Uster Technologies Ltd | Annual Report 2009 Uster Technologies ...

Comment on the Consolidated Financial StatementsSummaryIn an uncertain and weak market environment Uster Technologies Ltd continued to deliver a solid performancein the 2009 financial year.EBITA reached CHF 22.7 million and margins remained strong at 22.5%, slightly above the previous year’slevel of 22.1%, despite lower sales.Key drivers for this strong EBITA margin are:• Convincing investment propositions for the entire USTER ® product range even in difficult markets;• A lean and flexible organizational structure allowing the Company to immediately adjust for revenue upanddownturns;• Significant overhead cost reductions as a result from the restructuring projects initiated in the fourthquarter 2008;• Invoicing with secured payment terms in CHF or USD for the majority of the products, reducing exchangerate gains/losses and receivables defaults to a minimum.The net result reached positive CHF 1.1 million or 1.1% of gross sales.The cash position was significantly improved through a capital increase of CHF 43.9 million with ToyotaIndustries Corporation as a new major strategic shareholder. The proceeds of this capital increase have beenmainly used to reduce debt and to invest into the business.Income StatementGross SalesGross sales for 2009 amounted to CHF 100.8 million, a decrease of 34.9% compared to the prior year figure ofCHF 154.9 million. The overall decline of gross sales for quality testing instruments and service sales is aresult of the current weak market environment coupled with the negative impact of the financial crisis.Furthermore, secured trade financing has been a key challenge for our customers in the emerging marketsimpacting the gross sales levels. Exchange rate gains/losses on sales have been held at about 1% of gross salesin 2009, mainly due to CHF/$ invoicing.EBITAEBITA for the Group amounted to CHF 22.7 million (2008: CHF 34.2 million). As a percentage of gross salesthe EBITA reached 22.5% (2008: 22.1%).Uster Technology Ltd’s lean and flexible business model together with the restructuring initiated inNovember 2008 allowed the Group to adapt quickly its operations to the major changes in the market demand.Furthermore, during the course of the year, the cost of goods sold and overhead costs were adapted accordingly,thereby securing a high EBITA margin comparable to the level of 2008.Balance SheetThe balance sheet total as of December 31, 2009, amounted to CHF 404.7 million (2008: CHF 409.8 million).This decrease of CHF 5.1 million compared to the previous year was a combination of i) amortization of theintangible assets of CHF 15.2 million (assets), ii) an increase in cash of CHF 7.6 million (assets), iii) loan repaymentsof CHF 40.0 million (liabilities), iv) reduction of deferred tax of CHF 8.3 million (liabilities) and v)Shareholder’s equity increase by CHF 44.1 million mainly as a result of the capital increase and the positivenet result (equity). The equity ratio increased to a strong 50.3% (2008: 38.9%).50 Comment on the Consolidated Financial Statements 2009