DGAP-News: Viscom AG: 2020 - a year of major challenges. Effects of the COVID-19 pandemic impede the course of business.

Viscom AG: 2020 - a year of major challenges. Effects of the COVID-19 pandemic impede the course of business.

Revenue: € 29,468 thousand (previous year: € 42,395 thousand)

Incoming orders: € 25,304 thousand (previous year: € 40,044 thousand)

Order backlog: € 11,775 thousand (previous year: € 22,619 thousand)

EBIT: € -3,873 thousand (previous year: € 1,611 thousand)


Hanover, 12 August 2020 - Since the start of 2020, coronavirus has turned into a global pandemic. In order to slow the spread of the virus, virtually every country took measures that also slowed economic activity massively. Not even the Viscom Group was spared the effects of the COVID-19 pandemic. Economic activities were severely restricted, which had a negative impact on the Group's business. In the first half of 2020, incoming orders and revenue fell by 36.8 % and 30.5 %, respectively, year on year. Supply chains broke away; customer orders were not placed or were postponed. Production at the Hanover site was driven down - in June, 254 of the 380 employees were working reduced hours to varying degrees. The management nevertheless sees light on the horizon. Viscom customers' and suppliers' production chains are slowly getting started again, and customer enquiries are increasing.

In the first half of 2020, Viscom generated revenue of € 29,468 thousand (previous year: € 42,395 thousand). The current economic situation and the associated investment restraint on the part of customers also weighed on incoming orders, which amounted to € 25,304 thousand (previous year: € 40,044 thousand). Operating profit amounted to € -3,873 thousand in the first six months of the current financial year, down on the figure for the same period of the previous year (previous year: € 1,611 thousand). The main reason for the change as against the previous year was the drop in total operating revenue. Various cost-reduction measures were introduced in response to the considerable decline in total operating revenue. In addition to the € 1,968 thousand decline in staff costs, the result of reducing working hours, using up holiday and overtime and not filling vacant positions, earnings benefited in particular from the € 1,615 thousand decline in other operating expenses, due mainly to the reduction in temporary workers and reduced costs for travel, trade fairs, advertising, events and maintenance, and the increase in other operating income due to compensation for reduced working hours.

Europe was the Viscom Group's strongest region, accounting for around 72 % of total revenue. It generated revenue of € 21,277 thousand in the first six months of the 2020 financial year (previous year: € 27,330 thousand) and was thus 22.1 % below the previous year's level. Revenue in Germany amounted to € 12,067 thousand (previous year: € 15,399 thousand). Segment earnings in the Europe region totalled € -3,654 thousand (previous year: € 1,372 thousand), corresponding to a margin of -17.2 % (previous year: 5.0 %). This decrease was largely due to the effects already discussed under operating profit.

In the Americas region - like in all industrialised nations - the market was influenced by uncertainties over the COVID-19 pandemic. Even in the age of coronavirus, however, interest in inspection systems is unabated in all industries and regions of the USA and Canada. The service business performed somewhat better again. Segment revenue in the region decreased by around 21 % from € 5,838 thousand to € 4,632 thousand. Due to higher intersegment revenue and cost savings realised among the other operating expenses, segment earnings amounted to € 451 thousand (previous year: € 180 thousand), corresponding to a margin of 9.7 % (previous year: 3.1 %).

With Chinese New Year falling early in January, and being followed almost immediately by the COVID-19 lockdown in China, demand for products from Viscom's customers - cars especially - crashed in the first quarter. In the Asia region, Viscom used the second quarter to compensate for the negative segment earnings of the first quarter by way of savings measures, slightly improved business - especially in the People's Republic of China - and higher intersegment revenue. Revenue in the Asia region amounted to € 3,559 thousand (previous year: € 9,227 thousand) with an operating segment result of € 34 thousand (previous year: € 5 thousand), equivalent to an EBIT-Margin of 1.0 % (previous year: 0.1 %). Demand for services, such as production-supporting measures for launching products and start-up phases for large customers, is growing in China in particular.

Viscom AG has spent the last few months working hard to reorganize internally at the headquarters in Hanover. The reorganisation of Viscom AG includes the establishment of customer care teams for every product area. The new teams will provide European customers with support and assistance in the selection of the right inspection solution, procurement, commissioning, training and maintenance. This is intended to reduce processing times and ensure that customer-specific requirements can be implemented comprehensively and as needed. Customer interfaces have thus been internally reorganized and the groundwork laid for greater customer proximity and better service availability. The new customer care teams are made up of specialists from the product areas AOI, AXI, MXI, Bond Inspection/IBV, SPI, CCI and from application areas such as battery inspection, 5G, e-mobility and consumer electronics. The teams cover specialist sales, project management, application and service as well as the hotline, in order to provide customers with expert and targeted guidance throughout the product life cycle. The new customer care teams replace the former SP and NP business areas, creating a streamlined, service-oriented and enduringly successful organisation. The sales organisation also contains direct sales, key account management and regional cooperation with European sales representatives, who remain key contacts for Viscom customers. For their specialist customer support, the customer care teams will also draw on the expertise of specialists in central service and product development. This realignment was the second step after the successful redesign of product and software development, which is working at full speed on pioneering innovations so that Viscom can continue to enthral with advanced inspection solutions of the highest quality. With this new direction, the company has paved the way for strong and proficient teamwork at every level.

The company also believes it is well positioned to return to sustainable and profitable growth after the crisis in terms of technology: The range of applications for the new AXI system kit has increased. The first battery inspection systems for testing round cells are to be delivered in the third quarter of 2020. A prototype for testing pouch cells, which are used in electric cars, smartphones and tablets, will also be built in the third quarter of 2020. Interested parties have also been found for the variant for testing large and heavy assemblies in the electromobility segment. The first orders from Asia and the USA are expected here in the next few months. This development goes hand in hand with the successful installation of new technology for the fast capture of visual information for planar computed tomography: In a much reduced period of time, a very large number of X-ray images is produced, which can now be used in real time for the tomographic analysis of solder joints, components and batteries. Both the established inline X-ray systems for assembly inspection and the variants of the X7059 are benefiting from this.

The mechanical engineering firm from Lower Saxony is facing serious challenges in 2020, but believes it is well positioned to return to sustainable and profitable growth after the crisis. "Our inspection systems have been convincing the market for 36 years now. We will work hard and exploit our opportunities in order to achieve our goals," says Dr Martin Heuser, founder and member of the Executive Board of Viscom AG.

The consolidated interim report as at 30 June 2020 is available now in the Investor Relations section of the website at www.viscom.com.

OPERATING FIGURES

SEGMENT INFORMATION

About Viscom

Viscom AG develops, manufactures and sells high-quality inspection systems. Its product range covers the full range of optical inspection and X-ray inspection. The company is a leading global provider in the field of assembly inspection for electronics manufacturing. Viscom's systems can be configured for each individual customer and networked. Its headquarters and manufacturing site are in Hanover. With a large network of branches, application centres, service centres and representatives, Viscom is represented all over the world. Established in 1984, Viscom AG has been listed on the Frankfurt Stock Exchange since 2006 (ISIN: DE0007846867). Further information can be found at www.viscom.com.

Any forecasts, expectations or statements concerning the future included in this release may be subject to risk or uncertainty. We therefore cannot guarantee that the expectations will prove correct. Actual results and developments may differ significantly from the expectations and assumptions expressed. The factors that could cause such deviations include changes in the general economic and competitive situation, exchange rate and interest rate fluctuations and changes in national and international law. The company assumes no obligation to update the forward-looking statements in this release.

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Contact:

Viscom AG

Investor Relations

Anna Borkowski

Carl-Buderus-Str. 9-15

30455 Hannover

Tel.: +49-511-94996-861

Fax: +49-511-94996-555

[email protected]