AnnuAl RepoRt 2011

Electrotechnics Division sales were
7.5 % lower than the previous year,
as the sector experienced strong destocking
combined with a slowdown of
most market segments in the second
half of 2011. Thanks to a particularly
effective integration of 2010 acquisitions
combined with strong industrial
improvement programs, EBIT margin
was 18.5 % or 10.1 percentage points
better than 2010. Excluding the impact
of the Puerto Rico plant shutdown,
headcount was reduced by 4 % to introduce
more flexibility in the Division’s
workforce. Thanks to an adjusted level
of inventory in the supply chain and
despite short term visibility provided by
customers, 2012 sales are expected to
be higher than 2011.
The Group has a net cash position of
CHF 126.6 million at 31 December
2011, in addition to which the Group
had a book value of CHF 10.7 million
strategic precious metals. CHF 51.2
million of these metals were sold for
value in 2011 and this resulted in CHF
20.1 million gains during 2011.
For the first time in its recent history,
the Group partially financed an acquisition
(NECC in Japan) via a CHF 41.3
million five-year loan.
Shareholder equity at 31 December
2011 amounted to CHF 372.4 million
or 60.6 % of the total balance sheet
value. The Board of Directors intends
to invest in organic growth and acquisitions
and proposes not to pay any
dividend in 2012.
During 2011 the Group completed the
implementation of a new employee
share participation plan, and over
139 senior and key employees of the
Group were able to invest in a total
of CHF 18.4 million shares in Metalor
Technologies International SA via several
special purpose vehicles. These
vehicles were loaned a total of CHF
11.5 million by the company in order
for them to buy further shares in the
company, and thus created a more
leveraged participation than would be
available by direct participation in the
company itself. All shares were sold at
market value.
Identification of risks to which the
Company and its subsidiaries are
exposed, as well as adequate organizational
means to measure and manage
such risks, are among the Board
of Directors’ duties. The Company
has implemented a procedure which
ensures that such risks are adequately
managed at divisional and corporate
level under the supervision of
Corporate Management and are
regularly reported to the Board. The
Metalor Group’s Major Risks Map was
updated in 2011 and all identified risks
are being proactively monitored, adequately
and globally managed by the
Divisions and Corporate Services.
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