|SMS group in EUR millions1)||2014||2015||2016||2017||2018||2019|
Figures in accordance with International Reporting Standards (IFRS).
1. Including others/consolidation.
2. Year average with apprentices/others.
At EUR 3,154 million, SMS group’s incoming orders in the past business year were EUR 67 million higher than the previous year’s figure (2018: EUR 3,087 million). Overall, we are satisfied with order intake in 2019. At around EUR 3.2 billion, we generated our highest incoming orders since 2014. Our key growth issues service, digitalization and New Horizon confirm our targets in these areas. We therefore slightly outperformed our forecast of stable order intake at the previous year’s level (+2.1%).
Order intake came to EUR 2,913 million in metallurgical plant engineering (previous year: EUR 2,812 million). This corresponds to a volume increase of EUR 101 million against 2018. Order intake in plant business picked up slightly, coming to EUR 2,173 million at the end of the year (previous year: EUR 2,113 million). Our service business continued to enjoy steady growth, reaching EUR 740 million by the year-end (previous year: EUR 698 million).
At elexis, the level of incoming orders generated in the previous year could not be sustained, with booked incoming orders in 2019 coming to EUR 197 million (previous year: EUR 222 million) on account of restrained demand and a number of projects being postponed. The trend of a significant slowdown in demand also continued at Elotherm in the 2019 business year. At EUR 47 million, order intake even declined on the low previous year’s figure (previous year: EUR 56 million).
At EUR 2,935 million, sales generated in the past business year was up by EUR 130 million on the previous year (EUR 2,805 million). Our forecast that sales will rise slightly (+4.4%) was confirmed.
This good performance is thanks to metallurgical plant engineering. Sales came to EUR 2,669 million in the 2019 business year, higher than in the previous year (EUR 2,517 million). Sales generated in plant business improved to EUR 1,956 million (previous year: EUR 1,842 million), with sales in the service business climbing to EUR 713 million (previous year: EUR 675 million).
The regional distribution of the SMS group’s sales was as follows in 2019:
|Western Europe:||29.9% (previous year: 27.3%)|
|North America:||17.8% (previous year: 15.0%)|
|China:||14.2% (previous year: 15.7%)|
|Eastern Europe:||12.0% (previous year: 10.5%)|
|India:||9.1% (previous year: 8.8%)|
|Asia, other:||6.3% (previous year: 8.3%)|
|MENA:||5.1% (previous year: 8.8%)|
|Latin America:||4.6% (previous year: 4.7%)|
|Africa:||1.2% (previous year: 0.8%)|
elexis generated sales of EUR 206 million in the past business year, almost on par with the previous year (EUR 211 million). Sales at Elotherm came to EUR 65 million. The sales trend is negative (previous year: EUR 82 million) on account of weak order intake in the last two years.
As order intake exceeded sales, order backlog totaled EUR 3,850 million (previous year: EUR 3,623 million).
The SMS group employed an average of 13,793 people in the past 2019 business year (previous year: 13,872). This corresponds to another, albeit slight, decrease in the number of employees by 79 people in comparison to the end of the previous year.
The number of employees at elexis/Elotherm was onpar with the previous year’s average figure at 1,563 (previous year: 1,562).
Women and men in management positions
The law adopted in 2015 is intended to lead to the equal participation of women and men in management positions in the private and public sectors. For companies subject to co-determination requirements, the supervisory board sets targets and deadlines for the share of women in the supervisory board, management and the two senior levels below management.
The management of the SMS group is open to the participation of women in senior positions. The selection of candidates for executive bodies and management positions alike is guided by knowledge, skills and professional qualifications. Candidates’ sex is not a criterion. The following targets have been defined for the share of women at different hierarchical levels. These targets will remain in effect until the shareholder meeting that adopts the resolution of the annual financial statements for the 2020 business year.
The Supervisory Board of SMS GmbH has resolved that the share of women in the Supervisory Board is set at the current share of women of 8%. It was also resolved that the current share of women in management (0%) will be retained as the target until the end of the current term of office. The management of SMS GmbH is aware that currently no women are employed at the first or second reporting levels (share of women: 0%). For the period until the end of the term of office of the Supervisory Board of SMS GmbH, this current share of women is set as the target for the first and second reporting levels of SMS GmbH.
SMS group GmbH:
At the level of SMS group GmbH, the Supervisory Board has resolved that the share of women in the Supervisory Board is confirmed as the current share of women (25%). The Supervisory Board of SMS group GmbH is aware that the management of SMS group GmbH currently consists of one woman and four male members (share of women: 20%). For the period until the end of its term of office, the Supervisory Board has resolved that this current share of women is set as the target for the management of SMS group GmbH. The management of SMS group GmbH is aware that there is currently one woman at the first reporting level (share of women: 3%) and that there are currently six women at the second reporting level (share of women: 4%). For the period until the end of the term of office of the Supervisory Board of SMS group GmbH, this current share of women is set as the target for the first and second reporting levels of SMS group GmbH.
In business year 2019, SMS group generated pre-tax profit of EUR 64 million, which was well above the previous year’s level (EUR 28 million). Thus, our forecast of a significant improvement in earnings before taxes compared to the previous year was entirely borne out.
Cash and cash equivalents were up by EUR 11 million against the previous year to EUR 695 million (previous year: EUR 684 million).
The advance payments received that are customary in the industry are secured by way of bank guarantees. The share of guarantee and borrowing facilities utilized is approximately 45%.
The volume of investments in intangible assets and property, plant and equipment was EUR 39 million (previous year: EUR 38 million). Investments essentially related to the purchase of replacement equipment for mechanical production and to the expansion or replacement of current IT systems, especially for the introduction of Windows 10.
We invested EUR 23 million in other business interests and investment securities (previous year: EUR 55 million). By way of comparison, proceeds from the disposal of financial assets amounted to EUR 17 million (previous year: EUR 18 million).
BALANCE SHEET in EUR thousand
CONSOLIDATED INCOME STATEMENT in EUR thousand