Rosenbauer International AG: Rosenbauer Group achieved positive operating result again in H1 2023

Leonding (pta011/11.08.2023/07:00 UTC+2)

• Changed product mix and price adjustments boost revenues to € 460.5 million despite ongoing delays with chassis
• Restructuring measures bring operating turnaround; EBIT of € 5.6 million is positive in Q2 and subsequently also after first six months
• Demand remains stable: Incoming orders up 14% to € 664.8 million

The Rosenbauer Group generated revenues of € 460.5 million in the first half of 2023 (1–6/2022: € 429.7 million). This is 7.2% higher than the previous year. The reasons for this include a changed product mix and price adjustments, with further delays in the delivery of chassis. At the same time, in the second quarter, the Group made up for the backlogs and negative impact of the recent cyber attack. As a result, the operating turnaround was achieved and the first six months of the year closed with EBITDA of € 15.1 million (1–6/2022: € -8.8 million) and EBIT of € 0.7 million (1–6/2022: € -23.2 million) thanks to significantly higher gross profit and lower structural costs (research and development, sales and administrative expenses). At € 664.8 million, incoming orders were significantly higher than in the same period of the previous year (1–6/2022: € 581.4 million).

"With the completion of 100 fire trucks at the Leonding location in June alone, we have achieved a top result. The consolidated EBIT of € 5.6 million in the second quarter of 2023 marks the operating turnaround and makes me confident of the continued success of our restructuring program. Last year's price adjustments and the ongoing measures to reduce manufacturing costs and increase efficiency are taking effect," says Sebastian Wolf, CEO of Rosenbauer International AG.

Revenues and results of operations

The factors that hindered growth in the global economy in the previous year continue to have an impact. Inflation remains high and continues to erode household purchasing power. Monetary policy tightening by central banks in response to inflation has raised the cost of borrowing, constraining economic activity. In its latest World Economic Outlook Update, the International Monetary Fund (IMF) projects that global growth will fall from 3.5% in 2022 to 3% in 2023. Growth has been upgraded by 0.2 percentage points compared with projections from April, although it remains well below the historical average.

The Rosenbauer Group generated revenues of € 460.5 million in the first half of 2023 (1–6/2022: € 429.7 million). Four of the five segments increased their business volume. Consolidated revenues are currently divided across the sales areas as follows: Europe area 43%, Middle East & Africa area 9%, Asia-Pacific area 12%, Americas area 32% and Preventive Fire Protection segment 4%.

Incoming orders from January to June 2023 of € 664.8 million were considerably higher than the previous year's figure (1–6/2022: € 581.4 million). This growth was driven by the Asia-Pacific and Europe areas as well as the Preventive Fire Protection segment, which all posted very big increases. The order backlog also increased and amounted to € 1,687.6 million as of June 30, 2023 (June 30, 2022: € 1,334.2 million).

Financial and net assets position

Total assets increased year-on-year to € 1,122.5 million (June 30, 2022: € 1,014.0 million). Inventories went up to € 564.5 million (June 30, 2022: € 486.4 million), and receivables and other assets increased to € 278.6 million (June 30, 2022: € 226.6 million). Trade working capital was almost stable compared to the expected turnover for the year and amounted to € 475.5 million in the reporting period (1–6/2022: € 466.9 million).

"The selling prices of our production program and planning certainty in vehicle production are slowly improving. We must now continue to work intensively on our processes and cost structure in order to quickly return to the profitability we are aiming for. The solid order backlog is a good basis for capacity utilization and productivity at our production facilities," says Markus Richter, CFO of Rosenbauer International AG.

The Group's net debt (the net amount of interest-bearing liabilities less cash and cash equivalents and securities) increased year-on-year to € 466.1 million (June 30, 2022: € 428.9 million).

The increase in inventories and receivables since the turn of the year put cash flow from operating activities at € -138.6 million at the end of the first half of 2023 (1–6/2022: € -121.8 million).

Outlook

In July, the International Monetary Fund (IMF) revised its economic outlook for 2023 upward slightly by 0.2 percentage points to 3%. The recent resolution of the US debt ceiling standoff and strong action by authorities to contain turbulence in US and Swiss banking reduced the immediate risks of major financial sector turmoil. However, the balance of risks for the current scenario remains unchanged and tilted to the downside.

The firefighting industry's order books are full to bursting, which means that the industry can again generally expect to achieve growth in revenues in 2023. However, this will require the international supply chain situation to continue returning to normal over the coming months and the cost of materials to stabilize further. The strongest growth in revenues should be possible in Rosenbauer's core markets in Europe and North America, with the Middle East also likely to achieve stronger growth.

Based on a further improvement in the supply of truck chassis, the Rosenbauer Group's Executive Board expects revenues to exceed € 1 billion in 2023. The EBIT margin is expected to be around 3%.

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Emitter:	Rosenbauer International AG Paschinger Straße 90 4060 Leonding Austria
Contact Person:	Tiemon Kiesenhofer, MBA
Phone:	+43 732 6794-568
E-Mail:	tiemon.kiesenhofer@rosenbauer.com
Website:	www.rosenbauer.com
ISIN(s):	AT0000922554 (Share)
Stock Exchange(s):	Vienna Stock Exchange (Official Trade); Free Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate