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.

• In course of the succession planning, Christian Straubhaar will take on the position as Senior Vice President Sales at Rieter Machines & Systems in Winterthur on January 1, 2021.
• Straubhaar will succeed Reto Thom who will retire.

Christian Straubhaar holds an Engineering Master’s Degree in Industrial Management from the Swiss Federal Institute of Technology in Zurich (ETH) and is a sales executive with 20 years of extensive experience in the textile industry. Recently, Straubhaar was responsible as Group Sales & Marketing Director at Itema for the world-wide sales of machines and spare parts. Prior, he held various positions in Operations and as Business Unit Head in Itema and other global textile companies.

His professional career shows a solid track record in identifying new market potentials and growing the business for the company. Straubhaar has a longstanding experience in selling to both large and small customers and developing key accounts within our industry.

Reto Thom has very successfully lead the Sales department at Rieter Machines & Systems for many years and made an enormous contribution to the success of the company.

• Technology, creativity and sustainability
• Recycled materials, bright colours, eclectic shapes: excellence is in the details, and the new creations by the Italian-Swiss group have plenty to say.

Mendrisio – Looking at the new Fall-Winter 2021-2022 collection of the Riri Group, it almost seems as if the difficult months to which the pandemic has forced the whole world, have been another new – though unwanted – challenge for the Italian-Swiss company. A testbed that sparked the mind and lit the fire of creativity. Therefore, today, the brand ingredient which for over 80 years has embellished the
garments designed by major fashion system brands with top-quality zips and buttons, also introduces a wide range of heterogeneous creations, intended to cover different aesthetic and functional requirements on the market.

This collection has been divided into three macro-topics; it is a new chapter in the history of the Group.

LIFE SERVING
Keyword: sustainability. Or, more romantically, “Reuse with love”. From the use of materials produced using organic waste and recycled plastics to actual destocking – the re-introduction on the market of unsold items to give them new life through a restyled shape: the topic of “life serving”, for Riri, translates into the meticulous and constant search for materials with a low environmental impact and in the committed attempt to reduce the use of plastic to a minimum. This is why the Group has decided to use recycled polyester tapes, made with new organic cotton, pullers coated with cork, created using 100% recycled plastics or rubber taken from the sole of shoes. Stainless steel – an exceptionally resistant and sturdy material, as well being subject to no galvanic treatments and highly recyclable – characterizes chains and pullers, while the Nylon zip consists of fully recycled tape and chain, and Decor introduces a new 100% polyamide version. On the button side, “life serving” includes buttons with a cork coating, the Zero button with coating made of recycled Meryl polyamide and the F4 with a 100% recycled Nylon head and the heads made of APILON 52 (rubber made of 65% vegetable oils and energy from renewable sources) coated with microfiber from the company Alcantara.

ENGINEERING
This is definitely the most rigorous yet progressive section in the collection, drawing on technological innovation and on uncertainties related to the current situation, to play with shapes, colours and materials. Between zips and buttons there is a prevalence of squared and minimal shapes, also on the tapes of the zips through sublimation and digital printing techniques. The leading colour is grey in its variation of hues, where the insertion of coloured tones sometimes stands out. The leading material, on the other hand, is metal.

OVER SHOCK
A creative topic where “exaggeration” is the keyword, a trend whose style and character somehow remind us of Gen-Z, apart from being especially suitable for outdoors. “Over state” uses the hip hop mood and settings of the Nineties, taking them to the extreme, enlarging shapes and focusing on bright and fluorescent colours such as purple, yellow, blue, orange or green. An example of this is Storm Evo, a zip which is popular in the outdoor sector for its high levels of water resistance and strength, which features a new electric blue chain and tape with reflecting side strips. Also outstanding in terms of originality is the new purple puller, with its anti-theft shape, fixed onto a fluorescent yellow chain. The perfect expression of this category are zippers such as Decor, Nylon and Aquazip, especially recommended for the outdoor sector in general.

COLLECTION HIGHLIGHTS: RESTYLING AND INNOVATION
All the macro-categories selected for the FW 21-22 seasons are included in some special product innovations, most notably the even more minimal and thin shapes of some buttons and the introduction of five different colours for the small synthetic ring, a real point of strength in Cobrax pressure buttons. Also the range of magnetic buttons is complemented by the addition of two extra snaps. As regards zips, the Riri Group team has been working on careful restyling of shapes, more specifically in the shapes of Decor zip bodies – ideal for the luggage industry – further improved from both an aesthetic and functional viewpoint.

For more than 50 years, vehicle manufacturers have relied within their model development on Autoneum’s measuring systems for vehicle acoustics. With ATLAS, Autoneum has now added another particularly powerful device to the portfolio: Thanks to the efficient and reliable measurement methodology, noise-reducing vehicle components and materials can be analyzed and developed faster and with a significantly lower need for resources in the future.

With the ongoing electrification of vehicles and trends like autonomous driving, future car generations will no longer be used solely for transport – remote working and recreation will equally play a key role. This requires a vehicle interior that is as noiseless as possible. In order to identify and insulate potential internal and external sound sources already in the pre-development of new models, car manufacturers around the world rely on Autoneum’s highly specialized measurement tools. The newly launched ATLAS – short for “Airborne Transmission Loss Analysis System” – measures the acoustic insulation and transmission loss of components such as carpets, inner dashes and floor insulators. This allows customers to assess noise-reducing parts within minutes and select acoustic components tailored to their needs.

ATLAS sets new testing standards in this regard. While developers previously had to analyze the NVH behavior (noise, vibration, harshness) of interior parts using material samples of around one square meter in size, ATLAS makes this process faster, cheaper and more environmentally-friendly. It enables measurements of small samples with a diameter of no more than ten centimeters, which substantially decreases the amount of material used. Thanks to its four highly sensitive microphones, only two trials are required to collect precise and valid test data, making the system developed at Autoneum’s research center in the Swiss city of Winterthur especially suitable for quality assurance and repeatability of the results obtained. Users also benefit from time savings of up to 50 percent compared to the previous testing standard.

Autoneum’s measurement systems represent the global industry standard and are used successfully by vehicle manufacturers, automotive suppliers and research institutions alike. The Company is therefore not only making a significant contribution to the mobility of the future with its noise-reducing products, but now with ATLAS as well.

The corona pandemic has a significant impact on the global economy and thus also on the global automotive industry. The temporary plant closures at almost all customers in all regions will result in a revenue decline at Autoneum in the current year, the extent of which cannot yet be estimated.

In addition to the ongoing cost-saving programs, Autoneum has therefore decided on a comprehensive set of measures to further increase the flexibility of personnel and material expenses. This includes staff adjustments, e.g. by reducing the number of temporary employees in plants. In addition, short-time work at the Swiss sites, the Group’s headquarters in Winterthur and at the Sevelen plant (canton of Sankt Gallen), as well as short-time work in some other European countries and temporary closures of production facilities in various regions in line with those of customers are being implemented. With these measures, Autoneum is at the same time making its contribution to protecting the workforce, breaking chains of infection and containing the spread of this pandemic.

Despite the above-mentioned countermeasures and in light of the advancing spread of the coronavirus, Autoneum does not expect to achieve its targets for the business year 2020. Due to the considerable uncertainties regarding the course and duration of the pandemic, no updated outlook is provided for 2020 for the time being.

FOR POLYESTER AND “ACTIVE WEAR” COLOR TRENDS FOR WINTER 2021/2022

Archroma, a global leader in color and specialty chemicals towards sustainable solutions, is at the Première Vision exhibition to present its 'Color Atlas by Archroma®' for polyester. This very first color library for polyester brings together 1,440 colors for sportswear and athleisure, swimwear, children's clothing, shoes, as well as for fashion and home textiles. In this context of innovation, Carlin, a pioneer in anticipating trends since 1947, will present its selection of trends in active wear and will unveil the 3 hottest colors for winter 2021/2022: “In our societies now ruled by the vital need for ENTERTAINMENT, the DIVERGENT "extroverted Slashers", free-spirited and efficient, stimulate a MAXIMUM SELF-EXPRESSION which combines communicative power and contagious adrenaline.

In terms of shapes, we imagine assertive, shaked, keeled proportions, with volume contrasts: ultra-tight and stretched volumes. Concerning the materials, this refers to compact knits, fine nervous gauges (neo milano stretch pop), embossed ribs, colored furs, knitted materials, city: ultra-matte color drapery, double sides, jeans, over dye, deep dye.”

Selected in collaboration with fashion, sportswear and trend experts, the Color Atlas by Archroma® Polyester Library brings together new colors for in line with current trends, from the most neutral tones to the most vivid hues to fluorescent colors.

• Transaction completed in Ingolstadt
• Extraordinary profit contribution after tax of EUR 60 million expected
• Board of Directors approves submission of building application for Rieter CAMPUS in Winterthur
• Project volume of around CHF 80 million expected

Rieter completed the real estate sale in Ingolstadt (Germany) to GERCHGROUP AG of Düsseldorf (Germany) on September 13, 2019. As reported in December last year, Rieter expects an extraordinary profit contribution after tax of around EUR 60 million from this transaction.

The employees in Ingolstadt will move into a new building in the second half of 2021. Rieter will thus create a modern working environment for innovative research and development work and the respective support functions.

On September 13, 2019, the Board of Directors of Rieter Holding Ltd. has made the decisions required for the building application regarding the Rieter CAMPUS project to be submitted in good time. The Rieter CAMPUS in Winterthur will consolidate customer center, product and technology development and administration. Rieter expects to implement the project with a project volume of around CHF 80 million. Archaeological excavations and the demolition of the building “Werkhalle 40” are currently underway.

The Rieter CAMPUS will make an important contribution to the implementation of the innovation strategy and thus to the successful further development of the company. Approval of the building application is expected in spring of 2020.

• Ice, style and performance

These are the keywords which describe the new eclectic creations by the Riri Group for the Fall Winter season 2020-2021: a journey through the winter, its atmosphere and its colours Mendrisio, September 2019 - Première Vision Paris (17 - 19 September) will set the stage for the new proposals for the Fall Winter 2020-21 collection by the Riri Group, a leading brand in the zip and button manufacturing sector for high couture and outdoor apparel. A preview of the new collection by the Swiss group will take place at Munich Fabric Start (3 – 5 September).

COLOURS, MATERIALS AND TEXTURES

Winter landscapes and polar tones have inspired the colours of this new collection: nuances of grey, azure and white remind us of the typical tones of ice; also dominant is the presence of blue, intense and rich in contrast thanks to the attractive green inserts; black interventions are then harmoniously inserted as part of the colour palette, creating an appealing interplay of colour references. Tapes, pullers and chains provide new pleasant tactile sensations and unexpected visual inputs, through the search for always new processing methods the iceberg effect reproduced with a laser system, the texture reminding us of snake skin, from marble effect to horn processing, and freehand diamond turning, as well as the three-dimensional drop varnishing and the stylish mother-of-pearl effect.

NOVELTIES

The guiding thread for the new “Winterstorm” collection is the use of nuanced colours and ‘ice-like’ effects, reminding us of winter landscape and climates, as in the new Decor Cristal zip with transparent chain or in the Aquatyre zip, available also in a new luminescent version. Among the new creations, the Metal 3H zip stands out: the smallest and most innovative in the collection, lightweight and with a streamlined design. The provocations for this fall-winter have reached extreme levels, with a zip made of synthetic fur and incorporated buttons, whose cover can be removed and then reapplied, to face polar temperatures with a touch of glamour. Alongside the most fashionable novelties, the research by the Riri group does not cease to surprise in the outdoor sector also as regards buttons. This is confirmed by Rislide, the snap closure with a nylon body and Zama button. The innovative b-lock pressure button – with high lateral hold – has been restyled with a silicone shaped head in three colours. As part of a collection characterised by style and performance elements, it is definitely worth mentioning Zero, also in its invisible version: this button – thanks to its elegant design, combines practicality and style without compromising on performance.

Color Solutions International, a member of the DyStar® Group, has issued their COLOR ANALYSIS report for Autumn/Winter 2020.

The trend and color experts at CSI are delighted to bring you the sixth issue of the Color Analysis report. New for this season, the experts at Color Solutions International have delved deeper by giving more detail for each color using their proprietary Relative Color Popularity process (RCP). RCP is a marriage of color validation with trend color forecasting. The RCP report has been organized into four categories to help validate your color selection.

In this issue, 54 ColorWall™ colors are featured along with additional color validation, color evolution, and direction by hue. "This season’s Color Analysis for Autumn/Winter 2020 found its inspiration in our heritage and reconnection of our roots. We look from the past to present day reality to shape the themes of trends reflected in the spirit of time we are living in. From a time gone by to this moment of now, themes take shape as they transform historic elements into modern day life, intertwining together to create a new existence full of creative energy and vitality.

Reminiscent of a time gone by, all that we consider heritage to be, has developed into a level of loyalty and trust over time. The quality in make and the care that goes into construction found in the ideas of heritage goods begin to resurface into a lifestyle of quality over quantity. In the present and future looking forward, we also continue to explore innovative lifestyle trends as we are becoming more conscious about the environment and the impact our choices have.

For SEEK’s 10thBirthday we want to give something to those who are usually overlooked. Together with One Warm Winter, we are wrapping up Goodie Bags for the homeless and taking them where they are actually needed – to the streets. That’s why we are asking brands to donate old collection pieces, samples, stock, etc.
 
“We are really happy to team up with One Warm Winter for our SEEK donation initiative. We want to counteract the omnipresent throwaway mentality. Every step counts. Homelessness is a growing issue, especially in Berlin – we hope to bring some warmth to the city streets.”
– SEEK Team
 
“With the GiveBag the fashion industry is setting an important example in terms of awareness and sustainability. Ultimately, these bags are filled with what is often left out by the economy: true charity.”
– Dominic Czaja, One Warm Winter
 
The huge One Warm Winter GiveBag will be filled on all three show days (15–17 January) in front of the SEEK location at Arena Berlin. Every donor will receive a donation receipt and stay informed about the next steps. The GiveBags will be handed out to people in need by the SEEK team and One Warm Winter at the next charity event.

Additional support will be provided by TOMS with a requested voluntary donation in exchange for a nice hot coffee. The end sum will be matched by TOMS and donated directly to One Warm Winter.
 
“Giving is at the heart of everything we do at TOMS, but it’s projects like this that are in our own backyard that hit home the most. Homelessness is one of the issues closest to our hearts, so we couldn’t be more honoured to work with SEEK and One Warm Winter this season to lend a hand to our friends in Berlin that need it most.”
– Lisa Hogg, TOMS EMEA Marketing Director
 
The reaction from the SEEK brands towards our initiative has been amazingly positive – almost all of them are actively and enthusiastically participating by donating garments that cannot be sold anymore.
 
“Palladium Boots is very excited about this call for action and being able to take part in supporting the cause. City terrain is what we are built on and we are glad to gift a little warmth and particularly the gesture of humanity together with SEEK and One Warm Winter.”
– Melanie Bruss, Marketing Manager, Palladium Boots D, AT & NL
 
“The entire CHIEMSEE family is amazed by this initiative! It’s a great feeling to pass on some warmth and distribute it more fairly. Thank you SEEK and One Warm Winter for the idea – the fashion industry definitely needs more of those!”
– The CHIEMSEE family