YEARLY REPORT 2015

YEARLY REPORT 2015
UTECO CONVERTING S.p.A.
Viale del Lavoro, 25 - 37030
Colognola ai Colli (Vr) - ITALIA
NORTH
AMERICA
AMERICA
UTECO NORTH AMERICA INC.
3400 Town Point Drive
Kennesaw GEORGIA - USA
UTECO Group
YEARLY REPORT 2015
Headquarters
Plant 1
Plant 2
Plant 3
DATI DEL
GRUPPO
01
REPORT ON OPERATION FOR THE FINANCIAL YEAR ENDED
31ST DECEMBER 2015 - UTECO CONVERTING S.P.A. (excerpt)
The Financial Statement for the year 2015
submitted for your approval by our Board of
Directors shows a net profit of € 9,018,187
(net profit in 2014 was € 7,791,692), this figure takes into account the provision for tax and
duties of € 3,850,459, recorded deferred tax
liabilities of € 189,458 (as illustrated in detail
in the explanatory notes) and also takes into
account depreciation and write-downs of €
1,684,057 (compared to € 1,350,401 in 2014).
It should be noted that the group’s yearly
results have been considerably impacted on
by the elevated profit obtained by its Uteco
North America branch, as detailed in the following paragraphs.
The following contributory factors have had
a significant impact on these results, which
confirm forecasts made at the middle of 2015:
-Increase in production volumes as a result a
gradual growth in order collection, as shown
throughout the year 2015.
- The retention of sales margin averages.
The financial year 2015 closed with good results regarding product value, sales value and
margins.
Order collection almost reached € 110 million
which is a satisfying result even taking into
account the fact that two orders from 2014
with the value of around €3 million were moved into 2015.
Production value figures rose from € 107 million in the previous financial year to €115million, resulting in an increase of € 8m (+7.47%)
Annual Invoiced Sales figures have shown a
growth reaching € 112 million, an increase of
17.89% (compared to € 95 million in 2014).
The difference between production value
and costs increased from € 11.4 million in
2014 to € 14.4 million in 2015, an increase of
26.36%.
From a financial point of view the company’s
liquid assets have grown from € 11.2 million
at 31.12.2014 to € 22.2 million at 31.12.2015
showing a strong increase of € 11 million.
In this context it is necessary to point out that
the net financial position used in this prospectus differs to that shown in the cash flow
statement inserted in the explanatory notes.
The latter has in fact been determined based
on the recommendations contained within
the new Italian Accounting Standard OIC 10,
meanwhile the former is ascribable to management criteria and also includes in the
cash and cash equivalents the investments
in financial activities indicated in the currents
assets with a value of € 8,000,000 (compared
to € 6,000,000 in 2014) and net bank debts of
€ 170 (compared to € 3,700,089 in 2014).
As can be seen from the prospectus below,
the increase in liquidity has been generated
by the following changes:
Self-financing of € 9,597,893;
a decrease in working capital of € 7,038,377;
an increase in fixed assets of € 2,111,716;
dividend payments of € 3,000,000;
other negative variations of € 496,254
The improvement in working capital was
mainly arrived at due to a reduction in credit towards third party clients of € 1,188,826,
a reduction in inter-company credit of €
833,740, a credit reduction towards others of
€ 248,812 and a reduction in accruals and deferrals of € 190,573.
The following factors have also led to an
improvement in working capital, an increase in debt to suppliers of € 1,761,732, an
increase in down payments from clients of
€ 3,732,842, an increase in debts to other
parties of € 862,311 and an increase of intercompany debt of € 156,716.
A decrease in working capital was noted as a
result of an increase in inventory values of €
1,914,617 and an increase in down payments
to suppliers of € 22,558.
2818 INSTALLATIONS WW
EUROPE (W/O ITALY)
1012 Installation
Dec 2015
ITALY
702 Installation
Germany
CANADA
81 Installation
UTECO
ITALIA
U.S.A.
357 Installation
UTECO
NAM
CHINA
11 Installation
China Sales & Service Point
MIDDLE EAST
91 Installation
CENTRAL AMERICA
70 Installation
SOUTH EAST ASIA
28 Installation
INDIA
10 Installation
South East Asia Sales & Service Point
AFRICA
69 Installation
SOUTH AMERICA
327 Installation
AUSTRALIA / N.Z.
59 Installation
REPORT ON OPERATION FOR THE FINANCIAL YEAR ENDED
31ST
DECEMBER 2015 - UTECO CONVERTING S.P.A. (excerpt)
The company, located in Town Point
Drive, Kennesaw, Georgia, USA, has the
function of guaranteeing commercial
& technical assistance for UTECO large
American Clients. As such they have
their own warehouse in order to satisfy
the requests of spare parts and components of our American clients as quickly
as possible.
Turnover
€ 5.191.659
Gross Profit
€ 594.148
Net Profit
€ 596.057
These results have contributed, along
with those already summarized of
Uteco Converting SpA, to the Group’s
consolidated results reported below.
Uteco North America Plant, Kennesaw, Georgia
Open House March 26 2015. Live demonstration on Diamond 108 HP
02
DIAMOND HP
Uteco’s excellence in flexographic printing.
Max speed 600 m/min
03 MARKET POSITION SCENARIO
Throughout the course of 2015 the machine production industry for flexible
packaging and paper has continued to
show diversified trends in macro-regions
of the market, in single countries, in product/technology typologies and periods
of the year.
Export, with growth areas and others in
“stand-by” (notwithstanding contradictory signals in emerging countries) has
been confirmed as the current principle
force in the world economy and for Italian and European producers.
Even at a client group level, investment
trends vastly differ in packaging for Food
& Beverage, Health, Animal Foods, Construction and Industry, Paper Industry,
Security and all other possible sectors
open to our Printing and Converting
clients, in all world markets, as we await
a global recovery and stability.
dium Printing and Converting companies in both European and non-European countries to large multinational
groups in Europe, America and Asia.
- All the vast technological applications:
Not only in the Flexo core-business (EB,
UV e LED advanced, “green”, C.I. Drum
and in line, high velocity, flexibility and
automation for all formats, wide and medium and medium/narrow web), but also
Rotogravure, Offset, Hybrid Flexo-Digital
Ink Jet and other technological applications which are unique and innovative in
the many diverse sectors of packaging
and extra-packaging.
Within this above mentioned diverse
market climate, the Uteco Group has
strengthened its market leadership at
volume and technological levels (which
have undergone a continuous growth
even in the recession years of 2008/2009
and also from 2010-2014), showing an
ever more widespread presence in:
- All the world macro-areas, including
emerging countries.
- All Clientele areas; from small and me-
• In the continued increase of production
capacity made possible thanks to the
new plant in Italy, investments in new
modern machines (numerical control
machine) for the mechanical production
of high precision parts, manufacturing
partnerships in Italy and abroad.
• In the constant organisational improvements and developments.
• In specific plans of efficiency optimisation and the continued implementation
Even in 2015 this continued trend in
volume growth is built not only on the
existing solid foundations in commercial Value Leadership and its renowned
worldwide customer service but also:
of quality and in the flexibility of the process and the product.
•In the technological/planning/costing
partnerships and co-makerships with
strategic suppliers, making it possible to
overcome the accompanying negative
effects such as:
a) multi-track demand which, as already
highlighted, is difficult to plan for in the
middle term.
b) a strong revival of certain acquisition
costs.
c) the actions of our European and global competitors in pushing down market
prices for machines.
d) the problems facing our clients regarding access to credit, not only in Italy.
In more detail, the main factors of principle importance are:
-The definitive consolidation in all markets and for every clientele areas of the
Flexographic central drum range: from
Onyx (the highest selling flexographic
machine in the world, of which nearly 40
units per year have been produced in the
last 10 years) to the top of the range HP
Diamond as always providing evermore
performance based versions relating to
quality, velocity, flexibility and automation, from the entry level Topaz, to the
new Crystal range and the most recent
NEXT 450
Peak performance in gravure printing for short and medium runs. Equipped by an efficient and
noiseless ventilation/drying system Cube System® (Patented)
MARKET POSITION SCENARIO
Compact Onyx XS range designed for
short jobs which has an enormous immediate success in label printing.
- The continued development of new
versions of flexographic machines for
diversified applications, of which we
can use the following as examples: a)
the Pre-Print Wide-Web range, b) The SIL
Onyx - Crystal in line ranges also available with the inert UV curing system, c)
The innovative, unique and patented “EB
Green” new technology, which has already been tested and installed with many
of our clients including those who are
global leaders in Sanitation and Health
Care whose “skin contact” products require the highest printing quality possible. This machine has also been installed
in other applicable packaging fields.
- The huge success of the new range of
rotogravure machines “NEXT 450”, a highly technological machine with advanced performance, amongst the principle
rotogravure users in Italy and the rest of
the world. This machine has been constructed in our third Italian plant and
flanks the “entry level” V-PRESS range
constructed in Asia for emerging markets.
- The above success has been mirrored
in the laminating field with the IZAR and
MIRA ranges produced in Piacenza and
the MISTRAL range produced in Verona.
- The increased diversification towards
ranges and special machines, which
consolidates UTECO’s place as a world
leader in innovation in very specified
markets, niche markets and to be able
to meet the needs of any particular
client, not only in Flexographic printing
and Rotogravure printing of film, paper and tissue, but also for converting
in general, in offset, in the integration
of digital technology into their flexographic printing for hybrid solutions or
developing high performance digital
lines for flexible packaging, in laminating an coating in avant-garde markets,
for example, the health sector, the aeronautic sector and the security sector.
- The success in innovation in the fields
of mechanics, electronics and technology of the machines and printing
processes (tested at Uteco’s Centre of
Excellence “Converdrome”, recently
enlarged in conjunction with the construction of the new Uteco 3 plant in
Italy), which have allowed for a further
increase in performances, finished product quality, operational-control-automation system processes, productivity
and flexibility, economical operations,
time-savings, materials and consumables (resulting in a contained energy
and environmental impact), and consequently all other possible applicable
04
options in an ever expanding market in
comparison to its traditional origins, with
new innovative patents alongside those
already recognised at international level
and ensuring we remain integrated with
the future Industry 4.0.
Among the above mentioned issues it
is not only the automated control systems for the printing pressure or colour
matching that are included, but also all
developments in the systems for inking,
the aforementioned UV and new generation EB drying systems, laser applications
for die-cutting, metallisation and other
special operations and, finally, hybrid
solutions such as Flexo/offset and Flexo/
digital inkjet.
-The uninterrupted development of our
sales network which has a stronghold in
all geographical areas, with the foundation in Europe and Asia (and in the near
future also in other areas of the world)
of branch offices and Service Centres,
brings us important sales in these areas
from local printing businesses to production sites of large multinational groups:
with the latest being South-East Asia,
South Africa and Germany (where we
have signed up to the important DFTA
Institute taking part in the first technological events and seminaries in Germany).
Our objective is to duplicate the success
experienced with Uteco North America,
CRYSTAL
Excellent quality and low waste flexo printing
ONYX XS
The compact flexographic press for very short
runs. Print width 600/1000 mm
05 MARKET POSITION SCENARIO
which in 2014 was doubled in size,
worldwide.
- The constant drive of our Research
& Innovative Technology and Product
Development team, which is a result of
the investment made by our specialised
staff, of means and instruments, along
with strategized partnerships with suppliers, large packaging end-user groups,
international and Italian businesses in
the food & packaging sector, health sector and possible new high-tech niche
groups, along with research projects carried out in conjunction with Universities
and Institutes both in Italy and throughout the world (e.g. the optimisation of
EB printing for products that come into
direct contact with food or human skin,
nanotechnology, electronic printing in
the future new frontiers of home automation and Smart-Active packaging).
- Optimisation and growth in terms of
quality, response times, flexibility and
efficiency of all internal procedures,
with the continued implementation
of systems such as 6Sigma/Lean, kanban, SAP, CRM..., and also massive investments in highly precise machineries
for our strategic internal production, for
example the purchase of a new numerical controlled machine with movable
crossbeam and 5 FTP axles.
- The ability to further establish ourselves as champions of the “Made in Italy”
symbol, with an export quota that
exceeds 80%, as absolute leaders of
printing technology and converting
especially in flexible food packaging as
underlined during our participation during 2015 at the IpackIMa/Converflex
Milan which was run in conjunction with
the EXPO 2015 and during the events to
celebrate the 30th anniversary of Uteco
such as demonstrations/Open House/
Partners and Suppliers Days and Family
Day. All of these factors, along with a
sound financial standing, have allowed us
to further consolidate the growth that was
evident from 2010-2014 in 2015 and also
launch massive investment plans in terms
of human resources fully taking advantage
of the recent Italian Jobs Act legislation.
With regard to the investments, it must be
remembered that, other than the financial
figures reported in the following section,
certain other factors must be taken into
account such as the huge financial commitments undertaken and the amount
of resources employed in the numerous
above mentioned strategic technological
developments, both in terms of machines
built ad hoc for R&D trials and innovations
– even if in some cases these machines
were constructed with specific clients or
users in mind and who would later use the
machine – and in the related technological
costs. In a global context, the level of investment represents between 3% and 5%
of the Groups turnover.
LASER APPLICATION
TREND 2016 - BUSINESS PLAN 2016-2018
Significant events that have taken place after the close of the business year
and foreseeable management evolution
The first few months of 2016 have continued to show, and indeed further accelerate, a strong growth in sales volumes.
This growth is evident not only throughout our vast and ever growing flexographic core-business lines - which was
further enhanced during the course of
2015 by the addition of the already mentioned new machines and technology
– but also in innovative developments,
such as EB Green Advanced which has
been expanded to new applicable sectors, LED medium-web and again in our
Rotogravure range where the success of
the new generation NEXT line is continuing to sell well both in Italy and abroad.
The Group’s dedication to the development of new products and technologies will receive the acclamation it deserves when it is showcased at the very
important international DRUPA exhibition in Dusseldorf in May/June 2016. For
the very first time Uteco has been welcomed to situate its stand in the main
pavilion thus taking its place alongside
the large multinationals recognising its
place as a leader of the Made In Italy
symbol as already recognised in Germany, thanks to our registration to the
DFTA Institute and for our participation
as speaker in various field conventions.
During this exhibition the Uteco Group,
in conjunction with its “Converdrome”
plant - will present all of the aforementioned innovations, some of which will
be being utilised in the stands of our
strategic technological partners.
The DRUPA exhibition represents a litmus test for verifying worldwide market
trends which in some cases are showing signs of stagnation or recession and
growth in others particularly in food
packaging.
The Uteco Group is ready and is further
equipping itself to take on all market and
technology challenges that lie ahead by
following through with the already cited
strengthening of Human Resources – in
particular in Sales and Services in addition to Engineering – in R&D investments
and in its industrial structures (a new
NC Mazak turning centre for high precision mechanical processing, in order to
obtain the best possible printing performance of the machine).
06
FLEXO EB2
Ergonomics, efficiency and ecocompatibility. Equipped with Thermilox®
patented system, in order to guarantee the accurate and continuous control of ink temperature during the print run
07
EVENTS AND NEWS 2015
“Il Cibo Racconta”, Expo Milan event
October 28 2015
Uteco Plant 3 inauguration, October
2015
Uteco at ConverFlex/Ipack-Ima
May 19-23 2015
Uteco Family Day: September 12 2015,
30th anniversary
Open House October 27-28-29, 2015: the new Onyx XS
New
HORIZON 4.0
HORIZON 4.0 Top Level machine on completion of the coaters/laminators range, fully automatic. Maximum speed 600 m/min, introduced at the Drupa exhibition
08
MISTRAL
New
The new coating/laminating machine,
with new technological and innovative solutions, suitable for working
with all kin of materials
IZAR
This machine is perfect for short and long
runs in solvent-less lamination
MIRA
The “entry model” into the solventless world and it is targeted to those
converters approaching lamination
for the first time
Thermilox® System (Patented)
Kiss&Go® System (Patented)
UDD®: Uteco Direct-Drive (Patented)
09 ADVANCED INNOVATIONS IN PRINTING
New ventilation/drying Cube System® (Patented)
New UV-LED system, in collaboration with
Air Motion System
New
New ONYX XS EB super compact 8 color for
printing repeats up to 650mm with 4 “IN
LINE” technologies
NXS 300 New rotogravure press on completion of the NEXT range, compact and dedicated to short runs. Maximum speed 300 m/
min, introduced at the Drupa exhibition
New
New SAPPHIRE & SAPPHIRE EVO,
shown at the Drupa exhibition.
Digital print on plastic film at high
speed
New MP 4.0 multi-process middle-web shown at the
Drupa exhibition. The integration and combination
of a wide range of technologies in a single integrated
system
NEW TECHNOLOGIES
RFID FOR PACKAGING
Hybrid “Flexo-Inkjet” Technology in
collaboration with Kodak
Printed Electronics developed with
Swansea University
SUPPLIER PARTNERS DAYS
On November 18 and 19 the third Supplier Partners Days took
place at Uteco
The spotlight was on Uteco Group and their main Suppliers and Partners who had the opportunity to
share the development plans and projects for the next year and to analyze what achieved in the last
three years
10
Uteco Group
Consolidated financial statement 2014-2015
Stato Patrimoniale
2011
2012
2013
2014
2015
Immobilizzazioni immateriali
2.567
2.227
1.506
1.604
1.586
Immobilizzazioni Tecniche nette
1.284
1.182
1.354
2.837
3.936
563
565
1
1
1
Totale attività non correnti
4.415
3.975
2.860
4.477
5.522
Rimanenze
26.389
26.878
33.147
46.893
48.131
Crediti e altre attività
19.936
24.945
22.333
25.519
24.578
Disponibilità liquide e mezzi equivalenti
3.030
6.065
17.120
15.059
22.986
Totale attività correnti
49.355
57.888
72.600
87.471
95.695
Totale attivo
53.769
61.863
75.461
91.948
101.216
Patrimonio netto
15.620
19.609
24.869
29.758
37.104
Fondi diversi
3.543
3.624
7.103
7.315
6.495
TFR
2.553
2.441
2.426
2.292
2.212
375
36
0
3.700
0
Altri debiti e passività diverse
31.678
36.154
41.063
48.883
55.406
Totale passivo
53.769
61.863
75.461
91.948
101.216
(Euro/000)
Partecipazioni ed altre attività non correnti
11
Passivo
Debiti finanziari ed altre passività finanziarie
The present 2016...
...and the future 2018
Uteco Group
Consolidated financial statement 2014-2015
Conto economico
2011
2012
Order intake
81.142
101.186
Valore della produzione
69.187
EBITDA
2013
2014
2015
100.851
102.242
109.124
77.693
103.538
107.334
115.607
7.516
7.969
16.067
13.705
17.488
EBIT
6.002
5.807
12.694
11.853
15.454
Utile a lordo imposte
5.523
6.036
13.012
11.696
14.112
Utile netto
3.745
3.963
8.284
8.342
9.912
Cash flow
13.418
3.375
11.091
(5.761)
11.627
Grado di copertura
2011
2012
2013
2014
2015
Capitale investito
12.967
13.580
7.749
18.399
14.119
Patrimonio netto
15.620
19.609
24.869
29.758
37.104
Posizione finanziaria netta
2.654
6.029
17.120
11.359
22.985
Indici di bilancio
2011
2012
2014
2015
EBITDA
10,9%
10,3%
15,5%
12,8%
15,1%
EBIT
8,7%
7,5%
12,3%
11,0%
13,4%
ROE
24,0%
20,2%
33,3%
28,0%
26,7%
ROI
46,3%
42,8%
163,8%
64,4%
109,5%
Altri dati
2011
2012
2013
2014
2015
227
231
251
282
(Euro/000)
12
(valori in Euro)
Numero dipendenti
2013
249
CHAIRMAN
Bruno Chivilò
GROUP CEO
Uteco Converting SpA
(& President Uteco North America)
Aldo Peretti
GROUP CFO
Uteco Converting SpA
(& Vice President Uteco North America)
Simone Quinto
GROUP COO
Uteco Converting SpA
Stefano Russo
GROUP CMO
Uteco Converting SpA
Davide Cucinella
2015
WorldWide Plants Branch Offices & Service Centers
UTECO Germany
CANADA
CHINA
U.S.A.
MIDDLE EAST
CENTRAL AMERICA
AFRICA
SOUTH AMERICA
INDIA
China Sales & Service Point
SOUTH EAST ASIA
South East Asia Sales & Service Point
AUSTRALIA / N.Z.
UTECO CONVERTING SPA • VIALE DEL LAVORO, 25 Z.I. • I 37030 COLOGNOLA AI COLLI (VR) • PH.: +39 045 6174555 • FAX: +39 045 6150855
u t e c o v r @ u t e c o . c o m • w w w . u t e c o . c o m