Rosenbauer International AG: Rosenbauer Group further expands business in the first nine months of 2020

Leonding (pta009/17.11.2020/07:00 UTC+1) * Revenues increase again by 16% to Eur 713.9 million in comparison to the same period of the previous year
* At Eur 25.4 million, EBIT is also significantly up on the previous year
* Declining activities in Asia slow down order intake, which amounts to Eur 660.0 million
* Based on a solid order backlog, the Rosenbauer Executive Board expects revenues 2020 above previous year´s figure, with EBIT margin to land at around 5%
* For 2021, management assumes the global sector to move sideways and stable Group revenues

GROUP KEY FIGURES		1-9/2019	1-9/2020
Revenues	Eur million	614.5	713.9
EBIT	Eur million	15.1	25.4
Net profit for the period	Eur million	9.0	17.3
Cash flow from operating activities	Eur million	-136.3	-39.6
Equity in % of total assets		24.4%	25.9%*
Earnings per share	Eur	0.3	1.3
Headcount as of September 30		3,781	3,988
Order backlog as of September 30	Eur million	1,223.8	1,074.4

*) excluding IFRS 16: 26.8%

In the first three quarters of 2020, the Rosenbauer Group defied the restrictions imposed by the COVID-19 pandemic and further expanded its business. At Eur 713.9 million and an increase of 16% (1-9/2019: Eur 614.5 million), Group revenues reached a new record level for the period under review. The increase in revenues can be attributed to all sales areas, especially the MENA area, the NISA area and the CEEU area. In contrast, new orders were down on the very good previous year at Eur 660.0 million (1-9/2019: Eur 784.1 million). EBIT improved even more strongly than revenues, to Eur 25.4 million (1-9/2019: Eur 15.1 million). Against the background of an unchanged solid order backlog, the Rosenbauer Executive Board expects revenues 2020 to exceed previous year´s figure. The EBIT margin is expected to be around 5%.

Revenues and result of operations
The global economy is painstakingly recovering from the effects of the Great Lockdown in April of this year. While China's economy has regained momentum faster than expected, the return of the rest of the world to pre COVID 19 activity levels remains vulnerable to setbacks. Against this background, the International Monetary Fund (IMF) adjusted its global economic outlook for 2020 in October and improved it from -4.9% to -4.4%. The firefighting industry is a typical "laggard" of the general economy and, thanks to full order books, should be able to assert itself in a further declining economic environment. Demand for firefighting technology and equipment stabilized somewhat in the third quarter.

The Rosenbauer Group generated revenues of Eur 713.9 from January to September of 2020 (1-9/2019: Eur 614.5 million). The reasons for this include the solid order book and thus continued strong production output at all locations. The consolidated revenues are currently divided across the sales areas** as follows: 33% in the CEEU area, 11% in the NISA area, 13% in the MENA area, 12% in the APAC area, 29% in the NOMA area, and 2% in the Stationary Fire Protection segment.

At Eur 25.4 million, EBIT in the first nine months of 2020 was up on the corresponding period of the previous year (1-9/2019: Eur 15.1 million) despite the adverse effects of the COVID-19 pandemic. Consolidated EBT for the reporting period therefore amounted to Eur 21.6 million (1-9/2019: Eur 9.9 million).

At Eur 660.0 million, incoming orders in the first three quarters of 2020 were below the very good figure for the previous year (1-9/2019: Eur 784.1 million), mainly as a result of a downward trend in the APAC area and in the NISA area. Home markets CEEU and NOMA have developed very positively in spite of the COVID-19 pandemic. In that way CEEU area has obtained a tender of the Mecklenburg-Vorpommern office of internal administration comprising 265 fire engines with portable pumps and water tanks. The order backlog remains solid and amounted to Eur 1,074.4 million (1-9/2019: Eur 1,223.8 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 third quarter is characterized by high trade working capital. Total assets increased to Eur 1,008.0 million by period comparison (September 30, 2019: Eur 954.2 million), which can be attributed in particular to the higher current assets compared with the same period of the previous year.

Compared to the previous period, inventories and current receivables show the largest changes. Inventories decreased to Eur 479.1 million (September 30, 2019: Eur 502.2 million). The current receivables were above the previous year's level at Eur 277.8 million (September 30, 2019: Eur 224.1 million). As a result of efforts to reduce trade working capital, the Group's net debt (the net amount of interest-bearing liabilities less cash and cash equivalents) fell to below the level of the corresponding period of the previous year at Eur 407.3 million (September 30, 2019: Eur 425.6) despite higher revenues.

The cash flow from operating activities improved significantly compared to the previous year and is Eur -39.6 million (1-9/2019: Eur -136.3 million). A further improvement in the cash flow from operating activities is expected by the end of the year.

Outlook
The International Monetary Fund (IMF) admits in the latest update of its global economic outlook that the uncertainty of economic forecasts remains unusually high. Nevertheless, the global economy could grow by 5.2% next year. By 0.6%, global economic output would then be moderately higher than in 2019. However, progress in the development of vaccines and treatments for COVID-19, the adaptation of working conditions and consumer behavior will determine how quickly economic activity returns to pre-crisis levels.

As shown from past experience, the firefighting industry follows the general economy at a delay of several months and, thanks to full order books, should be able to assert itself in the current declining economic environment. For 2021, Rosenbauer management assumes the global sector to move sideways and stable Group revenues.

**) 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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