As the operating arm of the ORGU foundation, INTEGRA Holding Ltd. pursues the goals
of the foundation while taking an active and farsighted approach to enhancing the value
of the INTEGRA Group.
Last fiscal year was marked by general uncertainty caused by the global recession, which
hit certain sectors particularly hard. For some time, one heard almost daily of major
drops in corporate revenues, often threatening the survival of those concerned.
Simultaneously, governments announced generous economic stabilization packages
worldwide, on an unprecedented scale. However, the jury is still out as to the wisdom of
these rescue programs and, in particular, their effect and sustainability. Unquestionably,
though, these programs will run out and the real economy will have to find its true level
alone.
Under these programs, national debts soared to record levels, which will certainly concern
us for the foreseeable future. The outcome was that at the end of 2009, China and
Japan held US Treasury Securities worth US$ 1,6 trillion. Concurrently, there was a steep
rise in the number of industrialized countries with a poor economic/financial outlook and
higher vulnerability than that of some developing countries. Only a few years ago, most
people would have rejected such a possibility. In order to avoid strong inflationary pressures,
governments will inevitably have to withdraw the massive sums pumped into the
global system, and seek to rescue their own budgets.
The latter was one reason for the frontal attack from several directions on Switzerland’s
banking secrecy. Some countries even began to play hardball, with Germany resorting
to buying stolen banking information. Nevertheless, the need for a country to shore up
their own budget should not mark the beginning of a new form of protectionism.
Unfortunately, it appears that nations will again try to protect their own economies
through new types of trade barriers. This will inevitably worsen their competitiveness
over the long-term, and thereby serve to accelerate the shift in relative economic power
from the currently leading western nations to the rapidly growing powerhouses of Asia
in particular.
Under such economic conditions companies often lean increasingly towards short-term
actions at the expense of long-term, sustainable approaches. Consequently, they do not
address the causes of this crisis systematically, whose resolution is predicated upon
internationally coordinated policies. The call for global regulatory mechanisms for the
economy is thus not entirely unfounded.
National policies are also imperative. The Swiss economy could regain a healthier level of
equilibrium, if decision-makers were to foster the true underlying strength of the nation
and use it as the foundation for creating sustainable free market conditions for a wellbalanced
economic and social structure. Switzerland needs to tone down its dependence
on services and instead place investment and development of next generation
technologies, that add real and sustainable value, at the centre of a strategy for growth.
We will need to be patient to see where the global economy heads after this crisis. It is
hard to predict how long we will continue to see the ongoing effects of the combination
of the urgently needed debt reduction by many economies and a more restrictive financial policy.
At the end to the last fiscal year the INTEGRA Group, as a whole, emerged out of this
global economic crisis relatively unscathed.
We completed the first residential phase of IntegraSquare in Wallisellen without a major
a hitch, renting out all 153 apartments. We completed phase two of IntegraSquare in just
six years of development activities.
Acquiring VIAFLO Corporation in the US not only opened the doors to a strategically
important market, it also provided INTEGRA Biosciences with a full range of complimentary
innovative liquid handling devices. These two firms are perfectly matched. The
acquisition helped to increase our revenues in the US, offsetting the reduction in other
regions caused by the global economic downturn. However, since we are still in the buildup
phase in the US market, INTEGRA Biosciences did not generate a profit for this year.
We renamed our Indian division, as of the beginning of the year, to INTEGRA India
Group Co. Ltd. The intent was to clearly identify the company with its operating market
and highlight its ownership by the INTEGRA Group. The high-growth measures we initiated
last year are beginning to bear fruit – with the result that operating profit jumped
40% and net income shot up by 60%.
The Aquametro Group and SIGNAL Ltd. managed to further solidify their market positions.
The INTEGRA Group maintained its revenues and value addition, without accounting for
the acquisition of VIAFLO. On a consolidated basis, EBITDA dropped slightly by 10%,
while net profits before minority holdings fell by 9% to CHF 5,6 million.
We are cautiously optimistic, despite positive expectations concerning the global economy. However only the future will tell how sustainable the current upswing is. There is no
easy path facing us; we must do our strategic homework and keep costs under control.
I am confident that we are well-positioned for the future, and ready to meet new challenges
that may arise in the coming years. All of us must accordingly be resilient and
strive together to succeed through improved performance. Our employees are the foundation
of our healthy growth and, hence, I would like to thank each one of you for the
contributions you made every day.
Adrian Oehler
CEO
INTEGRA Holding Ltd.
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