HALF-YEAR REPORT 2015

INSPIRED BY
BY EFFICIENCYEFFICIENCYKEY
FIGURES01.01.–

01.01.–

30.06.2015

30.06.2014

Changes in %Total incoming orders

206.3

172.9

19.3

Drives

53.2

56.0

–5.0

Rollers

48.3

39.4

22.6

Conveyors & Sorters

43.6

33.5

30.3

in CHF million, if not stated differently

Incoming orders / net sales

Pallet & Carton Flow

26.2

28.2

–7.1

Total net sales

171.3

157.1

9.1

EBITDA

26.5

18.2

45.5

in % of net sales

15.5

11.6

EBITA

21.4

12.8

in % of net sales

12.5

8.1

EBIT

17.5

8.8

in % of net sales

10.2

5.6

Net profit

12.8

7.1

in % of net sales

7.5

4.5

Profitability

67.8
99.7
78.8

Cash flow
Operating cash flow

11.6

5.0

in % of net sales

6.7

3.2

Free cash flow

–0.6

0

in % of net sales

–0.4

0

Total investments / capital expenditure

12.3

6.2

Balance sheet

129.9
–100
98.4

30.06.2015

31.12.2014

Total assets

282.3

278.2

1.3

Goodwill

16.0

17.6

–9.1

Net financial assets (debts)

20.6

23.9

–13.8

Equity

192.3

200.3

–4.0

Equity ratio (equity in % of assets)

68.1

72.0

Return on equity (in %)

8.9

9.9

-10.1

36.7

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

13.4

9.8

Average number of employees

1795

1675

7.2

Net sales per employee (in thousands CHF)

191

200

–4.5

Productivity (added value / total personnel expenses)

2.04

1.86

9.7

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8OVERVIEW BY PRODUCT GROUPS10
OVERVIEW BY REGIONS14

FINANCIAL STATEMENTS OF INTERROLL GROUP

17

CONSOLIDATED STATEMENT OF FINANCIAL POSITION17
CONSOLIDATED INCOME STATEMENT18
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME19
CONSOLIDATED STATEMENT OF CASH FLOWS

20

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY21
NOTES TO THE CONSOLIDATED 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 201627
CONTACT

27

IMPRINT27

ABOUT INTERROLL

4

ABOUT
INTERROLL
Interroll Group is a worldwide leading 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 & S­ orters”
and “Pallet & Carton Flow” to around 23,000 customers around the world.
Core industries are courier, parcel, express and postal services, airports, food processing as well as distribution­centers. Our products are in daily use at amongst others well-known global brands such as Amazon, Bosch, CocaCola, Coop, DHL, FedEx, Peugeot, PepsiCo, Procter & Gamble, Siemens, Walmart and Yamaha.
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 networkof 31 companies with around 1,800 employees. The company was founded in 1959. Since 1997, Interroll Grouphas been listed on the SIX Swiss Exchange and included in the SPI index.
www.interroll.com

INTERROLL PRODUCT GROUPSROLLERSDRIVESCONVEYORS & SORTERS

PALLET & CARTON FLOWINTERROLL ON THE CAPITAL MARKET

5

INTERROLL ON
THE CAPITAL MARKET
Share price performance Interroll
25%
20%
595

15%

CHF

10%
5%

525.50
CHF

Interroll share
Share price at 31.12.2014: CHF 525.50
Share price at 30.06.2015: CHF 595.–

0%–5%

SPI/SXGE

–10%
–15%
–20%
January

February

March

April

Mai

June

INTERNATIONAL STOCK MARKETS­CHARACTERISED BY HIGH VOLATILITY
The performance of the stock markets in the first halfof 2015 was characterised by the SNB’s (Swiss National
Bank) decision to abandon the euro-franc exchange rate,
the uncertain situation in Greece and the Ukraine crisis.
Following a significant drop in share prices after the
SNB’s decision was announced, the Swiss stock market
had recovered positively once again and even reached
a new high for the year in April. However, it recordeda loss at the end of the first half of the year due to theongoing unsuccessful negotiations with Greece.
INTERROLL SHARE POSTS POSITIVEPERFORMANCEIn the first half of 2015, Interoll shares showed a strong
upward trend following their good performance in
2014. The share closed at CHF 595.00 on 30 June 2015
and was thus 13.2 % higher than at the end of 2014
(CHF 525.50).

This means the Interroll share even outperformed the
SPI Index, which was at 8,918 points on 30 June 2015,
in other words only 0.7 % higher than the closing pricein 2014 (8,857 points). At 8,780 points on 30 June 2015,
the SPI Index was –2.3 % lower than its closing price in2014 (8,983 points).

REPORT BY THE BOARD OF DIRECTORS AND GROUP MANAGEMENT

6Dear Shareholders, Customers and Business Partners,

STRONGLY SUCCESSFUL
INTO THE FUTURE BY
FOCUSING ON CUSTOMERSAND OFFERING INNOVATIVE
SOLUTIONSPAUL ZUMBÜHL (left)
CEO
KURT RUDOLF (right)
Chairman of the Board of Directors

The Interroll Group is continuing its growth strategy
and has gotten off to a good start to the new financial
year 2015 with considerable growth rates in orderintake and sales. All regions developed very positively
in the first half of the year. The distribution of sales
in the three regions has continued to improve and weare generating a higher share of our turnover outside
Europe. Demand for our products is high all over theworld. For example, after receiving an order for six
crossbelt sorters for Brazil Post in 2014, we received
another order for four more sorters via the system
integrator NPI in April 2015.
Our order intake increased from CHF 172.9 million in
the first half of 2014 to CHF 206.3 million in the firsthalf of 2015. Sales in local currency rose by 18.5 %. Partof this sales growth was eliminated due to the significant translation risk from converting ­revenues primarily from the euro zone into the reporting ­currency
CHF. Consolidated sales therefore amounted to CHF
171.3 million, an increase of 9.1 % compared to thefirst half of 2014 (CHF 157.1 million).
We also increased our EBITDA by 45.5 % from
CHF 18.2 million to CHF 26.5 million. The EBITDA
margin was 15.5 % (previous year: 11.6 %). EBIT of
CHF 17.5 million in the first half of 2015 was 99.7 %higher than in the same period of the previous year
(CHF 8.8 million).
During the last financial year, we reported extensively
on our strategic non-recurring expenses and investments, which we made mainly in the first half of 2014.
Because we did not incur these one-time expenses again
this year and managed to increase our sales and our
productivity quite significantly in the first half of 2015,
we succeeded in increasing our net profit by 78.8 % to
CHF 12.8 million (previous year: CHF 7.1 million). We
expect the increase in net profit to be slightly lower inthe second half of 2015 because less one-time effects
from the previous year will fall away.
The new modular conveyor platform that we launchedquite successfully in Europe in 2014 is attracting agreat deal of interest among our customers and wehave already received several lucrative orders. Now weare planning to gradually launch the platform in Asiaand in the USA.

REPORT BY THE BOARD OF DIRECTORS AND GROUP MANAGEMENT

7“We reached significant higher
sales and further increased our
productivity.”

By acquiring Portec, the leading US manufacturer ofbelt curves, we expanded our global product line in thearea of highly efficient belt curves and other c­ onveyor
solutions in 2013. In 2015, we started manufac­turingand marketing this reliable, robust and globally­recognised solution, that has already been installedover 80,000 times, in Europe as well. This means wewill be able to supply our customers in this region withthis proven solution more quickly in the future.
We continue to work on developing and improving
our products and have extended our controller ­family
for use with RollerDrive to include MultiControl. Thus
we are able to offer our customers the appropriate­control of the conveyor that fits their exact needs forany conveyor task.
Our continued strong performance is also reflected in
the performance of our share, which rose by 13.2 % in
the first half of 2015. Interroll’s share price was CHF
595.00 on 30 June 2015.
We will continue to do everything we can to continue
writing Interroll’s success story this year too. With ourclear focus on innovations, we will strive to meet thehigh demands that our customers place on key products and solutions in the area of internal logistics andthus further extend our leading global market andtechnological position.

Our new building in Baal / Hückelhoven, Germany, is
proceeding according to schedule. With the relocationof the Interroll Research Center, the Interroll Academy
and the Interroll Coating Center (rubber coating) to
the site in Hückelhoven in the fall of 2015, we will beable to optimise our own internal logistics and intermesh development and production to an even greater
extent in the future.
We would like to thank all of our employees for their
dedication in contributing to Interroll’s positive development. And we also thank our customers, suppliers,
financiers and, of course, you, our dear shareholders,for your trust in our company.
Despite the current uncertainties in the economic andpolitical environment – more specifically, the situation in Greece – we are confident that 2015 will be a
successful year for Interroll and that we will be able
to develop our company sustainably and ­successfully.
This is because we think long-term and act in a
future-oriented manner. But also because we are capable of making changes without losing our roots. Our
company culture is dedicated to growth. With ourinternal programme "Culture for Growth" we want toboost employee identification with Interroll and and tofurther improve competitive distinction.
We would be pleased if you would continue to benevolently support the company on this path.
Sant’Antonino, 7 August 2015

Kurt Rudolf
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
137.2

2011

147.4

149.1

157.1

2012

2013

2014

171.3

2015

EBIT AND EBIT MARGIN
13.2
9.6 %

2011

11.6
7.9 %

2012

13.1
8.8 %

2013

17.5
10.2 %

143.3
59.9 %

147.8
61.5 %

19.6
13.3 %

2011

2012

21.4
14.4 %

2013

2014

9.9

9.5

2012

2013

2014

26.5
15.5 %

2015

12.8

10.5
7.1

2015

2011

2012

2013

2014

2015

OPERATING
CASH FLOW
186.1
70.1 %

18.2

192.3
68.1 %

17.6

5.8

2011

18.2
11.6 %NET PROFIT

8.8
5.6 %

EQUITY AND
EQUITY RATIO
170.9
68.7 %

20.5
14.9 %

2014

2015

2011

11.6

5.0

2012

2013

2014

2015

OVERVIEW OF FINANCIAL POSITION, EARNINGS AND CASH FLOWS

9ORDER INTAKE AND SALES DEVELOP VERYPOSITIVELY
In the first six months of 2015, order intake increasedby 19.3 % to CHF 206.3 million (previous year: CHF
172.9 million). Organic growth of 17.6 % was achieved.
Adjusted for smaller divestments, the acquisition of Pert
in China in June 2014 contributed 1.7 % to this increase.
In local currency, order intake rose sharply by 28.1 %and sales by 18.5 %. Part of this sales growth was eliminated due to the significant translation effects fromconverting revenues primarily from the euro zone
into the reporting currency CHF. While the currencytranslation effects from Europe were extremely negative, the currency developments in the dollar and theemerging countries zone were slightly positive.
Despite the significant translation effect, consolidated
sales increased to CHF 171.3 million and thus by
9.1 % in the reporting currency CHF compared to the­previous year (CHF 157.1 million). This increase can be
attributed to both organic sales growth of 7.3 % and to
the successful integration of the acquisition Pert, which,adjusted for smaller divestments, amounted to 1.8 %.
PARTICULARLY STRONG INCREASE­IN ­PRO­FIT ALSO DUE TO NON-RECURRING
EXPENSES IN 2014
In 2014, we realised significant strategic non-recurring
expenses and investments to foster long-term growthand sustained profitability. The costs of launching themodular conveyor platform and consolidating plants
in the United States as part of our acquisition of Portec
in 2013 and the new Center of Excellence in Atlanta
were mainly incurred in the first half of the year andthus had a negative impact on our results.
Despite the significant negative currency effects
referred to above, but bolstered by significantly higher
sales as well as the further increase in productivity in2015 and the fact that the one-time expenses in 2014
were no longer incurred, profit before interest, taxes,
depreciation and amortisation (EBITDA) increased by
45.5 % to CHF 26.5 million in the first half of 2015 (previous year: CHF 18.2 million). The EBITDA margin was
15.5 % (previous year: 11.6 %).
Earnings before interest and taxes (EBIT) also
increased compared to the previous year. After CHF
8.8 million in the previous year, this figure was CHF
17.5 million in the first half 2015. The EBIT margin
was 10.2 % (previous year: 5.6 %).
Compared to last year, this year’s result increased­significantly from CHF 7.1 million to CHF 12.8 million.

SOLID BALANCE SHEET DEVELOPMENT
The balance sheet increased as of 30 June 2015 to CHF
282.3 million and was thus 1.3 % above the level at theend of 2014 (CHF 278.2 million). This increase reflects
the strong growth of the Group despite negative translation effects. For example, significant assets in the eurozone were converted into the reporting currency CHF
at a lower exchange rate than they were a year ago.
Equity amounted to CHF 192.3 million on 30 June 2015
and was thus slightly lower than it was on 31 December 2014 (CHF 200.3 million). This decline resulted
primarily from the currency translation differences.
The equity ratio was thus 68.1 % compared to 72.0 %on 31 December 2014.
Net financial assets per 30 June 2015 amounted to
CHF 20.6 million and remained strongly in the positive range thereby supporting the group's long term
debt-free growth.
CASH FLOW REFLECTS GROWTH ANDINVESTMENTS
Receivables from customers and inventories bothincreased in the first half of 2015 due to the high sales
in local currency and the planned gradual introduction of the modular conveyor platform in China andthe USA.
Operating cash flow increased to CHF 11.6 million­(previous year: CHF 5.0 million) due to higher net profit.
The investments of gross CHF 12.3 million (previous
year: CHF 6.2 million) pertained to extensions andrenewals of our machinery, the SAP project and mainly
the new building in Baal/Hückelhoven, Germany.
The higher investments compared to the previous
year resulted in a negative free cash flow of CHF-0.6 ­million for the first half year (previous year: CHF
0.03 million).

OVERVIEW BY PRODUCT GROUPS10OVERVIEW BY
PRODUCT GROUPS
All product groups have performed well in local currency terms.
­However, due to the significant negative translation effects as a resultof conversion of sales primarily from the euro zone to the reporting­currency CHF, part of our sales growth has been eliminated in the individual product groups.

PRODUCT GROUP
DRIVESThe Drives product group comprises our driven­conveyor rollers (24 volt RollerDrive), including thecontrol systems, and our drum motors. Due to currency translation effects, consolidated sales in thereporting currency CHF totalled CHF 53.2 million
in the first six months of 2015 (previous year: CHF
56.0 million). In local currencies we were able to reacha low double-digit growth rate.
Order intake rose in Group currency to CHF 57.2
­million (previous year: CHF 56.9 million), however.
24 Volt RollerDrive
Our motor-driven 24 volt conveyor rollers are characterised by low energy consumption, reductions innoise and their easy installation and maintenance. We
thus help our customers to remain competitive andorganise their internal logistics processes efficiently.
Customers around the world appreciate the advantages
that 24 volt technology offer. We were able to increase
order intake in this product group quite significantly in

Configuration of sensor or RollerDrive properties
takes place using either a web user interface,
the SPS programming software or the Interroll TeachIn procedure (automatic configuration and addressing).
This guarantees a quick and easy start up on-site.

all three regions and are observing that consciousnessof using drives that save energy is growing also in theAmericas and the Asia-Pacific region.
We offer our customers the appropriate control of theconveyor for every application that meets their exact
requirements. In June 2015, we expanded our control
family for use with the RollerDrive EC 310 to include
Interroll MultiControl, a network card for PROFINET,
EtherNet/IP and EtherCAT. There is no need to set up an
additional sensor or actuator level due to the direct integration of sensors and RollerDrive in the field bus level.
Drum Motors
Our asynchronous and synchronous drum motors are
extremely durable, reliable and low on maintenanceand yet also known for their extremely high energy
efficiency. Because the entire drive unit is located insidethe drum capsule, they take up less space and meet therequirements of the international protection classes
IP66 and IP69k. Our asynchronous drum motors meetthe material requirements that the USDA/FDA andthe EU ordinance EG 1935/2004 place on use in thearea of food. Our synchronous drum motor is the only
one that has been certified for use in hygienic industrial applications by the European Hygienic Engineering & Design Group (EHEDG).
The increasing demand for our synchronous drum
motors has resulted in a gratifying increase in production volume at our Center of Excellence in Baal/Hückelhoven, Germany.

OVERVIEW BY PRODUCT GROUPS

11

PRODUCT GROUPROLLERSOur product group Rollers includes all non-driven
conveyor rollers. Consolidated sales for this productgroup amounted to CHF 48.3 million, significantly
higher than in the previous year’s figure of CHF
39.4 million (+22.6 %).
Consolidated order intake amounted to CHF 48.1
­million (previous year: CHF 41.1 million).
The demand for our high-quality conveyor rollers was
extremely positive in all regions. In Eastern Europe,for example, we were able to achieve growth in orderintake of close to 60 %. The Americas region increased
its order intake quite significantly by almost 30 % due toadditional outsourcing activities of various customers.
The more than 500 million conveyor rollers we have

manufactured make us the leading supplier in this area.
Thanks to our shortest delivery times, our ­customers
can remain flexible when it comes to ­purchasing andmust maintain only low stock levels. Our conveyor
roller manufacturing is designed to accommodate verysmall quantities and approximately half of our order
positions in Wermelskirchen have a lot size of less than
10 units. Our customers are thus able to react to shortterm project changes in a flexible and efficient manner.
In March 2015, we launched our customer programme“Rolling on Interroll.” Medium-sized plant and machinery construction companies in particular are struggling with ever-growing competition, higher technical requirements and ever tighter project deadlines
in today's market environment. Here, they rely on thedelivery reliability and product quality that Interroll
offers. And this is now being expressed in the quality
seal “Rolling on Interroll.”This strategic loyalty programme underscores Interroll’s business model
as a neutral provider of key products for internal logistics with open
platforms and interfaces and as a strong partner for plant and machinery
construction companies worldwide.

OVERVIEW BY PRODUCT GROUPS

12

PRODUCT GROUPCONVEYORS & SORTERS
Our Conveyors & Sorters product group encompasses
sorters and modules that are used in key positions in
the field of internal logistics. These include crossbelt
sorters, belt curves, roller and belt conveyors, but also
the modular conveyor platform. At CHF 43.6 million,
consolidated sales were 30.3 % higher in the first halfof 2015 than in the previous year (CHF 33.5 million).
Consolidated order intake amounted to CHF 70.6 million (previous year: CHF 47.8 million). This includes
four of the ten sorters from the contract for Brazil Post.

In May 2014, we introduced our modular conveyor
platform to the European market. Customers realise
what advantages our platform offers when it comes tomanaging fluctuations in the flow of goods, managing
changes in order structures and product assortments
both quickly and efficiently. We have already received
lucrative orders in Europe and expect the order­situation to continue to develop positively. Now Asiaand the US will follow successively where customers
have also already shown great interest in this innovative platform. The platform is characterised by highquality, flexibility, energy efficiency and an attractive
design. The iF Design Award that we received in 2015shows that attractive industrial design and high-quality
technology are not mutually exclusive.
The Interroll Portec belt curve, which has already been
installed over 80,000 times, is a belt conveyor solution
for medium and heavy load. We have been manufacturing and marketing this in Europe as well since2015 and can therefore deliver it more quickly to our­customers in this region.
Thanks to increasing automation in the Asia-Pacificregion, we managed to grow significantly by increasing
our order intake in this region by over 30 %. S.F. Express
in China views Interroll as a strategic partner for key
elements of conveyor systems and recently signed aframework contract for Interroll Portec belt curves. S.F.
Express will therefore also specify Interroll Portec belt
curves in its order specifications in the future.

Since the acquisition of Portec, USA, in 2013
respectively Pert, China, in 2014 the belt curvebusiness has been developing significantly
better than expected.

The Americas region also developed very positively inthe first half of 2015. We received several large orders
there. For example, Brazil Post placed an additional
order for four crossbelt sorters via the American system
integrator NPI after the company had already ordered
six sorters in November 2014.

OVERVIEW BY PRODUCT GROUPS

13

PRODUCT GROUPPALLET & CARTON FLOWThe Pallet & Carton Flow product group includes ourdynamic storage solutions for pallets and parcel packaging based on the FIFO (First In, First Out) or LIFO
(Last In, First Out) principle. Consolidated sales in thefirst six months of 2015 amounted to CHF 26.2 million(previous year: CHF 28.2 million).
Consolidated order intake rose to CHF 30.4 million(previous year: CHF 27.2 million).
Flow storage utilises the effect of inclined planes.
Therefore there is no need to supply power to the drive
systems. Studies show the high energy efficiency andenvironmental performance of flow storage with anaverage payback of two to three years.

With our expertise, we help system integrators and end customers
to overcome challenges in the planning of distribution warehouses
with fast moving products and a high return on investment.

In the first half of 2015, we were able to take interesting orders, particularly in Asia-Pacific, and have grown
extremely strongly in the region with respect to orderintake. Our customer Nongshim Engineering from
Korea, for example, will be equipping a new distribution
center in China with an Interroll flow storage system.
We have also realized some interesting projects in
Europe. For example, Prix Quality, one of the biggest
discounters in Northern Italy, has equipped its main
distribution warehouse via a systems integrator withan Interroll FIFO solution as part of its continued
expansion. This resulted in savings in a number ofareas, especially with regard to space, but also in thearea of energy consumption by completely overhauling its internal logistics.

OVERVIEW BY REGION

14OVERVIEWBY REGIONPOSITIVE DEVELOPMENT IN THE THREE­OPERATIONAL REGIONS
We continue to pursue our strategy of internationalisation by moving into new markets and attracting newcustomers. Europe accounted for roughly 61 % of our
total revenue and Asia-Pacific 13 %. In the Americas,
this figure increased to 27 %.

EUROPE–MIDDLE EAST–AFRICAPOSITIVE DEVELOPMENT OF
THE EMEA REGION
The significant negative translation effects as a resultof the conversion of sales primarily from the eurozone to the reporting currency CHF have eliminateda portion of our sales growth in the EMEA region.
­Nevertheless, our consolidated sales developed positively in this region in the first half of 2015. At CHF
104.2 million, they were 3.2 % higher than in the­previous year (CHF 101.0 million). The sales increasein local currency was 18.9 %.
Sales in local currency developed quite differently inthe various European regions. In the German-speaking
countries, the Benelux region and France, Interroll grewsolidly. In Italy and Eastern Europe, we grew strongly.
Turkey and South Africa, on the other hand, have­gotten off to a somewhat slow start and did not perform
as planned.
We are continuously expanding our activities in thearea of service. For example, we established a repair
service for drum motors in Spain and have invested ina service center of our own and additional staff.

Interroll invested in its own repair service
for drum motors in Spain in 2015.

+3.2 %SALES IN EMEA WERE SIGNIFICANTLY
AFFECTED BY NEGATIVE TRANSLATIONEFFECTS. NEVERTHELESS THEY AREDISTINCTLY IMPROVED.

We now also manufacture and market the Interroll
Portec belt curve in Europe and can therefore deliver
it faster to our customers in this region. This reliable,robust and globally recognised belt curve has alreadybeen installed over 80,000 times all over the world.

OVERVIEW BY REGION

15AMERICASSALES DEVELOP STRONGLY IN THE AMERICAS
The Americas region recorded consolidated sales
growth of 22.4 % or 20.2 % in local currencies in thefirst half of 2015. Consolidated sales amounted to CHF
45.4 million (previous year: CHF 37.1 million).

The expansion of the Interroll Portec site in Cañon
City, Colorado, as a regional Center of Excellence isprogressing rapidly and with the introduction of theInterroll production system, we were able to increase
productivity at this location already noticeably.

We are also seeing a good development in Brazil.
After signing a framework agreement with the Brazil
Post together with the US-based system integrator
National Presort L.P. (NPI) to supply a total of six sorters from 2015 to 2017 in November 2014, we received
an additional order for four more cross belt sorters in
April 2015. Due to the size of this order, the regional
Center of Excellence in Atlanta is working together
very closely with the global Interroll Center of Excellence for Subsystems in Sinsheim, Germany.

The installation work on a new, state-of-the-art automated system for manufacturing carton flow tracks iscurrently being carried out at our Center of Excellencein Atlanta, Georgia. Production is expected to begin in
the fall. This additional capacity and our fast delivery
times will help us to continue developing the North
American market for Carton Flow very quickly.

+22.4 %THE AMERICAS REGION WAS ABLETO SHOW A STRONG SALES INCREASE.

Interroll crossbelt sorters are installed at CEP (courier-express-parcel)
providers all over the world.

OVERVIEW BY REGION

16

ASIA-PACIFICSALES DEVELOPED POSITIVELY IN THE
ASIA-PACIFIC REGION
The Asia-Pacific region continues to be of great
importance to our growth potential. The demand for
products and thus also for the appropriate internal
logistics remains high. Consolidated sales in the firsthalf of 2015 amounted to CHF 21.7 million (previous
year: CHF 19.0 million). This equates to an increase of
14.7 % or 12.6 % in local currencies.
We were able to strengthen our market position evenfurther in Asia-Pacific in the first half of 2015. We
not only received interesting follow-up orders fromlong-standing customers such as China Post or SF
Express, but were also able to expand our customer base.

Order intake in the Southeast Asian region rose byaround 28 % showing that our greater expansion in theregion is bearing fruit. We received some interestingorders especially in Pallet & Carton Flow as well as
Conveyor Rollers.
The Nongshim Group, a leading Korean manufacturer
in the food industry in Asia, is building a new bottling
facility for mineral water in China and will equip the
new distribution center Baeksansu with Pallet Flow
modules and the appropriate safety equipment fromInterroll through its own system integrator Nongshim
Engineering.
We will officially launch the modular conveyor platform
in Asia at CeMAT Asia in Shanghai in O
­ ctober 2015.
We expect our innovative solution to meet with considerable interest in this region too. The feedback that wehave received from customers and partners who visited
our booth at CeMAT in Hannover in 2014 makes usvery optimistic.
We also expect the boom in e-commerce and food processing in China to continue and ensure a continued
high demand. Compared to the previous year, our sales
in China have increased by around 29 %. We are alsoseeing a very positive trend in Korea. In Japan, however, we were not yet able to meet planned expectations.

+14.7 %
ASIA-PACIFIC DEVELOPEDPOSITIVELY COMPAREDTO THE PREVIOUS YEAR.

The Interroll Safety Separator and the patented
Magnetic Speed Controller are being used successfully
all over the world.

STATEMENT OF FINANCIAL POSITION

17

1

FINANCIAL INTERIM STATEMENTS OF INTERROLL GROUP

1.1

Consolidated statement of financial positionin thousands CHF

30.06.2015

in %31.12.2014

in %ASSETS
Property, plant and equipment

83,04085,969Intangible assets

44,14649,874

Financial assets

580

626

Deferred tax assets

3,281

4,150

Total non-current assets
Inventories

131,04746.4

46,203

140,619

Current tax assets

1,057

457

Trade and other accounts receivable

78,26070,428Cash and cash equivalents

50.6

42,27325,691

24,380Total current assets

151,211

53.6

137,538

49.4

Total assets

282,258

100.0

278,157

100.0

EQUITY AND LIABILITIESShare capital

8,540

Share premium

6,401

8,540
6,416

Reserve for own shares–1,415–2,008Translation reserve–61,298–41,104

Retained earnings

240,059

228,486

Non-controlling interests
Total equity

192,28768.1

200,330

Financial liabilities

144

153

Deferred tax liabilities

3,471

5,286

Pension liabilities

7,430

5,766

Provisions

6,148

Total non-current liabilities

17,193Financial liabilities

4,903

72.0

6,000
6.1

17,205

6.2

317

Current tax liabilities

9,042

8,029

Trade and other accounts payable

58,83352,276

Total current liabilities

72,77825.8

60,622

Total liabilities

89,971

31.9

77,82728.0

Total liabilities and equity

282,258

100.0

278,157

100.0

21.8

CONSOLIDATED INCOME STATEMENT

18

1.2

Consolidated income statement

Jan.–Jun.

Jan.–Jun.

2015

in %

2014

in %

Variancein %Net Sales

171,338100.0

157,068

100.0

14,270

9.1

Material expenses–70,412–41.1–67,956–43.3

Personnel expenses–51,303–29.9–50,551

–32.2

8,294

45.5

8,652

67.8

8,761

99.7

in thousands CHF

Increase / (Decrease) in workin progress, Finished products
and own goods capitalised

3,636

2.1

3,194

2.0

Other operating expenses–27,500–16.1–28,271

–18.0

775

0.5

4,756

3.0

and amortisation (EBITDA)

26,534

15.5

18,240

11.6

Depreciation–5,113–3.0–5,471–3.5

21,421

12.5

12,769

8.1

Other operating income
Operating result before depreciation

Operating result before amortisation(EBITA)
Amortisation–3,872–2.3–3,981–2.5

Operating result (EBIT)

17,549

10.2

8,788

5.6

Financing expenses

–12

–0.0

–220

–0.1

Financing income

169

0.1

371

0.2

Financing result

157

0.1

151

0.1

6

4.0

17,706

10.3

8,939

5.7

8,767

98.1

Income tax expense–4,929–2.8–1,793–1.1

Result12,777

7.5

7,146

4.5

5,631

78.8

116

0.1

0

12,777

7.5

7,030

4.5

5,747

81.7

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

15.05

8.27

6.78

82.0

Diluted earnings (result) per share

15.05

8.27

6.78

82.0

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

19

1.3

Consolidated statement of comprehensive incomein thousands CHF

ResultJan.–Jun.

Jan.–Jun.

2015

2014

12,777

7,146–1,485–933

Other income
Items that will not be reclassified to income statement
Remeasurements of pension liabilities
Income tax
Total items that will not be reclassified to income statement

281

185

–1,204–748

Items that in the future may be reclassified subsequently to income statetement
Currency translation differences–20,194–629

Total items that in the future may be reclassified subsequently to income statetement–20,194–629

Other income–21,398–1,377

Comprehensive income–8,621

5,769–8,621

5,653

Result attributable to:–– Non-controlling interests–– Owners of Interroll Holding Ltd.

116

CONSOLIDATED STATEMENT OF CASH FLOWS

20

1.4

Consolidated statement of cash flows

Jan.–Jun.

Jan.–Jun.

2015

2014

Result12,777

7,146

Depreciation, amortisation and impairment

8,985

9,452

88

–633

in thousands CHF

Loss/(gain) on disposal of tangible and intangible assets
Financing result, net

–157

–151

Income taxes

4,929

1,793

Changes in inventories–7,986–3,962

Changes in trade and other accounts receivable–15,996–10,670

Changes in trade and other accounts payable

11,7805,483

Changes in provisions, net

842

329

–4,139–5,313

Personnel expenses on share-based payments

972

926

Other non-cash expenses/(income)

–543

626

Cash flow from operating activities

11,552

5,026

Acquisition of property, plant and equipment–11,106–5,492Acquisition of intangible assets–1,189–662

Acquisition of financial assets

6–18

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

64

1,074

Settlement of loans receivable–944Interests received

33

60–12,201–4,994

–649

32

-

–7,494

Income taxes paid

Cash flow from investing activities
Free cash flow
Distribution from reserves from capital contributions
Acquisition of own shares

–394

–375

Proceeds from financial liabilities

4,723

4,970

Repayment of financial liabilities

–80

–52

Interests paid

–15

–47

Cash flow from financing activities

4,234–2,998Translation adjustment on cash and cash equivalents–2,274

103

Changes in cash and cash equivalent

1,311–2,863

Cash and cash equivalent at 1 January

24,38020,797

Cash and cash equivalent at 30 June

25,691

17,934

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

21

1.5

Consolidated statement of changes in equity

in thousands CHF

Share
capitalShare
Premium

Reserve forown shares

Translation
reserve

Retainedearnings

Non-controllinginterests

Total
EquityBalance at 1 January 2014

8,540

13,740–1,641–45,463

211,924

145

187,245

7,030

116

7,146

ResultOther comprehensive
income, net of taxes

–629

–748

Comprehensive income

–629

6,282

–1,377116

5,769

Distribution fromreserves from capital
contributions, net–7,494

Share-based payments

169–7,494
756

925

–375

–375

Purchase of own sharesincl. tax effects
Balance at 30 June 2014

8,540

6,415

–1,260–46,092

218,206

261

186,070

8,540

6,416

–2,008–41,104

228,486

200,330

12,777

12,777

Balance at
31 December 2014
ResultOther comprehensive
income, net of taxes–20,194–1,204–21,398

Comprehensive income–20,194

11,573–8,621

Share-based payments

–15

987

6,401

–1,415972

Purchase of own sharesincl. tax effects
Balance at 30 June 2015

–394
8,540

–394
–61,298

240,059

192,287

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 2015 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 2014. The interim statements were­approved by the Board of Directors on 28 July 2015.
As per 1 January 2015 the Interroll Group has adopted the new IASB standards and interpretations (IAS 19 and the annual improvement
project). There was no significant impact on the disclosure and reporting of this interim statement from the adoption of new andamended standards and interpretations.
Foreign currency translation
The following most important exchange rates were used for the translation of financial statements denominated in foreign currencies:
Income Statement (average rates)

Balance sheet (Year end rates)

Jan.–Jun.

Jan.–Jun.

Change

2015

2014

in %

30.06.2015

31.12.2014

in %

1 EUR

1.047

1.219

–14.1

1.041

1.202

–13.4

1 USD

0.942

0.889

5.9

0.931

0.990

–6.0

1 CAD

0.757

0.811

–6.7

0.752

0.855

–12.0

1 GBP

1.440

1.489

–3.3

1.464

1.544

–5.2

1 SGD

0.698

0.706

–1.1

0.691

0.749

–7.7

1 CNY

0.152

0.144

5.4

0.150

0.160

–6.0

1 PLZ

0.253

0.292

–13.1

0.249

0.281

–11.7

1 THB

0.029

0.027

4.4

0.028

0.030

–8.3

1 ZAR

0.079

0.083

–5.0

0.076

0.086

–11.0

ChangeNew 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 2016 and are
not early adopted in this financial statement. The impact of the introduction/amendment of IFRS 9 (Financial Instruments), 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 be assessed with sufficientcertainty or the expectations of the impact are in line with the disclosures made in the annual report 2014. Based on a first assessment,with the exception of IFRS 15, Group M­ anagement does not expect significant impacts on the consolidated financial statements fromthese 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. Centers of
Excellence which focus on specific product groups, concentrate on the development of their assigned product portfolio.

 NOTES TO THE CONSOLIDATED FINANCIAL INTERIM STATEMENTS

23

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 effectedon the one hand by the turnover of the product groups and geographical markets and on the other hand by the reporting of the consolidated financial ­statements. 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 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 2015 (31 December 2014: CHF 0.1 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.

2015

in %

2014

in %

Other Europe, Middle East, Africa

81,90147.8

75,266

47.9

Germany

22,341

13.0

25,77016.4

104,24260.8

101,03664.3

USA37,14721.7

30,126

19.2

Other Americas

8,212

4.8

6,949

4.4

Total Americas

45,35926.5

37,07523.6

in thousands CHF

Total Europe, Middle East, Africa

Asia incl. Australia

21,737

12.7

18,957

12.1

Total Asia-Pacific

21,737

12.7

18,957

12.1

Total Group

171,338100.0

157,068

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.

2015

in %

2014

in %

2013

in %

Drives53,20131.0

55,98835.7

54,59836.6

Rollers

48,29528.2

39,39025.1

38,62325.9

Conveyors & Sorters

43,64825.5

33,49821.3

26,06817.5

Pallet & Carton Flow

26,19415.3

28,192

17.9

29,84920.0

171,338100.0

157,068

100.0

149,138

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 4.1 million compared to year end 2014. Assets and liabilities from the euro zone were translated into thereporting currency Swiss francs at considerably lower rates. Particularly due to an increase in ­inventories and higher account receivables,
the net working capital increased by CHF 4.8 million to CHF 57.6 million. During the period under review current liabilities increasedby CHF 12.2 million to CHF 72.8 million.
Investments / capital expenditures
A total of CHF 12.3 million in gross capital expenditures were invested. Total non-current assets reached CHF 131.0 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 performed in
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 3.3 million compared to year end 2014 and reached CHF
20.6 million by 30 June 2015.
Total credit lines available at the end of the reporting period amount to CHF 78.8 million, of which CHF 73.9 million remain unused(end of 2014: CHF 78.4 million). From these credit lines, CHF 40.0 million are committed until first half 2018.
Debt covenants have always been complied with during the reported interim period as well as during the previous year period.
EquityThe equity position decreased by CHF 8.0 million to CHF 192.3 million compared to the year end 2014. Particularely currency translation
adjustments, mainly from the euro zone, increased by CHF 20.2 million. The equity ratio at the end of the interim period corresponds
to 68.1 % (year end 2014: 72.1 %). Mid August 2015 a maximum of CHF 7.7 million will be paid out to sharesholders resulting from theagreed par value reduction from CHF 10.00 to CHF 1.00 per Interroll share during the annual general meeting held as per 8 May 2015.

 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 9.1 % to CHF 171.3 million compared to the same period last year. In local currencies
the increase reached 18.5 %. Organic growth accounts for 7.3 % while the remainder is mainly driven by the Pert acquisition in China as
per September 2014. The negative currency translation effect of 9.4 % in total, mainly resulted from the euro zone, while the dollar area
(mainly USA, Canada and Australia) and the emerging market countries (mainly Turkey, South Africa, Thailand, China and Brasil) wereslightly positive. ­Organic growth expressed in local currency reached 16.7 %.
Earnings before interest and taxes (EBIT)
Despite the mentioned negative currency translation effects, but favoured by the significantly higher revenues in local currency as well as
the lapse of development cost in 2014 (e.g. consolidation of companies in the North American business region and the development of the
new modular conveyor platform in Europe) led to an EBITDA increase of 45.5 % to CHF 26.5 million (previous year: CHF 18.2 million).
The EBITDA margin was 15.5 % (previous year: 11.6 %).
The EBIT increased by 99.7 % and reached CHF 17.5 million (previous year: CHF 8.8 million). In addition to the better operational
performance decreased depreciation and amortisation led to this improvement.
  Financing result
The net financial result of CHF 0.2 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 0.05 million (previous year: CHF 1.1 million).
Result
The net profit presented for the reporting period amounts to CHF 12.8 million (previous year: CHF 7.1 million).

NOTES TO THE CONSOLIDATED FINANCIAL INTERIM STATEMENTS26

2.5 Notes to the consolidated statement of cash flows
Cash flow from operating activities
Cash flow from operating activities amounts to CHF 11.6 million (previous year: CHF 5.0 million).
Cash flow from investing activities
Total investments of CHF 12.3 million (previous year: CHF 6.2 million) include amendments and renewals of machinery, the SAP ERP
system and mainly a new building under construction of Interroll in Baal/Hückelhoven, Germany. By locating the Interroll ResearchCenter, the Interroll Academy and the Interroll Coating Center (gumming) under one roof in Hückelhoven by autumn 2014 thedevelopment and production departments will be even better coordinated.
Cash flow from financing activities
No material cash outs from financing activities were incurred during the first half year 2015.

2.6 Notes to the consolidated statement of changes in equity
Share capitalThe decision of the ordinary general shareholder meeting from 8 May 2015 to reduce the par value of the Interroll share from CHF 10.00
to CHF 1.00 will be executed by mid August 2015.
Assignment of shares
Shares assigned to members of the management in the amount of CHF 1.0 million (previous year: CHF 0.9 million) were expensed.

3

FURTHER DISCLOSURES AND INFORMATION

Events after the balance sheet date, seasonality
The Group did not identify any events after the closing date of the interim statement that would have a ­material effect on the presentationof its financial position as at 30 June 2015. 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.

FINANCIAL CALENDAR 2016
Preliminary Financial Figures 201522 January 2016

Publication Annual Report 2015 and Balance Sheet Press Conference

18 March 2016

Annual General Assembly

13 May 2016

Publication Half-Year Report 2016

5 August 2016CONTACT UND 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

Petra Müller
Head of PR & Investor Relations
Tel: +41 91 850 25 21
Email: p.mueller@interroll.com
EditorInterroll Holding AG
Via Gorelle 36592 Sant’Antonino, Schweiz
Tel: +41 91 8502525
Fax: +41 91 8502505
www.interroll.com

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