ANNUAL REPORT 2024
1 | 2 | 3 | ||
4 | 5 | 6 | ||
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1 KAPA®PLAST 19MM
KAPA®plast is a lightweight foamboard offering superb printability and crisp images, making it ideal for exhibition stands, window displays, POS/POP displays, and signage.
2 DISPA®RE
DISPA®re is a multi-layer paper board made from FSC®-certified recycled paper, featuring smooth, white surfaces and is ideal for hanging signage, and seasonal indoor advertising campaigns.
3 LUMEX® A
LUMEX® A are premium quality PET- sheets which show good printability with UV curing inks and are ideal for printed translucent signs, as well as small to medium sized displays.
- SWEDBOARD® FIBRE PREMIUM SWEDBOARD® Fibre Premium is a FSC® certified paper board with a dust-freecore and paper liners with a thin moisture barrier, offering excellent strength and design flexibility for POS/POP and in- store signage applications.
- DIBOND®DIGITAL
DIBOND®digital is an aluminum composite panel with an optimized lacquer system especially for direct to substrate digital printing.
6 CRYLON®RE
CRYLON®re are extruded acrylic sheets made from at least 95% recycled PMMA sheet waste, offering excellent optical properties and are suitable for various indoor and outdoor applications including digital printing.
7 SMART-X®
SMART-X® is a lightweight foamboard ideal for demanding visual communication applications, including outdoor use for up to two years.
8 FOREX®RE
FOREX®re is a lightweight expanded rigid PVC sheet made with approx. 30% recycled material content from post-industrial and post-consumer scraps, featuring smooth natural white surfaces ideal for large volume advertising print campaigns.
9 GP APEX™
GP APEX™ is a high-performance foam board, featuring an extremely flat, rigid and moisture- resistance structure that delivers striking digital printing results.
ABOUT SCHWEITER TECHNOLOGIES
FINANCIAL OVERVIEW
FINANCIAL OVERVIEW
2024 2023
INCOME STATEMENT (IN CHF M)
Net sales
EBITDA, adjusted1
EBITDA
EBIT, adjusted1
EBIT
Net income
BALANCE SHEET (IN CHF M)
Total assets
Net operating assets
Shareholders' equity
Net liquidity
STATEMENT OF CASH FLOW (IN CHF M)
Cash flow from operating activities
Cash flow from investing activities
Free operating cash flow
KEY FIGURES (IN %)
EBITDA in % of net sales1
EBIT in % of net sales1
Free operating cash flow in % of invested capital
Equity ratio
EMPLOYEES (FTE) AS OF 31 DECEMBER
Total employees
RATIOS PER SHARE (IN CHF)
Earnings per registered share
Equity
Payout2
STOCK MARKET CAPITALIZATION AS OF 31 DECEMBER (IN CHF M)
Stock market capitalization
1 011.3
90.9
72.2
45.6
23.1
12.9
1 069.9
602.6
720.1
51.5
85.7
-23.3
57.2
9.0
4.5
7.4
67.3
4 534
9.3
503
15.0
591.3
-
069.6
89.7
89.7
50.3
50.3
27.6
- 042.7
615.3
706.4
23.8
78.3
-42.4
40.2
8.4
4.7
5.2
67.8
4 598
19.3
493
15.0
743.1
- 2024: adjusted for Accelerate expenses, impact EBITDA: CHF - 18.7 million, impact EBIT: CHF - 22.5 million
- 2024: dividend proposal by the Board of Directors
ANNUAL REPORT 2024 SCHWEITER TECHNOLOGIES
ABOUT SCHWEITER TECHNOLOGIES KEY FIGURES
KEY FIGURES
NET SALES
in CHF m
1 160 | 1 227 | 1 198 | 1 070 | 011 |
1 | ||||
2020 | 2021 | 2022 | 2023 | 2024 |
EBITDA / %
in CHF m
15% | 12% | 7% | 8% | 9% |
176 | 152 | |||
86 | 90 | 91 | ||
2020 | 2021 | 2022 | 2023 | 2024¹ |
1 Adjusted for Accelerate expenses
FREE OPERATING CASH FLOW
in CHF m
114 | ||||
57 | ||||
35 | -12 | 40 | ||
2020 | 2021 | 2022 | 2023 | 2024 |
NET SALES BY SALES MARKET in %
12 1
2958
Europe | Asia |
America | Other |
EBIT / %
in CHF m
12% | 9% | 4% | 5% | 5% |
138 | ||||
111 | ||||
43 | 50 | 46 | ||
2020 | 2021 | 2022 | 2023 | 2024¹ |
1 Adjusted for Accelerate expenses
SHAREHOLDERS' EQUITY
in CHF m
720
EQUITY RATIO
67%
ANNUAL REPORT 2024 SCHWEITER TECHNOLOGIES
TABLE OF CONTENTS
ABOUT SCHWEITER | |
Letter to shareholders | 2 |
Business performance | 4 |
Management and risk assessment | 6 |
Portfolio strategy | 7 |
Operating segment 3A Composites | 8 |
SUSTAINABILITY | 25 |
CORPORATE GOVERNANCE | 75 |
COMPENSATION REPORT | 99 |
Report of the statutory auditor | 115 |
CONSOLIDATED FINANCIAL STATEMENTS | 119 |
Report of the statutory auditor | 164 |
ANNUAL FINANCIAL STATEMENTS OF SCHWEITER TECHNOLOGIES AG | 169 |
Report of the statutory auditor | 176 |
INFORMATION FOR INVESTORS | 179 |
Information for investors | 179 |
Five-year review | 180 |
Dates and contacts | 181 |
GLOSSARY | 182 |
1 ANNUAL REPORT 2024 SCHWEITER TECHNOLOGIES
ABOUT SCHWEITER TECHNOLOGIES
LETTER TO SHAREHOLDERS
LETTER TO SHAREHOLDERS
Dear Shareholders
In 2024, the markets were impacted by several demanding conditions and this led to a limited business visibility. Political uncertainties in many countries created muted investment and consumer sentiment. The European economic weakness continued, driven by high interest rates, only partially compensated by a strong American market. Raw material prices remained volatile.
This challenging business environment resulted in net sales declining by 5% (4% currency adjusted) to CHF 1 011 million for Schweiter Technologies. At the same time, the Group was able to increase the EBITDA to CHF 91 million (9%) adjusted by the one-time expenses related to the "Accelerate" performance and innovation program. The EBITDA profitability went up by 0.6%-points despite lower net sales. The adjusted EBIT reached CHF 46 million (4.5%). The continued focus on free operating cash flow yielded good results and recorded CHF 57 million. This translates to an improved return on invested capital of 7.4% (vs. 5.2% PY). The net cash position improved to CHF 51 million.
For Schweiter Technologies, the year 2024 was a transition year towards sustainably higher profitability. The strategy has been sharpened for the lightweight composite material business named 3A Composites. The business development is fueled by the key trends of weight reduction, enhanced material functionalities, sustainable materials, renewable energy and increased mobility. The company communicated mid-term financial ambitions and the new claim "Making life lighter and more colorful" at the Innovation & Capital Markets Day. The company also reshaped the 3A Composites leadership team with strong internal talents and external experts to expedite the company performance.
In 2024, the company launched and completed the performance and innovation program "Accelerate". It optimized the production footprint by closing sites and by cost reductions across all entities. Further, the Group concentrated the efforts to automate new production lines and to bring innovations to the markets. The "Accelerate" program came with one-time costs of CHF 22.5 million to generate run-rate savings of around CHF 10 million, effective in 2025 already.
The Display business performed quite resiliently in Europe and North America. The business though witnessed in Europe high raw material volatility. Particularly in the second semester, abrupt clear-sheet raw material price declines led to limited sales to distribu- tors. The Group closed a clear-sheet production site in Mainz in order to reduce its exposure to this challenged segment. The Display business made good progress to transform the solution product portfolio towards more sustainable and profitable solutions. In Europe, the house of brands has been expanded with products based on up to 100% recycled materials under the brand addition "RE". The customers also appreciate the lead of the company in measuring the sustainability of the products with the own "FIVE-DOT- Mission" scoring concept. In the USA, the innovation "GP APEX™" has been launched featuring an extremely flat high-performance foam board delivering striking digital print results.
2 ANNUAL REPORT 2024 SCHWEITER TECHNOLOGIES
ABOUT SCHWEITER TECHNOLOGIES
LETTER TO SHAREHOLDERS
The results in the Core Material business were subdued this year. The wind energy market suffers from PET overcapacities in China, resulting in price erosion, and from slow project approvals in Europe. On the other hand, an encouraging demand for the innovative solutions of 3A Composites can be seen in the Americas. Additionally, the business further capitalized on the recently acquired kitting capabilities. As part of the sharpened strategy, the activities in the marine and technology customer segment have been strengthened. The balsa business performed well for wind and non-wind applications and the Group is proud to have a unique carbon sink with the 15 000 hectares of FSC®-certified plantations.
A bright spot in the business portfolio was the Architecture business. It was growing mid- single digits, although at different rates globally. The business in North America recorded strong results benefitting from the strong economy, building on the premium brand ALUCOBOND® and it further penetrated into new markets of residential constructions with EasyFix and FaceFastened. The innovation Monarc™ opens new doors to the interior building market. The business in Europe was impacted by the weak economic construction market conditions. Finally, the smaller business in Asia suffered with a shrinking market in China while the business in India and the Middle East developed well in dynamic markets.
Transport and Industry generated weaker results. Demand for industrial thermoforming solutions and for rail and road markets experienced notable slowdowns. Hence the company focused its efforts on the "Accelerate" footprint optimization and on developing new product innovations for enhanced, functional performance materials.
The Board of Directors proposes a dividend of CHF 15 per registered share for the year under review. Schweiter Technologies has a solid balance sheet with an equity ratio of 67%.
The year 2025 started with a continuation of political and economic uncertainties. Cur- rently, a flat net sales development is expected for the full year with a weaker first and some recovery in the second semester. The Display business should be quite robust and will further progress with its product portfolio transformation. Attractive opportunities can still be seen in the Architecture business in the Americas and the geographical market penetration in China and India will lead to a broader customer base. The Core Material business is expected to gain market share with its competitive product range of PET and balsa. Improved profitability is expected, driven by the realization of the "Accelerate" measures and continued strong focus on operational excellence measures in particular in procurement.
A sincere thank you goes to our motivated and experienced employees around the world for their tireless commitment and great dedication. Our talents are the foundation for the company's success. The Board of Directors and the Group Executive Management are convinced that the Group has taken the right measures in innovation, sales management and cost measures for a sustainable higher profitability with double-digit EBITDA margins and for higher return on invested capital over the cycle.
Yours sincerely,
Dr. Heinz O. Baumgartner | Roman Sonderegger |
Chairman of the Board of Directors | Group CEO |
3 ANNUAL REPORT 2024 SCHWEITER TECHNOLOGIES
ABOUT SCHWEITER TECHNOLOGIES
BUSINESS PERFORMANCE
BUSINESS PERFORMANCE
Our markets were impacted by economic and political uncertainties throughout the year, especially in Europe overall and in China for Core Materials in the wind energy industry. Subdued demand in these key markets weighed on the Group re- sults.
The Group sharpened its business strategy and implemented the performance program "Accelerate" to shape the operations for sustaina- ble, profitable growth. The performance program "Accelerate" was executed as planned and fully reflected in the reported numbers with one-time cost impacts on EBITDA of CHF 18.7 million and on EBIT of CHF 22.5 million.
Excluding "Accelerate" impacts, EBITDA after currency adjustments rose by 3% to CHF 90.9 million (previous year: CHF 89.7 million) while EBIT reduced by 7% to CHF 45.6 million (previous year: CHF 50.3 million). Net liquidity reached CHF 51.5 million at year-end and the equity ratio was 67%.
Reported financial figures, including one-time "Accelerate" cost impacts were as follows: Net sales fell by 4% to CHF 1 011.3 million after currency adjustments (previous year: CHF 1 069.6 million). EBITDA reduced by 18% to CHF 72.2 million (previous year: CHF 89.7 million) and EBIT reduced by 53% to CHF 23.1 million (previous year: CHF 50.3 million), while net income fell to CHF 12.9 million (previous year: CHF 27.6 million). Free operating cash flow improved to CHF 57.2 million (previous year: CHF 40.2 million), driven by a set of measures in trade working capital and capital expenditures.
At the Annual General Meeting on 9 April 2025, the Board of Directors will propose paying a dividend of CHF 15 per registered share.
At year-end, the headcount stood at 4 534 (previous year: 4 598), including 1 346 employees in balsa plantations and sawmills in Ecuador and Papua New Guinea.
In 2024, the Architecture business was strengthened with the acquisition of a majority holding of 60% in Jiangsu ZNL Coating New Materials, China,
creating opportunities for growth in China and the Asian markets in particular.
At the organizational level, the 3A Composites management team was strengthened through the appointment of a new leader for North America and a new responsible for the European and Asian Architecture businesses under a single leadership. In addition, 2024 marks the first full year with Europe's focused and agile management structure along the three business areas of Display, Archi- tecture, and Industry.
4 ANNUAL REPORT 2024 SCHWEITER TECHNOLOGIES
ABOUT SCHWEITER TECHNOLOGIES
BUSINESS PERFORMANCE
NET SALES 2024 BY BUSINESS AREA
TRANSPORT & INDUSTRY | DISPLAY | |||||
CHF 159 million net sales | 16% | CHF 417 million net sales | ||||
- Vehicle | 41% | - Visual communication | ||||
- Rail | - Retail & Services | |||||
- Construction & Others | 21% | - Light & Illumination | ||||
ARCHITECTURE | CORE MATERIALS | |||||
CHF 214 million net sales | 22% | CHF 221 million net sales | ||||
- Public infrastructure | - Wind | |||||
- Commercial / Office | - Marine | |||||
- Residential | - Technology & Others |
5 ANNUAL REPORT 2024 SCHWEITER TECHNOLOGIES
ABOUT SCHWEITER TECHNOLOGIES
MANAGEMENT AND RISK ASSESSMENT
MANAGEMENT AND RISK ASSESSMENT
MANAGEMENT SCHWEITER TECHNOLOGIES
Roman Sonderegger
Dr. Urs Scheidegger
Chief Executive Officer Group
Chief Financial Officer Group
RISK ASSESSMENT
The risk assessment and risk management within the Group are conducted on several levels and reflect the decentralized structures of Schweiter Technologies.
The individual Group companies are responsible for determining, evaluating, and managing local risks. A systematic identification of higher- ranking risks that could have a significant impact on the Group and its business activities is carried out at Group level. The risks identified are classified according to the criteria of probability of occurrence and potential impact. Where necessary, individual risks are analyzed in greater depth and measures are taken to minimize these risks.
The Board of Directors discusses the higher- ranking risks to the Schweiter Technologies Group at least once a year. The last risk assessment by the Board of Directors was performed in December 2024.
6 ANNUAL REPORT 2024 SCHWEITER TECHNOLOGIES