From the Sector

Due to the impact of the war in Ukraine on the automotive industry and vehicle production as well as of rising inflation, Autoneum is adjusting its corporate outlook for the 2022 financial year. The market recovery will be delayed by current developments.

Since the outbreak of war in Ukraine, new bottlenecks in global supply and logistics chains have been impacting vehicle manufacturer production volumes and thus slowing the revenue and earnings development of the automotive supply industry, especially in Europe. Current developments are accompanied by accelerated inflation and significant price increases on the commodities markets, which have been further exacerbated by the war. These are felt at Autoneum through rising material, energy and transport costs. With regard to the rising costs, automotive manufacturers and suppliers are now required to ensure a fair burden sharing as partners.

In addition, renewed coronavirus-related lockdowns in China are delaying growth in Asia. According to the revised market forecasts1), global automobile production is expected to reach 80.4 million units in 2022, which represents an increase of 4.1% compared to 2021. Growth will thus be significantly lower than was still expected in mid-February.

Autoneum will do its utmost to minimize the impact on the Group. Despite the present challenges, the strategy will continue to be consistently implemented with a focus on innovative and sustainable technologies for growing markets of the future.

Based on current developments and knowledge, Autoneum has updated the forecasts that it presented at the Media Conference, which had not yet included the impacts of the war as outlined above. Autoneum continues to expect revenue to develop in line with the market. For the first half of the year, the Company expects an EBIT margin at break-even level. On the basis of the ongoing collaborative discussions with customers to participate in the sharing of the sharply increased energy and material costs, Autoneum anticipates an improvement in the EBIT margin to 2.0 to 3.0% (previously: 4.0 to 5.0%) for the full year 2022. Free cash flow for 2022 is expected to be in the mid to high double-digit million range.

Autoneum is very well positioned for the transformation of the automotive industry towards e-mobility and sustainability. Our product portfolio is suitable for all drive types, whether internal combustion, hybrid or pure electric vehicles. The medium-term forecasts that Autoneum published in November 2021 remain unchanged positive. The timing of the market recovery will be delayed by current events and will also depend on further geopolitical developments.

Electronics For Imaging, Inc. announced that it has acquired Inèdit Software S.L., a developer of raster image processors (RIPs) and related software for digital industrial textile printing. The acquisition extends EFI’s strategy to accelerate digital transformation in industrial print through investments that advance the company’s presence and capabilities in Packaging & Corrugated, Display Graphics, Textile, and Building Materials/Décor applications. Inèdit will be integrated into the Reggiani textile business.

Similar to EFI’s Fiery® digital front end and RIP technologies for the digital commercial and industrial printing markets, Inèdit’s neoStampa product is a recognized benchmark solution for RIPs in digital textile printing. The Inèdit product portfolio features advanced workflow solutions for textile profiling, calibration, design integration and much more. Inèdit’s RIP technology is employed across the worldwide textile industry and is one of the leading RIPs used to drive EFI Reggiani digital printers and other digital industrial textile printer brands. As part of EFI Reggiani, Inèdit will continue to support products for a broad range of digital printers.

• Continued focus on sizeable investments in innovation and sustainability.
• Underway in India, the acquisition of the Engineering Plastics business of Ester Industries Ltd. with the objective of keeping up the Group’s global growth trend

With total sales of EUR 1.508 million generated by over 30 production and sales units in Europe, Asia and America, RadiciGroup closed its 2021 financial year with positive results, despite the difficulties due to the lingering effects of the pandemic and the steep increase in the cost of raw materials and energy, especially during the latter part of the year.

The Group – led by brothers Angelo, Maurizio and Paolo Radici – continued to pursue its strategy of focusing on the core businesses considered to be strategic and synergistic, such as nylon chemicals, engineering polymers and advanced textile solutions, while, at the same time,  introducing new products, such as a line of personal protective equipment for medical and industrial use.

EBITDA reached EUR 268 million, and net income for the year was EUR 150 million.

Despite this situation, RadiciGroup considers it essential to continue making investments.

“In 2021, the Group invested EUR 53 million financed from cash flow,” Alessandro Manzoni, CFO of RadiciGroup, emphasized. “There was no impact on net financial position, which registered an improvement over 2020, as did all our balance sheet ratios."

Furthermore, in spite of the complexity of the period, in 2022 the Group shareholders have kept on with their significant investment plan aimed at strengthening RadiciGroup’s presence in global markets and improving its competitiveness.

Indeed, the Group has moved forward, according to plan, with the acquisition of the Engineering Plastics business of Ester Industries Ltd., an India-based company engaged for decades in the production of engineering polymers and listed on the Bombay Stock Exchange. RadiciGroup’s EUR 35 million investment in this transaction furthers the internationalization strategy of its High Performance Polymers business area.

• Focus on the embossing technique applied to the recycled fabrics collection of the NATIVE Sustainable Textiles line

Performance Days, the leading trade fair on the latest trends in the development of fabrics for the functional textile industry, has as main focus the PERFORMANCE FORUM, where the most recent innovations and developments are presented with a prize awarded to the winner of the category chosen for the current year, which for 2022 will be “The Journey to Carbon Neutrality - CO₂ Reducing Technologies and Measuring Tools”.

Protagonists are therefore all those materials that contain carbon in reduced form and the strategies/technologies that companies implement to ensure the reduction of CO₂ emissions during production and how these reductions are actually measured (through energy saving, careful use of resources, use of more sustainable materials, local production and other technological and production measures).

In this sense, Sitip’s strategy for reducing CO₂ emissions and maximizing the use of resources is based on consolidating and optimizing the layout and logistics of the production plants, installing a cogeneration plant and a new generation smoke smoke abatement system and the transition to an energy-saving lighting system.

Regarding products, at Performance Days Sitip brings its latest innovations with an absolute focus on the embossing technique, a particular system of mechanical processes that can also be used on the recycled items from the NATIVE Sustainable Textiles line, a technology that is applied to fabrics produced with recycled yarns and chemicals with low environmental impact, implementing the GRS standard (Global Recycle Standard), result of the journey towards sustainability implemented by the company.

The collection of embossed designs combines performance, style and sustainability: thanks to special mechanical processes that combine heat and pressure, the fabric is embossed with geometric and design motifs for a more structured and palpable texture.

Suominen launches a carbon neutral nonwoven, BIOLACE^® Zero. BIOLACE^® Zero is an excellent product for many kinds of wiping applications like baby, personal care, and household wipes. It has excellent wet and dry strength and it’s very soft. It is made of 100% cellulosic lyocell fibers and the product is 100% biodegradable, compostable and plastic free.

BIOLACE^® Zero utilizes VEOCEL™ Lyocell fibers from Suominen´s long-term partner Lenzing. BIOLACE^® Zero is made of 100% carbon neutral VEOCEL™ Lyocell fibers.

“We are very excited to introduce BIOLACE^® Zero, which is not just Suominen´s first carbon neutral product, but also one of the first carbon neutral nonwovens on the market. BIOLACE^® Zero will be available as part of Suominen's sustainable product portfolio”, says Marika Mäkilä, Senior Manager, Category Management, Europe.

Suominen’s BIOLACE^® Zero and Lenzing’s VEOCEL™ Lyocell fibers are certified as carbon neutral products by globally recognized company, ClimatePartner. Carbon neutrality means that the greenhouse gas emissions of nonwoven have been calculated – from the raw material production to the client’s production facility – reduced and are offset through certified carbon offset projects.

Suominen is a pioneer in sustainable nonwovens and we have a wide range of sustainable nonwoven products for different applications. Suominen’s R&D team has excellent know-how on sustainable fibers and we are also continuously collaborating with innovative partners to develop new and innovative solutions with a reduced environmental impact into our product portfolio.

“With this new carbon neutral product BIOLACE^® Zero we are able to support our customers in their greenhouse gas emissions reduction targets. Innovating new products in collaboration with partners such as Lenzing by using carbon neutral VEOCEL™ Lyocell fibers is well aligned with our strategy and vision to be the frontrunner in sustainable nonwovens”, says Noora Rantanen, Manager, Sustainability & Marketing.

The shareholders of Autoneum Holding Ltd approved all proposals of the Board of Directors at today’s Annual General Meeting and agreed to the proposed dividend of CHF 1.50 per share. Norbert Indlekofer becomes a new member of the Compensation Committee following the previously announced departure of This E. Schneider.

In accordance with Ordinance 3 on Measures to Combat the Coronavirus (COVID-19), the Board of Directors of Autoneum Holding Ltd decided to hold the 2022 Annual General Meeting without the physical presence of the shareholders. For this reason, the Company asked them in advance to exercise their rights exclusively through the independent voting proxy. He represented 66.9% of a total of 4 672 363 shares.

The shareholders approved the Annual Report, the Annual Financial Statements and the Consolidated Financial Statements for 2021 as well as the proposed appropriation of available earnings. A dividend of CHF 1.50 per registered share will be paid out as of March 29, 2022. This corresponds to a distribution of around CHF 7 million, or around 30% of the consolidated profit attributable to Autoneum shareholders.

Hans-Peter Schwald, Chairman of the Board of Directors, emphasized in his video message that the return to profitability and the distribution of a dividend are to be viewed as a positive sign and a success, especially given the challenging environment. CEO Matthias Holzammer, for his part, indicated how important the corporate strategy is for the ongoing and future success of the Company and how it was implemented last year. In addition, he highlighted that through its own strengths Autoneum had managed to improve its operating result in all four regions and to position itself well for the future.

Chairman Hans-Peter Schwald and the other members of the Board of Directors Rainer Schmückle, Liane Hirner, Norbert Indlekofer, Michael Pieper, Oliver Streuli and Ferdinand Stutz were confirmed in office for another year. Hans-Peter Schwald, Ferdinand Stutz and Oliver Streuli were re-elected to the Compensation Committee. Newly elected to the Compensation Committee was Norbert Indlekofer.

• Order intake of CHF 2 225.7 million at record level
• Sales of CHF 969.2 million despite bottlenecks in the supply chains
• EBIT margin of 4.9% and net profit of 3.3% of sales
• Milestones achieved in strategy implementation
• Dividend of CHF 4.00 per share proposed
• Outlook

The 2021 financial year was characterized by a rapid market recovery. As market and technology leader, Rieter succeeded in this environment in posting a record order intake, significantly increased sales compared with the previous year despite the bottlenecks in the supply chains, and generated an EBIT margin of 4.9%. This success is based on the investments in innovation and competitiveness of Rieter in recent years. Crisis management in the 2020 pandemic year, which aimed at benefiting from the expected market recovery after the pandemic, was also a contributing factor. With the acquisition of three businesses from the Saurer Group, a further milestone in the implementation of the strategy has been achieved. The acquisition strengthens Rieter’s market position by completing the ring and compact-spinning system. With the laying of the foundation stone for the Rieter CAMPUS in September 2021, an important prerequisite for the expansion of the company’s technology leadership has been created.

Order Intake and Sales
At the end of 2021, the company had an order backlog of around CHF 1 840 million (December 31, 2020: around CHF 560 million). Rieter closed the 2021 financial year with sales of CHF 969.2 million, which corresponds to an increase of 69% compared to the previous year (2020: CHF 573.0 million).

EBIT, Net Profit and Free Cash Flow
The profit at the EBIT level in the 2021 financial year was CHF 47.6 million, which represents 4.9% of sales. At the net profit level, a profit of CHF 31.7 million accrued, which corresponds to 3.3% in relation to sales. Free cash flow at CHF 128.1 million is a result of the positive developments in earnings and net working capital. The acquisition of three businesses from the Saurer Group for a purchase price of CHF 321.4 million resulted in net debt of CHF 161.9 million; as of December 31, 2020, net liquidity amounted to CHF 41.3 million. At December 31, 2021, liquid funds amounted to CHF 249.4 million (2020: CHF 283.2 million). The equity ratio as of December 31, 2021, was 27.6% (previous year’s reporting date: 36.4%).

Sales by Region
Sales increased in all regions, with the exception of Africa. The highest growth of CHF 126.0 million compared to CHF 50.8 million in the previous year was achieved in India, followed by North and South America with CHF 149.9 million in 2021 compared to CHF 66.4 million in the previous period, and the Asian countries excluding China, India and Turkey with CHF 318.7 million (2020: CHF 184.8 million). In Turkey, Rieter increased sales to CHF 182.3 million (2020: CHF 122.0 million), in China to CHF 135.3 million (2020: CHF 92.8 million) and in Europe to 43.3 million (2020: CHF 38.4 million). In Africa, sales were below the prior-year level at CHF 13.7 million (2020: CHF 17.8 million).

Business Groups
Despite the well-known challenges in the supply chain, the Business Group Machines & Systems posted an order intake of CHF 1 708.6 million (2020: CHF 363.9 million) and achieved sales of CHF 590.3 million, double the previous year’s figure (2020: CHF 295.8 million). Ring and compact-spinning systems, on whose customer benefits Rieter has worked intensively in recent years, were particularly in demand.
The order intake of the Business Group Components was CHF 296.0 million, 75% above the previous year’s level (2020: CHF 169.1 million). Against the backdrop of successful strategy implementation and good capacity utilization at spinning mills worldwide, sales increased to CHF 231.5 million (2020: CHF 174.3 million). The Business Group After Sales recorded an order intake of CHF 221.1 million, 106% higher than the previous year (2020: CHF 107.2 million). Sales reached a level of CHF 147.4 million (2020: CHF 102.9 million). The positive evolution of the Business Group After Sales was also significantly influenced by successful strategy implementation and good capacity utilization at spinning mills around the world.

Acquisition of three Saurer businesses
Effective from December 1, 2021, Rieter is consolidating the components businesses acquired from Saurer. With the acquisition of Accotex (elastomer components for spinning machines) and Temco (bearing solutions for filament machines), Rieter is strengthening its market position in the components business. The acquisition of the third business from Saurer (automatic winder) completes and thus considerably increases the attractiveness of Rieter’s ring and compact-spinning system. This acquisition marks an important milestone in the implementation of the company’s strategy as an innovative systems supplier. The transaction is expected to be finalized in the first half of 2022.

Rieter CAMPUS
On September 8, 2021, at the Winterthur location, the foundation stone was laid for the Rieter CAMPUS, which includes a customer and technology center as well as an administration building. With the Rieter CAMPUS, the company is creating a state-of-the-art and creative working environment, ensuring access to cutting-edge European technology and enhancing its ability to attract young talent. Thus, the Rieter CAMPUS will make an important contribution to the implementation of the innovation strategy and to the enhancement of the company’s technology leadership position.

Dividend
In view of the profit of CHF 31.7 million at the net profit level in the 2021 financial year, the Board of Directors proposes to the shareholders for 2021 the distribution of a dividend of CHF 4.00 per share. This corresponds to a payout ratio of 57%.

Changes to the Group Executive Committee
With effect from March 1, 2021, the Board of Directors of Rieter Holding AG appointed Roger Albrecht as Head of the Business Group Machines & Systems and a member of the Group Executive Committee.

Board of Directors and Annual General Meeting
At the 130th Annual General Meeting held on April 15, 2021, the shareholders approved all motions proposed by the Board of Directors. The Chairman of the Board Bernhard Jucker and the Directors This E. Schneider, Hans-Peter Schwald, Peter Spuhler, Roger Baillod, Carl Illi and Luc Tack were confirmed for a further one-year term of office. Stefaan Haspeslagh was newly elected to the Board of Directors for a one-year term of office. This E. Schneider, Hans-Peter Schwald and Bernhard Jucker, the members of the Remuneration Committee who were standing for election, were also each re-elected for a one-year term of office.

Changes to the Board of Directors
The two members of the Board of Directors, Luc Tack and Stefaan Haspeslagh, resigned from Rieter’s Board of Directors with effect from August 30, 2021.

Outlook
Rieter anticipates a gradual normalization of the demand for new systems in the coming months. The company expects demand for wear and spare parts to remain at a good level due to high capacity utilization at spinning mills. For the full year 2022, due to the high order backlog and the consolidation of the businesses acquired from Saurer, Rieter anticipates sales of around CHF 1 500 million. Sales in the second half of 2022 are expected to be higher than in the first half of the year. The realization of sales from the order backlog continues to be associated with risks in relation to the well-known bottlenecks in the supply chains, the ongoing pandemic and the geopolitical uncertainties. Despite the price increases already implemented, the rise in global costs poses a risk to the development of profitability.

• INDA, the Association of the Nonwoven Fabrics Industry, today announced six new board members and its 2022 slate of officers to guide the success of the nonwovens industry and its members.

Elected by the INDA membership to three-year terms that began on March 1, the new board members bring a high level of diverse expertise and insight to the management of the association as it moves forward with its vibrant growth.

“I am delighted to welcome such a strong group of new board members who bring deep industry knowledge and insights to provide strategic stewardship for our association,” said Dave Rousse, INDA President. “We look forward to working with them to advance INDA’s new value proposition to enhance our industry’s leadership position and deliver greater value to our members.”

The new board members are from global leaders Lenzing Group, Bast Fibre Technologies, Reifenhauser Reicofil, Rockline Industries, Hollingsworth & Vose Company and Principle Business Enterprises.  

INDA also announced Bryan Haynes, Ph.D., R&E Technical Director Kimberly-Clark, has been named Chairman of the Board. Barbara Lawless, Vice President Sales and Marketing, Medical Products, Precision Fabrics Group, Inc. has been elected Vice Chair of Finance, and Richard Altice, President and CEO of NatureWorks, has been appointed to INDA’s Executive Committee.

The new board members are:

• Jürgen Eizinger, Senior Commercial Director, Nonwovens Business EU/AM/MEA, Lenzing Group

Eizinger has nearly 20 years of fiber industry experience. He has been with the Lenzing Group since 2001 and most recently was Vice President of the Global Nonwoven Business. He has worked at multiple locations around the world and held various commercial, engineering and technical customer services roles.

• Jim Posa, President and General Manager, Bast Fibre Technologies, Inc.

Posa has 30-plus years of nonwovens experience and has successfully led businesses from startups to some of the largest companies in the nonwovens market. He has developed and implemented strategic business, development, operational and acquisition growth plans. His teams have worked with businesses focused on most of the major end use markets such as hygiene, wipes, filtration, medical and industrial. As a senior executive, Posa has led global businesses at Fiberweb, BP/Amoco, CEO of a Nisseki/Amoco joint venture (ANCI), Lydall, and Nitto America. A long-time INDA supporter, he has previously served on committees and as a Board member.

• Markus Mueller – Sales Director and Board Member, Reifenhauser Reicofil

Mueller brings to the INDA Board 35 years of experience with Reifenhauser in the nonwovens and film industries. His experience has included roles as PLC Engineer, Commissioning Engineer, Project Manager and Sales Manager. Mueller has extensive knowledge of the global hygiene and medical nonwovens markets. He holds a degree in Electrical Engineering from the Technical University of Cologne.

• Matt Koele, Director of Global Materials Development, Rockline Industries

Koele is based at Rockline’s headquarters in Sheboygan, WI.  Before joining Rockline in 2012, he has held several business and Research and Development (R&D) leadership positions at SC Johnson and Kimberly-Clark Corporation. An inventor with over 10 patents, Koele is a magna cum laude graduate of Michigan Technological University in Chemical Engineering.

• Mike Clark, President, Filtration Solutions, Hollingsworth & Vose Company

Clark joined H&V in 2003 and has held numerous leadership positions in the U.S. and Germany. He previously served as the President of the High Efficiency and Specialty Filtration Division from 2009 to 2020.  Before joining H&V, Clark was a strategy consultant for eight years working with Fortune 100 manufacturing companies. He holds a bachelor’s in Mechanical Engineering from Rensselaer Polytechnic Institute.

• Andrew Stocking, Ph.D., President and CEO, Principle Business Enterprises, Inc. (PBE)

Stocking joined PBE in 2017 after a career in engineering, technology, nonprofits and government. He was named President and COO in 2018, then President and CEO in 2020, becoming the third-generation leader of the family-owned organization. He previously held roles in the private sector and within federal government offices, including the Department of Energy and Congressional Budget Office. He earned a BS in Chemical Engineering and an MS in Civil Engineering from Stanford University, and a Ph.D. in Resource Economics from the University of Maryland.

The 21-member board is comprised of elected Board Officers. One-third of the entire Board is elected each year for a three-year term by a majority vote of INDA’s general membership. INDA’s Executive Committee, empowered to act on behalf of the Board between meetings, consists of the Board Officers plus four appointees.

• The adidas TERREX HS1 is the first product created in partnership with textile material company, Spinnova
• Part of the hoodie’s fabric is made from wood-based fibres
• The adidas TERREX HS1 is a step on adidas’ journey to create nine out of 10 articles with a more sustainable technology, materials, design or manufacturing method by 2025

Eight months after adidas announced its partnership with Finnish textile material company Spinnova, the brand has unveiled its first product made in part with Spinnova fibres.

Composed of a minimum of 25% wood-based fibres and 75% organic cotton, the adidas TERREX HS1 is a mid-layer for hikers that sees adidas exploring a more sustainable textile solution.

adidas is committed to helping end plastic waste via a three-loop strategy that consists of using recycled materials, materials that can be remade into entirely new products, and, in the case of Made with Nature, products created in part with natural ingredients, such as the adidas TERREX HS1. Its outdoor brand, adidas TERREX , is leading the innovation of technical materials with the aim of helping drive better product solutions for adventurers in nature while ensuring there is no compromise on style or performance .

By 2025, nine out of 10 adidas articles will carry a more sustainable technology, material, design, or method of manufacturing and adidas’ partnership with Spinnova is a major part of this journey.

• Record high: 12,338 (+19%) GOTS certified facilities in 79 countries in 2021  

Twenty years after its inception, the textile processing standard for organic fibres records new all-time high figures: 18 GOTS Approved Certification Bodies report a total of 12,338 certified facilities (+19%) in 79 countries (+11%).  

Among the countries with the largest increase in GOTS certified facilities in 2021 are Turkey (+61% to 1.799), Italy (+53% to 894), Germany (+19% to 817), Portugal (+35% to 608), France (+22% to 122), Denmark (+14% to 115), Switzerland (+15% to 61), Belgium (+55% to 59), Sweden (+34% to 51) and Vietnam (+264% to 51).

“What seemed utopian to many in 2002 has become a reality in the past 20 years. We have created an organic textile standard, certified by approved certification bodies, which is accepted in all major markets. GOTS is a standard that gives consumers the power to choose truly organic products sourced from sustainable supply chains.” says Claudia Kersten, Managing Director at GOTS. “Despite ongoing difficulties and uncertainty caused by the Covid-19 pandemic, decision-makers continue to pursue their sustainability goals and value GOTS as a tool to accomplish them”.

The results of the annual GOTS Survey among certified entities underline this. Out of 1.114 respondents (+39%), 63% indicated a permanent shift in their sustainability strategy with a focus on the environment and health of their workers and staff.

Growing interest from industry, the public, and the media drove website visits up an impressive 48%. Media exposure grew by 64% and GOTS social media followers across several platforms jumped by 57%.
“As much as we are pleased with the development so far, we don’t intend to rest on our laurels” adds Rahul Bhajekar, Managing Director at GOTS. “In March 2022 we begin revision for GOTS version 7.0 involving all stakeholders including associations, organisations, companies, and individuals to further advance the progressive, innovative, stringent yet practical standard of GOTS”.