S&T AG: very successful conclusion to 2016 - sales should break in 2018 the one billion Euros mark

Donnerstag 06. April 2017

Austria

Revenues from sales climb to EUR 503.7 million (PY: EUR 468.2 million)
EBITDA reaches EUR 34.4 million (PY: EUR 28.4 million)
Operative cash flow rises to EUR 61.4 million (PY: EUR 26.7 million)
Dividend to increase to 10 cents (PY: 8 cents)

Linz, 06.04.2016. S&T AG (www.snt.at) was able to register in 2016 new best marks for sales and earnings. Up 8%, sales came to EUR 503.7 million (PY: EUR 468.2 million). This was thus the first time that S&T broke the half-billion mark. The rises achieved in earnings outpaced that of sales. S&T's EBITDA rose 21% in 2016, going from EUR 28.4 million (2015) to EUR 34.4 million (2016). Consolidated income climbed to EUR 20.4 million (PY: EUR 17.6 million).

As had been the case in previous years, the main drivers of this growth were S&T's “Appliances Security” and “Appliances Smart Energy” segments, whose sales jumped 37% to EUR 183.0 million (PY: EUR 133.4 million), and whose EBITDA increased by 51% to EUR 23.7 million (PY: EUR 15.6 million). This was accompanied by a very moderate, 4% increase in costs, which rose from EUR 139.5 million (2015) to EUR 143.5 million (2016). Pursued in 2016 was the focusing of business on such fields of technology as the IoT (Internet of Things). This was complemented by February's sale of S&T's holdings in NES Corporation, USA, and by the sale of the weak-margin product business of MAXDATA in September. These divestments resulted in one-time costs of EUR 2.6 million. As of December 1, Kontron group has been consolidated.

S&T's cash flow is convincingly strong. It forms the basis for the financing of further growth. 2015's operative cash flow came to EUR 26.7. This was substantially and significantly increased in 2016 to EUR 61.4 million. Liquid funds amounted in 2016 to EUR 125.6 million (PY: EUR 60.3 million), with net cash coming to EUR 32.0 million (PY: EUR 9.4 million). Equity was increased by the earnings achieved and by the 10% increase in capital that was performed to finance the acquisition of Kontron. As of the balance sheet reporting date of December 31, 2016, equity came to EUR 241.1 million (PY: EUR 102.2 million). This translates into an equity ratio of 36% (PY: 32%).

S&T's earnings and liquidity are causing the company's Executive and Supervisory Boards to propose to the Annual General Meeting an increasing of the dividend to 10 cents (PY: 8 cents). For purpose of income taxes, the paying out constitutes a repayment of equity, in accordance with § 4 Paragraph 12 of Austria's Income Tax Act (EStG).

With this also being caused by the acquisition of Kontron AG, S&T AG's revenues from sales are to climb in 2017 to between EUR 860 - 890 million. The costs and write-downs ensuing from the restructuring of Kontron have already been accounted for in 2016. No further restructuring costs are to incur in 2017, in which Kontron's business is planned to contribute to the earnings. S&T's EBITDA is set to rise in 2017 well above EUR 50 million. S&T has set its sights on its sales breaking the EUR 1 billion mark in 2018!