Business in
2010

Orell Füssli reported slightly higher sales and – despite significant progress at the operating level – lower profits in the year under review. Sales expectations were not fulfilled, mainly due to the hesitant recovery in Atlantic Zeiser’s industrial business, an interim year in security printing and a slowdown in the book retailing business. The decline in profits is a reflection of the extraordinary income which boosted the previous year’s profit figure. In 2011 the company is focusing on making operating improvements and expects to achieve higher sales and earnings.

Orell Füssli reported sales of CHF 317.7 million in the 2010 financial year. This corresponds to an increase of 4% compared to the previous year. After adjustment for exchange rate movements and changes in the scope of consolidation, sales by the ongoing businesses were 9% higher. Operating earnings of the Orell Füssli Group declined to CHF 14.1 million (CHF 23.1 million, including CHF 8.5 million of extraordinary income, in 2009). However, Orell Füssli made significant progress at the operating level compared to the previous year: EBITDA improved from CHF 24.3 million to CHF 31.3 million and cash flow from operations rose by 41% according to internal assessment criteria. Net income was CHF 10.6 million (CHF 14.7 million in 2009).

Orell Füssli’s balance sheet is still in robust shape, not least due to a lasting reduction of CHF 40 million in the size of balance sheet, achieved mainly by trimming working capital. Free cash flow amounted to CHF 14.0 million. The net cash position increased from CHF 13.0 million in the previous year to CHF 21.4 million. With an equity ratio (including minority interests) of 70.0% (61.6% in 2009), the company is prepared to undertake expansion projects.

German subsidiary Atlantic Zeiser is largely financed via equity loans. The exchange rate fluctuations affecting the loans are posted to shareholders’ equity in the consolidated financial statements and thus have no impact on income. These exchange rate fluctuations on balance sheet date amounted to CHF 5.2 million. In the unaudited half-year financial statements these exchange rate fluctuations were erroneously posted as a charge of CHF 3.5 million to income.

segmental results
in CHF '000
 2010 2009 2008 2007
Division Atlantic Zeiser
Sales
 79,151 72,536 104,984 111,507
Earnings before interest and taxes (EBIT)
 –903 –4,427 7,275 13,568
Division Security Printing
Sales
 100,556 85,323 102,980 97,503
Earnings before interest and taxes (EBIT)
 13,993 16,704 23,983 18,206
Division Book Retailing
Sales
 119,861 123,629 122,747 121,509
Earnings before interest and taxes (EBIT)
 2,153 6,308 3,423 4,779