2.1 Healthcare Solutions
Datwyler is a leading supplier of system-critical elastomer components for injectable drug delivery systems. These components are used in billions of prefilled syringes, glass vials and cartridges worldwide, improving patients' lives. With a worldwide network of highly automated production facilities, Datwyler is able to supply locally manufactured components to global pharmaceutical companies in the key economic regions. The market for healthcare components is low cyclical and is characterised by high entry barriers and structural growth trends such as the aging society in industrialised countries or the increase in living standards in emerging markets.
improve patients' lives
Products and services
High-quality rubber components for prefilled syringes, pens and injection systems
Components and closures for injectable drugs in vials
Rubber components for blood collection systems, IV administration sets, disposable syringes, etc.
Rubber components for diagnostics and medical devices
Target groups
Pharmaceutical and biotech companies
Manufacturers and contract fillers of injectable drugs
Manufacturers of diagnostic and medical products
Manufacturers of parenteral drug delivery systems
Geographical markets
Europe
North and South America
Asia
Australia
Further information
Revenue and earnings
Healthcare Solutions reports significantgrowth in revenue and margins
currency-adjusted
As a partner to the leading vaccine manufacturers, the Healthcare Solutions business area experienced additional demand for components for COVID-19 vaccines in the year under review.
In comparison with 2020, revenue was up by 16.0% in currency-adjusted terms to CHF 466.8 million (previous year: CHF 403.4 million). The currency effect was negligible.
Thanks to the good utilization of capacities and a positive change in the product mix, Datwyler increased the operating result (EBIT) by 32.1% to CHF 104.6 million (previous year: CHF 79.2 million). This equates to a significantly higher EBIT margin of 22.4% (previous year: 19.6%).
Important developments in 2021
Datwyler generated strong organic growth in its core business for system-critical components for injectable medicines.
The increasing share of high-margin, high-quality components from FirstLine manufacturing had a positive effect on the product mix.
To cope with the increased demand, Datwyler invested in the earlier expansion of production capacities at all locations. The new capacities can be used for all product categories.
As a founding member of the Alliance to Zero, Datwyler campaigns for healthcare products with net-zero CO2; emissions. The Alliance to Zero consists of eight companies that cover a large proportion of the value chain.
Current priorities
As a result of the bottlenecks caused by the pandemic, Datwyler has come into contact with many new potential customers. The company aims to further tap into these potential revenue sources with targeted measures.
After the planned completion of the acquisition of Yantai Xinhui Packing in the first quarter of 2022, the focus is on integrating the Chinese firm. The modern production facility with reserve capacity offers a perfect platform for local manufacturing of the Datwyler product range (excluding FirstLine) for the Chinese healthcare market.
The company is continually expanding its product portfolio through new NeoFlex products and needle shield designs and new developments for coating components.
Thanks to an optimized organization, Datwyler will be able to serve its existing customers even more effectively in the future and drive the acquisition of new customers.
Outlook
Alongside the US and EMEA, the market development activities are currently focusing on China and other emerging countries with high growth rates for modern injectable medicines.
For 2022, Datwyler continues to expect strong demand in the healthcare market. Structural trends will also support this growth in the medium term.
With the new production capacities in the US, India and now also in China, Datwyler is well-positioned to participate in market growth over-proportionately.
In order to meet customer expectations, Datwyler also intends to invest in the expansion and automation of production capacities in 2022. Production will get under way in the second plant at the existing Indian site in mid-2022.
The scarcity and rise in the prices of raw materials, energy and logistics services require additional attention.
Key figures
Healthcare Solutions
| 2021 | 2020 | Change | |
|---|---|---|---|
Net revenue (CHF millions) |
466.8 |
403.4 |
+15.7 % |
| Operating result (EBIT) (CHF millions) | 104.6 |
79.2 |
+32.1 % |
| as % of net revenue (EBIT margin) | 22.4 % |
19.6 % |
n/a |
ROCE1 |
26.4 % |
23.7 % |
n/a |
Average capital employed1 (CHF millions) |
396.1 | 334.2 | +18.5 % |
Capital expenditures1 (CHF millions) |
69.3 | 54.4 | +27.4 % |
Full-time equivalents at 31 December |
2'480 |
2'228 |
+11.3 % |
The definition of alternative performance measures and adjustments, not defined by Swiss GAAP, are provided in the document Alternative Performance Measures.
2.2 Industrial Solutions
Datwyler is a leading supplier of system-critical elastomer components to the attractive global Mobility, General Industry and Food & Beverage markets. For instance, customer-specific components make an important contribution to driver and passenger safety in more than every second car worldwide. Leading core competencies in solution design, material expertise and operational excellence as well as a worldwide presence with its own production sites form the successfull basis for this. As a recognised development partner, Datwyler maintains close, long-standing relationships with global innovation leaders and has in-depth knowledge of business models, technologies and development trends in the markets it serves.
innovation leaders
Products and services
System-critical components for brake systems, fuel and engine management, exhaust gas aftertreatment (Selective Catalytic Reduction), active assistance and safety systems, electromobility of the future
Sealing components for upstream systems in the oil and gas industry, aerospace and heavy machinery, power tools, process and water treatment industries
Sealing solutions for portioned food and beverages
Target groups
Automotive system suppliers
Oil and gas service companies
Aerospace and heavy machinery
Manufacturers of power tools
Process and water treatment industries
Manufacturers of portioned food products
Geographical markets
Europe
North and South America
Asia
Further information
Revenue and earnings
Strong growth inIndustrial Solutions
currency-adjusted
In comparison with pandemic-hit 2020, the Industrial Solutions business area was able to increase revenue for continuing operations (excluding Civil Engineering) by over 13% to CHF 488.4 million in currency-adjusted terms (previous year: CHF 427.5 million) in the year under review. The currency effect was negligible.
Thanks to the higher utilization of capacity and consistent cost management, the operating result (EBIT) rose by 10.7% to CHF 55.8 million (previous year: CHF 50.4 million). This equates to a slightly lower EBIT margin of 11.4% (previous year: 11.8%). The slowdown in the automobile industry in the second half of the year prevented an improvement in the margin.
Important developments in 2021
To streamline its organization and increase agility and speed in the market, Datwyler reduced the management levels in the Industrial Solutions business area. The integration of the former Oil & Gas business unit into the General Industry business unit makes it possible to exploit further synergies.
Despite a high prior-year basis, the Food & Beverage business unit recorded strong revenue growth for all customers in this area as planned. The expansion of production capacities went to plan and will be continued in 2022.
The forecasts for global vehicle production were constantly adjusted downwards during the course of the year due to the general shortage of IT components. This led to a significant fall in demand in the Mobility business unit in the second half of the year. Thanks to its proactive market development activities with webinars and a large customer event in China, the Mobility business unit acquired record numbers of new projects and customers and thus exceeded growth in global vehicle production.
With the transfer of the liquid silicone production technology to the sites in Mexico and China, Datwyler established a global production base for complex multi-component parts, which are used in electric vehicles in particular.
The General Industry business unit enjoyed strong demand, particularly in the final quarter of 2021 and from the American market. It was also able to acquire many promising development projects for smart elastomer components.
Current priorities
In the Food & Beverage business unit, the focus is on the further expansion of production capacities on the basis of the global customers’ specific growth plans for portioned coffee. Through the switch to recycled aluminum, Datwyler is supporting its main customer Nespresso on its journey to achieving climate neutrality.
Using its longstanding core competencies as a foundation, the Mobility business unit is further expanding its material and technology portfolio. A key basis for this is provided by electroactive polymers and the electrically and thermally conductive ETEMI materials. In this way, Datwyler is opening up new applications in the vehicle of the future in parallel to the current brake and exhaust gas treatment business. The focus is on electrified powertrain, battery systems, vehicle interiors and fuel cells.
The new center of competence for surface technology at the Swiss site will begin operations in the first half of 2022. By launching this center, Datwyler is significantly expanding its expertise in the development and production of multi-material components.
To promote growth, Datwyler is placing additional emphasis on the sales and engineering resources in the General Industry business unit in the three key global regions of Europe, the US and Asia.
Outlook
The ongoing shortage of electronic components in the automobile industry will continue to dominate revenue performance in the Mobility business unit in 2022. We expect revenues to remain generally flat in the first two quarters before undergoing a stronger recovery in the second half of 2022.
However, due to the high order backlog in the Food & Beverage business unit and the very high number of new projects in the Mobility and General Industry business units, we are confident that we will achieve our medium-term growth target.
Economies of scale and the continuous improvement in production processes offer potential for further margin increases in the medium term.
Key figures
Industrial Solutions
20212 |
20202 |
Change | |
|---|---|---|---|
Net revenue (CHF millions) |
488.4 |
427.5 |
+14.2 % |
Operating result (EBIT)) (CHF millions) |
55.8 |
50.4 |
+10.7 % |
as % of net revenue (EBIT margin) |
11.4 % |
11.8 % |
n/a |
ROCE1 |
17.8 % |
17.1 % |
n/a |
Average capital employed1 (CHF millions) |
313.3 |
294.8 |
+6.3 % |
Capital expenditures1 (CHF millions) |
40.5 |
33.7 |
+20.2 % |
Full-time equivalents at 31 December |
4'200 |
4'015 |
+4.6 % |
The definition of alternative performance measures and adjustments, not defined by Swiss GAAP, are provided in the document Alternative Performance Measures.
Continuing operations