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Publication Overview Supply Chain Management Publication Overview EBITA CHFm -3.5 7.2 21.9 28.6 50.1 50 40 30 20 10 0 Net income CHFm -3.9 2.2 13.2 22.1 31.2 30 25 20 15 10 5 0 Orders received Earnings per share (after share split August 1997) CHFm 272.3 435.5 420.1 557.8 727.9 CHF -1.4 0.8 4.8 8.0 11.3 700 12 600 10 500 8 400 6 Edited by Swisslog Management AG, Buchs/Aarau 300 4 Supply Chain 200 2 Visual design Erdmann Design AG, Brugg 100 0 Concept and Text Haussmann, Weber-Thedy Corporate & Financial Communications, Zurich Management Net sales Employees at year end Photography Geri Krischker, Baden Lithography/Printing Schwabe & Co. AG, Basel/Muttenz 1999 Annual Report CHFm 255.6 388.4 474.9 551.0 722.5 1121 1323 1709 2063 3507 700 3500 600 3000 The Swisslog 1999 Annual Report comprises 500 2500 400 2000 two parts: the report on activities and the 300 1500 200 1000 financial overview. The annual report is 100 500 1999 Annual Report 1999 published in German and English. The German 95 96 97 98 99 95 96 97 98 99 version is binding. Swisslog Holding AG, Webereiweg 3, CH-5033 Buchs/Aarau, Phone +41 62 837 95 37, Fax +41 62 837 95 10, www.swisslog.com Swisslog Mission 1999 – Highlights Africa Americas Australia Asia South Africa Uruguay Canada Australia China The Supply Chain Excellence Partner January August Trans-Tele (PTY) LTD Corob S.A. Color Engineering Translogic Limited Corob Ltd. Corob Ltd. Swisslog signs software support contracts with Cathay Pacific Swisslog takes over the worldwide light conveyor system Citrus Street Industrial Park C.P. 11600, Cardal 3092 #7-1200 Aerowood Drive Branch office Room 403, 4/F Printing House 6 Swisslog is an international company offering Supply Chain Excellence to its Catering (CPC) and with the Hangzhou Cigarette Factory. activities of Thyssen Krupp Industries GmbH. Honeydew Unit No 4, RDU-Montevideo Mississauga, Ontario AUS-Melbourne Dupple St. Central Hong Kong clients through comprehensive IT-controlled information and material flow February September P.O. Box 1334 Phone +598 2 487 0732 L4W 2S7 Canada Phone +61 3 9331 7897 Shau Kai Wan, Hong Kong solutions. Swisslog’s activities cover the entire spectrum of Supply Chain Exe- Swisslog receives two major orders from BMW/Hams Hall, Swisslog hands over a new distribution system to Allied SA-North Riding 2162 Fax +598 2 487 0736 Phone +1 905 629 2400 Fax +61 3 9331 7930 Phone +852 2 557 8108 cution for today’s economy. The aim is to improve its clients’ productivity Germany, for automated guided vehicle (AGV) systems and Bakeries in the UK. Phone +27 11 7 94 41 36 Fax +1 905 629 2799 Fax +852 2 556 7160 and services and at the same time minimize their logistics costs and tied-up logistics stores. October Fax +27 11 7 94 42 56 capital. March Swisslog in collaboration with Professor Richard Thornton USA Digitron Logistics Pty. Ltd. Swisslog supplies two hospitals in Singapore with a total of develops MagneTrak, a worldwide innovation in the field Corob North America Inc. 30, Cowper Street, Level 1 India Based on their expertise in knowledge management, software and system inte- 33 automated guided vehicle (AGV) systems, 13 rail vehicle of supply chain systems. 13315-G Carowinds Boulevard AUS-Parramatta NSW 2150 Corob India Pvt. Ltd. gration, the Swisslog Industry Practice Groups (IPGs) plan and realize industry- systems and 120 pneumatic tube stations. November Charlotte, NC 28273 USA Phone +61 2 9895 1000 Warden House, 1st Floor specific Supply Chain Solutions for their clients. Proactive support through April Swisslog installs a pneumatic tube system and an Phone +1 704 588 8408 Fax +61 2 9895 1095 Sir P.M. Road, consulting and service optimizes the performance of each individual logistics Swisslog implements a successful e-commerce startup for electric track vehicle system at the Mayo Clinic, Rochester, Fax +1 704 588 8471 Fort Mumbai 400 001 system throughout its operational lifetime. a European large-scale fresh food distributor. Minnesota. Phone +91 22 287 2295 May December Fax +91 22 287 3475 Continuous development of Supply Chain Software, Supply Chain Solutions and Swisslog signs a comprehensive support contract with Swisslog‘s upgrades for the millennium changeover see all Munck Automation Technology, Supply Chain Systems as well as strategic alliances have enabled Swisslog to Woolworths Queensland Properties (QP), Australia, for the Swisslog customers safely into the year 2000. Inc. Malaysia provide Internet fulfillment solutions for all types of online businesses. Swisslog complete technical operation of distribution centres 161 Enterprise Drive Digitron Logistic Systems is well positioned to explore the new market opportunities and demands arising QP 1 & 2 set up by Swisslog, the only ones of their type in Newport News, VI 23603 USA Sdn. Bhd. from emerging e-business. the world. Phone +1 757 887 80 80 54-3, 2nd Floor, Jalan USJ 9/5P June Fax +1 757 887 55 88 MAL-47620 UEP Subang Jaya, Headquartered in Buchs/Aarau, Switzerland, Swisslog currently employs 3,507 Swisslog develops comprehensive Internet fulfillment solu- Selangor people in 22 countries. The parent company, Swisslog Holding AG, is listed tions for booming online businesses. Phone +60 3 724 4 790 on the Swiss Exchange SWX. Swisslog initiates the Management Potential Program (MPP). Swisslog America Inc. Fax +60 3 724 5 790 July 9 East Loockerman Street Swisslog supplies an extensive transport system linking City of Dover, Transnorm System Sdn. Bhd. numerous medical supply centers for the Mayo Clinic in Delaware 19901 USA Lot Plo 28 Kawasan Perindustrian Rochester, Minnesota. Phone +1 303 371 7770 Kluang, 4 1/2 Miles Jalan Mersing Fax +1 303 373 7870 MAL-86000 Kluang/Johore Phone +60 7787 9990 Fax +60 7787 9966 Translogic Corp. 10825 East 47th Avenue Singapore Denver, CO 80239 USA Digitron Logistic Systems Pte. Phone +1 303 371 77 70 Ltd. Fax +1 303 373 78 70 215G Upper Thomson Road Singapore 574349 Phone +65 453 0192 Transnorm System Inc. Fax +65 453 6018 1906 South Great Southwest Parkway Grand Prairie, TX 75051 USA Telelift Automation Pte. Ltd. Phone +1 972 606 0303 15 Little Road # 05-01 Fax +1 972 606 0766 Singapore 526988 Phone +65 280 06 00 Fax +65 286 81 00 2 Letter to Shareholders 26 Best Healthcare Practices 6 Swisslog Offering 30 Corob – Colorful Supply Chain Revolution 8 Internet Fulfillment Solutions – Powered by Swisslog 34 MagneTrak 14 Supply Chain Consulting 38 24-7 – There when needed 18 Swisslog Creates Intellectual 44 Investor Relations Capital 48 Organization 22 Allied Bakeries – Bread for Britain 50 Addresses Fazer – A Plenitude of Bread Contents and Pastries Dear Shareholder The year 1999 was marked with continued growth and suc- cess for Swisslog. Enhancing its position as a leading provider of supply chain solutions, Swisslog showed excellent performance in all business segments and in its target mar- kets of North America and Europe. As in previous years, Swisslog recorded significant growth rates in both sales and earnings. Orders received rose by 30.5% over the previous year to CHF 727.9 million and net sales increased by 31.1% to CHF 722.5 million. Earnings before interest, taxes and goodwill amortization (EBITA) reached CHF 50.1 million, up 75.2% over 1998. Net income grew 41.2% to CHF 31.2 mil- lion. The Swisslog Software division was transformed into an important profit contributor with the highest growth of all business segments. Through its existing core competence complemented by selected alliances and acquisitions, Swisslog is strategically well positioned to provide fully inte- grated Internet fulfillment solutions. 2…3 Fast Growth and Improved Profitability Swisslog grew steadily in 1999, continuing the trend of previous years. It has thus strongly secured its position as a leading international group specializing in supply chain solutions. Net sales totaled CHF 722.5 million, up 31.1% over the 1998 figure of CHF 551.0 million. Profit generated from operations outpaced the already important increase in net sales. Earnings before interest, taxes and goodwill amortization (EBITA) reached CHF 50.1 million, up 75.2% on the 1998 result. Overall Swisslog achieved a 41.2% increase in net income to CHF 31.2 million and an Earnings Per Share (EPS) before goodwill of CHF 13.7 up 55.7% from CHF 8.8 in 1998. Overall Swisslog experienced internal growth of 4.8%. Results by segment show that major internal growth was generated by Supply Chain Software and Supply Chain Solutions. Supply Chain Software posted significant gains, transforming this segment from a loss-maker to the most profitable. The Supply Chain Systems & Products segment experienced growth of 58.2% in net sales mainly based on acquisitions. Global Leadership Internet Fulfillment Software In 1999, Swisslog continued to develop its global image as an With Europe’s online retail market in 1999 equaling euro international supply chain solutions provider with a unique and 3.5 billion, industry experts currently estimate the development unified corporate design. Aiming to secure future success of this market to euro 9 billion in 2000 and euro 45 billion in through acquisitions and alliances, Swisslog bought the Light 2002. Such growth should be harnessed, but simply getting Conveyor Systems of Thyssen Krupp Industries GmbH in August online is not enough. While providing Internet access is impor- 1999. The acquisition of Thyssen Krupp’s 800 employees and tant, fulfilling customers’ expectations has become an absolute diverse client base in healthcare, banking, libraries, administra- prerequisite for any player looking to secure a leading role in tion and the electronics industry gave a significant boost to online business, be it business-to-consumer (b2c) or business- Swisslog’s sales and customer support.
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