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Autoneum Annual Report 2016
Letter to Shareholders
as
High investments securing profitable growth
Compared to 2015, net profit increased from
CHF 68.7 million to CHF 133.8 million in 2016
and has thereby virtually doubled. As well as
operational improvements, the aforementioned
gain from disposal of the UGN business in
Chicago Heights contributed to this distinctive
upturn.
In order to also grow profitably in the
future, Autoneum invested heavily in expanding
the capacities of existing facilities, in vertical
integration and in the introduction of new
technologies at various sites across the world
in 2016. This included, among others, a
third global production line for the semi-finished
material of Ultra-Silent in Gundernhausen,
Germany and additional carpet production lines
in the USA, Mexico and China. Investments were
also made in a new development center at
the future North America headquarters in Novi
(Michigan), USA. In 2016, the total investments
of the Group amounted to CHF 138.4 million
(2015: CHF 120.7 million).
Owing to the sharply improved operating
performance of Business Group Europe and the
special effects, the cash flow from operating
activities grew by a significant CHF 82.4 million
to CHF 194.1 million (2015: CHF 111.7 million).
Thanks to the higher net profit, the return on
net assets (RONA) before special effects came
to 19.6% (2015: 17.7%) and considerably
exceeded the average cost of capital of 8.5%.
The equity ratio improved to 38.4% (previous
year: 35.7%). Despite the high investments, net
debt was reduced to CHF 57.4 million (2015:
CHF 106.1 million), primarily due to the
operating income and the gain from disposal
of the UGN business in Chicago Heights.
Earnings per share before special effects were
at CHF 19.26 (2015: CHF 15.92).
In 2016,
Autoneum invested
heavily in expanding
the capacities of
existing facilities, in
vertical integration
and in the introduction
of new technologies.
Profitability significantly increased
With an EBITDA margin before special effects of
11.4% (2015: 10.7%) in 2016, Autoneum once
again achieved a significant profitability increase
compared to the previous year. EBITDA rose by
9.8% to CHF 245.0 million. EBITDA after special
effects summed up to CHF 278.1 million (2015:
CHF 191.5 million). EBIT also rose significantly
before special effects to CHF 175.6 million,
which corresponds to an EBIT margin of 8.2%.
This increase of 0.6 percentage points on the
previous year caused the EBIT margin to reach
a new record high in a full year. Continuous
efficiency increases in production, almost maxi-
mum capacity utilization in Europe and low
raw material prices in Europe and Asia con-
tributed to this further improvement in the
result. EBIT after special effects amounted to
CHF 204.5 million (2015: CHF 126.5 million).
In 2015, a special effect amounting to
CHF 31.5 million following the settlement with
the German Federal Cartel Office exerted a
negative impact on the result. In 2016, the gain
of CHF 33.2 million from disposal of the
UGN business in Chicago Heights (Illinois), USA
and the impairment loss in the amount of
CHF 4.3 million due to the intended adaptation
of the South American production capacity
influenced the result.