Rosenbauer International AG: Rosenbauer Group posted strong growth in the first six months of 2019

Leonding (pta005/09.08.2019/07:00 UTC+2) * Revenues rose by 12% to Eur 394.6 million by period comparison
* Incoming orders also clearly top the previous year's figure at Eur 571.1 million
* Preparation for further increase in production in the second half of the year affects profitability, EBIT falls to Eur 5.2 million
* Management is continuing to aim for revenues above Eur 950 million and an EBIT margin of approximately 5.5% for the current financial year

GROUP KEY FIGURES		1-6/2018	1-6/2019
Revenues	Eur million	352.7	394.6
EBIT	Eur million	10.1	5.2
Net profit for the period	Eur million	5.3	1.6
Cash flow from operating activities	Eur million	-39.4	-115.7
Equity in % of total assets		31.7%	25.1%*
Earnings per share	Eur	0.1	-0.4
Headcount as of June 30		3,471	3,683
Order backlog as of June 30	Eur million	1,030.5	1,229.4

The Rosenbauer Group once again posted strong growth in the first six months of 2019. Group revenues rose by 12% year-on-year from Eur 352.7 million to Eur 394.6 million. In particular, deliveries to North America, Central Europe and Asia were higher, while especially the Middle East recorded declines. At Eur 571.1 million, new orders were also significantly higher than the previous year (1-6/2018: Eur 525.4 million). On the other hand, higher expenses for staff and materials in anticipation of the planned increase in output in the second half of the year, negatively affected profitability and resulted in EBIT dropping to Eur 5.2 million (1-6/2018: Eur 10.1 million). Despite this interim result, the Rosenbauer Executive Board believes that the company is still within the target corridor and is anticipating revenues above Eur 950 million and an EBIT margin of approximately 5.5% for the year as a whole.

Revenues and result of operations
Global economic growth continued to lose momentum in the first half of 2019. The International Monetary Fund (IMF) took the most recent national publications on the economy and inflation as grounds to again downscale the economic forecast for the global economy it had already lowered in April and reduce it from 3.3% to 3.2% for this year. The global firefighting industry generally lags economic performance and reported unchanged, robust demand in this environment.

The Rosenbauer Group generated total revenues of Eur 394.6 million in the first half of 2019 (1-6/2018: Eur 352.7 million). These are currently divided across the segments as follows**: 33% in the CEEU area, 10% in the NISA area, 8% in the MENA area, 14% in the APAC area, 32% in the NOMA area, and 3% in the Stationary Fire Protection segment. As shown from past experience, the first six months of the year are characterized by the build-up of inventories and a comparatively lower result, because the majority of vehicle deliveries are made in the second half of the year.

At Eur 5.2 million, EBIT for the first six months of 2019 was well below the corresponding figure from the previous year (1-6/2018: Eur 10.1 million). This was due to higher expenses for staff and materials. There was also a "short" June, which had fewer working days in production than in the previous year and finally ended with an EBIT of Eur -1.0 million (June 2018: Eur 3.7 million). Consolidated EBT for the reporting period amounted to Eur 2 million (1-6/2018: Eur 6.1 million).

Incoming orders developed extremely dynamically in the first six months at Eur 571.1 million (1-6/2018: Eur 525.4 million). By far the strongest year-on-year growth was reported in the Central and Eastern Europe sales area. The order backlog was Eur 1,229.4 million (1-6/2018: Eur 1,030.5 million).

Financial and net assets position
For reasons specific to the industry, the structure of the Rosenbauer Group's statement of financial position as of the end of the half-year is characterized by high trade working capital. Total assets increased to Eur 900.8 million by period comparison (June 30, 2018: Eur 696.2 million), which can be attributed in particular to the higher current assets compared with the balance sheet date of December 31, 2018. The first-time application of IFRS 16 contributed to an extension of the balance sheet total in the amount of Eur 24.7 million.

The major changes result from inventories and current receivables. Inventories increased to Eur 466.1 million (June 30, 2018: Eur 328.6 million). The current receivables were above the previous year's level at Eur 207.3 million (June 30, 2018: Eur 160.2 million).

The Group's net debt (the net amount of interest-bearing liabilities less cash and cash equivalents and securities) increased year-on-year to Eur 396.8 million (June 30, 2018: Eur 245.5 million). Owing to the high level of trade working capital - due to an increase in inventories - the intra-year cash flow from operating activities was still negative at Eur -115.7 million (1-6/2018: Eur -39.4 million).

Outlook
The IMF recently again reduced its global growth forecast. International trade conflicts, Brexit and geopolitical tensions are slowing trade. Next year, growth should therefore stabilize and the global economy should be able to move up again by 3.5%.

As shown from past experience, the firefighting industry follows the general economy at a delay of several months. Demand is robust and, not least thanks to full order books, the sector is holding its ground despite slowing economic growth. A consistently vital international project landscape should also support further market growth and prolong the successful development of the sector. In particular North America, Europe and Asia should expand their volume.

*) Without IFRS 16: 25.8%
**) CEEU: Central and Eastern Europe; NISA: Northern Europe, Iberia, South America, Africa; MENA: Middle East and North Africa; APAC: Asia, Pacific, Australia, China; NOMA: North and Middle America

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