Rosenbauer International AG: Rosenbauer Group posts new record revenues after first six months of 2020

Leonding (pta006/14.08.2020/07:00 UTC+2) * Business volume increases by 16% to Eur 458 million in comparison to the same period of the previous year
* At Eur 5.4 million, EBIT is up on the previous year despite the COVID-19 pandemic
* Burden from coronavirus crisis amounts to Eur 9 million
* At Eur 455.3 million, incoming orders are at the level of current revenues
* Based on a solid order backlog, management expects a slight increase in revenues in 2020, with an EBIT margin between 4% and 5%

GROUP KEY FIGURES		1-6/2019	1-6/2020
Revenues	Eur million	394.6	458.0
EBIT	Eur million	5.2	5.4
Net profit for the period	Eur million	1.6	2.2
Cash flow from operating activities	Eur million	-115.7	-34.0
Equity in % of total assets		25.1%	25.2%*
Earnings per share	Eur	-0.4	-0.5
Headcount as of June 30		3,683	3,967
Order backlog as of June 30	Eur million	1,229.4	1,118.2

The Rosenbauer Group continued to experience strong growth in the first half of 2020, despite the restrictions imposed by the COVID-19 pandemic. Group revenues rose by 16% by period comparison from Eur 394.6 million to Eur 458.0 million, representing a new historic high for the period under review. The increase in revenues can be attributed to all sales areas, especially the NISA area, the MENA area and the NOMA area. In contrast, new orders were down on the previous year at Eur 455.3 million (1-6/2019: Eur 571.1 million). Despite the coronavirus crisis, EBIT was improved to Eur 5.4 million (1-6/2019: Eur 5.2 million). The burden from the coronavirus crisis amounts to Eur 9 million. Against the background of an unchanged solid order backlog, the Rosenbauer Executive Board expects a slight increase in revenues for the year as a whole. The EBIT margin will be between 4% and 5%.

Revenues and result of operations
The negative impact of the COVID-19 pandemic on global economic activity in the first six months of 2020 has been stronger than expected. At the same time, economic recovery has been slower. For this reason, the International Monetary Fund (IMF) adjusted its outlook in June and raised the decline in global economic output from -3.0% to -4.9% this year. This decline will affect all regions for the first time, with the exception of China. As shown from past experience, the global firefighting industry is a typical "laggard", and follows the general economy at a delay of several months. Although demand slowed down in the second quarter, the sector should be able to assert itself in the current economic downturn thanks to full order books.

The Rosenbauer Group generated revenues of Eur 458.0 million in the first half of 2020 (1-6/2019: Eur 394.6 million). The reasons for this include the solid order book and the resulting continued strong production output at all locations. The consolidated revenues are currently divided across the sales areas** as follows: 30% in the CEEU area, 12% in the NISA area, 8% in the MENA area, 13% in the APAC area, 34% in the NOMA area, and 3% in the Stationary Fire Protection segment.

At Eur 5.4 million, EBIT in the first six months of 2020 was up on the corresponding period of the previous year (1-6/2019: Eur 5.2 million) despite the adverse effects of the COVID-19 pandemic. Consolidated EBT for the reporting period therefore amounted to Eur 2.5 million (1-6/2019: Eur 2 million).

At Eur 455.3 million, incoming orders from January to June of this year were below the corresponding figure for the previous year (1-6/2019: Eur 571.1 million), mainly as a result of a downward trend in the APAC area. The order backlog remains solid and amounted to Eur 1,118.2 million (1-6/2019: Eur 1,229.4 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 first half year is characterized by high trade working capital. Total assets increased to Eur 989.5 million by period comparison (June 30, 2019: Eur 900.8 million), which can be attributed in particular to the higher current assets compared with the balance sheet date of December 31, 2019.

Compared with the previous year, the major changes result from inventories and current receivables, with inventories increasing to Eur 478.3 million (June 30, 2019: Eur 466.1 million). The current receivables were above the previous year's level at Eur 252.0 million (June 30, 2019: Eur 207.3 million). Thanks to efforts to reduce trade working capital, the Group's net debt (the net amount of interest-bearing liabilities less cash and cash equivalents and securities) remained at the level of the corresponding period of the previous year at Eur 393.4 million (June 30, 2019: Eur 396.8 million), despite higher revenues.

The cash flow from operating activities improved significantly compared with the previous year and amounted to Eur -34.0 million (1-6/2019: Eur -115.7 million). A further improvement in the cash flow from operating activities is expected by the end of the year.

Outlook
The economic impact of the COVID-19 pandemic is unprecedented, and the economy will recover only slowly from its effects. However, according to the IMF, the countermeasures taken by politicians have helped to limit the damage worldwide and improve sentiment on the capital markets. But at the same time, uncertainty remains high. According to the experts, global economic output could grow by 5.4% next year, returning to the level of 2019.

As shown from past experience, the firefighting industry follows the general economy at a delay of several months. Although demand slowed down in the second quarter, the sector should be able to assert itself in the current economic downturn thanks to full order books.

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*) excluding IFRS 16: 26.0%
**) CEEU: Central and Eastern Europe; NISA: Northern Europe, Iberia, South America and Africa; MENA: Middle East and North Africa; APAC: Asia-Pacific, Australia, China; NOMA: North and Middle America

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