Rosenbauer International AG: Rosenbauer Group successfully hits Eur 1 billion mark in 2020

Leonding (pta008/09.04.2021/07:00 UTC+2) * Consolidated revenues rise by 6.8% to Eur 1,044.2 million, EBIT increases to Eur 57.9 million
* The Middle East, Central and Eastern Europe, and North America in particular helped to expand business with greater delivery volumes
* Order intake extremely solid at Eur 1,007.7 million, order backlog on a par with consolidated revenues for the year
* Operational cash flow turns positive and reaches all-time-high of Eur 96.4 million
* Dividend proposal of Eur 1.50 per share takes into account very good commercial performance and improvement in key financial ratios

GROUP KEY FIGURES		2019	2020	variation
Revenues	Eur million	978.1	1,044.2	+6.8%
EBIT	Eur million	51.9	57.9	+11.6%
Net profit for the period	Eur million	34.6	41.1	+18.7%
Cash flow from operating activities	Eur million	-26.6	96.4	+462.4%
Equity in % of total assets		25.9%	31.6%	-
Earnings per share	Eur	3.7	4.3	+16.2%
Dividend (proposal to AGM)	Eur per share	0.80	1.50	-
Number of employees as of December 31		3,828	3,984	+4.1%
Order backlog as of December 31	Eur million	1,149.5	1,072.1	-6.7%

In 2020, the Rosenbauer Group continued to expand its business in a deteriorating economic environment and hit the Eur 1 billion mark. Despite the significant restrictions brought about by the COVID-19 pandemic, revenues were 6.8% higher than the figure in the comparative period at Eur 1,044.2 million (2019: Eur 978.1 million). Thanks to the higher revenue volume and lower operating expenses, EBIT also hit a historic record level at Eur 57.9 million (2019: Eur 51.9 million). The EBIT margin came to 5.5% (2019: 5.3%). Efforts to reduce necessary operating capital also lowered finished goods and work in progress significantly.

Revenues and results of operations
The global firefighting industry held its own last year and is even expected to have achieved slight growth. The biggest sales regions are Europe, North America and Asia, and the most important single markets are the US, Germany and China. The Middle East has exhibited a gradual recovery of late thanks to stabilization of the oil price and a reduction in political tension in the region.

Against this backdrop, the Rosenbauer Group continued its growth course and significantly increased its revenues once again. The Middle East, Central and Eastern Europe, and North America in particular recorded higher delivery volumes. By contrast, business in Asia deteriorated due to the COVID-19 pandemic that originated in the region and the standstill in China, the largest single market.

EBIT was well above the previous year's level at Eur 57.9 million in 2020 (2019: Eur 51.9 million). The bulk of this, namely Eur 32.5 million, was generated in the fourth quarter. The significant increase in earnings is particularly attributable to the increased revenue volume and lower operating expenses.

At Eur -6.4 million, the 2020 financial result was negative and on a par with the previous year's level (2019: Eur -6.3 million). Lower shares in joint ventures were offset by lower interest expenses in the reporting year. Earnings before taxes (EBT) amounted to Eur 51.5 million (2019: Eur 45.5 million).

The order intake totaled Eur 1,007.7 million in 2020 (2019: Eur 1,073.7 million). Orders increased in the CEEU and NOMA areas in particular, remained roughly level in the MENA area and decreased in the NISA and APAC areas. The momentum of incoming orders picked up, particularly toward the end of the fourth quarter. For example, an order for 265 fire engines with portable pumps was received from the German federal state of Mecklenburg-Western Pomerania and an order for 22 PANTHER vehicles was received from the Spanish airport operator Aena. At Eur 1,072.1 million as of December 31, 2020 (2019: Eur 1,149.5 million), the order backlog was on a par with consolidated revenues for the year.

Financial position and net assets
The financial situation of the Rosenbauer Group remains solid. Total assets decreased year-on-year and amounted to Eur 909.5 million as of December 31, 2020 (2019: Eur 977.5 million).

Non-current assets increased slightly and amounted to Eur 235.8 million at the end of the year (2019: Eur 230.5 million). Right-of-use assets, which have also been recognized in non-current assets since 2019 due to IFRS 16 Leases, were reduced to Eur 32.2 million (2019: Eur 37.7 million). Current assets amounted to Eur 673.7 million (2019: Eur 747.0 million).

Equity increased to Eur 287.6 million as of the end of the year (2019: Eur 253.4 million), and the equity ratio went up to 31.6% (2019: 25.9%).

In the fall of 2020, Rosenbauer launched a project to optimize the cash conversion cycle with the aim of reducing trade working capital. The project will run until the end of 2021, but has already shown initial positive effects on the statement of financial position and cash flow from operating activities in the reporting year.

Trade working capital improved to Eur 421.1 million at the end of the year (2019: Eur 467.1 million). This decrease is mainly due to a significant reduction in inventories, which dropped to Eur 417.3 million (2019: Eur 475.5 million). Net cash flow from operating activities was positive at Eur 96.4 million in 2020 (2019: Eur -26.6 million).

Current interest-bearing liabilities fell from Eur 140.1 million to Eur 56.4 million in the reporting year.

Net debt shrank to Eur 289.3 million (2019: Eur 342.5 million), and the gearing ratio improved to 100.6% (2019: 135.1%).

Dividend
The Rosenbauer Group follows a growth-oriented and sustainable dividend policy that is consistent with the company's performance. In view of the exceptionally solid results for 2020 and the considerable improvement in key financial ratios, the Executive Board and the Supervisory Board will propose a dividend of Eur 1.50 at the Annual General Meeting (2019: Eur 0.80). Accordingly, the distribution volume for 6.8 million no-par-value shares will be Eur 10.2 million (2019: Eur 5.4 million). Based on the closing price of Eur 36.3, this corresponds to a dividend yield of 4.1% (2019: 2.0%).

Outlook
Demand for firefighting technology recovered during the second half of 2020, which means that this year the global firefighting industry is expected to hold steady. Europe and the Middle East in particular are expected to continue their trends of market growth. The demand situation in North America is expected to stabilize, and there should be a slight recovery in Asia after a considerable decline last year. New mutations of the SARS-CoV-2 virus and the vaccine distribution process continue to cause uncertainty.

Based on a solid order book, the Executive Board expects the company to achieve stable revenues and, once again, an EBIT margin of around 5% in 2021. Possible disruptions to business as a result of the COVID-19 pandemic do not permit a more precise forecast at the current time.

The key financial figures for the Q4 2020 in detail:

in Eur million	Q4 2019	Q4 2020	variation
Revenues	363.6	330.3	-9.2%
Operating performance	338.8	281.7	-16.8%
EBIT	36.8	32.5	-11.7%
EBIT margin	10.1%	9.8%	-
EBT	35.7	29.8	-16.5.%
Net profit for the period	25.7	23.8	-7.4%
Cashflow from operating activities	112.9	136.0	+20.5%

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