Record year for Orell Füssli

 

Sales increase by more than 7%, profits 9% higher – Strong international banknote business – Growth in book retailing and publishing in Switzerland – Dividend increase proposed

Zurich, April 10, 2008. Orell Füssli reported a 7.3% increase in sales to CHF 378.4 million in the 2007 financial year, thus setting a new record. Operating profit (EBIT) rose by 7.7% to CHF 42.2 million. Net profit increased by 9.1% to CHF 29.9 million. All five divisions developed positively. Orell Füssli already published provisional results on February 5, 2008.

 

The Security Printing and Industrial Systems business unit laid the foundation for these pleasing annual figures with a strong performance in the second half of the year. The Orell Füssli Security Printing Division reported record sales of CHF 98.6 million, an increase of 19.1%, coupled with a further improvement in the profit margin. Substantial orders for banknotes from non-European central banks also contributed to growth. Production capacity at the Zurich Wiedikon site is fully utilised until 2009. A slight reduction in sales in the current financial year cannot be ruled out due to the structural alterations and expansion of production facilities now in progress. The Atlantic Zeiser Division reported a striking increase in sales in its international industrial business in the fourth quarter with the successful launch of new products in the field of systems for processing cards and security documents, but nevertheless could not quite equal the previous year’s sales and profit figures.

 

Book Retailing reported a solid 5.0% increase in sales supported by good consumer sentiment, although the Christmas trade contributed little to growth. Systematic steps to enhance efficiency, including the introduction of a new ERP system, resulted in further improvement in profit margins. Retail price maintenance on books was abolished in Switzerland in May 2007, and Orell Füssli is exploiting this situation to use pricing as a marketing tool, primarily in the bestseller segment.

 

Publishing expanded its strong market position and developed encouragingly. The Orell Füssli Business Information Division reported slightly higher sales while maintaining its high profit margins. The main contributor to this was the Teledata business with information on Swiss companies, which made further gains. The Orell Füssli Publishing Division reported a striking increase in sales of 26.6%, attributable to organic growth of 6.7%, the acquisition of the Globi children’s book publishing house and adjustments to the Photoglob business model for the distribution of road maps in Switzerland.

 

Orell Füssli’s consolidated balance sheet was strengthened further: the equity ratio rose to 56.8% and provides a sound basis for financing further growth at Orell Füssli.

Increased dividend

The Board of Directors will propose to the Annual General Meeting on May 7, 2008, that the dividend payment should be increased by 11% to CHF 5 per registered share. This is in line with the long-standing policy of maintaining a payout ratio of some 33% of profits, and corresponds to a dividend yield of 2.5% at a share price of CHF 200.

 

Outlook

In the 2008 financial year Orell Füssli expects growth to continue and earnings to remain stable against the backdrop of a high level of orders in hand at Security Printing.

 

Key figures for Orell Füssli

&nb

CHF m	2006	2007	Δ%
Sales	352.6	378.4	7.3%
Operating profit (EBIT) in % of sales	39.2 11.1%	42.2 11.2%	7.7%
Profit after minority interests in % of sales	27.4 7.8%	29.9 7.9%	9.1%
Total assets	254.5	269.1	5.7%
Total shareholders’ equity in % of total assets	130.0 51.1%	152.8 56.8%	17.5%
RONA	26.1%	27.5%
ROE	24.1%	23.0%
Number of employees	1’049	1'118	6.6%
Dividend (in CHF)	4.50	5.00*	11.1%

*) Proposal by the Board of Directors to the Annual General Meeting on May 7, 2008

 

Annual Report

The Annual Report for 2007 will be published with today’s date and can be obtained from The Secretary to the Executive Board (Hanna Michel, Phone +41 44 466 7273, hanna.michel@ofh.ch). The Annual Report can also be accessed on the Internet at www.orellfuessli.ch.

 

Agenda

Annual General Meeting of Orell Füssli Holding Ltd
Zurich Wiedikon, May 7, 2008, 3:30 p.m.

Press release, half-year results 2008
August 5, 2008

Investors’ Day - Orell Füssli Insight
Zurich Wiedikon, October 1, 2008

 

Information
Sönke Bandixen, CEO Orell Füssli
Phone +41 44 466 7273
investor-relations[at]ofh.ch

 

Orell Füssli is combining the three strategic business units of Security Printing and Industrial Systems, Book Retailing and Publishing. The Security Printing and Industrial Systems business unit is a technological and quality leader in banknote and security printing as well as machine manufacturing for systems used in the personalisation of security documents and branded products. Orell Füssli’s book retailing business occupies a leading position in Switzerland with large-format, specialist and online bookstores. In addition to non-fiction and textbook publishers, the Publishing business unit includes comprehensive online databases of corporate and personal information with a business focus.

Orell Füssli generates sales of CHF 380 million with 1’100 employees at locations in 10 countries and is listed on the Swiss Stock Exchange.