X-Ray Systems

IXS had a strong 2016. The increased efforts to develop selected market segments paid off, as did the reinforced position in the space for CT solutions, which allow the ever more complex components in industrial processes to be imaged and inspected three-dimensionally. The strongest growth was realized with the aerospace sector, followed by the electronics market and labs/R&D. Under the Group's Strategy 2020, IXS invested in building its capabilities to move into metrology as a new application. This and a higher share of project business in the sales split resulted in a lower EBITDA margin than a year ago.

Growth in aerospace, electronics and labs/R&D

Much as in 2015, the strength in the segment's markets varied between industries in 2016. In the aerospace sector, order backlogs from the previous years led to a doubling of sales. Sales into the electronics market grew by 33%, with miniaturization, mobile communication, and IoT applications remaining the driving factors. Thanks both to a portfolio more strongly focused on regional requirements and to investment in wider marketing, IXS was able to exploit the positive momentum of the market, particularly in Asia. In the labs/R&D area, the focus on museums, coupled with investment in sales resources, propelled sales growth of 31%. A major competitive advantage besides offering the best image quality proved to be the ability to tailor solutions for customers.

The tire, wheel and castings markets (combined under "automotive") remained slightly below the prior year: The tire market, after two lean years, barely recovered from the impacts of regulatory changes in China and the introduction of US tariffs on Chinese tires. Thanks to proven products, IXS was able to narrowly maintain its market position in this fiercely competitive segment. Sales of inspection systems for wheels and castings also could not match the year-earlier result, due partly to the delayed acceptance of some systems. The service business, which had grown strongly in the prior year, consolidated in 2016. By virtue of attractive service revenue at the prior-year level.

First commercial successes with 3D x-ray inspection systems

The miniaturization and complexity of components will continue to rise. The measuring (metrology) of internal structures based on high-resolution 3D images will thus gain in importance in production lines as well. IXS is pursuing this important area of application, both on its own and together with partners like Hexagon Manufacturing Intelligence. In 2016, encouraged by early sales successes and uniformly positive customer feedback, the further developmental evolution of the inspection systems was accelerated. Additionally, IXS prepared for a collaboration with Hexagon for 2017 in a significant market segment. Investment in the year focused on expertise, new functionalities and the creation of a test environment. The first sales negotiations with customers were conducted for the SmartLoop system, which was developed with Mirtec for flaw detection on the production line using 3D imaging. IXS also rounded out its portfolio for the electronics industry with a supplementary, easy-to-operate inspection system. This enabled IXS to heighten its competitiveness and gain a foothold in the non-premium market segment by booking the first sales, notably in China.

New drivers: In-line systems for the semiconductor and tire industries

In 2017, IXS will continue to focus on the Industry 4.0 capability of its systems through software interfaces. The solution developed with Mirtec for the electronics market will be deployed by customers for the first time in 2017. IXS sees continuing growth opportunities in the semiconductor industry, which must speed up its production processes and make them more reliable and which will therefore increase its demand for x-ray based inspection systems. The IXS segment also expects a recovery in the Chinese tire market. The service side too is readying for further growth, such as through a global database in which the entire installed base of all YXLON systems worldwide is managed.