Dierikon, 28 September 2023

Media release
Ad hoc announcement pursuant to Art. 53 LR

The Komax Group has revised its Strategy 2028 and set itself ambitious targets. It aims to continue its strong and profitable growth and to generate revenues of CHF 1.0 to 1.2 billion and an operating profit (EBIT) of CHF 120 to 160 million in 2028. This corresponds to average annual growth in revenues of 6 to 9%. Environmental, Social, Governance (ESG) is an integral component of the new strategy, and the Komax Group has accordingly also set itself various non-financial targets.

Following the combination with the Schleuniger Group at the end of August 2022, the Komax Group carried out a detailed analysis of the new situation and made changes to the existing strategy for the period 2024 to 2028. The Komax Group has considerable growth potential as wire processing is currently no more than 20% automated. “Automation is a real El Dorado,” says Matijas Meyer, CEO Komax Group, of the current situation. “Through the combination, we have established a market position from which we will be able to make best use of the opportunities that arise in the coming five years and beyond.” 

Numerous growth drivers
The Komax Group is operating in a growth market, as customers are increasingly investing in automation solutions due to rising wage costs, a lack of employee availability, the miniaturization of wires, and the traceability required for quality assurance reasons. In addition, the automotive industry, which accounts for around 75% of the Komax Group's revenues, is undergoing radical change. Topics such as e-mobility, autonomous driving, the change in wire harness design (zonal architecture), and the 1 to 3% annual increase in the number of vehicles manufactured according to S&P Global are growth drivers for the Komax Group. The degree of automation is low in Aerospace & Railway and Industrial & Infrastructure, the two other adjusted market segments addressed by the Komax Group. The Komax Group will continue to pursue the fourth market segment to date, Data/telecom, as part of the Industrial & Infrastructure market segment.

Key strategic priorities
To achieve the 2028 targets, the Komax Group needs to grow faster than the market. To this end, the Board of Directors has approved four key strategic priorities for market development:

• Create value along customer journey
  The focus of activities is on expanding the service business, which previously largely comprised the spare parts business.
• Innovate for automation and quality
  The focus is on solutions that considerably increase automation, as well as quality assurance solutions throughout the customer’s entire value chain. The Komax Group will continue to invest 8 to 9% of its revenues in research and development.
• Strengthen global customer proximity
  The Komax Group has generated around 20% of its revenues in Asia in recent years. Given the size of the Asian market, this percentage is far too low and should change in the coming years.
• Develop non-automotive markets
  There is considerable automation potential in both the Aerospace & Railway and Industrial & Infrastructure market segments, which should be even better exploited in the future.

In addition, the Board of Directors has defined three initiatives to support implementation of the key strategic priorities:

• Scale Komax and Schleuniger
  The focus is on targeted exploitation of the respective strengths of Komax and Schleuniger to make the best possible use of the potential arising from the combination. This includes further optimization and streamlining of the distribution and service network and the product portfolio.
• Lean and excellent, digital transformation
  Optimization of processes and supply chains as well as internal and external digitalization are key factors in safeguarding high profitability and financing growth.
• Environmental, Social, Governance (ESG)
  Environmentally sustainable business practices along with socially oriented and responsible corporate governance form a framework for and the basis of the Komax Group’s strategy. This should become even more tangible and visible in the future with the implementation of the newly developed ESG strategy and the fulfillment of various non-financial targets. Find out more in the ESG Short Report (www.komaxgroup.com/en/invest-in-komax/publications), in which the Komax Group also publishes CO₂ data for the first time.

Beat Kälin, Chairman of the Board of Directors, is confident that “the Komax Group has the necessary market knowledge, specialist expertise, and resources to successfully implement the defined key strategic priorities. The Board of Directors firmly believes that it has charted the right strategic course for the Komax Group to ensure continued success and the ability to build on its market and technology leadership in the future.”

Contact
Roger Müller
Vice President Investor Relations / Corporate Communications
Phone +41 41 455 06 16
roger.mueller@komaxgroup.com
 

Komax is a globally active technology company that focuses on markets in the automation sector. As a leading manufacturer of innovative and high-quality solutions for the wire processing industry, the Komax Group helps its customers implement economical and safe manufacturing processes, especially in the automotive supply sector. The Komax Group employs about 3400 employees worldwide and provides sales and service support via subsidiaries and independent agents in more than 60 countries.

Komax Stories
Topics and insights from the world of automated wire processing: https://www.komaxgroup.com/en/stories

Komax Holding AG, Industriestrasse 6, 6036 Dierikon, Switzerland
Phone +41 41 455 04 55, komaxgroup.com