Editorial

Customer focus intensified in challenging market environment

2024 was a challenging year for Bystronic. Economic weakness and geopolitical uncertainty significantly impacted all markets. As a result, we recorded lower order intake and reduced customer activity in all regions, which was significant in some cases. As a result, a loss of CHF 84 million was recorded at the operating result (EBIT) level in the reporting year, including one-time restructuring costs of CHF 37 million.

In the second half of the fiscal year, we initiated a restructuring and realignment to intensify our focus on our customers: The Executive Board was reduced in size; group functions were consolidated, and our global operations were restructured. With this, we addressed the changing market dynamics and are ensuring future profitability over the economic cycles.

We advanced the customer-centricity by bundling our know-how and expertise into two newly formed divisions: Systems and Service. These allow us to better serve our customers and strengthen our position as a full solutions provider over the long term.

Well positioned as full solutions provider

The trends of increased automation and digitalization continued to gain momentum in 2024. We benefited from this because, in addition to selling systems, we support our customers with automation, software and service solutions. We are consistently advancing our journey from a single machine manufacturer to a full solutions provider.

In 2024, we again proved ourselves as an innovation leader in systems and software related to sheet metal processing. We are proud to have received the Swiss Technology Award for our Intelligent Cutting Process (ICP). This innovative solution optimizes the cutting process with the help of sensors and artificial intelligence. We also launched several new products to the market, including a new modular bending cell. We showcased all the new products at exhibitions in Europe (EuroBLECH) and America (FABTECH), and at numerous customer events in our Experience Centers. We also inaugurated highly automated and networked Smart Factories for several customers worldwide.

Reduced demand in all regions

Globally, economic growth in 2024 was limited. In EMEA, customers remained cautious due to economic weakness and uncertainty in key Eurozone markets, which led to delays in numerous project orders. In America, the uncertainty surrounding the presidential election slowed activity through year-end. High interest rate levels and restrained consumption in many markets reinforced the customersʼ cautious investment behavior. In China, we were confronted with economic weakness due to geopolitical tensions, leading to overcapacity and low economic growth.

Sales in 2024 were CHF 648 million, lower than the previous year. Order intake also declined in all regions. Globally, we recorded a decrease of 21% (–19% at constant exchange rates) to CHF 625 million.

New executive management team

Domenico Iacovelli assumed the role of CEO in July 2024. He visited all of Bystronicʼs production sites globally and is leading the repositioning of the company. He is doing all he can to make Bystronic more resilient, strengthen the brand, regain market share and position the company for profitable growth. Under Domenicoʼs leadership, the number of members of Bystronicʼs Executive Board was reduced to four and a new divisional structure created.

Commitment to sustainability

Sustainability is embedded in all areas of our company – in our strategy, our culture and our solutions. We are using the great leverage of our products: we are improving our performance and also helping to improve the sustainability of our customers through our solutions. Our Sustainability Report 2023 documents our progress in reducing energy consumption, waste generation and carbon emissions in line with our Science-Based-Target Initiative (SBTi).

Dividends

The Board of Directors will propose to the Annual General Meeting on April 22, 2025, a dividend of CHF 4.00 per class A registered share and CHF 0.80 per class B registered share. In total, CHF 8 million will be distributed to shareholders. The proposal reflects the companyʼs performance in the reporting year and is in accordance with the dividend policy.

Outlook

2025 will be a transition year for Bystronic. The market environment will remain challenging. We expect order intake in the first half of the year to approximate the levels of the last few quarters, and to regain market share from the third quarter onwards. For the full year 2025, we anticipate a slight decline in sales and another loss. Over the economic cycles, Bystronic expects to achieve an average EBIT margin of 5 to 7%.

Great engagement despite challenges

We greatly appreciate the extraordinary commitment of our employees and offer our sincere thanks. Their passion for our technology and our customers is unlimited and we are confident that we will lead Bystronic into a successful future. We also want to thank our business partners and our shareholders for their trust and support in this challenging time.

Zurich, February 27, 2025

Dr. Heinz O. Baumgartner

Chairman of the Board of Directors

Domenico Iacovelli

CEO