AI Terminal

MODULE: AI_ANALYST
Interactive Q&A, Risk Assessment, Summarization
MODULE: DATA_EXTRACT
Excel Export, XBRL Parsing, Table Digitization
MODULE: PEER_COMP
Sector Benchmarking, Sentiment Analysis
SYSTEM ACCESS LOCKED
Authenticate / Register Log In

GESCO AG

Quarterly Report Feb 14, 2019

181_10-q_2019-02-14_babd5d77-afcf-4727-a574-689e067e368f.pdf

Quarterly Report

Open in Viewer

Opens in native device viewer

GESCO AG Quarterly Statement 2018/2019 1 April To 31 DEZEMBER 2018

OVERVIEW OF KEY POINTS

  • • BRISK DEMAND IN THE FIRST NINE MONTHS OF THE FINANCIAL YEAR, INCOMING ORDERS SHOW STRONG GROWTH
  • • SALES UP, EARNINGS INCREASE DISPROPORTIONATELY
  • • INCOMING ORDERS DOWN IN FOURTH QUARTER, SALES UP
  • • OUTLOOK FOR FULL YEAR CONFIRMED
  • • NEWLY ACQUIRED SOMMER & STRASSBURGER INCLUDED IN CONSOLIDATED INCOME STATEMENT ON A PRO RATA BASIS FOR THE FIRST TIME
  • • SUBSIDIARIES ADVANCE INTERNATIONALISATION

GESCO GROUP KEY FIGURES FOR THE FIRST NINE MONTHS OF THE 2018/2019 FINANCIAL YEAR

01.04. - 31.12. 1.-3. Quarter
2018/2019
1.-3. Quarter
2017/2018
Change
Incoming orders (€'000) 456,592 407,911 11.9 %
Sales (€'000) 424,582 404,350 5.0 %
EBITDA (€'000) 53,058 49,449 7.3 %
EBIT (€'000) 35,756 31,458 13.7 %
Earnings before tax (€'000) 34,136 29,915 14.1 %
Group net income after minority interest (€'000) 19,701 16,357 20.4 %
Earnings per share acc. to IFRS (€) 1.82 1.51 20.4 %
Employees (€'000) 2,669 2,482 7.5 %

DEAR SHAREHOLDERS,

Following a dynamic first half of the year, GESCO Group continued to see brisk demand in the third quarter. Incoming orders saw a double-digit increase in the first nine months of the financial year. Sales also rose, and key earnings figures increased at a disproportionately high rate. The vast majority of companies were able to generate growth, and three out of four segments posted an increase in incoming orders, sales and earnings. In the Mobility Technology segment, which was reduced in scale at the end of the previous financial year, incoming orders and sales fell as expected, but earnings rose significantly.

In the subsequent fourth quarter, which encompasses the operating months October to December 2018, sales increased to roughly € 145 million compared to € 142.8 million in the same period of the previous year, according to preliminary figures. Incoming orders stood at around € 135 million in the fourth quarter, following € 144.5 million in the previous year's period. Because the previous year's value also contained a major order of around € 10 million, we believe that the decline does not provide an indication of a sustained economic slowdown. As explained in the half-year interim report, some GESCO Group subsidiaries are feeling the impact of isolated reluctance by customers to make investments. Automakers in particular have been hesitant to place orders for capital goods such as machinery and tools. General economic sentiment deteriorated in the final months of 2018. With regard to the actual situation, however, we stand by the statement made at the end of the first half of the year: we do not currently see any specific signs of a significant decline in our operating business on a wider scale.

We rapidly integrated Sommer & Strassburger GmbH & Co. KG into the reporting structure and processes of GESCO Group over the past few months following its acquisition in August. One month of Sommer & Strassburger's business activities was included in the consolidated income statement on pro rata basis for the first time in the third quarter. As explained in the half-year interim report, the company will weigh the Group result down on a one-time basis in the year of its acquisition due to incidental acquisition costs and scheduled write-downs. The company will contribute a full financial year's worth of sales and earnings for the first time in financial year 2019/2020. Based on the information currently available, we confirm the outlook for the full financial year last specified in November 2018.

4

In recent months, some GESCO Group companies have continued advancing their internationalisation. Frank Walz- und Schmiedetechnik GmbH, for example, expanded its presence in Russia. For several years now, the company has been very successful in marketing its agricultural wear parts in Ukraine through a subsidiary. Its Russian subsidiary, which was founded in 2017, commenced its operating business in 2018 and is now marketing its products ex warehouse to customers in Russia. The Setter Group continues expanding its market-leading position in the field of paper sticks for hygiene articles and confectionery. Having succeeded in significantly expanding its market share in the US through licensees and its own subsidiary over a period of several years, the Setter Group founded a company in Mexico in 2018 with the aim of tapping the region from there. Dörrenberg Edelstahl GmbH has been very active in Asia for many years now, and operates subsidiaries in Singapore, Korea, China, and Taiwan. In 2018, Dörrenberg founded a subsidiary in the US in order to expand the sale and distribution of its high-alloyed tool steel there as well. So far, Dörrenberg has relied on sales partners in the US.

Regardless of the short-term fluctuations in economic development, we are taking such steps to strengthen the respective companies' position and expand international business while broadening the basis for future growth.

Wuppertal, February 2019

Ralph Rumberg Speaker of the Executive Board

SIGNIFICANT CHANGES TO THE SCOPE OF CONSOLIDATION

In August 2018, GESCO AG acquired 100 % of the shares in Sommer & Strassburger GmbH & Co. KG, Bretten, Germany, a developer and manufacturer of processing equipment for the pharmaceutical, food, water technology and chemical industries that generates sales of roughly € 20 million and employs approximately 140 members of staff. The company is included in the Production Process Technology segment. Sommer & Strassburger, along with its asset and liability items, has been included in the Group balance sheet since 30 September 2018. The company has been included in the consolidated income statement since September 2018. As a result, one month of its business activities has been included on a pro rata basis in this Group statement for the first nine months of financial year 2018/2019.

Protomaster GmbH, Wilkau-Haßlau, Germany, which was sold in December 2017, was still included in the previous year's figures. The company was deconsolidated on 30 November 2017. Protomaster was allocated to the Mobility Technology segment.

In this quarterly statement, Sommer & Strassburger was excluded from the figures on organic rates of change during the reporting period, whereas Protomaster GmbH was excluded from the figures on organic rates of change during the previous year's period.

BUSINESS PERFORMANCE

The financial years of GESCO AG and GESCO Group run from 1 April to 31 March of the following year, while the financial years of the subsidiaries coincide with the calendar year. This interim statement for the first nine months of financial year 2018/2019 therefore encompasses the operating months January to September 2018 of the Group's subsidiaries.

Following widespread robust economic activity in the first half of the year, the general economic performance showed signs of slowing down in the third quarter. By contrast, GESCO Group continued to record brisk customer demand. Incoming orders started strongly in the first quarter, set a record in the second quarter and remained high in the third quarter. Sales stood at around € 140 million in each individual quarter and set a record of € 144.7 million in the third quarter. As in the previous year, the first quarter was particularly strong in terms of margins, which was also due to certain special effects. The EBIT margin stood at an above-average 9.3 % in the first quarter, later stabilising at a high level of 7.8 % and 8.2 %, respectively, in the second and third quarter.

6

DEVELOPMENT OF GROUP SALES AND EARNINGS IN THE THIRD QUARTER

As explained earlier in this report, the brisk business development seen in the first half of the year continued in the third quarter, which encompasses the operating months July to September in the case of the subsidiaries. At € 143.5 million, incoming orders were 9.1 % higher than the previous year's figure of € 131.6 million, with sales up 3.6 % to € 144.7 million (previous year's period: € 139.6 million). In organic terms – excluding Protomaster in the previous year and Sommer & Strassburger in the reporting year – incoming orders were up by 11.1 % and sales by 6.7 %.

The key earnings figures saw a stronger rise than sales. As in the previous quarters, the material expenditure ratio increased in relation to total income, while the personnel expenditure ratio declined. Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 5.7 % to € 17.8 million (€ 16.9 million). Thanks to the disproportionately small increase in depreciation and amortisation, earnings before interest and taxes (EBIT) rose more sharply, by 7.2 % to € 11.9 million (€ 11.1 million). With a slight decline in the financial result, a significantly lower tax rate and a slightly increased minority interest in incorporated companies, Group net income after minority interest rose by 18.9 % to € 6.9 million (€ 5.8 million).

Incoming orders

Sales revenues

Group net income after minority interest

DEVELOPMENT OF GROUP SALES AND EARNINGS IN THE FIRST NINE MONTHS OF THE YEAR

The developments of the entire nine-month period paint a similar picture: a significant increase in incoming orders, rising sales and disproportionately high earnings growth. Incoming orders posted strong growth of 11.9 % to reach € 456.6 million (€ 407.9 million). Sales rose by 5.0 % from € 404.4 million to € 424.6 million. In organic terms, incoming orders were up by 14.3 % and sales by 7.4 %.

The material expenditure ratio continued to rise in the first nine months of the financial year, whereas the personnel expenditure ratio fell thanks to improved capacity utilisation. At 7.3 %, EBITDA growth outpaced sales growth and reached € 53.1 million (€ 49.4 million). EBIT rose by 13.7 % to € 35.8 million (€ 31.5 million). With a slight decline in the financial result, a lower tax rate and increased minority interest in incorporated companies, Group net income after minority interest stood at € 19.7 million, which corresponds to an increase of 20.4 % compared to the previous year's figure of € 16.4 million.

At € 236.5 million, order backlog was up 21.5 % by the end of the first nine months of the financial year compared to the value of € 194.6 million as at the previous year's reporting date. Sommer & Strassburger's order backlog was included for the first time, whereas Protomaster's order backlog had already been excluded in the previous year's figure. In organic terms, order backlog was up 18.4 %.

SEGMENT PERFORMANCE

In the Production Process Technology segment, all the mechanical engineering and plant construction companies were able to translate the brisk customer demand into strong new business and post double-digit increases in incoming orders. All told, incoming orders in the segment rose by 27.6 % to € 71.5 million (€ 56.0 million). Compared to the first half of the year, deliveries increased in the third quarter. Total sales rose to € 52.6 million in the first nine months of the financial year, placing them 8.7 % above the value of € 48.4 million recorded in the same period of the previous year. EBIT rose by a disproportionately high margin of 46.9 % and reached € 2.9 million (€ 2.0 million). One month of business activities at the newly acquired Sommer & Strassburger was included in the figures for the first nine months of the financial year for the first time. In organic terms – in other words, excluding the figures relating to Sommer & Strassburger in the reporting period – incoming orders would have increased by 25.2 %, and sales would have risen by 5.6 %. For the segment, we expect sales and earnings growth on an organic basis for the year as a whole, while Sommer & Strassburger also contributes external growth.

8

In the Resource Technology segment, the significant 11.1 % rise in incoming orders to € 224.7 million (€ 202.2 million) was influenced in part by a major loading technology order that will not lead to sales and earnings until the following year. Accordingly, sales rose by a somewhat lower 5.9 % to stand at € 217.5 million (€ 205.4 million). At € 28.7 million, EBIT was up 3.3 % on the previous year's figure of € 27.8 million. As in the previous year, the segment recorded an unusually high margin in the first quarter that stabilised at a high level in the second and third quarters. The strong margin in the first quarter was influenced by certain special effects with unusually strong demand. As explained in the half-year interim report, a certain area of the segment saw a temporary underutilisation of capacities, as the company began the new financial year with a low order backlog and some of the new orders will not be posted as sales until the next financial year. For the year as a whole, we anticipate sales growth and earnings for the segment to be roughly on par with the previous year's high results.

The Healthcare and Infrastructure Technology segment benefited from continued strong demand in consumer-centric markets. All companies in the segment were able to use this positive environment and significantly expand their business activities, thereby increasing the number of incoming orders and sales. This broad-based positive development is reflected in a 21.1 % rise in incoming orders to € 116.7 million (€ 96.4 million) and a 12.8 % increase in sales to € 109.0 million (€ 96.6 million). EBIT rose by a disproportionately high margin of 18.9 % and reached € 11.3 million (€ 9.5 million). At a segment level, we expect year-on-year sales and earnings growth for the year as a whole.

In the Mobility Technology segment, Protomaster GmbH was sold in the previous financial year, and Paul Beier GmbH Werkzeug- und Maschinenbau & Co. KG closed one of its segments. As a result, incoming orders and sales were down significantly year on year in the first nine months of the current financial year. Incoming orders stood at € 43.6 million (€ 53.3 million), with sales of € 46.0 million (€ 54.5 million). Thanks to the disposal of low-margin and loss-making sales, however, the segment's EBIT improved substantially from € -0.4 million to € 3.2 million. We expect to see a marked increase in earnings year on year coupled with a decline in sales for the year as a whole.

ASSETS AND FINANCIAL POSITION

Since the reporting date of 31 March 2018, total assets have risen by 14.7 % from € 456.3 million to € 523.5 million. Around half of this increase is attributable to the addition of Sommer & Strassburger.

On the assets side, the 13.2 % rise in non-current assets was mainly attributable to the acquisition. About one-fifth of the 15.9 % increase in current assets was due to the acquisition. Liquid assets stood at € 34.6 million (€ 38.3 million) as at the reporting date.

On the liabilities side, equity rose by 5.4 % to € 236.5 million (€ 224.3 million) on account of the improvement in earnings. Because total assets rose more sharply, the equity ratio decreased to 45.2 % (49.2 %). Prepayments received on account of orders increased by 71.3 % to € 32.3 million (€ 18.9 million). Current and non-current liabilities to financial institutions increased overall to € 145.1 million (€ 118.8 million). With the aim of achieving target equity ratios, subsidiaries borrowed capital to finance dividend distributions. This primarily had an impact on non-current liabilities to financial institutions, with a less significant impact on current liabilities to financial institutions.

INVESTMENTS

The companies supported their modern technical equipment with investments in the amount of € 19.2 million (€ 15.9 million) in property, plant and equipment and intangible assets. This total volume was spread across a series of small and medium-sized replacement and expansion investments.

EMPLOYEES

At the end of the reporting period, GESCO Group employed 2,669 people, compared to 2,482 at the end of the same period in the previous year. The increase was primarily attributable to the addition of the 141 employees of Sommer & Strassburger as well as the 28 employees in total at the Ukrainian and Russian subsidiaries of Frank Walz- und Schmiedetechnik GmbH, which had not been included in the previous year's figures. Adjusted for these effects, the number of employees remained virtually unchanged during the nine-month period. Protomaster's workforce was already factored out of the previous year's figures.

EVENTS AFTER THE REPORTING DATE, OUTLOOK AND FORECAST REPORT

This quarterly statement for the first nine months of the financial year encompasses the operating months January to September 2018 of the Group's subsidiaries. In the subsequent fourth quarter, which encompasses the operating months October to December 2018 of the subsidiaries, incoming orders at the Group came to roughly € 135 million according to preliminary figures – a decrease of around 6.6 % on the previous year's strong figure of € 144.5 million. As explained earlier in this report, the previous year's value contained a major order. According to preliminary figures, Group sales in the fourth quarter increased by around 1.5 % compared to the previous year's figure and also reached approximately € 145 million (€ 142.8 million).

In the half-year interim report in November 2018, we forecasted sales of slightly over € 560 million in organic terms and inorganic growth of around € 6.5 million as a result of the first-time pro rata inclusion of Sommer & Strassburger. We currently expect to see Group sales of around € 570 million in total. With regard to Group net income after minority interest, we forecasted a figure of € 26 million or slightly less in organic terms and a negative effect of around € 0.5 million due to the acquisition of Sommer & Strassburger. Based on the information currently available, we confirm this outlook.

Yours sincerely,

GESCO AG The Executive Board

Wuppertal, February 2019

GESCO GROUP BALANCE SHEET AS AT 31 DECEMBER 2018 AND 31 MARCH 2018

€'000 31.12.2018 31.03.2018
Assets
A.
Non-current assets
I. Intangible assets
1. Industrial property rights and similar rights and
assets as well as licences
24,929 21,715
2. Goodwill 30,167 19,153
3. Prepayments made 0 16
55,096 40,884
II.
Property, plant and equipment
1. Land and buildings 72,538 66,175
2. Technical plant and machinery 56,964 52,045
3. Other plants, fixtures and fittings 21,731 21,568
4. Prepayments made and assets under construction 6,679 6,908
157,912 146,696
III.
Financial investments
1. Shares in affiliated companies 38 40
2. Shares in companies valued at equity 1,409 1,215
3. Investments 236 156
4. Other loans 181 190
1,864 1,601
IV.
Other assets
1,226 1,360
V.
Deferred tax assets
3,135 3,166
219,233 193,707
B.
Current assets
I.
Inventories
1. Raw materials and supplies 27,785 23,616
2. Unfinished products and services 51,727 40,938
3. Finished products and goods 83,114 70,514
4. Prepayments made 1,208 845
163,834 135,913
II.
Receivables and other assets
1. Trade receivables 84,485 73,190
2. Amounts owed by affiliated companies 0 1,782
3. Amounts owed by companies valued at equity 290 19
4. Other assets 19,937 12,247
104,712 87,238
III.
Cash and credit balances with financial institutions
34,625 38,295
IV.
Accounts receivable and payable
1,077 1,103
304,248 262,549
523,481 456,256
€'000 31.12.2018 31.03.2018
Equity and liabilities
A.
Equity
I.
Subscribed capital
10,839 10,839
II.
Capital reserves
72,364 72,364
III.
Revenue reserves
143,893 130,773
IV.
Own shares
0 -119
V.
Other comprehensive income
-4,278 -4,398
VI.
Minority interests (incorporated companies)
13,655 14,806
236,473 224,265
B.
Non-current liabilities
I.
Minority interests (partnerships)
1,060 1,868
II.
Provisions for pensions
15,718 16,020
III.
Other non-current provisions
613 589
IV.
Liabilities to financial institutions
96,805 76,232
V.
Other liabilities
11,836 3,822
VI.
Deferred tax liabilities
3,591
129,623
3,139
101,670
C.
Current liabilities
I.
Other provisions
11,092 21,077
II.
Liabilities
1. Liabilities to financial institutions 48,293 42,523
2. Trade creditors 24,807 15,036
3. Prepayments received on orders 32,428 18,928
4. Liabilities to affiliated companies 470 316
5. Other liabilities 39,845 32,350
III.
Accounts receivable and payable
450 91
157,385 130,321

523,481 456,256

13

GESCO GROUP INCOME STATEMENT FOR THE THIRD QUARTER (1 OCTOBER TO 31 DECEMBER)

€'000 3. Quarter
2018/2019
3. Quarter
2017/2018
Sales revenues 144,699 139,614
Change in stocks of finished and unfinished products 2,126 3,866
Other company-produced additions to assets 1,017 4
Other operating income 2,160 2,898
Total income 150,002 146,382
Material expenditure -77,600 -73,475
Personnel expenditure -37,130 -37,704
Other operating expenditure -17,426 -18,314
Earnings before interest, tax, depreciation and
amortisation (EBITDA) 17,846 16,889
Depreciation on property, plant and equipment and amortisation
of intangible assets -5,959 -5,802
Earnings before interest and tax (EBIT) 11,887 11,087
Earnings from investments 75 131
Earnings from companies valued at equity 205 61
Other interest and similar income 33 292
Interest and similar expenditure -700 -692
Minority interest in partnerships -105 -102
Financial result -492 -310
Earnings before tax (EBT) 11,395 10,777
Taxes on income and earnings -3,735 -4,278
Group net income for the year after tax 7,660 6,499
Minority interest in incorporated companies -763 -700
Group net income for the year after minority interest 6,897 5,799
Earnings per share acc. to IFRS (€) 0,64 0,53
Weighted average number of shares 10,823,746 10,819,514

GESCO GROUP INCOME STATEMENT FOR THE FIRST NINE MONTHS (1 APRIL TO 31 DECEMBER)

€'000 1.-3. Quarter
2018/2019
1.-3. Quarter
2017/2018
Sales revenues 424,582 404,350
Change in stocks of finished and unfinished products 7,766 10,900
Other company-produced additions to assets 1,290 437
Other operating income 6,361 6,333
Total income 439,999 422,020
Material expenditure -224,112 -208,182
Personnel expenditure -110,797 -113,271
Other operating expenditure -52,032 -51,118
Earnings before interest, tax,
depreciation and amortisation (EBITDA) 53,058 49,449
Depreciation on property, plant and equipment and amortisation
of intangible assets -17,302 -17,991
Earnings before interest and tax (EBIT) 35,756 31,458
Earnings from investments 75 189
Earnings from companies valued at equity 418 247
Other interest and similar income 57 333
Interest and similar expenditure -1,893 -2,068
Minority interest in partnerships -277 -244
Financial result -1,620 -1,543
Earnings before tax (EBT) 34,136 29,915
Taxes on income and earnings -11,918 -11,268
Group net income for the year after tax 22,218 18,647
Minority interest in incorporated companies -2,517 -2,290
Group net income for the year after minority interest 19,701 16,357
Earnings per share acc. to IFRS (€) 1,82 1,51
Weighted average number of shares 10,831,381 10,832,475

GESCO GROUP STATEMENT OF COMPREHENSIVE INCOME FOR THE FIRST NINE MONTHS (1 APRIL TO 31 DECEMBER)

€'000 1.-3. Quarter 1.-3. Quarter
2018/2019 2017/2018
1. Group net income 22,218 18,647
2. Revaluation of benefit obligations not impacting on income 61 295
3. Items that cannot be transferred into the income statement 61 295
4. Difference from currency translation
a) Reclassification into the income statement 0 0
b) Changes in value with no effect on income 479 -1,948
5. Difference from currency translation
from companies valued at equity
a) Reclassification into the income statement 0 0
b) Changes in value with no effect on income -327 -161
6. Market valuation of hedging instruments
a) Reclassification into the income statement 0 0
b) Changes in value with no effect on income -111 129
7. Items that can be transferred into the income statement 41 -1,980
8. Other comprehensive income 102 -1,685
9. Total result for the period 22,320 16,962
of which shares held by minority interest 2,499 2,173
of which shares held by GESCO shareholders 19,821 14,789

GESCO GROUP CASH FLOW STATEMENT FOR THE FIRST NINE MONTHS (1 APRIL TO 31 DECEMBER)

€'000 1.-3. Quarter
2018/2019
1.-3. Quarter
2017/2018
Group net income for the period (including share attributable
to minority interest in incorporated companies)
22,218 18,647
Depreciation on property, plant and equipment and intangible assets 17,302 17,991
Earnings from companies valued at equity -418 -247
Share attributable to minority interest in partnerships 277 244
Decrease in non-current provisions -188 -215
Other non-cash income / expenditure -38 114
Cash flow for the period 39,153 36,534
Losses from the disposal of property, plant and equipment/intangible assets 271 57
Gains from the disposal of property, plant and equipment/intangible assets -639 -384
Gains from changes to the scope of consolidation 0 -229
Increase in stocks, trade receivables and other assets -37,706 -39,491
Increase in trade creditors and other liabilities 16,699 24,736
Cash flow from ongoing business activity 17,778 21,223
Incoming payments from disposals of property,
plant and equipment/intangible assets 995 1,193
Disbursements for investments in property, plant and equipment -16,065 -15,555
Disbursements for investments in intangible assets -533 -384
Disbursements due to changes to the scope of consolidation 0 -1,641
Disbursements for investments in financial assets -103 0
Incoming payments from disposals of investments in financial assets 8 33
Disbursements for the acquisition of consolidated companies
and other business units -20,435 0
Cash flow from investment activity -36,133 -16,354
Disbursements to shareholders (dividend) -6,502 -3,794
Disbursements for the purchase of own shares -900 -1,051
Incoming payments from the sale of own shares 995 942
Disbursements to minority interests -4,040 -2,583
Disbursements to other shareholders -750 0
Incoming payments from raising (financial) loans 40,194 15,315
Outflow for repayment of (financial) loans -14,377 -12,317
Cash flow from funding activities 14,620 -3,488
Changes in cash and cash-equivalents -3,735 1,381
Exchange-rate related changes in cash and cash-equivalents 65 -232
Financial means on 01.04. 38,295 35,547
Financial means on 31.12. 34,625 36,696

GESCO GROUP STATEMENT OF CHANGES IN EQUITY CAPITAL

€'000 Subscribed
capital
Capital
reserves
Revenue
reserves
Own
shares
As at 01.04.2017 10,839 72,364 118,468 0
Distributions -3,794
Acquisition of own shares -1,051
Disposal of own shares 10 932
Result for the period 16,357
As at 31.12.2017 10,839 72,364 131,041 -119
As at 01.04.2018 10,839 72,364 130,773 -119
Distributions -6,502
Acquisition of own shares -900
Disposal of own shares -24 1,019
Acquisition of shares in subsidiaries -55
Result for the period 19,701
As at 31.12.2018 10,839 72,364 143,893 0

GESCO   GROUP   SEGMENT REPORT FOR   THE   FIRST   NINE   MONTHS   (1   APRIL   TO   31   DECEMBER)

€'000 Production Process
Technology
Resource
Technology
1.-3.
Quarter
2018/2019
1.-3.
Quarter
2017/2018
1.-3.
Quarter
2018/2019
1.-3.
Quarter
2017/2018
Order backlog 60,747 48,888 80,337 67,775
Incoming orders 71,511 56,022 224,742 202,233
Sales revenues 52,570 48,356 217,539 205,381
of which with other segments 0 5 546 449
Depreciation 2,191 2,181 3,326 3,024
EBIT 2,902 1,976 28,714 27,787
Investments 1,428 2,215 5,842 2,606
Employees (No./reporting date) 617 472 750 748
Capital
Revenue
Own
shares
reserves
reserves
Exchange
equalisation
items
Revaluation of
pensions
Hedging
instruments
Total Minority
interest
incorporated
companies
Equity
capital
72,364
118,468
0
-3,794
1,113 -3,858 -3 198,923 15,172 214,095
-1,051 -3,794
-1,051
-2,320
0
-6,114
-1,051
932 942 0 942
-1,958 274 116 14,789 2,173 16,962
-119 -845 -3,584 113 209,809 15,025 224,834
-119 -1,061 -3,349 12 209,459 14,806 224,265
-6,502 -3,650 -10,152
-900 -900 0 -900
1,019 995 0 995
-55 0 -55
163 56 -99 19,821 2,499 22,320
0 -898 -3,293 -87 222,818 13,655 236,473
Production Process
Resource
Technology
Technology
Healthcare and
Infrastructure
Technology
Mobility
Technology
Reconsiliation Group
1.-3.
1.-3.
1.-3.
Quarter
Quarter
Quarter
2017/2018
2018/2019
2017/2018
1.-3.
Quarter
2018/2019
1.-3.
Quarter
2017/2018
1.-3.
Quarter
2018/2019
1.-3.
Quarter
2017/2018
1.-3.
Quarter
2018/2019
1.-3.
Quarter
2017/2018
1.-3.
Quarter
2018/2019
1.-3.
Quarter
2017/2018
48,328 34,300 47,052 43,684 0 0 236,464 194,647
116,735 96,371 43,604 53,285 0 0 456,592 407,911
109,014 96,633 46,043 54,470 -584 -490 424,582 404,350
0 0 38 36 -584 -490 0 0
449
3,024
4,647 4,632 3,086 3,380 4,052 4,774 17,302 17,991
11,281 9,489 3,206 -373 -10,347 -7,421 35,756 31,458
6,237 6,469 5,591 4,507 67 144 19,165 15,941
818 759 467 484 17 19 2,669 2,482

EXPLANATORY NOTES ACCOUNTS, ACCOUNTING AND VALUATION METHODS

GESCO Group's statement for the first nine months (1 April to 31 December 2018) of financial year 2018/2019 (1 April 2018 to 31 March 2019) was prepared on the basis of the International Financial Reporting Standards (IFRS) published by the International Accounting Standards Board (IASB). It was drawn up in compliance with IAS 34.

The accounting and valuation principles applied generally correspond to those in the consolidated financial statements as at 31 March 2018. The financial statements are affected by the accounting and valuation methods as well as assumptions and estimates which affect the level and recognition of assets, liabilities and contingent liabilities on the balance sheet, as well as those of the income and expenditure items. Sales-related figures are accrued throughout the year.

The purchase price allocation carried out in the present balance sheet as it relates to the acquisition of Sommer & Strassburger GmbH & Co. KG is temporary according to IFRS 3.45 et seq. 01.04.2018 - 31.12.2018

FINANCIAL CALENDAR

14 February 2019

Publication of the quarterly statement for the first nine months

27 June 2019

Annual accounts press conference and analysts' meeting

14 August 2019

Publication of the quarterly statement for the first quarter

29 August 2019

Annual General Meeting at the Stadthalle Wuppertal, Germany

14 November 2019

Publication of the half-year interim report

23

If you would like to receive regular information on GESCO AG, please add your name to our mailing list. Please print this page, fill it out and return it to us by post or fax. You can also register on our website www.gesco.de, send us an e-mail at [email protected] or call us on +49 202 24820-18.

CONTACT FOR SHAREHOLDERS

GESCO AG Oliver Vollbrecht / Investor Relations Johannisberg 7 42103 Wuppertal, Germany Phone +49 (0) 202 24820-18 Fax +49 (0) 202 24820-49 [email protected] www.gesco.de

First name / name:

Street / house number:

Zip code / City:

E-mail:

Please add me to your mailing list. I would like to receive information by

e-mail.

e-mail (please send annual report per post).

post.

WWW.GESCO.DE

Talk to a Data Expert

Have a question? We'll get back to you promptly.