Download media release - Walter Meier

MEDIA RELEASE
Schwerzenbach, Switzerland, February 21, 2012
Walter Meier generateS Solid SaleS and
Further increaSeS proFitability
n Sales only slightly down on the
previous year at CHF 641.7 million
despite negative currency effects
n Adjusted for currency and consolidation
effects, sales grew by 5.7 percent
n EBIT margin increased from 7.9 to 8.8
percent, primarily due to a marked
recovery in Machining Solutions
n Net income amounted to CHF 51.9
million, up 26.0 percent year-on-year
n Proposed profit payment of CHF
12.50 per -A- registered share,
unchanged on the previous year
“once again, Walter Meier can look back on a very good financial year,” says ceo
Silvan g.-r. Meier, commenting on the 2011 annual result. “despite negative currency
effects, sales have been kept virtually constant, while all other key performance
indicators were up on the very good figures achieved in the previous year.
We are also delighted that this anniversary year saw ebit reach chF 56.5 million,
a record high in the 75-year history of Walter Meier.”
the climate and manufacturing technology group Walter Meier generated sales of
chF 641.7 million in 2011 (previous year: chF 645.4 million), a slight drop of 0.6
percent compared to the previous year. adjusted for the effects of currency translation
and consolidation, this equates to organic growth of 5.7 percent. in view of the
strong Swiss franc, healthy growth in parts of the group divisions humidification
and tools, which have a predominantly international focus, actually translated into a
decline in sales. the group division Machining Solutions achieved the largest
increase in sales by some margin, at over 22 percent, chiefly due to a similarly large
and unexpectedly rapid recovery in the Swiss metalworking industry.
ebit increased by 10.6 percent year-on-year to chF 56.5 million, corresponding to a
further improvement in the ebit margin from 7.9 percent to 8.8 percent. all group
divisions contributed to this pleasing growth in the operating result, with the group
division Machining Solutions enjoying the most marked improvement.
net income amounted to chF 51.9 million, up from chF 41.2 million in the previous
year. this increase is mainly due to growth in the operating result. in addition, the net
financial result improved significantly over the past financial year, and the share in
profit of associated companies also increased. With the continuing positive growth
in earnings enjoyed by the group division tools, more use can now be made of its
accrued loss carryforwards, allowing the tax rate to be reduced to an extremely low
10.0 percent. Following the destruction of 108 800 -a- registered shares from the
now-completed share buyback program, profit per share increased sharply year-onyear
from chF 19.09 to chF 25.02.
on the balance sheet date, total assets had increased from chF 320.6 million to
chF 355.8 million, primarily due to the increase in cash and cash equivalents as well
as the acquisition of new business units and strategic investments. at the end of
2011, the equity ratio improved once again to 55.6 percent (previous year: 53.2
percent). the profit payments and the repurchase of treasury shares on the second
trading line, which was completed ahead of schedule on april 28, 2011, had a
significant impact on the equity level.
net liquidity increased considerably yet again in spite of the dividend payment, the
capital reduction and the financing required for acquisitions, amounting to chF 60.7
million on december 31, 2011 (previous year: chF 45.6 million). these funds now
form a sound basis for accelerated growth in strategic business areas. at the end of
the year, immaterial financial liabilities were at a similarly low level as in 2010.
Working capital was maintained roughly at the previous year’s level, mirroring the
sales trend in the 2011 financial year.

2 Walter Meier – Media releaSe
at chF 43.6 million, free cash flow was up slightly on the previous year (chF 41.0
million). the marked increase in the outflows of funds for investments in the group
divisions humidification and climate was more than offset by greater cash inflows
from operating activities. Funds tied up in operating assets were subject only to
minor changes.
the number of employees increased by 78 in comparison with the end of 2010 to
reach 1 627 (full-time equivalents), mainly due to acquisitions.
in chF million 2011 2010 change in % organic change in %
net sales 641.7 645.4 –0.6 5.7
humidification 101.3 99.6 1.7 –0.9
climate 333.9 345.5 –3.4 2.9
tools 153.8 161.9 –5.0 7.4
Machining Solutions 64.9 53.1 22.2 22.2
inter-segment sales –12.2 –14.7
ebit 56.5 51.1 10.6
in % of net sales 8.8 7.9
net income 51.9 41.2 26.0
per -a- registered share in chF 25.02 19.09 31.1
per -b- registered share in chF 5.00 3.82 30.9
profit payment per -a- registered share in chF
(proposed) 12.50 12.50 –
profit payment per -b- registered share in chF
(proposed) 2.50 2.50 –
cash flow from operating activities 61.6 47.6 29.4
Free cash flow 43.6 41.0 6.3
in chF million 12/31/2011 12/31/2010
total assets 355.8 320.6
trade receivables 80.7 90.2
inventories 98.0 88.0
trade accounts payable 32.8 35.0
Financial liabilities 2.9 1.6
net liquidity 60.7 45.6
equity in % of total assets 55.6 53.2
number of employees (Full-time-equivalents) 1 627 1 549

Walter Meier – Media releaSe
Humidification
the group division humidification saw some significant changes with its acquisition
of JS humidifiers (uK), Ml System (dK) and anderberg Fugtstyring (dK) as well as its
shift in focus toward the French market. overall, the group division’s sales exceeded
those achieved in the previous year, buoyed by the various acquisitions (increase of
chF 1.7 million, or 1.7 percent). excluding the newly acquired business units, sales –
which are generated almost entirely abroad – had a significantly more negative
impact on the consolidated financial statements than last year due to the strong
Swiss franc. adjusted for currency and consolidation effects, global sales of humidification
equipment and systems fell by 0.9 percent in organic terms in the 2011
financial year. this decline is mainly due to the highly negative currency effects that
hit the export business of condair ag, the group division’s largest company, which
is based in pfäffikon in the canton of Schwyz (Switzerland).
oliver Zimmermann will become head of group division humidification starting
March 1, 2012.
Climate
With the exception of the Swiss domestic market, all companies in the group
division climate increased year-on-year sales in local currencies. besides the
weakness of the euro, the group division’s marked decline in sales (-3.4 percent
compared to the previous year) mainly resulted from the transfer of its radiant
cooling business line to MWh barcol-air and the sale of its uK air-conditioning
system retail business. the weak euro had an impact on the currency translation
of the german and austrian business units’ sales figures and resulted in significant
price concessions that had to be absorbed by the Swiss retail business. adjusted
for currency and consolidation effects, the group division climate posted organic
growth of 2.9 percent.
Tools
the group division tools generates some two-thirds of its revenues in north america,
meaning that currency translation effects had a significant impact on sales, which
fell by chF 8.1 million (5.0 percent) in terms of the Swiss franc year-on-year. Viewed
in local currencies, the uS manual wood- and metalworking business in particular
made substantial progress on its growth path. adjusted for currency effects, the
group division generated organic sales growth of 7.4 percent.
Machining Solutions
during the crisis years, the Swiss core business, which consists of total solutions for
precision machining, was hit by the sharpest decline in sales by a large margin when
measured across all group divisions. in contrast, it enjoyed an impressive trend
reversal last year, achieving sales growth of 22.2 percent. despite this success, the
sales figures posted by Machining Solutions still lagged clearly behind the recordbreaking
years of 2007 and 2008.
annual ShareholderS’ Meeting
the board of directors of Walter Meier will propose a profit payment in the form of a
dividend of chF 12.50 per -a- registered share and chF 2.50 per -b- registered share
to the annual shareholders’ meeting on March 14, 2012.
dr. reto e. Meier has announced his resignation as chairman of the board of directors
effective at the end of the annual shareholders’ meeting, with prof. dr. Kurt
Schiltknecht also set to resign as Vice chairman and Member of the board of
direc tors at the same time. in addition, Werner Kummer will not be standing for
re-election. We would like to extend our thanks to the founder of the Walter Meier
group, dr. reto e. Meier, for his great achievements. in the space of forty years, he
developed the company in impressive style from a medium-sized enterprise into an
international corporate group. We would also like to thank prof. dr. Kurt Schiltknecht
and Werner Kummer for their many years of committed service to Walter Meier.
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4 Walter Meier – Media releaSe
Walter Meier ltd.
bahnstrasse 24, 8603 Schwerzenbach, Switzerland
phone +41 44 806 41 41, Fax +41 44 806 49 49
group@waltermeier.com, www.waltermeier.com
alfred gaffal and Silvan g.-r Meier will stand for election to the board of directors
for the first time. Mr. gaffal (born 1947) handed over the executive management of
Wolf gmbh in Mainburg (germany) to his successor on March 31, 2011, and has
since been chairman of Wolf’s Supervisory board. Wolf is one of the leading providers
of heating, climate and ventilation technology in europe. Mr. gaffal has increased
Wolf’s sales from eur 3 million in 1973 to eur 290 million. he returned to the
company in 2002 following a brief break, launching an innovation and quality
offensive in subsequent years that successfully focused the Wolf group on the
future-oriented market of energy efficient solutions. in 2006, the Wolf group was
sold to the building services technology group centrotec and Mr. gaffal joined its
Management board, from which he also resigned on March 31, 2011.
it is planned that Silvan g.-r. Meier will assume the chairmanship at the constituent
meeting of the board of directors that follows the ordinary annual shareholders’
meeting. he will continue to exercise his role as ceo. in addition, heinz roth is set
to become Vice chairman.
outlooK
provided that the general economic situation in the key markets of Switzerland,
germany and north america does not deteriorate significantly in comparison with
February 2012, Walter Meier again expects a low single-digit rise in organic sales
growth for the current year. assuming stable exchange rates, it should be possible
to maintain ebit at the previous year’s level, although net income may fall slightly
year-on-year due to positive exceptional effects in 2011.
Further information
patrick bossart, head of corporate communications
phone +41 44 806 49 40, corporate communications@waltermeier.com
Key dates
February 21, 2012 annual report 2011 plus media and financial analysts’ conference
March 14, 2012 annual Shareholder’s Meeting
August 21, 2012 half-year report 2012
December 31, 2012 end of business year 2012
Walter Meier is an international climate and manufacturing technology group. the company was
founded in 1937 and today generates sales of approx. chF 650 million with about 1700 employees.
Walter Meier sets great store by customer-specific total solutions and comprehensive support
services. Shares in Walter Meier are listed on the SiX Swiss exchange (symbol WMn).
this media release and the annual report 2011 are also available in german and english
at www.waltermeier.com/investors.