The N.V. Nederlandsche Apparatenfabriek “Nedap” showed markedly* higher revenue and profit in the first months of this year compared to the same period in 2010. The growth in revenue occurred in virtually all market groups, namely Agri, AVI, Healthcare, Power Supplies, Retail, and Security Management**. As expected, only the revenue from the Library Solutions and Specials market groups was flat. Based on the current, strong market position in various sectors, the management expects - notwithstanding unforeseen circumstances - a marked to significant growth in revenue and profit for the coming months.
In 2011, Nedap N.V. will continue to invest solidly in product innovation and commercial effectiveness. The number of permanent employees, following the sizeable expansion in 2010 (51 new employees), rose further in the first months of this year by 13 employees to a total of 665 (as at 31 March). Furthermore, temporary use was made of employment agency staff in a number of market groups in order to accelerate the launch of new products on the market. The shortage of components on the world market is currently pushing up costs because production and logistical processes are not always able to operate at maximum efficiency.
The organic growth in revenue of Nedap N.V. is currently being tempered by the gradual phasing out of the supplier activities in close consultation with the buyers, which activities are carried out by the Specials market group. A few years ago, revenue from these activities accounted for 20% of total revenue. Over the 1st half-year 2010, this had already been reduced to around 15%, and by the end of the 1st half-year 2011 it will be less than 10%.
The revenue from the market group Agri (ICT systems for the dairy and pig farming industry) have shown an upward trend. Milk prices are going up, which has revitalised confidence amongst dairy farmers about the future. In those countries and regions where this sector is financially healthy, this has led to the investment in new systems. There is also a growing willingness to invest in the pig farming industry. The market group will continue to invest substantially in its product portfolio, which in turn has recently led to new market propositions and sales channels. The market group AVI (Automatic Vehicle Identification) has spent a lot of time and resources on developing and launching new products on the market. After a limited drop in 2010, it has seen its revenue increase once more.
The activities of the market group Election Management Systems have continued to be restricted to keeping track of international developments in the field of voting machines. No revenue is expected for this group in 2011. The market group Healthcare (computerisation of time registration for the healthcare sector) has been able to further reinforce its position in the healthcare market through its continual focus on product innovation and marketing. The solution developed by this market group for the employment agency sector, PEP (computerised time registration), has led to a growth in revenue both nationally and internationally.
The market group Library Solutions (RFID self-service check-in/checkout systems for libraries) experienced the negative consequences of government cutbacks in a number of countries during the first months of the year: there were fewer customer enquiries, decisions on orders were deferred, and budget commitments were revised. The market group is working hard to expand its sales territories to such regions as Scandinavia, Eastern Europe, and the Middle East. The market group Power Supplies (switch-mode power supplies for lighting and renewable energy systems) has shown further growth in revenue with an increasing number of in-house products under the Nedap brand name, including the PowerRouter.
The market groups Retail (anti-shoplifting systems, control and information systems to combat stock losses) and Security Management (systems for access control, registration, payment, fire and intruder alarms, observation, locker management, and biometrics) continued their excellent performance of last year in the first months of this year. The decision to continue investing in product innovation and marketing during the recent recession increased its competitiveness.
The organic growth of Nedap N.V. is financed entirely with internal capital. The solvency position remains undiminished strong at 40%.
The financial half-yearly report for 2011 will be published on Thursday, 4 August 2011 after trading hours.
The Annual General Meeting of Shareholders will take place on Tuesday 26 April 2011, at 11 a.m., at the Zendgebouw Radio Kootwijk, Radioweg 1, 7348 BG Hoog Soeren. Please go to our website (www.nedap.com) for directions on how to get there because some navigation systems do not recognise the address.
If you are travelling by public transport, you can use the minibus taxis with the Nedap logo which will take you to the Zendgebouw Radio Kootwijk. These minibus taxis will be parked at the taxi rank near the front entrance of Apeldoorn station. They will operate a shuttle service between 9.30 a.m. and 11 a.m. The transfer journey takes around 15 minutes.
We would also like to point out that there is no elevator in the Zendgebouw Radio Kootwijk. The shareholders meeting can only be reached via a stairway.