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MarketScreener Homepage  >  Equities  >  Swiss Exchange  >  Dottikon Es Holding AG    DESN   CH0582581713

DOTTIKON ES HOLDING AG

(DESN)
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Dottikon Es : Condensed Annual Report 2019/20

05/29/2020 | 01:21am EST

2019/20 Condensed Annual Report Your Specialist for Hazardous Reactions.

3 DOTTIKON ES

Condensed Annual Report 2019/20

Content

Summary/Outlook

5

Group Financial Statements DOTTIKON ES Group

15

Consolidated Income Statements

16

Consolidated Balance Sheets

17

Consolidated Cash Flow Statements

18

Consolidated Statements of Changes in Equity

19

Notes

20

Corporate Governance

27

Investor Relations

37

The Annual Report 2019/20 in English includes only condensed financial information.

The comprehensive Annual Report 2019/20 is available in German.

5 Summary/Outlook DOTTIKON ES Group

Condensed Annual Report 2019/20

Dear Shareholder,

Herewith we present to you DOTTIKON ES Group's Condensed Annual Report 2019/20 for the period from April 1, 2019, to March 31, 2020. The fourth quarter of the business year fell into the period of the COVID-19 pandemic, which was initially limited to China but soon spread around the globe. The conscientious commitment of our employees and the employees of our suppliers on site, in compliance with the applicable hygiene and behavior rules, secured the production and timely delivery of vital APIs for life-saving medication even during the pan­ demic. This year's Annual Report is therefore dedicated to all these employees and shows perspectives from various vantage points taken on our site in Dottikon (Aargau, Switzerland).

Review

At CHF 174.8 million, net sales in the business year 2019/20 were 18.3 percent higher than in the previous year and were broad-based in terms of products and customers. The production output for the full business year - net sales plus inventory changes in semi-finished and finished goods - increased by 15.7 percent compared to the previous year. The CHF 10.2 million increase in semi-finished and finished goods reflects the high order volume for the ongoing business year 2020/21. Capitalized own production and hence other operating income increased due to significant investments in new production capacities. Material expenses stood at CHF 44.8 mil- lion, representing 24.2 percent of the production output, and were slightly below the previous- year figure in relative terms. Personnel expenses rose by CHF 3.6 million or 5.4 percent to CHF 69.9 million. The increase was in equal proportion due to the 2.4 percent staff buildup and to

6 Summary/Outlook DOTTIKON ES Group

Condensed Annual Report 2019/20

7 Summary/Outlook DOTTIKON ES Group

Condensed Annual Report 2019/20

higher wages. In combination with higher other operating expenses, earnings before interest, taxes, depreciation, and amortization (EBITDA) were CHF 55.4 million, up 39.0 percent compared to the previous year, while the EBITDA margin was 31.7 percent (previous year: 27.0 per- cent). Due to an impairment charge in the previous year, depreciation and amortization at CHF

18.9 million was CHF 0.8 million lower compared to the previous year despite commissioning the new lab building for research and development as well as quality management and additional­ chemical production capacities. Earnings before interest and taxes (EBIT) stood at CHF 36.5 million, 80.9 percent higher than in the previous year, and the EBIT margin was 20.9 percent (previous year: 13.6 percent). The financial result was CHF 2.1 million higher than in the previ- ous year, mainly due to the valuation of the employer contribution reserve related to higher pen- sion fund investment returns. With the Federal Act on Tax Reform and AHV Financing coming into effect, and due to the application of the additional tax deduction for research and develop- ment expenses contained therein, income taxes were CHF 4.8 million owing to the high share

KEY FIGURES, APRIL-MARCH

CHF million

2018/19

2019/20

Changes

Net sales

147.7

174.8

18.3%

EBITDA

39.9

55.4

39.0%

EBITDA margin (in % of net sales)

27.0%

31.7%

EBIT

20.2

36.5

80.9%

EBIT margin (in % of net sales)

13.6%

20.9%

Net income

16.3

33.2

104.0%

Net income margin (in % of net sales)

11.0%

19.0%

Cash flow from operating activities

38.2

43.7

14.5%

of research and development activities. This translates into a tax rate of around 13 percent (pre- vious year: around 17 percent). Net income stood at CHF 33.2 million (previous year: CHF 16.3 million), and the net income margin was 19.0 percent (previous year: 11.0 percent).

The cash flow from operating activities stood at CHF 43.7 million, up 14.5 percent compared to the previous year. Cash outflows from investments were CHF 44.4 million, 9.1 percent lower than in the previous year. Cash and cash equivalents decreased slightly to CHF 42.8 million (pre- vious year: CHF 43.8 million). The equity ratio is a strong 82.1 percent.

Assessment of situation

The United States, China, and Russia continue to establish and lead a tripolar world order. The COVID-19 pandemic has unmasked the vulnerability and interdependence of these opponents. Europe is crumbling, which will spark nationalism and secession efforts after the pandemic. This fuels the potential for economic, fiscal, as well as military conflicts.

The major strategies to combat SARS-CoV-2 have created a generational conflict paradox: The older generation is protected at the expense of the younger generation's future, who in turn today live off the wealth created by the older generation. The desperate attempt to return from the mitigation to the containment phase with lockdown measures will result in a major delay in establishing herd immunity and generate considerable economic damage. With this strategy, global economic mobility can only be regained with the wide availability of a vaccine, provided that the protective measures implemented by the individual nations are lifted by then.

Because of the lockdown measures in response to the pandemic, the global economy has experienced an abrupt collapse and has been in steep decline since February 2020. For the first time

Employees (FTE, annual average)

592

606

2.4%

8 Summary/Outlook DOTTIKON ES Group

Condensed Annual Report 2019/20

9 Summary/Outlook DOTTIKON ES Group

Condensed Annual Report 2019/20

since the Great Depression of the 1930s, industrialized, emerging, and developing economies will simultaneously slide into recession. Existing global debt has risen further from its previous record high, and the increasingly expansive monetary policies implemented to soften the blow from the adverse impact of the lockdown measures further aggravate this situation and are set to burden the global economic development in the long term. The COVID-19 crisis has bluntly revealed the risks and interdependencies within the global value chains created by a long phase characterized by global economies of scale and the outsourcing of key value chain segments. Values such as consistency, reliability, and trust, as well as cultural and regional proximity become increasingly important amid the crisis and establish the foundation of trust for future economic as well as political relations. If this development results in more broadly based regional supply chains, the costs for goods will inevitably rise. In combination with the decisively expansive monetary policies, this could result in inflation. Such a scenario would force central banks to deviate from their low interest rate policies, which would bring about potentially disastrous increases in interest rates for heavily indebted countries, companies, and individuals.

Demographic developments, accelerated market approvals for generics, biosimilars, and novel drugs, government attempts to reduce drug prices, as well as a steep rise in drug demand in China remain key medium- and long-term volume growth and innovation drivers in the pharmaceutical market. The demographic trends ensure further long-term volume growth. Global life expectancy continues to rise, even if it is at lower rates than in the previous years in industrialized countries. In the short term, there will be a COVID-19 effect related to the clearly higher mortality rate among over-65-year-olds. In the most important drug sales nations, the 65+ age group represents between 11 (China) and 28 percent (Japan) of the population. If over a

long period, neither a vaccine nor new drug treatments to drastically reduce the SARS-CoV-2 infection or COVID-19 mortality rates are available, global annual drug sales could plummet by around CHF 50 billion. In addition, the development of drug candidates unrelated to COVID-19 will be adversely affected when hospitals are overwhelmed. Once the crisis is over, cost pressure in the health care system is likely to diminish given an increase in health awareness, despite the fact that governments will need to cut their budgets in light of higher government debt.

Despite this development, global drug spending will surpass the CHF 1'000 billion mark in the years ahead. In developed markets, the strong increase in spending on novel specialty drugs is offset by lower prices for the most important drugs on the back of a loss of exclusivity. In con- trast, in pharmerging markets, the increase in access to the health care system seen over the last decade and the respective volume and spending growth are slowing down. On the one hand, the increase in global drug spending is due to a wider use of primarily generic diabetes, respiratory tract, cardiovascular, and oncology drugs. On the other hand, it is attributable to new specialty drugs and innovative products, which currently make up 36 percent of global drug spending and, with annual growth rates of 5 to 8 percent, continue to inch closer to a sales share of 40 percent. The respective sales growth is most significant in developed pharma markets, which represent over 60 percent of global drug sales. In these markets, their share is already 44 percent, with an expected increase to 52 percent over the coming five years. Just as before, strong profitable growth over the coming five years will therefore be fueled by specialty drug sales in developed markets. In 2019, the FDA approved 48 new drugs, 38 of which were small molecules and a further 10 were biologics. The share of biologics among drug candidates that await their approval has increased further in 2019, reaching 40 percent despite higher develop-

10 Summary/Outlook DOTTIKON ES Group

Condensed Annual Report 2019/20

11 Summary/Outlook DOTTIKON ES Group

Condensed Annual Report 2019/20

ment costs as well as far more demanding requirements in terms of quality and supply chain management. Even so, small molecules are set to defend their global drug sales market share of a little over two thirds over the next five years, with half of this share attributable to patent- protected or branded generic small molecule drugs, while biologics only account for 20 percent­. The market for so-called Custom Development and Manufacturing Organizations (CDMOs) is set to grow by 7 percent over the coming five years on the back of the underlying pharma volume market growth and the growing outsourcing trend. The main drivers are, on the one hand, large pharmaceutical companies which have previously only outsourced 20 percent of newly approved drugs and now increasingly opt for in-house manufacturing of biologics while instead outsourcing small molecule manufacturing; and on the other hand, small and medium-sized biotechs which outsource roughly 80 percent and now increasingly gain market shares among newly approved drugs.

Given that biologics, biosimilars, cell and genetic therapy, as well as drug product manufacturing and sterile filling promised higher relative growth and margins compared to small molecule API manufacturing, CDMOs have invested heavily in these areas by means of acquisitions as well as buildup and expansion efforts. In addition to debottlenecking and expansion investments in existing production plants, however, there was hardly any buildup of new small molecule API production capacity. The trend to repatriate drug substance and drug product manufacturing to the West, driven by concerns regarding quality and reliability, is still ongoing and gains further traction on the back of China's strict enforcement of environmental requirements, its reduction in the number of chemical parks and a further intensification of the trade dispute between the United States and China. It is safe to assume that the COVID-19 crisis will have a

similar effect. As a result, shortages in high-quality and technologically versatile process development and API manufacturing capacities are inevitable.

Outlook

In the current market and pharmaceutical environment and with the continuously expanded chemical process development as well as the analytical and API manufacturing capacities at its Dottikon site in Switzerland, DOTTIKON ES is well positioned to capture the imminent small molecule growth potential in the short term, and secure it with ongoing expansion investments in the medium term, as well as with the construction of new production plants in the long term. The corporate strategy - strategic partner and specialist for hazardous reactions - is reaffirmed: By using enabling technology, we develop and manufacture high-quality, demanding chemical products safely and efficiently. We cultivate an integrated partnership with our customers. By applying our full development and manufacturing capabilities, we support our customers in the successful execution of their strategy. In doing so, we create more value for our customers than our competitors. We continue to focus on safety, reliability, high flexibility, and speed, and are thus strengthening our position as strategic development and manufacturing partner and performance leader.

The small molecules pharmaceutical market is and remains our main market with ongoing growth potential. The utilization of existing plants is increased with targeted debottlenecking investments to facilitate the capturing of the expected medium-term sales growth. The planning of a new multipurpose API production plant to secure long-term growth has reached a stage that allows for the beginning of construction during the ongoing business year 2020/21. At the same

12 Summary/Outlook DOTTIKON ES Group

Condensed Annual Report 2019/20

time, we have initiated the planning for additional pilot plant and API drying capacities. Against this background, investments will remain high also for the ongoing business year 2020/21. From today's point of view, initial external financing options for 2020 to finance the capacity ­expansion plans are in preparation. In order to ensure long-term growth, our independent Performance Chemicals project team continues to develop new, innovative proprietary products to satisfy currently unmet market needs outside the pharmaceutical market and brings these products closer to market readiness.

For the ongoing full business year 2020/21, we expect net sales above the previous year's figure.

Dottikon, May 14, 2020

Dr. Markus Blocher

Chairman of the Board of Directors

15

Condensed Annual Report 2019/20

Group Financial

Statements

DOTTIKON ES Group

16 Group Financial Statements DOTTIKON ES Group

Condensed Annual Report 2019/20

Consolidated Income Statements

April-March

CHF thousand and % (condensed)

Notes

2018/19

%

2019/20

%

Net sales

147'710

100.0

174'770

100.0

Changes in semi-finished and finished goods

12'153

10'189

Other operating income

5'421

6'385

Material expenses

-39'493

-44'846

Personnel expenses

(2)

-66'267

-69'852

Other operating expenses

(3)

-19'659

-21'238

Operating result before depreciation

and amortization (EBITDA)

39'865

27.0

55'408

31.7

Depreciation and amortization

(8, 9)

-19'706

-18'940

Operating result (EBIT)

20'159

13.6

36'468

20.9

Financial income

800

1'929

Financial expenses

-1'376

-420

Financial result

(4)

-576

1'509

Result from associated companies

21

19

Net income before taxes

19'604

13.3

37'996

21.7

Income taxes

(5)

-3'347

-4'837

Net income

16'257

11.0

33'159

19.0

Basic/diluted earnings per share in CHF

13.00

26.48

Weighted average number of shares

1'250'948

1'252'264

17 Group Financial Statements DOTTIKON ES Group

Condensed Annual Report 2019/20

Consolidated Balance Sheets

CHF thousand and % (condensed)

Notes

31.03.2019

%

31.03.2020

%

Cash and cash equivalents

43'833

42'843

Current financial assets

0

0

Trade receivables

(6)

41'202

35'144

Other receivables

1'541

2'373

Inventories

(7)

67'088

78'656

Prepaid expenses and accrued income

1'198

1'440

Current assets

154'862

33.4

160'456

32.8

Property, plant and equipment

(8)

263'963

283'679

Intangible assets

(9)

729

592

Investments in associated companies

1'253

1'272

Assets from employer contribution reserve

42'284

43'843

Non-current assets

308'229

66.6

329'386

67.2

Assets

463'091

100.0

489'842 100.0

Trade payables

12'751

10'397

Income tax liabilities

1'276

2'622

Other current liabilities

17'588

15'374

Current provisions

(10)

50

48

Accrued expenses and deferred income

26'545

23'226

Current liabilities

58'210

12.6

51'667

10.5

Non-current provisions

(10)

5'420

5'420

Deferred tax liabilities

(5)

31'121

30'805

Non-current liabilities

36'541

7.9

36'225

7.4

Liabilities

94'751

20.5

87'892

17.9

Share capital

127

127

Share premium

61'826

62'158

Retained earnings

310'744

343'746

Own shares

-4'357

-4'081

Shareholders' equity

368'340

79.5

401'950

82.1

Shareholders' equity and liabilities

463'091

100.0

489'842

100.0

18 Group Financial Statements DOTTIKON ES Group

Condensed Annual Report 2019/20

Consolidated Cash Flow Statements

April-March CHF thousand (condensed)

Notes

2018/19

2019/20

Net income

16'257

33'159

Income taxes

(5)

3'347

4'837

Financial result

(4)

576

-1'509

Depreciation of property, plant and equipment

(8)

19'509

18'708

Amortization of intangible assets

(9)

197

232

Result from associated companies

-21

-19

Other non-cash income and expenses

316

1'091

Interest received

(4)

35

5

Interest paid

(4)

-15

-13

Income taxes paid

(5)

-4'569

-3'771

Changes in

Trade receivables

12'727

6'068

Other receivables as well as prepaid expenses and accrued income

-1'066

-1'122

Inventories

(7)

-14'945

-11'568

Trade payables

2'599

-1'560

Other current liabilities as well as accrued expenses

and deferred income

3'244

-834

Provisions

(10)

-15

-2

Cash flow from operating activities

38'176

43'702

Outflows of

Current financial assets

0

0

Property, plant and equipment

(8)

-48'347

-44'245

19 Group Financial Statements DOTTIKON ES Group

Consolidated Statements of Changes in Equity

CHF thousand

AChanges in own shares in the reporting year 2019/20:

(condensed)

disposal of 1'367 shares within the shareholding program for employees

(previous year: disposal of 857 shares within the shareholding program

for employees)

Share capital

Share premium

Changes in fair value of foreign exchange forwards

Condensed Annual Report 2019/20

Other retained earnings

Own sharesA

Shareholders' equity

Intangible assets

(9)

-463

-159

Inflows of

Current financial assets

0

0

Property, plant and equipment

(8)

0

20

Intangible assets

(9)

0

0

Cash flow from investing activities

-48'810

-44'384

Dividends paid

0

0

Purchase of own shares

0

0

Disposal of own shares

0

0

Cash flow from financing activities

0

0

Currency translation effect on cash and cash equivalents

-114

-308

Net change in cash and cash equivalents

-10'748

-990

Cash and cash equivalents at the beginning of the reporting period

54'581

43'833

Balance 01.04.2018

127

61'358

37

294'470

-4'517

351'475

Net income

16'257

16'257

Changes of foreign exchange forwards

-25

-25

Income taxes on items recognized directly in equity

5

5

Dividends paid

0

Changes in own shares

468

160

628

Balance 31.03.2019

127

61'826

17

310'727

-4'357

368'340

Balance 01.04.2019

127

61'826

17

310'727

-4'357

368'340

Net income

33'159

33'159

Changes of foreign exchange forwards

-193

-193

Income taxes on items recognized directly in equity

36

36

Dividends paid

0

Changes in own shares

332

276

608

Cash and cash equivalents at the end of the reporting period

43'833

42'843

Balance 31.03.2020

127

62'158

-140

343'886

-4'081

401'950

20 Notes DOTTIKON ES Group

Condensed Annual Report 2019/20

Notes to the Group Financial Statements of DOTTIKON ES Group (condensed)

21 Notes DOTTIKON ES Group

Condensed Annual Report 2019/20

1  SEGMENT REPORTING

DOTTIKON ES Group manufactures high-quality performance chemicals, intermediates, and exclusive active pharmaceutical­ ingredients (APIs) for the world's leading chemical and pharmaceutical industry. DOTTIKON ES Group is specialized in hazardous reactions and positions itself as strategic development and manufacturing partner and performance leader. DOTTIKON ES Group uses, maintains, and continuously expands its versatile technology and equipment portfolio to design, develop, and optimize chemical processes and techni­ cal manufacturing procedures for the rapid scale-up from kilograms to multi-tons in order to produce and deliver the respective market volumes.

According to Swiss GAAP FER 31 "Complementary Recommendation for Listed Public Companies", the reportable ope­ rating segments are determined using the segment reporting to the top management level for corporate management. DOTTIKON ES Group's top management level is the Board of Directors. In addition to its statutory tasks, the Board of Directors is responsible for the strategic focus and management of the Group. Strategic and important operational decisions of DOTTIKON ES Group are taken by the Board of Directors.

DOTTIKON ES Group builds on one single production site with the strategy of performance leadership as specialist for hazardous reactions. DOTTIKON ES Group mainly executes strongly heterogeneous projects with a focus on the exclusive synthesis of fine chemicals. Therefore, a differentiation in several operating segments is not informative.

The financial reporting to the Board of Directors is prepared in a single segment. DOTTIKON ES Group allocates resources and assesses their performance on entity level.

Therefore, the required information according to Swiss GAAP FER 31.8 "Segment Reporting" is shown in the Group Financial Statements.

2  PERSONNEL EXPENSES

CHF thousand/April-March

2018/19

2019/20

Wages and salaries

56'484

59'453

Employee benefits

4'366

4'540

Social security

4'671

4'904

Other personnel expenses

746

955

Personnel expenses

66'267

69'852

3  OTHER OPERATING EXPENSES

CHF thousand/April-March

2018/19

2019/20

Rent

198

324

Repair and maintenance

9'343

9'707

Insurance, duties, and fees

1'238

1'283

Administration and promotion

2'230

2'409

Loss on disposal of non-current assetsA

321

465

Supplies

4'630

5'025

Various other operating expensesB

1'699

2'025

Other operating expenses

19'659

21'238

  1. Mainly includes replacement of plant and building components with carrying amounts
  2. Mainly includes costs for waste disposal, selling, and food for staff restaurant

4  FINANCIAL RESULT

Financial income includes the following:

CHF thousand/April-March

2018/19

2019/20

Interest incomeA

35

1'564

Income from foreign currency valuation

765

365

Financial income

800

1'929

  1. Reporting year 2019/20: thereof CHF 1'559 thousand due to changes in the value of the employer contribution reserve, mainly from interest bearing

Financial expenses include the following:

CHF thousand/April-March

2018/19

2019/20

Bank charges, interest expensesA

566

13

Expenses from foreign currency valuation

810

407

Financial expenses

1'376

420

  1. Previous year: thereof CHF 551 thousand due to changes in the value of the employer contribution reserve, mainly from interest bearing

Foreign exchange gain recognized in the income statement amounts to CHF 94 thousand during the reporting year 2019/20 (previous year: foreign exchange gain of CHF 187 thousand) and is allocated to the following positions of the income statement ("+" foreign exchange gain; "-" foreign exchange loss)

  • Net sales CHF +39 thousand (previous year: CHF +78 thousand)
  • Material expenses CHF +97 thousand (previous year: CHF +154 thousand)
  • Financial income CHF +365 thousand (previous year: CHF +765 thousand)
  • Financial expenses CHF -407 thousand (previous year: CHF -810 thousand)

5  INCOME TAXES

Income taxes can be analyzed as follows:

CHF thousand/April-March

2018/19

2019/20

Net income before taxes

19'604

37'996

Tax expenses at the applicable tax rate

of 18.6% (previous year: 18.6%)A

3'646

7'067

Additional taxable deductionsB

0

-2'229

Deviations due to different tax rates of

the Group companiesC

-301

-17

Debit (credit) adjustments recognized

for previous periods, net

2

1

Effect of deferred tax rate adjustmentD

0

15

Other effects

0

0

Recognized income tax expenses

3'347

4'837

  1. The applicable tax rate corresponds to the tax rate at the headquarters of DOTTIKON EXCLUSIVE SYNTHESIS AG, which is domiciled in Switzerland and which most significantly affects the Group result in the long term
  2. Reporting year 2019/20: effect of additional taxable deductions of research and development expenses 2019/20 due to changes in the tax law as of January 1, 2020, "tax proposal 17" (TP17)
  3. Deviations mainly result from different allocation of the results of the Group companies
  4. Reporting year 2019/20: higher income tax rate of DOTTIKON ES HOLDING AG at the domicile by abolishing the holding privilege due to changes in the tax law as of January 1, 2020, "tax proposal 17" (TP17)

CHF thousand/April-March

2018/19

2019/20

Attributable to the following positions:

Current income tax

3'883

5'117

Deferred income tax

-536

-280

Recognized income tax expenses

3'347

4'837

Deferred tax liabilities are attributable to the following positions:

CHF thousand/31.03.

2018/19

2019/20

Property, plant and equipment

14'503

13'107

Inventories

4'991

5'852

Non-current provisions

3'033

3'033

Assets from employer contribution reserve

7'865

8'155

Other balance sheet positions

729

658

Deferred tax liabilitiesA

31'121

30'805

  1. Only includes deferred tax liabilities; there are no deferred tax assets

22 Notes DOTTIKON ES Group

6  TRADE RECEIVABLES

Trade receivables are value adjusted as follows:

CHF thousand/31.03.

2018/19

2019/20

Trade receivables, gross

41'245

35'179

Individual value adjustments

0

0

Overall value adjustments

-43

-35

Trade receivables, net

41'202

35'144

At the balance sheet date, as in the previous year, there were no bad debts to be written off. Receivables which are not due and not subject to individual value adjustments are mainly receivables arising from long-standing customer relationships. Based on past experience, DOTTIKON ES Group does not anticipate any significant defaults.

At the balance sheet date, the aging structure of trade receivables which are not subject to individual value adjustments was as follows:

CHF thousand/31.03.

2018/19

2019/20

Not yet due

36'537

32'313

1 to 30 days overdue

4'300

2'859

31 to 60 days overdue

44

7

61 to 90 days overdue

26

0

More than 90 days overdueA

338

0

Total

41'245

35'179

  1. Previous year: receivables fully paid in April 2019

Condensed Annual Report 2019/20

7 INVENTORIES

CHF thousand/31.03.

2018/19

2019/20

Raw materials

12'985

14'606

SuppliesA

6'121

6'246

Trading goods

218

119

Semi-finished goods

22'046

26'329

Finished goods

25'718

31'356

Inventories

67'088

78'656

  1. Mainly includes precious metals in the form of catalysts for production purposes

Value adjustments deducted from the above-mentioned inventory balances amount to CHF 3'954 thousand as of March 31, 2020 (previous year: CHF 4'149 thousand).

23 Notes DOTTIKON ES Group

Condensed Annual Report 2019/20

8  DEVELOPMENT OF PROPERTY,

Land A

Buildings

Technicalplant and machinery

property,Other plant and equipment

Plantsunder construction B

Total

PLANT AND EQUIPMENT

CHF thousand

Cost

Balance 01.04.2018

8'699

147'366

343'046

13'936

38'844

551'891

AdditionsC

0

2'710

10'159

1'064

38'400

52'333

DisposalsD

0

-1'005

-5'057

-495

-4'000

-10'557

Reclassifications

0

985

3'685

126

-4'818

-22

Balance 31.03.2019

8'699

150'056

351'833

14'631

68'426

593'645

Balance 01.04.2019

8'699

150'056

351'833

14'631

68'426

593'645

AdditionsC

0

4'672

8'786

1'166

24'292

38'916

Disposals

0

-478

-11'921

-265

0

-12'664

Reclassifications

0

28'851

12'849

6'904

-48'631

-27

Balance 31.03.2020

8'699

183'101

361'547

22'436

44'087

619'870

Depreciation, accumulated

Balance 01.04.2018

0

-83'122

-226'599

-10'694

0

-320'415

AdditionsD

0

-2'727

-12'024

-758

-4'000

-19'509

DisposalsD

0

936

4'811

495

4'000

10'242

Reclassifications

0

0

0

0

0

0

Balance 31.03.2019

0

-84'913

-233'812

-10'957

0

-329'682

Balance 01.04.2019

0

-84'913

-233'812

-10'957

0

-329'682

Additions

0

-3'569

-13'774

-1'365

0

-18'708

Disposals

0

397

11'537

265

0

12'199

Reclassifications

0

0

0

0

0

0

Balance 31.03.2020

0

-88'085

-236'049

-12'057

0

-336'191

Carrying amounts

01.04.2018

8'699

64'244

116'447

3'242

38'844

231'476

31.03.2019

8'699

65'143

118'021

3'674

68'426

263'963

31.03.2020

8'699

95'016

125'498

10'379

44'087

283'679

AShare of unbuilt land as of 31.03.2020: CHF 1'854 thousand (31.03.2019: CHF 1'854 thousand and 01.04.2018: CHF 1'854 thousand) as well as share of built land as of 31.03.2020: CHF 6'845 thousand (31.03.2019: CHF 6'845 thousand and 01.04.2018: CHF 6'845 thousand)

BThereof prepayments for plants under construction, 31.03.2020: CHF 0 thousand (31.03.2019: CHF 0 thousand and 01.04.2018: CHF 362 thousand)­ CCapital expenditure reflects cost of acquired property, plant and equipment (without consideration of cash outflow)

DPrevious year: within the scope of the planning of the basic design for a new multipurpose plant, the project had to be redimensioned due to challenging subsoil foundation properties. CHF 4'000 thousand of accumulated planning work within plants under construction were not able to be capitalized and have been depreciated as well as derecognized

The insurance value of property, plant and equipment amounts to CHF 643'393 thousand as of March 31, 2020 (previous year: CHF 617'954 thousand). Capital commitments for property, plant and equipment amount to CHF 14'275 thousand as of March 31, 2020 (previous year: CHF 17'117 thousand). There was no impairment on property, plant and equipment in the reporting year 2019/20 (previous year: as mentioned in footnote D, property, plant and equipment was impaired by CHF 4'000 thousand). No interests were capitalized in the reporting and the previous year.

24 Notes DOTTIKON ES Group

Condensed Annual Report 2019/20

9  DEVELOPMENT OF INTANGIBLE ASSETS

Software

Total

CHF thousand

Cost

Balance 01.04.2018

3'169

3'169

AdditionsA

398

398

Disposals

-18

-18

Reclassifications

22

22

Balance 31.03.2019

3'571

3'571

Balance 01.04.2019

3'571

3'571

AdditionsA

68

68

Disposals

-90

-90

Reclassifications

27

27

Balance 31.03.2020

3'576

3'576

Amortization, accumulated

Balance 01.04.2018

-2'657

-2'657

Additions

-197

-197

Disposals

12

12

Reclassifications

0

0

Balance 31.03.2019

-2'842

-2'842

Balance 01.04.2019

-2'842

-2'842

Additions

-232

-232

Disposals

90

90

Reclassifications

0

0

Balance 31.03.2020

-2'984

-2'984

Carrying amounts

01.04.2018

512

512

31.03.2019

729

729

31.03.2020

592

592

ACapital expenditure reflects cost of acquired intangible assets (without consideration of cash outflow)

No development costs were capitalized in the reporting year 2019/20 and the previous year since no capitalization criteria were met. Expenses for research and development of CHF 18'321 thousand (previous year: CHF 16'129 thousand) were charged to the income statement. Capital commitments for intangible assets amount to CHF 39 thousand as of March 31, 2020 (previous year: CHF 131 thousand). There was no impairment on intangible assets in the reporting year 2019/20 and the previous year. No interests were capitalized in the reporting and the previous year.

25 Notes DOTTIKON ES Group

Condensed Annual Report 2019/20

10  PROVISIONS

Environmental provisions for soil rehabilitation (former storage tanks) were recognized and have changed as follows:

CHF thousand

2018/19

2019/20

Balance 01.04.

5'485

5'470

Additional provisions charged to income

0

0

Consumption with neutral impact on income

-15

-2

Unused amounts reversed and released to income

0

0

Balance 31.03.

5'470

5'468

thereof current

50

48

thereof non-current

5'420

5'420

11  SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

The Group Financial Statements were approved for issue by the Board of Directors on May 14, 2020. They are subject to approval by the Annual General Meeting. No significant events have occurred between March 31, 2020, and May 14, 2020, that would require an adjustment of the Group's carrying amounts of assets and liabilities or that would need to be disclosed under this heading.

27 DOTTIKON ES GroupCondensed Annual Report 2019/20

Corporate Governance

28 Corporate Governance DOTTIKON ES Group

Condensed Annual Report 2019/20

Corporate Governance (condensed)

29 Corporate Governance DOTTIKON ES Group

Condensed Annual Report 2019/20

Board of Directors

CEO

Dr. Markus Blocher

CFO

Human Resources

Marlene Born

Karin Krause

Business

Processes &

Purchasing

Production

Quality Management

Development

Technologies

Dr. Thomas Rosatzin

Bruno Eugster

Dr. Knut Hildebrandt

Dr. Stephan Kirschbaum

Dr. Urs BrändliA

  1. As of January 2020, until December 2019 Dr. Max Bachmann

GROUP STRUCTURE AND SHAREHOLDERS Group structure

DOTTIKON ES Group manufactures high-quality performance chemicals, intermediates, and exclusive active pharmaceutical­ ingredients (APIs) for the world's leading chemical and pharmaceutical industry. DOTTIKON ES Group is specialized in hazardous reactions and positions itself as strategic development and manufacturing partner and performance leader. DOTTIKON ES Group uses, maintains, and continuously expands its versatile technology and equipment portfolio to design, develop, and optimize chemical processes and techni­ cal manufacturing procedures for the rapid scale-up from kilograms­ to multi-tons in order to produce and deliver the respective market volumes.

The operating management structure of the Group is organized by functions according to the illustration on the left. DOTTIKON ES HOLDING AG, holding company of DOTTIKON ES Group, has its domicile in Dottikon and is listed on the SIX Swiss Exchange (DESN; security number 2073900; ISIN CH0020739006). The share capital amounts to CHF 127'264.40 as of March 31, 2020 (previous year: CHF 127'264.40). The market capitalization as of March 31, 2020, is CHF 819'582'736 (previous year: CHF 566'326'580). As in the previous year, there are no further listed companies in the Group.

DOTTIKON ES HOLDING AG has investments in the following companies

  • DOTTIKON EXCLUSIVE SYNTHESIS AG Domicile in Dottikon/share capital CHF 102'000 Investment share of 100 percent/fully consolidated Branch/purpose: chemicals/process development, manufacturing, and sale of chemical intermediates and active pharmaceutical ingredients
  • DOTTIKON ES MANAGEMENT AG
    Domicile in Dottikon/share capital CHF 100'000 Investment share of 100 percent/fully consolidated Branch/purpose: chemicals/management of investment companies, as well as review and assessment to evaluate their strategies
  • DOTTIKON ES AMERICA, Inc.
    Domicile in Delaware, USA/share capital CHF 0 Investment share of 100 percent/fully consolidated Branch/purpose: chemicals/business development, marketing, and consulting services for investment companies
  • SYSTAG, System Technik AG
    Domicile in Rüschlikon/share capital CHF 410'000 Investment share of 49.7 percent (previous year: 47.1 percent)A/equity method
    Branch/purpose: automated process technology/ development and manufacturing of integrated solutions for automated chemical process development as well as software and engineering services
  1. In the reporting year 2019/20, SYSTAG, System Technik AG acquired and
    recognized­ own shares in the balance sheet. As a result, as of March 31, 2020, DOTTIKON ES HOLDING AG has a participation of 49.7 percent in SYSTAG,
    System­ Technik AG

30 Corporate Governance DOTTIKON ES Group

Significant shareholders

The following shareholders hold more than 3 percent of the registered share capital:

In % of total share capital of

DOTTIKON ES HOLDING AG

31.03.2019

31.03.2020

Markus Blocher, WollerauA

71.7

71.8

Peter Grogg, Hergiswil NWB

7.0

7.0

Miriam Baumann, Rheinfelden

5.1

5.1

UBS Fund Management (Switzerland) AG, Basel

4.5

4.6

Condensed Annual Report 2019/20

Participations of the members

Number of

Number of

of the Board of Directors, Advisory

registered shares

registered shares

Board, and Senior Management

31.03.2019

31.03.2020

Markus BlocherA

Chairman of the Board of Directors

CEO/Managing Director

912'973

914'212

Thomas Früh

Deputy Chairman of the Board of Directors

non-executive

50

50

Alfred Scheidegger

31 Corporate Governance DOTTIKON ES Group

Condensed Annual Report 2019/20

BOARD OF DIRECTORS

MEMBERS OF THE BOARD OF DIRECTORS OF DOTTIKON ES HOLDING AG

As of March 31, 2020

Name

Nationality

Born

Position

Title

Term of office

Markus Blocher

Swiss

1971

Chairman, executiveA

Dipl. Chem. ETH, Dr. sc. nat. ETH

2010-2020

Thomas Früh

Swiss

1957

Deputy Chairman, non-executive

Dipl. Chem. ETH, Dr. sc. nat. ETH

2012-2020

Alfred Scheidegger

Swiss

1957

Member, non-executive

Dr. phil. II

2011-2020

  1. CEO/Managing Director
  1. Holds 59.4% as of 31.03.2020 (31.03.2019: 54.4%) through EVOLMA Holding AG, Wollerau
  2. Through Ingro Finanz AG, Bubendorf

Participations of members of the Board of Directors, Advisory Board, Senior Management, and persons related to them

Members of the Board of Directors, Advisory Board, Senior Management as well as their related parties hold the following registered shares of DOTTIKON ES HOLDING AG as of March 31, 2020 (previous year: March 31, 2019):

Member of the Board of Directors

non-executive

5

5

Bernhard UrwylerB

Advisory counselor

non-executive

-

0

Marlene Born

CFO

598

699

Karin Krause

Head of Human Resources

66

122

Stephan Kirschbaum

Head of Business Development

1'211

1'312

Max BachmannC

Head of Processes & Technologies

535

-

Urs BrändliD

Head of Processes & Technologies

-

302

Thomas Rosatzin

Head of Purchasing

187

246

Bruno Eugster

Head of Production

434

527

Knut Hildebrandt

Head of Quality Management

315

301

Total members of the Board of Directors,

Advisory Board, and Senior Management

916'374

917'776

  1. Holds 756'424 registered shares as of 31.03.2020 (31.03.2019: 691'733 registered shares) through EVOLMA Holding AG, Wollerau
  2. As of March 2020; there were no participation positions to be disclosed as of March 31, 2019
  3. Until December 2019; there are no participation positions to be disclosed as of March 31, 2020
  4. As of January 2020; there were no participation positions to be disclosed as of March 31, 2019

Markus Blocher

Professional background/career

Chairman of the Board of Directors of

Since 2012

DOTTIKON ES HOLDING AG

Member of the Board of Directors of

2010-2012

DOTTIKON ES HOLDING AG

Since 2003

CEO of today's DOTTIKON ES GroupA

Responsible for special projects

2002-2003

in the EMS Group

2000-2002

Consultant, McKinsey & Company, Zurich

  1. See Notes "Senior Management"

Other activities and binding interests

  • Chairman of the Board of Directors of EVOLMA Holding AG
  • Chairman of the Board of Directors of SYSTAG, System Technik AG
  • President of the Foundation Board of the pension plan of DOTTIKON ES Group and of the social welfare foundation of DOTTIKON EXCLUSIVE SYNTHESIS AG
  • Chairman of the Board of Directors of frugan Holding AG as well as of its subsidiary Evide AG (formerly agrofrucht-Inn AG)
  • Chairman of the Board of Directors of agrocult AG (until May 2019) and cultivport AG (until June 2019)

Thomas Früh

Professional background/career

Deputy Chairman of the Board of Directors of

Since 2012

DOTTIKON ES HOLDING AG

CEO of Bachem Group and

2012-2019A

Bachem Holding AG

2001-2012

COO of Bachem AG, Switzerland

COO of Bachem Bioscience, Inc.,

1998-2000

King of Prussia, Pennsylvania USA

Head of Production Department,

1997-1998

Bachem AG, Switzerland

Department Head Crop Protection

1994-1997

Research, Ciba, Basel

1990-1994

Project Leader Pharma Research Ciba, Japan

  1. Until December 2019

Other activities and binding interests

  • Member of the Board of Directors of Bachem Holding AG (as of April 2020)
  • Chairman of the Board of Directors of MFC Beteiligungs AG (as of April 2020)
  • President of the Foundation Board of the foundation SimplyScience
  • Vice president of the business association scienceindustries
  • Board member of Handelskammer beider Basel (HKBB)
  • Until December 2019 Chairman of the Board of Directors of Bachem AG (Switzerland), Bachem Americas, Inc. (USA), Bachem (UK) Ltd., and of Bachem Japan K.K. (Japan)
  • Until December 2019 Director of Bachem Distribution Services GmbH (Germany)

32 Corporate Governance DOTTIKON ES Group

Condensed Annual Report 2019/20

33 Corporate Governance DOTTIKON ES Group

Condensed Annual Report 2019/20

Alfred Scheidegger

Professional background/career

Member of the Senior Management of

Since 2017

Nextech Invest AG

Member of the Board of Directors of

Since 2011

DOTTIKON ES HOLDING AG

1998-2017

Founder and CEO of Nextech Invest AG

Administrative Director and member of

1995-1998

the Board of ETH Zurich

CEO Swiss Scientific Computing Center

1992-1995

(CSCS), Manno

1987-1991

Project Leader Ciba-Geigy in Basel and Japan

Other activities and binding interests

The 2 members of the Board of Directors, Thomas Früh and Alfred Scheidegger, did not have any executive function within the DOTTIKON ES Group in the past 3 years before the reporting year 2019/20. Neither of them nor any related party had significant business relations with DOTTIKON ES Group in the past years since being elected to the Board of Directors of DOTTIKON ES HOLDING AG.

In the reporting year 2014/15, DOTTIKON EXCLUSIVE SYNTHESIS AG and Bachem AG signed a cooperation agreement for the development, manufacturing, and distribution of amino acids and their derivatives. Despite personnel relations with DOTTIKON EXCLUSIVE SYNTHESIS AG, Bachem AG is not qualified as a related party. To provide higher transparency,

SENIOR MANAGEMENT

MEMBERS OF THE SENIOR MANAGEMENT OF DOTTIKON ES GROUP

As of March 31, 2020

Name

Nationality

Born

Function

Title

Member since

Markus Blocher

Swiss

1971

CEO/Managing Director

Dipl. Chem. ETH, Dr. sc. nat. ETH

2003

Marlene Born

Swiss

1975

CFO

Eidg. dipl. Expertin in Rechnungslegung/Controlling 2006

Karin Krause

Swiss

1968

Head of Human Resources

MAS Human Resource Management FH

2017

Stephan Kirschbaum

German

1967

Head of Business Development

Dipl. Chem., Dr. rer. nat.

2010

Urs BrändliA

Swiss

1960

Head of Processes & TechnologiesB

Dipl. Chem. ETH, Dr. sc. nat. ETH

2020

Thomas Rosatzin

Swiss

1962

Head of Purchasing

Dipl. mikrobiol., Dr. sc. nat. ETH, MBA

2014

Bruno EugsterC

Swiss

1955

Head of Production

Chemiker HTL

1997

Knut Hildebrandt

German

1958

Head of Quality Management

Dipl. Chem., Dr. rer. nat.

1999

  1. As of January 2020
  2. Until December 2019 Max Bachmann
  3. Until May 2020
  • Chairman of the Board of Directors of Nextech Holding AG and Nextech Invest AG
  • Member of the Board of Directors of Nextech III GP AG
  • Director of Nextech Venture (Principals) Limited, Jersey
  • Representative of the partner with unlimited liability of Nextech III Oncology Kommanditgesellschaft für kollektive Kapitalanlagen
  • Member of the Board of Directors of Cleave Biosciences, Burlingame, CA, USA (until May 2019)
  • Member of the Foundation Board of Rising Tide Foundation

the existence of a cooperation agreement is disclosed under this heading.

The composition of the Board of Directors of DOTTIKON ­EXCLUSIVE SYNTHESIS AG and DOTTIKON ES MANAGEMENT AG is the same as the composition of DOTTIKON ES HOLDING AG.

Advisory counselor

As of March 1, 2020, DOTTIKON ES Group appointed Dr. Bernhard Urwyler as advisory counselor. Bernhard Urwyler holds a doctoral degree in chemistry and looks back on more than 30 years of experience in chemical development and production. He leads the chemical production unit of Syngenta­ CP Produktion Monthey SA, VS.

Markus Blocher

Professional background/career

Since 2003

CEO of today's DOTTIKON ES Group

Responsible for special projects

2002-2003

in the EMS Group

2000-2002

Consultant, McKinsey & Company, Zurich

1997-2000

Scientist and doctorate at ETH Zurich

Other activities and binding interests

  • Chairman of the Board of Directors of DOTTIKON ES HOLDING AG (see Notes "Board of Directors")
  • CEO of DOTTIKON EXCLUSIVE SYNTHESIS AG, DOTTIKON ES HOLDING AG, and DOTTIKON ES MANAGEMENT AG
  • Chairman of the Board of Directors of EVOLMA Holding AG
  • Chairman of the Board of Directors of SYSTAG, System Technik AG
  • President of the Foundation Board of the pension plan of DOTTIKON ES Group and of the social welfare foundation of DOTTIKON EXCLUSIVE SYNTHESIS AG
  • Chairman of the Board of Directors of frugan Holding AG as well as of its subsidiary Evide AG (formerly agrofrucht-Inn AG)
  • Chairman of the Board of Directors of agrocult AG (until May 2019) and cultivport AG (until June 2019)

34 Corporate Governance DOTTIKON ES Group

Condensed Annual Report 2019/20

35 Corporate Governance DOTTIKON ES Group

Condensed Annual Report 2019/20

Marlene Born

Professional background/career

Since 2006

CFO of DOTTIKON ES Group

2005-2006

Controller at DOTTIKON ES Group

Head of Accounting, Migros

2000-2005

Verteilzentrum Suhr AG, Suhr

2000

Controller, ABB Normelec, Zurich

Accountant, Treuhandbüro

1995-2000

Deragisch, Baden

Other activities and binding interests

  • Member of the Senior Management of DOTTIKON EXCLUSIVE SYNTHESIS AG, DOTTIKON ES HOLDING AG, and DOTTIKON ES MANAGEMENT AG
  • Member of the Foundation Board of the pension plan of DOTTIKON ES Group
  • Vice president of the social welfare foundation of
    DOTTIKON EXCLUSIVE SYNTHESIS AG

Karin Krause

Professional background/career

Head of Human Resources of

Since 2015

DOTTIKON ES Group

Head of Human Resources,

2011-2015

Senn AG, Oftringen

Head of Financial Accounting and Human

2005-2011

Resources, Deputy CFO, Senn AG, Oftringen

Head of Financial Accounting and Human

2003-2005

Resources, Wematech AG, Wangenried

Accountant clerk,

1999-2003

Amcor Rentsch AG, Rickenbach

Human Resource clerk,

1995-1999

Amcor Rentsch AG, Rickenbach

Other activities and binding interests

  • Member of the Senior Management of DOTTIKON EXCLUSIVE SYNTHESIS AG and DOTTIKON ES MANAGEMENT AG

Stephan Kirschbaum

Professional background/career

Head of Business Development of

Since 2009

DOTTIKON ES Group

Head of Strategic Projects and Head of

Management Support HR&E in Wealth

2005-2009

Management & Swiss Bank, UBS AG, Zurich

Consultant and Engagement Manager,

1999-2005

McKinsey & Company, Munich DE

Research Scientist at University of

1997-1999

California, Santa Barbara USA

1994-1997

Doctorate at University of Karlsruhe DE

Other activities and binding interests

  • Member of the Senior Management of DOTTIKON EXCLUSIVE SYNTHESIS AG
  • Chairman of the Board of Directors and CEO of DOTTIKON ES AMERICA, Inc.

Urs Brändli

Professional background/career

Head of Processes & Technologies of

Since 2020A

DOTTIKON ES Group

Head of Research & Development of today's

2003-2019

DOTTIKON ES Group

Project Manager in Research & Development

1995-2003

at today's DOTTIKON ES Group

Head of Laboratory in Research & Develop-

1990-1995

ment at today's DOTTIKON ES Group

  1. As of January 2020

Other activities and binding interests

  • Member of the Senior Management of DOTTIKON EXCLUSIVE SYNTHESIS AG and DOTTIKON ES MANAGEMENT AG (as of January 2020)

Thomas Rosatzin

Professional background/career

Since 2014

Head of Purchasing of DOTTIKON ES Group

2007-2013

CEO of RohnerChem (Rohner AG), Pratteln

2005-2007

COO of Induchem AG, Volketswil

Head Product Line Management,

2001-2005

Unaxis/ESEC, Steinhausen

Business Unit Manager Paper Processing

1995-2001

Chemicals, Dr. W. Kolb AG, Hedingen

Other activities and binding interests

  • Member of the Senior Management of DOTTIKON EXCLUSIVE SYNTHESIS AG
  • Member of the welfare application decision panel of Aeugst a. A.

Bruno Eugster

Professional background/career

Head of Production of today's

Since 1999A

DOTTIKON ES Group

Head of Technical Services of today's

1997-1999

DOTTIKON ES Group

Several leading positions at today's

DOTTIKON ES Group, lastly

1979-1997

Head of Production Facilities

  1. Until May 2020

Other activities and binding interests

  • Member of the Senior Management of DOTTIKON EXCLUSIVE SYNTHESIS AG (until May 2020)
  • Member of the Board of the Chamber of Aargauische Industrie- und Handelskammer (AIHK), therein president of the section Freiamt (until December 2019)
  • Expert judge, labor court, canton Aargau (through December 2020)

Knut Hildebrandt

Professional background/career

Head of Quality Management of today's

Since 1999

DOTTIKON ES Group

Several leading positions at today's

DOTTIKON ES Group, lastly

1989-1999

Project Manager Production

Other activities and binding interests

  • Member of the Senior Management of DOTTIKON EXCLUSIVE SYNTHESIS AG

Changes in Senior Management in the reporting year 2019/20

On December 31, 2019, Max Bachmann handed over the Senior Management position of Head of Processes & Technologies to Urs Brändli upon reaching the official retirement age. Urs Brändli was appointed as member of the Senior Management and Head of Processes & Technologies on Jan- uary 1, 2020. Max Bachmann will continue to actively support DOTTIKON ES Group in the current phase of growth and capacity expansion and will be responsible for Debottlenecking and New Production Facilities Projects.

Information regarding the person of Max Bachmann can be found in the Condensed Annual Report 2018/19 on pages 37 and 38, available under the following internet link https:// dottikon.com/upload/PDF/Investors/Financial_Reports/EN/ annual_report_2018_19.pdf.

37 DOTTIKON ESCondensed Annual Report 2019/20

Investor Relations

Annual General Meeting for the Business Year 2019/20

July 3, 2020

Issue Half-Year Report 2020/21

November 27, 2020

Issue Annual Report 2020/21

May 28, 2021

Annual General Meeting for the Business Year 2020/21

July 2, 2021

DOTTIKON ES HOLDING AG is listed on the SIX Swiss Exchange.

Symbol: DESN

Security number: 2073900

ISIN: CH0020739006

Dottikon ES Holding AG

P.O. Box

5605 Dottikon

Switzerland

Tel +41 56 616 82 01

Fax +41 56 616 89 45

www.dottikon.com

Contact

Marlene Born, CFO investor-relations@dottikon.com

39 DOTTIKON ES

Condensed Annual Report 2019/20

DOTTIKON ES manufactures high-quality performance chemicals, intermediates, and exclusive­ active pharmaceutical ingredients (APIs) for the world's leading chemical and pharmaceutical industry. The company with its production site in Dottikon (Aargau, Switzerland) is specialized in hazardous reactions and positions itself as strategic development and manufacturing partner and performance leader. Its safety culture created over the past 105 years guides the innova­ tive use of hazardous reactions, low-temperature and high-pressure chemistry, as well as continuous processing in order to challenge, tighten, or shorten conventional chemical synthesis routes, improve selectivities, yields, and purities, and reduce waste. The versatile technology and equipment portfolio is used, maintained, and continuously expanded to design, develop, and optimize chemical processes and technical manufacturing procedures for the rapid scale- up from kilograms to multi-tons in order to produce and deliver the respective market volumes. DOTTIKON ES' one-site strategy allows reduced decision and communication pathways. This ensures rapid and efficient project development as well as clear and transparent data and process documentation and customer communication.

DISCLAIMER

IMPRINT

Statements on future events or developments, particularly on the estimation of future

Photography

business, reflect the view of the management of DOTTIKON ES HOLDING AG in the

Anja Wille-Schori, Zurich

moment of composition. Since these naturally contain uncertainties and risks, they are

www.anjawille.com

given without guarantee and any liability is denied. DOTTIKON ES HOLDING AG refus­

es to actualize any forward-looking statements. The Internet version of these financial

Art Direction, Graphics & Typesetting

statements is exposed to fraudulent manipulation possibilities that are within such a

Raffinerie, Zurich

medium, and is therefore without guarantee. The comprehensive Annual Report is

www.raffinerie.com

available in German. Only the comprehensive German version submitted to the SIX

Swiss Exchange is legally binding.

1 2 3

Schematic overview

4 5 6

7 8

9 10 11 12

13 14 15 16

17 18

19

20

21

22

9

5 / 22

11

21

18

19

14

3

20

17

16

13

1/15

10

2

4

12 7

6

8

200 m

Dottikon ES Holding AG

P.O. Box, 5605 Dottikon, Switzerland, Tel +41 56 616 82 01, Fax +41 56 616 89 45, www.dottikon.com

Disclaimer

Dottikon ES Holding AG published this content on 29 May 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 May 2020 05:20:07 UTC


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Financials
Sales 2020 175 M 188 M 188 M
Net income 2020 33,2 M 35,6 M 35,6 M
Net cash 2020 42,8 M 46,0 M 46,0 M
P/E ratio 2020 24,3x
Yield 2020 -
Capitalization 2 302 M 2 472 M 2 471 M
EV / Sales 2019 3,47x
EV / Sales 2020 4,36x
Nbr of Employees 630
Free-Float 21,4%
Chart DOTTIKON ES HOLDING AG
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Dottikon Es Holding AG Technical Analysis Chart | MarketScreener
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Technical analysis trends DOTTIKON ES HOLDING AG
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Managers and Directors
NameTitle
Markus Blocher Chairman, Chief Executive Officer & MD
Marlene Born Chief Financial Officer
Urs Brńndli Head-Processes & Technologies
Alfred Scheidegger Non-Executive Director
Stephan Kirschbaum Head-Business Development
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1st jan.Capitalization (M$)
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