Notes to the consolidated financial statements

 

01 Nature of the business activities

01Nature of the business activities

The Comet Group (“Comet”, the “Group”) is one of the world’s leading vendors of x-ray and radio frequency (RF) power technology. With high-quality components, systems and services, marketed under the “Comet” and “Comet Yxlon” brands, the Group helps its customers optimize the quality, reliability and efficiency of their products and processes. Comet Yxlon x-ray systems for non-destructive inspection are supplied to end customers in the electronics, automotive and aerospace sectors. Under the Comet brand, the Group builds components and modules such as x-ray sources, vacuum capacitors, RF generators and impedance matching networks, marketed to manufacturers in the semiconductor, automotive and aerospace industries as well as the security sector.

02 Accounting policies

02Accounting policies

The consolidated financial statements (except with respect to certain financial instruments) have been drawn up under the historical cost convention. The fiscal year-end for the financial statements of all Group companies is December 31. These consolidated financial statements have been prepared in compliance with Swiss stock corporation law and IFRS Accounting Standards. All IFRS Accounting Standards in force at the balance sheet date and all interpretations (IFRIC) of the International Accounting Standards Board (IASB) were applied. Comet did not early-adopt new standards and interpretations unless specifically stated. The significant accounting policies applied are unchanged from the prior year except as set out below.

As a result of rounding and the presentation in thousands of Swiss francs, individual numbers in the consolidated financial statements may not sum precisely to the totals indicated.

02.1Changes in accounting policies

Revised and new accounting rules

With effect from January 1, 2024, Comet has applied the following new or adjusted IFRS Accounting Standards/IFRIC for the first time:

  • IAS 1 – Presentation of Financial Statements: Classification of Liabilities as Current or Non-current, and Non-current Liabilities with Covenants (Amendments to IAS 1)
  • IFRS 16 – Lease Liability in a Sale and Leaseback (Amendments to IFRS 16)
  • IAS 7 and IFRS 7 – Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7)

The new or amended standards and interpretations had no material effect on the Group’s financial position, results of operations and cash flows.

02.2New accounting rules becoming effective in subsequent periods

 

 

 

 

Standard

Expected impact

Effective date

Planned adoption by Comet

IAS 21 – Lack of Exchangeability (Amendments to IAS 21)

*

Jan. 1, 2025

Fiscal year 2025

IFRS 9 and IFRS 7 – Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS 7)

*

Jan. 1, 2026

Fiscal year 2026

IFRS 9 and IFRS 7 – Amendments to Power Purchase Agreements (Amendments to IFRS 9 and IFRS 7)

*

Jan. 1, 2026

Fiscal year 2026

IFRS 18 – Presentation and Disclosure of Financial Statements

*

Jan. 1, 2027

Fiscal year 2027

IFRS 19 – Subsidiaries without Public Accountability: Disclosures

*

Jan. 1, 2027

Fiscal year 2027

* Expected to have no, or no significant, impact on the financial position, results of operations and cash flows.

02.3Estimates

Comet’s consolidated financial statements contain assumptions and estimates that affect the reported financial position, results of operations and cash flows. These assumptions and estimates were made on the basis of management’s best knowledge at the time of preparation of the accounts. Actual results may differ from the values presented. The following estimates have the greatest effects on the consolidated financial statements:

  • Intangible assets (see notes 18 and 19): For acquisitions, the fair value of the acquired net assets (including acquired intangible assets) is estimated. Any amount paid in excess of this estimate represents goodwill. Intangible assets with a finite life are written off over the expected period of use; those with an indefinite life (primarily goodwill and rights to trademarks and names) are not amortized but are tested annually for impairment. Especially in the determination of the value in use of goodwill and rights to trademarks and names, differences between assumed and actual outcomes could lead to changes in the results of impairment testing. The assumptions concerning the achievable margins and the growth rates have a significant impact on impairment test outcomes. The valuation of goodwill and other intangibles, as well as the estimation of useful life, have an effect on the consolidated financial statements.
  • Provisions (see note 23) are, by definition, liabilities of uncertain amount. Future events can thus lead to adjustments that affect income.
  • Deferred tax assets (see note 10) are recognized only if it is likely that taxable profits will be earned in the future. The tax planning is based on estimates and assumptions as to the future profit trajectories of the Group companies that may later prove incorrect. This can lead to changes with an effect on income.
  • Employee benefit plans (see note 24): The Group operates employee benefit plans for its staff that are classified as defined benefit plans under IFRS Accounting Standards. These defined benefit plans are valued annually, which requires the use of various assumptions. Differences between the actual outcomes and the assumptions, particularly as to the discount rate for future obligations and as to life expectancy, may have effects on the valuation of plan assets and thus on the financial position of the Group. The impact of the most important parameters on the net present value of the obligation is presented in note 24.
Business environment

After a pronounced correction in 2023, the semiconductor market began to recover in 2024, primarily driven by the increasing demand for AI-related applications. However, the pace of recovery has varied across segments. Memory and NAND markets have remained under pressure, largely due to weak demand in consumer-oriented sectors such as automotive, smartphones, and PCs, where replacement cycles have not yet started. Industrial segments also faced headwinds, which were mainly felt in the two x-ray divisions IXS and IXM. On the other hand, PCT was able to benefit from the gradual recovery of the semiconductor industry. Although short-term challenges persist, the long-term outlook for the semiconductor industry and its suppliers remains promising. The accelerating digitalization and electrification of the economy and society is expected to fuel strong demand for semiconductors in the years to come.

With respect to ongoing sources of uncertainty such as trade restrictions and geopolitical tensions, Comet critically reviewed the assumptions and estimates that affect the financial position, results of operations and cash flows. In this review, no relevant changes were identified that would have a material impact on these financial statements.

02.4Consolidation

02.4.1Basis of consolidation

In 2024, there were no changes in the basis of consolidation from the prior year.

The consolidated financial statements thus comprise the accounts of the companies listed below:

 

 

 

 

 

 

 

Equity interest and voting rights in %

 

 

 

 

 

Company

Registered office

2024

 

2023

Comet Holding AG

Flamatt, Switzerland

100%

 

100%

Comet AG

Flamatt, Switzerland

100%

 

100%

Comet Electronics (Shanghai) Co. Ltd.

Shanghai, China

100%

 

100%

Comet Mechanical Equipment (Shanghai) Co. Ltd.

Shanghai, China

100%

 

100%

Comet Solutions Taiwan Ltd.

Hsinchu County, Taiwan

100%

 

100%

Comet Technologies Canada Inc.

Montreal, Canada

100%

 

100%

Comet Technologies Denmark A/S

Taastrup, Denmark

100%

 

100%

Comet Technologies Japan KK

Yokohama, Japan

100%

 

100%

Comet Technologies Korea Co. Ltd.

Suwon, Korea

100%

 

100%

Comet Technologies Malaysia Sdn. Bhd.

Penang, Malaysia

100%

 

100%

Comet Technologies USA, Inc.

Shelton, CT, USA

100%

 

100%

Comet Yxlon GmbH

Hamburg, Germany

100%

 

100%

Yxlon (Beijing) X-Ray Equipment Trading Co. Ltd. in liquidation 1

Beijing, China

100%

 

100%

1 In December 2024, the company announced the liquidation procedures to the Beijing authorities. Official registration of liquidation will follow in due course.

02.4.2Method of consolidation

The consolidated financial statements represent the aggregation of the annual accounts of the individual Group companies, which are prepared using uniform accounting principles. Those companies controlled by Comet Holding AG are fully consolidated. This means that these companies’ assets, liabilities, equity, expenses and income are entirely included in the consolidated financial statements. All intragroup balances and transactions, unrealized gains and losses resulting from intragroup transactions, and dividends are eliminated in full.

Acquisitions and goodwill

Companies are consolidated from the date on which effective control passes to the Group. Consolidation ends only when effective control ceases. On acquisition, the identifiable assets, liabilities and contingent liabilities are measured at fair value and included in the accounts using the acquisition method. For acquisitions, intangible assets that arise from a contractual or legal right or are separable from the business entity, and whose fair value can be measured reliably, are reported separately. Goodwill, being the excess of the aggregate consideration transferred over the fair value of the net assets of the acquired subsidiary, is initially measured at cost. If the aggregate consideration transferred is lower than the fair value of the acquired net assets, the difference is recognized as negative goodwill in other operating income at the acquisition date. Goodwill and other intangible assets are allocated on acquisition to those cash-generating units expected to benefit from the acquisition or to generate future cash flows as a result of it. When Group companies are sold, the difference between their sale price and their net assets, plus accumulated currency translation differences, is recognized as operating income in the consolidated statement of income.

Foreign currency translation

The functional currency of the Group companies is usually the respective national currency. In fiscal year 2024, Comet reevaluated the functional currency for Comet Technologies Malaysia Sdn. Bhd. As financing and operations cash flows are mainly denominated in USD, the functional currency was changed to USD for Comet Technologies Malaysia Sdn. Bhd. Transactions in a currency other than the functional currency are translated at the exchange rate prevailing at the transaction date. Financial assets and liabilities are translated at the balance sheet date at the exchange rate as of that date; the resulting currency translation differences are reported in the income statement. The consolidated financial statements are presented in Swiss francs. The financial statements of the Group companies are translated at the average exchange rates for the year (the “average rate” in the table below) for the income statement and at year-end rates (the “closing rate”) for the balance sheet. The resulting currency translation differences are recognized in other comprehensive income. Currency translation differences from intragroup loans for the long-term financing of Group companies are partly recognized in other comprehensive income, to the extent that repayment is neither planned nor is likely to occur in the foreseeable future.

The exchange rates used to translate the most important currencies are listed below:

 

 

 

 

 

 

 

 

 

 

 

 

 

Closing rate

 

Average rate

 

 

 

 

 

 

 

 

 

 

Country or region

 

 

Dec. 31, 2024

 

Dec. 31, 2023

 

2024

 

2023

USA

USD

1

0.903

 

0.841

 

0.881

 

0.899

Eurozone

EUR

1

0.940

 

0.929

 

0.953

 

0.972

China

CNY

1

0.123

 

0.118

 

0.122

 

0.127

Japan

JPY

100

0.578

 

0.597

 

0.582

 

0.641

Denmark

DKK

1

0.126

 

0.125

 

0.128

 

0.130

Republic of Korea

KRW

1,000

0.613

 

0.650

 

0.647

 

0.689

Malaysia

MYR

1

0.202

 

0.183

 

0.193

 

0.198

Canada

CAD

1

0.630

 

0.635

 

0.643

 

0.666

Taiwan

TWD

100

2.754

 

2.751

 

2.744

 

2.886

02.5Measurement and recognition policies

Revenue recognition (sales and other income)

The Group’s revenue is derived from the sale of goods (including spare parts) by the PCT and IXM divisions and the sale of systems (including services such as installation) by the IXS division. Revenue from the sale of goods, including spare parts, systems and system-related services, is as a rule recognized on the basis of a single performance obligation, which is satisfied at a specific point in time. The performance obligation is satisfied, and the revenue recognized, when the customer acquires control of the product or service. In the sale of goods that are not systems, the transfer of control generally occurs at the time of delivery. Generally, performance obligations for system sales (including for installation) are fulfilled at the time of acceptance by the customer. In limited circumstances, the delivery of the system and the system installation can form two separate performance obligations. In connection with both non-system goods and with systems, Comet also offers services. Warranty obligations for providing an additional service to the customer (service-type warranties), such as an extension of the warranty period, are separate performance obligations and the revenue associated with them is recognized over time. For general maintenance services and defect correction intended to ensure that the delivered good is, or performs, as specified in the contract (assurance-type warranties), the estimated cost of the liability is recognized as a provision in accordance with IAS 37.

Customer contributions to development projects and payments for the delivery of the respective first prototype are recorded in other operating income; subsequent deliveries of prototypes are reported as sales.

Variable price elements (variable consideration) exist both in retroactive rebates when the quantity of products purchased exceeds a certain threshold in the calendar year, and in individual discounts on products. The amount of the rebate is estimated using the most-likely-amount method and as a rule is allocated proportionately to all performance obligations under the contract.

Sales commissions owed for agent activities are capitalized at contract inception as incremental costs attributable to obtaining a contract and a liability of equal amount is recognized for sales commissions. Their recognition as an expense occurs as soon as Comet has transferred control of the products to the customer. In principle, no interest effect is recognized for contract liabilities and prepayments by customers, as the period between the time of transfer of a promised good or service to the customer and the time of payment is not more than one year.

Cash and cash equivalents

In addition to cash on hand and balances in checking accounts at banks, cash and cash equivalents include short-term highly liquid cash investments and time deposits with original maturities of up to three months. Time deposits and similar instruments with original maturities of more than three months, but less than twelve months, are classified as other current financial assets.

Trade and other receivables and contract assets

Comet provides for impairment using the simplified approach by recognizing an allowance in the amount of the losses expected over the remaining life of the instruments (known as the expected credit loss model). For specific doubtful arrears with objective indications of impairment, impairment charges are applied individually.

Whether a receivable or a contract asset is recognized is governed by whether the right to consideration is unconditional (leading to recognition of a receivable) or conditional (leading to recognition of a contract asset).

Financial assets and liabilities

Financial assets and liabilities are initially measured at fair value (market value), including transaction costs, except in the case of financial assets categorized as at fair value through profit or loss, for which transaction costs are recorded directly in financing expenses. All purchases and sales of financial assets are recognized at the transaction date.

  • Financial items at fair value through profit or loss: These include all derivatives, trading positions, and certain financial assets and liabilities designated as falling into this category. These assets and liabilities are recognized at fair value in the balance sheet. Changes in fair value are reported as financing income or expense in the reporting period in which they occur.
  • Financial items at amortized cost: These are measured at cost using the effective interest method.

In the fiscal year as in the prior year, no hedge accounting under IFRS 9 was applied to any hedging transactions.

Inventories

Inventories are recorded at the lower of cost and net realizable value. Net realizable value represents the estimated normal sale price less the costs of completion, marketing, selling and distribution. Raw materials and purchased products are measured using the weighted-average method; internally produced goods are measured at standard costs. Inventories include proportionate shares of production overheads.

Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation and impairment. Borrowing costs related to qualifying assets form part of the historical cost. Depreciation is provided on a straight-line basis over the estimated useful life of the assets. The expense for depreciation of property, plant and equipment is recognized in the income statement under that expense category which corresponds to the function of the particular asset in the Group. Land values are not depreciated. Impairment charges are recognized as a separate line item under accumulated depreciation and impairment. Maintenance costs are recognized as assets only if the maintenance extends the expected life of the asset, expands production capacity or otherwise increases asset values. The costs of maintenance and repair that do not increase asset values are charged directly to income. The following estimated useful lives are applied in determining depreciation:

 

 

Real estate

20-40 years

Plant and equipment

6-10 years

Other tangible assets

3-10 years

Right-of-use assets and lease liabilities

At the inception of every contract, Comet assesses whether it includes a lease, separating lease components from non-lease components. No assets and liabilities are recognized for leases with a term of one year or less and for leases of low-value assets (with a value when new of less than CHF 5,000); the expenses for these are recognized directly in the income statement. The initial measurement of the right of use for a leased asset is made by calculating the present value of the lease payments, plus initial direct costs, plus estimated costs for dismantling, removal and restoration, less lease incentives received. The lease liabilities correspond to the present value of the discounted payment obligations. For discounting the lease payments, Comet uses the interest rate implicit in the lease. In doing so, the currency area in which the leased asset is located and the Comet-specific credit risk are taken into account. Comet primarily has leases with fixed payments, which includes leases with rent-free periods and ones with rising payments. Leases with variable payments are immaterial.

Comet’s leases may include renewal options. These are included in the calculations only if, taking into account all significant determining factors, they are considered highly likely to be exercised. For indefinite leases, the following principles apply (the extension periods cited are from the lease inception or from the expiry of the minimum lease term):

 

 

 

Maximum extension

Buildings

3 years

Equipment

2 years

Other assets

1 year

Intangible assets

The intangible assets recognized are goodwill, rights to trademarks and names, customer lists, technology, licenses, patents, and software. Intangible assets are recognized at cost and generally amortized on a straight-line basis over their expected useful life. Goodwill and acquired rights to trademarks and names are not amortized but are tested annually for impairment (see note 2, section “Impairment of non-current assets”). The expense for amortization of intangible assets with finite useful lives is recognized in the income statement under that expense category which corresponds to the function of the particular asset in the Group. The following estimated useful lives are generally applied in determining amortization:

 

 

Customer lists

10-15 years

Technology

5-10 years

Software

3-5 years

Other intangible assets

5-7 years

Provisions

Provisions are recognized only where Comet has a present obligation to a third party arising from a past event and the amount of the obligation can be estimated reliably. No provisions are recognized for possible losses that may result from future events.

Provisions are classified as current to the extent that the related cash outflows are expected to occur within one year from the balance sheet date. Conversely, the cash outflows in respect of non-current provisions are expected to occur more than twelve months after the balance sheet date. If the interest effect is material, the cash outflows are discounted.

Post-employment benefits

Comet maintains post-employment benefit plans for its employees which differ according to the local circumstances of the individual Group companies. The benefit plans are financed by contributions to benefit arrangements that are separate legal entities (foundations or insurance companies) or by the accumulation of reserves in the balance sheet of the respective Group company. In the case of defined contribution plans or economically equivalent arrangements, the expenses accrued in the reporting period represent the agreed contributions of the Group company.

For defined benefit plans, the service costs and the present value of the defined benefit obligation are calculated in actuarial valuations by independent experts, using the projected unit credit method. The calculations are updated annually. The surplus or deficit recognized in the balance sheet is equal to the present value of the defined benefit obligation as determined by the actuary, less the fair value of plan assets. Any resulting net surplus is recognized as an asset only to the extent of the potential economic benefit that may be realized from this asset in the future, taking into consideration IFRIC 14. The expense charged to income is the actuarially determined service cost plus the net interest cost. Actuarial gains and losses are recognized in other comprehensive income. They comprise experience adjustments (the effects of differences between the previous actuarial assumptions and the observed outcomes) and the effects of changes in actuarial assumptions (particularly regarding the discount rate and life expectancy).

Length-of-service awards

Comet grants length-of-service awards to its employees after a certain number of years of service, in the form of lump-sum payments that increase in amount with the number of years of employment. Comet calculates the resulting obligation using the projected unit credit method. The calculation is updated annually. Any actuarial gains or losses from the remeasurement are immediately taken to income.

Share-based payments

Part of the variable compensation of the members of the Executive Committee under the short-term incentive plan (STIP), and part of the fixed compensation of the Board of Directors, is paid in stock. In addition, the Executive Committee is granted stock under a long-term incentive plan (LTIP). The expense is recognized at the value of the stock earned, measured at the quoted market price (fair value) at the grant date. The amount accrued for those components of compensation which must be equity-settled (i.e., for which there is no option of cash payment) is recognized directly in equity. For components which the beneficiary can choose to receive in equity or in cash, the value of the option which this choice represents is determined and recognized as an increase in equity, while the rest of the obligation is recorded as a liability.

Treasury stock

Comet purchases treasury stock for share-based compensation of the Executive Committee and Board of Directors. Treasury stock is recognized at acquisition cost and deducted from shareholders’ equity at the time of acquisition. Comet applies the first-in-first-out (FIFO) principle when using treasury stock for share-based compensation programs. In general, treasury stock is not held for more than six years at maximum.

Income tax

The income tax expense for the reporting period is composed of current taxes and deferred taxes.

Current taxes

Current tax liabilities and assets for the current period and prior reporting periods are recognized based on the amount expected to be payable to or refunded by the tax authorities. They are calculated based on the tax regulations and tax rates in effect at the balance sheet date.

Deferred taxes

Deferred taxes are accounted for by the liability method. Under this approach, the income tax effects of temporary differences between the tax bases and the values used in the consolidated financial statements are recorded as non-current liabilities or non-current assets. Deferred taxes are calculated at actual or expected local tax rates. Changes in deferred taxes are included in income tax expense in the income statement, except for deferred taxes in respect of items that are recognized outside profit or loss. These latter deferred taxes are likewise recognized outside profit or loss; according to the underlying accountable event, they are recognized either in other comprehensive income or directly in equity. Deferred tax liabilities are recognized on all taxable temporary differences except for goodwill. Deferred tax assets are recognized for all deductible temporary differences, the carryforward of unused tax credits and any unused tax losses. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carryforward of unused tax credits and unused tax losses can be utilized, except:

  • When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit for the period nor taxable profit or loss.
  • In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, deferred tax assets are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future.
Impairment of non-current assets

The value of property, plant and equipment and other non-current assets, including intangibles, is reviewed whenever it appears possible, as a result of changed circumstances or events, that the assets’ carrying amount represents an overvaluation. In addition, Comet evaluates at year-end whether there are any indications of impairment of non-financial assets. Intangible assets that are in the process of being generated are tested for impairment annually. If the carrying amount exceeds the amount recoverable through use or sale of the asset, the carrying amount is reduced to this recoverable amount and the difference is recorded as an impairment charge in the income statement. The recoverable amount is the higher of realizable value or value in use.

Value in use is determined on the basis of discounted expected future cash flows. Any acquired goodwill and any rights to trademarks or names with an indefinite useful life are not amortized but are reviewed annually at the same date for impairment. This impairment test is based on the results for the fiscal year, the rolling multi-quarter forecast and the rolling multi-year plan.

03 Net sales

03Net sales 

In the following tables, sales revenue by division is analyzed first by region and then by market sector.

Sales split by geographic region

 

 

 

 

 

 

 

 

 

 

 

 

In thousands of CHF

Plasma Control Technologies (PCT)

 

X-Ray Systems (IXS)

 

Industrial X-Ray Modules (IXM)

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

2024

2023

 

2024

2023

 

2024

2023

 

2024

2023

Geographic region

 

 

 

 

 

 

 

 

 

 

 

Europe

10,547

10,390

 

30,027

26,887

 

30,837

35,248

 

71,411

72,525

North America

52,621

55,614

 

13,399

13,957

 

22,300

23,165

 

88,319

92,736

Asia

183,904

126,976

 

66,351

68,961

 

27,665

28,027

 

277,920

223,965

Rest of world

319

176

 

6,059

7,021

 

1,333

1,031

 

7,711

8,228

Total net sales

247,391

193,155

 

115,836

116,826

 

82,135

87,472

 

445,362

397,453

Sales split by market sector

 

 

 

 

In thousands of CHF

2024

 

2023

PCT

 

 

 

Semiconductor

226,719

 

175,077

Others

20,672

 

18,078

Total PCT

247,391

 

193,155

 

 

 

 

IXS

 

 

 

Electronics

47,702

 

51,472

Automotive

29,231

 

32,402

Science & new materials

22,035

 

19,124

Aerospace

10,096

 

10,476

Others

6,772

 

3,352

Total IXS

115,836

 

116,826

 

 

 

 

IXM

 

 

 

Non-destructive testing

56,308

 

57,126

Security

11,673

 

12,890

Others

14,154

 

17,455

Total IXM

82,135

 

87,471

 

 

 

 

 

 

 

 

Total net sales

445,362

 

397,453

Unsatisfied performance obligations

The unsatisfied or partly unsatisfied performance obligations (so-called order backlog) as of December 31, 2024, amounted to CHF 141 million (prior year: CHF 131 million). Comet will realize this revenue as soon as the performance obligations have been fulfilled and the customers have acquired control of the products or services. This is expected generally to be the case within the next 12 months.

Contract balances

Opening and closing balances of receivables and contract assets are reported in note 12. Contract liabilities from contracts with customers are presented on the face of the balance sheet. The contract assets consisted mainly of the rights to consideration for product deliveries and services of the X-Ray Systems division that were completed but not yet billed at the balance sheet date. The contract liabilities consisted of prepayments received from customers. The revenue recognized in 2024 from contract liabilities existing at the beginning of the reporting period amounted to CHF 12.8 million (prior year: CHF 10.5 million). Material changes in contract balances result from the receipt of customer payments and the invoicing of satisfied performance obligations.

04 Segment reporting

04Segment reporting

The Group is managed on the basis of the following three operating divisions, which are delineated based on their products and services. For financial reporting purposes the divisions are also referred to here as “operating segments” or “segments”.

  • The Plasma Control Technologies (PCT) division develops, manufactures and markets vacuum capacitors, radio frequency (RF) generators and RF impedance matching networks for the high-precision control of plasma processes required, for instance, in the production of memory chips and flat panel displays.
  • The X-Ray Systems (IXS) division develops, manufactures and markets x-ray systems, and provides related services, for non-destructive examination using x-ray and microfocus technology and computed tomography.
  • The Industrial X-Ray Modules (IXM) division develops, manufactures and markets highly compact x-ray sources and portable x-ray modules for non-destructive examination, steel metrology, and security inspection.

Segment operating income represents all revenues and expenses attributable to a particular division. The only revenues and expenses not allocated to the segments are those of Comet Holding AG, as well as financing income, financing expenses and income taxes. These unallocated expenses and revenues are reported in the “Corporate” column. Transactions between the segments are invoiced at prices also charged to third parties.

The segment assets and liabilities represent all operating items. The following assets and liabilities are not allocated to operating segments: the assets and liabilities of Comet Holding AG, all cash and cash equivalents, all debt and all income tax assets and liabilities. These unallocated assets and liabilities are reported in the “Corporate” column.

04.1Operating segments

Fiscal year 2024

 

 

 

 

 

 

 

In thousands of CHF

Plasma Control Technologies (PCT)

X-Ray Systems (IXS)

Industrial X-Ray Modules (IXM)

Elimination of intersegment activity

Corporate

Consolidated

Net sales

 

 

 

 

 

 

External net sales

247,391

115,836

82,135

445,362

Intersegment sales

52

12,436

(12,488)

Total net sales

247,391

115,888

94,571

(12,488)

445,362

Segment operating income

40,225

(8,854)

9,474

(138)

40,708

Unallocated costs

(2,478)

(2,478)

Operating income

40,225

(8,854)

9,474

(138)

(2,478)

38,229

Interest income

 

 

 

 

 

2,587

Interest (expenses)

 

 

 

 

 

(2,084)

Other financial expenses

 

 

 

 

 

(258)

Net losses on derivative fair value

 

 

 

 

 

(1,412)

Net gains on foreign exchange

 

 

 

 

 

3,173

Income before tax

 

 

 

 

 

40,235

Income tax

 

 

 

 

 

(5,116)

Net income

 

 

 

 

 

35,119

 

 

 

 

 

 

 

EBITDA

52,734

(4,306)

14,567

(138)

(2,478)

60,380

EBITDA in % of net sales

21.3%

(3.7%)

15.4%

 

 

13.6%

 

 

 

 

 

 

 

Assets and liabilities at Dec. 31, 2024

 

 

 

 

 

 

Segment assets

200,481

98,958

92,220

139,510

531,169

Segment liabilities

(65,956)

(48,355)

(21,830)

(69,591)

(205,731)

Net assets

134,525

50,603

70,390

69,919

325,438

Other segment information

 

 

 

 

 

 

Additions to right-of-use asset

4,630

2,311

1,544

8,484

Additions to property, plant and equipment & intangible assets

6,502

2,475

3,803

12,779

Depreciation, amortization and impairment

12,510

4,548

5,093

22,150

Change in provisions

(450)

45

(42)

(447)

Other non-cash expense or (income)

(1,724)

(26)

400

(28)

511

(867)

Number of employees at year-end

942

506

362

1,810

Fiscal year 2023

 

 

 

 

 

 

 

In thousands of CHF

Plasma Control Technologies (PCT)

X-Ray Systems (IXS)

Industrial X-Ray Modules (IXM)

Elimination of intersegment activity

Corporate

Consolidated

Net sales

 

 

 

 

 

 

External net sales

193,155

116,826

87,472

397,453

Intersegment sales

134

12,787

(12,921)

Total net sales

193,155

116,961

100,258

(12,921)

397,453

Segment operating income

7,192

671

19,580

761

28,204

Unallocated costs

(3,226)

(3,226)

Operating income

7,192

671

19,580

761

(3,226)

24,978

Interest income

 

 

 

 

 

1,632

Interest (expenses)

 

 

 

 

 

(2,214)

Other financial expenses

 

 

 

 

 

(178)

Net gains on derivative fair value

 

 

 

 

 

1,791

Net losses on foreign exchange

 

 

 

 

 

(7,014)

Income before tax

 

 

 

 

 

18,994

Income tax

 

 

 

 

 

(3,606)

Net income

 

 

 

 

 

15,388

 

 

 

 

 

 

 

EBITDA

18,719

4,923

23,819

761

(3,226)

44,996

EBITDA in % of net sales

9.7%

4.2%

23.8%

 

 

11.3%

 

 

 

 

 

 

 

Assets and liabilities at Dec. 31, 2023

 

 

 

 

 

 

Segment assets

181,421

95,340

88,105

108,713

473,578

Segment liabilities

(52,386)

(44,018)

(14,854)

(66,228)

(177,486)

Net assets

129,035

51,321

73,252

42,484

296,092

Other segment information

 

 

 

 

 

 

Additions to right-of-use asset

4,044

1,010

164

5,217

Additions to property, plant and equipment & intangible assets

19,224

3,282

3,907

26,413

Depreciation, amortization and impairment

11,527

4,252

4,239

20,018

Change in provisions

(443)

(894)

172

(1,165)

Other non-cash expense or (income)

(74)

463

(44)

104

1,945

2,394

Number of employees at year-end

787

463

327

1,577

Reconciliation of aggregate segment assets and liabilities to consolidated results

 

 

 

 

In thousands of CHF

2024

 

2023

Operating segments' assets

391,657

 

364,866

Cash and cash equivalents

113,744

 

86,707

Other assets

2,098

 

2,883

Tax receivables

1,776

 

3,645

Deferred tax assets

21,517

 

14,951

Comet Holding AG's receivables from third parties

379

 

528

Total assets

531,169

 

473,578

 

 

 

 

Operating segments' liabilities

(136,141)

 

(111,258)

Non-current debt

(59,868)

 

(59,767)

Derivatives used for foreign exchange hedging

(1,001)

 

Tax payables

(6,823)

 

(4,661)

Deferred tax liabilities

(754)

 

(533)

Comet Holding AG's payables to third parties

(1,143)

 

(1,267)

Total liabilities

(205,731)

 

(177,486)

04.2Geographic information

Comet markets its products and services throughout the world and has its own companies in Switzerland, Germany, Denmark, the USA, China, Japan, South Korea, Malaysia, Canada and Taiwan. Net sales are allocated to countries on the basis of customer location.

Net sales by region

 

 

 

 

In thousands of CHF

2024

 

2023

Switzerland

4,497

 

5,007

Germany

32,147

 

34,324

Rest of Europe

34,768

 

33,194

Total, Europe

71,411

 

72,525

Total, North America

88,319

 

92,736

China

120,152

 

108,040

Japan

18,228

 

20,626

Malaysia

56,319

 

28,002

Rest of Asia

83,222

 

67,297

Total, Asia

277,920

 

223,965

Rest of world

7,711

 

8,228

Total

445,362

 

397,453

Property, plant and equipment, right-of-use assets and intangible assets are allocated to the regions based on the country entities’ location.

Property, plant and equipment, right-of-use assets and intangible assets by region

 

 

 

 

In thousands of CHF

2024

 

2023

Switzerland

107,613

 

108,935

Germany

35,765

 

37,388

North America

36,893

 

37,562

Rest of world

10,941

 

7,469

Total

191,211

 

191,353

04.3Sales with key accounts

In the year under review, the Plasma Control Technologies division recorded sales of CHF 106 million with its largest customer, which represented 23.8% of Group sales (prior year: CHF 71 million and 17.7%, respectively).

05 Other operating income

05Other operating income

 

 

 

 

In thousands of CHF

2024

 

2023

Income from the development of prototypes

4,121

 

4,610

Customers' contributions to development projects

268

 

28

Government grants

1,329

 

923

Miscellaneous income

990

 

2,282

Total other operating income

6,708

 

7,843

06 Staff costs and staff count

06Staff costs and staff count

06.1Staff costs

 

 

 

 

In thousands of CHF

2024

 

2023

Wages and salaries

145,569

 

132,831

Employee benefits

25,035

 

22,728

Total staff costs

170,604

 

155,559

06.2Staff count

 

 

 

 

 

2024

 

2023

Number of employees at year-end

1,810

 

1,577

Average full-time equivalents during the year

1,610

 

1,548

07 Development expenses

07Development expenses 

Development expenses comprise the costs of new-product development, improvement of existing products, and process engineering. Comet’s development activities focus on the fields of vacuum technology, high voltage engineering and material science, and on the further development of the divisions’ core products. In view of the uncertainty of future economic benefits that may flow from development projects, Comet as a rule does not capitalize development costs but charges them directly to the income statement.

08 Amortization, depreciation and impairment

08Amortization, depreciation and impairment

 

 

 

 

In thousands of CHF

2024

 

2023

Amortization of intangible assets

3,724

 

2,392

Depreciation of right-of-use assets

4,902

 

5,159

Depreciation of property, plant and equipment

13,478

 

12,467

Total amortization and depreciation

22,104

 

20,018

 

 

 

 

Impairment of property, plant and equipment

46

 

Total impairment

46

 

 

 

 

 

Total amortization, depreciation and impairment

22,150

 

20,018

09 Financing income and expenses

09Financing income and expenses

 

 

 

 

In thousands of CHF

2024

 

2023

Interest income from leases

47

 

54

Other interest income

2,540

 

1,578

Total interest income

2,587

 

1,632

 

 

 

 

Interest expense for bond

(880)

 

(879)

Interest expense for leases

(1,177)

 

(1,302)

Other interest expense

(27)

 

(33)

Total interest expenses

(2,084)

 

(2,214)

Net interest income or (expense)

503

 

(582)

 

 

 

 

Other financial expenses

(258)

 

(178)

 

 

 

 

Gains on derivative fair value

617

 

1,952

Losses on derivative fair value

(2,029)

 

(161)

Net (losses) or gains on derivative fair value

(1,412)

 

1,791

 

 

 

 

Gains on foreign currency translation

5,572

 

3,264

Losses on foreign currency translation

(2,399)

 

(10,279)

Net gains or (losses) on foreign currency translation

3,173

 

(7,014)

 

 

 

 

Total net financing income or (expense)

2,006

 

(5,983)

Foreign currency translation gains and losses resulted largely from items denominated in US dollars and euros.

10 Income tax

10Income tax

10.1Current and deferred income tax expense

 

 

 

 

In thousands of CHF

2024

 

2023

Current income tax expense in respect of the current year

11,205

 

3,106

Current income tax (credit) in respect of prior years

(1,479)

 

(1,568)

Deferred income tax (credit)/expense

(4,610)

 

2,069

Total income tax expense

5,116

 

3,606

10.2Reconciliation of tax expense

 

 

 

 

In thousands of CHF

2024

 

2023

Income before tax

40,235

 

18,994

Expected income tax at base tax rate of 20.2% (prior year: 24.6%)

8,127

 

4,676

Effect of tax relief from Comet Technologies Malaysia Sdn. Bhd.

(1,508)

 

(594)

Effect of non-tax-deductible expenses

243

 

362

Effect of change in tax rate on deferred income tax

228

 

551

Recognition and offset of tax loss carry-forwards not recognized in prior years

(94)

 

35

Effect of non-recognition of tax loss carryforwards

 

(8)

Effect of credits for R&D and domestic manufacturing

(754)

 

(829)

Effect from tax-exempt income

(272)

 

Effect of income tax from other periods

(1,480)

 

(1,568)

Effect of non-refundable withholding tax

650

 

713

Other effects

(24)

 

268

Income tax reported in the income statement

5,116

 

3,606

Effective income tax rate in % of income before tax

12.7%

 

19.0%

The expected income tax rate represents the Group’s weighted average tax rate and takes into account the local income tax rates of the individual Group companies. The decrease of 4.4% in the base tax rate compared to the prior year resulted mainly from a changed profit-and-loss mix between low-tax and high-tax countries.

10.3Deferred tax assets and liabilities

Deferred tax assets and liabilities can be analyzed as follows: 

 

 

 

 

 

 

In thousands of CHF

Assets

 

Liabilities

 

 

 

 

 

 

 

2024

2023

 

2024

2023

Financial instruments

82

45

 

(41)

(110)

Receivables

1,007

647

 

(899)

(351)

Inventories

5,904

4,443

 

(327)

(361)

Property, plant and equipment

1,220

522

 

(29)

(268)

Right-of-use assets

 

(7,031)

(7,300)

Intangible assets

50

132

 

(1,239)

(1,427)

Employee benefit plan assets

59

 

Trade payables and other liabilities

796

560

 

(621)

(29)

Lease liabilities

9,439

9,482

 

Accrued expenses

7,039

5,967

 

(5)

Provisions

738

778

 

Employee benefit plan liabilities

1,533

718

 

(110)

(98)

Tax loss carryforwards, and tax credits for R&D and domestic manufacturing

3,257

1,009

 

Total gross deferred tax of Group companies

31,065

24,362

 

(10,302)

(9,944)

Netting of deferred tax by Group companies

(9,548)

(9,411)

 

9,548

9,411

Amounts in the consolidated balance sheet

21,517

14,951

 

(754)

(533)

The deferred tax assets and liabilities were measured at local tax rates, ranging from 13.1% to 36.6%. No deferred tax liabilities were established for temporary differences of CHF 215.1 million (prior year: CHF 187.6 million) in respect of the outside basis differences on subsidiaries. Distributions of retained earnings by subsidiaries are not expected to have an effect on income taxes, except for future distributions from China, Korea, Taiwan and Canada. There were no tax provisions for non-refundable withholding taxes on future distributions of foreign subsidiaries to Comet Holding AG. Distributions by Comet Holding AG to its shareholders have no effect on the reported or future income taxes.

10.4Movement in deferred tax assets and liabilities

 

 

 

 

In thousands of CHF

2024

 

2023

Net asset at January 1

14,418

 

17,264

Origination and reversal of temporary differences recognized in the income statement

2,249

 

(2,245)

Recognition of deferred tax assets on loss carryforwards and R&D credits

2,243

 

354

Use of tax loss carryforwards

 

(178)

Deferred tax credit in the income statement

4,610

 

(2,069)

Origination and reversal of temporary differences recognized in other comprehensive income

892

 

827

Foreign currency translation differences

843

 

(1,604)

Net asset at December 31

20,763

 

14,418

Reported as assets

21,517

 

14,951

Reported as liabilities

(754)

 

(533)

10.5Tax loss carryforwards

Deferred tax assets, including tax loss carryforwards and expected tax credits, are recognized only if it is likely that future taxable profits will be available to which these deferred tax assets can be applied. Temporary differences for which no tax assets were recognized were nil (prior year: nil).

At the balance sheet date of December 31, 2024, tax loss carryforwards stood at CHF 10.9 million (prior year: CHF 3.8 million). Including tax credits for R&D and domestic manufacturing, the resulting deferred tax assets were CHF 3.2 million (prior year: CHF 1.0 million).

In the fiscal year, there were unrecognized deferred tax assets on tax loss carryforwards of CHF 0.1 million (prior year: 0.0 million). These loss-carryforwards can be carried forward five years.

11 Earnings per share

11Earnings per share

11.1Basic earnings per share

Basic earnings per share are calculated by dividing net income attributable to ordinary shareholders of Comet Holding AG by the weighted average number of ordinary shares outstanding during the year, excluding ordinary shares purchased by the Group and held as treasury stock.

 

 

 

 

 

2024

 

2023

Weighted average number of shares outstanding

7,771,109

 

7,773,436

Treasury stock held as of year-end

(4,588)

 

(2,000)

Weighted average number of shares outstanding used to determine basic earnings per share

7,766,521

 

7,771,436

Net income used to determine basic earnings per share in thousands of CHF

35,119

 

15,388

Net income per share in CHF, basic

4.52

 

1.98

11.2Diluted earnings per share

Diluted earnings per share are calculated by dividing net income attributable to ordinary shareholders of Comet Holding AG by the weighted average number of ordinary shares outstanding during the year, excluding ordinary shares purchased by the Group and held as treasury shares, plus any weighted average number of ordinary shares that would be issued on the conversion of all dilutive outstanding equity instruments into ordinary shares.

 

 

 

 

 

2024

 

2023

Weighted average number of shares outstanding

7,771,109

 

7,773,436

Treasury stock held as of year-end

(4,588)

 

(2,000)

Weighted average number of shares outstanding used to determine diluted earnings per share

7,766,521

 

7,771,436

Net income used to determine diluted earnings per share in thousands of CHF

35,119

 

15,388

Net income per share in CHF, diluted

4.52

 

1.98

There have been no other transactions involving ordinary shares or potential ordinary shares between the reporting date and the date of completion of these financial statements.

12 Trade and other receivables

12Trade and other receivables 

 

 

 

 

In thousands of CHF

2024

 

2023

Trade receivables, gross

78,182

 

54,321

Impairment of trade receivables

(835)

 

(762)

Trade receivables, net

77,347

 

53,559

Refundable sales taxes and value-added taxes

2,714

 

1,867

Prepayments to suppliers

3,341

 

3,944

Contract assets

1,505

 

1,899

Sundry receivables

2,630

 

3,543

Total other receivables

10,190

 

11,253

Total trade and other receivables

87,537

 

64,812

The allowance account for impairment of trade receivables showed the following movement:

 

 

 

 

In thousands of CHF

2024

 

2023

January 1

762

 

920

Used

(70)

 

(180)

Added

673

 

381

Released

(560)

 

(293)

Foreign currency translation differences

30

 

(66)

December 31

835

 

762

The impairment test of trade receivables performed identified no material change in the risk of default in the year under review.

At the balance sheet date, full impairment was recognized on CHF 0.5 million (prior year: CHF 0.5 million) of trade receivables. Within the item “total other receivables”, there were no amounts past due or written down. The Group does not hold security against trade and other receivables.

The aging schedule for past-due trade receivables on which impairment has been recognized is summarized in the table below:

Fiscal year 2024

 

 

 

 

 

In thousands of CHF

Expected loss rate

Gross carrying amount

Expected credit loss

Net carrying amount

Trade receivables

 

78,182

835

77,347

Not past due

0.3%

74,654

261

74,392

Over 30 days past due, impairment recognized

0.5%

1,445

7

1,439

Over 60 days past due, impairment recognized

0.8%

593

4

589

Over 90 days past due, impairment recognized

1.3%

394

5

389

Over 120 days past due, impairment recognized

1.8%

148

3

145

Over 150 days past due, impairment recognized 1

59.0%

948

555

393

1 Individual impairment allowances included.

Fiscal year 2023

 

 

 

 

 

In thousands of CHF

Expected loss rate

Gross carrying amount

Expected credit loss

Net carrying amount

Trade receivables

 

54,321

762

53,559

Not past due

0.5%

48,994

244

48,750

Over 30 days past due, impairment recognized

0.5%

3,311

15

3,296

Over 60 days past due, impairment recognized

0.8%

1,201

9

1,192

Over 90 days past due, impairment recognized

1.3%

290

3

287

Over 120 days past due, impairment recognized

2.5%

19

1

18

Over 150 days past due, impairment recognized 1

96.7%

507

490

17

1 Individual impairment allowances included.

13 Other assets (including financial assets) and financial liabilities

13Other assets (including financial assets) and financial liabilities

13.1Other assets, including financial assets 

 

 

 

 

In thousands of CHF

2024

 

2023

Other assets at fair value through profit or loss

 

 

 

Derivatives used for foreign exchange hedging

18

 

373

Total other assets at fair value through profit or loss

18

 

373

 

 

 

 

Other assets at amortized cost

 

 

 

Lease receivable

1,946

 

2,251

Other non-current financial assets

134

 

293

Total other assets at amortized cost

2,080

 

2,543

 

 

 

 

Total other assets

2,098

 

2,916

Total current

329

 

677

Total non-current

1,769

 

2,239

13.2Other financial liabilities

 

 

 

 

In thousands of CHF

2024

 

2023

Other financial liabilities at fair value through profit or loss

 

 

 

Derivatives used for foreign exchange hedging

1,001

 

Total other financial liabilities at fair value through profit or loss

1,001

 

 

 

 

 

Total other financial liabilities

1,001

 

Total current

1,001

 

13.3Derivative financial instruments

At the balance sheet date, open positions in forward exchange contracts were as follows:

 

 

 

 

In thousands of CHF

2024

 

2023

USD foreign exchange forward contracts

 

 

 

Contract amounts

21,242

 

7,425

Positive fair values

 

260

Negative fair values

(938)

 

 

 

 

 

JPY foreign exchange forward contracts

 

 

 

Contract amounts

2,240

 

Positive fair values

18

 

Negative fair values

(17)

 

 

 

 

 

CNY foreign exchange forward contracts

 

 

 

Contract amounts

4,106

 

5,135

Positive fair values

 

113

Negative fair values

(46)

 

The gains and losses from foreign exchange forward contracts are recognized as financing income or expense (see note 9). The contract amounts shown represent the notional principal amounts of the foreign exchange forward contracts. Consistent with the nature of the Group’s activities, the foreign exchange forward contracts have maturities of less than one year; most are due within six months.

13.4Other assets at amortized cost

Lease receivables

Lease receivables showed the following movement in 2024:

Lease receivable movement

 

 

 

Lease receivable movement

2024

2023

in thousands of CHF

Lease receivable

Lease receivable

 

 

 

January 1

2,251

2,548

Accretion of interest

47

54

Lease payments received

(352)

(352)

December 31

1,946

2,251

The maturity analysis of the lease receivable is as follows:

Lease receivable maturity analysis

 

 

 

 

 

Lease receivable maturity analysis

 

 

 

 

In thousands of CHF

2025

2026 - 2029

After 2029

Total lease receivable

Maturity analysis as of December 31, 2024

 

 

 

 

Undiscounted lease payments

352

1,407

323

2,083

Interest portion

(41)

(92)

(4)

(137)

Lease receivable

311

1,316

319

1,946

 

 

 

 

 

In thousands of CHF

2024

2025 - 2028

After 2028

Total lease receivable

Maturity analysis as of December 31, 2023

 

 

 

 

Undiscounted lease payments

352

1,407

676

2,435

Interest portion

(47)

(120)

(16)

(184)

Lease receivable

304

1,287

660

2,251

14 Inventories

14Inventories

 

 

 

 

In thousands of CHF

2024

 

2023

Raw materials and semi-finished products

65,459

 

66,028

Work in process

13,469

 

9,929

Finished goods

27,870

 

27,473

Total inventories

106,798

 

103,430

The inventory amounts reflect any necessary individual write-downs for items with a market value below manufacturing cost. The expense recognized for inventory write-downs was CHF 6.4 million (prior year: CHF 1.8 million).

15 Prepaid expenses

15Prepaid expenses

 

 

 

 

In thousands of CHF

2024

 

2023

Contract costs

554

 

377

Other prepaid expenses

5,934

 

5,386

Total prepaid expenses

6,488

 

5,763

The contract costs represent capitalized sales commissions for agent activities (incremental costs directly attributable to obtaining a contract). In the fiscal year, sales commissions of CHF 1.5 million were recognized in the income statement (prior year: CHF 1.2 million).

The other prepaid expenses consisted largely of prepayments made for the subsequent fiscal year.

16 Property, plant and equipment

16Property, plant and equipment

Fiscal year 2024

 

 

 

 

 

 

In thousands of CHF

Real estate

Plant and equipment

Other tangible assets

Assets under construction

Total property, plant and equipment

Cost

 

 

 

 

 

January 1, 2024

98,759

128,933

20,161

8,406

256,260

Additions

5

3,352

2,243

4,727

10,327

Commissioning of assets under construction

1,682

4,032

246

(5,960)

Disposals

(1,998)

(1,081)

(39)

(3,118)

Foreign currency translation differences

2,428

865

29

3,322

December 31, 2024

100,446

136,747

22,434

7,164

266,791

 

 

 

 

 

 

Accumulated depreciation and impairment

 

 

 

 

 

January 1, 2024

38,309

74,625

14,928

127,862

Additions

2,675

8,385

2,418

13,478

Impairment

46

46

Disposals

(1,364)

(649)

(2,014)

Foreign currency translation differences

963

742

1,705

December 31, 2024

40,983

82,655

17,438

141,077

 

 

 

 

 

 

Carrying amount

 

 

 

 

 

January 1, 2024

60,450

54,308

5,233

8,406

128,398

December 31, 2024

59,463

54,092

4,996

7,164

125,715

Fiscal year 2023

 

 

 

 

 

 

In thousands of CHF

Real estate

Plant and equipment

Other tangible assets

Assets under construction

Total property, plant and equipment

Cost

 

 

 

 

 

January 1, 2023

98,162

105,704

19,403

16,423

239,693

Additions

327

15,059

1,843

7,221

24,450

Commissioning of assets under construction

270

13,726

903

(14,899)

Disposals

(2,171)

(706)

(2,877)

Foreign currency translation differences

(3,385)

(1,282)

(339)

(5,006)

December 31, 2023

98,759

128,933

20,161

8,406

256,260

 

 

 

 

 

 

Accumulated depreciation and impairment

 

 

 

 

 

January 1, 2023

35,735

70,027

13,963

119,725

Additions

2,574

7,419

2,474

12,467

Disposals

(1,332)

(589)

(1,921)

Foreign currency translation differences

(1,489)

(920)

(2,409)

December 31, 2023

38,309

74,625

14,928

127,862

 

 

 

 

 

 

Carrying amount

 

 

 

 

 

January 1, 2023

62,427

35,677

5,440

16,423

119,968

December 31, 2023

60,450

54,308

5,233

8,406

128,398

Assets pledged or assigned as collateral for Group obligations

At December 31, 2024, and December 31, 2023, all real estate liens (mortgage notes in the amount of CHF 30.0 million) were held within the Group.

17 Right-of-use assets and lease liabilities

17Right-of-use assets and lease liabilities

The rights of use and liabilities arising from leases showed the following movement:

Fiscal year 2024

 

 

 

 

 

 

Fiscal year 2024

 

Right-of-use assets

Lease liabilities

In thousands of CHF

Buildings

Equipment

Other assets

Total

January 1, 2024

26,043

357

(0)

26,400

35,747

Additions

7,933

538

14

8,484

8,484

Disposals

(925)

(25)

(3)

(952)

(2,753)

Depreciation, amortization and impairment

(4,602)

(294)

(6)

(4,902)

Accretion of interest

1,177

Repayment of lease liabilities

(7,124)

Lease incentive 1

1,604

Payment of interest on lease liabilities

(1,177)

Foreign currency translation differences

1,314

(7)

1,307

1,785

December 31, 2024

29,764

569

5

30,337

37,744

Reported on the face of the balance sheet as:

 

 

 

 

 

Current lease liability

 

 

 

 

5,405

Non-current lease liability

 

 

 

 

32,339

1 The landlord agreed to contribute a total of CHF 7.6 million toward the cost of performing the tenant improvements in preparation for Comet’s occupancy of the premises. In the year under review, the amount of the "tenant improvement allowance" was CHF 1.6 million.

The non-current lease liabilities largely have remaining maturities of two to ten years. The expected future lease payments are presented in note 28.2.3.

The additions to right-of-use assets and lease liabilities were non-cash items and are thus not included in cash flow from investing activities.

Fiscal year 2023

 

 

 

 

 

 

Fiscal year 2023

 

Right-of-use assets

Lease liabilities

In thousands of CHF

Buildings

Equipment

Other assets

Total

January 1, 2023

31,912

490

(0)

32,401

38,197

Additions

4,995

212

10

5,217

5,217

Disposals

(3,640)

(12)

(1)

(3,653)

(3,922)

Depreciation, amortization and impairment

(4,841)

(308)

(9)

(5,159)

Accretion of interest

1,302

Repayment of lease liabilities

(3,949)

Lease incentive 1

3,105

Payment of interest on lease liabilities

(1,302)

Foreign currency translation differences

(2,382)

(25)

(2,407)

(2,901)

December 31, 2023

26,043

357

(0)

26,400

35,747

Reported on the face of the balance sheet as:

 

 

 

 

 

Current lease liability

 

 

 

 

3,528

Non-current lease liability

 

 

 

 

32,219

1 The landlord agreed to contribute a total of CHF 7.7 million toward the cost of performing the tenant improvements in preparation for Comet’s occupancy of the premises. In fiscal year 2023, the amount of the "tenant improvement allowance" was CHF 3.1 million.

The composition of the lease expenses in fiscal 2024 and 2023 is shown below:

 

 

 

 

In thousands of CHF

2024

 

2023

Depreciation, amortization and impairment

4,902

 

5,159

Interest expenses

1,177

 

1,302

Expenses for short-term leases and other items

311

 

1,207

Expense for low-value leases

27

 

21

Expense for variable lease payments not included in the measurement of lease liabilities

5

 

1

Total lease expenses

6,422

 

7,690

Comet has lease agreements containing extension and termination options (see note 2.5). At December 31, 2024, all options either deemed highly likely to be exercised or not to be exercised were taken into account in the valuation of the lease liabilities.

The undiscounted payments of options that were not exercised as at December 31, 2024, amounted to CHF 19.2 million due within the subsequent five years (prior year: CHF 20.3 million) and to CHF 18.5 million for option periods of more than five years (prior year: CHF 15.4 million).

18 Intangible assets

18Intangible assets 

Fiscal year 2024

 

 

 

 

 

 

 

In thousands of CHF

Goodwill and trade­marks

Customer lists

Technology

Software

Other intangible assets

Total intangible assets

Cost

 

 

 

 

 

 

January 1, 2024

28,960

18,996

4,522

28,637

161

81,275

Additions

2,452

2,452

Disposals

(12,066)

(1,326)

(13,392)

Foreign currency translation differences

172

450

(1)

167

789

December 31, 2024

29,132

7,380

4,521

29,931

161

71,124

 

 

 

 

 

 

 

Accumulated amortization

 

 

 

 

 

 

January 1, 2024

2

17,875

2,818

23,888

137

44,720

Additions

176

250

3,278

20

3,724

Disposals

(12,066)

(1,084)

(13,150)

Foreign currency translation differences

456

8

207

671

December 31, 2024

2

6,441

3,076

26,289

157

35,965

 

 

 

 

 

 

 

Carrying amount

 

 

 

 

 

 

January 1, 2024

28,957

1,121

1,704

4,749

24

36,555

December 31, 2024

29,130

939

1,445

3,642

4

35,159

The categories “goodwill and trademarks”, “customer lists” and “technology” were capitalized in connection with business combinations.

In 2024, Comet reviewed all existing customer lists and concluded that fully amortized customer list of Comet Yxlon GmbH (CHF 10.4 million) and of Comet Technologies Japan KK (CHF 1.6 million) should be netted off.

Fiscal year 2023

 

 

 

 

 

 

 

In thousands of CHF

Goodwill and trade­marks

Customer lists

Technology

Software

Other intangible assets

Total intangible assets

Cost

 

 

 

 

 

 

January 1, 2023

30,450

20,421

4,817

27,669

285

83,641

Additions

1,963

1,963

Reclassifications

14

(14)

Disposals

(413)

(107)

(520)

Foreign currency translation differences

(1,490)

(1,425)

(295)

(596)

(3)

(3,809)

December 31, 2023

28,960

18,996

4,522

28,637

161

81,275

 

 

 

 

 

 

 

Accumulated amortization

 

 

 

 

 

 

January 1, 2023

2

19,024

2,664

22,954

93

44,737

Additions

186

313

1,848

45

2,392

Disposals

(401)

(401)

Foreign currency translation differences

(1,335)

(159)

(513)

(1)

(2,008)

December 31, 2023

2

17,875

2,818

23,888

137

44,720

 

 

 

 

 

 

 

Carrying amount

 

 

 

 

 

 

January 1, 2023

30,447

1,397

2,153

4,715

192

38,904

December 31, 2023

28,957

1,121

1,704

4,749

24

36,555

19 Impairment test of goodwill and intangible assets with indefinite useful lives

19Impairment test of goodwill and intangible assets with indefinite useful lives

The impairment test for goodwill and other intangible assets with indefinite useful lives was performed as at September 30, 2024. For the purpose of the impairment test, the assets to be tested were allocated to and measured as the following two cash-generating units, at the level of the IXS division and (within the IXM division) at the level of the IXT business unit:

  • X-Ray Systems (IXS), as the relevant cash-generating unit for all activities of the historically acquired Yxlon group and for the FeinFocus product group, with the exception of the generator business;
  • Industrial X-Ray Technology (IXT), for the generator business acquired as part of the acquisition of Yxlon.

The impairment test is based on the value in use method. The recoverable amount is determined from the present value of the future cash flows (DCF valuation). The calculations are based on the Board-approved rolling forecast current at the time of the impairment test, and on the Board-approved rolling medium-term plan for 2025 to 2027. Using experience-based estimates, the amounts in the forecast and in the medium-term plan are based on growth projections for net sales, operating income and other parameters, taking into consideration the estimated market trends in the various regions. Cash flows beyond the forecast period are extrapolated using an assumed growth rate of 1.5%, which is within the expected range of market growth. The assumptions applied in determining value in use correspond to the expected long-term average growth rate of the X-Ray Systems division’s operating business and of the generator business of Industrial X-Ray Modules. Input variables with a critical impact on the outcome of the impairment test are the assumed rates of sales growth and the projected trend in operating income.

Carrying amount of the assets tested

 

 

 

 

 

 

 

 

 

In thousands of CHF

X-Ray Systems (IXS) CGU

 

Industrial X-Ray Technology (IXT) CGU

 

Total

 

 

 

 

 

 

 

 

 

 

2024

2023

 

2024

2023

 

2024

2023

Goodwill

20,377

20,226

 

6,873

6,873

 

27,250

27,099

Trademarks (Yxlon)

1,880

1,858

 

 

1,880

1,858

Total carrying amount

22,256

22,084

 

6,873

6,873

 

29,130

28,957

Assumptions applied in the valuation model

 

 

 

 

 

 

 

 

 

X-Ray Systems (IXS) CGU

 

Industrial X-Ray Technology (IXT) CGU

 

 

 

 

 

 

 

 

 

2024

 

2023

 

2024

 

2023

Discount rate (WACC) before tax

8.8%

 

8.7%

 

9.0%

 

9.9%

Growth rate of terminal value

1.5%

 

1.5%

 

1.5%

 

1.5%

Sensitivities to the assumptions applied in the valuation model

The measurement of the values in use of the X-Ray Systems CGU (IXS) and the Industrial X-Ray Technology CGU (IXT) is sensitive to the following assumptions in the planning period (2025 to 2027):

  • Growth assumptions: Sales revenue is projected by product group and market segment. Based on the fiscal year 2024 as the starting point, the average annual rate of sales growth for planning period 2025 to 2027 is assumed to be 17.4% for IXS (prior year: 13.3%) and 13.6% for IXT (prior year: 12.9%).
  • Gross margins: Gross margins in the medium term are expected to average approximately 43.8% for IXS (prior year: 39.9%) and 50.7% for IXT (prior year: 51.2%). Target achievement also depends in part on the trend in the purchasing prices of materials.
  • Foreign exchange rates: The movement in exchange rates between the Swiss franc and the euro and US dollar has an effect on company value. The forecasts are based on September 2024 exchange rates.
  • Discount rate (WACC): The capital costs were determined based on borrowing costs (before tax) and on the long-term risk-free rate, a small-cap premium, and a market risk premium weighted by a Comet-specific beta factor.

No impairment was recognized in the year under review and Comet believes that, with a realistic change in the material assumptions, the recoverable amount would not fall below the carrying amount.

20 Debt

20Debt

Bond

Comet Holding AG issued a bond on April 20, 2021, in the amount of CHF 60 million. The bond was issued at par. Its term is five years and it matures on April 20, 2026. The fixed coupon rate over the term is 1.30%, payable annually on April 20. The bond is listed on the SIX Swiss Exchange (Swiss security number 110 109 656, ticker symbol COT21).

Credit facilities

In April 2023, Comet arranged a CHF 60 million committed, unsecured, multi-currency, syndicated revolving credit facility. This credit facility has a maturity of five years with an option to increase the amount by CHF 40 million.

The credit facility is tied to customary covenants and is subject to a financial covenant that requires the Comet Group not to exceed a maximum leverage ratio of 3:1. During fiscal year 2024, the Company was in compliance with these covenants. As of December 31, 2024, there were no outstanding borrowings under the facility.

The Comet Group also has access to a total of CHF 35.0 million (prior year: CHF 34.8 million) in uncommitted credit facilities to cover working capital requirements and the issuance of guarantees, of which CHF 5.5 million was utilized as of December 31, 2024 (prior year: CHF 5.4 million).

20.1Movement in debt

Fiscal year 2024

 

 

 

 

 

 

 

In thousands of CHF

Jan. 1, 2024

Cash flows

Reclassif. from non-current to current

Unwinding of discount, and remeasurement

Foreign currency translation differences

Dec. 31, 2024

Non-current debt

59,767

101

59,868

Total debt

59,767

101

59,868

Fiscal year 2023

 

 

 

 

 

 

 

In thousands of CHF

Jan. 1, 2023

Cash flows

Reclassif. from non-current to current

Unwinding of discount, and remeasurement

Foreign currency translation differences

Dec. 31, 2023

Non-current debt

59,669

98

59,767

Total debt

59,669

98

59,767

21 Trade and other payables

21Trade and other payables

 

 

 

 

In thousands of CHF

2024

 

2023

Trade payables

30,790

 

20,331

Sundry payables

6,253

 

5,610

Sales commissions

2,379

 

2,405

Total financial liabilities

39,422

 

28,346

Sales tax and value-added tax

1,545

 

929

Total other payables

1,545

 

929

Total trade and other payables

40,967

 

29,275

22 Accrued expenses

22Accrued expenses

 

 

 

 

In thousands of CHF

2024

 

2023

Accrued staff costs

11,369

 

5,727

Deferred revenue

3,335

 

4,619

Other accrued expenses

9,060

 

6,754

Total accrued expenses

23,764

 

17,100

Accrued staff costs consist mainly of the amount accrued for performance-based compensation, and employees’ vacation and overtime credits. 
Significant components of other accrued expenses included consulting, audit services, lease costs, utilities and commissions.

23 Provisions

23Provisions

Fiscal year 2024

 

 

 

 

In thousands of CHF

Warranties

Other provisions

Total provisions

January 1, 2024

5,999

265

6,264

Added

5,757

34

5,791

Used

(5,123)

(5,123)

Released

(1,114)

(1)

(1,115)

Foreign currency translation differences

221

(2)

219

December 31, 2024

5,740

296

6,036

Of which:

 

 

 

January 1, 2024

 

 

 

Current provisions

5,999

10

6,009

Non-current provisions

255

255

December 31, 2024

 

 

 

Current provisions

5,740

21

5,761

Non-current provisions

275

275

Fiscal year 2023

 

 

 

 

In thousands of CHF

Warranties

Other provisions

Total provisions

January 1, 2023

6,480

1,448

7,929

Added

6,741

23

6,764

Used

(5,159)

(737)

(5,896)

Released

(1,618)

(414)

(2,032)

Foreign currency translation differences

(445)

(55)

(500)

December 31, 2023

5,999

265

6,264

Of which:

 

 

 

January 1, 2023

 

 

 

Current provisions

6,480

475

6,955

Non-current provisions

973

973

December 31, 2023

 

 

 

Current provisions

5,999

10

6,009

Non-current provisions

255

255

The provision for warranties covers the risk of expenses for defects that have not occurred to date, but could potentially occur until the end of the warranty periods. Warranty provisions are measured based on historical experience.

24 Employee benefits

24Employee benefits

24.1Employee benefit liabilities

The employee benefit liabilities of the Group are summarized in the following table. 

 

 

 

 

In thousands of CHF

2024

 

2023

Defined benefit liability in Switzerland

10,325

 

5,141

Defined benefit liability in other countries

673

 

267

Total defined benefit liability

10,998

 

5,408

Provision for length-of-service awards

1,549

 

1,385

Total employee benefit liabilities

12,547

 

6,794

24.2Defined benefit plans

Comet maintains defined benefit pension plans in Switzerland, Germany and Japan. These plans differ according to their particular purpose and are based on the legal requirements in the respective countries.

Switzerland

The defined benefit plan is managed within a collective foundation. This is a separate legal entity falling under the Swiss Federal Act on Occupational Retirement, Survivors’ and Disability Pensions (the BVG). The pension fund maintains a main (“base”) plan for employees that provides the legally required benefits, and a supplemental plan that provides benefits in respect of pay components above the statutory range. The defined benefit plan is managed under a fully insured pension model and thus all investment risk is carried by the pension fund, or ultimately by the insurer. The plan is administered by the collective foundation, which is in the form of a foundation organized by an insurance company. The pension fund is managed by the foundation’s board of directors, which is composed of equal numbers of employee and employer representatives and is required to act in the interests of the plan participants.

Plan participants are insured against the financial consequences of old age, disability and death. The benefits are specified in a set of regulations. Minimum levels of benefits are prescribed by law. Contribution levels are set as a percentage of the insured portion of employees’ pay. The pension is calculated as the retirement pension asset existing at the time of retirement, multiplied by the conversion rate specified in the regulations. Plan participants can opt to receive their principal as a lump sum instead of drawing a pension. The supplemental plan as a rule pays out a lump sum. The amounts of the disability and survivor pensions are defined as a percentage of insured pay.

Rest of the world

In Germany there is a closed plan with pension commitments which no longer has active participants. The obligations in respect of current pension payments and deferred pensions are recognized in the balance sheet.

In Japan, Comet grants pension benefits to its employees which are partly covered by Mutual Aid (Chutaikyo). If the benefits granted to retired employees exceed the actual payment from Mutual Aid (Chutaikyo), additional payments are made by Comet under the defined benefit pension plan.

Actuarial assumptions for major defined benefit plan

 

 

 

 

 

 

Switzerland

 

 

 

 

 

 

 

2024

 

2023

 

Discount rate at January 1

1.60%

 

2.20%

 

Discount rate at December 31

0.90%

 

1.60%

 

Expected rate of salary increases

1.60%

 

1.60%

 

Life tables used as basis for life expectancies

BVG 2020 LT

 

BVG 2020 LT

 

Movement in present value of defined benefit obligation, in plan assets and in net carrying amount for defined benefit plans

Fiscal year 2024

 

 

 

 

Fiscal year 2024

 

 

 

In thousands of CHF

Present value of defined benefit obligation

Fair value of plan assets

Net carrying amount recognized in balance sheet

January 1

(80,192)

74,782

(5,408)

Current service cost

(3,044)

(3,044)

Administration cost, excl. cost of managing plan assets

(40)

(40)

Current service cost

(3,083)

(3,083)

Interest (expense) or income

(1,364)

1,273

(91)

Defined benefit cost recognized in the income statement

(4,447)

1,273

(3,174)

Return on plan assets, excluding interest income

(628)

(628)

Actuarial loss arising from changes in financial assumptions

(5,544)

(5,544)

Actuarial gain arising from changes in demographic assumptions

5

5

Actuarial gain arising from experience adjustments

45

45

Defined benefit cost recognized in other comprehensive income

(5,494)

(628)

(6,122)

Benefits paid-in/deposited

(526)

581

56

Employee contributions

(3,075)

3,075

Employer contributions

3,641

3,641

Foreign currency translation differences

(2)

11

9

December 31

(93,736)

82,736

(10,998)

Reported on the face of the balance sheet as:

 

 

 

An asset

 

 

A liability

 

 

(10,998)

The actuarial loss arising from changes in financial assumptions was mainly attributable to the decrease in the discount rate.

The actuarial loss arising from experience adjustments represents the change that is not attributable to changes in assumptions. This relates in particular to the difference between the actuarial assumptions in the prior year and the actual outcomes with regard to the entry and exit of insured employees, effective salary adjustments, death and disability of insured persons, and retirements.

The board of directors of the pension fund decided in April 2023 to further reduce the pension conversion rates with effect from the year 2026. Under IAS 19, these plan amendments led to a negative past service cost (i.e., they resulted in income) and a corresponding reduction in the defined benefit obligation with a positive pre-tax effect of CHF 0.2 million in fiscal year 2023.

The average duration of the defined benefit obligation was 9.4 years (prior year: 8.5 years).

Fiscal year 2023 

 

 

 

 

Fiscal year 2023

 

 

 

In thousands of CHF

Present value of defined benefit obligation

Fair value of plan assets

Net carrying amount recognized in balance sheet

January 1

(75,341)

75,032

(308)

Current service cost

(2,365)

(2,365)

Past service cost

211

211

Administration cost, excl. cost of managing plan assets

(37)

(37)

Current service cost

(2,191)

(2,191)

Interest (expense) or income

(1,653)

1,656

4

Defined benefit cost recognized in the income statement

(3,843)

1,656

(2,187)

Return on plan assets, excluding interest income

(1,071)

(1,071)

Actuarial loss arising from changes in financial assumptions

(5,974)

(5,974)

Actuarial gain arising from changes in demographic assumptions

1,159

1,159

Actuarial loss arising from experience adjustments

(563)

(563)

Defined benefit cost recognized in other comprehensive income

(5,378)

(1,071)

(6,448)

Benefits paid-in/deposited

7,179

(7,160)

19

Employee contributions

(2,884)

2,884

Employer contributions

3,499

3,499

Foreign currency translation differences

76

(59)

17

December 31

(80,192)

74,782

(5,408)

Reported on the face of the balance sheet as:

 

 

 

An asset

 

 

A liability

 

 

(5,408)

Key metrics by country

 

 

 

 

 

 

 

 

 

 

Switzerland

 

Other countries

 

 

 

 

 

 

 

 

 

 

In thousands of CHF

2024

 

2023

 

2024

 

2023

 

Present value of defined benefit obligation

(92,193)

 

(79,046)

 

(1,541)

 

(1,144)

 

Fair value of plan assets

81,868

 

73,905

 

868

 

877

 

Net carrying amount recognized in the balance sheet

(10,325)

 

(5,141)

 

(673)

 

(267)

 

 

 

 

 

 

 

 

 

 

Defined benefit cost recognized in the income statement

(3,122)

 

(2,178)

 

(53)

 

(11)

 

Defined benefit cost recognized in other comprehensive income

(5,703)

 

(6,462)

 

(419)

 

14

 

The employer contributions to the plans in Switzerland for fiscal year 2025 are expected to amount to CHF 3.8 million.

Major categories of plan assets

 

 

 

 

In thousands of CHF

2024

 

2023

Assets from insurance contract

82,736

 

74,782

Total plan assets without a quoted market price

82,736

 

74,782

As the base plan and the supplemental plan are managed under a fully insured model, all investment risk is carried by the pension fund, or ultimately by the insurer. The plan assets are therefore reported as the item “assets from insurance contract”.

Companies of the Group do not make loans to the pension plans and do not utilize any real estate held by the plans.

Sensitivities

The following table presents an analysis of how the reported present value of the defined benefit obligation would change in response to hypothetical changes in the actuarial assumptions.

Sensitivity of present value of defined benefit obligation to different scenarios

 

 

 

 

 

 

 

 

 

 

In thousands of CHF

2024

 

2023

 

Discount rate: 0.25% decrease

95,982

 

81,929

 

Discount rate: 0.25% increase

91,677

 

78,552

 

Expected rate of salary growth: 0.25% decrease

93,509

 

80,039

 

Expected rate of salary growth: 0.25% increase

93,960

 

80,325

 

Life expectancy: 1-year increase

94,402

 

80,660

 

Life expectancy: 1-year decrease

93,074

 

79,724

 

24.3Defined contribution plans

The contributions paid to defined contribution plans in the fiscal year amounted to CHF 6.4 million (prior year: CHF 7.3 million).

24.4Length-of-service awards

Comet grants length-of-service awards to its employees after a certain number of years of service, in the form of lump-sum payments that increase in amount with the number of years of employment. The provision for this item changed as follows in the year under review:

 

 

 

 

In thousands of CHF

2024

 

2023

Provision at January 1

1,385

 

1,399

Current service cost

116

 

183

Interest cost

30

 

33

Benefits paid

(153)

 

(169)

Actuarial losses or (gains)

129

 

(33)

Changes in scope of consolidation 1

32

 

23

Foreign currency translation differences

10

 

(51)

Provision at December 31

1,549

 

1,385

1 In the year under review, length-of-service award policies were rolled out in two subsidiaries.

25 Equity capital structure and shareholders

25Equity capital structure and shareholders

25.1Capital stock

The capital stock at January 1, 2024, was CHF 7,773,966, divided into 7,773,966 registered shares with a par value of CHF 1.00 per share. In fiscal year 2024 and 2023 the capital stock remained unchanged, as the Board of Directors decided to use treasury stock for the share-based compensation. The capital stock is fully paid in.

 

 

 

 

 

 

 

Number of shares

 

Par value in CHF

 

 

 

 

 

 

 

2024

2023

 

2024

2023

January 1

7,773,966

7,773,966

 

7,773,966

7,773,966

Increase in capital from conditional capital designated for equity compensation

 

December 31

7,773,966

7,773,966

 

7,773,966

7,773,966

The Board of Directors decided to pay the share-based compensation from treasury stock, instead of using capital increases from conditional capital designated for equity compensation. At the balance sheet date, Comet Holding AG held 4,588 shares of treasury stock (prior year: 2,000).

25.2Capital band (i.e., capital range)

Under article 3a of its Articles of Association, at any time until April 14, 2026, the Board of Directors is authorized i) to increase the capital stock by issuing a maximum of 1,554,793 fully paid registered shares with a par value of CHF 1.00 per share in one or more steps, by not more than a cumulative CHF 1,554,793, to a new total of CHF 9,328,759 (the upper limit of the so-called capital band), and ii) to reduce the capital stock in one or more steps to not less than CHF 7,385,268 (the lower limit of the capital band), either by cancelling not more than a cumulative 388,698 registered shares with a par value of CHF 1.00 per share or by reducing the par value of the registered shares accordingly. A capital reduction and a reincrease may be performed simultaneously. If the capital stock is increased by means of the capital band, the limit on the number of shares by which the capital can subsequently be reduced is raised so that the lower end of the capital band can be reached. If the capital stock is reduced by means of the capital band, the limit on the number of shares by which the capital can subsequently be increased is raised so that the upper end of the capital band can be reached. If a change in capital is performed by changing the par value, the upper and lower limits of the capital band remain constant, but the limits on the number of shares by which the capital can subsequently be changed are adjusted accordingly. In the case of an increase of the capital stock, the new shares must be fully paid in. In the case of a capital reduction, the amount of the reduction may, in the discretion of the Board of Directors, be distributed to the shareholders in whole or in part and/or added to reserves.

The Board of Directors may exclude shareholders’ subscription rights in whole or in part and grant such subscription rights to certain shareholders or third parties, including subsidiaries, for the purpose of, among other things:

  • Enabling a strategic partner to acquire an equity interest
  • Acquiring or investing in companies, strategic equity interests, products and product development programs, intellectual property rights, etc.
  • Facilitating transactions by means of an exchange of shares

25.3Conditional capital for equity compensation

Under article 3b of its Articles of Association, the Company has conditional capital (in German: “bedingtes Kapital”) that is designated for use only as equity-based compensation. In a capital increase from this conditional capital, stock is issued to Executive Committee members and/or Board members of Comet Holding AG. With respect to this conditional capital, the other shareholders’ pre-emptive rights are excluded. The issuance of stock or stock subscription rights is based on a compensation plan (in the form of a written regulation) adopted by the Board of Directors.

In fiscal year 2024 and 2023, due to the decision by the Board of Directors to use treasury stock for the equity-based compensation, no capital increase from conditional capital for equity compensation was performed.

As a result, the Company’s unissued conditional capital for equity-based compensation showed no movement in fiscal year 2024 (movement in prior year: nil):

 

 

 

 

 

 

 

Number of shares

 

Par value in CHF

 

 

 

 

 

 

 

2024

2023

 

2024

2023

January 1

189,154

189,154

 

189,154

189,154

Increase in capital (awards to Board of Directors for prior term’s retainer and to Executive Committee for prior year’s profit-sharing compensation)

 

December 31

189,154

189,154

 

189,154

189,154

At the end of the year, the remaining conditional capital for equity-based compensation was CHF 189,154, or 2.4% of the existing capital stock (prior year: CHF 189,154, or 2.4%).

25.4Conditional capital for financing, acquisitions and other purposes

Under article 3c of its Articles of Association, the Company’s capital stock can be increased by a maximum of CHF 1,554,793 through the issuance of up to 1,554,793 fully paid registered shares with a par value of CHF 1.00 per share through the exercise (including mandatory exercise) of conversion, exchange, option, subscription, or similar rights to purchase shares granted to shareholders or third parties alone or in connection with bonds, loans, options, warrants, or other financial market instruments or contractual obligations of the Company or its subsidiaries (collectively “Financial Instruments”).

The Board of Directors is authorized to restrict or cancel the preferential subscription rights of existing shareholders in connection with the issue of Financial Instruments by the Company or one of its subsidiaries if the issue is made (a) for the purpose of financing or refinancing or compensation for the acquisition of companies, parts of companies, equity interests, products, intellectual property rights or licenses or of investment projects or (b) on domestic or foreign trading venues or as part of a private placement, or (c) for other important reasons. Such exclusion or restriction of preferential subscription rights in connection with the issuance of Financial Instruments may, based on the shares underlying the Financial Instruments in question, not involve more than 10% of the number of shares already in issue immediately prior to the issuance in question. This percentage shall be reduced to the extent that subscription rights are excluded pursuant to article 3a of the Articles of Association.

If the preferential subscription rights are not granted directly or indirectly by the Board of Directors in connection with the issue of Financial Instruments by the Company or one of its subsidiaries, the following shall apply:

  • The Financial Instruments shall be issued, or the associated transactions entered into, at market terms; and
  • the conversion, exchange or other exercise price of the Financial Instruments shall be determined with reference to the market price prevailing at the time the Financial Instruments are issued; and
  • the Financial Instruments are convertible, exchangeable or exercisable for a maximum period of ten years from the relevant issue date or transaction date.
26 Off-balance sheet transactions

26Off-balance sheet transactions

26.1Contingent asset

Comet Technologies USA Inc., Comet AG and Comet Yxlon GmbH (collectively, “Comet”) filed a lawsuit in the U.S. District Court for the Northern District of California asserting that XP Power LLC (“XP”) improperly acquired and used Comet trade secrets relating to its radio frequency matching network and generator technologies. A jury trial began on March 14, 2022, and on March 23, 2022, the jury found in favor of Comet, awarding it USD 20 million in compensatory damages and USD 20 million in punitive damages for a total of USD 40 million in monetary damages. On September 30, 2022, Comet was awarded an injunction preventing XP from developing, marketing or selling any product derived from the misappropriated Comet trade secrets. Comet is also eligible to recover from XP certain legal expenses related to the lawsuit.

On or about December 9, 2022, XP secured a USD 48.4 million bond to stay enforcement of the current judgment through the outcome of an appeal to the U.S. Court of Appeals for the Ninth Circuit. XP filed its notice of appeal on April 20, 2023. On January 29, 2025, the court awarded Comet legal fees and pre-judgement interest totaling approximately USD 19 million. The appeals process is ongoing. Based on the current status of the lawsuit, the amount of Comet’s award was still classified as a contingent asset as of December 31, 2024.

26.2Contingent liabilities

With respect to the XP Power lawsuit, Comet has agreed to a contingent success fee with its legal advisors in the form of a percentage of monetary and non-monetary recovery. The success fee is payable if and when Comet actually receives the recovery, which will occur upon a successful (i) full and final resolution of all outstanding post-trial motions and the current, active appeal or (ii) resolution of the lawsuit via executed settlement agreement. Based on the current status of the lawsuit, the final outcome and award amount remained uncertain as of December 31, 2024, and the success fee was therefore considered to be a contingent liability. Accordingly, Comet would recognize the liability for the success fee only if it prevails in the lawsuit against XP Power.

As a global company, Comet is exposed to numerous legal risks. These can include, especially, risks relating to product liability, trade secret misappropriation, patent law, export regulations, tax law and competition law. The outcomes of currently pending and future legal proceedings cannot be predicted with certainty and may thus have adverse or positive effects on the business trajectory and on future financial results.

Provisions are established inasmuch as the financial consequences of a past event can be estimated reliably and the estimate can be confirmed by independent expert opinion. Contingent liabilities that are likely to result in an obligation are included under provisions.

26.3Other off-balance sheet obligations

As part of its operating activities, Comet had purchase obligations at the balance sheet date totaling CHF 43.3 million (prior year: CHF 42.8 million), of which CHF 23.9 million were current in nature (prior year: CHF 21.2 million) and CHF 19.4 million mature during the five-year period beginning in 2025 (prior year: CHF 21.6 million). The payment obligations arise from off-balance sheet offtake agreements with suppliers, most of which are set out in master agreements.

There were no investment or capital commitments at December 31, 2024 (prior year: nil).

27 Financial instruments

27Financial instruments

27.1Classes of financial instruments

Fiscal year 2024

 

 

 

 

 

 

 

In thousands of CHF

 

Financial assets

Financial liabilities

 

 

 

 

 

 

 

 

 

Note

FVTPL 1

At amortized cost

FVTPL 1

At amortized cost

Fair value

Cash and cash equivalents

 

113,744

*

Trade and other receivables, net

12

79,977

*

Derivatives

13

18

1,001

(983)

Other assets – financial assets, excluding derivatives

13

2,080

*

Trade and other payables

21

39,422

*

Lease liabilities

17

37,744

*

Non-current debt, fixed rate

20

59,868

59,730

Total

 

18

195,801

1,001

137,035

 

Interest income or (expense)

9

2,587

(2,084)

 

Gain or (loss) on derivatives

9

617

(2,029)

 

Change in impairment and losses on trade receivables

12

(73)

 

Total net gain or (loss) recognized in the income statement

 

617

2,514

(2,029)

(2,084)

 

1 At fair value through profit or loss.

* The carrying amount approximates fair value.

Fiscal year 2023

 

 

 

 

 

 

 

In thousands of CHF

 

Financial assets

Financial liabilities

 

 

 

 

 

 

 

 

 

Note

FVTPL 1

At amortized cost

FVTPL 1

At amortized cost

Fair value

Cash and cash equivalents

 

86,707

*

Trade and other receivables, net

12

57,102

*

Derivatives

13

373

373

Other assets – financial assets, excluding derivatives

13

2,543

*

Trade and other payables

21

28,346

*

Lease liabilities

17

35,747

*

Non-current debt, fixed rate

20

59,767

59,430

Total

 

373

146,352

123,860

 

Interest income or (expense)

9

1,632

(2,214)

 

Gain or (loss) on derivatives

9

1,952

(161)

 

Change in impairment and losses on trade receivables

12

(158)

 

Total net gain or (loss) recognized in the income statement

 

1,952

1,474

(161)

(2,214)

 

1 At fair value through profit or loss.

* The carrying amount approximates fair value.

IFRS Accounting Standards require all financial instruments which are held at fair value, and all reported fair values, to be categorized into three classes (or “levels”) according to whether the fair values are based on quoted prices in active markets (Level 1), on models using other observable market data (Level 2), or on models using unobservable inputs (Level 3).

The only financial instruments that Comet recognized at fair value are derivatives held for currency hedging. The measurement of the derivatives falls into Level 2 of the fair value measurement hierarchy under IFRS 13.

27.2Fair values of financial instruments

The only differences between fair values and carrying amounts occurred for the CHF 60 million bond, where the quoted market price is used as the fair value (Level 1). As of December 31, 2024, the bond is presented under non-current debt, fixed rate (prior year: presented under non-current debt, fixed rate).

28 Financial risk management

28Financial risk management

Comet operates internationally through its own subsidiaries, as well as exports to other countries. As such, the Group is subject to various financial risks that arise in relation to underlying business activities.

The Group’s financial risk management is centralized through its Treasury function, with Comet’s Board of Directors having overall responsibility for the establishment and oversight of the Treasury risk management framework. The key elements of risk management form an integral part of the Group strategy. Clearly defined management information and control systems are used to measure, monitor and control risks.

Comet seeks to avoid unreasonable financial risks and to mitigate risks through natural hedges and/or derivatives such as forward exchange contracts, and does not enter into derivative financial instruments for speculative purposes.

28.1Capital management

The primary goal of capital management is to optimize the equity and debt balances in order to sustain the future development of the business and maximize shareholder value.

Comet manages the Group’s capital structure to meet liquidity requirements and pursue growth opportunities and profitability targets, taking into account the economic environment and the financial results achieved and planned. Comet may balance its capital structure in several ways, including through the payment of dividends, capital repayment, new share issues, share buybacks and the issuance or redemption of debt.

Comet monitors and evaluates its capital structure by reference to net debt and the equity ratio, with the aim of ensuring that the capital structure covers the business risks and assures the Group’s lasting financial flexibility.

 

 

 

 

In thousands of CHF

2024

 

2023

Current debt and lease liabilities

5,405

 

3,528

+ Non-current debt and lease liabilities

92,207

 

91,986

./. Cash and cash equivalents

(113,744)

 

(86,707)

Net debt

(16,132)

 

8,807

 

 

 

 

EBITDA

60,380

 

44,996

Debt factor

(0.3)

 

0.2

 

 

 

 

Shareholders' equity

325,438

 

296,092

Equity ratio (equity in % of total assets)

61.3%

 

62.5%

28.2Risks in connection with financial instruments

Comet is exposed to a variety of financial risks. These can be divided into market risks, credit risks and liquidity risks.

28.2.1Market risk

Market risk comprises risks resulting from volatility in foreign currency exchange rates, interest rates and the price of exchange-traded commodities. As a manufacturer, Comet is inherently exposed to commodity price risks (for example, for inputs such as energy, copper and ceramics), but these are not considered financial risks for the purposes of IFRS 7, as Comet procures commodities only for use in manufacturing, not for trading of commodity contracts. Consequently, these risks are not explicitly determined and are not separately disclosed in the consolidated financial statements.

Foreign exchange risk

With its worldwide activities and strong focus on exports, Comet is exposed to foreign exchange risk arising from currency exposures, as revenues and costs often do not arise in the same currency. The currency risk from operations is reduced by purchasing and selling in local currency where possible, an approach known as natural hedging. Comet seeks to avoid unreasonable financial risks. In order to partly mitigate these risks, Comet may apply natural and/or financial hedging techniques (typically forward exchange contracts) without applying hedge accounting as well as Comet does not enter into derivative financial instruments for speculative purposes.

As Comet hedges only cash flows, there are no hedges of net investments in foreign operations and no hedges related to translation of its foreign subsidiaries’ income, assets and liabilities into Swiss francs for inclusion in its consolidated financial statements.

The table below shows the sensitivity of income before tax and of shareholders’ equity to a hypothetical 10% movement in those exchange rates that are material for Comet, with all other variables held constant. The most important monetary foreign currency positions in the balance sheets of the Group companies are in euros and US dollars. A reduction in exchange rates by the same percentage would produce an opposite effect of equal size.

Fiscal year 2024

 

 

 

 

 

Increase in exchange rate in %

Effect on income before tax in thousands of CHF

Effect on equity in thousands of CHF

EUR / CHF

+10

+1,111

+2,537

USD / CHF

+10

+2,631

+948

Fiscal year 2023

 

 

 

 

 

Increase in exchange rate in %

Effect on income before tax in thousands of CHF

Effect on equity in thousands of CHF

EUR / CHF

+10

+1,707

+1,849

USD / CHF

+10

+1,898

+1,052

Interest rate risk

Comet’s only market debt instrument is a CHF 60 million bond with a fixed coupon measured at amortized cost. Consequently, volatility in market interest rates did not have an effect on the carrying amounts of the debt, nor therefore on income before tax or on equity. However, Comet’s debt financing exposes it to interest rate risk during refinancing in fiscal year 2026.

Comet’s cash and cash equivalents, including deposits, are subject to market risk associated with interest rate fluctuations. The market value of fixed rate securities may be adversely affected by a rise in interest rates.

The total interest income recognized in fiscal year 2024 amounted to CHF 2.6 million (prior year: CHF 1.6 million), primarily related to cash investments and deposits. The Group estimates that, given a possible increase or decrease of 25 basis points in Swiss franc, euro and US dollar market interest rates, with all other variables (including foreign exchange rates) held constant, interest income on cash invested would have been CHF 0.1 million higher or CHF 0.1 million lower, respectively (prior year: CHF 0.1 million higher or lower).

The above sensitivity analyses are for illustration purposes only, as in practice, market rates rarely change in isolation from other factors that also affect Comet’s financial position and results.

28.2.2Credit risk

Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a loss. 

Banking transactions

The Group has policies that limit the amount of counterparty credit exposure to any single financial institution and Comet actively monitors these exposures. The financial transactions are predominantly entered into with investment grade financial institutions, and in principle, Comet requires a minimum long-term rating of A3/A- (from Moody’s/S&P) for its deposit and cash investments. The Group may deviate from this requirement from time to time for operational reasons. The highest exposure to a single financial counterparty on December 31, 2024, amounted to CHF 42.5 million (prior year: CHF 27.0 million).

Trade receivables

Comet operates worldwide, selling its products in various countries and to a large number of customers. Payment terms vary according to market and customer. The payments received from customers are monitored by the individual Group companies; the resulting information is made available to Group management in the form of monthly special reports. Appropriate allowance for expected risk of default is made through the recognition of impairment on doubtful accounts. Receivables and contract assets are written off only when payment is highly unlikely to be forthcoming. Detailed information on impairment of receivables and contract assets and its movement in the year can be found in note 12.

The amount of exposure to credit risk equals the carrying amount of the respective financial instruments in the balance sheet.

28.2.3Liquidity risk

Comet defines liquidity risk as the risk that, at any time, the Group will not be able to meet its financial obligations as they come due. The Group views available cash balances and funds from operating activities as its primary sources of liquidity, complemented with access to external sources of funds when deemed to be required. As of December 31, 2024, the Group’s liquidity position primarily consisted of CHF 113.7 million of cash and cash equivalents and the fully undrawn CHF 60 million revolving credit facility. Based on the current operating performance and liquidity position, the Group believes that its liquidity position will be sufficient to cover working capital, capital expenditures, interest payments, dividends and scheduled debt repayments for the next twelve months.

As a key principle of its financial management, Comet monitors and maintains sufficient liquid assets and access to credit lines to assure access to liquidity at all times. Liquidity planning and funding are managed centrally for the whole Group. Comet manages short-term liquidity based on projected cash flows. A rolling three-month cash flow forecast is prepared monthly, based on a decentralized bottom-up approach. The financing of subsidiaries is normally arranged through intercompany loans issued by Comet Holding AG. Furthermore, the Group’s credit quality is safeguarded by monitoring the net leverage (debt factor) and equity ratios.

Following is an overview of all contractual payment obligations as at the balance sheet date, on an undiscounted basis. Amounts in foreign currency have been translated using the reporting date closing rate.

Fiscal year 2024

 

 

 

 

 

 

 

 

In thousands of CHF

Note

Carrying amount

 

Payments due by period

 

 

 

 

 

 

 

 

 

 

 

 

Total

2025

2026- 2029

After 2029

Debt

20

59,868

 

61,018

780

60,238

Lease liabilities

17

37,744

 

42,980

6,651

16,553

19,776

Financial liabilities

21

39,422

 

39,422

39,422

Other financial liabilities

13

1,001

 

1,001

1,001

Total

 

138,035

 

144,421

47,854

76,791

19,776

Fiscal year 2023

 

 

 

 

 

 

 

 

In thousands of CHF

Note

Carrying amount

 

Payments due by period

 

 

 

 

 

 

 

 

 

 

 

 

Total

2024

2025- 2027

After 2028

Debt

20

59,767

 

61,798

780

61,018

Lease liabilities

17

35,747

 

43,946

8,010

21,690

14,246

Financial liabilities

21

28,346

 

28,346

28,346

Total

 

123,860

 

134,091

37,136

82,708

14,246

The item “debt” represents the principal amounts of current and non-current debt, including underlying contractual interest payments.

The contract amounts of open derivative positions are presented in note 13.

29 Share-based payments

29Share-based payments

Compensation of the members of the Board of Directors

To ensure the independence of the Board of Directors in its supervision of the Executive Committee, the Board members receive only a fixed retainer, of which 60% is paid in cash and 40% is paid in stock. The stock awarded to Board members is subject to a holding period of three years during which it cannot be sold.

Compensation of the members of the Executive Committee

The remuneration of the members of the Executive Committee consists of a fixed component (“fixed compensation”) and a performance-related component. The members of the Executive Committee are eligible for participation in an annual short-term incentive plan (STIP) and a three-year long-term incentive plan (LTIP). The total performance-based compensation (combined total of STIP actual compensation and the LTIP grant value in the form of PSUs) is capped by an upper limit. For the CEO, this upper limit is 200% of the fixed compensation; for each other member of the Executive Committee, it is 150% of the fixed compensation.

The STIP is a profit-sharing arrangement based on the Group’s performance in terms of a combination of (i) its rate of sales growth year-over-year and (ii) its net income. The STIP is paid in cash (with some exceptions, which are explained in the compensation report, section “Compensation of the Executive Committee).

The LTIP, which has been in effect since January 1, 2023, is designed as a three-year performance share unit (PSU) plan based on three key performance indicators (sales growth measured against the NASDAQ Global Semiconductor Index; ROCE; ESG scorecard). PSUs convert to Comet shares at the end of the three-year vesting period, which commences on the grant date in May. The number of shares that will actually vest ranges from 0% to 200% of the initial number of PSUs granted, depending on the evolution of the above-mentioned KPIs over the three-calendar-year performance cycle. The stock delivered under the LTIP does not have a holding period. The first payout will be in May 2026.

A detailed description of the STIP and LTIP is provided in the compensation report, section “Compensation of the Executive Committee”.

 

 

Stock compensation plan

Share price

Stock granted to the members of the Board of Directors (as part of their compensation for the one-year term of office) and members of the Executive Committee (as part of their STIP payout for the performance year 2022, and under the LTIP 2022)

Arithmetic average of the closing share price of Comet stock on the SIX Swiss Exchange in the period between (and excluding) the date of the annual results press conference and the date of the subsequent Annual Shareholder Meeting

PSUs awarded to eligible LTIP participants under LTIP 2023 – 2025

Arithmetic average of the closing share price of Comet stock on the SIX Swiss Exchange on the 20 consecutive trading days from (and including) the ex-dividend date.

PSUs awarded to eligible LTIP participants under LTIP 2024 – 2026

Arithmetic average of the closing share price of Comet stock on the SIX Swiss Exchange on the 20 consecutive trading days from (and including) the ex-dividend date.

Expenses recorded

The expense recognized for share-based payments to the Executive Committee and Board of Directors in the year under review was CHF 1.0 million (prior year: CHF 0.6 million). Of this total, the portion for the Board of Directors was CHF 0.4 million.

30 Compensation of the Board of Directors and Executive Committee

30Compensation of the Board of Directors and Executive Committee

The expense for compensation of the members of the Executive Committee and Board of Directors can be analyzed as follows:

 

 

 

 

in thousands of CHF

2024

 

2023

Cash compensation, including short-term employee benefits

4,515

 

3,549

Contributions to post-employment benefit arrangements

374

 

339

Expense for share-based payments

1,034

 

554

Total compensation

5,924

 

4,442

31 Related party transactions

31Related party transactions

All related party transactions are listed in the table below:

 

 

 

 

 

 

 

 

 

In thousands of CHF

Sales to related parties

Purchases from related parties

Amounts owed by related parties

Amounts owed to related parties

 

2024

2023

2024

2023

2024

2023

2024

2023

Entity with significant influence over the Group

 

 

 

 

 

 

 

 

Variosystems Holding AG, Steinach

1

2

1,762

2,253

2

Band Cooperative, Bern

3

0

1,363

1,619

Fraunhofer Alumni eV, Germany

325

179

5

6

Semiconductor Equipment and Materials International Inc., USA

 

 

104

 

 

 

 

 

Others

0

3

Total

329

181

3,235

3,881

2

32 Events after the balance sheet date

32Events after the balance sheet date

With the exception of the matters disclosed in Note 26, “Off-balance sheet transactions”, there have been no events after the balance sheet date with a material effect on the amounts in the consolidated financial statements.

33 Proposed distribution to shareholders

33Proposed distribution to shareholders

The Board of Directors will propose at the 2025 Annual Shareholder Meeting to pay a dividend of CHF 1.50 per share in relation to fiscal year 2024, from retained earnings. In relation to the prior year, Comet paid a dividend of CHF 1.00 per share from retained earnings. The total amount of the proposed dividend in relation to fiscal year 2024 is CHF 11.7 million (prior year: CHF 7.8 million).

34 Release of the consolidated financial statements for publication

34Release of the consolidated financial statements for publication

On March 4, 2025, the Board of Directors released these financial statements for publication. The Board will present the financial statements to the Annual Shareholder Meeting on April 10, 2025, for approval.