On track for growth with high-tech solutions following successful transformation
Bystronic is carrying on Conzzeta’s legacy. With the divestment of the FoamPartner and Mammut business units and the renaming of the Group, the transformation was successfully completed in the first half of 2021. Bystronic AG shares have been trading on SIX Swiss Exchange since the beginning of May. The new organizational structure puts us in an optimal position to achieve the ambitious growth targets of the Strategy 2025.
In the first half of 2021, Bystronic established itself on the capital market as an independent company. The Conzzeta subsidiaries FoamPartner and Mammut were successfully divested. At the Annual General Meeting on April 21, the decision to rename Conzzeta AG to Bystronic AG was taken. Since May 3, Bystronic shares have been listed on SIX Swiss Exchange under the ticker symbol BYS.
Within the framework of the transformation, Bystronic adapted its organizational structure in order to successfully implement its Strategy 2025. The changes that were initiated last year in order to pool resources and increase productivity have been completed successfully. We have standardized our processes, established a global structure and hired outstanding staff to fill the respective key management positions.
Ambitious growth strategy
35 years after its founding, Bystronic’s innovative drive remains steadfast. Today, we generate almost half of our sales with products that have been on the market for less than three years. We launched innovative automation solutions and are already supplying our customers with high-tech solutions for the networked shop floor of the future, the smart factory. To consolidate our competitive edge in the field of software, we are expanding our digital expertise. In March 2021, we acquired the software specialist Kurago. With an eye to new target groups, we are also expanding our portfolio in the silver and bronze segments for laser cutting, bending and automation.
Within the framework of our Strategy 2025, we intend to further strengthen our position in the regional markets and focus even more strongly on the requirements of the individual markets. In addition to initial trade show initiatives in China, Korea and Russia, we also opened our Customer Experience Center at Bystronic’s US headquarters with great success. This places us in closer proximity to our customers and enables us to offer them better support. In order to further strengthen our service business, we are continuously recruiting new service technicians.
The pandemic seized as an opportunity
We were able to retain all employees during the Covid-19 crisis. In spite of lockdowns and travel restrictions, our dedicated teams actively supported our customers throughout the pandemic. We were quick to utilize new channels: virtual trainings, live demos and virtual Technology Days. We are continuously expanding these channels.
These new lines of communication also opened up new sales opportunities. Our customers accelerated their drive towards automation, and interest in high-tech solutions supporting the smart factory increased. In addition, there has been an increase in maintenance and upgrades over recent months, which has driven strong growth in our service business: the majority of our customers orders Bystronic machines in conjunction with maintenance contracts. We intend to keep up this positive trend: by 2025, service as a business will become our second mainstay alongside the sale of machines, automation and software.
Focus on sustainability
Bystronic has integrated ecological and social criteria as well as responsible corporate management principles into its strategy process and resolutely implements initiatives. Consequently, the Strategy 2025 attaches great importance to ESG (environmental, social, governance) issues.
We have initiated a wide range of measures to accelerate our ESG performance: we appointed an ESG Officer and defined a sustainability roadmap which has already been approved by the Board of Directors. As of this year, we are also surveying the carbon footprint of all our business locations and will define KPIs and targets for all significant sustainability topics. We will publish our first Sustainability Report for the 2021 financial year.
Bright prospects, high expectations
Thanks to this broad-based range of activities, Bystronic is well prepared for the future. Our portfolio that is focused on end-to-end solutions puts us at the forefront of innovation in our industry. Our regionally embedded organizational structure and our focus on the service business are strengthening our position in the individual markets. And we have the right partners to continuously expand our expertise in relation to the smart factory.
This sound foundation will enable us to further expand our market share. Assuming that the positive business development witnessed in the first half of 2021 extends into the second half of the year, the situation on the procurement markets does not accentuate and inflation remains stable, Bystronic expects sales growth for its continuing operations of around 15% in the 2021 financial year, with an EBIT margin of 8 to 9%.
We would like to thank our employees for their tireless efforts, without which the successful transformation into a modern, agile and sustainable company would not have been possible.
Chairman of the Board of Directors
CEO Bystronic Group