2020

05.03.2020 – Kardex AG

Kardex AG: Another successful year for Kardex

Kardex AG / Key word(s): Annual Results
Kardex AG: Another successful year for Kardex

05-March-2020 / 06:30 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 KR
The issuer is solely responsible for the content of this announcement.

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Media information - Year End Results 2019

Zurich, 5 March 2020

Another successful year for Kardex

- High order backlog supports strong revenue growth to EUR 471.2 million

- Profitability of both divisions reaches the upper end of the target
corridors raised in 2019

- Significant investments in the future growth of the Group

- Strong earnings growth enables dividend to be increased by around 13% to
CHF 4.50 per share

- Sound balance sheet offers strategic flexibility in corporate development

The Kardex Group looks back on the most successful year in its recent
history. The order books remain full, although the high order backlog of the
previous year could not quite be maintained. Group revenues again showed
double-digit growth and the profitability of both divisions reached new
highs at the upper end of the target corridors raised in 2019, despite
significant investments in the future. At EUR 63.5 million, the operating
result (EBIT) was the highest ever achieved.

The Kardex Group recorded a satisfying bookings level of EUR 452.4 million.
Although 6.0% down on the exceptional previous year, they are still around
10% up on 2017. The very high order backlog at the beginning of the year,
which led to extended delivery times, was converted into renewed sales
growth of 11.3% to EUR 471.2 million despite initial capacity bottlenecks.
While new business grew by 12.3%, Life Cycle Service grew by 9.2% and thus
achieved a revenue share of 31.9%.

The order backlog at the end of the year was EUR 217.8 million,
corresponding to a workload of 5.5 months, which is similar to the good
level at the end of 2017. As a result of this encouraging development and
significant investments in Kardex's future growth, the number of employees
rose by 106 to 1 913 full-time equivalents.

Strong increase in profitability
Gross profit at Group level increased by 12.5% to EUR 171.3 million, with a
gross profit margin of 36.4%. This was mainly possible due to the reduction
of capacity bottlenecks in the supply chain of Kardex Remstar as well as
lower steel prices and good sales pricing. Operating costs rose by 8.9% due
to strategic spending on infrastructure, personnel and marketing.

In addition to these effects, further efficiency gains and strict cost
management contributed to the Kardex Group's strong operating result. The
bottom line was an EBIT of EUR 63.5 million, with an EBIT margin of 13.5%
and a further increase of 19.4% over the previous year. After deducting the
financial result of minus EUR 3.3 million, this results in a net profit of
EUR 44.9 million. This represents a margin of 9.5%, a ROCE of 51.2% and
earnings per share of CHF 6.39.

Kardex Remstar achieves excellent result
In a challenging environment with solid investment activity, especially in
the USA and parts of Europe, Kardex Remstar achieved the best result in the
company's history. Bookings increased by 1.9% to EUR 388.6 million. Growth
in the first half of the year was regionally broad-based. New business in
the US continued to grow in the second half of the year, whilst at the same
time there was a noticeable slow-down in Germany, the UK, Scandinavia and
Turkey. Business in China and the Middle East was down on the previous year.

Revenues increased by 12.9% to EUR 392.4 million with a similar revenue mix,
benefiting from full order books at the beginning of the year. Despite
significant investments in future growth, capabilities and performance, the
operating result increased overproportionately again and rose by 20.4% to
EUR 61.4 million. Strict cost management, efficiency improvements and the
increase in revenues were the main drivers of EBIT margin of 15.6%.

At the end of the year, the order backlog amounted to EUR 159.8 million, the
second highest figure ever achieved. This ensures a good start to the
current financial year. The slowdown in order intake carries some
uncertainty and may point to a weaker second half of 2020.

Kardex Mlog with higher operating result but lower bookings
Bookings declined in a cautious market environment, but returned to normal
towards the end of the year. New business and modernization projects
contributed significantly less than in the previous year to the total
bookings of EUR 64.0 million, while the share of the service business
increased overproportionately.

Due to the record high order backlog at the beginning of the year, the
revenue development was less affected by the market environment. Revenues
increased by 4.2% to EUR 79.1 million with a slightly higher gross profit
margin of 22.8%. Efficiency improvements and a generally high cost
discipline led to a further improvement in the operating result, which at
EUR 5.6 million was around 10% above the previous year. This corresponds to
an EBIT margin of 7.1%, which is at the upper end of the EBIT target
corridor of 4-8% that was raised a year ago.

The order backlog at the end of the reporting period amounted to EUR 58.0
million, which corresponds to an average workload of nine months. On this
basis and despite a market environment characterized by further uncertainty,
Kardex Mlog expects results for 2020 roughly in line with those of the
previous year.

Solid balance sheet of the Kardex Group with high equity ratio
The Kardex Group's balance sheet remains extremely robust, with total assets
of EUR 289.8 million and a high equity ratio of 59.4% (57.9%) at the end of
the period. The company is debt-free and has a net cash position of EUR
133.6 million. At EUR 30.8 million, the free cash flow generated during the
financial year 2019 is below the high level of the previous year's period
due to significant investments in production capacities in the USA and
Germany and lower advance payments from projects.

Increased dividend per share
The very good annual result allows the Board of Directors to propose a
distribution of CHF 4.50 per share to the Annual General Meeting of
Shareholders on 14 April 2020. This is around 13% more than in the previous
year and corresponds to a dividend yield of 2.8%.

As already communicated, the Board of Directors will propose to the Annual
General Meeting that Dr. Andreas Häberli and Eugen Elmiger be newly elected
to the Board. Andreas Häberli, Chief Technology Officer of the dormakaba
Group, will contribute extensive technological know-how, particularly
expertise in many areas of digitization. Eugen Elmiger, CEO of the globally
active Maxon Motor, will further enhance the Kardex Group's international
market and industry knowledge. With the exception of Walter T. Vogel, who is
leaving the Board after 14 years, the current members will stand for
re-election. We would like to take this opportunity to thank
Walter T. Vogel for his many years of commitment and valuable contributions
to the Kardex Group.

Outlook
The Kardex Group is entering the new financial year 2020 from a strong
position. The targeted investments in people development, supply chain,
internal processes and digitization will be implemented as planned. This
will further strengthen the company in order to benefit from the medium-term
growth opportunities in the dynamic intralogistics market.

Key Figures
EUR millions

  1.1.-31.12.                         2019               2018          +/-%

  Bookings                           452.4  96.0-       481.2  113.-  -6.0-
                                                %                 7%      %
  Order backlog (31.12.)             217.8  46.2-       230.1  54.3-  -5.3-
                                                %                  %      %
  Net revenues                       471.2  100.-       423.4  100.-  11.3-
                                               0%                 0%      %
  Gross profit                       171.3  36.4-       152.2  35.9-  12.5-
                                                %                  %      %
  OPEX                               107.8  22.9-        99.0  23.4-   8.9%
                                                %                  %
  EBITDA                              70.2  14.9-        59.0  13.9-  19.0-
                                                %                  %      %
  Operating result (EBIT)             63.5  13.5-        53.2  12.6-  19.4-
                                                %                  %      %
  Result for the period (net          44.9   9.5%        38.3   9.0%  17.2-
  profit)                                                                 %
  Net cash flow from operating        44.8               48.1         -6.9-
  activities                                                              %
  Free cash flow                      30.8               37.8         -18.-
                                                                         5%
  ROCE                               51.2%              52.1%

                                31.12.2019         31.12.2018          +/-%

  Net working capital                 77.3               63.9         21.0-
                                                                          %
  Net cash                           133.6              129.2          3.4%
  Equity/Equity ratio                172.0  59.4-       153.3  57.9-  12.2-
                                                %                  %      %
  Employees (FTE)                    1 913              1 807          5.9%

                                      2019               2018          +/-%

  Distribution per share                     4.50                4.0  12.5-
  (CHF)1                                                                  %
1 2019: Distribution of a dividend as proposed to the Annual General Meeting
to be held on 14/04/2020.


Annual Report
A PDF version of the Annual Report 2019 of the Kardex Group is available on
our website.

Contact for media and investors
Edwin van der Geest; investor-relations@kardex.com
Tel. +41 (0)44 419 44 79 / Mobile +41 (0)79 330 55 22

     Agenda
     14 April 2020    Annual General Meeting 2020
                      SIX ConventionPoint, Zurich, Switzerland
     30 July 2020     Publication Interim Report 2020
                      Conference Call for Media and Analysts
     4 March 2021     Publication Annual Report 2020
                      Conference Call for Media and Analysts
     15 April 2021    Annual General Meeting 2021
                      SIX ConventionPoint, Zurich, Switzerland
     29 July 2021     Publication Interim Report 2021
                      Conference Call for Media and Analysts
Kardex Group - Corporate Profile
The Kardex Group is a global industry partner for intralogistic solutions
and a leading supplier of automated storage solutions and material handling
systems. The Group consists of two entrepreneurially managed divisions,
Kardex Remstar and Kardex Mlog. Kardex Remstar develops, produces and
maintains dynamic storage and retrieval systems and Kardex Mlog offers
integrated materials handling systems and automated high-bay warehouses. The
two divisions are partners for their customers over the entire lifecycle of
a product or solution. This begins with an assessment of customer
requirements and continues via the planning, realization and implementation
of customer-specific systems through to ensuring a high level of
availability and low lifecycle costs by means of customer-oriented lifecycle
management. Around 1 900 employees in over 30 countries work for the Kardex
Group.

Disclaimer
This communication contains statements that constitute "forward-looking
statements". In this communication, such forward-looking statements include,
without limitation, statements relating to our financial condition, results
of operations and business and certain of our strategic plans and
objectives. Because these forward-looking statements are subject to risks
and uncertainties, actual future results may differ materially from those
expressed in or implied by the statements. Many of these risks and
uncertainties relate to factors which are beyond Kardex's ability to control
or estimate precisely, such as future market conditions, currency
fluctuations, the behavior of other market participants, the actions of
governmental regulators and other risk factors detailed in Kardex's past and
future filings and reports and in past and future filings, press releases,
reports and other information posted on Kardex Group companies' websites.
Readers are cautioned not to put undue reliance on forward-looking
statements, which speak only of the date of this communication. Kardex
disclaims any intention or obligation to update and revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.

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