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Nanogate Reorganizes Entire Group: NXI Program for the Future Expected to Increase Sales to EUR 500 Million and EBITDA to EUR 75 Million


- New program lasting until 2025 is expected to significantly increase sales and will focus on profitability and free cash flow
- Current decentralized organizational structure will be simplified and enhanced by centralized management elements in key areas
- Focus on operating excellence, organic growth and international implementation of technologies developed
- Industrial business will be expanded particularly strongly
- Forecast for 2018 confirmed


Göttelborn, Germany, November 26, 2018. Nanogate SE, a leading global specialist for design-oriented high-tech surfaces and components, is launching its new Nanogate Excellence International (NXI) program for the future. Its target is to increase sales to more than EUR 500 million and achieve EBITDA of EUR 75 million by the year 2025. At the same time, free cash flow is also expected to improve substantially in the medium term.

Ralf Zastrau, CEO of Nanogate SE: “The NXI program for the future will enable us to reorganize the Group, simplify structures and make it more centralized over the next two years. Notwithstanding the necessary expenses and adverse effects over the coming months, we expect our earnings and cash flow to improve significantly in the medium term. We also want to considerably increase the share that our industrial business represents, give a boost to further internationalization and position Nanogate as a leading brand for innovative surfaces and components.”


Enhanced Company Structure

As part of the Group restructuring, the Group will be completely reorganized. The goal is to further improve cooperation within the international Group and take advantage of existing synergies at all levels.

This will allow Nanogate to reduce its complexity and boost its productivity. In the future, market development will be carried out in a location-independent, clearly sector-based, and internationally networked manner. Existing capacities will also be reassessed, discontinued or relocated in favor of projects with stronger margins, not least of all in order to meet the requirements of major new orders as effectively as possible. At the same time, central divisions such as Finance and Controlling will be significantly expanded in order to manage the Group more effectively. Nanogate also expects further important future potential in the significant expansion of central procurement and purchasing processes.

As part of the reorganization, Nanogate will use mergers to reduce the number of its subsidiaries, and will establish cross-locational management structures and high-performance shared services. This will strengthen transparency across the board and create more efficient decision-making processes within the Group, thus laying the crucial foundation for further international growth. Nanogate will also significantly enhance its brand and market presence under the “ONE Nanogate” principle. The goal is to position the Group as a leading, fully integrated and globally active technology group. In this context, the individual companies will also be focused under the Nanogate brand rather than their current names in the future.


Stronger Organic Growth and Technology Implementation

Nanogate wants to grow under its own steam to a greater extent in the coming years and benefit from the newly-launched innovation drive and its expanded technology expertise. At the same time, international market development is to be accelerated and there is to be a greater focus on Asian markets in addition to North America. No major M&A projects are planned at present. Takeovers and investments to enhance the technology portfolio will continue to be selectively examined.


Target for 2025: Sales of EUR 500 million, Operating Result of EUR 75 million

The Group anticipates increased expenses in the short term in view of the ongoing innovation program, the planned initiation of mass production for current major orders and as a result of the measures included under NXI, and expects these expenses to pay off in the medium term. Accordingly, Nanogate has specified new medium-term targets following its dynamic performance in recent months. Sales are expected to increase to more than EUR 500 million by 2025 (2017: EUR 186.2 million). EUR 200 million of this should come from its industrial business in the future. The operating result (EBITDA) is expected to increase much faster than sales and reach at least EUR 75 million (2017: EUR 21.6 million). Nanogate continues to forecast sales of more than EUR 220 million and EBITDA of over EUR 24 million for 2018. The company will announce the forecast for the upcoming fiscal year in February 2019.

“With NXI, Nanogate is clearly focusing on increased efficiency and productivity, stronger organic growth and the global implementation of technological competencies. As a successor program to Phase5, NXI will simultaneously serve to reduce complexity, facilitate a high degree of transparency, create highly interconnected processes, enable new strategic partnerships and bring us closer to our customers worldwide. We are positioning ourselves as a fully integrated group with a strong international market presence. With NXI, we are acting against the backdrop of our successful development in recent years and laying the foundations for the company's next phase – combined with sustainable increases in profitability and cash flow,” explains Nanogate CEO Zastrau.