flow from financing activities
End of February 2010, the last instalment (CHF 6.0 million) for the loan borrowed to finance the acquisition of
the BDL Group was settled. The net liquidity need is refinanced through short term loans.
The payment of the par value reduction will take place beginning of August 2010 and is therefore not yet reflected in the cash flow statement.

2.7 Notes to the consolidated statement of changes in equity
Nominal capital repayment
At the general assembly held on May 7, 2010, a par value reduction of CHF 5 per share was approved. The
respective amount of CHF 3.9 million is disclosed as a short term liability in the interim statement. There is noliability presented for the par value reduction on own shares. The legal execution will take place on July 28,
2010, the payment will be settled on August 10, 2010.
Option plan
During the first half year of 2010, the Board of Directors decided to extend the option life and blocking periodof the existing management share option plan by two years. The increase in value of the option of CHF 0.7
million was credited to share premium.
Assignment of equity instruments
Equity compensation to members of the management in the amount of CHF 0.5 million (previous year:
CHF 0.5 million) was expensed.

financial report
Notes to t he fina ncial statements

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 material effect on the presentation of its financial position as at June 30, 2010.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 which would result ina 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 are no contingent liabilities in the period under review.

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Information
INTERROLL HOLDING LTD.
Via Gorelle 3
CH–6592 Sant’Antonino
Phone+41 91 850 25 25

Fax+41 91 850 25 05

Web

www.interroll.com

Investors

www.interroll.com/ir

Contact
Paul Zumbühl
CEO
Phone

+41 91 850 25 25

e-mailinvestor.relations@interroll.com

Imprint
Concept and coordination:
Interroll Holding AG, Investor Relations
Layout/DTP:
Victor Hotz AG, Corporate Publishing & Print, ­SteinhausenThis interim financial statement is a translation from the German original version.