annual report - Kendrion

Report of the Board
Highlights
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Further expansion of a focused company with a clear profile;
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At the beginning of 2012, an expansion of the credit facility for acquisitions by
EUR 60 million, leading to a total financing package of EUR 183.5 million, was
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21% increase in revenue due to the strongly expanding economy in Kendrion’s
arranged with Kendrion’s bank consortium, comprising Rabobank, ING Bank and
main markets;
Deutsche Bank;
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Growth in revenue recorded by all business units, generating EBITA of 11.5% for
Kendrion as it benefited from steps taken in the past, for instance to reduce costs
and increase innovation and flexibility;
Very good normalised net profit (before the provision for the fine of the EC and
acquisition costs) of EUR 20.5 million, due to revenue growth and reduced cost
levels;
Strong financial position, with a solvency of 40% (equity of EUR 91.7 million
after the provision for the European fine of EUR 41.8 million) and low bank debts
(EUR 25.9 million at the end of 2011 after the acquisition of FAS Controls);
Very satisfying free cash flow of almost EUR 15 million, despite the substantial
growth in revenue;
Acquisition of FAS Controls, Inc., Shelby, North Carolina, USA to strengthen
Kendrion’s market position in the US automotive and truck markets;
z Celebration of ’100 years of electromagnetism’ on several occasions and with
many employees and other stakeholders involved;
z A significant focus on innovation, including the organisation of the Dr. Wilhelm
Binder Symposium ’Next century of electromagnetism’ in Villingen (Germany) in
November 2011;
z A significant focus on flexibility, with business units being requested to be
prepared for increasing economic volatility of their most important home markets;
z Further refinement of the company’s strategy (the Mid-term Plan ’Entering another
league’), designed to achieve leading global positions in Kendrion’s most
important niche markets;
z Start of a greenfield operation in Pune, India, to strengthen Kendrion’s position
in the bus and truck market in that country;
z Selection of IFS as ERP software provider for all locations worldwide, first
successful go-live on 4 October 2011 at Passenger Car Systems Villingen, Germany,
followed by Pune, India.
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annual report 2011