From the Sector

Net result impacted by operating losses and high impairments in North America

In 2019, Autoneum grew organically by 2.5% and has thereby significantly outperformed the declining market. In Swiss francs, revenue rose slightly to CHF 2 297.4 million. However, as previously communicated, operational inefficiencies in North America and impairments on fixed assets in that region had a particularly strong impact on profitability and led to a net loss of CHF –77.7 million. The Board of Directors therefore proposes that no dividend bedistributed for the 2019 financial year. Based on the new turnaround program launched in North America at the beginning of this year, significant profitability increases are expected for 2020.

2019 was an extremely challenging year for the automobile industry. The continuing weakness of the global economy, ongoing trade disputes and the increasing regulation of mobility impacted vehicle demand negatively. But 2019 was also a year of change for Autoneum internally. An in-depth analysis carried out by the new Group Management in the fall showed a need to reevaluate the Group’s performance over the short- to medium-term. In Business Group North America, the operational and commercial problems have proven more extensive than originally assumed. As a result, the turnaround program launched in spring 2019 was replaced at the beginning of 2020 with a dedicated and far more comprehensive program for the North American sites.

Revenue growth despite a shrinking global market
As a result of weak demand, the number of light vehicles produced worldwide fell again sharply in 2019 compared to the previous year; whereby the decline of almost –6% was much steeper than in 2018. Thanks to numerous production ramp-ups and a favorable model portfolio, Autoneum generated organic revenue growth1 of 2.5%, despite the global market cooling. Revenue consolidated in Swiss francs rose by 0.7% from CHF 2 281.5 million to CHF 2 297.4 million.

Profitability2 impacted by operational inefficiencies and impairments
Operational inefficiencies in North America and impairments on fixed assets in this region were the main reason for the – first-ever – negative net result in 2019. In addition, the sharp drop in automobile production in Europe and China as well as associated lower utilization of production capacities in the affected Business Groups also burdened the Group’s profitability. EBITDA excluding IFRS 16 effects decreased to CHF 126.0 million (2018: CHF 197.2 million), which corresponds to an EBITDA margin of 5.5% (2018: 8.6%). One-time charges from impairments in the amount of CHF –68.0 million had a negative impact on EBIT, reducing it to CHF –32.9 million (2018: CHF 114.1 million). Without these one-time charges, EBIT amounted to CHF 35.0 million. The EBIT margin 1 Change in revenue in local currencies, adjusted for hyperinflation. 2 The figures for the 2019 financial year include IFRS 16 effects. Autoneum Management Ltd . Media Release . March 4, 2020 Page 2/5 excluding impairments was at 1.5% in 2019, and taking those into account the margin decreased to –1.4% (2018: 5.0%).

Focus on Sustainability and Climate Change

Passion for Cotton: The 35th International Cotton Conference Bremen starts on 25 March in the Hanseatic city’s historic Town Hall. But before subject-specific questions are discussed in depth in the individual sessions, the concise and inspiring keynotes by leading business experts from science and industry will draw attention to the current trends and challenges in the industry at the start of the conference. A large part of the presentations is shaped by the current discussion on environmental and sustainability issues and the resulting consequences for the global economy.

Climate Change and Sustainability

“Climate change - a storm in a teacup?” asks Kai Hughes, Executive Director of the International Cotton Advisory Committee, Washington D.C., USA, in a provocative speech. The aim of his presentation is to work out the challenges of climate change especially for agriculture and cotton production. This should form the basis for later discussion on concrete approaches and solutions within the cotton community.

With his lecture “The HUGO BOSS sustainability programme ... and what our customer has to do with it” Andreas Streubig, Director of Global Sustainability at Hugo Boss AG, Metzingen, Germany, rolls up the textile value chain from a different angle, starting at the consumer level. As a representative of a premium brand for women's and men's clothing, Streubig discusses sustainability as a strategic element of the corporate strategy and provides information on how elements of the strategy are being implemented at Hugo Boss.

Rüdiger Senft, Head of Sustainability at Commerzbank, Frankfurt am Main, Germany, looks at the changing role of banks in financing the cotton market. In addition to a general introduction to the topic of sustainability and banking regulation, Senft's presentation deals with the financing of the cotton trade from a social and ecological point of view.
The opening session on 25 March is hosted by Bill Ballenden, founder and owner of Dragontree, Swindon, UK, an online auction platform for the cotton trade. As a former cotton manager for Louis Dreyfus in Europe and Asia, Bill Ballenden has many years of experience in the industry.

Cross-Cutting Issues: Digitalisation, Gender, Value Chains

The subsequent session in the conference programme with the headline “A Wider View” is devoted to currently defining trends and important cross-cutting issues in the industry. This goes far beyond classic cotton themes.

A lecture by Mark Messura, Senior Vice President, Global Supply Chain Marketing for Cotton Incorporated, Cary, North Carolina, deals with the role of cotton in an increasingly digitally controlled supply chain. Significant keywords here are faster delivery times, vertical integration, transparency and traceability.

The presentation by Roger Gilmartin, Managing Director of Tri-Blend Consulting, Charlotte, USA, entitled “The secret recipe for timely, cost-optimised and high-quality cotton clothing” promises exciting and enlightening insights. Tri-Blend Consulting conducts studies on the performance of different cotton varieties during the entire consumption process to the finished yarn and evaluates them from an economic point of view.

Amy Jackson, from the Better Cotton Initiative, London, UK, presents ICA Liverpool's “Women in Cotton” initiative. With this commitment, the initiative aims to increase the influence of women in the cotton industry and give them a stronger voice, for example by building networks in cooperation.

Navdeep Singh Sodhi, International Strategic Management Consultant at the Gherzi Textile Organisation, Switzerland, gives an insight into the current development of the value chain for cotton, textiles and clothing in Africa. Looking ahead to the coming decades, also in view of population growth, Africa is seen as having a high potential for building economic structures to improve income and prosperity.

Thomas Schneider, Professor at the University of Applied Sciences in Berlin and active in the field of production planning and control, textile materials and materials testing will host the session. A leading light in his field, Thomas Schneider has more than 30 years of experience in scientific and application-oriented research in the textile and fibre sector, including at the Fibre Institute Bremen e.V.

Automatized quality control of gas diffusion layers for fuel cells at SGL Carbon in Meitingen

• One of only two awarded overseas suppliers
• Long-term cooperation for a substantial production ramp-up

Mid of January SGL Carbon received the “Supplier of the Year 2019” award for excellence in quality management and contributions to strengthen the overall competitiveness of Hyundai Motor Group related to the manufacturing and supply of fuel cell components. The award is being granted by the Korean automaker once a year, evaluating several hundreds of suppliers from across the world in different categories. This time only two overseas suppliers have been awarded.

SGL Carbon and the Hyundai Motor Group have been cooperating on fuel cell technology for almost 20 years. Last year, the two companies agreed on an early extension to the existing supply agreement for SIGRACET® gas diffusion layers for the NEXO fuel cell car, encompassing a new long-term cooperation including a substantial ramp-up of the current production and supply volumes.

The Oerlikon Manmade Fibers segment will be presenting itself at the Egy Stitch & Tex 2020 between March 5 and 8, 2020 in Cairo – with a clear focus on the needs of the African market. In Hall 1, Stand B2 The Oerlikon Barmag and Oerlikon Neumag experts will also be showcasing the comprehensive product and service portfolio of the world market leader for manmade fiber systems at the stand of Oerlikon’s representative ATAG Export & Import.

The spotlight of the Oerlikon Manmade Fibers segment’s trade fair attendance will be on two core technologies: the new generation of Oerlikon Barmag eAFK Evo texturing machines is to be unveiled within the African market for the very first time. It promises higher speeds and productivity with consistently high product quality, along with lower energy consumption and simpler operation vis-à-vis comparable market solutions. In particular, the numerous value-added features include two that convince with cutting-edge technology: the optimized, innovative EvoHeater and the EvoCooler, a completely newly-developed active cooling unit.

The second technology focus offers new opportunities for the Egyptian market and the Middle Eastern markets in particular: with Oerlikon Neumag’s BCF S8 monocolor and tricolor system, the segment will be unveiling its new carpet yarn production flagship. Superlative spinning speeds, up to 700 individual filaments, finer titers of up to 2.5 dpf – the performance data and technological finesse of the new system have already made a huge impression at numerous trade fairs and roadshows over the past year. The tricolor’s core component is the new, patent-pending Color Pop Compacting unit (CPC-T) for even more flexible and more even color separation. With the CPC-T, individually-controllable air pressures for each color provide pre-tangling, which accentuates the colors and hence makes more than 200,000 different shades possible. Whereas it has been very difficult to manufacture strongly color-separated or color-accentuated BCF yarns from polyamide 6 to date, this will in future be possible thanks to the CPC-T system. As a result of the new design, the CPC-T is now also suitable for processes with low yarn tensions.
 
Expanded product offering for manufacturing carpet yarns
Know-how covering all relevant technologies deployed in manmade fiber spinning plants enables Oerlikon – as the world’s only manufacturer – to expand its range of products and services for making carpet yarns. The POY- and texturing-based system concept is designed for a carpet and home textiles segment that demands particularly soft and bulky polyester yarns with BCF-like properties. Here, the aim is to produce yarns with titers of max. 1300dtex and typically more than 1,000 filaments, with typical products including, for example, 1300dtex f1152, 660dtex f1152 and 990dtex f768. The machine concept comprises the well-known WINGS HD POY winder, along with the eAFK Big-V texturing machine.

The origins of both Industry 4.0 and an awareness of the need for more sustainable manufacturing methods can arguably be traced back to the year 1971.

It was in 1971 that the first microprocessor was introduced by Intel, and also that the first and perhaps now most well-known environmental campaigner, Greenpeace, was founded.

As such, a direct line can be charted from that year to today’s automated textile manufacturing machinery concepts, as well as the drive to develop more increasingly resource-efficient processes.

All of the recent innovations which have been introduced to the market by A. Monforts Textilmaschinen GmbH & Co. KG, for example, are being powered by the possibilities of Industry 4.0 and developed in response to the market demand for more sustainable production.

They include the new ‘digital twinning’ capability introduced in 2019 for all Monforts machines, with advanced sensor technologies which make it possible to access comprehensive technical machine data from any location using the company’s Smart Support and Smart Check apps. In addition, the digital twin system provides information on individual wear parts, such as, for example, converters or gears.

These latest developments have been very favourably received by Monforts customers, especially in Europe.

50th anniversary
The very first Heimtextil – the leading trade fair for the home textiles market – was also held in Frankfurt in January 1971 and Monforts customers Bierbaum Group and Konrad Hornschuch AG are amongst the German companies who were there from the very start and have attended every annual show since.

Bierbaum Group, based in Borken, is the company behind the well-known Irisette bedding brand and is celebrating its own 125th anniversary in 2020. It has also introduced products bearing the German government’s new Grüner Knopf textile seal of approval for sustainable production.

As a specialist in synthetic leathers for home surfaces, as well as vehicle interiors, Konrad Hornschuch AG, of Weissbach, has been a member of the €44 billion automotive giant Continental AG since 2016.

Representatives from both companies received memorial trophies at a special presentation held on January 7th during the 50th anniversary Heimtextil show.

The home textiles market remains very strong in Germany, with sales amounting to some €9.6 billion in 2019, according to analyst IFH Cologne.

Global growth
The first Heimtextil in 1971 was a significant success, attracting 679 exhibitors from 26 countries.

This year’s show, however, attracted a total of 2,952 exhibitors from 66 countries, reflecting not only the growth of the home textiles industry, but also the globalisation which has taken place over the last half century.

Monforts now has customers for its advanced finishing technologies around the world, with home textile customers from India and Pakistan being particularly well represented at Heimtextil 2020.

Among stand outs from Indian companies at this year’s show was the 2020 collection of Welspun India’s famous Christy England brand, inspired by botanical studies of the gardens of British stately homes. Welspun towels meanwhile benefit from the company’s HygroCotton hollow core yarn technology, produced by a proprietary spinning method which ensures they become softer, fluffier and more absorbent after every wash.

An equally ground-breaking new technology is being introduced by Trident Group, which is one of India’s largest vertically-integrated home textiles manufacturers and two years ago installed five complete Monforts finishing ranges for its new linen department.

Trident’s patented Air Rich yarns feature pores throughout their cross sections for high breathability and absorbency, as well as rapid drying.

Monforts home textile customers from Pakistan stressed the resource efficiency of their processes and products as a result of investments in advanced technology, and during the show the ‘Sustainable Pakistan’ initiative was announced.

Supported by GIZ, the German Society for International Cooperation, the initiative aims to reshape global perceptions of Pakistan’s manufacturers and their innovations. So far, twenty producers have been carefully chosen to be presented on this global platform and will help rebrand Pakistan’s textile industry at the Heimtextil exhibitions going forward.

Heimtextil’s organiser Messe Frankfurt also announced its own new alliance with the United Nations Office for Partnerships, in order to support the UN’s Sustainable Development Goals.

Constancy
Many things have changed since 1971 and home interiors are certainly no longer predominantly orange and brown – and perhaps unlikely to ever become so again.

It’s clear, however, that there has been a constancy in the push to consistently improve textile technologies, processes and products that may have originated in Europe, but have subsequently spread around the world.

And the significance of both microprocessors and sustainability in 2020 could only have been guessed at back in 1971.

Bemberg presents fabric innovations and collaborations with fashion brands from the US and beyond

Bemberg will present a full range of new fabric innovations at Première Vision New York. These include manufacturers from around the world including Brunello S.p.A. and Cotonificio Albini S.p.A. from Italy, as well as luxury linings already installed at the Bemberg Lining Showroom in the heart of the Garment District hosted by CHH America. Relevant to report, the luxury yarn dyed jacquard linings made in Japan that can be customized following brands’ designs. While usually minimums are not met by emerging brands and start-ups, Bemberg decided to cooperate with a Japanese producer to offer customized yarn dyed Jacquard lining starting from 55 yards, per colour. Indeed, Bemberg will offer attractive designs, precious aesthetic while keeping its usual technical performances and the precious touch.

“On show in New York there is the whole process of sustainable fashion making,” explains Junshu Furusawa, Sales of Bemberg. “Indeed, through these fabric suppliers, we will be showcasing also new premium brand fashion range adoptions and collaborations with brands such as CAALO that is making its mark in the outerwear market with its Sustainably produced Functional-Luxury proposal

The participation at Première Vision New York is the second step of a global tour pointing to some of the most cutting edge design innovations on planet Fashion. #Bember2020 kicked off in Florence for Pitti Uomo, the next appointments will be ISPO in Munich. At each ‘sustainable pit-stop’ the company will showcase a different aspect of its multitasking and sustainable imprint.

Since 2018 the CHT Group has broken new ground in communication with BeSoEFFECTIVE. Complex chemical interrelations are translated into simple and hardly technical words in combination with stylistically clear pictures.

The Best Solutions ”BeSo“ were specifically tailored to the communication with the target group of textile brands and retailers and do therefore not only appeal classic B2B clients but are also visible and comprehensible for end consumers of textile goods. The agency RTS Rieger Team from Leinfelden-Echterdingen that had already supported the new brand identity of the CHT Group in 2017 assisted CHT again in developing and creating the BeSoEFFECTIVE concept. One year after its publication, the communication concept has now achieved great success. BeSoEffective was honoured with the GWA Effie Award 2019 in bronze in Frankfurt am Main on 14th November.

Since 1981 the Effie has been awarded for efficiency in marketing communication by the Gesamtverband Kommunikationsagenturen GWA (general association of communication agencies). It’s not exclusively the convincing look or content of campaigns that is honoured by the jury of experts with the GWA Effie Award but it’s rather the proven success and efficiency of such ideas and campaigns. By using the BeSoEFFECTIVE communication the CHT Group has so far increased the brands’ & retailers’ demand for innovative effects by about 30 %.

with CHT products are put in a nutshell by BeSoEFFECTIVE. The brand promise BeSo (”Best Solution“) is supplemented by an effect name deriving from the corresponding functionality – BeSoCOOL, BeSoFRESH or BeSoSMOOTH. Thus, each effect of the portfolio is given a uniform yet individual branding and a clear structure. The functionality of each effect is supplemented by pronounced and symbolic pictures which visually stress the benefits.

Eric Knehr, Head of Brand & Retail Service of the CHT Group states: “To us its of utmost importance to speak our target group’s language. Therefore, our BeSoEFFECTIVE campaign focuses on a clear communication with unique pictures and a uniform effect branding. Our customers’ positive reactions and this award prove, that our strong concept optimally supports our daily work as well as market and customer demands. However, it also puts the excellent performance of our innovative and sustainable effects into the right light."

As of October 1st, 2019, the Netherlands-based global market leading manufacturer of advanced automation equipment and solutions for composites, Airborne, strengthens its activities particularly in German speaking countries, the so-called D-A-CH region, comprising Germany, Austria and Switzerland with Dr. Michael Effing from AMAC. The Dutch company is looking for specialised partnerships to develop and deepen its international business opportunities in the aerospace and automotive markets.

Airborne’s focus is on high-end composite components, at high production rates at radically low conversion costs. Airborne is building up a suite of automated solutions for the manufacturing of composites with the aim to radically reduce costs and touch labour, minimize the footprint and use of material, and improve the time to market for their clients. The company offers i.a. solutions in automated honeycomb potting, automated kitting and automated lamination of thermosets and thermoplastics. In order to develop new business opportunities in the D-A-CH region for the end-markets aerospace and automotive, Airborne is cooperating with AMAC to accelerate the process of locating suitable partnerships.

Dr. Effing, CEO of AMAC GmbH confirms: "As a first step for the establishment of Airborne on the German market, we just signed their membership at AZL in Aachen which will help to connect with over 80 companies and latest research developments. In the framework of theirstrategy to strengthen the supply to the aircraft sector, Airborne will also exhibit at the Aircraft Interiors Expo in Hamburg from March 31st to April 2nd 2020.”

• Interfilière Paris, 6th-8th July 2019, booth D60

Able to offer an alchemy of design and sustainable innovation, Iluna Group with ROICA™ by Asahi Kasei join the latest edition of the Parisian tradeshow for lingerie with a range of innovations capable of combining innovation, aesthetics and quality. "Ethical" lace and stockings, where quality standards go hand in hand with fashion content, respecting both the environment and humans, an offer already selected among the protagonists of the Sustainable Thinking Exhibition of the Salvatore Ferragamo Museum, for its value in the field of responsible innovation.

Experts in the production of stretch lace since 1985, ILUNA today represents the largest European laces’producer. Thanks to the effectiveness of their responsible innovation strategy, Iluna Group has been the very first lace producer to have gained the GRS (Global Recycled Standard) for their transformed products, together with the company certification STeP (Sustainable Textile Production by Oeko –Tex®).
A relevant achievement for the firm that, thanks to the Green Label collection, now even richer, make responsible innovation an asset for production that focuses on smart ingredients as ROICA Eco-Smart™ family and Q-Nova® by Fulgar.

A range that culminates today in the launch of an athleisure and sporty-chic capsule collection that perfectly fit the contemporary modern wardrobe, result of a qualified and totally traceable supply chain, from yarn up to garment, based on design, sustainability and performance.

Of major interest is the fact that the Iluna fashion R&D based its strategic choice for the AI2020/2021 on the extension of the offer with new Black label’s developments between lace and embroidery, the premium R&D line.

The range of new Ultralight multicolor laces offers jacquardtronic and textronic 4 or 5 colours galloons with a 3D effect. The change of the color of thread in the background as well as in the design gives life to unique coordinated solutions for creatives. The match between expectations of brands and retailers are met always keeping as a priority the contemporary design, that is integrated to unique strategy committed to responsibility both at corporate and product level.

To ILUNA smart innovation is not just a project, its space at Interfilière where visitors will have the chance to discover the new collection and above all to experience and touch latest boundaries of lace smart innovations pursued staying true to the values the brand. Iluna team is pleased to welcome you with a special cadeaux created in collaboration with ROICA™ by Asahi Kasei.

• Pioneering pilot project conducted with Hong Kong based brand Chicks
• A large majority of consumers wants brands to disclose their supply chain
• Transparency ensured from fiber-to-retail

The Lenzing Group has made a huge leap forward in introducing blockchain technology, allowing for a new level of transparency and traceability in the textile industry. After joining the platform of the technology company TextileGenesis™ earlier this year, the world market leader in specialty fibers made from the renewable raw material wood presented the first pilot at this year’s Fashion Summit in Hong Kong on September 05, 2019. This pioneering pilot project was conducted in close cooperation with TextileGenesis™, WWF and Hong Kong based brand Chicks.