Rosenbauer International AG: Rosenbauer Group generates revenues of € 651.2 million in the first three quarters of 2022

Leonding (pta010/15.11.2022/07:00 UTC+1)

• Revenues reach previous year's high level again despite difficult material supply situation
• EBIT was € -30.5 million due to lower gross profit, implementation of initial restructuring measures had a negative impact of € 5.6 million
• Strong incoming orders of € 825.4 million, four of six segments report increases
• Massive material cost increases again necessitate price adjustments for new offers
• Based on a full order book and a slightly improved component shortage situation, the Group Executive Board confirms its outlook for the financial year

The Rosenbauer Group generated revenues of € 651.2 million in the first three quarters of 2022 (1-9/2021: € 649.5 million). The volume of the Group's business was thus back at the level of the comparative period of the previous year. Despite persisting material supply bottlenecks, the CEEU area and the NOMA area delivered more vehicles and equipment than in 2021. The Preventive Fire Protection (PFP) segment was able to significantly expand its revenues. Lower gross profit and increased structural costs (specifically sales and administrative expenses) resulted in a negative EBIT of € -30.5 million after the first nine months (1-9/2021: € 14.0 million). The implementation of initial restructuring measures had a negative impact on the operating result of € 5.6 million. At € 825.4 million, incoming orders were 6% higher than in the previous year (1-9/2021: € 781.1 million). The comparatively better net profit for the period can be attributed to a positive tax effect from the acquisition of US minority interests which was completed in June and capitalized loss carryforwards.

"Varying bottlenecks in material supply and massive cost increases for intermediary products and materials in some cases continued to characterize production conditions in Europe and North America in the third quarter. The component shortage situation has recently improved slightly and we are receiving more chassis again, for example. However, we are not expecting a real improvement until mid-2023. Since the beginning of the month, we have been partially passing on the higher cost of materials in the form of further price adjustments for new offers to our customers," says Sebastian Wolf, CEO of Rosenbauer International AG.

Revenues and result of operations

The Rosenbauer Group generated revenues of € 651.2 million in the first three quarters of 2022 (1-9/2021: € 649.5 million). These are currently divided across the sales areas as follows[1]: CEEU area 39%, NISA area 9%, MENA area 9%, APAC area 10%, NOMA area 30% and Preventive Fire Protection segment 4%.

Lower gross profit and increased structural costs – specifically sales and administrative expenses (restructuring measures) – resulted in a negative EBIT of € -30.5 million after the first nine months (1-9/2021: € 14.0 million). The reorganization of the Group commenced with the change in Group leadership at the beginning of the third quarter. Under the title of "Refocus, Restart," the Executive Board, with broad middle management participation, developed a comprehensive restructuring program comprising short- and medium-term measures to safeguard earnings, reduce manufacturing costs and fortify the business model. Implementation of the initial measures had a negative impact on EBIT of € 5.6 million. Consolidated EBT amounted to € -37.8 million at the end of the reporting period (1-9/2021: € 9.5 million).

Incoming orders from January to September 2022 were 6% higher than a year earlier at € 825.4 million (1-9/2021: € 781.1 million). Except for the MENA and APAC areas, all sales areas reported more new orders than in 2021. The order backlog increased again and remains very solid. It amounted to € 1,360.5 million at the end of the third quarter of 2022 (September 30, 2021: € 1,164.8 million).

Financial position and net assets

Total assets increased year-on-year to € 1,078.4 million (1-9/2021: € 985.3 million), with current assets rising more strongly than non-current assets.

The largest changes were in deferred tax assets due to the capitalization of loss carryforwards and the positive tax effects of the reorganization in the US, as well as in cash and cash equivalents: At € 30.3 million (1-9/2021: € 9.3 million) and € 50.5 million (1-9/2021: € 17.3 million) respectively, they have virtually tripled compared with the previous year.

Inventories rose to € 544.9 million (September 30, 2021: € 486.2 million), while receivables and other assets were clearly down on the previous year at € 202.7 million (September 30, 2021: € 238.2 million). At the same time, contract liabilities and trade payables increased, resulting in an improvement in trade working capital to € 466.1 million (1-9/2021: € 509.7 million).

There was also a sharp increase in non-current interest-bearing liabilities. At € 242.4 million, these were up on the previous year (1-9/2021: € 134.8 million) and influenced net debt (the net amount of interest-bearing liabilities less cash and cash equivalents and securities). Compared with the same period of the previous year, this increased to € 444.7 million (September 30, 2021: € 381.2 million).

The larger inventory, higher supplier prices and the increase in receivables since the beginning of the year put cash flow from operating activities at € -126.5 million (1-9/2021: € -52.3 million) at the end of the third quarter of 2022.

Outlook

According to forecasts by the IMF, global growth will fall from 6.0% to 3.2% in the current year and slow further to 2.7% in 2023. Apart from the global financial crisis and the acute phase of the COVID-19 pandemic, this is the weakest growth profile since 2001. It simultaneously reflects the significant slowdown in the world's largest economies: the contraction of the US economy in the first half of 2022, the contraction of the euro area in the second half, and the repeated COVID-19 outbreaks and lockdowns in China. Inflation is expected to rise from 4.7% worldwide to 8.8% this year, subsequently falling to 6.5% in 2023 and 4.1% in 2024.

According to the IMF, the risks to this outlook remain unusually high and predominately lean in the direction of a deterioration. For example, monetary policy could miscalculate inflation-fighting measures, and the monetary policy paths of the largest economies could diverge further, leading to a stronger appreciation of the US dollar. New shocks to food and energy prices could entail a firming of higher inflation rates.

Past experience has shown that the global firefighting industry follows general economic trends at a delay of several months. Their order books are well filled and the tendering activity is very strong. At the same time, the ongoing disruptions to supply chains and pressure on the energy and raw materials markets resulting from Russia's invasion of Ukraine cause uncertain production conditions, which is why the industry is expected to move sideways this year.

Based on a high order backlog and taking into account the continuing tight situation in the procurement of chassis and other components, the Executive Board expects sales of around € 1 billion and positive EBIT this year.

[1]CEEU area: Central and Eastern Europe; NISA area: Northern Europe, Iberia, South America and Africa; MENA area: Middle East and North Africa; APAC area: Asia-Pacific; NOMA area: North and Middle America

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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