Interim / Quarterly Report • May 4, 2020
Interim / Quarterly Report
Open in ViewerOpens in native device viewer
| Three months ended March 31, | ||||
|---|---|---|---|---|
| IN € MILLIONS | 2020 | 2019 | Change | % CHANGE |
| Revenue | 221.0 | 239.1 | (18.1) | (7.6)% |
| EBIT | 26.5 | 31.3 | (4.8) | (15.3)% |
| Adjusted EBIT | 31.1 | 35.7 | (4.6) | (12.9)% |
| Profit for the period | 18.1 | 20.4 | (2.3) | (11.3)% |
| EBIT as % of revenue | 12.0% | 13.1% | ||
| Adjusted EBIT as % of revenue | 14.1% | 14.9% | ||
| Profit in % of revenue | 8.2% | 8.5% | ||
| Six months ended March 31, | ||||
| IN € MILLIONS | 2020 | 2019 | Change | % CHANGE |
| Revenue | 452.3 | 464.0 | (11.7) | (2.5)% |
| EBIT | 51.9 | 57.1 | (5.2) | (9.1)% |
| Adjusted EBIT | 61.1 | 66.4 | (5.3) | (8.0)% |
| Profit for the period | 34.5 | 38.1 | (3.6) | (9.4)% |
| Capital expenditure | (23.2) | (29.8) | 6.6 | (22.1)% |
| Free cash flow (FCF) | 19.7 | 19.0 | 0.7 | 3.7% |
| Adjusted FCF | 20.8 | 19.0 | 1.8 | 9.5% |
| EBIT as % of revenue | 11.5% | 12.3% | ||
| Adjusted EBIT as % of revenue | 13.5% | 14.3% | ||
| Profit in % of revenue | 7.6% | 8.2% | ||
| Capital expenditure as % of revenue | 5.1% | 6.4% | ||
| FCF in % of revenue | 4.4% | 4.1% | ||
| Adjusted FCF in % of revenue | 4.6% | 4.1% | ||
| Net leverage ratio | 1.1x | 1.1x |
29 5 Earnings per share
30 6 Property, plant and equipment
for the three and six months ended March 31, 2020
Alternative Performance Measures (APMs) in the interim group management report for the first half of fiscal year 2020
In accordance with the European Securities and Markets Authority (ESMA) guidelines on Alternative Performance Measures, the Stabilus Group provides a definition, the rationale for use and a reconciliation of APMs used. The Group uses the following APMs: organic growth, adjusted EBIT, free cash flow (FCF), adjusted free cash flow and the net leverage ratio. The calculation of the net leverage ratio is based on net financial debt and adjusted EBITDA for the last twelve months (adjusted EBITDA LTM), which are also considered APMs.
The APM organic growth is presented because we believe it aids in understanding our operating performance. We have modified this definition in the current financial year with regards to foreign exchange effects. In the past we have only reported at constant USD / EUR exchange rates for the NAFTA region. However, due to increasing impacts also from other foreign currencies we will determine organic growth based on all relevant foreign currencies.
The modified definition is as follows: Organic growth is defined as the reported revenue growth after removing the effects of acquisitions, divestitures and at constant foreign exchange rates. The effects resulting from constant foreign exchange rates are calculated as current year sales converted at current year's exchange rates less current year sales converted at prior year's exchange rates.
The definitions and required disclosures of all other APMs are provided in the relevant sections of this interim report.
As of October 1, 2019, the Stabilus Group changed its organizational and management structure to better address the requirements of regions and markets. Stabilus continues focus on regions to manage its business. The change is that South America and the former NAFTA is now managed as Americas, and, consequently, South America is no longer part of Asia / Pacific anymore. As such the new regions are as follows:
These regions are the operating segments of the Stabilus Group. Furthermore, the industrial business will not be split into different business units anymore. We have merged the business units Vibration & Velocity Control and Industrial / Capital Goods into Industrial. This is to align the market approach for all industrial markets, e.g. to realize cross selling opportunities and to optimize cost structures in managing the industrial business. Consequently, Stabilus has three business units:
The presentation of prior year figures is adjusted to provide comparative information already reflecting the new structure.
The tables below set out Stabilus Group's consolidated income statement for the second quarter and the first half of the fiscal years 2020 and 2019:
| Three months ended March 31, | ||||
|---|---|---|---|---|
| IN € MILLIONS | 2020 | 2019 | Change | % change |
| Revenue | 221.0 | 239.1 | (18.1) | (7.6)% |
| Cost of sales | (156.5) | (169.0) | 12.5 | (7.4)% |
| Gross profit | 64.5 | 70.1 | (5.6) | (8.0)% |
| Research and development expenses | (10.9) | (9.8) | (1.1) | 11.2% |
| Selling expenses | (22.0) | (21.0) | (1.0) | 4.8% |
| Administrative expenses | (10.0) | (8.9) | (1.1) | 12.4% |
| Other income | 5.1 | 1.1 | 4.0 | >100.0% |
| Other expenses | (0.3) | (0.2) | (0.1) | 50.0% |
| Profit from operating activities (EBIT) | 26.5 | 31.3 | (4.8) | (15.3)% |
| Finance income | 5.8 | 1.2 | 4.6 | >100.0% |
| Finance costs | (3.6) | (2.2) | (1.4) | 63.6% |
| Profit / (loss) before income tax | 28.6 | 30.3 | (1.7) | (5.6)% |
| Income tax income/ (expense) | (10.5) | (9.9) | (0.6) | 6.1% |
| Profit / (loss) for the period | 18.1 | 20.4 | (2.3) | (11.3)% |
| Six months ended March 31, | ||||
|---|---|---|---|---|
| IN € MILLIONS | 2020 | 2019 | Change | % change |
| Revenue | 452.3 | 464.0 | (11.7) | (2.5)% |
| Cost of sales | (321.1) | (330.3) | 9.2 | (2.8)% |
| Gross profit | 131.2 | 133.8 | (2.6) | (1.9)% |
| Research and development expenses | (21.4) | (19.7) | (1.7) | 8.6% |
| Selling expenses | (44.0) | (41.3) | (2.7) | 6.5% |
| Administrative expenses | (18.4) | (18.0) | (0.4) | 2.2% |
| Other income | 4.9 | 2.7 | 2.2 | 81.5% |
| Other expenses | (0.4) | (0.4) | – | 0.0% |
| Profit from operating activities (EBIT) | 51.9 | 57.1 | (5.2) | (9.1)% |
| Finance income | 5.3 | 1.5 | 3.8 | >100.0% |
| Finance costs | (6.1) | (4.5) | (1.6) | 35.6% |
| Profit / (loss) before income tax | 51.1 | 54.1 | (3.0) | (5.5)% |
| Income tax income/ (expense) | (16.6) | (16.0) | (0.6) | 3.8% |
| Profit / (loss) for the period | 34.5 | 38.1 | (3.6) | (9.4)% |
Group's total revenue developed as follows:
| Three months ended March 31, | |||||||
|---|---|---|---|---|---|---|---|
| IN € MILLIONS | 2020 | 2019 | Change | % change | % acquisition effect |
% currency effect |
% organic growth |
| EMEA | |||||||
| Automotive Gas Spring | 33.3 | 38.4 | (5.1) | (13.3%) | – | 0.0% | (13.3%) |
| Automotive Powerise® | 22.1 | 24.7 | (2.6) | (10.5%) | – | (1.1%) | (9.4%) |
| Industrial 2) | 63.0 | 62.9 | 0.1 | 0.2% | 7.0% | (0.1%) | (6.7%) |
| Total EMEA 1) | 118.4 | 126.0 | (7.6) | (6.0%) | 3.5% | (0.3%) | (9.2%) |
| Americas | |||||||
| Automotive Gas Spring | 25.8 | 30.4 | (4.6) | (15.1%) | – | 0.5% | (15.6%) |
| Automotive Powerise® | 29.1 | 32.0 | (2.9) | (9.1%) | – | (1.3%) | (7.8%) |
| Industrial 2) | 27.8 | 28.1 | (0.3) | (1.1%) | 0.8% | 2.3% | (4.2%) |
| Total Americas 1) | 82.7 | 90.5 | (7.8) | (8.6%) | 0.3% | 0.5% | (9.4%) |
| APAC | |||||||
| Automotive Gas Spring | 12.5 | 15.2 | (2.7) | (17.8%) | – | (0.6%) | (17.2%) |
| Automotive Powerise® | 3.5 | 3.5 | 0.0 | 0.0% | – | (1.5%) | 1.5% |
| Industrial 2) | 3.9 | 3.9 | 0.0 | 0.0% | – | (1.2%) | 1.2% |
| Total APAC 1) | 20.0 | 22.6 | (2.6) | (11.5%) | – | (0.8%) | (10.7%) |
| Stabilus Group | |||||||
| Total Automotive Gas Spring | 71.6 | 84.1 | (12.5) | (14.9%) | – | 0.1% | (15.0%) |
| Total Automotive Powerise® | 54.7 | 60.1 | (5.4) | (9.0%) | – | (1.2%) | (7.8%) |
| Total Industrial 2) | 94.7 | 94.9 | (0.2) | (0.2%) | 4.9% | 0.6% | (5.7%) |
| Revenue 1) | 221.0 | 239.1 | (18.1) | (7.6%) | 1.9% | 0.0% | (9.5%) |
1) Revenue breakdown by location of Stabilus company (i.e. "billed-from view").
2) As of October 1, 2019, our Vibration & Velocity business and Industrial / Capital Goods business units were combined into the Industrial business.
The presentation of prior-year figures was changed accordingly.
Total revenue of €452.3 million in the first half of fiscal year 2020 decreased by €(11.7) million or (2.5)% compared to the first half of fiscal year 2019. The Group´s organic growth rate in the first half of fiscal year 2020 was €(25.6) million or (5.4)%. The entities acquired in fiscal year 2019 (General Aerospace in April, Clevers and Piston in July) contributed €10.3 million in the first half of fiscal year 2020, while the effect from exchange rate movements amounted to €3.4 million.
The decrease in Group revenue in the first half of fiscal year 2020 primarily occurred in EMEA (€(9.9) million or (4.2)%, organic growth rate (7.9)%) and the Americas (€(2.9) million or (1.6)%, organic growth rate (4.3)%). Meanwhile, revenue in APAC increased by €1.1 million or 2.2%. APAC´s organic growth rate was 1.9%.
Six months ended March 31, IN € MILLIONS 2020 2019 Change % change % acquisition effect % currency effect % organic growth EMEA Automotive Gas Spring 65.5 73.8 (8.3) (11.2%) – 0.0% (11.2%) Automotive Powerise® 45.9 49.3 (3.4) (6.9%) – (1.7%) (5.2%) Industrial 2) 117.1 115.4 1.7 1.5% 8.5% (0.1%) (6.9%) Total EMEA 1) 228.6 238.5 (9.9) (4.2%) 4.1% (0.4%) (7.9%) Americas Automotive Gas Spring 51.7 58.4 (6.7) (11.5%) – 1.9% (13.4%) Automotive Powerise® 62.1 64.5 (2.4) (3.8%) – 2.3% (6.1%) Industrial 2) 59.3 52.9 6.4 12.0% 0.9% 3.1% 8.0% Total Americas 1) 173.0 175.9 (2.9) (1.6%) 0.3% 2.4% (4.3%) APAC Automotive Gas Spring 32.3 33.3 (1.0) (3.0%) – 0.5% (3.5%) Automotive Powerise® 10.3 8.4 1.9 22.6% – 0.2% 22.4% Industrial 2) 8.1 8.0 0.1 1.1% – (0.1%) 1.2% Total APAC 1) 50.7 49.6 1.1 2.2% – 0.3% 1.9% Stabilus Group Total Automotive Gas Spring 149.5 165.5 (16.0) (9.7%) – 0.8% (10.5%) Total Automotive Powerise® 118.3 122.1 (3.8) (3.1%) – 0.6% (3.7%) Total Industrial 2) 184.5 176.4 8.1 4.6% 5.9% 0.8% (2.1%) Revenue 1) 452.3 464.0 (11.7) (2.5%) 2.2% 0.7% (5.4%)
1) Revenue breakdown by location of Stabilus company (i.e. "billed-from view").
2) As of October 1, 2019, our Vibration & Velocity business and Industrial / Capital Goods business units were combined into the Industrial business.
The presentation of prior-year figures was changed accordingly.
Cost of sales decreased from €(330.3) million in the first half of fiscal year 2019 by (2.8)% to €(321.1) million in first half of fiscal year 2020, primarily due to decreased revenue. The cost of sales decrease (2.8%) is higher than the decrease in revenue (2.5%) and reflects a higher mix of strong margin in the industrial business as well as cost saving measures to address the COVID-19 impact on our business. Cost savings are especially realized in personnel costs by flexibilization of our headcount structure. Consequently, the cost of sales as a percentage of revenue decreased by 20 basis points to 71.0% (PY: 71.2%) and the gross profit margin improved to 29.0% (PY: 28.8%).
R&D expenses (net of R&D cost capitalization) increased by 8.6% from €(19.7) million the first half of fiscal year 2019 to €(21.4) million in the first half of fiscal year 2020. This reflects engineering activities to develop new products and product applications to open new areas of business for Stabilus. The acquired entity General Aerospace contributed €0.5 million to the €1.7 million increase. As a percentage of revenue, R&D expenses increased by 50 basis points to 4.7% (PY: 4.2%). The capitalization of R&D expenses (less related customer contribution) increased from €(5.9) million in the first half of fiscal year 2019 to €(8.3) million in the first quarter of fiscal year 2020. This increase reflects especially the development activities for our Powerise® business for specific customer projects.
Selling expenses increased from €(41.3) million in the first half of fiscal year 2019 by 6.5% to €(44.0) million in the first half of fiscal year 2020. This increase is mainly due to the selling expenses of the acquired entities (General Aerospace, Clevers and Piston) which contributed €2.0 million to the €2.7 million increase. As a percentage of revenue, selling expenses increased by 80 basis points to 9.7% (PY: 8.9%).
Administrative expenses increased slightly from €(18.0) million in the first half of fiscal year 2019 by 2.2% to €(18.4) million in the first half of fiscal year 2020. The acquired entities (General Aerospace, Clevers and Piston) contributed expenses of €(0.9) million in the first half of fiscal year 2020. The prior year includes €0.5 million advisory costs related to the acquisitions of General Aerospace and Clevers. As a percentage of revenue, administrative expenses increased by 20 basis points to 4.1% (PY: 3.9%).
Other income increased from €2.7 million in the first half of fiscal year 2019 by €2.2 million to €4.9 million in the first half of fiscal year 2020. This mainly comprises foreign currency translation gains from the operating business. The prior year includes net foreign currency translations gains of €1.2 million.
Other expenses remained unchanged at €(0.4) million in the first half of fiscal year 2019 compared to the first half of fiscal year 2020.
Finance income increased from €1.5 million in the first half of fiscal year 2019 to €5.3 million in the first half of fiscal year 2020. The increase is mainly due to net foreign exchange gains amounting to €3.7 million from the translation of intragroup loans and cash and cash equivalents.
Finance costs increased from €(4.5) million in the first half of fiscal year 2019 to €(6.1) million in the first half of fiscal year 2020. The increase mainly results from the first-time application of IFRS 16 (Leases). This effect amounts to €(0.7) million (PY: €– million) interest expenses.
Finance costs primarily contain ongoing interest expense. Interest expense in the first half of fiscal year 2020 of €(5.7) million (PY: €(4.3) million) especially related to the term-loan facility, of which €(2.5) million (PY: €(1.8) million) is cash interest. In addition, an amount of €(3.2) million (PY: €(2.5) million) is due to the amortization of debt issuance cost and the amortization of the adjustment of the carrying value using the effective interest rate method. Thereof €(0.9) million relates to a voluntary prepayment of the term-loan facility in February which led to a derecognition of unamortized debt issuance costs and unamortized adjustments of the carrying value.
Income tax expense increased from €(16.0) million in the first half of fiscal year 2019 to €(16.6) million in the first half of fiscal year 2020. The Stabilus Group´s effective tax rate in the first half of fiscal year 2020 is 32.5% (PY: 29.6%). In the first half of fiscal year 2020 the effective tax rate is negatively affected by withholding taxes charged on intra-group dividend payments mainly from Mexico, US and China.
The following tables shows a reconciliation of EBIT (earnings before interest and taxes) to adjusted EBIT for the second quarter and the first half of fiscal years 2020 and 2019:
| Three months ended March 31, | ||||
|---|---|---|---|---|
| IN € MILLIONS | 2020 | 2019 | Change | % change |
| Profit from operating activities (EBIT) | 26.5 | 31.3 | (4.8) | (15.3)% |
| PPA adjustments – depreciation and amortization | 4.6 | 4.4 | 0.2 | 4.5% |
| Advisory | – | – | – | n / a |
| Adjusted EBIT | 31.1 | 35.7 | (4.6) | (12.9%) |
| Six months ended March 31, | ||||
| IN € MILLIONS | 2020 | 2019 | Change | % change |
| Profit from operating activities (EBIT) | 51.9 | 57.1 | (5.2) | (9.1)% |
| PPA adjustments – depreciation and amortization | 9.2 | 8.8 | 0.4 | 4.5% |
| Advisory | – | 0.5 | (0.5) | (100.0)% |
| Adjusted EBIT | 61.1 | 66.4 | (5.3) | (8.0)% |
Adjusted EBIT represents EBIT, adjusted for exceptional non-recurring items (e.g. restructuring or one-time advisory costs) and depreciation / amortization of fair value adjustments from purchase price allocations (PPAs).
Adjusted EBIT is presented because we believe it helps understanding our operating performance.
The adjustment in the prior year related to advisory costs for the acquisitions of General Aerospace and Clevers amounting to €0.5 million.
The PPA adjustments in the first half year of fiscal year 2020 amounting to €9.2 million (PY: €8.8 million) and contain with €3.5 million (PY: €4.6 million) to the April 2010 PPA and with €4.2 million (PY: €4.2 million) to the June 2016 PPA. Furthermore, €1.5 million arise from the acquisitions in fiscal year 2019 (General Aerospace in April, Piston and Clevers in July).
The Stabilus Group is organized and managed primarily on a regional level. The three reportable operating segments of the Group are EMEA (Europe, Middle East and Africa), Americas (North and South America) and APAC (Asia Pacific).
The tables below set out the development of our operating segments for the second quarter and the first half of the fiscal years 2020 and 2019:
| Three months ended March 31, | ||||
|---|---|---|---|---|
| IN € MILLIONS | 2020 | 2019 | Change | % change |
| EMEA | ||||
| External revenue 1) | 118.4 | 126.0 | (7.6) | (6.0)% |
| Intersegment revenue 1) | 7.2 | 7.4 | (0.2) | (2.7)% |
| Total revenue 1) | 125.6 | 133.4 | (7.8) | (5.8)% |
| Adjusted EBIT | 15.5 | 18.7 | (3.2) | (17.1)% |
| as % of total revenue | 12.3% | 14.0% | ||
| as % of external revenue | 13.1% | 14.8% | ||
| Americas | ||||
| External revenue 1) | 82.7 | 90.5 | (7.8) | (8.6)% |
| Intersegment revenue 1) | 5.9 | 6.5 | (0.6) | (9.2)% |
| Total revenue 1) | 88.6 | 96.9 | (8.3) | (8.6)% |
| Adjusted EBIT | 15.7 | 15.5 | 0.2 | 1.3% |
| as % of total revenue | 17.7% | 16.0% | ||
| as % of external revenue | 19.0% | 17.1% | ||
| APAC | ||||
| External revenue 1) | 20.0 | 22.6 | (2.6) | (11.5)% |
| Intersegment revenue 1) | – | – | – | n/a |
| Total revenue 1) | 20.0 | 22.6 | (2.6) | (11.5)% |
| Adjusted EBIT | (0.1) | 1.5 | (1.6) | <(100.0)% |
| as % of total revenue | (0.5%) | 6.6% | ||
| as % of external revenue | (0.5%) | 6.6% |
1) Revenue breakdown by location of Stabilus company (i.e. "billed-from view").
| T _ 008 | |||
|---|---|---|---|
| Six months ended March 31, | ||||
|---|---|---|---|---|
| IN € MILLIONS | 2020 | 2019 | Change | % change |
| EMEA | ||||
| External revenue 1) | 228.6 | 238.5 | (9.9) | (4.2)% |
| Intersegment revenue 1) | 14.1 | 14.1 | – | – |
| Total revenue 1) | 242.7 | 252.6 | (9.9) | (3.9)% |
| Adjusted EBIT | 29.0 | 34.3 | (5.3) | (15.5)% |
| as % of total revenue | 11.9% | 13.6% | ||
| as % of external revenue | 12.7% | 14.4% | ||
| Americas | ||||
| External revenue 1) | 173.0 | 175.9 | (2.9) | (1.6)% |
| Intersegment revenue 1) | 11.5 | 13.3 | (1.8) | (13.5)% |
| Total revenue 1) | 184.6 | 189.1 | (4.5) | (2.4)% |
| Adjusted EBIT | 28.3 | 27.4 | 0.9 | 3.3% |
| as % of total revenue | 15.3% | 14.5% | ||
| as % of external revenue | 16.4% | 15.6% | ||
| APAC | ||||
| External revenue 1) | 50.7 | 49.6 | 1.1 | 2.2% |
| Intersegment revenue 1) | 0.1 | 0.1 | – | – |
| Total revenue 1) | 50.8 | 49.7 | 1.1 | 2.2% |
| Adjusted EBIT | 3.9 | 4.7 | (0.8) | (17.0)% |
| as % of total revenue | 7.7% | 9.5% | ||
| as % of external revenue | 7.7% | 9.5% | ||
1) Revenue breakdown by location of Stabilus company (i.e. "billed-from view").
The external revenue generated by our companies located in the EMEA region decreased from €238.5 million in the first half of fiscal year 2019 by (4.2)% to €228.6 million in the first half of fiscal year 2020. The acquired entities General Aerospace and Piston contributed €9.8 million to revenue in EMEA and the currency translation effect amounted to €(0.9) million resulting in an organic growth rate of (7.9)%. The reduction is mainly driven by our Automotive Gas Spring business, which decreased from €73.8 million by (11.2)% to €65.5 million. Organic growth of the Automotive Gas Spring business was (11.2)%. Our Automotive Powerise® business decreased from €49.3 million by (6.9)% to €45.9 million. The organic growth rate of the Automotive Powerise® was (5.2)%. Throughout the first half of fiscal year 2020 the ongoing soft vehicle production in Europe with weak demand influenced our business. This general weakness was significantly intensified by the COVID-19 crisis beginning in February leading to amongst others closures of plants of OEMs. The Industrial business increased from €115.4 million by
1.5% to €117.1 million, the entities acquired in the third quarter of fiscal year 2019, i.e. General Aerospace and Piston, contributed €9.8 million to the revenue of the Industrial business. Organically the Industrial business decreased by (6.9)%. This slowdown in the Industrial business reflects the continuously slightly softer macroeconomic environment and the effects from the global COVID-19 crisis. The adjusted EBIT of the EMEA segment decreased by (15.5)% or €(5.3) million, and the adjusted EBIT margin, i.e. adjusted EBIT in percent of external revenue, decreased in the first half of fiscal year 2020 by 170 basis points to 12.7% (PY: 14.4%).
The external revenue of our companies located in the Americas decreased from €175.9 million in the first half of fiscal year 2019 by (1.6)% to €173.0 million in the first half of fiscal year 2020. The Automotive Powerise® business decreased from €64.5 million by (3.8)% to €62.1 million and decreased (6.1)% organically. The Automotive Gas Spring business decreased from €58.4 million by
(11.5%) to € 51.7 million, the organic growth rate was (13.4)%. The Automotive business also impacted by the outbreak of the coronavirus leading to plant closures until the end of March. Our Industrial business increased from €52.9 million by 12.0% to €59.3 million and benefits from the growth in the solar damper segment. Organically the Industrial business increased by €4.2 million or 8.0%. The currency translation effect amounted to €4.2 million, and the contribution of €0.5 million revenue from the acquisition of Clevers led to an organic growth rate of (4.3)%. The adjusted EBIT of the Americas segment increased by €0.9 million or 3.3%, and the adjusted EBIT margin increased in the first half of fiscal year 2020 by 80 basis points to 16.4% (PY: 15.6%).
The external revenue of our companies located in APAC increased from €49.6 million in the first half of fiscal year 2019 by 2.2% to €50.7 million in the first half of fiscal year 2020. This increase was mainly driven by the Automotive Powerise® business, which increased by €1.9 million or 22.6%, the organic growth rate was 22.4%, and was partly offset by the Automotive Gas Spring business, which decreased by €(1.0) million or (3.0)%, the organic growth rate was (3.5)%. The Industrial business increased slightly from €8.0 million by 1.1% to €8.1 million. The organic growth rate of the Industrial business was 1.2%. The overall positive development especially in China, with stronger sales and wins of new OEM platforms in the region, was stopped by the temporary closure of production facilities, initiated by the government as a consequence of COVID-19. The currency translation effect amounted to €0.2 million and led to an organic growth rate for APAC of 1.9%. The adjusted EBIT of the APAC segment decreased by €(0.8) million or (17.0)%, and the adjusted EBIT margin decreased in the first half of fiscal year 2020 by 180 basis points to 7.7% (PY: 9.5%).
| IN € MILLIONS | March 31, 2020 | Sept 30, 2019 | Change | % change |
|---|---|---|---|---|
| Assets | ||||
| Non-current assets | 725.9 | 706.0 | 19.9 | 2.8% |
| Current assets | 375.7 | 393.2 | (17.5) | (4.5)% |
| Total assets | 1,101.6 | 1,099.2 | 2.4 | 0.2% |
| Equity and liabilities | ||||
| Equity | 493.1 | 499.6 | (6.5) | (1.3%) |
| Non-current liabilities | 434.5 | 428.2 | 6.3 | 1.5% |
| Current liabilities | 174.0 | 171.4 | 2.6 | 1.5% |
| Total liabilities | 608.5 | 599.6 | 8.9 | 1.5% |
| Total equity and liabilities | 1,101.6 | 1,099.2 | 2.4 | 0.2% |
The Group's balance sheet total increased slightly from €1,099.2 million as of September 30, 2019, by 0.2% to €1,101.6 million as of March 31, 2020.
Our non-current assets increased from €706.0 million as of September 30, 2019, by 2.8% or €19.9 million to €725.9 million as of March 31, 2020. The increase is attributable to the first-time application of IFRS 16 (Leases), which requires the recognition of rightof-use assets from operating leases, and led to an increase of €43.7 million. In addition, the group invested €14.5 million in property, plant and equipment for ongoing capacity expansion projects and was more than offset by depreciation. Furthermore, non-current assets were further reduced by the ongoing amortization of other intangible assets from the purchase price allocations amounting to €(9.2) million.
Current assets decreased from €393.2 million as of September 30, 2019, by (4.5)% or €(17.5) million to €375.7 million as of March 31, 2020. This was primarily driven by a decrease in trade accounts receivable amounting to €(16.0) million due to weaker sales and a decrease in the cash balance by €(16.3) million due to the dividend payment amounting to €(27.2) million paid out in February 2020. This decrease was partly offset by the increase of current tax assets amounting to €6.3 million and by the increase of other assets amounting of €4.8 million and by an increase of inventory amounting to €4.4 million in order to ensure our ability to deliver products.
The Group's equity decreased from €499.6 million as of September 30, 2019, by €(6.5) million to €493.1 million as of March 31, 2020. This decrease resulted from the dividend payment to our shareholders amounting to €(27.2) million in the second quarter of fiscal year 2020. In addition other comprehensive income decreased by €(13.9) million, this comprises unrealized actuarial gains on pensions (net of tax) amounting to €6.0 million and unrealized losses from foreign currency translation amounting to €(19.9) million. This was partly offset from the profit of €34.5 million that was generated in the first half of fiscal year 2020.
Non-current liabilities increased from €428.2 million as of September 30, 2019, by 1.5% or €6.3 million to €434.5 million as of March 31, 2020. This increase is especially due to the effect from the first-time application of IFRS 16 (Leases) amounting to €36.9 million recognized in other financial liabilities. This was partly offset by a voluntary prepayment of the term-loan facility amounting to €(20.0) million in February. Furthermore, the pension liabilities decreased by €(9.2) million as a consequence of the increased discount rate (March 31, 2020: 1.88% versus September 30, 2019: 0.93%).
Current liabilities increased slightly from €171.4 million as of September 30, 2019, by €2.6 million or 1.5% to €174.0 million as of March 31, 2020. Financial liabilities increased by €21.6 million from partly drawing the revolving credit facility. In addition, other financial liabilities increased by €7.5 million, especially from the firsttime application of IFRS 16 (Leases). The increase of current liabilities was offset by a significant reduction of trade accounts payables by €(16.6) million as a consequence of reduced business volume. Furthermore, current tax liabilities decreased by €(4.2) million.
| Cash flow | T _ 010 | |||
|---|---|---|---|---|
| Six months ended March 31, | ||||
| IN € MILLIONS | 2020 | 2019 | Change | % change |
| Cash flow from operating activities | 43.6 | 48.1 | (4.5) | (9.4)% |
| Cash flow from investing activities | (23.9) | (29.1) | 5.2 | (17.9)% |
| Cash flow from financing activities | (33.0) | (27.2) | (5.8) | 21.3% |
| Net increase / (decrease) in cash | (13.3) | (8.2) | (5.1) | 62.2% |
| Effect of movements in exchange rates on cash held | (3.1) | 1.7 | (4.8) | <(100.0)% |
| Cash as of beginning of the period | 139.0 | 143.0 | (4.0) | (2.8)% |
| Cash as of end of the period | 122.7 | 136.5 | (13.8) | (10.1)% |
Cash flow from operating activities decreased from €48.1 million in the first half of fiscal year 2019 by €(4.5) million or (9.4)% to €43.6 million in the first half of fiscal year 2020. This decrease is due to the reduced results from the period compared to prior year. In addition, this decrease resulted from higher income tax payments of €6.6 million. This was partially offset by the effect from the first-time application of IFRS 16 (Leases) amounting to €4.9 million (see cash flow from financing activities).
Cash outflow for investing activities decreased from €(29.1) million in the first half of fiscal year 2019 by €5.2 million or (17.9)% to €(23.9) million in the first half of fiscal year 2020. This decrease is due to lower capital expenditures in property, plant and equipment amounting to €(9.1) million down to €14.5 million, which was partly offset by an increased cash outflow for intangible assets of €2.5 million to €8.7 million. Furthermore, a payment of €(1.1) million relates to the acquisition of Piston which was acquired on July 2019.
Cash outflow from financing activities increased from €(27.2) million in the first half of fiscal year 2019 by €(5.8) million or 21.3% to €(33.0) million in the first half of fiscal year 2020. This increase
was mainly attributable to the payments for lease liabilities of €(4.2) million and to interest expenses on lease liabilities amounting to €(0.7) million, resulting from the effect of the first-time application of IFRS 16 (Leases). Furthermore, the increase is also driven by higher dividends of €(27.2) million (PY: €(24.7) million) paid to our shareholders in February 2020.
Free cash flow (FCF) is defined as the total of cash flow from operating and investing activities. The Group considers FCF as an essential alternative performance measure as it aids in the evaluation of the Group´s ability to generate cash that can be used, amoung others, for further investments. The following table sets out the composition of FCF.
Adjusted free cash flow is defined as the total of cash flow from operating and investing activities before acquisitions. The adjusted free cash flow increased from €19.0 million in the first half of fiscal year 2019 to €20.8 million in the first half of fiscal year 2020.
| Free cash flow | T _ 011 | |||
|---|---|---|---|---|
| Six months ended March 31, | ||||
| IN € MILLIONS | 2020 | 2019 | Change | % change |
| Cash flow from operating activities | 43.6 | 48.1 | (4.5) | (9.4)% |
| Cash flow from investing activities | (23.9) | (29.1) | 5.2 | (17.9)% |
| Free cash flow | 19.7 | 19.0 | 0.7 | 3.7% |
| Adjusted Free Cash Flow | T _ 012 | |||
| Six months ended March 31, | ||||
| IN € MILLIONS | 2020 | 2019 | Change | % change |
| Cash flow from operating activities | 43.6 | 48.1 | (4.5) | (9.4)% |
| Cash flow from investing activities before acquisitions | (22.8) | (29.1) | 6.3 | (21.6)% |
Adjusted FCF 20.8 19.0 1.8 9.5%
The net leverage ratio is defined as net financial debt divided by adjusted EBITDA for the last twelve months (adjusted EBITDA LTM).
Net financial debt is the nominal amount of financial debt, i.e. current and non-current financial liabilities, less cash and cash equivalents. Adjusted EBITDA is defined as adjusted EBIT before depreciation / amortization and before exceptional non-recurring items (e.g. restructuring or one-time advisory costs).
The net leverage ratio is presented because we believe it is a useful indicator to evaluate the Group's debt leverage and financing structure.
The net leverage ratio remains unchanged at 1.1x for the twelve months ending March 31, 2019, compared to the twelve months ending March 31, 2020. See the following table:
| Net leverage ratio 1) | 1.1x | 1.1x | ||
|---|---|---|---|---|
| Adjusted EBITDA (LTM ended March, 31) | 184.4 | 182.0 | 2.4 | 1.3% |
| Net financial debt | 205.1 | 205.5 | (0.4) | (0.2)% |
| Cash and cash equivalents | (122.7) | (136.5) | 13.8 | (10.1)% |
| Financial debt | 327.8 | 342.0 | (14.2) | (4.2)% |
| IN € MILLIONS | March 31, 2020 | March 31, 2019 | Change | % change |
1) The net leverage ratio is defined as net financial debt divided by adjusted EBITDA for the last twelve months.
| Financial debt | T_014 |
|---|---|
| IN € MILLIONS | March 31, 2020 | March 31, 2019 |
|---|---|---|
| Financial liabilities (non-current) | 291.2 | 320.9 |
| Financial liabilities (current) | 23.3 | 1.1 |
| Adjustment carrying value | 13.3 | 20.0 |
| Financial debt | 327.8 | 342.0 |
| Adjusted EBITDA (LTM ended March, 31) | T _ 015 |
|---|---|
| --------------------------------------- | --------- |
| IN € MILLIONS | March 31, 2020 | March 31, 2019 | Change | % change |
|---|---|---|---|---|
| Profit from operating activities (EBIT) | 119.3 | 124.5 | (5.2) | (4.2)% |
| Depreciation 1) | 32.0 | 25.8 | 6.2 | 24.0% |
| Amortization | 34.0 | 31.2 | 2.8 | 9.0% |
| EBITDA | 185.3 | 181.5 | 3.8 | 2.1% |
| Advisory | 0.2 | 0.5 | (0.3) | (60.0)% |
| Environmental protection measures | 1.5 | – | 1.5 | n / a |
| PPA adjustments | 0.7 | – | 0.7 | n / a |
| Purchase price adjustment | (3.3) | – | (3.3) | n / a |
| Adjusted EBITDA | 184.4 | 182.0 | 2.4 | 1.3% |
1) Including IFRS 16 (Leases) effect of €4.1 million.
In the first quarter of calendar year 2020 the worldwide coronavirus crisis (COVID-19) is significantly effecting the macroeconomic environment and global economy and bears various risks for Stabilus, e.g. decreasing customer demand, shortages in the supply chain, governmentally enforced closure of plants, limited cost flexibility, devaluation of assets, cash shortages or health of our employees. To mitigate these risks Stabilus has implemented a global multidisciplinary crisis management team that monitors and analyzes the situation on a daily basis on a local and a global level and is taking actions to address and mitigate identified risks. Amongst others Stabilus has reduced capacities, e.g. by making use of short time work, furlough as well as selected redundancies. In addition, Stabilus emphasizes on a very strict monitoring of cost, liquidity as well as impairment risks. All employees are well informed about safety measures in business and private live. Also adjusted shift patterns, increased offering of home office and pulling forward of vacation reduce the risk of the virus spreading further.
For the general risk-related disclosures we refer to the Group Management Report and the audited Consolidated Financial Statements as of and for the fiscal year ended September 30, 2019.
As of April 30, 2020, there were no further events or developments that could have materially affected the measurement and presentation of the Group's assets and liabilities as of March 31, 2020.
Reflecting the economic uncertainty associated with COVID-19 and an expected significant reduction in the global light vehicle production in fiscal year 2020, observable in vehicle production forecasts that have been reduced several times, Stabilus S.A. considers the forecast for the fiscal year 2020 published on November 15, 2019, to be no longer achievable as announced on March 17, 2020. As a consequence revenue in fiscal year 2020 is currently expected to fall below the previous forecast level of €970 million to €990 million and the adjusted EBIT margin is expected to drop below 15%. In light of the dynamic situation and the ongoing uncertainties of the global developments in connection with COVID-19, a firm forecast of revenue and adjusted EBIT margin can only be provided at a later point in time.
as of and for the three and six months ended March 31, 2020
for the three and six months ended March 31, 2020 (unaudited)
Three months ended March 31, Six months ended March 31, IN € THOUSANDS NOTE 2020 2019 2020 2019 Revenue 2 220,986 239,089 452,342 464,041 Cost of sales (156,502) (168,958) (321,103) (330,256) Gross profit 64,484 70,131 131,239 133,785 Research and development expenses (10,877) (9,845) (21,407) (19,643) Selling expenses (22,000) (21,036) (44,007) (41,347) Administrative expenses (9,967) (8,881) (18,446) (18,020) Other income 5,135 1,055 4,927 2,672 Other expenses (303) (144) (432) (307) Profit from operating activities 26,472 31,280 51,874 57,140 Finance income 3 5,792 1,229 5,331 1,456 Finance costs 4 (3,616) (2,239) (6,122) (4,473) Profit / (loss) before income tax 28,648 30,270 51,083 54,123 Income tax income / (expense) (10,541) (9,893) (16,604) (16,016) Profit / (loss) for the period 18,107 20,377 34,479 38,107 thereof attributable to non-controlling interests 108 (46) 234 (65) thereof attributable to shareholders of Stabilus 17,999 20,423 34,245 38,172 Other comprehensive income / (expense) Foreign currency translation difference 1) 11 (13,635) 6,625 (19,914) 7,956 Unrealized actuarial gains and losses 2) 11 4,746 (1,109) 6,040 (841) Other comprehensive income / (expense), net of taxes (8,889) 5,516 (13,874) 7,115 Total comprehensive income / (expense) for the period 9,218 25,893 20,605 45,222 thereof attributable to non-controlling interests 108 (46) 234 (65) thereof attributable to shareholders of Stabilus 9,110 25,939 20,371 45,287 Earnings per share (in €): basic 5 0.73 0.83 1.39 1.55 diluted 5 0.73 0.83 1.39 1.55
1) Item that may be reclassified ('recycled') to profit and loss at a future point in time when specific conditions are met.
2) Item that will not be reclassified to profit and loss.
as of March 31, 2020 (unaudited)
| Consolidated Statement of Financial Position | T _ 017 | ||
|---|---|---|---|
| IN € THOUSANDS | NOTE | March 31, 2020 | Sept 30, 2019 |
| Assets | |||
| Property, plant and equipment | 6 | 232,367 | 199,946 |
| Goodwill | 213,271 | 214,821 | |
| Other intangible assets | 7 | 267,252 | 276,159 |
| Other assets | 9 | 4,167 | 1,711 |
| Deferred tax assets | 8,844 | 13,371 | |
| Total non-current assets | 725,901 | 706,008 | |
| Inventories | 10 | 104,694 | 100,339 |
| Trade accounts receivable | 114,363 | 130,328 | |
| Current tax assets | 11,307 | 4,987 | |
| Other financial assets | 8 | 4,061 | 4,743 |
| Other assets | 9 | 18,613 | 13,814 |
| Cash and cash equivalents | 122,665 | 139,020 | |
| Total current assets | 375,703 | 393,231 | |
| Total assets | 1,101,604 | 1,099,239 |
| IN € THOUSANDS | NOTE | March 31, 2020 | Sept 30, 2019 |
|---|---|---|---|
| Equity and liabilities | |||
| Issued capital | 247 | 247 | |
| Capital reserves | 225,848 | 225,848 | |
| Retained earnings | 290,514 | 283,423 | |
| Other reserves | 11 | (33,157) | (19,283) |
| Equity attributable to shareholders of Stabilus | 483,452 | 490,235 | |
| Non-controlling interests | 9,600 | 9,382 | |
| Total equity | 493,052 | 499,617 | |
| Financial liabilities | 12 | 291,155 | 308,761 |
| Other financial liabilities | 13 | 34,093 | 83 |
| Provisions | 14 | 3,631 | 3,565 |
| Pension plans and similar obligations | 15 | 50,667 | 59,893 |
| Deferred tax liabilities | 54,943 | 55,933 | |
| Total non-current liabilities | 434,489 | 428,235 | |
| Trade accounts payable | 74,390 | 90,992 | |
| Financial liabilities | 12 | 23,291 | 2,824 |
| Other financial liabilities | 13 | 17,636 | 10,096 |
| Current tax liabilities | 8,862 | 13,088 | |
| Provisions | 14 | 35,795 | 38,144 |
| Other liabilities | 16 | 14,089 | 16,243 |
| Total current liabilities | 174,063 | 171,387 | |
| Total liabilities | 608,552 | 599,622 | |
| Total equity and liabilities | 1,101,604 | 1,099,239 | |
for the six months ended March 31, 2020 (unaudited)
| Changes in Equity | T _ 018 | |||||||
|---|---|---|---|---|---|---|---|---|
| IN € THOUSANDS | NOTE | Issued capital |
Capital reserves |
Retained earnings |
Other reserves |
Equity attributable to shareholders of Stabilus |
Non controlling interests |
Total equity |
| Balance as of Sept 30, 2018 | 247 | 225,848 | 225,090 | (24,612) | 426,573 | (50) | 426,523 | |
| Effects of IFRS 9 | – | – | 834 | – | 834 | – | 834 | |
| Balance as of Oct 1, 2018 | 247 | 225,848 | 225,924 | (24,612) | 427,407 | (50) | 427,357 | |
| Profit / (loss) for the period | – | – | 38,172 | – | 38,172 | (65) | 38,107 | |
| Other comprehensive income / (expense) |
11 | – | – | – | 7,115 | 7,115 | – | 7,115 |
| Total comprehensive income for the period |
– | – | 38,172 | 7,115 | 45,287 | (65) | 45,222 | |
| Dividends | – | – | (24,700) | – | (24,700) | (62) | (24,762) | |
| Balance as of March 31, 2019 | 247 | 225,848 | 239,396 | (17,497) | 447,994 | (177) | 447,817 | |
| Balance as of Sept 30, 2019 | 247 | 225,848 | 283,423 | (19,283) | 490,235 | 9,382 | 499,617 | |
| Profit / (loss) for the period | – | – | 34,245 | – | 34,245 | 234 | 34,479 | |
| Other comprehensive income / (expense) |
11 | – | – | – | (13,874) | (13,874) | – | (13,874) |
| Total comprehensive income for the period |
– | – | 34,245 | (13,874) | 20,371 | 234 | 20,605 | |
| Dividends | – | – | (27,170) | – | (27,170) | – | (27,170) | |
| Change in ownership interest in subsidiaries without a change of control |
– | – | 16 | – | 16 | (16) | – | |
| Balance as of March 31, 2020 | 247 | 225,848 | 290,514 | (33,157) | 483,452 | 9,600 | 493,052 |
for the six months ended March 31, 2020 (unaudited)
| Six months ended March 31, | |||
|---|---|---|---|
| IN € THOUSANDS | NOTE | 2020 | 2019 |
| Profit / (loss) for the period | 34,479 | 38,107 | |
| Income tax expense | 16,604 | 16,016 | |
| Net finance result | 3 / 4 | 791 | 3,017 |
| Interest received | 3 / 4 | 327 | 138 |
| Depreciation and amortization (incl. impairment losses) | 34,860 | 28,367 | |
| Gains / losses from the disposal of assets | (17) | (75) | |
| Changes in inventories | (4,355) | (4,460) | |
| Changes in trade accounts receivable | 15,965 | (5,755) | |
| Changes in trade accounts payable | (16,602) | (6,864) | |
| Changes in other assets and liabilities | (8,916) | 2,273 | |
| Changes in provisions | (2,973) | (2,651) | |
| Income tax payments | 20 | (26,526) | (19,965) |
| Cash flow from operating activities | 43,637 | 48,148 | |
| Proceeds from disposal of property, plant and equipment | 324 | 667 | |
| Purchase of intangible assets | 7 | (8,736) | (6,258) |
| Purchase of property, plant and equipment | 6 | (14,454) | (23,517) |
| Acquisition of assets and liabilities within the business combination, net of cash acquired |
(1,062) | – | |
| Cash flow from investing activities | (23,928) | (29,108) | |
| Receipts from financial liabilities | 21,609 | – | |
| Payments for redemption of financial liabilities | (838) | (442) | |
| Payments for redemption of senior facilities | (20,000) | – | |
| Payments for lease liabilities | (4,123) | (201) | |
| Dividends paid | (27,170) | (24,700) | |
| Dividends paid to non-controlling interests | – | (62) | |
| Payments for interest | 20 | (2,487) | (1,808) |
| Cash flow from financing activities | (33,009) | (27,213) | |
| Net increase / (decrease) in cash and cash equivalents | (13,300) | (8,173) | |
| Effect of movements in exchange rates on cash held | (3,055) | 1,703 | |
| Cash and cash equivalents as of beginning of the period | 139,020 | 143,000 | |
| Cash and cash equivalents as of end of the period | 122,665 | 136,530 |
as of and for the three and six months ended March 31, 2020
Stabilus S.A., Luxembourg, hereinafter also referred to as "Stabilus" or the "Company" is a public limited liability company (société anonyme) incorporated in Luxembourg and governed by Luxembourg law. The Company is registered with the Luxembourg Trade and Companies Register (Registre de Commerce et des Sociétés Luxembourg) under No. B151589 and its registered office is located at 2, rue Albert Borschette, L-1246 Luxembourg, Grand Duchy of Luxembourg. The Company was founded under the name Servus HoldCo S.à r. l. on February 26, 2010.
The Company´s fiscal year is from October 1 to September 30 of the following year (twelve-month period). The consolidated financial statements of Stabilus S. A. include Stabilus and its subsidiaries (hereafter also referred to as "Stabilus Group" or the "Group").
The Stabilus Group is a leading manufacturer of gas springs and dampers, as well as electric tailgate opening and closing equipment. The products are used in a wide range in automotive and industrial applications, as well as in the furniture industry. Typically the products are used to support the lifting and lowering or dampening of movements. As world market leader for gas springs, the Group ships to all key vehicle manufacturers. Various Tier 1 suppliers of the global car industry as well as large technical focused distributors further diversify the Group's customer base.
The accompanying condensed interim consolidated financial statements as of March 31, 2020, present the operations of the Company and its subsidiaries. They have been prepared in accordance with IAS 34 "Interim Financial Reporting" and comply with the International Financial Reporting Standards (IFRS) as adopted by the European Union. Selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the financial position and performance of the Stabilus Group since the last annual consolidated financial statements as of and for the fiscal year ended September 30, 2019. As the interim consolidated financial statements are presented in considerably less detail than complete financial statements, they should be read in conjunction with the Company's consolidated financial statements as of September 30, 2019. The interim consolidated financial statements and the interim group management report have not been audited or reviewed by our group auditor.
The accounting policies adopted in the preparation of the condensed interim consolidated financial statements are consistent with those followed in the preparation of the Group's annual financial statements for the fiscal year ended September 30, 2019, with the exception of the first-time application of IFRS 16 "Leases" as of October 1, 2019. The Stabilus Group has applied the modified retrospective method for the transition to IFRS 16. The assumptions made for the preparation of the interim consolidated financial statements are based on management's best estimates as of the reporting date. In interim periods, income tax expense is based on management's best estimate of the weighted average effective annual income tax rate that is expected for the full financial year. Further information regarding the effects resulting from possible changes in such estimates can be found in the respective parts of the notes if considered material.
IFRS 16 Leases changes the regulations for the recognition, measurement, presentation and disclosure of leases. IFRS 16 supersedes the previous standard for lease accounting (IAS 17 Leases) and the relating interpretations (IFRIC 4 Lease Arrangement, SIC-15 Operating Leases - Incentives and SIC-27 Evaluation of Lease Transactions).
For the Stabilus Group, IFRS 16 is applied for the first-time in fiscal year 2020 starting October 1, 2019, by using the modified retrospective transition method. The prior period figures were not restated. In addition, only leasing agreements previously identified under IAS 17 or IFRIC 4 are accounted for according to IFRS 16 by the Stabilus Group. In the ordinary course of business, the Stabilus Group is the lessee of property, plant and equipment (e.g. IT hardware, cars, and other machinery and equipment). A software for contract data management was introduced by the Stabilus Group.
Based on the initial recognition, the effects resulted in an increase of the balance sheet total. As part of the transition to IFRS 16, right-of-use assets in the amount of €43.7 million and corresponding lease liabilities were recognized in the consolidated financial statements for fiscal year 2020. The Stabilus Group decided to recognize the right-of-use assets in the same amount as the lease liabilities. Based on the lease agreements as of October 1, 2019, the increase of the depreciation on the right-of-use assets (RoU) for financial year 2020 is expected to amount to €7.7 million, and the corresponding interest expense on the lease liabilities is expected to amount to €1.5 million. The effects on the consolidated statement of cash flows are: Increase in the cash flow from financing activities amounting to €4.9 million. This increase is attributable to the payments for lease liabilities of €(4.2) million and to the interest expenses from lease liabilities amounting to €(0.7) million. The cash flow from operating activities is reduced accordingly.
The Stabilus Group decided to use the practical expedients outlined in IFRS 16 (e.g. short-term leases and low-value leases). Therefore, short-term leases (leases with a lease term less than 12 month) can be classified in an amount of €(0.9) million. Leases of low-value (e.g. printer and copier) amounted to €(0.8) million. There is no consideration of leases of intangible assets. Furthermore, the Stabilus Group only shows a distinction between lease and non-lease components for real estate. For all non-movable goods, there is no distinction between lease and non-lease components. The portfolio application is used by the Stabilus Group for leases with similar characteristics.
The main impact of the transition to IFRS 16 resulted in the assessment of the lease term options from real estate and vehicles (e.g. cars, forklifts). Taking into account renewal options (particularly for real estate) that are expected to be exercised with reasonable certainty, an amount of €17.4 million could be measured. The lease liabilities were discounted as of October 1, 2019, using the incremental borrowing rate. The weighted average interest rate being used as of October 1, 2019, was 3.86%.
The following tables set out the effects of the first-time application of IFRS 16:
| IN € MILLIONS | as of Sept 30, 2019 | Effects of IFRS 16 first-time application |
as of Oct 1, 2019 |
|---|---|---|---|
| Assets | |||
| Property, plant and equipment | 199.9 | 43.7 | 243.6 |
| Other non-current assets | 506.1 | 506.1 | |
| Current assets | 393.2 | 393.2 | |
| Total Assets | 1,099.2 | 43.7 | 1,142.9 |
| Equity and liabilities | |||
| Equity | 499.6 | 499.6 | |
| Other non-current liabilities | 428.1 | 428.1 | |
| Other financial liabilities (non-current) | 0.1 | 36.9 | 37.0 |
| Other current liabilities | 161.3 | 161.3 | |
| Other financial liabilities (current) | 10.1 | 6.8 | 16.9 |
| Total equity and liabilities | 1,099.2 | 43.7 | 1,142.9 |
IN € MILLIONS Six months ended March 31, 2020 Effets of IFRS 16 first-time application Six months ended March 31, 2020 without application of IFRS 16 Six months ended March 31, 2019 without application of IFRS 16 Profit from operating activities (EBIT) 51.9 0.7 51.2 57.1 Net financial result (0.8) (0.7) (0.1) (3.0) Profit / (loss) for the period 34.5 – 34.5 38.1
| IN € MILLIONS | Six months ended March 31, 2020 |
Effets of IFRS 16 first-time application |
Six months ended March 31, 2020 without applica tion of IFRS 16 |
Six months ended March 31, 2019 without applica tion of IFRS 16 |
|---|---|---|---|---|
| Cash flow from operating activities | 43.6 | (4.9) | 38.7 | 48.1 |
| Cash flow from investing activities | (23.9) | – | (23.9) | (29.1) |
| Cash flow from financing activities | (33.0) | 4.9 | (28.1) | (27.2) |
| Reconciliation of lease liabilities | T_023 |
|---|---|
| IN € MILLIONS | as of Oct 1, 2019 |
| Operating rental and lease agreements as of Sept 30, 2019 | 32.7 |
| Lease liabilities resulting from finance leases as of Sept 30, 2019 | 0.5 |
| Short-term leases with a lease term < 12 months | (0.9) |
| Leases of low value | (0.8) |
| Other 1) | 1.1 |
| Extension and termination options reasonably certain to be exercised | 17.4 |
| Operating rental and lease agreements as of Oct 1, 2019 | 50.1 |
| Discounted at the incremental borrowing rate as of Oct 1, 2019 | (6.4) |
| Lease liabilities resulting from the initial application of IFRS 16 as of Oct 1, 2019 | 43.7 |
1) Commitments for leases that had not commenced on September 30, 2019.
These condensed interim consolidated financial statements as of and for the three and six months ended March 31, 2020, comprise the consolidated statement of comprehensive income for the three and six months ended March 31, 2020, the consolidated statement of financial position as of March 31, 2020, the consolidated statement of changes in equity for the six months ended March 31, 2020, the consolidated statement of cash flows for the six months ended March 31, 2020, and explanatory notes to the condensed interim consolidated financial statements. The condensed interim consolidated financial statements are prepared in euros (€) rounded to the nearest thousand. Due to rounding, numbers presented may not add up precisely to the totals provided.
The condensed interim consolidated financial statements were authorized for issue by the Management Board on April 30, 2020.
The Group's revenue developed as follows:
Three months ended March 31, Six months ended March 31, IN € THOUSANDS 2020 2019 2020 2019 EMEA Automotive Gas Spring 33,289 38,424 65,540 73,833 Automotive Powerise® 22,097 24,629 45,905 49,262 Industrial 2) 62,972 62,914 117,136 115,451 Total EMEA 1) 118,358 125,967 228,581 238,546 Americas Automotive Gas Spring 25,788 30,421 51,652 58,400 Automotive Powerise® 29,107 32,042 62,125 64,524 Industrial 2) 27,780 28,079 59,252 52,939 Total Americas 1) 82,675 90,542 173,029 175,863 APAC Automotive Gas Spring 12,509 15,241 32,294 33,252 Automotive Powerise® 3,545 3,446 10,328 8,367 Industrial 2) 3,899 3,893 8,110 8,013 Total APAC 1) 19,953 22,580 50,732 49,632 Stabilus Group Total Automotive Gas Spring 71,586 84,086 149,486 165,485 Total Automotive Powerise® 54,749 60,117 118,358 122,153 Total Industrial 2) 94,651 94,886 184,498 176,403 Revenue 1) 220,986 239,089 452,342 464,041
1) Revenue breakdown by location of Stabilus company (i.e. "billed-from view").
2) As of October 1, 2019, our Vibration & Velocity business and Industrial / Capital Goods business unit were combined into Industrial business.
The presentation of prior-year figures was changed accordingly.
| Three months ended March 31, | Six months ended March 31, | |||
|---|---|---|---|---|
| IN € THOUSANDS | 2020 | 2019 | 2020 | 2019 |
| Interest income on loans and financial receivables | 164 | 56 | 301 | 129 |
| Net foreign exchange gain | 5,612 | 1,168 | 5,004 | 1,318 |
| Other interest income | 16 | 5 | 26 | 9 |
| Finance income | 5,792 | 1,229 | 5,331 | 1,456 |
Three months ended March 31, Six months ended March 31, IN € THOUSANDS 2020 2019 2020 2019 Interest expenses on financial liabilities (2,903) (2,148) (4,909) (4,295) Interest expenses lease liabilities (372) (1) (751) (1) Other interest expenses (341) (90) (462) (177) Finance costs (3,616) (2,239) (6,122) (4,473)
The weighted average number of shares used for the calculation of earnings per share in the six months ended March 31, 2020 and 2019, is set out in the following table:
| Weighted average number of shares | T _ 027 | ||||
|---|---|---|---|---|---|
| DATE | Number of days | Transaction | Change | Total shares | Total shares (time-weighted) |
| October 1, 2018 | 181 | – | – | 24,700,000 | 24,700,000 |
| March 31, 2019 | – | – | 24,700,000 | 24,700,000 | |
| October 1, 2019 | 182 | – | – | 24,700,000 | 24,700,000 |
| March 31, 2020 | – | – | 24,700,000 | 24,700,000 |
The earnings per share for the six months ended March 31, 2020 and 2019, were as follows:
| Six months ended March 31, | ||
|---|---|---|
| IN € THOUSAND | 2020 | 2019 |
| Profit / (loss) attributable to shareholders of Stabilus | 34,245 | 38,172 |
| Weighted average number of shares | 24,700,000 | 24,700,000 |
| Earnings per share (in €) | 1.39 | 1.55 |
Basic and diluted earnings per share are calculated by dividing the profit attributable to the shareholders of the Company by the weighted average number of shares outstanding.
| Property, plant and equipment - Carrying amount | T _ 029 | |
|---|---|---|
| IN € THOUSANDS | March 31, 2020 | Sept 30, 2019 |
| Land, equivalent rights to real property | 17,540 | 17,739 |
| Building and land improvements | 38,862 | 42,135 |
| Technical equipment and machinery | 89,285 | 95,411 |
| Other tangible equipment | 16,476 | 18,739 |
| Construction in progress | 28,303 | 25,922 |
| RoU – Building and land improvements | 36,705 | – |
| RoU – Technical equipment and machinery | 2,186 | – |
| RoU – Other tangible equipment | 3,010 | – |
| Total | 232,367 | 199,946 |
Property, plant and equipment as of March 31, 2020, amounted to €232,367 thousand (Sept 30, 2019: €199,946 thousand). The first-time application of IFRS 16 (Leases), which required the recognition of right-of-use assets from operating leases, amounts to €43.7 million.
The Group invested to property, plant and equipment in the first six months of fiscal year 2020 amounting to €12,056 thousand (H1 FY2019: €23,533 thousand). In addition, the increase due to new leasing contracts is amounting to €2,654 thousand. In the first six months of fiscal year 2020, total depreciation expense for tangible assets amounted to €(18,215) thousand (H1 FY2019: €(12,965) thousand), thereof €(4,123) thousand from the first-time application of IFRS 16 (Leases).
Prepayments by the Stabilus Group for property, plant and equipment of €2,464 thousand (Sept 30, 2019: €66 thousand) are included in other non-current assets.
Disposals occurred only in the ordinary course of business. The net value of disposed property, plant and equipment in the first six months of fiscal year 2020 amounted to €(85) thousand (H1 FY2019: €(403) thousand).
The Group did not recognize impairment losses on property, plant and equipment in the first six months of fiscal year 2020 (H1 FY2019: €0).
| IN € THOUSANDS | March 31, 2020 | Sept 30, 2019 |
|---|---|---|
| Development cost | 34,029 | 36,328 |
| Development cost under construction | 22,481 | 19,032 |
| Software | 4,179 | 4,574 |
| Patents | 1,553 | 1,642 |
| Customer Relationship | 181,855 | 188,853 |
| Technology | 14,852 | 16,668 |
| Tradename | 8,303 | 9,062 |
| Total | 267,252 | 276,159 |
Other intangible assets as of March 31, 2020, amounted to €267,252 thousand (Sept 30, 2019: €276,159 thousand). Additions to intangible assets in the first six months of fiscal year 2020 amounted to €(8,672) thousand (H1 FY2019: €(6,208) thousand) and mainly comprised capitalized development costs (less related customer contributions) of €8,297 thousand (H1 FY2019: €5,863 thousand). Borrowing costs capitalized in the first six months of fiscal year 2020 amounted to €63 thousand (H1 FY2019: €50 thousand).
In the first six months of fiscal year 2020, total amortization expense on intangible assets amounted to €(16,645) thousand (H1 FY2019: €(15,403) thousand). Amortization expenses on development costs include impairment losses of €(238) thousand (H1 FY2019: €(79) thousand) due to withdrawal of customers from the respective projects and change in expected benefits.
No significant disposals have been recognized.
| March 31, 2020 | Sept 30, 2019 | |||||
|---|---|---|---|---|---|---|
| IN € THOUSANDS | Current | Non-current | Total | Current | Non-current | Total |
| Other miscellaneous | 4,061 | – | 4,061 | 4,743 | – | 4,743 |
| Other financial assets | 4,061 | – | 4,061 | 4,743 | – | 4,743 |
Other financial assets as of March 31, 2020, comprised assets related to the sale of trade accounts receivable amounting to €2,603 thousand (Sept 30, 2019: €2,900 thousand). In addition €1,458 thousand (Sept 30, 2019: €1,843 thousand) relates to the contingent consideration from the business combination with General Aerospace GmbH.
| Other assets | T _ 032 | |||||
|---|---|---|---|---|---|---|
| March 31, 2020 | Sept 30, 2019 | |||||
| IN € THOUSANDS | Current | Non-current | Total | Current | Non-current | Total |
| VAT | 5,585 | – | 5,585 | 4,071 | – | 4,071 |
| Prepayments | 3,215 | 2,464 | 5,679 | 2,438 | 66 | 2,504 |
| Deferred charges | 6,896 | – | 6,896 | 5,394 | – | 5,394 |
| Other miscellaneous | 2,917 | 1,703 | 4,620 | 1,911 | 1,645 | 3,556 |
| Other assets | 18,613 | 4,167 | 22,780 | 13,814 | 1,711 | 15,525 |
Non-current prepayments comprise prepayments on property, plant and equipment.
| IN € THOUSANDS | March 31, 2020 | Sept 30, 2019 |
|---|---|---|
| Raw materials and supplies | 49,089 | 48,548 |
| Finished products | 26,226 | 23,726 |
| Work in progress | 14,951 | 15,361 |
| Merchandise | 14,428 | 12,704 |
| Inventories | 104,694 | 100,339 |
The development of the Group's equity is presented in the Statement of Changes in Equity.
Other reserves comprise all foreign currency differences arising from the translation of the financial statements of foreign operations and unrealized actuarial gains and losses. The following table shows the changes in other reserves recognized in equity through other comprehensive income as well as the income tax recognized in equity through other comprehensive income:
| Unrealized actuarial gains and losses |
Unrealized gains / (losses) from foreign currency translation |
Total |
|---|---|---|
| (10,430) | (14,182) | (24,612) |
| (9,211) | 11,753 | 2,542 |
| 2,787 | – | 2,787 |
| (6,424) | 11,753 | 5,329 |
| – | – | – |
| (16,854) | (2,429) | (19,283) |
| 8,660 | (19,914) | (11,254) |
| (2,620) | – | (2,620) |
| 6,040 | (19,914) | (13,874) |
| – | – | – |
| (10,814) | (22,343) | (33,157) |
The financial liabilities comprise the following items:
| March 31, 2020 | Sept 30, 2019 | |||||
|---|---|---|---|---|---|---|
| IN € THOUSANDS | Current | Non-current | Total | Current | Non-current | Total |
| Senior facilities | – | 281,635 | 281,635 | – | 298,501 | 298,501 |
| Other facilities | 23,291 | 9,520 | 32,811 | 2,824 | 10,260 | 13,084 |
| Financial liabilities | 23,291 | 291,155 | 314,446 | 2,824 | 308,761 | 311,585 |
Stabilus repaid of its senior facility €50.0 million on August 31, 2016, €10.0 million on December 31, 2016, €2.5 million on March 31, 2017, €50.0 million on September 30, 2017, €6.4 million on March 28, 2018, €21.1 million on September 27, 2019 and €20.0 million on February 27, 2020, and reduced the outstanding nominal amount to €295.0 million as at March 31, 2020. The Group´s liability under the senior facility agreement (the remaining €295.0 million term loan) is measured at amortized cost under consideration of transaction costs and the adjustment of the carrying value using the effective interest rate method. The adjustment of the carrying value of the term loan facility reflects the change in estimated future cash flows discounted with the original effective interest rate due to a decreased margin based on the improved net leverage ratio of the Group.
As of March 31, 2020, the Group had drawn €21.6 million under the committed €70 million revolving credit facility. The Group utilized €1.0 million out of the €70.0 million revolving credit facility to secure existing guarantees.
| IN € THOUSANDS Liabilities to employees Social security contribution Lease liabilities (PY: Finance lease obligation) |
March 31, 2020 | Sept 30, 2019 | |||||
|---|---|---|---|---|---|---|---|
| Current | Non-current | Total | Current | Non-current | Total | ||
| 7,511 | – | 7,511 | 6,550 | – | 6,550 | ||
| 2,614 | – | 2,614 | 3,105 | – | 3,105 | ||
| 7,511 | 34,093 | 41,604 | 441 | 83 | 524 | ||
| Other financial liabilities | 17,636 | 34,093 | 51,729 | 10,096 | 83 | 10,179 |
The increase is especially due to the effects resulting from first-time application of IFRS 16 (Leases) amounting to €43.7 million, thereof €36.9 million as non-current and €6.8 million as current. The liabilities to employees mainly comprise outstanding salaries and wages.
| Sept 30, 2019 | ||||||
|---|---|---|---|---|---|---|
| Current | Non-current | Total | Current | Non-current | Total | |
| 24 | 156 | 180 | 33 | 153 | 186 | |
| 1,175 | 2,019 | 3,194 | 1,037 | 1,946 | 2,983 | |
| 11,979 | – | 11,979 | 11,332 | – | 11,332 | |
| 671 | 1,123 | 1,794 | 827 | 1,130 | 1,957 | |
| 2,228 | – | 2,228 | 3,008 | – | 3,008 | |
| 77 | – | 77 | 97 | – | 97 | |
| 14,697 | – | 14,697 | 16,806 | – | 16,806 | |
| 4,944 | 333 | 5,277 | 5,004 | 336 | 5,340 | |
| 35,795 | 3,631 | 39,426 | 38,144 | 3,565 | 41,709 | |
| March 31, 2020 |
The provision for environmental protection, in particular long-term bioremediation of the former Colmar US site, decreased in the first six months of fiscal year 2020 from €1,957 thousand to €1,794 thousand. This provision is to cover the contractor expense to finish the bioremediation program in the next years. Further information regarding this matter can be found in the 2019 Annual Report.
The provision for warranties decreased from €16,806 thousand as of September 30, 2019, to €14,697 thousand as of March 31, 2020. This decrease is due to settlement of various warranty cases.
The Group's liability for pension plans and similar obligations decreased from €59,893 thousand as of September 30, 2019, by €9,226 thousand to €50,667 thousand as of March 31, 2020. The discount rate was 1.88% on March 31, 2020, versus 0.93% on September 30, 2019.
The following table sets out the breakdown of the Group's other current and non-current liabilities:
| March 31, 2020 | Sept 30, 2019 | |||||
|---|---|---|---|---|---|---|
| IN € THOUSANDS | Current | Non-current | Total | Current | Non-current | Total |
| Advanced payments received | 2,602 | – | 2,602 | 2,278 | – | 2,278 |
| Vacation expenses | 4,755 | – | 4,755 | 4,066 | – | 4,066 |
| Other personnel-related expenses | 3,990 | – | 3,990 | 6,611 | – | 6,611 |
| Outstanding costs | 2,275 | – | 2,275 | 2,908 | – | 2,908 |
| Miscellaneous | 467 | – | 467 | 380 | – | 380 |
| Other liabilities | 14,089 | – | 14,089 | 16,243 | – | 16,243 |
Contingent liabilities are possible obligations from past events whose existence has yet to be confirmed by the occurrence or non-occurrence of uncertain future events that are not wholly within the control of the entity. If the future outflow of resources for the settlement of a possible obligation is considered more likely than not, a provision is recognized on the face of the financial statements. Besides the possible obligations for which a provision has been recognized on the balance sheet no contingent liabilities could be identified as of the reporting date that were considered to be material in nature.
A detailed description of the guarantees the Group has issued and can be found in the 2019 Annual Report.
| IN € THOUSANDS | March 31, 2020 | Sept 30, 2019 |
|---|---|---|
| Capital commitments for fixed and other intangible assets | 3,545 | 4,750 |
| Total | 3,545 | 4,750 |
From October 1, 2019, obligations from operating leases have been recognized in accordance with the requirements of IFRS 16 (Leases) and can be found in Note 6.
The capital commitments for fixed and other intangible assets decreased from €4,750 thousand as of September 30, 2019, to €3,545 thousand as of March 31, 2020.
The following table shows the carrying amounts and fair values of the Group's financial instruments. The fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
| March 31, 2020 | Sept 30, 2019 | ||||
|---|---|---|---|---|---|
| IN € THOUSANDS | Measurement category |
acc. to IFRS 9 Carrying amount | Fair value 1) Carrying amount | Fair value 1) | |
| Trade accounts receivables | AC | 114,363 | – | 130,328 | – |
| Cash | AC | 122,665 | – | 139,020 | – |
| Other financial assets | AC | 4,061 | – | 4,743 | – |
| Total financial assets | 241,089 | – | 274,091 | – | |
| Financial liabilities | FLAC | 314,446 | 309,272 | 311,585 | 330,918 |
| Trade accounts payable | FLAC | 74,390 | – | 90,992 | – |
| Lease liabilities (PY: Finance lease liabilities) | – | 41,604 | – | 524 | 1,786 |
| Total financial liabilities | 430,440 | 309,272 | 403,101 | 332,704 | |
| Aggregated according to category: | |||||
| Financial assets measured at amortized cost (AC) | 241,089 | – | 274,091 | – | |
| Financial liabilities measured at amortized cost (FLAC) |
388,836 | 309,272 | 402,577 | 330,918 | |
1) The simplification provision in accordance of IFRS 7.29 has been applied with respect to fair value disclosures.
If not presented separately, the carrying amount of the financial instrument reflects a reasonable approximation of its fair value.
The following table provides an overview of the classification of financial instruments presented above in the fair value hierarchy, except for financial instruments with fair values corresponding to the carrying amounts (i.e. trade accounts receivable and payable, cash and other financial liabilities).
| Financial instruments | T _ 041 | |||||||
|---|---|---|---|---|---|---|---|---|
| March 31, 2020 | Sept 30, 2019 | |||||||
| IN € THOUSANDS | Total | Level 1 1) | Level 2 2) | Level 3 3) | Total | Level 1 1) | Level 2 2) | Level 3 3) |
| Financial liabilities | ||||||||
| Senior facilities | 276,461 | – | 276,461 | – | 317,834 | – | 317,834 | – |
| Other facilities | 32,811 | – | 32,811 | – | 13,084 | – | 13,084 | |
| Finance lease liabilities | – | – | – | – | 1,786 | – | – | 1,786 |
1) Fair value measurement based on quoted prices (unadjusted) in active markets for these or identical instruments.
2) Fair value measurement based on inputs that are observable on active markets either directly (i.e. as prices) or indirectly (i.e. derived from prices).
3) Fair value measurement based on inputs that are not observable market data.
The determination of the fair value of the senior facilities is based on the discounted cash flow model, under which the projected cash flows are discounted to their present value as of the valuation date. The cash flows are based on the expected interest and principal payments and the discount rate is derived from market-observed CDS spreads for similar industrial companies. A change in the amount or timing of the estimated cash flows or in the CDS spreads observed in the market would consequently result in a change of the instruments calculated fair value.
There were no transfers between Level 1, Level 2 and Level 3 of the fair value hierarchy during the reporting period. It is the Group's policy to recognize transfers between different levels of the fair value hierarchy as of the date of the event or a change in the circumstances that caused the transfer.
All aspects of the Group's financial risk management objectives and policies are consistent with those disclosed in the consolidated financial statements as of and for the fiscal year ended September 30, 2019.
The statement of cash flows is prepared in compliance with IAS 7. The statement of cash flows of the Stabilus Group shows the development of the cash flows from operating, investing and financing activities. Inflows and outflows from operating activities are presented in accordance with the indirect method and those from investing and financing activities by the direct method.
The cash funds reported in the statement of cash flows comprise all liquid funds, cash balances and cash at banks reported in the statement of financial position.
Interest payments in the first half of fiscal year 2020 amounting to €2,487 thousand (H1 FY2019: €1,808 thousand) are reflected in cash outflows from financing activities. Income tax payments in the same period amounting to €(26,526) thousand (H1 FY2019: €(19,965) thousand) are recognized in cash flows from operating activities.
The Group is organized and managed primarily on a regional level. The three reportable operating segments of the Group are EMEA (Europe, Middle East and Africa), Americas (North and South America) and APAC (Asia Pacific). The product portfolio is largely similar in these three regional segments.
The Group measures the performance of its operating segments through a measure of segment profit or loss (key performance indicator) which is referred to as "adjusted EBIT". Adjusted EBIT represents EBIT, adjusted for exceptional non-recurring items (e.g. restructuring or one-time advisory costs) and depreciation / amortization of fair value adjustments from purchase price allocations (PPAs).
The presentation of prior year figures is adjusted to provide comparative information already reflecting the new structure.
Segment information for the six months ended March 31, 2020 and 2019 is as follows:
| EMEA | Americas | APAC | ||||
|---|---|---|---|---|---|---|
| Six months ended March 31, | Six months ended March 31, | Six months ended March 31, | ||||
| IN € THOUSANDS | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 |
| External revenue 1) | 228,581 | 238,546 | 173,029 | 175,862 | 50,732 | 49,633 |
| Intersegment revenue 1) | 14,092 | 14,135 | 11,526 | 13,282 | 78 | 57 |
| Total revenue 1) | 242,673 | 252,681 | 184,555 | 189,144 | 50,810 | 49,690 |
| Depreciation and amortization (incl. impairment losses) |
(18,866) | (14,363) | (8,432) | (6,517) | (4,077) | (2,847) |
| EBIT | 25,022 | 31,304 | 26,550 | 25,828 | 3,787 | 4,648 |
| Adjusted EBIT | 28,954 | 34,275 | 28,273 | 27,446 | 3,865 | 4,725 |
| Total segments | Other / Consolidation | Stabilus Group | ||||
| Six months ended March 31, | Six months ended March 31, | Six months ended March 31, | ||||
| IN € THOUSANDS | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 |
| External revenue 1) | 452,342 | 464,041 | – | – | 452,342 | 464,041 |
| Intersegment revenue 1) | 25,696 | 27,474 | (25,696) | (27,474) | – | – |
| Total revenue 1) | 478,038 | 491,515 | (25,696) | (27,474) | 452,342 | 464,041 |
| Depreciation and amortization (incl. impairment losses) |
(31,375) | (23,727) | (3,485) | (4,640) | (34,860) | (28,367) |
| EBIT | 55,359 | 61,780 | (3,485) | (4,640) | 51,874 | 57,140 |
| Adjusted EBIT | 61,092 | 66,446 | – | – | 61,092 | 66,446 |
1) Revenue breakdown by location of Stabilus company (i.e. "billed-from view").
The column "Other / Consolidation" includes the effects from the purchase price allocation for the 2010 business combination. The effects from the purchase price allocations for the business combinations that occurred in 2016 and 2019 are included in the regions.
The following table sets out the reconciliation of the total segments' profit (adjusted EBIT) to profit before income tax.
| Six months ended March 31, | ||
|---|---|---|
| IN € THOUSANDS Other / consolidation Adjustments to EBIT Finance income Finance costs |
2020 | 2019 |
| Total segments' profit (adjusted EBIT) | 61,092 | 66,446 |
| – | – | |
| Group adjusted EBIT | 61,092 | 66,446 |
| (9,218) | (9,306) | |
| Profit from operating activities (EBIT) | 51,874 | 57,140 |
| 5,331 | 1,456 | |
| (6,122) | (4,473) | |
| Profit / (loss) before income tax | 51,083 | 54,123 |
According to IAS 24, the reporting entity has to disclose specific information of transactions between the Group and other related parties. Balances and transactions between the Company and its fully consolidated subsidiaries, which constitute related parties within the meaning of IAS 24, have been eliminated in the course of consolidation and are therefore not commented on in this note. As to our knowledge no individual shareholder of Stabilus S.A. can exercise significant influence over the Company or the Group. The consolidated financial statements do not include any associated companies that are accounted for using the equity method, and none of the group entities can exercise significant influence over entities that are not included in the scope of consolidation.
Related parties of the Stabilus Group primarily comprise the Stabilus Group's management, which also holds an investment in the Company. The remuneration of and other transactions with key managers of the Company constitute related party transactions pursuant to IAS 24.
As of April 30, 2020, there were no further events or developments that could have materially affected the measurement and presentation of Group's assets and liabilities as of March 31, 2020.
To the best of our knowledge, and in accordance with the applicable accounting principles for interim financial reporting, the interim Consolidated Financial Statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the corporation, and the interim management report of the corporation includes a fair review of the development and performance of the business and the position of the corporation, together with a description of the principal opportunities and risks associated with the expected development of the corporation for the remaining months of the fiscal year.
Luxembourg, April 30, 2020
Management Board
Dr. Michael Büchsner Mark Wilhelms Andreas Schröder Andreas Sievers
| T _ 44 |
|---|
| DATE 1)2) | PUBLICATION / EVENT |
|---|---|
| May 4, 2020 | Publication of the second-quarter results for fiscal year 2020 (Interim Report Q2 FY2020) |
| August 3, 2020 | Publication of the third-quarter results for fiscal year 2020 (Quarterly Statement Q3 FY2020) |
| November 13, 2020 | Publication of preliminary financial results for fiscal year 2020 |
| December 11, 2020 | Publication of full year results for fiscal year 2020 (2020 Annual Report) |
1) We cannot rule out changes of dates. We recommend checking them on our website in the Investors / Financial Calendar section (www.ir.stabilus.com). 2) Please note that our fiscal year (FY) comprises a twelve-month period from October 1 until September 30 of the following calendar year. E.g. the fiscal year 2020 comprises a year ending September 30, 2020.
This interim report contains forward-looking statements that relate to the current plans, objectives, forecasts and estimates of the management of Stabilus S.A. These statements take into account only information that was available up to and including the date that this interim report was prepared. The management of Stabilus S.A. makes no guarantee that these forward-looking statements will prove to be right. The future development of Stabilus S.A. and its subsidiaries and the results that are actually achieved are subject to a variety of risks and uncertainties which could cause actual events or results to differ significantly from those reflected in the forward-looking statements. Many of these factors are beyond the control of Stabilus S.A. and its subsidiaries and therefore cannot be precisely predicted. Such factors include, but are not limited to, changes in economic conditions and the competitive situation, changes in the law, interest rate or exchange rate fluctuations, legal disputes and investigations, and the
availability of funds. These and other risks and uncertainties are set forth in the Group Management Report. However, other factors could also have an adverse effect on our business performance and results. Stabilus S.A. neither intends nor assumes any separate obligation to update forward-looking statements or to change these to reflect events or developments that occur after the publication of this interim report.
Certain numbers in this interim report have been rounded up or down. There may therefore be discrepancies between the actual totals of the individual amounts in the tables and the totals shown as well as between the numbers in the tables and the numbers given in the corresponding analyses in the text of the interim report. All percentage changes and key figures in the Group Management Report were calculated using the underlying data in millions of euros rounded to one decimal place (€ millions).
Further information including news, reports and publications can be found in the Investors section of our website at www.ir.stabilus.com.
Phone: +352 286 770 21 Fax: +352 286 770 99 Email: [email protected]
2, RUE ALBERT BORSCHETTE, L-1246 LUXEMBOURG GRAND DUCHY OF LUXEMBOURG
WWW.STABILUS.COM
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.