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Jenoptik Achieve Record Financial Performance In 2nd Quarter 2021

“Jenoptik had a record 2nd quarter in a challenging environment still influenced by the pandemic. With group revenue up nearly 30 percent and an EBITDA margin of more than 25 percent we reached new all-time highs. Also, we are very pleased with the performance of TRIOPTICS, marking an important step forward in our growth strategy, which combines organic growth and acquisitions. Based on these strong results and the positive prospects for the remainder of the year, we are well on track to achieve our recently increased targets for 2021,” says Stefan Traeger, President & CEO of JENOPTIK AG.

Thanks to a sustained recovery in demand in the three photonics divisions – Light & Optics, Light & Production, and Light & Safety – Jenoptik posted a strong increase in order intake in the first six months of 52.2 percent, to 508.4 million euros (prior year: 333.9 million euros). Despite a pick-up in demand in the 2nd quarter, the order intake at VINCORION was still down on the prior year after six months. In the 2nd quarter, the Group’s order intake almost doubled, with an increase of 96.4 percent, compared with the prior-year quarter. The Group’s book-to-bill ratio increased substantially in the first six months, from 1.02 to 1.31. The order backlog grew by 27.4 percent to 586.0 million euros (31/12/2020: 460.1 million euros).

In 1st first half of 2021, Jenoptik generated revenue of 389.3 million euros, 18.3 percent more than in the prior year (329.0 million euros), in the 2nd quarter revenue grew by 29.6 percent over the prior year. Strong organic growth and the contribution from TRIOPTICS led to an appreciable increase in revenue in the Light & Optics division in the first six months of 2021. While the Light & Production division benefited from an upturn in demand from the automotive industry and business at VINCORION also picked up slightly, revenue in Light & Safety was down on the prior year. TRIOPTICS was the main contributor to the significant increase in revenue in the Asia/Pacific region. The share of revenue generated overseas remained unchanged at 74.2 percent.

Profitability improved significantly in the first six months of 2021. In addition to the strong operating performance, this also reflected the increasingly positive impacts arising from the restructuring measures implemented in 2020. The EBITDA item also includes a one-off effect of around 16 million euros in connection with the acquisition of TRIOPTICS. EBITDA grew to 73.7 million euros and was thus 94.6 percent up on the prior-year figure of 37.9 million euros. Excluding the above-mentioned one-off effect, earnings would have increased by around 52 percent. The EBITDA margin rose to 18.9 percent (prior year: 11.5 percent). At the end of June, income from operations (EBIT) of 46.2 million euros was also well above the prior-year figure of 15.6 million euros. The EBIT includes PPA impacts worth minus 8.9 million euros as a result of acquisitions in prior years (prior year: minus 3.6 million euros). Group earnings after tax grew from 10.6 million euros to 37.7 million euros.

Strong Financial and Balance Sheet Position for Future Growth

As of June 30, 2021, Jenoptik had a very healthy and robust balance sheet and financing structure to secure its planned growth. Cash flows from operating activities came to 26.0 million euros, practically unchanged on the prior-year figure of 26.7 million euros, while the free cash flow of 11.6 million euros was solid as expected but down on the prior-year’s 16.0 million euros. This was attributable to the increase in working capital in preparation for revenue recognition in the 2nd half of the year.

“We have a healthy balance sheet and very good financial resources to manage our planned future growth. We will push on with our strategy of organic growth, and we have sufficient firepower to take advantage of further opportunities for external expansion,” says Hans-Dieter Schumacher, Chief Financial Officer of JENOPTIK AG.

As of June 30, 2021, cash and cash equivalents were down in value, from 63.4 million euros at year-end 2020 to 49.8 million euros. Net debt increased slightly to 214.5 million euros, following 201.0 million euros as of December 31, 2020. The equity ratio rose from 51.5 percent on December 31, 2020, to now 53.5 percent.

Light & Optics reported record figures

In the Light & Optics division, strong momentum in the semiconductor equipment business and substantially increasing demand in the Biophotonics and Industrial Solutions areas from the 1st quarter continued. TRIOPTICS also showed a pleasing performance, contributing 41.0 million euros to revenue. Accordingly, the revenue of the division improved by 48.6 percent, from 139.5 million euros to 207.3 million euros in the first six months of 2021. EBITDA followed this trend and more than doubled to 65.5 million euros (prior year: 30.0 million euros). In addition to the very good operating performance and the contribution from TRIOPTICS, however, this figure also includes a one-off effect of around 16 million euros in connection with the acquisition of TRIOPTICS. The division’s EBITDA margin came to 31.5 percent, significantly up on the prior-year figure of 21.4 percent. Strong demand also promises a good performance in the subsequent quarters. The order intake, worth 269.6 million euros, was 90.9 percent up on the prior year (141.2 million euros), while the order backlog reached a record level of 239.3 million euros (31/12/2020: 179.1 million euros).

Light & Production with rise in order intake and significant earnings growth

In the Light & Production division, signs of recovery in the automotive industry became apparent, particularly in the 2nd quarter. Despite this, the impacts of the COVID-19 pandemic – the lower order backlog at the beginning of 2021 – have not yet been fully overcome. In total, revenue came to 78.0 million euros at the end of June, 7.5 percent up on the prior year (72.6 million euros). While the Laser Processing and Industrial Metrology areas posted growth, Automation & Integration was still at around the prior-year level due to project postponements. EBITDA grew to 3.7 million euros (prior year: minus 4.4 million euros), among other things, due to impacts in connection with the restructuring and cost-cutting measures implemented in the prior year making a positive contribution. The EBITDA margin improved from minus 6.1 percent to plus 4.7 percent. Improved sentiment in the automotive industry was reflected in the sharp rise in order intake, which increased by 73.0 percent to 109.6 million euros (prior year: 63.3 million euros). At the end of June, the order backlog amounted to 106.1 million euros, and was also well up on the 74.7 million euros as of December 31, 2020.

On the basis of the very good operating performance in the 2nd quarter of 2021, and the expected strong development in the 2nd half of the year, Jenoptik has significantly raised its full-year guidance in July. In addition, a one-off effect in EBITDA of around 16 million euros expected in connection with the conditional purchase price components arising from the acquisition of TRIOPTICS will also contribute to the margin increase. Revenue is expected to come in at between 880 million and 900 million euros in the 2021 fiscal year (previously: revenue growth in the low double-digit percentage range / prior year: 767.2 million euros). In addition, an EBITDA margin of between 19.0 and 19.5 percent (previously: EBITDA margin of 16.0 to 17.0 percent / prior year: 14.6 percent) is expected.

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