From the Sector

Order Intake Continued to Recover in the Fourth Quarter of 2020:

• Order intake increased to CHF 215.1 million in the fourth quarter of 2020 and reached a total of CHF 640.2 million in the 2020 financial year
• As expected, sales of CHF 573.0 million in the 2020 financial year were significantly down on the previous year
• EBIT margin of around -15% and net profit of around -16% of sales expected
• First half of 2021 still heavily impacted by the COVID-19 pandemic
• Change to the Group Executive Committee

Rieter posted a globally and broadly supported order intake of CHF 215.1 million in the fourth quarter of 2020. Thus, the recovery that began in the third quarter of 2020 after the slump in demand in the second quarter continued (order intake second quarter: CHF 45.7 million, third quarter: CHF 174.4 million). Overall, Rieter’s annual order intake for the 2020 financial year totaled CHF 640.2 million, which corresponds to a decrease of 31% compared to the previous year.

At the end of 2020, the company had an order backlog of about CHF 560 million (December 31, 2019: about CHF 500 million).

As expected, as a consequence of the economic effects of the COVID-19 pandemic, the Rieter Group closed the 2020 financial year with considerably lower sales than in the previous year. According to the first, as yet unaudited figures, total sales of CHF 573.0 million were achieved, which corresponds to a decrease of 25% compared to the previous year (2019: CHF 760.0 million).

Order Intake by Business Group
All three business groups were affected by the slump in demand in the second quarter of 2020 due to the COVID-19 pandemic. Despite the recovery in order intake in the third and fourth quarters of 2020, the weak second quarter was only partially offset.

The Business Group Machines & Systems was particularly hard hit by the effects of the pandemic, with a year-on-year decline of 35%. The Business Groups Components and After Sales each recorded a 24% reduction in order intake.*

Sales by Business Group
The exceptional market situation in 2020 gave rise to a significant decline in sales in all three business groups. Accordingly, reluctance to invest and deferred deliveries by customers caused sales in the Business Group Machines & Systems to decline by 24% compared to the previous year.

Due to COVID-19, a large number of spinning mills stopped production worldwide. This led to low demand for spare parts and wear parts, especially in the second and third quarters of 2020. Accordingly, compared to the previous year, sales in the Business Groups Components and After Sales fell by 24% and 27% respectively in the 2020 financial year.*

Sales by Region
With the exception of Turkey, all regions were affected by the low demand as a consequence of the COVID-19 pandemic.*

EBIT Margin and Net Profit
In the 2020 financial year, Rieter anticipates an EBIT margin of around -15% (2019: 11.2%) and net profit of around -16% of sales (2019: 6.9%). As of December 31, 2020, Rieter had liquid funds of exceeding CHF 280 million and unused credit lines in the mid three-digit million range.

First Half of 2021 Still Heavily Impacted by the COVID-19 Pandemic
Thanks to the improved capacity utilization, Rieter is planning short-time working in only a few areas in the first half of 2021. Nevertheless, Rieter expects sales in the first half of 2021 to be below the break-even point.*

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

Annual General Meeting April 15, 2021
The 2021 Annual General Meeting of Rieter Holding Ltd. will take place in Winterthur on April 15, 2021.*

*See attached document for more information.

Reflecting the pandemic-related drop in worldwide vehicle production, Autoneum’s revenue in local currencies fell by –18.7% in 2020, although the second half of the year saw a significant market recovery. Group revenue in Swiss francs fell by –24.2% year-on-year to CHF 1 740.6 million. For the full year 2020, the EBIT margin will be around 1.5% and the free cash flow slightly over CHF 100 million.
At the Annual General Meeting on March 25, 2021, the Board of Directors will propose Liane Hirner and Oliver Streuli for election to the Board of Directors of Autoneum Holding. Peter Spuhler will not stand for re-election.

At 74.5 million, the number of light vehicles produced globally in 2020 was down –16.2% compared to the previous year, where around 89 million vehicles were manufactured. Autoneum’s revenue in local currencies decreased by –18.7% in 2020, pretty much in line with the negative market dynamics. The somewhat stronger decline of revenue compared to the market results from a lower share of Asia in Autoneum's total revenue. Impacted by the appreciation of the Swiss franc against the most important currencies for Autoneum, the consolidated revenue dropped in 2020 by –24.2% to CHF 1 740.6 million. The heterogeneous development of the first and second half of the year was characteristic for the pandemic-driven automotive year 2020. Worldwide lockdowns and production stoppages at vehicle manufacturers led to a market slump in the first six months and a corresponding loss in revenue for Autoneum. Thanks to the subsequent market recovery and catch-up effects in the second half of the year, revenue improved considerably compared to the first half of the year.

Revenue development in Asia and SAMEA region significantly better than market
While revenues in local currencies of the highest-volume Business Groups Europe and North America decreased by –25.6% and –19.3% respectively, reflecting the regional, pandemic-driven market development (Europe: –22.9%; North America: –20.1%), Business Group Asia almost held its prior-year level with an organic decline of only –2.1% in 2020 thanks to the strong upturn in automobile production in China in the second half of the year and despite the fact that the number of vehicles produced in Asia fell by –11.4%.*

Personnel changes to the Board of Directors
At the Annual General Meeting on March 25, 2021, the Board of Directors of Autoneum Holding will propose Liane Hirner and Oliver Streuli for election as new members of the Board of Directors.
Liane Hirner has been CFO and member of the Management Board of Vienna Insurance Group, based in Vienna, Austria, since 2018.*

Oliver Streuli, a Swiss national, has been CEO of PCS Holding, based in Frauenfeld (Canton Thurgau), Switzerland, since 2019.*

Peter Spuhler has been a member of the Board of Directors of Autoneum since 2011 and will not stand for re-election at the Annual General Meeting on March 25, 2021.*

*See attached document for further informationen

• The Bavarian Kelheim Fibres GmbH has become the first viscose fibre manufacturer worldwide to receive EMAS certification.

“Our aspiration is that our fibres offer an eco-friendly and high-performance alternative to synthetic materials”, says Craig Barker, CEO at Kelheim Fibres. “So, it’s not enough that our fibres are made from renewable resources and that they are fully biodegradable – our environmental awareness must include the whole production process and all that goes with it if we want to safeguard our credibility.

The EMAS certification proves that we take this responsibility seriously.” EMAS stands for “Eco Management and Audit Scheme” and is a standardised eco management certification system developed by the European Union. EMAS includes the globally applicable ISO 14001 standard and goes beyond its requirements by demanding more transparency and continuous improvement: Certified companies report in their annual EMAS Environmental Statement on their environmental goals and their progress in meeting them.

During the audit preceding the certification, the independent environmental auditor thoroughly investigated all departments of the company, from the production itself to the company canteen. He found no non-conformances and was impressed by the competence and the high sense of responsibility among Kelheim’s employees. In contrast to the EU Ecolabel and similar certifications, EMAS does not apply to individual products or services, but certifies the complete environmental performance of the company. This benefits not only the protection of the environment and climate, but also the improvement of a company’s ecoefficiency.

Craig Barker: “An efficient environmental management system ensures that economy and ecology go hand in hand – that gives us a decisive competitive edge.”

• The nonwoven and technical textiles industry has become the focus of the whole world during the pandemic process.
• Most countries carried out works for these sectors with their investments, production and innovations.

During the pandemic process, a new one is added every day to the works for the nonwoven and technical textiles sector, whose importance is increasing in line with the needs. Turkey has become a center of  technical textiles by showing that its accumulation in these field and power.

In the Turkish technical textiles sector, which has an export market of 107 billion dollars worldwide and continues to break its own export record every month, R&D and innovation investments continue without slowing down. Technical textile exports, which increased by 77 percent in last November compared to the same month of the previous year, increased by 55 percent in January - November period and reached 2.5 billion dollars. Thus, technical and smart textiles and production technologies both attracted more attention and gained more importance in line with the needs of the pandemic process.

HIGHTEX 2021 International Technical Textiles and Nonwoven Fair, which will be held at Tüyap Fair and Congress Center on 22-26 June 2021, will be the exhibition where the latest technologies and products for nonwoven, technical and smart textiles which have become more important during the pandemic period and have become the focus of the whole world. Especially the products and technologies produced for the pandemic will attract more attention at the exhibition. HIGHTEX 2021 Exhibition, which will gather its exhibitors and visitors under one roof, will also allow new collaborations. At the same time, the exhibition, where developing technologies and products are exhibited, will provide a great advantage in terms of the formation of new business ideas.
HIGHTEX 2021, the first and only exhibition in Turkey in its field are expected to sign a new record in terms of number of exhibitors and visitors. You can visit www.hightexfairs.com website for more information about HIGHTEX 2021, which is preparing to attract more attention and host people than ever before.

• Lenzing is the only first-time discloser recognized with prestigious double ‘A’ score for global climate and forests stewardship by CDP.

Lenzing – The Lenzing Group has been recognized by the global environmental non-profit CDP, securing a place on its prestigious ‘A List’ for tackling climate change, as well as acting to protect forests. Through significant demonstrable action in these areas, Lenzing is leading on corporate environmental ambition, action and transparency worldwide.

Please read the attached document for more information.

• "We only promote products that we like and Kornit is offering a line up of technologically advanced equipment that can take our selected customers into the future of textile print on demand.”
• Responding to market needs for textile print on demand

Kornit Digital (Nasdaq: KRNT), a worldwide market leader in digital textile printing technology, continues to expand its market reach through Grup Transilvae partnership.

Founded in 1993 in Cluj, Grup Transilvae later expanded its reach nationally with a move to Bucharest. It has since developed into a complete solutions and services provider following partnerships with key industry manufacturers such as HP, MGI Digital Graphic Technology, Canon, Esko, Caldera, Efi, X-Rite - Pantone and Fotoba International etc. It has also more recently agree to support Matic, Highcon, Xlam, Sefa, Chemica and PlastGrommet. Now the company is increasingly focusing on the textile industry which is why it is partnering with Kornit.

CEO Bogdan Vasilescu explains: "We started with color management solutions, working on demand for Fogra with digitally printed DMI colors on textiles. We have also worked with Mimaki, Roland, Epson and Vutek on various projects including Eurotex Iasi, Zara and Rofobit in Bucharest. Eager to continue our growth spurt in the textile printing industry, we were looking for a trusted partner and Kornit was the obvious choice.”

"The collaboration with Kornit began officially in September and is a natural progression,” Vasilescu adds. “For a number of years, we have been considering ways to improve our offering by moving into textiles in the same way that we did for sign and display, home decor or packaging. We were just waiting for the right partner. We are always looking to collaborate with market leaders and we wanted to work with Kornit to tap into the potential of the print on demand textile market with an extensive textile printing portfolio.”

Grup Transilvae will represent all Kornit’s textile solutions, including Direct to Garment and Direct to Fabric, particularly for T-shirts, activewear, denim, fashion, beachwear, home textiles and fabrics.

Vasilescu continues: “We are looking forward to showing our existing customers how they can take advantage of the Covid 19 accelerated trends in digital print-on-demand and short-run print jobs. We will signpost how they can expand their application range, grow volumes and experience better ROI.”

Vasilescu concludes: “We only promote products that we like and Kornit is offering a line up of technologically advanced equipment that can take our valued customers into the future of textile print on demand.”

Omer Kulka, CMO at Kornit Digital states: “We are delighted to announce another great partnership with a distributor that is as passionate about our products and the textile printing industry as we are. Grup Transilvae has a long history of successfully entering new markets with leading manufacturers. We look forward to a long and happy partnership.”

Since the outbreak of the coronavirus pandemic, the worldwide demand for protective masks and apparel has resulted in a record number of new orders in the high double-digit millions of euros at Oerlikon Nonwoven. The meltblown technology from Neumünster is recognized by the market as being one of the technically most efficient methods for producing highly-separating filter media made from plastic fibers.

Protective equipment demands high-end nonwoven products
The rising demand for protective masks and other medical protective equipment since the start of the coronavirus pandemic and the associated global ramping up of production capacities has also resulted in an increase in the demand for nonwovens for the production thereof. Initially, this resulted in bottlenecks in the provision of meltblown filter nonwovens. To this end, there had until this point be very few producers of medical filter nonwovens outside China. Meanwhile, the demand for spunbond systems is also rising. “Due to the structure of our group, we are in the fortunate position to swiftly reallocate and free up our production capacities. This means that we are able to relatively quickly deliver not only meltblown systems, but also spunbond equipment”, explains Dr. Ingo Mählmann, Head of Sales & Marketing at Oerlikon Nonwoven, talking about the positive situation at the company.

The capacities for respiratory masks available in Europe to date are predominantly manufactured on Oerlikon Nonwoven systems. “Our machines and systems for manufacturing manmade fiber and nonwovens solutions enjoy an outstanding reputation throughout the world. Ever more manufacturers in the most diverse countries are hoping to become independent of imports”, comments Dr. Mählmann. The Oerlikon Nonwoven meltblown systems are being delivered to Germany, China, Turkey, United Kingdom, South Korea, Italy, France, North America and – for the very first time – to Australia until well into 2021.

Quality and efficiency in demand
Depending on the purpose of the application, medical PPE (personal protection equipment) should be breathable and comfortable to wear, protect medical staff against viruses, bacteria and other harmful substances and form a barrier against liquids. For these reasons, they are often made of either pure spunbond or of spunbond-meltblown combinations. Here, the meltblown nonwoven core assumes the barrier or filter task, while the spunbond has to retain its shape, while being tear-resistant, abrasion-proof, absorbent, particularly flame-resistant and nevertheless extremely soft on the skin.

All masks are not created equal – thanks to the ecuTEC+
Protection against infections such as coronavirus can only be guaranteed with the right quality.

The nonwovens can be electrostatically-charged in order to further improve the filter performance without additionally increasing breathing resistance. Here, Oerlikon Nonwovenʼs patented ecuTEC+ electro-charging unit excels in terms of its extreme flexibility. Nonwovens manufacturers can freely choose between numerous variation options and set the optimal charging method and intensity for their specific applications. In this way, even the smallest particles are still attracted and reliable separated by a relatively open-pored nonwoven. Nevertheless, mask wearers are still able to easily breathe in and out due to the comparatively loose formation of the fibers. To this end, it comes as no surprise that all meltblown systems currently destined for the production of mask nonwovens are equipped with the ecuTEC+ unit.

• A new collaborative business model gives life to ECONNECTION: an eco-high-tech collection designed thinking of the “end of life”

Three premium textile companies, one common goal: jointly offer ready to use, coordinated solutions that are design driven, performing and responsible also at the end of life.

Penn Textile Solutions/Penn Italia - international company producing and developing innovative fabrics through warp and weft knitting technologies, Tessitura Colombo Antonio, famous for the processing of lace and ribbons dedicated to the world of corsetry , Elastici Besana specialized in the production of narrow elastic for corsetry and underwear, have been working together to expand the frontiers of sustainable manufacture practices and to offer an innovative collection , a new set of incredible eco high tech innovations delivering a responsibility concept including also the end of life : ECONNECTION.

The responsible ECONNECTION collection, in which the words ECO and CONNECTION mixed to underline the importance of connect and come together for a sustainable project, features:

• 7 advanced knitted stretch fabrics by Penn Textile Solutions/Penn Italia,
• 3 precious laces by Tessitura Colombo Antonio
• 3 functional bands by Elastici Besana

So, 3 key leading companies with a key target : to design and deliver the market amazing responsible fabrics able to offer a responsible end of life. This opened up the door to new generation of ingredients such as:

• ROICA™ V550 made by leading fiber manufacturer Asahi Kasei, a premium sustainable stretch yarn that at the end of his life smartly breaks down without releasing harmful substances in the environment according to Hohenstein Environment Compatibility Certification and also boasting the Gold Level Material Health Certificate by Cradle-to-Cradle Product Innovation Institute** as it has been evaluated for impact on human and environmental health.
• Amni Soul Eco®, the world’s first biodegradable in anaerobic conditions polyamide 6.6 yarn that degrades in around 5 years* after disposing in landfill, developed by SOLVAY and produced and distributed in Italy by FULGAR.

The collection is presented in its BIO -BOX that will be sent to selected brands at worldwide level

A smart project that highlights the importance of synergies between companies know how, and new generation of materials , that is able to take products to a new level of responsible innovation, technology and exceptional performances where beauty and function will be able to carry the smart factor for the values they represent for the consumer and highlighting for the first time also the importance of their end of life.

The textile industry, one of the major industrial sectors worldwide, is going through a significant revolution, with changes taking place in various sections of textile processing. Biotechnology and biomimicry, for example, are continuously playing an important role in redefining the influence of the textile industry on society, and so is progress made in auxiliary chemistry, with advances investigated and then applied in almost every section of textile processing.  The outcome is amazingly promising.

Modern, real science is inextricably intertwined with environmental consciousness and they are definitely not mutually exclusive.

At RUDOLF GROUP modern, real science means pushing R&D so to constantly explore new technology and innovations that help transform the textile and fashion industries. We work to reduce the overall dependency on traditional and virgin resources.  Getting textile manufacturers as well as brand and retailers on board is key to achieve real change. By 2030 we aim for a significant fraction of our products to be either sourced through paths alternative to the traditional petrochemicals, or by upcycling waste and/or byproducts from other industries.

“This is the kind of genuine, tangible, environmental consciousness that truly defines us and that entails that RUDOLF GROUP has a responsibility for the needs of society as a whole.” Said Alberto De Conti, Head of Rudolf Fashion Division “We have a maniacal attention to the environmental impact of our operations and products. We have truly embedded in ourselves the notion that “sustainability” is a key issue and critical to the long-term survival of our company and of society at large. “

The combination of modern, real science and environmental consciousness leads to what RUDOLF GROUP call aspirational chemistry something unique and something that positions us as shining example and guiding light throughout the industry. That is, in fact, BETTER CHEMISTRY.

Two are the innovations rooted in aspirational chemistry that RUDOLF HUB1922 presents. The first one is our WASHLESS technology and the second one is a brand new launch: LASER SMOOTHER, which supports laser technology and helps creating much better denim looks.

WASHLESS

HUB1922 WASHLESS, which can be applied to both denim and non-denim, is the simultaneous application of
-    proprietary fluorine-free DWR (Durable Water Resistance) based on biomimicry to repel dirt
-    anti-microbial, anti-bacteria and anti-viral, non-migrating chemistry to stop body odour.
The combination of the 2 translates into garments that don’t require to be washed as much.

Life cycle assessment studies on clothes, detergents and washing machines show that home laundering is always the most energy‐demanding period during these products' life cycle, even higher than production or transportation phases.

“WASHLESS aims at changing consumer habits in clothing maintenance to a more environmentally friendly direction and represents a change that is the most feasible and efficient. Making washing machines obsolete is impossible, but even though the technologies in clothes cleaning have improved greatly, the washing frequency has not been reduced. We own more and more clothing and wash it more frequently. This increased amount of washing counteracts the technological improvements in home laundry. “ said De Conti.

It is only by understanding the climate change impact associated with home laundering that product innovations and consumer education can be explored. Studies consistently show that a carbon dioxide reduction of 105 MT and electricity savings of 142 thousand GWh can be obtained by reducing home laundering, on average, by 1/3. This is roughly equivalent to removing 12% of the 140 M passenger cars in the US, or taking 23 coal power plants off the grid. In addition, more than 60% of water consumed while laundering (2,000 billion liters) can be reduced through these strategies.

LASER SMOOTHER

Laser denim is the current dominant technology available to the denim industry to create locally abraded areas, vintage effects, whiskers, patterns, patches, and even intentional holes and tears in a garment. Laser technology uses less water, harmful chemicals (such as potassium permanganate) and energy to create a wide variety of denim looks.

However, laser is not always able to produce the desired look, on the desired fabric, in the desired time. Therefore, chemical companies have been developing laser boosters that can be pre-applied to the garments in order to intensify the effect of the laser to mimic heavier bleaching applications. Unfortunately, laser boosters can create blurred images where the definition is lower and the overall image less natural.

The brand new RUDOLF HUB1922 LASER SMOOTHER is an all-in-one formulation, very easy to pre-apply to garments before laser burning and that return a very natural image which is very similar to the highly desirable hand scraping. Laser smoother can be applied by traditional exhaust or through nebulization and it dries at normal temperature in normal tumble driers.  Advantages of LASER PRIMER are:

•    Remarkable enhancement of the fabric’s characteristics (heightening of material)
•    Overall effect much more natural and similar to manual scraping (craftsmanship dimension)
•    Reduced required laser power to achieve the wanted effect (conspicuous energy saving)
•    A faster laser burning process (significant time saving, depending on the final effect)
•    Any other chemical spray is not required (environmental friendliness)
•    Reduced cost compared to other solution (financial viability)

Neumünster – Success is built by connecting the right people with the right product. In a global marketplace, this means collaboration is just as important as competition. Companies need to focus on their strengths, while finding practical ways to innovate and expand upon their capabilities.

An exclusive license from Procter & Gamble offers the best for nonwovens

In order to do so, working together often makes the most sense. This is what motivated Procter & Gamble and Oerlikon Nonwoven – Teknoweb Materials to agree on an exclusive license agreement to market and sell the Phantom platform worldwide.

The patented process for hybrid nonwovens combines the best of both airlaid and spunmelt technologies to deliver new, flexible ways of creating wet and dry wipes. Phantom technology offers additional benefits by reducing resources and cost, while increasing overall performance. The exclusive license gives Oerlikon Nonwoven – Teknoweb Materials distribute this technology worldwide. In addition, Oerlikon Nonwoven – Teknoweb Materials have further refined the process into their own Levra technology – an entry-level option which offers tailored production volumes with lower investment costs but is still suitable to be upgraded to the premium Phantom model in the future.

Quality products that cost less

Essentially, Phantom technology was developed to produce hybrid substrates. The spunmelt and airlaid processes are merged into one step to combine cellulose fibers, long fibers such as cotton, or even powders with polymer fibers in unprecedented ways. This technology has clear advantages in terms of resources, performance, and cost compared to the previous processes on the market. By removing hydroentanglement, it is no longer necessary to dry the material. Adjusting the process can optimize relevant product characteristics such as softness, strength, dirt absorption, and liquid absorption. In the end, this even increases the quality of the product itself.

The greater freedom for formulating continuous and discrete fibers allows for more flexible and absorbent structures and highly textured materials. Wipes feel softer to the touch while providing more protection for the hands. Up to 90% of the material can consist of pulp fibers, although natural alternatives like cotton or synthetic fibers can be added to the mix.

Phantom technology has not only found a practical application in a variety of wipes – such as hygiene wipes, anti-bacterial wipes, surgical wipes, or industrial wipes – but also in absorbent cores, for instance indiapers or fempro products. With so many applications, Oerlikon Nonwoven – Teknoweb Materials are fully prepared to deliver Procter & Gamble’s innovative Phantom technology to the global nonwovens market.