« The outlook for
2020 is positive »

Message from Frédéric Sanchez, Chairman of the Executive Board

Innovation and
internationalization

Two essential drivers
to support fives’ ambition

A new order intake record

After two difficult years in 2015 and 2016, which saw falling oil and raw materials prices and an economic slowdown worldwide, including in emerging countries, 2017 brought a rebound in business for the Group. Fives also saw consolidation in its results, with a modest increase in its gross operating income.
With order intake at over 2.1 billion euros, the Group passed the symbolic bar of 2 billion euros in order intake for the first time in its history, setting a new record over 18% higher than the previous one.
All of the Group’s businesses and geographic regions contributed to this outstanding performance, which naturally benefited from the return of global economic growth but was also fostered by the success of its disruptive innovations.

Innovation: digitalization and additive manufacturing

Fives focused on innovation from very early on. The Group is now one of the top 30 French patent filers, with 52 new patents filed in 2017.
With their demand for increased automation of their production lines, Fives’ customers are seeking to develop more flexible systems that are better for people and for the future while providing an optimal response to changing consumption habits. Fives strives to meet their expectations by providing digital solutions and new technologies. Integrating digitalization and process equipment has made Fives an essential supplier of high-capacity sorting centers for the leading global e-commerce players in China, Europe, the US, and Japan. Fives’ expertise in the field has also enabled it to move into new industries like furniture and interior design with its integrated solutions. For example, Fives has designed fully-automated kitchen units production solutions for Schmidt.
Innovation is also a growth driver for the future. With its investments in 3D metal printing, which makes it possible to design parts with unique geometry while avoiding the constraints of traditional machining, Fives is developing technologies that are set to revolutionize future production methods in 2016, Fives partnered with Michelin to found AddUp, a joint venture specializing in the field, thus creating a growth driver for the next five to ten years.

Internationalization: new markets, new requirements

Internationalization is another growth driver for Fives. After its successful entry into the US and Chinese markets in the early 2000s, Fives set its sights on Japan a decade ago. With over 200 million euros in orders expected in Japan in 2018, following the record already set in 2017 (150 million euros), Japan now ranks as Fives’ third region, tied with China but behind the US and France. This success is emblematic of the quality of the Group’s technical offer and its ability to meet the expectations of Japanese customers, who are some of the world’s most demanding in terms of lead times, quality and performance. Fives’ successes in the country - in e-commerce, the automotive industry, steel, and combustion systems - are a great reward for the men and women of the Group.

Exceeding the 2 billion euro mark in sales in 2019

The excellent 2017 year-end order book 2017, which stood at close to 1.5 billion euros, offers excellent visibility of Fives’ activity outlook for 2018 and 2019, a perspective reinforced by the fact that the first months of 2018 have followed the trend set in 2017.
After exceeding 2 billion euros in order intake in 2017, in 2018 the Group should exceed the symbolic benchmark of 2 billion euros in sales for the first time.