Mikron with higher sales and significantly improved profitability

Ad hoc announcement pursuant to Art. 53 LR:
Media release on semiannual results 2021

Biel, July 22, 2021, 7.00 a.m. - The Mikron Group's half-year figures are significantly better for 2021 than in 2020. Net sales increased by 15.3% and EBIT rose from CHF -5.7 million (before restructuring costs) in the first half of 2020 to CHF 8.2 million. In addition to the successful restructuring in 2020, the increased demand for cutting tools from Mikron Tool in the Mikron Machining Solutions business segment and the further increase in sales in the Mikron Automation business segment were the key factors in this pleasant development.

At CHF 167.5 million, the Mikron Group's order intake for the first half of 2021 is 33.3% higher than the corresponding figure for the first half of 2020 (CHF 125.7 million). At CHF 190.2 million, the order backlog exceeded the corresponding prior-year result of CHF 155.0 million by 22.7%, and sales rose from CHF 121.3 million in the first half of 2020 to CHF 139.9 million (+15.3%).

With a 49% share of sales, Europe (including Switzerland) remained the Mikron Group's principal sales market in the first half of 2021. Sales here rose by 12% and in Asia by 63% compared with the first half of 2020. Sales in the USA remained at the level of the same period in 2020. 

Profitability
Mikron also succeeded in significantly improving its EBIT and profit. Compared with 2020, the Group increased its half-year EBIT from CHF -5.7 million (before restructuring costs) to CHF 8.2 million, achieving an EBIT margin of 5.9%. The restructuring measures successfully completed in 2020 contributed significantly to this improvement. Following a loss of CHF 24.0 million in the prior-year period, Mikron posted a profit of CHF 11.8 million in the first half of 2021. This figure includes a one-time positive tax effect of CHF 5.0 million resulting from the merger of the Swiss companies and the related capitalization of tax loss carryforwards.

Cash flow
Cash flow from operating activities (including changes in net working capital) amounted to CHF 29.0 million in the first half of 2021 (first half of 2020: CHF 8.4 million). Investments came to CHF 10.0 million resulting in free cash flow of CHF 19.0 million.

Outlook
It remains difficult to make a forecast for the second half of the year due to the unpredictable development of the coronavirus pandemic. Mikron expects profitability to remain at a similar level to the first half, with an EBIT margin above 5%. This would lead to a significant year-on-year improvement for the full year 2021.

Key Figures for the Mikron Group in the first half year 2021

1) Except number of employees and equity ratio

2) Alternative performance measures, see Mikron Semiannual Report 2021, pages 18 to 21, or www.mikron.com/apm.

Publication of semiannual results for 2021
The semiannual results will be published at the same time as this ad hoc announcement in the form of the 2021 Semiannual Report: www.mikron.com/reports

Brief profile of the Mikron Group
The Mikron Group develops, produces and markets highly precise, productive and adaptable automation solutions, machining systems and cutting tools. Rooted in the Swiss culture of innovation, Mikron is a global partner to companies in the automotive, pharmaceutical, medtech, consumer goods, writing instruments and watchmaking industries. The Mikron Group enables its customers to increase quality and industrial productivity. The Group has over 100 years of experience, state-of-the-art technologies, and a global service. The two business segments Mikron Automation and Mikron Machining Solutions are based in Switzerland (Boudry and Agno). Additional production sites are located in the USA, in Germany, Singapore, China and Lithuania. Mikron Holding AG shares are traded on SIX Swiss Exchange (MIKN). The Mikron Group employs a total workforce of around 1,300.

Contact
Mikron Management AG, Dr. Javier Perez Freije, CFO Mikron Group
Phone +41 91 610 62 09, ir.mma@mikron.com

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