M i d -Y e a r R e p o r t 2 013

I N S PIRED B Y
	E F F I C IE N C YLetter to the Shareholders

Interroll Sorters use open standards, they are fully compatible with any software and hardware environment.

letter to the shareholders

Mid-Year Report 2013This very good result is a con­sequence of a more favourable

Sant’Antonino

product mix including latest innovations and cost efficiency

9 August 2013

gains received from purchasing and supply chain improvements.

Dear Shareholders:Interroll remains optimistic in a strategically strong position

2

Overview – The Interroll Groupworking with the top 10 global system integrators all overDuring the first half of 2013 Interroll substantially improved

the world. It becomes obvious, that the efforts of under-

its operating result (EBIT) by 12.7% and its net profit bystanding the industry concerns internationally well lead to11.2%. Earnings before interest, taxes, depreciation and am-

additional sales which are handled by our partners but

ortisation (EBITDA) progressed by 9.6% to CHF 21.4 million

was initiated through the so-called “end-user pull effect”.

(previous year: CHF 19.6 million). The group grew sales by

We undertake a lot of activities to provide solid business

1.2% to 149.1 million and order intake topped last year

cases, thorough test schemes and application research toby 2.6%. Despite the slight decline of our European business,

describe the benefits of our products. Interroll is broadly ac-

the growth of our Asian activities was more than 30% above

cepted as expert of internal logistics and helps to contribute

last year’s per­formance, Order Income was even moreto the most effective materials handling solution. That’s

than 50% higher. With the positive trend of our operations

why Interroll expertise is valued when new internal logistics

in Americas, this has lead to a quite comfortable balance.

concepts are discussed and end-users have to make theirLetter to the Shareholders

decisions. As a result, sales of the very
profitable business of Sorters andPallet Flow, is more than 4 times thevalue of last year.
Interroll benefits a lot from the uniquestrategic position to be the “mostglobal supplier of core products formaterial handling”. Customers whowish to invest in future-proof equipment today, often desire fewer sup­pliers of core products, thus Interroll iscapable in offering the entire programof conveying systems, drive tech­nology
and customized functions which
no-other supplier can do. Our clients
often refer to our extensive experienceof internal logistics applications
and the know-how of global companies

Striving for perfection: Interroll organized an in-house event presenting the Centersof Excellence.

which work with Interroll. Our global
reach also helps customers because

Financial positionof our company-wide platform strategy. Shortest delivery

The latest figures confirm the continued financial stability

times, fast innovation cycles and highest quality standardsof the Interroll Group. As per 30 June 2013 equity amounted tomake Interroll the indispensable partner of choice.

CHF 171.0 million (31.12.12: CHF 157.6 million) and total assets reached CHF 248.7 million (31.12.12: CHF 227.6 million).

In June, Interroll organized for the first time an in-house

Due to the higher balance sheet total the Group’s equity ratio

event for four days presenting all Centers of Excellence to an

decreased slightly in the period under review, standing at

audience of customers and media using the theme “Behind

68.7% at the end of June 2013 (31.12.12: 69.3 %). Net working

the scenes of dynamism”. This joint activity with the Saubercapital increased by CHF 12.1 million in the reporting period,

F1 Team and several universities has attracted vast media

reaching CHF 66.2 million (31.12.12: CHF 54.0 million).

coverage and resulted in up to 80 customers from nine coun-

When comparing the two half-year periods, net cash flow

tries visiting our show every day.

from operating activities reached CHF 17.6 million and free
cash flow amounted to CHF 11.2 million. Mainly due

Today, Interroll operates 31 own companies worldwide

to higher trade receivables and heavy investments in the newwith 1,600 people. All in all, the share price of Interroll

Regional Center of Excellence in Atlanta/USA the free cash

grew from CHF 333.00 on 1 January 2013 to CHF 386.50

flow is CHF 3.7 million lower than last year.

on 1 July 2013.

3

Letter to the Shareholders

Ordered today, delivered tomorrow: Innovative roller conveyor system increases the performance of Pemic Books’ new distribution centre.

“Drives” product group
The Drives product group (motors and drives for con­veyor systems) remains an integral part of the Interroll
success story.
Thus, this business continued its strong performance,
generating revenue of CHF 54.6 million in the first half of2013 (previous year: CHF 51.7 million), while order intake
increased from CHF 49.9 million to CHF 55.4 million.
The market recognizes Interroll as an independent expert ofdrives technology with a vast experience in almost all
relevant industries and of global reach. For example, Interroll

As e-commerce continues to grow book distribu­­tors need to expand customer services to profit
from the trend. Pemic Books in the Czech
Republic is restructuring its distribution processes to enhance customer service and speed up
next-day deliveries. In a new distribution centre,
the com­pany also uses the latest control technology from Interroll for roller conveyors.

has launched a drum motor campaign in Thailand inviting
partners and end users to share with them technology
and application know-how in the area of food processing.

With the trend for more flexibility in conveying systems, theOverall, Interroll Drum Motors are still among the most effi-

24V technology has increased its importance in the market.

cient drive systems in the 400 V spectrum. Further improve-

Several new installations and many retrofitting projects havements have been achieved to optimize the performance of

consciously selected the benefits of the 24 V drives technology

the state-of-the-art Synchronous Drum Motor.

where Interroll is the sole supplier to offer its vast RollerDrive
program from driven rollers and control systems to entire
kit solutions for simple installations.

4Letter to the Shareholders“Rollers” product group
The Rollers business remains stable with about the same
To support the dynamic growth of its branded

profit performance as last year, but with less major deals as

re­tail business, Triumph International operates

we saw them in the beginning of the first semester of 2012.

a large logistics platform in French Obernai,

In the period under review, revenue generated by the sale

which serves part of the European network. To re-of conveyor rollers (CHF 38.6 million) did not equal

duce costs, downtimes, the use of energy and thethe high level achieved in the first half of the previous year

noise level of pneumatic conveyors, the company(CHF 41.7 million).

needed a new solution. The upgrade with RollerDrive technology from Interroll created substantial benefits for Triumph, including energy
savings of 50% and a significant noise reductionof 18%. The distribution centre runs daily shiftsof 21 hours to supply its outlets with lingerie adding up to a total of 40 million pieces per year.

In order to provide further insights to the business modelsof the two dominant drive systems (the 24 V and 400 V technologies), Interroll has supported a study of Karlsruhe Institute for Technology (KIT) which was already presented
at the recent inhouse event and is soon available for download.
In summary, the study confirms that in intermittent dutyof a roller conveyor with a 24 V drive used for transporting a
50 kg carrier up to 30% of energy can be saved compared tothe standard 400 V technology with a geared motor. With
regard to the accumulating function, the energy requirement
can even be reduced by 50%.

“From Interroll, I receive very specific products
according to my requirements, delivered in the shortest time based on my needs, in the right amount,at the right place. I must know that I can rely on the
product. I can do that with Interroll.”
Max Heber, Managing Director, Heber Fördertechnik,Longlasting Rollers and RollerDrive customer

In June, Interroll has received an order from theJapanese logistics provider Daifuku for delivery
of a state-of-the-art sorting system consistingof a crossbelt sorter and conveyors. Order value
is approximately EUR 1.7 million. Appropriate arrangements were made with the German
Daifuku subsidiary during the in-house exhibition at Interroll in Wermelskirchen.

5

Letter to the Shareholders

The global B2C e-commerce market will grow by 17 percent to USD 1.2 trillion this year, according to an eMarketer forecast. The largest submarket
is North America, with e-commerce sales of USD 420 billion.

“Conveyors & Sorters” product group
The market sees a strong trend in automation which leads tosions, Interroll also benefits nicely from the overall posi­-

a remarkable increase of sorter inquiries and projects world-tion of offering the entire conveying portfolio which can be

wide. The trend follows two main drivers: E-commerce andcustomized for each client’s requirements. The independentworking ergonomics. The more items are purchased online,

role of Interroll further helps our customers to select thethe more flexibility and speed are required from the trade

best possible combination of hardware and software, sincecompanies around the globe. On the other hand, with thethe interoperability of the Interroll sorters with any

flexibility and efficiency, managers have to address the

ERP or Warehouse Management System (WMS) is unique.

need for better ergonomics and work safety to reduce unproductive incidents and fluctuation of workers.
Interroll sorters have been ordered recently for Japan, Russia,
Brazil, Korea and China next to the established markets ofEurope and USA.
The Conveyors & Sorters product group managed to exceed
the very high figures from 2012, from CHF 25.6 million to astrong result of CHF 26.1 million. Incoming orders declined
from CHF 41.5 million to CHF 39.0 million year on year.

6

Not only is the sorter business taking up into new dimen-

Letter to the Shareholders

Interroll Magnetic Speed Controller: Unique wearless design for highest durability and maximum versatility in pallet handling.

“Pallet & Carton Flow” product groupsolution first rather on re-negotiations and mitigating

The dynamic storage product group increased its revenue

the problem. Today, Swiss Pearlwater (a Coop subsidiary)

again in the period under review from CHF 28.5 million

is among our top customer references with excellent

to CHF 29.8 million. Order intake also improved significant-per­formance and real expansion opportunities.

ly by 13.0% from CHF 33.2 million to CHF 37.5 million.
In the beginning of this year, Interroll signed the biggest
Pallet Flow deal ever. Red Bull in Thailand invests
CHF 6.5 million for Pallet Flow into the expansion of theirregional distribution hub. This repeated business is the
fourth step of the long-lasting partnership between Interroll,the system integrator and Red Bull Thailand.

From the new Pearlwater bottling centre in Wallis, Coop supplies consumers throughout Switzer-

New Management, massive investments into competence

land with premium mineral water quickly, anddevelopment and sales trainings have been cultivated intowith minimal environmental impact. A high level

new levels of customer commitment recently. Thanks to thisof goods throughput and an energy-friendly op-

culture, a difficult logistic installation with initial projecteration at the Pearlwater centre, combined withcom­plications could be successfully turned around to thetransport by rail, ensure that the concept is a sus-

full satisfaction of the customer. According to our partners,

tainable one. A highly compact SSI Schäfer palletno other supplier would have been financially and mentally

flow storage system with Interroll roller modules

able to change the scope in that manner and focus on the

supports the flow of materials.

7Letter to the Shareholders

As of 10 July 2013, Interroll has taken over Portec. With over 60,000 installations, – especially in airports, distribution centers and courier and postal
services – the curves of Portec have for decades been the industry’s leading products. In airports, Portec’s solutions are in use especially for
baggage handling i.e. in large airports such as Hartsfield-Jackson Atlanta Airport, Chicago O’Hare Airport, San Francisco International Airport
and Philadelphia International Airport.

Overview by region

strategy for growth, this key market will now be supported

With the very positive development of our business in Asia

by Interroll itself, offering the entire product portfolio. At aand Americas we could also balance out the high depend-

recent press conference in Milan, no less than 20 journalists

ence on the European business slightly, which now stands forfrom leading trade and business media but also daily news

about 68.6% of our business. In the respective period, Asia

attended and all appreciated Interroll’s undertakings togrew by 28.2% and Americas by 2.0%.

conquer this important market of high tech expertise andmachinery innovations.

Sales in Europe reaching CHF 102.4 million are slightly
behind expectations and 2.7% below last year. With the re-

The economic environment in the USA during thecovery after a weak 1st quarter, the aspiration of a growth

period under review has been improved overall and sales ofscenario remains intact as we base our view on several

Interroll increased by 2.0% from CHF 28.5 million to

outstanding opportunities for Rollers and Drives but also

CHF 29.0 million. In the same period, our Order Income has

Sortation and Conveying solutions.

even grown by 12.6%. With the good progress of the building of the new Regional Center of Excellence in Atlanta and8

Furthermore, Interroll started its own activities in Portugal

the integration of Portec, Interroll intends to invest into thisthrough Interroll Spain and Interroll officially opened anregion up to USD 40 million this and next year.

own subsidiary in Italy beginning of June – Europe’s third

We have received repeated Sorter orders from several major

biggest economy. In this ambitious market, Interroll

customers, including Amazon, and see the positive impacts of

was represented by Rulmeca before. According our global

investing in competence and resources for driving the Drum

Letter to the Shareholders

Motor market in the USA. With the acquisition of Portec asof 10 July 2013, Interroll immediately increases its customer
reach offering more products to the airport and parcel segments. The integration of the former Portec organization willfurther lead to a better customer service of Interroll clientsat the West Coast and trigger cross-selling opportunities forcustomers which Portec could not satisfy in the past.
Sales in Asia increased by 28.2%, net of currency 24.4%, year
on year from CHF 13.8 million to CHF 17.7 million and orderintake increased by 54.5% in the period under review. The
growth of the Asian market in relation to the world economy
and the imminent trend for automation has helped Interroll
to again grow in Asia. Interroll Korea, Thailand, China andDr. Ben Xia, Executive Vice President, Operations Asia.

Singapore have captured significant orders and increased
their market position. The performance of the Regional

Dr. Ben Xia is in charge of the Asian operations as of 1 July

Center of Excellence in Suzhou, China, has been further in-

2013. He will be instrumental to drive the business and man-creased with the establishment of global processes andage the organization best for the Asian future requirements.

competence development programs. Since 1 April 2013, SAP

With the appointment of Ben Xia as Interroll’s new Executive

has been successfully implemented in all Asian organi­Vice President for Asia, a materials handling expert with anzations – the last step was the Go-Live of Interroll China.

impressive track record has joined the company.

Following the opening of the new regional Centre of Excellence in Suzhou near Shanghai in 2011, Interroll expanded its services for customers in Asia
on a massive scale. Fast delivery, application engineering and local production and/or assembly of all products ensure that customers worldwide
benefit from the key advantages and expertise of Interroll products. In financial year 2012, Interroll recorded double-digit growth in Asia and growthof 24% in China.

9Letter to the Shareholders

Innovation

Another example is the good progress with the development

Interroll innovations are always designed to simplify every-of Interroll’s “Conveyor Platform for Growth” which prom-

day logistics tasks. A typical example of this would be

ises to be revo­lutionary in many detailed aspects. With a new

the Interroll Magnetic Speed controller for Pallet Flow appli­

set of flexibility and unreached delivery capacities, Interroll

cations. Invisibly integrated into the roller to regulate thewill further extend its market position in this important area

speed of passing pallets of various weights up to 1,250 kg. The

of internal logistics. The new platform will be presented

heavier the weight, the greater the breaking effect. No wear-

at CeMAT 2014, the world’s leading fair for intra­logistics.

ing of brakes, no heating of the units – thanks to the patented
magnetic solution.

Interroll has released an animation of a cross-belt sorter to describe the multifunctional applications and the unique featuresof the patented mechanical system. The animation is available on interroll.com.

10

Letter to the Shareholders

Interroll Italia will serve all Italian customers to benefit from the experience of a global company. Interroll decided this investment offering
its full range of standardized core products for materials handling to the benefit of core industries like food and beverage, e-commerce, parcel anddelivery and airport security. As an innovative partner, Interroll is keen to foster partnerships with the leading System Integrators and OEMsin Italy for the sake of offering first-class internal logistics solutions to the Industry.

Outlook

But Interroll intends to leverage this situation to stand out

In the period of review, Interroll has significantly invested

even further from the competition and capture interestingin future growth and optimization of processes. A number

business where no other competitor is able to satisfy customerof outstanding opportunities have been identified andneeds as described above.

markets like Italy, USA and many other countries, next to theso-called BRIC states show positive trends. Still, given the

We will continue to invest in product innovation in ordercurrent economic climate, Interroll confirms a watching brief

to generate above-average added value for our customers andand a realistic view of the near future. Continuing currency

to secure the future of the business. To be sure of achieving

fluctuations, volatile raw material prices and the prevailing

our long-term growth strategy, we will also be staying true toreluctance of key user markets to invest are stifling growth.

our established core principles: fastest delivery, simplicity inall we do and providing highest quality.

Paul Zumbühl

Kurt Rudolf

Chief Executive Officer

Chairman of the Board of Directors

11Key Figures

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

Consolidated net profit+1.2%+11.2%
147.4

136.8

2010

149.1
9.9

137.2

2011

2012

2013

100 m

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

+9.6%
20.5

21.4
19.6

15.2

2010

2011

2012

2013

10 m

Consolidated earnings before interest and taxes (EBIT)+12.7%
13.2

13.1
11.6

7.5

2010

12

2011

2012

2013

5m

10.5
9.5

5.3
2010

2011

2012

2013

5m

M i d - Y e a r R e p o r t 2 0 1 3 : S t a t e m e n t o f f i n a nc i a l p o s i t i o n
In t e r r o ll G r o u p

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

30.06.2013

in %31.12.2012
Restated1)

in %30.06.2012
Restated1)

in %ASSETS
Property, plant and equipment

77 72576 82879 716

Intangible assets

37 43939 15240 066

Financial assets

1 506

890

934

Deferred tax assets

2 836

2 838

1 496

Total non-current assets

119 506

Inventories

43 54135 595Current tax assets

1 307

741

801

Trade and other accounts receivable

61 54957 43958 532

Cash and cash equivalents

48.0

22 811

119 70852.6

122 21250.8

47 07314 10911 822

Total current assets

129 208

52.0

107 88447.4

118 228

49.2

Total assets

248 714100.0

227 592

100.0

240 440

100.0

EQUITY AND LIABILITIESShare capital

8 540

8 540

8 540

Share premium

13 76520 42720 461

Reserve for own shares–12 210–17 670–18 715

Translation reserve–41 203–44 319–44 202

Retained earnings

202 082

Total equity

170 974

190 65968.7

157 637

181 728
69.3

147 812Financial liabilities

5 075

5 025

5 043

Deferred tax liabilities

1 274

2 300

1 611

Pension liabilities

2 563

3 469

2 112

Provisions

5 779

5 322

5 369

Total non-current liabilities

14 691

Financial liabilities

5.9

233

16 116

7.1

396

14 13561.5

5.9

14 018Current tax liabilities

8 855

9 068

8 734

Trade and other accounts payable

53 96144 37555 741

Total current liabilities

63 04925.4

53 83923.7

78 493

32.6

Total liabilities

77 74031.3

69 955

30.7

92 628

38.5

Total liabilities and equity

248 714100.0

227 592

100.0

240 440

100.0

1)

see remarks under 2.1; adoption of IAS 19R (Restatement)13

M i d - Y e a r R e p o r t 2 0 1 3 : Inc o m e s t a t e m e n t
In t e r r o ll G r o u p

1.2 Consolidated income statement
Jan. – Jun.
2013

in %

Jan. – Jun.
2012
Restated1)

in %Variancein %149 138

100.0

147 442

100.0

1 696

1.2

Material expenses– 60 552– 40.6– 63 726– 43.2

Personnel expenses– 45 526– 30.5– 44 950– 30.5

805

0.5

1 706

1.2

1 886

9.6

1 683

11.8

1 477

12.7

in thousands CHF
Net Sales

Increase/(Decrease) in work in progress,
finished products and own goods capitalised
Other operating expenses– 26 627– 17.9– 25 476– 17.3

Other operating income

4 206

2.8

4 562

3.1

Operating result before depreciation andamortisation (EBITDA)

21 444

14.4

19 55813.3

Depreciation– 5 445– 3.7– 5 242– 3.6

Operating result before amortisation (EBITA)

15 99910.7

14 316

9.7

Amortisation– 2 922– 2.0– 2 716– 1.8

Operating result (EBIT)

13 077

8.8

11 6007.9– 0.1

Financing expenses

– 476

– 0.3

– 175

Financing income

47

0.0

158

0.1

Financing result

– 429

– 0.3

– 17

– 0.0

– 412

2 367.5

Result before income taxes

12 648

8.5

11 583

7.9

1 065

9.2

Income tax expense– 2 102– 1.4– 2 096– 1.4

Result

10 546

7.1

9 487

6.4

1 059

11.2

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

12.95

11.85

1.10

9.3

Diluted earnings per share

12.87

11.71

1.16

9.9

1)

14

see remarks under 2.1; adoption of IAS 19R (Restatement)M i d - Y e a r R e p o r t 2 0 1 3 : c o m p r e h e ns i v e i nc o m e s t a t e m e n t
In t e r r o ll G r o u p

1.3 Consolidated statement of comprehensive incomein thousands CHF
ResultJan. – Jun.
2013

Jan. – Jun.
2012
Restated1)

10 546

9 487

O ther comprehensive income
Items that will not be reclassified to income
statement
Remeasurements of pension liabilities

1 102

–971

Income tax on items that will not be reclassified

–226

202

Total items that will not be reclassified to income
statement

876

–769

3 115

–346

–

–

Total items that may be reclassified subsequently toincome statement

3 115

–346

Total other comprehensive income, net of taxes

3 991–1 115

Total comprehensive income

14 537

8 373

Items that may be reclassified subsequently toincome statement
Currency translation differences
Income tax on items that may be reclassified

1)

see remarks under 2.1; adoption of IAS 19R (Restatement)15

M i d -Y e a r R e p o r t 2 013 : C a s h F l o w S tat e m e n t
In t e r r o ll G r o u p

1.4 Consolidated statement of cash flows
Jan. – Jun.
2013

Jan. – Jun.
2012
Restated1)

Result

10 546

9 487

Depreciation, amortisation and impairment

8 368

7 958

in thousands CHF

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

–14

–15

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

–1 233Financing result429

3Income taxes

2 102

2 088

Changes in working capital–1 738

3 036

Changes in provisions
Income taxes paid

122

–4 118–3 987

Personnel expenses on share based payments

899

838

Other non-cash (income)/expenses

524

–90

Cash flow from operating activites

17 56518 207

Acquisition of property, plant and equipment–4 953–3 515Acquisition of intangible assets–979–2 212Acquisition of financial assets

–645

–29

Proceeds from disposal of property, plant and equipment

129

2 379

Proceeds from disposal of intangible assets

2–

Settlement of loans receivable442

Acquisition of business activities, net of cash acquired––

Interests received

47

48

Cash flow from investing activities–6 395–3 287

Free cash flow

11 17014 920Distribution from reserves from capital contributions–6 520–5 594––866

Acquisition of own shares
Disposal of own shares

4 418

Proceeds from financial liabilities

114

234

Repayment of financial liabilities–347–9 005Interests paid
Cash flow from financing activities

–70

–171

–2 405–13 670

Translation adjustment on cash and cash equivalents

–63

50

Change in cash and cash equivalent

8 702

1 300

Cash and cash equivalent at 1 January

14 10910 522

Cash and cash equivalent at 30 June

22 811

11 822

1)

16

567

see remarks under 2.1; adoption of IAS 19R (Restatement)M i d -y e a r r e p o r t 2 013 : c h a n g e s i n e q u i t y
In t e r r o ll G r o u p

1.5 Consolidated statement of changes in equity
in thousands CHF

Share capital

Share
Premium

R eserve forown shares

Translation
reserve

R etained
earnings

Total
Equity8 540

26 630–21 018–43 856

172 989

143 285

Balance at 31 December 2011
Restatement
Balance at 1 January 2012 restated 1)

8 540

26 630–21 018–43 856

Result20

20

173 009

143 305

9 487

9 487

Other comprehensive
income, net of taxes

–346

–769

–1 115Comprehensive income

–346

8 719

8 373

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

Balance at 30 June 2012 restated 1)

8 540

20 461–18 715–44 202

181 728

147 812

Balance at 31 December 2012 restated 1)

8 540

20 427–17 670–44 319

190 659

157 637

10 546

10 546

ResultOther comprehensive
income, net of taxes

3 115

876

3 991

Comprehensive income

3 115

11 42214 537

Distribution from reserves from
capital contributions–6 520––6 520Share based payment transaction

–106

1 005

899

Changes in own shares,incl. tax effects

–34

4 455

4 421

13 767–12 210

Balance at 30 June 2013
1)

–

8 540

–41 204

202 081

170 974

see remarks under 2.1; adoption of IAS 19R (Restatement)17

M i d -Y e a r R e p o r t 2 013 : N o t e s
In t e r r o ll G r o u p

2 N otes to the consolidated financial interim
statements
2.1 Basis of the consolidated financial statements
Convention of preparation
The condensed, unaudited consolidated interim financial statements as per 30 June 2013 have been preparedin 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 2012. The interim statements wereapproved by the Board of Directors on 24 July 2013.
The Interroll Group has adopted the amendments of the IASB in the standards and interpretations (IAS 1,
IFRS 7, IFRS 10, IFRS 11, IFRS 12, IFRS 13, IAS 19, IAS 27 and IAS 28) that came into effect as per 1 January
2013. There was no significant impact with the exception of IAS 19R in the disclosure and reporting of thisinterim statement from the adoption of the new and amended 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.
2013

Jan. – Jun.
2012

Changein %Balance sheet(Year end rates)

30.06.2013

31.12.2012

Change
in %
2.2

1 EUR

1.229

1.203

2.1

1.234

1.207

1 USD

0.938

0.924

1.4

0.943

0.915

3.1

1 CAD

0.917

0.922

–0.5

0.900

0.919

–2.1

1 GBP

1.440

1.464

–1.7

1.439

1.479

–2.7

1 SGD

0.753

0.735

2.4

0.746

0.749

–0.5

1 CNY

0.152

0.146

3.7

0.154

0.147

4.7

1 PLZ

0.292

0.285

2.1

0.284

0.296

–4.0

1 THB

0.031

0.030

5.4

0.030

0.030

1.7

1 ZAR

0.100

0.117

–14.4

0.094

0.108

–12.6

New or amended IAS/IFRS standards and interpretations
The IASB has published new and revised standards and interpretations. These come into force later than2014 and are not early adopted in this financial statement. The impact of the introduction/amendment
of IFRS 9 as well IFRS 32 cannot yet be assessed with sufficient certainty or the expectations of the impact
is in line with the disclosures made in the annual report 2012. Based on a first assessment, the GroupManagement does not expect significant impacts on the consolidated financial statements from thesestandards and interpretations.

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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 dis­closure of contingent liabilities. Such estimates, which are based on the management’s best knowledge andbelief 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 regional sales organisation. The customer groups being OEMs, system integratorsand endusers are taken care by tailor-made product offerings and differentiated consulting levels.
The Interroll manufacturing units focus on the production of specific product ranges. Assembly units receivesemi-finished products from the manufacturing units and assemble a wide product range to serve theirlocal markets. The Interroll Research Center, which is centrally located, develops new application technologies and new products for all product groups. Centers of excellence which focus on specific product groups,
concentrate on the development of their assigned product portfolio.
The Group Management and the whole Interroll management structure are organized by functions(Overall Management, Products & Technology, Global Sales & Services, Marketing and Finance). The financial management of the Group by the Board of Directors is effected on one hand by turnover of the productgroups and geographical markets and on the other hand by the reporting of the consolidated financial
statements. The Group Management additionally assesses the achievement of financial and qualitative
targets of all legal entities.

Financial instruments
Interroll Group has only financial instruments classified as hierarchy 2 in line with IFRS 7. These financial
instruments include only foreign currency forward contracts. The valuation in hierarchy 2 is based on
factors which cannot be tracked to actively 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 as of 30 June 2013 (31 December 2012 CHF 0.2 million). The
valuation is based on the information received from the bank.

Adoption of IAS 19R (Restatement)
The material impacts of the adoption of IAS 19R on the Interroll Group’s financial reporting are as follows:–– Elimination of the corridor approach: Actuarial gains and losses (renamed to “remeasurements”) will berecognised immediately in other comprehensive income.
–– Calculation of pension costs: Annual costs for defined benefit plans comprise the net interest costs,
measured on the funded status applying the same discount rate for plan assets and obligations.
–– Past service costs are recognized immediately through profit or loss when they occur.
–– Risk sharing: The new provision on sharing risk between employees and the employer has various
impacts on the defined benefit obligation and the allocation of service costs.

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The adoption of IAS 19R led to the restatement of prior periods.
The impacts on the relevant positions in the income statement, statement of comprehensive income, balance
sheet, cash flow statement and statement of changes in equity for prior periods are shown below:

Consolidated statement of financial position
31.12.2012
Reported

Revaluation

31.12.2012
Restated

Property, plant and equipment

76 828–76 828Intangible assets

39 152–39 152Financial assets

890

–

890

in thousands CHF
ASSETS

2 118

720

2 838

Total non-current assets

Deferred tax assets

118 988720

119 708

Inventories

35 595–35 595

741

–

741

57 439–57 439Current tax assets
Trade and other accounts receivable
Cash and cash equivalents

14 109–14 109Total current assets

107 884–

107 884

Total assets

226 872720

227 592

EQUITY AND LIABILITIESShare capital

8 540

–

8 540

Share premium

20 427–20 427

Reserve for own shares–17 670––17 670

Translation reserve–44 319––44 319

Retained earnings

192 385–1 726

190 659

Total equity

159 363–1 726

157 637

Financial liabilities

5 025

–

5 025

Deferred tax liabilities

2 300

–

2 300
3 469

Pension liabilities

–

3 469

Provisions

6 345–1 023

5 322

Total non-current liabilities

13 6702 446

16 116

396

–

396

Financial liabilities

20

Current tax liabilities

9 068

–

9 068

Trade and other accounts payable

44 375–44 375

Total current liabilities

53 839–53 839Total liabilities

67 5092 446

69 955

Total liabilities and equity

226 872720

227 592

M i d -Y e a r R e p o r t 2 013 : N o t e s
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Consolidated statement of financial positionin thousands CHF

30.06.2012
Reported

Revaluation

30.06.2012
Restated

ASSETS
Property, plant and equipment

79 716–79 716

Intangible assets

40 066–40 066

Financial assets

934

–

934

1 057

439

1 496

Total non-current assets

Deferred tax assets

121 773439

122 212Inventories

47 073–47 073

801

–

801

58 532–58 532

Cash and cash equivalents

11 822–

11 822

Total current assets

118 228–

118 228

Total assets

240 001439

240 440

Current tax assets
Trade and other accounts receivable

EQUITY AND LIABILITIESShare capital

8 540

–

8 540

Share premium

20 461–20 461

Reserve for own shares–18 715––18 715

Translation reserve–44 202––44 202

Retained earnings

182 446–718

181 728

Total equity

148 530–718

147 812Financial liabilities

5 043

–

5 043

Deferred tax liabilities

1 611

–

1 611

–

2 112

2 112

Provisions

6 324

–955

5 369

Total non-current liabilities

12 9781 157

14 135

Financial liabilities

14 018–14 018Pension liabilities

Current tax liabilities

8 734

–

8 734

Trade and other accounts payable

55 741–55 741

Total current liabilities

78 493–78 493

Total liabilities

91 471

1 157

92 628

Total liabilities and equity

240 001439

240 44021

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In t e r r o ll G r o u p

Consolidated income statementin thousands CHF
Net Sales

Revaluation

Jan. – Jun.
2012
Restated

147 442–

147 442

Material expenses–63 726––63 726

Personnel expenses–45 00252–44 950

1 706

–

1 706

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

22

Jan. – Jun.
2012
Reported

Other operating expenses–25 476––25 476

Other operating income

4 562

–

4 562

Operating result before depreciation and amortisation(EBITDA)

19 50652

19 558Depreciation–5 242––5 242

Operating result before amortisation (EBITA)

14 26452

14 316

Amortisation–2 716––2 716

Operating result (EBIT)

11 54852

11 600Financing expenses

–161

–14

–175

Financing income

158

–

158

Financing result

–3

–14

–17

Result before income taxes

11 54538

11 583

Income tax expense–2 088–8–2 096

Result

9 457

30

9 487

M i d -Y e a r R e p o r t 2 013 : N o t e s
In t e r r o ll G r o u p

Consolidated statement of comprehensive incomein thousands CHF
ResultJan. – Jun.
2012
Reported

Revaluation

Jan. – Jun.
2012
Restated

9 457

30

9 487

O ther comprehensive income
Items that will not be reclassified to income statement
Remeasurements of pension liabilities

–

–971

–971

Income tax on items that will not be reclassified

–

202

202

Total items that will not be reclassified to income statement

–

–769

–769

–346

–

–346

–

–

–

Total items that may be reclassified subsequently
to income statement

–346

–

–346

Total other comprehensive income, net of taxes

–346

–769

–1 115

Total comprehensive income

9 111

–739

8 373

Jan. – Jun.
2012
Reported

Revaluation

Jan. – Jun.
2012
Restated

Result

9 457

30

9 487

Depreciation, amortisation and impairment

7 958

–

7 958

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

–15

–

–15

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

–1 233––1 233

Items that may be reclassified subsequently to income statement
Currency translation differences
Income tax on items that may be reclassified

Consolidated statement of cash flows

in thousands CHF

3

–

3

Income taxes

Financing result

2 088

–

2 088

Changes in working capital

3 036

–

3 036

Changes in provisions

122

–

122

–3 987––3 987

Income taxes paid
Personnel expenses on share based payments

838

–

838

Other non-cash (income)/expenses

–60

–30

–90

Cash flow from operating activites

18 207–18 20723

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Consolidated statement of changes in equity
in thousands CHF
Balance at 31 December
2011

Share
capitalShare
Premium

R eserve forown shares

Translation
reserve

R etained
earnings

Total
Equity8 540

26 630–21 018–43 856

172 989

143 2852020

173 009

143 305

9 458

9 458

Restatement
Balance at 1 January 2012

8 540

26 630–21 018–43 856

ResultOther comprehensive
income, net of taxes

–346

–

–346

Comprehensive income

–346

9 458

9 112

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

Share based paymenttransaction

–286

1 124

838

Changes in own shares,incl. tax effects

–289

1 179

890

20 461–18 715–

Reclassification

Balance at 30 June 2012

8 540

–44 202

Restatement

148 551

–739

–739

Balance at 1 July 2012

8 540

20 461–18 715–44 202

181 728

147 812

Balance at 31 December
2012

8 540

20 427–17 670–44 319

191 667

158 645

Restatement
Balance at 1 January 2013

8 540

20 427–17 670–44 319

Result–1 008–1 008

190 659

157 637

10 546

10 546

Other comprehensive
income, net of taxes

3 115

876

3 991

Comprehensive income

3 115

11 42214 537

Distribution from reserves
from capital contributions–6 520–6 520Share based paymenttransaction

–106

1 005

899

Changes in own shares,incl. tax effects

–34

4 455

4 421

13 767–12 210

Balance at 30 June 201324

182 4678 540–41 203

202 081

170 974

M i d -Y e a r R e p o r t 2 013 : N o t e s
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2.2 Segment information
Net sales by geographical markets
Turnover by product groups according to geographical markets is presented as follow:
Jan. – Jun.
2013

in %

Jan. – Jun.
2012

in %

Other Europe, Middle East, Africa

68 30645.8

66 89945.4

Germany

32 124

21.5

35 278

23.9

Switzerland

1 951

1.3

2 992

2.0

in thousands CHF

Total Europe, Middle East, Africa

102 38168.6

105 169

71.3

USA

23 377

15.7

20 822

14.2

Other Americas

5 671

3.8

7 634

5.2

Total Americas

29 04819.5

28 456

19.4

Asia incl. Australia

17 70911.9

13 817

9.4

Total Asia and Pacific

17 70911.9

13 817

9.4

Total Group149 138

100.0

147 442100.0

Material turnover with specific customers
Turnover is realised with more than 10 000 customers. There is no customer achieving a turnover of morethan 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

2013

in %

2012

in %

2011

in %

Drives54 59836.7

51 73435.0

50 332

36.7

Rollers

38 62325.9

41 66528.3

42 021

30.6

Conveyors & Sorters

26 06817.5

25 55917.3

21 781

15.9

Pallet- & Carton Flow

29 84920.0

28 48419.3

23 074

16.8

Total Group149 138

100.0

147 442100.0

137 208

100.0

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2.3 Notes to the consolidated statement of financial position
Consolidated statement of financial position
Total assets increased compared to the year end 2012 by CHF 21.1 million. Particularely due to an increasein liquid funds, the net working capital increased by CHF 12.1 million to CHF 66.2 million. During theperiod under review trade and other accounts payable increased by CHF 9.2 million to CHF 63.0 million.

Investments/capital expanditures
Non-current assets decreased by CHF 0.2 million to CHF 119.5 million due to depreciations and amor­
tisations being higher than capital expenditures. Major single investments during the period under review
include the new Atlanta facility. Capital expenditures into intangible assets in essence are for the further
development 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 impairments.

Net financial assets
Net financial assets as per end of the reporting period increased by CHF 8.8 million compared to yearend 2012. That is to say short term receivables and liquid funds exceed liabilities by CHF 17.5 million.
The increase in free available funds reflects the cash flow resulting from business operations.
The total credit lines available as per end of the reporting period amount to CHF 80.8 million, of which
CHF 75.5 million remain unused (end of 2012 CHF 77.4 million). From these credit lines CHF 40.0 million
are committed until first half 2015 under condition that debt covenants are complied with.
The debt covenants that have not been changed since year end 2012 have always been complied with during
the interim period as well as during the previous year period.

EquityEquity increased by CHF 13.3 million to CHF 171.0 million compared to the previous year end. The dis­tri­
bution of reserves from capital contributions of net CHF 6.5 million took place on 17 May 2013 andhas been debited accordingly to the equity. The equity ratio as per end of the interim period corresponds
to 68.7 % (year end 2012: 69.3 %).

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2.4 Notes to the consolidated income statement
Net sales
Net sales in reporting currency have increased by 1.2 % to CHF 149.1 million compared to the previous
year’s period. Excluding positive foreign currency effects the increase would have been changed into adecrease of 0.2 %. The positive translation effects mainly result from Euro and Thai Baht.

Earnings before interest and taxes (EBIT)
The operating profit EBIT rised from CHF 11.5 million in the previous year period to CHF 13.1 million in
the current interim period which results in a margin of 8.8 % (previous year period: 7.9 %). Projects initiatedlast year regarding the optimisation of group wide strategic purchasing bear already fruits in form of anenhanced gross margin. Increased amortisations compared to previous year reflect the increased number ofentities working with the ERP platform SAP.

Financing result and Income tax expense
Net financial expenses of CHF 0.5 million include net financial interest expenses of CHF 0.3 million as
well as foreign exchange losses. Due to its decentralised structure the Interroll Group is generally not much
exposed to currency fluctuations.

Financial result and Income tax expense
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 realizable losses carried forward. In the period under review tax charges resulting from previous
years of CHF 0.5 million were incurred. A deferred tax asset of CHF 0.8 million could be 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 CHF 10.5 million (previous year: CHF 9.5 million).

27

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2.5 Notes to the consolidated statement of cash flows
Cash flow from operating activities
The cash flow from operating activities amounts to CHF 17.6 million (previous year: CHF 18.2 million).

Cash flow from investing activities
For investments into buildings, machinery and the SAP ERP system net CHF 5.9 million were spent,compared to net CHF 3.3 million last year (after the disposal gain on sales of property in Spain).

Cash flow from financing activities
The payment from reserves from capital contribution for the net amount of CHF 6.5 million was processedon 17 May 2013 and is therefore included in the cash flow statement. Sales of own shares increased cash by
CHF 4.4 million.

2.6 Notes to the consolidated statement of changes in equity
Capital contributions
The decision of the ordinary general shareholder meeting from 10 May 2013 to distribute CHF 8 per sharefrom reserves from capital contributions was executed on 17 May 2013.

Option plan
12 711 options from the option plan were exercised in the period under review. In the previous year period
no options were exercised. No additional options were attributed.

Assignment of shares
Shares assigned to members of the management in the amount of CHF 0.9 million (previous year:
CHF 0.8 million) were expensed.

28

M i d -Y e a r R e p o r t 2 013 : N o t e s
In t e r r o ll G r o u p

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 amaterial effect on the presentation of its financial position as at 30 June 2013. 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 resultin 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.

Changes to the scope of consolidation in July 2013
– New Companies
Interroll’s business activities in Italy are conducted by the newly formed Interroll Italia S.r.l. in Rho
near Milan since June 2013. Previously, Interroll was represented in the Italian market by Rulmeca.
The new company will be consolidated from 1 July 2013. The effects of the establishment of this newcompany will have no material impact on the Interroll Group’s consolidated financial statementsin the 2013 reporting year.

– Acquisitions
As per 10 July 2013 the Sales & Purchase Agreement to acquire the Portec International Group became
effective. In excess of 60 000 installations ensure that Portec’s curve conveyors are among the leading
sector products for several decades. They are mainly used in airports, distribution centres and by courier
and postal services providers. Portec essentially delivers services to its customer base from its works
in the USA, complemented by a joint venture in Hong Kong in which Portec has a 60 % stake. The Portec
International Group achieved a double-digit operating profit margin in 2012 and sales totalling around
USD 20 million. Portec is headquartered in Cañon City, Colorado, where around 100 employees
are based. The seller and ownergroup was owned by Incline Equity Partners, a private equity firm withregistered office in Pittsburgh, Pennsylvania. The price for acquiring the companies amounted to
USD 26.9 million. The Interroll Group is currently in the process to prepare the opening balance andthe purchase price allocation. Therefore the Group does not disclose the opening balance andpurchase price allo­-­cation for the mid-year report.

Contingent liabilities
There were no contingent liabilities in the period under review.

Financial Calendar
24 January 2014

Sales and order income results for the business year 2013

21 March 2014

Press conference for the business year and publication of Annual Report 2013

9 May 2014

General assembly for the business year 201329

M i d -Y e a r R e p o r t 2 013 : N o t e s
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30Impressum
Publisher
Interroll Holding AG
Via Gorelle 36592 Sant’Antonino, Switzerland
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

Concept and coordination:
Interroll Holding AG, Investor Relations

Layout/DTP:
Victor Hotz, Lasting Impressions In Print, ­SteinhausenThis interim report is also available in German.
The German version is binding.