Jenoptik announces new ‘More Value’ agenda to power up its businesses

07 Dec 2021

Firm’s 2022-2025 plan is focused on photonics while intending to “speed up profitable, sustainable growth”.

Diverse photonics and technology company Jenoptik has announced what it is calling a new growth agenda branded “More Value”. Explaining this last week, Stefan Traeger, President & CEO, commented “This agenda will accelerate the company’s transformation into a globally leading, pure photonics player. In the future, we will focus even more than before on attractive core markets.

“We plan to increase revenue to around €1.2 billion, with an EBITDA (pre-tax) margin of some 20 percent, by 2025. This includes further acquisitions as well as one or the other divestment. With this positive development we want to create more value for all our stakeholders,” he said.

Key features of new agenda

• Accelerated transformation into a pure photonics player
• In future, stronger focus on three core markets: semiconductors/ electronics, life science/medical technology, and smart mobility
• Revenue set to rise to around 1.2 billion euros, with an EBITDA margin of approximately 20 percent, by 2025

Focusing on the three high-growth markets – semiconductors/electronics, life science/medical technology, and smart mobility – is the core of the company’s new Agenda 2025 “More Value”. As a result, the Group expects to generate substantial organic revenue growth, which will be supplemented with further acquisitions.

Taking account of possible divestments and acquisitions Jenoptik is expecting average annual revenue growth of around 8 percent through 2025. An improved product mix with a gradual increase in the share of higher-margin products will help to achieve a further profitability boost.

In recent years, Jenoptik has already aligned its product portfolio with the core photonics markets. This is underlined by the acquisitions of Trioptics, BG Medical, and SwissOptic, as well as the divestments of non-core activities. The recent sale of Vincorion is accelerating the company’s transformation into a globally leading, pure photonics group.

“As part of the More Value Agenda 2025, we will continue to strengthen our financial resources over the coming years. We see ourselves as well positioned to achieve our scheduled profitable growth, which also includes potential acquisitions. Beyond this, we will also increase our focus on the return on capital employed,” said Hans-Dieter Schumacher, Chief Financial Officer.

Within the framework of the new organizational set-up, Jenoptik will combine its core photonic business in the two new divisions, Advanced Photonics Solutions and Smart Mobility Solutions. Business activities that are focused on the automotive industry will be managed as independent brands – Hommel, Prodomax, Interob – within the Jenoptik Group in the future.

Acquisitions of BG Medical and SwissOptic completed

Jenoptik also announced the successfully concluded the acquisition of the following companies as announced in October:

• BG Medical Applications, a supplier of high-precision, custom optical components for the medical technology sector based in Berlin, Germany;
• SwissOptic, a specialist in the development and manufacture of optical components and assemblies, primarily for the medical technology, semiconductor, and metrology industries, with headquarters located in Heerbrugg, Switzerland;
• Chinese company SwissOptic (Wuhan), based in Wuhan, China;

The Bundeskartellamt (German Federal Cartel Office) has approved the transactions. The purchase price amounts to around €300 million. This strategic acquisition enables Jenoptik to strengthen its global and strongly growing photonics business, and considerably expand the highly attractive medical technology business in addition to the strong semiconductor equipment business.

The acquisition is also extending Jenoptik’s global production network, including state-of-the-art clean-room capabilities. Production facilities are located at two leading photonics centers in Europe (Berlin & Heerbrugg) as well as in China (Wuhan).

With the acquisition, Jenoptik intends to accelerate its sustainable course for growth. The companies acquired will belong to the Light & Optics division. For the 2022 fiscal year, the acquisition is expected to make a contribution to revenue worth approximately 130 million euros. In the next few years, revenue to be generated by the companies acquired should grow in a low two-digit percentage range and present an attractive margin.

The three companies will become fully consolidated from December 1st, 2021, onwards. The employee count of Jenoptik Group is rising to about 4,900. The purchase price will be paid for using existing funds and free credit lines. Detailed information on the effects the acquisition has on the group’s financial, asset and earnings positions will be provided by Jenoptik as part of its reporting on the 2021 fiscal year in March 2022.