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Home 6. Consolidated Financial Statements
| CHF 1,000 | Note | 2021 | 2020 | ||
| Net sales | 4.1 | 289,455 | 100% | 257,819 | 100% |
| Change in work in progress/finished goods | -8,220 | -2,684 | |||
| Capitalized own production | 0 | 0 | |||
| Material costs and subcontractors | 4.2 | -87,775 | -94,473 | ||
| Personnel expenses | 4.3 | -121,762 | -124,328 | ||
| Other operating income | 4.4 | 1,833 | 1,433 | ||
| Other operating expenses | 4.4 | -46,394 | -46,459 | ||
| Depreciation of tangible assets | 5.5 | -8,114 | -8,304 | ||
| Amortization of intangible assets | 5.6 | -1,014 | -2,127 | ||
| Recycling of goodwill | 6.4 | 0 | -962 | ||
| Operating result | 18,009 | 6.2% | -20,085 | -7.8% | |
| Financial result | 4.5 | -850 | -2,289 | ||
| Ordinary result | 17,159 | 5.9% | -22,374 | -8.7% | |
| Non-operating result | 4.6 | -444 | -687 | ||
| Profit/loss before taxes | 16,715 | 5.8% | -23,061 | -8.9% | |
| Income taxes | 4.7 | 295 | 986 | ||
| Profit/loss | 17,010 | 5.9% | -22,075 | -8.6% | |
| Net earnings per share – undiluted | 1.04 | -1.35 | |||
| Net earnings per share – diluted | 1.04 | -1.35 |
The accompanying notes form an integral part of the consolidated financial statements.
| CHF 1,000 | Note | 31.12.2021 | 31.12.2020 | ||
| Current assets | |||||
| Cash and cash equivalents | 54,107 | 38,420 | |||
| Current financial assets | 5.1 | 427 | 2,021 | ||
| Accounts receivable | 5.2 | 19,618 | 18,959 | ||
| Inventories | 5.3 | 53,440 | 56,085 | ||
| Net assets from customer projects | 5.4 | 28,642 | 38,514 | ||
| Other current receivables | 4,109 | 4,917 | |||
| Prepaid expenses | 4,303 | 5,770 | |||
| Total current assets | 164,646 | 54.9% | 164,686 | 59.4% | |
| Non-current assets | |||||
| Tangible assets | 5.5 | 87,724 | 75,644 | ||
| Intangible assets | 5.6 | 3,603 | 3,758 | ||
| Investment property | 5.7 | 27,515 | 27,912 | ||
| Deferred tax assets | 5.9 | 16,551 | 5,126 | ||
| Total non-current assets | 135,393 | 45.1% | 112,440 | 40.6% | |
| Total assets | 300,039 | 100.0% | 277,126 | 100.0% | |
| Current liabilities | |||||
| Short-term financial liabilities | 5.10 | 2,109 | 14,205 | ||
| Accounts payable | 16,968 | 20,362 | |||
| Net liabilities from customer projects | 5.4 | 55,049 | 41,625 | ||
| Short-term provisions | 5.11 | 15,198 | 16,463 | ||
| Other current liabilities | 2,716 | 3,360 | |||
| Accrued expenses | 5.12 | 22,183 | 19,593 | ||
| Total current liabilities | 114,223 | 38.1% | 115,608 | 41.7% | |
| Long-term liabilities | |||||
| Long-term financial liabilities | 5.10 | 5,604 | 10,116 | ||
| Long-term provisions | 5.11 | 750 | 818 | ||
| Deferred tax liabilities | 5.9 | 14,392 | 5,065 | ||
| Total long-term liabilities | 20,746 | 6.9% | 15,999 | 5.8% | |
| Shareholders’ equity | |||||
| Share capital | 5.13 | 1,671 | 1,671 | ||
| Treasury shares | -2,601 | -3,212 | |||
| Capital reserves | 96,516 | 95,595 | |||
| Retained earnings | 69,484 | 51,465 | |||
| Total shareholders’ equity | 165,070 | 55.0% | 145,519 | 52.5% | |
| Total liabilities and shareholders’ equity | 300,039 | 100.0% | 277,126 | 100.0% |
The accompanying notes form an integral part of the consolidated financial statements.
| Retained earnings | ||||||||
| CHF 1,000 | Note | Share capital | Treasury shares | Capital reserves | Accumulated profits | Goodwill recognized | Translation adjustments | Total share-holders’ equity |
| Balance at 01.01.2020 | 1,671 | -3,658 | 95,830 | 77,729 | -962 | -1,390 | 169,220 | |
| Loss 2020 | -22,075 | -22,075 | ||||||
| Translation adjustments | -3,046 | -3,046 | ||||||
| Recycling in connection with the discontinuation of Mikron Berlin GmbH | 6.4 | 962 | 247 | 1,209 | ||||
| Change in treasury shares | 5.13 | 446 | -235 | 211 | ||||
| Balance at 31.12.2020 | 1,671 | -3,212 | 95,595 | 55,654 | 0 | -4,189 | 145,519 | |
| Profit 2021 | 17,010 | 17,010 | ||||||
| Translation adjustments | 1,008 | 1,008 | ||||||
| Change in treasury shares | 5.13 | 611 | -190 | 421 | ||||
| Share-based compensation | 1,111 | 1 | 1,112 | |||||
| Balance at 31.12.2021 | 1,671 | -2,601 | 96,516 | 72,664 | 0 | -3,180 | 165,070 | |
The accompanying notes form an integral part of the consolidated financial statements.
The accompanying notes form an integral part of the consolidated financial statements.
| CHF 1,000 | Note | 2021 | 2020 |
| Cash flow from operating activities | |||
| Profit/loss | 17,010 | -22,075 | |
| Depreciation and amortization | 5.5, 5.6 | 9,128 | 10,431 |
| Recycling of goodwill | 6.4 | 0 | 962 |
| Revaluation of investment property | 5.7 | 397 | 503 |
| Net gain (-)/loss (+) on sale of non-current assets | 4.4 | -220 | 115 |
| Changes in provisions | 5.11 | -1,231 | 7,021 |
| Changes in deferred taxes | 4.7, 5.9 | -2,029 | -2,442 |
| Share-based compensation | 4.5, 5.13 | 1,111 | 0 |
| Other non-cash items | 862 | 434 | |
| Movement in accounts receivable | -604 | 2,450 | |
| Movement in inventories | 2,867 | 4,077 | |
| Movement in net assets/liabilities from customer projects | 23,471 | 4,302 | |
| Movement in accounts payable | -4,146 | 3,203 | |
| Movement in other receivables and prepaid expenses | 2,339 | -733 | |
| Movement in other current liabilities and accrued expenses | 1,786 | 927 | |
| Cash flow from operating activities | 50,741 | 9,175 | |
| Cash flow from investing activities | |||
| Investments in tangible assets | 5.5 | -19,517 | -14,382 |
| Divestments of tangible assets | 5.5 | 724 | 328 |
| Investments in intangible assets | 5.6 | -838 | -946 |
| Divestments of financial assets | 5.6 | 4 | 0 |
| Investments in financial assets | 5.1 | -187 | 0 |
| Divestments of financial assets | 5.1 | 2,000 | 4,000 |
| Interest received | 26 | 101 | |
| Cash flow from investing activities | -17,788 | -10,899 | |
| Cash flow from financing activities | |||
| Increase (+)/repayment (-) of financial liabilities | -15,049 | 5,125 | |
| Repayment (-) of finance lease liabilities | -1,890 | -2,136 | |
| Interest paid | -414 | -479 | |
| Cash flow from financing activities | -17,353 | 2,510 | |
| Effect of exchange rate changes on cash and cash equivalents | 87 | -358 | |
| Net cash flow | 15,687 | 428 | |
| Increase (+)/decrease (-) of cash and cash equivalents | 15,687 | 428 | |
| Cash and cash equivalents at beginning of period | 38,420 | 37,992 | |
| Cash and cash equivalents at end of period | 54,107 | 38,420 |
The accompanying notes form an integral part of the consolidated financial statements.
1.1 Business operations
Mikron Holding AG and its subsidiaries (together the Mikron Group) develop, produce and market highly precise, productive, and adaptable automation solutions, machining systems and cutting tools. Rooted in the Swiss culture of innovation, the Group is a global leading partner to companies in the automotive, pharmaceutical, medtech, consumer goods, writing instruments and watchmaking industries.
The two business segments, Mikron Automation and Mikron Machining Solutions are based in Switzerland (Boudry and Agno). Additional production sites are located in the USA, in Germany, Singapore, China and Lithuania. Mikron Holding AG shares are traded on SIX Swiss Exchange (MIKN). The Mikron Group employs a total workforce of around 1,300.
1.2 Basis of preparation
The consolidated financial statements have been prepared in accordance with Swiss GAAP FER as a whole, including Swiss GAAP FER 31, applying the principle of historical cost accounting. Exceptions to this rule are deferred taxes that are calculated from valuation differences or tax loss carry-forwards and the applicable tax rate, marketable securities reported as current assets, derivative financial instruments and investment properties, which are reported at fair values.
1.3 Events after the balance sheet date
The Board of Directors approved the consolidated financial statements at its meeting of 9 March 2022. The approval of the consolidated financial statements by the Annual General Meeting is scheduled for 27 April 2022.
2.1 Consolidation
2.1.1 Scope and method of consolidation
The consolidated financial statements include Mikron Holding AG, Biel, and all Swiss and foreign subsidiaries which the parent company, directly or indirectly, controls either by holding more than 50% of the voting rights or by some other form of control. These entities are fully consolidated. All intercompany transactions and relations between the consolidated companies are offset against each other and eliminated. Profits on intercompany transactions are eliminated. Capital consolidation is based on the purchase method applied to the annual financial statements of all consolidated entities, prepared as at December 31 and determined according to uniform accounting policies. The Mikron Group does not have any shareholdings with voting power of less than 50% (prior year: none). The list of Group companies can be found on page 119. In the year under review there were no changes (prior year: two) in the group of consolidated companies. The merge of the four Swiss entities into one had no impact on the scope of consolidation.
2.1.2 Acquisition of Group companies
New companies acquired by the Mikron Group are reported in the consolidated financial statements from the date of obtaining control. The net assets acquired are valued at actual values and consolidated applying the purchase method. Intangible assets not previously capitalized are not valued or recognized. Any difference between the higher purchase price and the net assets acquired (goodwill) is offset against shareholders’ capital.
2.2 Business segment reporting
The Mikron Group is organized by business segments which are grouped according to the types of products and services they provide.
For the purposes of reporting, the following business segments have been identified:
2.3 Foreign currency translation
Foreign currency transactions are translated into the local currency using the exchange rate prevailing on the date of the transaction. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates are recognized in the income statement.
The consolidated financial statements are reported in Swiss francs. For consolidation purposes, assets and liabilities are translated into Swiss francs at the exchange rates on the balance sheet date. The income statement and all cash flows are translated at average rates for each period. Differences between the translation of assets and liabilities and the income statement are recognized in equity. Exchange differences on long-term intra-Group loans with equity character are likewise taken directly to Group equity.
The most significant exchange rates for the Group in the year under review in Swiss francs were:
| Currency | Average rate | Average rate | Closing rate | Closing rate |
| 2021 | 2020 | 31.12.2021 | 31.12.2020 | |
| 1 EUR | 1.08 | 1.07 | 1.04 | 1.08 |
| 1 USD | 0.92 | 0.94 | 0.92 | 0.89 |
| 1 SGD | 0.68 | 0.68 | 0.68 | 0.67 |
| 1 CNY | 0.14 | 0.14 | 0.14 | 0.14 |
2.4 Disclosure of related party transactions
Related parties are defined as companies or persons that exercise significant influence over Mikron or that are controlled by the Group. The Ammann Group, the Board of Directors, Group Management and the pension fund of Mikron Group are defined as related parties. All significant transactions, outstanding balances and if applicable contingent liabilities are disclosed in note 6.5 to the consolidated financial statements.
2.5 Assets and liabilities
2.5.1 Cash and cash equivalents
Cash and cash equivalents comprise cash in hand, current bank and postal accounts, as well as deposits held at call with a bank or other financial institution with maturities of 90 days or less, and are shown at nominal value.
2.5.2 Financial assets
Marketable securities, derivative financial instruments and term deposits with maturities of more than 90 days are reported as current financial assets. As all marketable securities are investments of excess cash that are available for sale, they are considered to be current financial assets independent of any maturity longer than one year. Term deposits are valued at nominal value less any impairment. Marketable securities and derivative financial instruments are measured at fair value and any changes in fair value are presented in the financial result.
2.5.3 Receivables
Receivables are carried at nominal value. A provision for bad debt risks is established for cases where the Group faces an objective risk of not collecting the outstanding amount. Factors such as information on financial difficulties being experienced by the debtor and overdue payments (more than 30 days overdue) are used to assess whether or not there is a bad debt risk. Changes in provisions are recognized as other operating expenses.
2.5.4 Inventories
Raw materials and other supplies, as well as goods purchased, are carried at weighted average cost, and finished products at the lower of costs of conversion (standard costs), including directly attributable production costs, or fair value less costs to sell. Settlement discounts are recognized as financial income. Additionally, down-payments from customers are disclosed as a deduction and prepayments to suppliers as an increase of inventories. Provisions are made for slow-moving items. Obsolete items are written off.
2.5.5 Customer projects
Customer projects for machining and assembly systems are accounted for using the “percentage of completion” method. The respective stage of completion is determined by individually measuring the work performed to date, based on the costs incurred compared to the total estimated costs. Costs to date and realized revenues calculated by reference to the stage of completion are continuously recognized in the income statement. On the balance sheet, projects in progress – offset by prepayments and progress payments from customers – are recognized as net assets or net liabilities from customer projects.
Projects, for which no specific customer contract exists yet, are capitalized as work in progress until delivery and disclosed as inventory. They are measured at the lower of costs of conversion (standard costs), including directly attributable production costs, or fair value less costs to sell. Net sales and profit are recognized at the time of delivery.
Immediate provision is recognized in the income statement for present or foreseeable losses on customer projects.
2.5.6 Tangible assets
Property consists of production and office buildings. Tangible assets are measured at historical cost and depreciated over their estimated useful lives. The exception to the rule is land, which is not depreciated. Added value expenses are capitalized and depreciated over the corresponding useful life. Expenditure on repairs, maintenance and replacements is charged directly to the income statement.
The straight-line depreciation rates are determined by the expected useful life, taking into account operational use and technical ageing. The estimated useful life is as follows:
| Years | |
| Real estate | 30–45 |
| Leasehold improvements | over the duration of the lease agreement |
| Equipment and installations | 12–25 |
| Furniture | 8–12 |
| Machinery | 5–10 |
| Other | 2–7 |
2.5.7 Intangible assets
Items which qualify as intangible assets mainly comprise development costs, purchased software and patents.
Development costs relating to new or significantly improved products and processes are capitalized only when they are technically and commercially feasible and when the Group has sufficient resources for their implementation. Expenses related to smaller development projects or early stage developments as well as product maintenance are taken to the income statement as an expense. Capitalized development costs are recognized at cost less accumulated amortizations and impairments (see note 2.5.9). The maximum estimated useful life is 5 years.
Other intangible assets are reported in the balance sheet at acquisition value less accumulated amortizations and impairments (see note 2.5.9). The estimated useful life of software is basically 3 to 5 years, for ERP licenses up to 10 years and for patents 5 to 10 years.
2.5.8 Investment property
Property held as a financial investment includes production and office buildings which are rented out to third parties. Investment properties are reported at market value. The Mikron Group currently owns a property in Nidau, Switzerland, with a market value of CHF 27.5 million as at 31 December 2021. The fair value of the property is reviewed annually as per the balance sheet date and adjusted if necessary. Revaluations are recognized in the income statement.
2.5.9 Impairment of non-current assets
Tangible and intangible assets are reviewed for impairment whenever events or changes in circumstance indicate that the carrying amount may not be recoverable. An impairment loss is recognized at the amount by which an asset’s carrying value exceeds its recoverable amount. The recoverable amount is the higher of an asset’s net selling price and its value in use (net present value of estimated future cash flows). The recoverable amount is determined for each asset separately or, where this is not possible, for the cash-generating unit to which the asset belongs. A reversal of impairment is recognized if the review of the recoverable amount reveals none or only a reduced impairment.
2.5.10 Lease contracts
Agreements that substantially transfer all the risks and rewards of ownership to the lessee are accounted for as finance leases. Assets held under finance leases are recognized as tangible assets at the lower of fair value at the time of acquisition and the net present value of the future lease payments. The corresponding liability to the lessor is included in the balance sheet as a financial liability. Lease payments are apportioned between financial expenses and reduction of the lease obligation. Assets under finance leases are amortized over their estimated useful lives.
Operating lease payments are treated as operating expenses and charged to the income statement as incurred.
2.5.11 Payables
Payables are measured at nominal values.
2.5.12 Financial liabilities
Short-term and long-term bank borrowings and loans are recognized at nominal value. Derivative financial instruments are measured at fair value and any changes in fair value are presented in the financial result.
2.5.13 Provisions
Provisions are recognized only if the company has a present obligation to a third party as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation, and the obligation can be sufficiently reliably estimated. If the time factor has a significant impact the amount of the provision is discounted.
2.5.14 Deferred taxes
Deferred income taxes are recognized on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases and are accounted for using the liability method. Deferred tax assets from capitalized tax loss carry-forwards are valued at the respective applicable tax rate. Deferred tax liabilities are generally recognized for all taxable temporary differences and deferred tax assets are only recognized to the extent that it is probable that future taxable profit will be available to offset against these assets.
Deferred tax assets and liabilities are calculated at the rate that is expected to apply in the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that are valid at the balance sheet date.
2.5.15 Employee benefits
There are a number of employee benefit plans in existence within the Group, each of which is aligned with local conditions in the country in question. They are funded by means of contributions to legally independent employee benefit schemes (foundations, insurance). An annual evaluation is made to see if an economic benefit or an economic obligation exists for the Mikron Group. Any such amount would be recognized in the balance sheet. The net periodic expense to be recognized in the income statement is equal to the contributions made by the employer plus any changes to the economic benefit or obligation.
2.6 Income statement
2.6.1 Revenue recognition
Net sales comprise the sale of products as well as the rendering of services. Sales are recognized if it is probable that the economic benefits will flow to the Group and the amount can be estimated reliably. Sales revenue is recognized upon transfer of the risks and rewards of ownership of the goods to the client. Cash discounts granted to customers are treated as reduction of sales.
Pro rata net sales and profits on projects for customer contracts are recognized in accordance with note 2.5.5 on the basis of the percentage of completion and of the estimated total profit for the project.
Service sales are recognized when the intervention has been completed.
2.7 Share-based payments
No share purchase-plan is in place for Mikron Group employees. The Board of Directors is granted a fixed amount converted into shares as part of the annual compensation which are blocked for at least three years. A performance-based number of shares, measured against the financial medium-term plan, are granted to Group Management and other key personnel at no consideration, refer to note 4.3. The shares to be granted under the long-term incentive plan are valuated with the year-end share-price for accrual purposes and re-valuated with the share-price at the grant date. The shares under the long-term incentive plan are transferred to Group Management after approval by the General Meeting and are blocked for a period of at least three years. Refer to note 5.13 for shares granted to Group Management and the Board of Directors.
The Mikron Group applies a central risk assessment system which covers both strategic and operational risks. All identified risks are given a rating (based on probability of occurrence and extent of potential losses) and recorded in a risk inventory. Based on this risk inventory, the Board of Directors conducts a review, at least once a year, of whether the risk governance and reduction measures in place are adequate for the company’s needs. Ongoing monitoring of the risk inventory is the responsibility of Group Management.
Accounting and financial reporting risks are monitored and reduced through a suitable internal control system.
The Group’s activities expose it to a variety of financial risks: market risks (primarily foreign exchange risks), credit risks and liquidity risks. The Group’s financial risk management program focuses on reducing financial market risks with the potential to adversely affect its financial performance.
Financial risk management is carried out by the centralized Treasury department in close cooperation with the Group companies on the basis of guidelines issued by the Board of Directors.
3.1 Foreign exchange risks
The Group is globally active and conducts transactions in a variety of currencies. Exchange rate fluctuations can therefore have a significant impact on the result. Exchange rate risks exist in future business transactions, in assets and liabilities recognized on the balance sheet and in net investments in foreign companies with a functional currency other than the Swiss franc.
The Group companies’ currency risks stemming from future business transactions are consolidated by Group Treasury and hedged centrally. To neutralize the risk, income in a given foreign currency is offset against expenditure in the same currency. Group Treasury hedges economically between 25% and 100% of the net cash flows in prospect for the next 12 months for EUR and USD. Forward contracts are the main instrument used for hedging. Gains and losses arising from the valuation of forward contracts at fair value are recognized in the financial result. The Group does not apply hedge accounting.
The Group has investments in foreign operations, whose net assets are exposed to foreign currency translation risks. Currency exposure arising from the net assets of the Group’s foreign operations is managed primarily through borrowings denominated in the relevant foreign currencies.
The table below shows the impact at the balance sheet date of a possible shift in the most relevant foreign currency rates against the Swiss franc on the valuation of financial instruments including intra-Group receivables and liabilities. The indicated impacts are based on the assumption that the Swiss franc increases the value against the listed currencies. In the event of a devaluation of the Swiss franc, an inverse impact applies.
| CHF 1,000 | Possible shift in currency rates | Impact on net earnings | Impact on shareholders’ equity from translation adjustments | ||
| 2021 | 2020 | 2021 | 2020 | ||
| Euro (CHF/EUR) | -10% | -292 | -529 | -207 | -302 |
| US dollar (CHF/USD) | -10% | -1,047 | -1,139 | -3,743 | -3,118 |
3.2 Interest rate risks
Interest rate risks result from changes in interest rates which could have a negative impact on the Group’s financial position, cash flow and earnings situation. Interest rate exposure is basically limited, owing to the low level of external financing and the conservative investment policy. The interest rate exposure is managed centrally. As at 31 December 2021 and 2020 respectively, no derivative financial instruments were being held to hedge any interest rate risks.
3.3 Price risks
The consolidated financial statements report at year-end short-term financial assets mainly related to high-quality Swiss franc bonds with a maturity of up to five years, which are measured at fair value. As a result of the short duration, price changes are reduced but could nevertheless significantly impact the financial income of the Group at the balance sheet date. The Group currently has no financial instruments which are exposed to changes in commodity prices.
3.4 Credit risks
Credit risks arise from the possibility that the counterparty to a transaction may not be able or willing to discharge their obligations, thereby causing the Group to suffer a financial loss. Counterparty risks are minimized by only concluding contracts with reputable business partners and financial institutions.
Relationships with customers are subject to credit checks. In addition, Group Management monitors outstanding payments on accounts receivable through monthly reporting procedures. The necessary allowances are made locally.
3.5 Liquidity risks
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. Prudent liquidity risk management includes maintaining sufficient cash and cash equivalents, the availability of funding from an adequate amount of committed credit facilities, and the ability to close out market positions. The required flexibility in funding for the project business of the Group is primarily achieved via adequate liquidity reserves. As at the end of the year, significant headroom (cash and cash equivalents, current financial assets and unused credit facilities) is available to the Mikron Group. A credit agreement worth CHF 50.0 million with a bank consortium exists, which is available for bank guarantees to secure advance payments from customers and for fixed advances. Under the credit agreement, it is also possible to additionally draw mortgage on two production facilities of up to CHF 20.0 million, of which none was drawn as at 31 December 2021 (prior year: none). At 31 December 2021, guarantees of CHF 21.2 million (prior year: CHF 28.2 million) were issued. The “COIVD-19” loan and “COVID-19 plus” loan at one production site in Switzerland were repaid and cancelled in 2021 (prior year: CHF 3,0 million were drawn). The mortgage on the investment property has been repaid (prior year: CHF 9.0 million) and replaced with a secured credit line of CHF 10.0 million, of which nothing was drawn.
Group Management monitors the Group’s liquidity status on the basis of three months’ rolling cash flow forecasts.
The table below summarizes the maturity profile of the Group’s financial liabilities at the balance sheet date based on contractual undiscounted cash outflows. The undiscounted cash outflows only consider the repayments of the principal of the bank borrowings and of the principal of the finance lease liabilities excluding any interest payment.
| CHF 1,000 | Maturity | Total and interest rate by currency | |||||||||
| Note | Less than 1 year | 1–3 years | 3–5 years | Over 5 years | CHF | % | EUR | % | USD | % | |
| At 31.12.2020 | |||||||||||
| Bank borrowings | 5.10 | 12,156 | 4,474 | 1300 | 600 | 14,500 | 1.2 | 4,030 | 3.7 | ||
| Finance lease liabilities | 5.10 | 1,854 | 2,967 | 775 | 0 | 3,621 | 2.0 | 1,975 | 2.1 | ||
| Derivative financial instruments (notional amount) | 6.1 | 18,046 | 0 | 0 | 0 | ||||||
| Total | 32,056 | 7,441 | 2,075 | 600 | |||||||
| At 31.12.2021 | |||||||||||
| Bank borrowings | 5.10 | 400 | 800 | 800 | 1,600 | 3,600 | 1.0 | ||||
| Finance lease liabilities | 5.10 | 1,709 | 2,254 | 150 | 0 | 2,929 | 1.9 | 1,184 | 2.0 | ||
| Derivative financial instruments (notional amount) | 6.1 | 14,152 | 0 | 0 | 0 | ||||||
| Total | 16,261 | 3,054 | 950 | 1,600 | |||||||
4.1 Net sales
| CHF 1,000 | 2021 | 2020 |
| Automation and machining systems (from customer projects) | 185,429 | 181,005 |
| Automation and machining systems (other) | 30 | 216 |
| Cutting tools | 52,586 | 39,973 |
| Service | 51,410 | 36,625 |
| Total net sales | 289,455 | 257,819 |
4.2 Material costs and subcontractors
| CHF 1,000 | 2021 | 2020 |
| Raw materials and components | -83,508 | -89,975 |
| Subcontractors | -4,267 | -4,498 |
| Total material costs and subcontractors | -87,775 | -94,473 |
4.3 Personnel expenses
| CHF 1,000 | 2021 | 2020 |
| Salaries and wages | -103,675 | -105,524 |
| Social charges | -12,026 | -12,781 |
| Pension expenses | -6,061 | -6,023 |
| Total personnel expenses | -121,762 | -124,328 |
The shares granted to Group Management in 2021 amounted to a total of CHF 0.3 million. For the number of shares allocated in 2021 refer to note 5.13. The Board of Directors will propose to the next Annual General Meeting an allocation of 22,509 shares to the members of Group Management as long-term incentive compensation related to the financial year 2021. The allocation of 38,684 shares to the other key personnel after the next Annual General Meeting was approved by the remuneration committee. The share price for the valuation at year-end was CHF 7.70. A total amount of CHF 1.1 million was expensed against equity (refer also to note 2.7).
In 2021, a total of CHF 1.2 million of short-time work compensation and government support was received (prior year: CHF 9.8 million).
4.4 Other operating income and expenses
| CHF 1,000 | 2021 | 2020 |
| Gain on sale of non-current assets | 319 | 120 |
| Other income | 1,514 | 1,313 |
| Total other operating income | 1,833 | 1,433 |
| Production- and project-related expenses, including shipping | -17,253 | -11,984 |
| Marketing and sales | -3,998 | -3,854 |
| Real estate | -7,527 | -8,875 |
| Personnel-related expenses, including company cars | -3,970 | -4,393 |
| Information technology | -6,017 | -6,046 |
| Capital and other taxes (excl. income taxes) | -944 | -672 |
| Loss on sale of non-current assets | -99 | -235 |
| Other expenses | -6,586 | -10,400 |
| Total other operating expenses | -46,394 | -46,459 |
The project-related expenses include the change in provision for future losses from customer projects (see note 5.4).
4.5 Financial result
| CHF 1,000 | 2021 | 2020 |
| Financial income | 3,676 | 2,709 |
| Financial expenses | -4,526 | -4,998 |
| Total financial result | -850 | -2,289 |
| Interest income | 26 | 101 |
| Interest expenses | -414 | -479 |
| Total interest result | -388 | -378 |
| Exchange gains | 3,649 | 2,602 |
| Exchange losses | -3,046 | -3,745 |
| Other financial income | 1 | 6 |
| Other financial expenses | -1,066 | -774 |
| Total other financial result | -462 | -1,911 |
| Total financial result | -850 | -2,289 |
4.6 Non-operating result
| CHF 1,000 | 2021 | 2020 |
| Rental income | 748 | 694 |
| Income from property-related services | 663 | 529 |
| Total non-operating income | 1,411 | 1,223 |
| Owner-related expenses | -712 | -613 |
| Expenses for property-related services | -746 | -794 |
| Total non-operating expenses | -1,458 | -1,407 |
| Revaluation | -397 | -503 |
| Total non-operating result | -444 | -687 |
4.7 Income taxes
| CHF 1,000 | 2021 | 2020 | ||
| Current income tax | -1,734 | -1,456 | ||
| Deferred income tax | 2,029 | -2,442 | ||
| Total income taxes | 295 | 986 | ||
| Earnings before taxes | 16,715 | -23,061 | ||
| Income tax at average tax rates | -3,477 | 21% | 4,381 | 19% |
| Income tax at other rates | 83 | 1,842 | ||
| Impact of non-capitalized loss carry-forwards | -6,957 | -7,380 | ||
| Release of / capitalization of tax losses | 11,052 | -54 | ||
| Tax credits | 572 | 1,948 | ||
| Change in tax rate | -573 | -64 | ||
| Other taxable effects | -405 | 313 | ||
| Total income taxes | 295 | 986 | 4% |
The applicable tax rate for the Group is 21% (prior year: 19%). This corresponds to the average income tax rates of the individual Group companies in each jurisdiction.
4.8 Restructuring costs
In 2021 there was no restructuring. The restructuring initiated in the prior year by Mikron Group’s Board of Directors to discontinue the machine business in Rottweil and to redimension the machine business in Agno in the Mikron Machining Solutions business segment as well as to discontinue the automotive industry related operations in Berlin in the Mikron Automation business segment were on track and all costs covered by existing provisions.
| CHF 1,000 | 2021 | 2020 |
| Inventory write-off | 0 | -2,559 |
| Work in progress write-off | 0 | -1,519 |
| Termination benefits | 0 | -5,953 |
| Operating expenses | 0 | -4,262 |
| Additional depreciation and amortization of fixed assets | 0 | -802 |
| Recycling of goodwill | 0 | -962 |
| Restructuring costs impacting the operating result | 0 | -16,057 |
| Recycling of translation adjustments | 0 | -247 |
| Restructuring costs impacting the financial result | 0 | -247 |
5.1 Financial assets
| CHF 1,000 | Note | 31.12.2021 | 31.12.2020 |
| Bonds | 0 | 2,021 | |
| Other current financial receivables | 187 | 0 | |
| Derivative financial instruments | 6.1 | 240 | 0 |
| Total current financial assets | 427 | 2,021 |
All previously held bonds expired and were repaid (prior year: CHF 2.0 million). The bonds comprised Swiss franc bonds.
5.2 Accounts receivable
| CHF 1,000 | 31.12.2021 | 31.12.2020 |
| Accounts receivable | 20,254 | 19,638 |
| Allowance for doubtful accounts | -636 | -679 |
| Total accounts receivable | 19,618 | 18,959 |
As at the balance sheet date, accounts receivable (including allowance for doubtful accounts) past due for 30 days and more amounted to CHF 2.6 million (prior year: CHF 2.2 million).
5.3 Inventories
| CHF 1,000 | 31.12.2021 | 31.12.2020 |
| Raw materials and components | 22,854 | 21,575 |
| Work in progress | 14,613 | 17,924 |
| Finished and trading goods | 14,906 | 16,968 |
| Prepayments to suppliers | 4,844 | 3,661 |
| Prepayments from customers | -3,777 | -4,043 |
| Total inventories | 53,440 | 56,085 |
The provision for slow-moving inventories amounts to CHF 21.1 million (prior year: CHF 20.2 million).
5.4 Customer projects
| CHF 1,000 | 31.12.2021 | 31.12.2020 |
| Projects in progress – costs incurred | 157,846 | 165,733 |
| Recognized profits less recognized losses | 34,020 | 42,627 |
| Prepayments from customers | -218,273 | -211,471 |
| Total net assets and liabilities from customer projects | -26,407 | -3,111 |
| Net assets from customer projects | 28,642 | 38,514 |
| Net liabilities from customer projects | -55,049 | -41,625 |
| Total net assets and liabilities from customer projects | -26,407 | -3,111 |
The stage of completion, determined by the costs incurred to date compared to the total estimated costs, was approximately 54% on 31 December 2021 (prior year: approximately 57%). At the balance sheet date, the Mikron Group had 220 projects in progress (prior year: 192 projects) with an average volume of CHF 1.6 million (prior year: CHF 1.9 million). As at 31 December 2021 there were no retentions by customers (prior year: none).
5.5 Tangible assets
| CHF 1,000 | Undeveloped real estate | Real estate | Machinery | Equipment and installations | Down payments and assets under construction | Others | Total |
| At cost | |||||||
| Balance at 01.01.2020 | 3,601 | 88,853 | 80,836 | 21,691 | 7,735 | 3,414 | 206,130 |
| Additions | 0 | 161 | -74 | 343 | 11,173 | 27 | 11,630 |
| Transfers | 0 | 0 | 4,640 | 1,343 | -5,877 | 0 | 106 |
| Disposals | 0 | -29 | -2,895 | -2,645 | 0 | -36 | -5,605 |
| Translation adjustments | -38 | -1,030 | -231 | -230 | -38 | -57 | -1,624 |
| Balance at 31.12.2020 | 3,563 | 87,955 | 82,276 | 20,502 | 12,993 | 3,348 | 210,637 |
| Additions | 0 | 446 | 1,357 | 644 | 17,916 | 321 | 20,684 |
| Transfers | 0 | 150 | 1,063 | 8 | -1,358 | 83 | -54 |
| Disposals | 0 | -553 | -2,834 | -2,759 | 0 | -347 | -6,493 |
| Translation adjustments | 13 | 343 | -436 | 6 | 0 | -53 | -127 |
| Balance at 31.12.2021 | 3,576 | 88,341 | 81,426 | 18,401 | 29,551 | 3,352 | 224,647 |
| Accumulated depreciation | |||||||
| Balance at 01.01.2020 | 0 | -57,949 | -53,298 | -18,574 | 0 | -2,528 | -132,349 |
| Depreciation | 0 | -1,896 | -4,874 | -1,352 | 0 | -182 | -8,304 |
| Disposals | 0 | 28 | 2,555 | 2,553 | 0 | 27 | 5,163 |
| Translation adjustments | 0 | 148 | 135 | 175 | 0 | 39 | 497 |
| Balance at 31.12.2020 | 0 | -59,669 | -55,482 | -17,198 | 0 | -2,644 | -134,993 |
| Depreciation | 0 | -1,904 | -3,995 | -2,053 | 0 | -162 | -8,114 |
| Transfers | 0 | 0 | 225 | -225 | 0 | 0 | 0 |
| Disposals | 0 | 465 | 2,488 | 2,687 | 0 | 347 | 5,987 |
| Translation adjustments | 0 | -56 | 212 | 5 | 0 | 36 | 197 |
| Balance at 31.12.2021 | 0 | -61,164 | -56,552 | -16,784 | 0 | -2,423 | -136,923 |
| Net book value | |||||||
| Balance at 31.12.2020 | 3,563 | 28,286 | 26,794 | 3,304 | 12,993 | 704 | 75,644 |
| Balance at 31.01.2021 | 3,576 | 27,177 | 24,874 | 1,617 | 29,551 | 929 | 87,724 |
| Of which finance leases | |||||||
| Balance at 31.12.2020 | 0 | 0 | 8,548 | 0 | 0 | 0 | 8,548 |
| Balance at 31.01.2021 | 0 | 0 | 4,830 | 0 | 0 | 0 | 4,830 |
At the balance sheet date, the Group had entered into CHF 0.3 million of capital commitments to purchase tangible assets (prior year: CHF 2.8 million). In the depreciation of the financial year 2021, no depreciation from the restructuring measures taken were included (prior year: CHF 0.4 million).
In 2021, the Group acquired tangible assets of CHF 0.5 million (prior year: none) on a financial leasing basis.
5.6 Intangible assets
| CHF 1,000 | Capitalized development costs | Software | Assets under construction | Others | Total |
| At cost | |||||
| Balance at 01.01.2020 | 3,633 | 21,107 | 719 | 364 | 25,823 |
| Additions | 0 | 422 | 363 | 0 | 785 |
| Transfers | 0 | 38 | -144 | 0 | -106 |
| Disposals | 0 | -721 | 0 | 0 | -721 |
| Translation adjustments | -111 | -117 | 0 | 0 | -228 |
| Balance at 31.12.2020 | 3,522 | 20,729 | 938 | 364 | 25,553 |
| Additions | 0 | 134 | 671 | 0 | 805 |
| Transfers | 0 | 351 | -297 | 0 | 54 |
| Disposals | 0 | -348 | 0 | 0 | -348 |
| Translation adjustments | 17 | -46 | 0 | 0 | -29 |
| Balance at 31.12.2021 | 3,539 | 20,820 | 1,312 | 364 | 26,035 |
| Accumulated amortization | |||||
| Balance at 01.01.2020 | -3,346 | -16,899 | 0 | -354 | -20,599 |
| Amortization | -287 | -1,830 | 0 | -10 | -2,127 |
| Disposals | 0 | 721 | 0 | 0 | 721 |
| Translation adjustments | 111 | 99 | 0 | 0 | 210 |
| Balance at 31.12.2020 | –3,522 | -17,909 | 0 | -364 | -21,795 |
| Amortization | 0 | -1,014 | 0 | 0 | -1,014 |
| Disposals | 0 | 348 | 0 | 0 | 348 |
| Translation adjustments | -17 | 46 | 0 | 0 | 29 |
| Balance at 31.12.2021 | -3,539 | -18,529 | 0 | -364 | -22,432 |
| Net book value | |||||
| Balance at 31.12.2020 | 0 | 2,820 | 938 | 0 | 3,758 |
| Balance at 31.12.2021 | 0 | 2,291 | 1,312 | 0 | 3,603 |
| Of which finance leases | |||||
| Balance at 31.12.2020 | 0 | 0 | 0 | 0 | 0 |
| Balance at 31.12.2021 | 0 | 0 | 0 | 0 | 0 |
At the balance sheet date, the Group had not entered into capital commitments to purchase intangible assets (prior year: none). In the amortization of the financial year 2021, no amortization from the restructuring measures taken were included (prior year: CHF 0.4 million).
5.7 Investment property
| CHF 1,000 | 2021 | 2020 |
| Balance at 1 January | 27,912 | 28,415 |
| Revaluation | -397 | -503 |
| Balance at 31 December | 27,515 | 27,912 |
| Original acquisition cost | 43,374 | 43,374 |
The Mikron Group is the owner of a property in Switzerland (land and building) that is leased to third parties. Related income and expenses are reported in the non-operating result (see note 4.6). The property is reported at market value, last reviewed on 31 December 2021. The discounted cash flow method was used for the valuation. The valuation with the discounted cash flow method was supported by an additional valuation of the ongoing development project. A discount rate of 3.9% was applied (prior year: 5.0%).
At the balance sheet date, the Group had no (prior year: none) capital commitment in relation to the investment property.
5.8 Employee benefits
All employees in Switzerland are insured through the Mikron pension fund, which is a foundation under Swiss law and legally independent of the Mikron Group. With a few exceptions, all employees in Switzerland are obliged to join the pension fund. The contributions are based on the annual salary and are accumulated in individual retirement accounts. Upon retirement (at age 65 for men and 64 for women), a lump-sum benefit may be drawn. Otherwise, a pension is paid out on the basis of a specified conversion factor.
Economic benefit/economic obligation and pension expenses
| CHF 1,000 | Surplus/deficit 31.12.2020 | Economic part of the organization | Change from prior year in the current result for the period | Contributions concerning the business period | Pension expenses 2020 | |
| 31.12.2020 | 31.12.2019 | |||||
| Pension institutions without surplus/deficit | 0 | 0 | 0 | 0 | -4,890 | -4,890 |
| Total | 0 | 0 | 0 | 0 | -4,890 | -4,890 |
| CHF 1,000 | Surplus/deficit 31.12.2021 | Economic part of the organization | Change from prior year in the current result for the period | Contributions concerning the business period | Pension expenses 2019 | |
| 31.12.2021 | 31.12.2020 | |||||
| Pension institutions without surplus/deficit | 0 | 0 | 0 | 0 | -4,770 | -4,770 |
| Total | 0 | 0 | 0 | 0 | -4,770 | -4,770 |
The information on the economic benefit as at 31 December 2021 is based on the last annual financial statements of the Mikron pension fund preceding the balance sheet date, i.e. the financial statements as at 31 December 2020. As at 31 December 2020, the Mikron pension fund reported a coverage rate of 117.9% (prior year: 117.1%). According to the pension fund’s provisional accounts, the coverage rate is expected to have increased by about +5% in the 2021 financial year. The number of active insureds increased in 2021 by about +1% (prior year: decrease of about -10%). Contributions matched pension expenses during the relevant reporting period.
For the employees in countries other than Switzerland there are no material pension plans with an employer’s obligation to contribute except for state-run social insurance.
5.9 Deferred taxes
| CHF 1,000 | 2021 | 2020 |
| Statement of changes in deferred tax liabilities | ||
| Balance at 1 January | 5,065 | 6,071 |
| Set-up and reversal of temporary differences | 8,766 | -1,056 |
| Change in tax rate | 573 | 64 |
| Translation adjustments | -12 | -14 |
| Balance at 31 December | 14,392 | 5,065 |
| Statement of changes in deferred tax assets | ||
| Balance at 1 January | 5,126 | 4,048 |
| Change in capitalized tax loss carry-forwards | 11,322 | -505 |
| Set up and reversal of temporary differences and change in tax credits | -30 | 1,874 |
| Change in tax rate | 0 | 0 |
| Translation adjustments | 133 | -291 |
| Balance at 31 December | 16,551 | 5,126 |
Deferred tax liabilities mainly result from temporary differences in the measurement of customer projects, the valuation of inventories and the market valuation of the investment property.
The deferred tax assets of CHF 16.6 million (prior year: CHF 5.1 million) result from accumulated tax loss carry-forwards that were capitalized, valuation differences and available tax credits. Due to uncertainties that future taxable profit will be available to offset against these assets, tax loss carry-forwards amounting to CHF 15.2 million (prior year: CHF 110.5 million) were not capitalized. Applying local tax rates results in a maximum potential tax benefit from non-capitalized tax loss carry-forwards of CHF 3.4 million (prior year: CHF 24.0 million).
5.10 Financial liabilities
| CHF 1,000 | Note | 31.12.2021 | 31.12.2020 |
| Short-term financial liabilities | |||
| Bank borrowings | 400 | 12,156 | |
| Finance lease liabilities | 1,709 | 1,854 | |
| Derivative financial instruments | 6.1 | 0 | 195 |
| Total short-term financial liabilities | 2,109 | 14,205 | |
| Long-term financial liabilities | |||
| Bank borrowings | 3,200 | 6,374 | |
| Finance lease liabilities | 2,404 | 3,742 | |
| Total long-term financial liabilities | 5,604 | 10,116 |
The investment property and four of the production facilities were mortgaged for liquidity management purposes. The mortgage on one production facility was drawn down, while the draw-down of the mortgage for two further production facilities will happen only when cash needs arise. Additionally, there is a secured credit line on the investment property. Details of the mortgages are given in note 6.2. The leasing liabilities relate to purchased machines used in production.
| CHF 1,000 | 31.12.2021 | 31.12.2020 |
| Financial liabilities, expiring | ||
| – not later than 1 year | 2,109 | 14,205 |
| – later than 1 year but not later than 3 years | 3,054 | 7,441 |
| – later than 3 years | 2,550 | 2,675 |
| Total financial liabilities | 7,713 | 24,321 |
The credit agreement with a bank consortium (refer to note 3.5) was signed in June 2020 and is valid until June 2024. The agreement secures financing in the form of bank guarantees (avals) and provides potentially required liquidity at standard market conditions. The contractual covenants have been met since the commencement of the agreement.
5.11 Provisions
| CHF 1,000 | Warranties | Employee incentive | Future costs for projects | Restructuring | Others | Total |
| Short-term provisions | ||||||
| Balance at 01.01.2020 | 2,673 | 458 | 5,642 | 126 | 892 | 9,791 |
| Additions | 3,263 | 157 | 1,308 | 7,909 | 1,563 | 14,200 |
| Utilization | -1,359 | -411 | -557 | -2,059 | 0 | -4,386 |
| Reversal | -1,067 | -38 | –1,991 | 0 | -179 | -3,275 |
| Reclassification long-/short-term | 0 | 178 | 0 | 0 | 0 | 178 |
| Translation adjustments | -16 | -2 | -100 | 74 | -1 | -45 |
| Balance at 31.12.2020 | 3,494 | 342 | 4,302 | 6,050 | 2,275 | 16,463 |
| Additions | 2,113 | 0 | 5,233 | 0 | 1,676 | 9,022 |
| Utilization | -805 | -342 | -786 | -4,366 | 0 | -6,299 |
| Reversal | -2,374 | 0 | -1,390 | 0 | -10 | -3,774 |
| Reclassification long-/short-term | 0 | 0 | 0 | -142 | 0 | -142 |
| Translation adjustments | -22 | 0 | 20 | -68 | -2 | -72 |
| Balance at 31.12.2021 | 2,406 | 0 | 7,379 | 1,474 | 3,939 | 15,198 |
| Long-term provisions | ||||||
| Balance at 01.01.2020 | 0 | 509 | 0 | 0 | 0 | 509 |
| Additions | 0 | 11 | 0 | 630 | 0 | 641 |
| Reversal | 0 | -159 | 0 | 0 | 0 | -159 |
| Reclassification long-/short-term | 0 | -178 | 0 | 0 | 0 | -178 |
| Translation adjustments | 0 | -3 | 0 | 8 | 0 | 5 |
| Balance at 31.12.2020 | 0 | 180 | 0 | 638 | 0 | 818 |
| Reversal | 0 | -180 | 0 | 0 | 0 | -180 |
| Reclassification long-/short-term | 0 | 0 | 0 | 142 | 0 | 142 |
| Translation adjustments | 0 | 0 | 0 | -30 | 0 | -30 |
| Balance at 31.12.2021 | 0 | 0 | 0 | 750 | 0 | 750 |
Warranty provisions are related to sales of products and services and are based on experience. The employee incentive provision was related to the long-term incentive plan. As the long-term incentive plan is now fully share-based, the provision was released, and the costs directly recognized against equity. Future costs relate to customer projects with final acceptance where remaining work is outstanding before the warranty period starts. The restructuring provision is related to expected costs until the end of the settlement of the obligations from employments and other contracts. The other provision is materially related to expected costs from legal risks of projects.
5.12 Accrusals
| CHF 1,000 | 31.12.2021 | 31.12.2020 |
| Accrued expenses | 21,617 | 19,552 |
| Current income tax payables | 566 | 41 |
| Total accrued expenses | 22,183 | 19,593 |
The accrued expenses of CHF 21.6 million (prior year: CHF 19.6 million) mainly consist of accruals in relation to employees’ annual leave entitlements, overtime and bonus totaling CHF 12.3 million (prior year: CHF 11.8 million). Additionally, there were outstanding trade payables, and accrued income taxes of CHF 0.5 million (prior year: CHF 0.3 million).
5.13 Shareholders’ equity
Share capital
The share capital as at 31 December 2021 amounts to CHF 1.7 million (prior year: CHF 1.7 million) and consists of 16,712,744 registered shares with a par value of CHF 0.10 per share.
As at 31 December 2021, there are two shareholders with investments of more than 5% in voting rights (Ammann Group Holding AG, Berne 41.9%; Mr. Rudolf Maag, Binningen, 14.1%). No other single shareholder holds 5% or more of the voting rights.
Treasury shares
In 2021 the company granted 39,129 treasury shares to Group Management (prior year: 26,935) and 25,095 treasury shares to the Board of Directors (prior year: 20,000) at no consideration, sold no shares (prior year: none) and acquired no treasury shares (prior year: none). At 31 December 2021 Mikron Holding AG, Biel owned 273,651 treasury shares (prior year: 337,875 shares).
Reserves
The statutory or legal reserves which may not be distributed amount to CHF 0.9 million (prior year: CHF 0.9 million). In the year under review, foreign currency translation adjustments of CHF -0.1 million (prior year: CHF -0.8 million) on loans with equity character in foreign currencies (EUR and SGD) were posted directly to shareholders’ equity.
6.1 Derivative financial instruments
For economically hedged future business transactions in foreign currencies, the Group uses financial instruments. As at the balance sheet date, the Group held the following forward exchange contracts:
| CHF 1,000 | Replacement value | Contract equivalent | Contract equivalent by due date | ||||
| positive | negative | 0–3 months | 3–12 months | 1–5 years | over 5 years | ||
| Balance at 31.12.2020 | 0 | 195 | 18,046 | 16,381 | 1,665 | 0 | 0 |
| Balance at 31.12.2021 | 240 | 0 | 14,152 | 8,126 | 6,026 | 0 | 0 |
All instruments are mainly denominated in euros and US dollars.
The replacement values are disclosed as financial assets (note 5.1) or short-term financial liabilities (note 5.10).
6.2 Assets pledged as security for liabilities
| CHF 1,000 | 31.12.2021 | 31.12.2020 |
| Real estate (including investment property) pledged as security for liabilities | 73,198 | 59,397 |
| Collateral securities – nominal | 90,200 | 97,114 |
| Loans and mortgages utilized | 3,600 | 18,530 |
| Other assets pledged as security for liabilities | 81,830 | 63,548 |
| Finance lease liabilities (machinery, licenses) | 4,113 | 5,596 |
As part of the financing arrangements the borrower notes for the investment property and one production facility in Switzerland were deposited as collateral for underlying mortgage agreements which were partially called off.
The credit limits made available by the bank consortium were secured by guarantees of CHF 77.0 million. Additionally, the existing borrower notes were deposited as collateral for two production facilities in Switzerland.
In addition, machines and licenses acquired under the terms of leasing agreements were pledged.
6.3 Off-balance sheet lease commitments
| CHF 1,000 | 31.12.2021 | 31.12.2020 |
| Off-balance sheet lease commitments, payable | ||
| – not later than 1 year | 2,542 | 3,714 |
| – later than 1 year but not later than 3 years | 2,489 | 3,496 |
| – later than 3 years but not later than 5 years | 1,286 | 1,718 |
| – later than 5 years | 2,764 | 3,138 |
| Total off-balance sheet lease commitments | 9,081 | 12,066 |
The future lease payments are mainly related to non-cancelable operating leases for office and production facilities and office equipment. The leases have varying terms and renewal rights.
6.4 Goodwill offset against shareholders’ capital
| CHF 1,000 | 2021 | 2020 |
| At cost | ||
| Balance at 1 January | 0 | 962 |
| Disposals | 0 | -962 |
| Balance at 31 December | 0 | 0 |
| Accumulated amortization | ||
| Balance at 1 January | 0 | -962 |
| Disposals | 0 | 962 |
| Balance at 31 December | 0 | 0 |
| Theoretical value 31 December | 0 | 0 |
The goodwill resulted from the acquisition of IMA Automation Berlin GmbH (now: Mikron Berlin GmbH) on 1 March 2012. The operations at Mikron Berlin GmbH materially seized as at 31 December 2020 and the company will be discontinued. The related goodwill amortization was recycled into the income statement in 2020.
6.5 Related party transactions
The transactions with related parties and companies consist of commercial business transactions conducted at standard market conditions. These mainly concern relationships with a small number of customers and suppliers.
| CHF 1,000 | 2021 | 2020 |
| Other operating expenses | -26 | -26 |
| CHF 1,000 | 31.12.2021 | 31.12.2020 |
| Other current receivables and prepaid expenses | 6 | 6 |
| Accounts payable | 5 | 6 |
| Other current liabilities and accrued expenses | 1 | 0 |
The Mikron pension fund owns no shares (prior year: none) of Mikron Holding AG.
6.6 Impairment test on Group level
The Group’s equity of CHF 164.7 million exceeded the Group’s market capitalization of CHF 128.7 million at 31 December 2021 (prior year: CHF 90.2 million). An impairment test was performed using a discounted cash flow model with assumptions approved by the Group’s Board of Directors. The impairment test supported the equity of the Group as a whole. An additional impairment test was performed for the Mikron Machining division. The test showed that the value of the division’s fixed assets is covered by its recoverable amount.
7.1 Information by business segment
| CHF 1,000 | Machining Solutions | Automation | Corporate / Eliminations | Total Group | ||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |
| Net sales – third party | 112,773 | 96,188 | 176,682 | 161,631 | 0 | 0 | 289,455 | 257,819 |
| Net sales – Group | 88 | 134 | 10 | 20 | -98 | -154 | 0 | 0 |
| Total net sales | 112,861 | 96,322 | 176,692 | 161,651 | -98 | -154 | 289,455 | 257,819 |
| Operating result | 2,509 | -21,556 | 15,796 | 1,109 | -296 | 362 | 18,009 | -20,085 |
| Earnings before interest and taxes (EBIT) | 2,509 | -21,556 | 15,796 | 1,109 | –740 | -325 | 17,565 | -20,772 |
| CHF 1,000 | Machining Solutions | Automation | Corporate / Eliminations | Total Group | ||||
| 31.12.2021 | 31.12.2020 | 31.12.2021 | 31.12.2020 | 31.12.2021 | 31.12.2020 | 31.12.2021 | 31.12.2020 | |
| Assets excluding cash and cash equivalents and current financial assets | 112,711 | 117,010 | 154,779 | 136,759 | -21,985 | -17,084 | 245,505 | 236,685 |
| Cash and cash equivalents | 8,302 | 5,461 | 12,015 | 13,950 | 33,790 | 19,009 | 54,107 | 38,420 |
| Current financial assets | 0 | 0 | 0 | 0 | 427 | 2,021 | 427 | 2,021 |
| Total assets | 121,013 | 122,471 | 166,794 | 150,709 | 12,232 | 3,946 | 300,039 | 277,126 |
7.2 Information by geographical segment
| CHF 1,000 | Net sales | |
| 2021 | 2020 | |
| Switzerland | 18,651 | 14,969 |
| Europe | 126,428 | 102,360 |
| North America | 94,136 | 96,117 |
| Asia/Pacific | 42,670 | 31,228 |
| Others | 7,570 | 13,145 |
| Total net sales | 289,455 | 257,819 |
8.1 Weighted average number of shares
| Number | 2021 | 2020 |
| Issued shares at 1 January | 16,712,744 | 16,712,744 |
| Issued shares at 31 December | 16,712,744 | 16,712,744 |
| of which treasury shares | -273,651 | -337,875 |
| Adjusted for weighted average | -25,974 | -13,850 |
| Weighted average number of shares – basic | 16,413,119 | 16,361,019 |
| Effect of dilution | 0 | 0 |
| Weighted average number of shares – diluted | 16,413,119 | 16,361,019 |
8.2 Computation of earnings per share
| CHF 1,000, except for per share information | 2021 | 2020 |
| Net earnings | 17,010 | -22,075 |
| Weighted average number of shares – basic | 16,413,119 | 16,361,019 |
| Net earnings per share – undiluted | 1.04 | -1.35 |
| Weighted average number of shares – diluted | 16,413,119 | 16,361,019 |
| Net earnings per share – diluted | 1.04 | -1.35 |
| in CHF million, except number of employees | 2021 | 2020 | 2019 | 2018 | 2017 | |||||
| Key performance data | ||||||||||
| Order intake 1) | 305.7 | 267.3 | 288.5 | 362.3 | 278.9 | |||||
| Net sales | 289.5 | 257.8 | 327.6 | 314.7 | 248.5 | |||||
| Order backlog 1) | 176.7 | 161.6 | 157.4 | 195.7 | 157.2 | |||||
| Research and development | 6.6 | 6.5 | 10.4 | 11.6 | 8.8 | |||||
| Number of employees (end of year) 1) | 1,327 | 1,331 | 1,486 | 1,398 | 1,275 | |||||
| Investments incl. acquisitions of subsidiaries – net | 21.0 | 12.0 | 18.5 | 15.9 | 10.2 | |||||
| Earnings | ||||||||||
| EBITDA 1), as % of net sales | 27.1 | 9.4% | -8.9 | -3.5% | 22.9 | 7.0% | 22.2 | 7.1% | 11.2 | 4.5% |
| EBIT 1), as % of net sales | 17.6 | 6.1% | -20.8 | -8.1% | 14.1 | 4.3% | 13.9 | 4.4% | 2.8 | 1.1% |
| Operating result, as % of net sales | 18.0 | 6.2% | -20.1 | -7.8% | 14.0 | 4.3% | 12.7 | 4.0% | 1.3 | 0.5% |
| Ordinary result, as % of net sales | 17.2 | 5.9% | -22.4 | -8.7% | 13.5 | 4.1% | 11.7 | 3.7% | 0.8 | 0.3% |
| Profit/loss for the year, as % of net sales | 17.0 | 5.9% | -22.1 | -8.6% | 8.8 | 2.7% | 12.2 | 3.9% | 1.2 | 0.5% |
| Cash flow | ||||||||||
| Cash flow from operating activities (incl. changes in net working capital), as % of net sales | 50.7 | 17.5% | 9.2 | 3.6% | 7.3 | 2.2% | 20.1 | 6.4% | 15.6 | 6.3% |
| Operating free cash flow (prior to acquisitions and changes in current financial assets) 1) | 31.1 | -5.8 | -3.5 | 8.2 | 7.0 | |||||
| Balance sheet | ||||||||||
| Balance sheet total | 300.0 | 277.1 | 289.5 | 289.5 | 265.7 | |||||
| Current assets | 164.6 | 164.7 | 178.0 | 185.0 | 170.5 | |||||
| Non-current assets | 135.4 | 112.4 | 111.5 | 104.5 | 95.2 | |||||
| Current liabilities | 114.2 | 115.6 | 103.6 | 110.0 | 95.7 | |||||
| Long-term liabilities | 20.7 | 16.0 | 16.6 | 15.2 | 12.7 | |||||
| Shareholders’ equity, as % of balance sheet total | 165.1 | 55.0% | 145.5 | 52.5% | 169.2 | 58.5% | 164.3 | 56.8% | 157.3 | 59.2% |
1) Alternative performance measures, see below or www.mikron/apm
In external communications, Mikron discloses performance measures that are not defined in Swiss GAAP FER. The description and, where applicable, the calculation from performance measures as per Swiss GAAP FER are listed below. All values listed in CHF 1,000.
Order intake includes all customer orders for goods and services received from customers, irrespective of whether the goods and services have been delivered or not. Blanket orders are only recognized as order intake when the goods are being called off.
The order backlog represents that part of the cumulative past order intake that has not yet been recognized as sales at the current balance sheet date. The order backlog equals the amount of sales that will, applying the current exchange rates of the orders, be realized when all open customer orders are concluded. The order backlog of customer projects managed applying the percentage of completion method corresponds to the order intake less the accrued sales according to the stage of completion of each project.
The earnings before interest, taxes, depreciation and amortization (EBITDA) represent the total of the operating and non-operating result, adding back the depreciation for tangible assets, the amortization for intangible assets and the revaluation of the investment property.
| EBITDA | 2021 | 2020 | Reference |
| Operating result | 18,009 | -20,085 | Consolidated income statement |
| + Non-operating result | -444 | -687 | Consolidated income statement |
| + Depreciation of tangible assets | 8,114 | 8,304 | Consolidated income statement |
| + Amortization of intangible assets | 1,014 | 2,127 | Consolidated income statement |
| + Recycling of goodwill | 0 | 962 | Consolidated income statement |
| + Revaluation investment property | 397 | 503 | Note 5.7 |
| EBITDA | 27,090 | -8,876 |
The earnings before interest and taxes (EBIT) represent the total of the operating and non-operating result.
| EBIT | 2021 | 2020 | Reference |
| Operating result | 18,009 | -20,085 | Consolidated income statement |
| + Non-operating result | -444 | -687 | Consolidated income statement |
| EBIT | 17,565 | -20,772 | |
| + Restructuring costs | 0 | 16,057 | Note 4.8 |
| Adjusted EBIT | 17,565 | -4,715 |
The operating free cash flow represents the total of the cash flow from operating activities and the cash flow from investing activities, the latter excluding the investments in and divestments of financial assets.
| Operating free cash flow | 2021 | 2020 | Reference |
| Cash flow from operating activities | 50,741 | 9,175 | Consolidated statement of cash flow |
| + Cash flow from investing activities | -17,788 | -10,899 | Consolidated statement of cash flow |
| – Investments in financial assets | -187 | 0 | Consolidated statement of cash flow |
| – Divestments of financial assets | 2,000 | 4,000 | Consolidated statement of cash flow |
| – Interest received | 26 | 101 | Consolidated statement of cash flow |
| Operating free cash flow | 31,114 | -5,825 |
The free cash flow represents the total of the cash flow from operating activities and the cash flow from investing activities.
| Free cash flow | 2021 | 2020 | Reference |
| Cash flow from operating activities | 50,741 | 9,175 | Consolidated statement of cash flow |
| + Cash flow from investing activities | -17,788 | -10,899 | Consolidated statement of cash flow |
| Free cash flow | 32,953 | -1,724 |
The net working capital is the net amount of the current assets and the current liabilities that stand in relation to the business activities.
| Net working capital | 2021 | 2020 | Reference |
| Accounts receivable | 19,618 | 18,959 | Consolidated balance sheet |
| + Inventories | 53,440 | 56,085 | Consolidated balance sheet |
| + Net assets from customer projects | 28,642 | 38,514 | Consolidated balance sheet |
| + Other current receivables | 4,109 | 4,917 | Consolidated balance sheet |
| + Prepaid expenses | 4,303 | 5,770 | Consolidated balance sheet |
| – Accounts payable | 16,968 | 20,362 | Consolidated balance sheet |
| – Net liabilities from customer projects | 55,049 | 41,625 | Consolidated balance sheet |
| – Short-term provisions | 15,198 | 16,463 | Consolidated balance sheet |
| – Other current liabilities | 2,716 | 3,360 | Consolidated balance sheet |
| – Accrued expenses | 22,183 | 19,593 | Consolidated balance sheet |
| Net working capital | -2,002 | 22,842 |
The net debt compares financial assets and financial liabilities.
| Net debt | 2021 | 2020 | Reference |
| – Cash and cash equivalents | 54,107 | 38,420 | Consolidated balance sheet |
| – Current financial assets | 427 | 2,021 | Consolidated balance sheet |
| + Derivative financial instruments | 240 | 0 | Note 5.1 |
| + Short-term financial liabilities | 2,109 | 14,205 | Consolidated balance sheet |
| – Derivative financial instruments | 0 | 195 | Note 5.10 |
| + Long-term financial liabilities | 5,604 | 10,116 | Consolidated balance sheet |
| Net debt | -46,581 | -16,315 |
The equity ratio corresponds to the Group’s total equity divided by the balance sheet total.
| Equity ratio | 2021 | 2020 | Reference |
| Total shareholders’ equity | 165,070 | 145,519 | Consolidated balance sheet |
| Total assets | 300,039 | 277,126 | Consolidated balance sheet |
| Equity ratio | 55.5% | 52.5% |
The number of employees is the total of the full-time equivalent of all employees. The total headcount is higher than the Group’s full-time equivalent as not all employees are working full-time.
| 2021 | 2020 | 2019 | 2018 | 2017 | |
| Number of shares1) | |||||
| Registered shares | 16,712,744 | 16,712,744 | 16,712,744 | 16,712,744 | 16,712,744 |
| Total | 16,712,744 | 16,712,744 | 16,712,744 | 16,712,744 | 16,712,744 |
| Key figures per share in CHF2) | |||||
| Loss/profit | 1.04 | -1.35 | 0.54 | 0.74 | 0.07 |
| Cash flow from operating activities | 3.09 | 0.56 | 0.45 | 1.21 | 0.94 |
| Shareholders’ equity | 10.06 | 8.89 | 10.37 | 9.90 | 9.41 |
| Distribution to shareholders | 0.00 | 0.00 | 0.20 | 0.05 | 0.05 |
| Share price SIX Swiss Exchange | |||||
| At 31 December | 7.70 | 5.40 | 6.76 | 6.76 | 7.30 |
| High/low close during business year | 8.08–5.30 | 6.58–4.20 | 9.26–6.02 | 10.45–6.40 | 7.61–5.80 |
1) All shares are entitled to dividends/distributions.
2) Based on the weighted average number of shares
Trading volume (daily average)
In the 2021 fiscal year the average daily trade volume was 8,026 shares (prior year: 5,537 shares).
Share performance
as %
