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.

From the drinking water and food industries through water management and mining to the automotive and aviation sectors, mechanical filtration processes are used in almost every industry. As different as the methods, dimensions and special requirements of the filtration process are in each case – technical textiles and often tubular filters are almost always used. This means that tubular filters and narrow textiles by vombaur contribute to the safe and reliable separation or treatment of substances in the widest variety of filtration processes.

Individual solutions
The requirements placed on the textile, the material, the flow rate and the loading capacity of the filters depend on the respective use: a tubular for dewatering soil needs to withstand different forces than a tubular filter for the beverages industry. On the other hand, the latter needs to meet the highest hygiene standards. Because the requirements are so individual, vombaur develops customised filtration textiles for its customers all over the world.

Seamless tubular filters
At vombaur, filter media are round woven seamlessly on unique looms. As a result, they have identical surface properties all around and over the entire length, such as flow rate, loading capacity, shrinkage behaviour or material thickness

Narrow textiles for fabricating filter media
"We manufacture our narrow textiles from a wide variety of high-tech yarns. Sometimes monofilament yarn is used, sometimes multifilament, sometimes spun yarn. Like the type of weave, we select the raw materials depending on the function they need to fulfil," emphasises Gert Laarakker, Sales Manager at vombaur. "So that our filtration textiles reliably perform the job they are supposed to perform. Clean. Safe. Sturdy."

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

• ISKO Vital™+ Premium community face cover receives the NEN certification in the Netherlands.

The responsible face cover brand is the first to be awarded the Dutch standard, recently established by The Royal Netherlands Standardization Institute. The mark of conformity was issued on January 19, when ISKO Vital+ completed the certification process.

Supported by parent company ISKO’s 100-years of experience and know-how in the textile industry, ISKO Vital+’s range of Premium face covers has exceeded the requirements set out by NEN for community face covers. The recently established Dutch standard, NEN-spec 1- 2 requires manufacturers to pass rigorous testing for bacterial filtration efficiency, breathing resistance, fit and ease of use and sustainability.
With a bacterial filtration efficiency (BFE) of ≥95% that exceeds the NEN’s minimum requirement of ≥70%, the ISKO Vital+ Premium face cover is a patented 4-fold design made from ISKO Vital™ fabric, a groundbreaking textile solution created by ISKO’s in-house research and development experts. It is fluid repellent and very easy to breathe through thanks to a single layer of organic cotton which is dermatologically tested, OEKO-TEX Standard 100 certified and gentle on the skin, providing a superior level of comfort as assessed by an independent panel.

Available in different sizes and colors, the Premium face covers surpass the minimum NEN requirement for breathing resistance of <70 Pa/cm2 too, with a respiratory resistance lower than 40 Pa/cm2 – making the face covers very comfortable to wear. In addition, they are much more sustainable than disposable masks as they can be reused and hand or machine-washed up to 15 times without loss of quality. “Current circumstances are expected to last in the foreseeable future, so it is extremely important to wear proper community face covers”, explained Edgar van der Linden, ISKO Vital™ Medical Business Lead. “Thanks to the mark of conformity, it is now clear that face cover must have the highest possible filtration efficiency and must also be comfortable, expressed in the lowest possible breathing resistance. Environmental aspects are also addressed. As a supplier of washable face covers made from one innovative layer of organic cotton we consider that very important. A good community face cover offers a combination of high filtration efficiency, comfort, ease of use and minimizes the burden on the environment”.

Hologenix, creators of Celliant®, infrared responsive technology, and Kelheim Fibres, a world-leading manufacturer of viscose specialty fibers, have partnered to launch Celliant Viscose at ISPO Munich 2021. Celliant Viscose is a finalist in Best Products by ISPO and will be showcased in the Fibers & Insulations Category for ISPO Textrends, where realistic views and 3-D simulations will be available for each material.

The introduction of nature-based Celliant Viscose will be the first in-fiber infrared sustainable solution on the market and meets a consumer demand for more environmentally friendly textiles. An alternative to synthetic fibers and extremely versatile, Celliant Viscose blends beautifully with cotton, micromodal, lyocell, wool varieties including cashmere. It also has many applications across industries as it is ideal for performance wear, luxury loungewear, casual wear and bedding.

Celliant Viscose features natural, ethically sourced minerals embedded into plant-based fibers to create infrared products that capture and convert body heat into infrared, increasing local circulation and improved cellular oxygenation. This results in stronger performance, faster recovery and better sleep.

Celliant Viscose provides all the benefits of being a viscose fiber — lightweight, soft, highly breathable, excellent moisture management — as well as fiber enhancements from Celliant infrared technology. Celliant’s proprietary blend of natural minerals allows textiles to capture and convert body heat into full-spectrum infrared energy, resulting in stronger performance, faster recovery and better sleep. In addition, Celliant is durable and will not wash out, lasting the useful life of the product it powers.

An Affordable, Long-lasting Solution with Diverse Applications
As opposed to other IR viscose products which are coatings based, Celliant Viscose’s in-fiber solution increases wearability and longevity with a soft feel, durability from washing and longer life. The combination of Kelheim’s distinctive technology and the Celliant additives creates this unique fiber that provides full functionality without the need for any additional processing step — a new standard in the field of sustainable IR viscose fibers. This single processing also makes Celliant Viscose more cost-effective and time-efficient than coatings.

In addition, Kelheim’s flexible technology allows targeted interventions in the viscose fiber process. By modifying the fiber’s dimensions or cross sections or by incorporating additives into the fiber matrix, Kelheim can precisely define the fiber’s properties according to the specific needs of the end product.

Highly Sustainable
Celliant Viscose is a plant and mineral-based solution for brands seeking an alternative to synthetic fibers. It contains natural raw materials that are from the earth and can return safely to the earth.

Nature-based Celliant Viscose is certified by FSC® or PEFC™, which guarantees the origin in sustainably managed plantations, and is part of the CanopyStyle initiative to protect ancient and endangered forests. The production of Celliant Viscose takes place exclusively at the Kelheim facilities in Germany, complying with the country’s strict environmental laws and guaranteeing an overall eco-friendly product.

Backed by Science
Celliant is rigorously tested by a Science Advisory Board composed of experts in the fields of physics, biology, chemistry and medicine. The Science Advisory Board has overseen 10 clinical, technical and physical trials, and seven published studies that demonstrate Celliant’s effectiveness and the benefits of infrared energy.

For more information, visit www.celliant.com/celliant-viscose/

The RUDOLF GROUP is an uncontested agent of positive change especially when it comes to pioneering technologies that help transforming the textile and fashion industries. A shining example of conscious leadership played by the RUDOLF GROUP over the past decades is the invention and introduction of fluorine-free Durable Water Repellency (DWR) for textile and apparel. Since 2003, the RUCO-DRY product line has gradually convinced the industry that water-resistance can be achieved through the study and replica of natural models. “Biomimicry and the study of lotus leaves and bird’s feathers were instrumental in developing the very first fluorine-free DWR’s” says Dr. Gunther Duschek, Managing Director at RUDOLF GROUP.

Fifteen years later, RUDOLF GROUP does it again and takes a significant leapfrog. It pushes the boundaries of R&D well beyond fluorine-free, embraces nature and introduces water repellent performance entirely based on natural components. “We are launching two brand new, distinctive product propositions entirely manufactured from natural sources that do not compete with human and/or animal nutrition” continues Dr. Duschek.

RUCO®-DRY BIO CGR is an absolute breakthrough and the first Durable Water Repellent (DWR) agent based on plant-derived processing wastes. In fact, RUCO®-DRY BIO CGR is made of natural waste that accumulates as by-product during the processing of cereal grains in the food industry. The leftover material that would otherwise be disposed of is refined to create a powerful water and stain repellent textile finish.

“By turning natural waste into DWR we have optimized the biologic character of RUCO®-DRY BIO CGR where the active component is made of more than 90% bio carbon” states Dr. Dirk Sielemann, R&D Director at RUDOLF GROUP. He continues: “Although most of the product is composed by recycled biomass, RUCO®-DRY BIO CGR meets the performance and durability of conventional water repellent textile finishes”.

RUCO®-DRY BIO NPE is an equally outstanding product innovation where DWR is entirely based on a carefully selected mix of natural plant extracts. The well-balanced mix of plant-based ingredients combines excellent water and stain repellent effects with breathability and a natural handfeel. 

Unlike other 100% renewable raw materials, those used in the making of RUCO®-DRY BIO NPE are chemically and genetically non-modified and are not used as food, feed or fuel. Furthermore, all of the plant extracts that compose RUCO®-DRY BIO NPE are subject to a strict conservation and sustainability framework. “That’s why the supply of RUCO®-DRY BIO NPE is likely to remain limited to the creation and marketing of performance outdoor and sports apparel programs embedding state-of-the-art sustainable technology” concludes Dr. Duschek.

Both RUCO®-DRY BIO CGR and RUCO®-DRY BIO NPE are marketed through the BIO-LOGIC trademark, registered by RUDOLF GROUP.

• 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.”

Tata Communications, a global digital ecosystem enabler, has been recognised by global environmental non-profit organisation, Carbon Disclosure Project (CDP) with the distinguished ‘A-’ leadership score for implementing current best practices in sustainability for climate change. Tata Communications score is higher than the global average of ‘C’ and higher than the Asia region average of ‘D’. The Company scores the highest global score for playing a leading role in Climate Change governance, value chain management, energy efficiency, risk and opportunity disclosures in CDP 2020 reporting.

Tata Communications is among the top 34% companies globally to have received the leadership score for best practices out of 9,600+ companies that reported environmental disclosures this year. The scores are attributed basis a comprehensive peer benchmarking and sustainability performance.

The company made some strategic shifts in implementing several energy efficiency measures and this recognition reaffirms its focus on sustainability. In fiscal 2020, Tata Communications sourced approximately 15 million units of renewable energy and implemented emission reduction initiatives resulting in energy savings to the tune of 0.8 million units.

Tata Communications Sustainability strategy is based on the three facets of environment, social and governance (ESG) principles. The Company’s objective is to drive value creation for its stakeholders and drive sustainable business growth by managing risks and embracing opportunities, implementing robust governance practices and optimising the economic, environmental and social performance.

Underwear and loungewear specialist MEY announces the launch of its product series "Zzzleepwear,” developed to improve the quality of sleep for men and women. Setting new standards in the sleepwear category, functionality and technical innovation are the focus of the product styles that also offer stylish looks and wearer comfort.

People who sleep well recharge their batteries and can start the next day full of energy. However, many people suffer from sleep problems that can have a long-term negative impact on health and well-being. MEY’s Zzzleepwear was built to address that.

„Zzzleepwear“ reflects far-infrared rays
Fabrics of the "Zzzleepwear" series are equipped with energear™ technology from schoeller®. They reflect the body's own energy, which is emitted in the form of far-infrared rays. The textile finish is based on a titanium-mineral matrix, which reflects far-infrared rays back to the body. This effect can have a positive impact on the body and its energy balance. The understanding of far infrared rays and their positive properties has its origin in Asian healing medicine. Far Eastern medicine has incorporated life energy, "Qi" in Chinese, for centuries. More and more people are discovering that their performance increases when energy balance and energy flow are in harmony. schoeller® is transferring this function to textiles, and MEY is using the finish for the first time in nightwear.

Further fabric properties and design features
For the new "Zzzleepwear" series, the energear™ coating is applied to the inside of the fabric in a honeycomb-like form. It thus represents the core of the series. In addition, the fabric with melange structure is made of natural cotton and thermoregulating fibers that provide high breathability. The large proportion of natural cotton fibers increases the wearing comfort of this special nightwear. The "Zzzleepwear" series offers different color variations, as well as outstanding design features like flat seams and an interior print in the neck area.

Podcast with soporific effect
MEY wants to lull its customers to sleep in a particularly original way: A Spotify code is printed on every item in the series. By scanning this code, customers can listen to a sleep podcast created especially for the selected pair of pyjamas. In the eleven-part good night story, the products tell their own manufacturing story, from the cotton field to the fabric production in Albstadt to the store – so boring, it will have customers nodding off in no time.

• Innovative system uniquely combines blanket and guide roller cleaning to enhance productivity

Baldwin Technology Company Inc. has added TowerClean™ G2 for coldset offset presses to its range of best-in-class cleaning systems and consumables. Complementing the Impact Fusion™ and PREPAC®  product lines, the TowerClean G2 is a combined blanket and guide roller cleaning system that enables consistent print quality, more flexibility and increased productivity through fast and efficient cleaning cycles, which optimize uptime and reduce start-up waste.

For efficient blanket cleaning, TowerClean G2 distributes spray evenly across the web, and its optional brushes aid in lint removal. Utilizing Baldwin’s precision spray technology, this innovative system also has a dual-side option for those printers running coated stock paper. In addition, TowerClean G2 offers various operation modes, including combined blanket and guide roller cleaning, blanket cleaning only and guide roller cleaning only. “TowerClean G2 brings Baldwin surface cleaning technology to the small-format press market,” said Michael Stürmer, Baldwin’s Vice President, Product Line Cleaning. “While highly valued for their format flexibility, these presses often do not have the space needed for conventional blanket cleaning. With its modular and expandable design, the TowerClean G2 provides several configuration options to meet production requirements.” To support this new system, Baldwin offers its unique and Fogra-approved cleaning solvent TowerWash 2, which was specifically created for TowerClean G2.

“The TowerClean G2 was developed because of requests from customers, and we have, in fact, already sold two systems to web offset printers in Europe and the US,” continued Stürmer. “This new system further reinforces Baldwin’s strong commitment to creating innovative cleaning technologies for web offset customers.”