EANS-News: Rosenbauer International AG / Half-year Financial Results 2018

Corporate news transmitted by euro adhoc with the aim of a Europe-wide distribution. The issuer is responsible for the content of this announcement.

Mid Year Results

Leonding -

  • Revenues of EUR 352.7 million show satisfactory development in the first half of 201
  • EBIT heading in the right direction at EUR 10.1 millio
  • Later realisation of revenues and earnings through new IFRS 15 accounting standar
  • Order backlog over the EUR 1 billion mark, management expects sales of over EUR 900 million and more than 5% EBIT margin for 2018

______________________________________________________________________________ |GROUP_FIGURES__|_____________|_______1-6/2017|_______1-6/2018|_Without_IFRS_15| |Revenues_______|_EUR_million_|__________393.6|__________352.7|___________403.0| |EBIT___________|_EUR_million_|____________2.7|___________10.1|____________17.4| |Result for the | EUR million | 3.4| 5.3| 10.8| |period_________|_____________|_______________|_______________|________________| |Cash flow from | | | | | |operating | EUR million | -51.7| -39.4| -39.4| |activities_____|_____________|_______________|_______________|________________| |Equity in % of | | | | | |the balance | | 33.6%| 31.7%| 33.3%| |sheet_total____|_____________|_______________|_______________|________________| |Earnings per | EUR | -0.3| 0.1| 0.9| |share__________|_____________|_______________|_______________|________________| |Number of | | | | | |employees as of| | 3,315| 3,471| 3,471| |30_June________|_____________|_______________|_______________|________________| |Order backlog | EUR million | 812.0| 1,030.5| 1,030.5| |as_of_30_June__|_____________|_______________|_______________|________________|

As expected, the global economy grew strongly in the first six months of 2018. The global fire service sector has benefited from this upbeat economic mood and continues to develop in a stable manner. Demand is mainly growing in the countries with continuous procurement and/or increased need for security after natural disasters or terrorist attacks.

Sales and earnings situation
The Rosenbauer Group generated group revenues of EUR 352.7 million in the first half of 2018 (1-6/2017: EUR 393.6 million). This decline can be attributed to using IFRS 15 for the first time, which was changed in the current financial year from period-of-time related revenue recognition to point-of-time related revenue recognition. This means that, unlike in the past, sales are no longer to be recorded according to the completion status of the construction contracts, but only after the product has been delivered to the customer.

Deliveries to several Asian and Central and Eastern European countries declined between January and June of this year, while the Near and Middle East as well as stationary fire protection reported significantly higher volumes than in the same period of the previous year. Group sales are currently divided among the various sales regions as follows: 32% CEEU Area, 12% NISA Area, 12% MENA Area, 13% APAC Area, 28% NOMA Area and 3% for the Stationary Fire Protection sector.

In the first half of the year, EBIT was clearly above the previous year's level at EUR 10.1 million (1-6/2017: EUR 2.7 million). This was mainly due to an increase in production output with a high inventory of finished and unfinished products and, consequently, a very good coverage of fixed costs. The financial result shows a loss of EUR -3.6 million (1-6 2017: EUR 0.7 million), which, in addition to the interest expenses incurred as a result of borrowing, also includes book value losses related to the effective date from hedge transactions to the US dollar. Group EBT in the reporting period amounted to EUR 6.1 million (1-6/2017: EUR 3.7 million).

However, incoming orders continued to grow strongly in the first six months at EUR 525.4 million (1-6 2017: EUR 458.3 million). The order backlog as of 30 June 2018 amounted to EUR 1,030.5 million and was significantly higher than the previous year's value (30 June 2017: EUR 882.6 million). With this order backlog, the Rosenbauer Group has utilised the capacity of the production facilities to a satisfactory level and given good insight into the next six months.

Financial and asset situation
Depending on the industry, the balance sheet structure is characterised by high working capital over the course of the year. This is triggered by several months of lead time for the vehicles in production. The high balance sheet total of EUR 696.2 million (30 June 2017: EUR 685.4 million) is mainly attributable to higher current assets compared to the reporting date of 31 December 2017.

As part of the switch to IFRS 15, all construction contracts ceased entirely (30 June 2017: EUR 98.5 million), while supplies increased to EUR 328.6 million (30 June 2017: EUR 224.7 million). Current assets amounted to EUR 509.3 million at the end of the reporting period (30 June 2017: EUR 501.9 million).

Current receivables of EUR 160.2 million (30 June 2017: EUR 165.2 million) were below the level of the previous year. The Group's net debt (balance of interest-bearing liabilities less cash and securities) decreased to EUR 245.5 million compared to the same period of the previous year (30 June 2017: EUR 247.9 million).

Due to the significant working capital - as a result of the high level of customer receivables - the cash flow from operating activities during the year is still in the negative at EUR -39.4 million (1-6/2017: EUR -51.7 million).

Forecast
The IMF recently confirmed its growth forecast for the global economy with 3.9 percent in 2018 and 2019. However, the escalating trade dispute and political uncertainties have dampened the economic forecast.

Experience has shown that the fire service industry follows general economic development with a gap of several months and should continue to develop in a stable manner. Rosenbauer is closely following developments in the various fire service markets in order to be able to take advantage of sales opportunities at an early stage. Depending on which countries or regions indicate an increased procurement volume, the sales activities are intensified. To ensure that the business development goals have a solid financial basis, efficiency and cost reduction remain the focus of attention. Despite continued pressure to attain good margins in the developed markets, Rosenbauer management is aiming for sales and earnings well above the levels of the previous year.

end of announcement euro adhoc

issuer: Rosenbauer International AG
Paschingerstrasse 90
A-4060 Leonding
phone: +43(0)732 6794 568
FAX: +43(0)732 6794 89
mail: ir@rosenbauer.com
WWW: www.rosenbauer.com
ISIN: AT0000922554
indexes: WBI
stockmarkets: Berlin, Wien, Stuttgart
language: English

Digital press kit: http://www.ots.at/pressemappe/2916/aom

Rückfragen & Kontakt:

Rosenbauer International AG
Tiemon Kiesenhofer
Tel.: +43 732 6794 568
e-mail: tiemon.kiesenhofer@rosenbauer.com

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