EDAG Engineering Group AG: Most successful year in company history (news with additional features)

DGAP-Media / 2016-04-20 / 08:00

EDAG: Most successful year in company history

- Significant revenue increase in the core business, up 13.7% to EUR 722 million (previous year: EUR 635 million)

- Leading engineering services provider to the global automotive industry continues to deliver on growth strategy

- Adjusted core EBIT up 37% to EUR 73 million with a 10.1% margin

- Proposal for first-time dividend of EUR 0.75 per share

- Further growth of earnings and revenues expected in 2016

Arbon, 20 April 2016. EDAG, a leading independent engineering services provider to the global automotive industry successfully continues on its growth trajectory, reaching all its financial targets for the financial year 2015. The company, which has been listed for about five months, plans to pay a first-time dividend of EUR 0.75 per share to its shareholders. EDAG also anticipates further growth in the financial year 2016 and plans to increase revenues.

"2015 has been highly successful for EDAG," says Thomas Eichelmann, Chairman of the Board. "We succeeded in winning attractive orders. All our business segments have demonstrated earnings power and financial strength. We have also laid the foundations for future success by taking the company public. Today, EDAG is in an excellent position to permanently benefit from the strong opportunities in the market for engineering services - also in view of the expected market consolidation."

Group revenues increased by 13.7 percent year on year to EUR 722 million. Over the same period, the adjusted Group EBIT could be increased significantly to EUR 73 million, up from EUR 53 million in the previous year. Also, the operating margin of 10.1 percent substantially exceeded the previous 8.4 percent. Capital expenditures over the past financial year amounted to about 4.2 percent of sales revenues. The equity ratio could be improved from 24.2 to 32.6 percent.

EDAG Group also continues to grow its organisation - on 31 December 2015, EDAG had 8,063 employees (previous year: 7,401 employees) across 57 locations in major automotive centres of 19 countries.

Based on the very good results situation, the board of directors will recommend a dividend payment of 0.75 Euro per share at the general shareholder meeting on May 31, 2016.

Revenue and earnings growth across all businesses

EDAG's "Vehicle Engineering" business combines all vehicle development related services. From conceptualisation to design studies, the implementation of extensive testing processes and the use of new manufacturing procedures - EDAG has the comprehensive expertise to develop entire vehicles. Core revenues in this business increased by 9.0 percent to EUR 455.0 million. At the same time, the business grew adjusted EBIT-margin from 7.5 percent to 10.0 percent - the strongest performance in the Group.

The "Production Solutions" business supports the development and implementation of production processes globally, among other things by optimising manufacturing procedures or planning entire plant concepts. Core revenues in this business could be increased by 12.6 percent to EUR 119.8 million. The adjusted EBIT-margin increased from 12.0 percent to 13.1 percent.

The "Electric/Electronics" business combines all services related to the integration of electric or electronic components into sustainable vehicle concepts. It improved revenues to EUR 158.9 million, which corresponds to a 28.4 percent increase. Due to inhomogeneous capacity utilization, the adjusted EBIT-margin was at 7.3 percent after 8.0 percent in the previous year.

Positive outlook: expectation of additional growth

As an independent development partner of the automotive industry, EDAG operates in a dynamically growing market. On the basis of preliminary figures, EDAG has increased revenues to 182 million Euro in Q1 2016 after 174.7 million Euro in the previous-year period. The adjusted EBIT was at about 13 million Euro and therewith below the previous-year results of 17.5 million Euro. Substantial reasons for the deviation in the results were, each about half, the lower number of working days as well as a lower productivity compared to the previous-year period.

For the full year, the executive Management expects an increase in revenues in a range of 7- 10% and a moderate growth of the adjusted EBIT compared to 2015.


Proposed quotes:
Thomas Eichelmann, Chairman of the Board:

- "The significant increase of revenues and earnings is a strong proof point for our pursued growth strategy. We have further strengthened our leading position in the market."

- "After its successful IPO, EDAG has the necessary financial flexibility to further advance consolidation in the sector."

Jörg Ohlsen, CEO:

- "The market for services relating to the integration of electric and electronic components in sustainable vehicle concepts is growing rapidly - and we significantly drive this growth through landmark innovations delivered by our engineers and technicians. This enables us to confirm our positive guidance for financial year 2016."

- "In addition to continually developing and marketing successful innovations and strengthening our market position, we are also strongly growing our organisation - an approximate 10 percent headcount increase over one year is a clear sign that EDAG is an attractive and successful employer."

Selected financial information for financial year 2015

 FY 2014FY 2015Change (in %)
Core revenues (in EUR mn)63572213.7
Vehicle Engineering (in EUR mn)417.6455.09.0
Production Solutions (in EUR mn)106.4119.812.6
Electrics /Electronics (in EUR mn)123.8158.928.4
Adjusted Core EBIT (in EUR mn)53.272.910.1
Vehicle Engineering (in EUR mn)31.145.746.0
Production Solutions (in EUR mn)12.015.730.8
Electrics /Electronics (in EUR mn)9.911.516.2
EAT (in EUR mn)59.936.3-39.4
Net debt (in EUR mn)121.793.4-23.3
CapEx (in EUR mn)25.230.320.2
Equity ratio (in %)24.232.634.7

About EDAG

EDAG is an independent engineering services provider to the global automotive industry. The company serves leading domestic and international vehicle OEMs and sophisticated automotive suppliers through a global network of 58 sites in major automotive centres of the world.

EDAG offers complementary engineering services across its Vehicle Engineering, Electrics/Electronics and Production Solutions businesses. Based on these extensive capabilities, EDAG can support clients across the entire value chain from the original design idea to product development and prototype construction all the way to the delivery of turnkey production systems. As a technology and innovation leader, EDAG also operates established centres of excellence that design landmark technologies for future applications in the automotive industry, lightweight construction, electric mobility, car IT and new production technologies.

In financial year 2015, the company generated core revenues of EUR 722 million and an adjusted core EBIT of EUR 72.9 million. As at 31 December 2015, about 8,000 employees (including apprentices) worked for EDAG in 19 countries.

Press contact

Sebastian Lehmann

Tel.: +49-611-7375-168

End of Media Release

Additional features:

Subtitle: EDAG Soulmate

Issuer: EDAG Engineering Group AG
Key word(s): Services

2016-04-20 Dissemination of a Press Release, transmitted by DGAP - a service of EQS Group AG.
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