Lenze Group has continued its course of growth for 2017/2018 and exceeded key financial targets. Group revenue increased in the reporting year by 9.2% to a new record of EUR 741.0 million, far surpassing original expectations. Organic revenue growth, adjusted for currency effects, amounted to 11.2%. Operating results (EBIT) also reached a new high, rising by 12.3% to EUR 65.7 million. The EBIT margin rose to 8.9%. Net income grew by 21% as a result of a favorable tax ratio performance.
Building on decades of mechatronics experience, Lenze is bolstering its position as a global systems partner for integrated machine automation as part of implementing its 2020+ strategy … largely through scalable hardware.
The Mechatronics and Automation Systems divisions are benefiting from the company’s growth momentum. The revenue of the digital division likewise developed positively in the reporting year. Setting the pace in global factory automation, Lenze has a considerable competitive advantage with its two subsidiaries:
• the Bremen CPQ specialist Encoway
• the software company Logicline based in Sindelfingen, Germany
These subsidiaries let Lenze provide digital services and solutions along the entire value chain … for Industry 4.0 and the Internet of Things (IoT) functionalities — such as remote and predictive maintenance, big data management and analytics, virtual reality, and working with digital twins.
Lenze also invested in developing global sales — and focused sales activities on five high-growth sectors: automotive, consumer goods, converting and printing, intralogistics, and textiles. In these industries, the company can effectively implement application competencies for production processes. In fact, over the last fiscal year Lenze has completed more than 1,000 customer projects.
In terms of product development, the company has been pursuing a platform strategy to accelerate innovation cycles, boost market penetration, and support cost-effective design for lean production. Case in point: i500 frequency inverters and i950 servo inverters (launched this financial year) enable consistent automation platforms.
Lenze saw the greatest absolute revenue growth in Europe. With a sales increase of 18.6%, Asia recorded the largest rise in percentage terms … and strong sales in the U.S. continued. Lenze also increased profitability with strong revenue growth. Operating result (EBIT) rose by 12.3% to EUR 65.7 million, reaching a new high. The EBIT margin increased to 8.9%. The return on capital employed (ROCE) grew in the financial year 2017/2018 by 1.2 percentage points to 23.5% (previous year: 22.3%).
All in all, the Lenze Group generated a gross cash flow from operations of EUR 62.3 million (previous year: EUR 56.1 million) – prerequisite for financial strength and stability. The company therefore has sufficient scope for investment. At the Extertal location in North Rhine- Westphalia, for example, a major future project for Lenze is currently being developed with the Mechatronic Competence Campus (MCC). Overall, the company will be investing approximately EUR 50 million in the location until planned completion of the new mechatronics campus in 2020.
Equity capital also improved. With a balance sheet total of EUR 483.1 million, equity capital amounted to EUR 321.3 million (previous year: EUR 299.0 million). This corresponds with an equity ratio of 66.5% compared with 64.1% in the previous year. In addition, the Lenze Group has net financial assets totaling EUR 63.0 million (previous year: EUR 59.4 million).
The Executive Board considers Lenze to be very well-positioned, both strategically and financially, “We want nothing less than to set the pace for global factory automation and to be at the very front of shaping digital transformation,” explains Chair of the Executive Board Christian Wendler. Wendler expects moderate growth for the financial year 2018/2019. “We are pursuing the growth strategy and investing disproportionately in sales channels, R&D, and digital services.”
Lenze reaffirms its intention to increase its revenue to EUR 850 million by the financial year 2020/2021. The automation specialist is more aiming for the one billion mark by leveraging the opportunities of digitalization in the years to come.
|Revenue in EUR millions||741.0||678.3||+9.2%|
|EBIT in EUR millions||65.7||58.5||+12.3%|
|EBIT margin in %||8.9||8.6||+0.3% points|
|Return on capital employed (ROCE) in %||23.5||22.3||+1.2% points|
|Gross cashflow in EUR millions||62.3||56.1||+11.1%|
|Investment in EUR millions||22.4||11.5||+94.8%|
|Equity ratio as %||66.5||64.1||+2.4% points|
|Net financial assets in EUR millions||63.0||59.4||6.1%|
|Employees as at 30.04.2018||3,715||3,457||+258 (+7.5%)|
Lenze presents other information about its business operations for specific groups via 30-second multimedia clips at annual-report.lenze.com.