Quarterly Report • Jun 2, 2014
Quarterly Report
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interim report – q1 2014 Letter to the Shareholders
1
2014 is off to a Strong Start
INDUS is the leading specialist in the field of sustainable investment and growth in German small and medium-sized companies. Our shareholders participate in the profitability of our diversified and still growing portfolio of hidden champions.
| Q1 2014 | Q1 2013 | |
|---|---|---|
| Sales | 287.2 | 262.5 |
| EBITDA | 39.2 | 34.3 |
| EBIT | 28.3 | 24.5 |
| Net result for the period | 13.3 | 12.4 |
| Earnings per share (in EUR) of continuing operations | 0.60 | 0.57 |
| Operating cash flow | -9.8 | -14.3 |
| Cash and cash equivalents (as of the reporting date) | 109.6 | 107.5 |
| Total assets | 1,215.6 | 1,180.9 |
| Equity capital | 526.9 | 515.3 |
| Net debt | 333.0 | 307.6 |
| Equity ratio (in %) | 43.3 | 43.6 |
| Employees (as of the reporting date) | 7,381 | 7,037 |
| Investments (as of the reporting date) | 40 | 39 |
| contents | ||
|---|---|---|
| 1 2 4 5 |
Letter to the Shareholders SMEs are Shaping the Future INDUS on the Capital Market Interim Management Report |
|
| 15 | Consolidated Interim Financial | |
| Statements as of March 31, 2014 | ||
33 Contact and Financial Calendar
INDUS is off to a strong start in the new fiscal year. For the current year we set ourselves the goal of achieving renewed growth. Now that we are more than three months into fiscal year 2014, we are confident of achieving this goal. The first quarter went better than expected, and the companies in the Construction and Medical Engineering segments in particular have had a very strong start. The lack of a winter hiatus, in particular, had a positive effect on construction projects. This development will normalize in the course of the first half-year, so that, for the year as a whole, we expect business performance to be strong within the range of expectations.
INDUS's plans for 2014 continue to call for organic growth in sales of up to 3%, to which acquisitions are expected to add further growth. Our first acquisition this year has already taken us one milestone closer to this target. Our acquisition of ROLKO brings to fruition our plans to strengthen our position in the Medical Engineering/Life Science segment. We hope to bring another attractive small or medium-sized company into our Group before the current fiscal year is out. At the same time, we decided at the beginning of the year to part ways with one portfolio company. The prognosis for the continuation of our long-time portfolio company NISTERHAMMER as a going concern was decidedly negative after an intensive phase of restructuring. Our Board of Management therefore decided to shut down its operations. In the Construction segment, furthermore, we will be forming another subsidiary by splitting ANCOTECH off from BETOMAX. A Swiss company, ANCOTECH develops special reinforcements and has undergone extremely dynamic development in recent years. The company is now serving markets other than those served by its parent BETOMAX. We established the company as an independent entity in acknowledgment of this development and with the intention of assisting it more effectively in its pursuit of growth.
These decisions are in line with our strategy for more vigorous development of our portfolio. As set out in our COMPASS 2020 strategy program, we want not only to achieve growth through strategic acquisitions, but also to develop and optimize our existing portfolio. This development process is already off to a good start, and the INDUS portfolio is proving to be stronger than ever.
Our current forecast for sales and earnings is based on the plans of our existing subsidiaries and deliberately leaves potential acquisitions out of consideration. In 2014 INDUS aims to generate considerably more than EUR 1.2 billion in sales and achieve an EBIT of approximately EUR 118 million.
Bergisch Gladbach, May 2014
Yours, The Board of Management
Jürgen Abromeit Dr. Johannes Schmidt Rudolf Weichert
People are living healthier, more comfortable, and longer lives. This is in part thanks to small and medium-sized companies whose expertise is allowing people to enjoy an ever improving quality of life. INDUS is pursuing a portfolio strategy that envisions a more prominent future role for companies in the Medical Engineering/Life Science industry, as this is an industry with great potential.
German medical engineering is making a major contribution to patient care in Germany and across the world. Though small, this is a highly innovative and vigorously growing branch of industry. Apart from a few large corporations that dominate the market in the category of large medical devices in particular, some 1,200 small and medium-sized companies make up the industry's backbone. With their 117,000 employees, German medical engineering companies generate more than EUR 22 billion in annual sales. Each medical engineering job ensures the existence of a job in another segment at a ratio of 1 to 0.75.
In 2012 German medical engineering companies exported their products at a rate of approximately 68%. Domestic suppliers are therefore extremely well positioned as compared to suppliers in other countries; in many areas they are even world leaders. The economic success of German medical engineering companies is built on their many innovative products. These companies generate roughly one third of their sales with products that are less than three years old.
The companies in this industry operate in an extremely dynamic environment, one that is characterized by growing interdisciplinarity, increasingly complex research and development processes, and challenging regulatory requirements. These conditions, along with the accumulated experience of companies already in the market, present new competitors with a formidable barrier to market entry.
Sources: www.bmbf.de, www.pharmazeutische-zeitung.de, www.bvmed.de
Since mid-April 2014, INDUS has occupied a more prominent position in Medical Engineering – a market with a very promising future – and holds 75% of the shares in the medium-sized ROLKO Group. The company, which is based in Borgholzhausen (near Halle in Westphalia), is already internationally positioned with sales offices in Silkeborg (Denmark) and Houten (the Netherlands). Added to this is a strong business base in Asia. With its approximately 100 employees, ROLKO China has been producing in Xiamen (Fujian province) since as early as 2006 and also supplies major customers locally in China's rehabilitative care market.
Joint shareholder and managing director Achim Kohlgrüber will continue to promote the company's development. His vision is to position ROLKO as a strong brand in the retail medical supplies trade as well as with original equipment manufacturers (OMEs). Thanks to its strong logistics capabilities, ROLKO is already making "just in time" deliveries of some 13,000 parts.
In 2013, ROLKO generated roughly EUR 20 million in sales with more than 150 employees. It sales activities are focused largely on Germany and neighboring countries. Elsewhere in the world the company supplies customers in more than 40 countries. Its products include casters and wheels for wheelchairs and wheeled walkers along with accessories such as wheelchair ramps, body warmers, height-adjustable push handles, and headrests. ROLKO continues to sell medically-related products such as handles and bumper wheels for hospital beds.
By acquiring the ROLKO Group, INDUS has gained entry to the interesting rehabilitative medical accessories market. According to a market study commissioned by INDUS, the global wheelchair market has reached a volume of more than EUR 2 billion and is growing by more than 9% a year. This means that by 2018, the market will have nearly doubled in comparison to reference year 2011.
ROLKO Kohlgrüber GmbH, Borgholzhausen
Among the world's top five suppliers of accessories and industrial goods in the field of rehabilitative medicine
| Sales in 2013 in EUR million | 21.6 |
|---|---|
| Employees | 153 |
| Established | 1990 |
| Company headquarters | Borgholzhausen, North Rhine-Westphalia |
| Foreign locations | The Netherlands, Denmark, China |
| Transition | Existing shareholder ensures continuity and further development |
www.rolko.info
| 1st quarter, 2014 | 2013 as a whole | |
|---|---|---|
| Peak price in EUR | 32.04 | 29.47 |
| Lowest price in EUR | 28.51 | 20.55 |
| Closing price (at reporting date) in EUR | 31.97 | 29.20 |
| Average daily trading volume (number of shares) | 44,719 | 35,488 |
| Number of shares outstanding | 24,450,509 | 22,410,431 |
| Market capitalization in EUR millions | 781.7 | 655.6 |
* Share price acc. to XETRA, sales acc. to Deutsche Börse
In the first three months, the INDUS share considerably outperformed both the SDAX and the DAX. The positive outlook in the 2013 annual report in mid-March along with the announcement in early April of the acquisition of ROLKO, a specialist in rehabilitative medical accessories, stimulated persistently strong demand on the capital market. Sales of the shares have increased significantly. The price has risen continuously despite the capital increase in December 2013. As of March 30, 2014, the share was up by around 10%, a much better performance over the closing price at the end of 2013 (SDAX +6%, DAX +0%). This positive trend continued on into April and May of this year. This excellent performance resulted in an absolute 10-year high with market prices in excess of EUR 34 in early May. Currently, analysts' market price estimates range from EUR 32 to EUR 40 and without exception come with a recommendation to buy the stock. On its homepage, under "Investors & Press", INDUS regularly publishes the current estimates of the research institutes that follow INDUS.
Following a quieter fourth quarter in 2013, the business situation at the start of 2014 took a thoroughly positive turn. The first quarter of 2014 saw a marked increase in sales, which came in at EUR 287.2 million, an increase of roughly 9% over the same period last year, partly as a result of the acquisitions made in the previous year. Operating earnings (EBIT), at EUR 28.3 million, likewise came in higher than in the first quarter of 2013 (by roughly 16%). Both the costs of materials ratio and the personnel costs ratio remained nearly constant in relation to sales. The EBIT margin improved to 9.8% (previous year: 9.3%).
| Q1 2014 | Q1 2013* | |
|---|---|---|
| Sales | 287.2 | 262.5 |
| Other operating income | 4.1 | 4.1 |
| Own work capitalized | 0.6 | 0.5 |
| Changes in inventories | 15.1 | 8.7 |
| Overall performance | 307.0 | 275.8 |
| Cost of materials | -144.5 | -131.1 |
| Personnel expenses | -84.1 | -75.4 |
| Other operating expenses | -39.4 | -35.0 |
| Income from shares accounted for using the equity method | 0.2 | 0 |
| EBITDA | 39.2 | 34.3 |
| Depreciation and amortization | -10.9 | -9.8 |
| Operating result (EBIT) | 28.3 | 24.5 |
| Net interest | -5.0 | -4.6 |
| Earnings before taxes (EBT) | 23.3 | 19.9 |
| Taxes | -8.5 | -7.1 |
| Earnings attributable to discontinued operations | -1.5 | -0.4 |
| Earnings after taxes | 13.3 | 12.4 |
| of which allocable to non-controlling shareholders | 0.2 | 0.1 |
| of which allocable to INDUS shareholders | 13.1 | 12.3 |
* Previous year figures adjusted
The increase in Group sales is first and foremost the result of the full consolidation of the new acquisitions dating from the previous fiscal year. Absolute consolidated sales of INDUS Holding AG came to EUR 287.2 million at the end of March (previous year: EUR 262.5 million). The cost of materials rose from EUR 131.1 million to EUR 144.5 million in nearly direct proportion to the increase in sales. The cost of materials ratio reached 50.3% (previous year: 49.9%). Absolute personnel costs also rose from EUR 75.4 million to EUR 84.1 million, primarily as a result of the larger workforce brought about by the acquisitions. The slightly increased personnel cost ratio of 29.3% (previous year: 28.7%) in the first three months of the year corresponds to the average typical for INDUS.
EBITDA (earnings before interest, taxes, depreciation, and amortization) came in at EUR 39.2 million, around EUR 4.9 million more than the previous year's figure of EUR 34.3 million. Depreciation and amortization increased in total to EUR 10.9 million (previous year: EUR 9.8 million).
As forecast, operating earnings (EBIT) as of March 31, 2014, which came in at EUR 28.3 million, exceeded the previous year's level. The EBIT margin for the first three months was 9.8% (previous year: 9.3%). Detailed notes on the earnings position can be found in the segment report.
Net interest remained stable at EUR -5.0 million (previous year: EUR -4.6 million). Earnings before taxes (EBT) improved after the first three months to EUR 23.3 million (previous year: EUR 19.9 million). Tax expenditure increased along with earnings to EUR -8.5 million (previous year: EUR 7.1 million). This corresponds to a tax rate of 36.4% (previous year: 35.6%).
Earnings after taxes declined more steeply as earnings of EUR -1.5 million from discontinued operations were recognized following the decision to shut down operations at portfolio company NISTERHAMMER. Once the minority shares have been deducted, the net result for the period is EUR 13.1 million (previous year: EUR 12.3 million). This corresponds to earnings per share from continued operations of EUR 0.60 (previous year: EUR 0.57).
As part of its COMPASS 2020 growth strategy, INDUS has defined core strategic areas in which the Group intends to pursue more vigorous growth. One of these core areas is medical engineering and the healthcare industry. With its purchase of 75% of the shares in the ROLKO Group, Borgholzhausen, INDUS has entered the interesting market for rehabilitative medical accessories. Further details of the acquisition can be found under Events after the Reporting Date.
Sales of EUR 287.2 million > EBIT of EUR 28.3 million
EBIT margin at 9.8%
The INDUS Holding AG investment portfolio is organized into five segments: Construction/Infrastructure, Automotive Technology, Engineering, Medical Engineering/Life Science, and Metals Technology. The investment portfolio encompassed 40 operating units as of March 31, 2014.
At EUR 49.1 million, sales in this segment in the first quarter of 2014 were, as expected, higher than the EUR 46.1 million level reported in 2013. The portfolio companies were able to maintain production at a constant level thanks to the mild winter. The result was an above-average rise in earnings in comparison to the same quarter last year. INDUS therefore expects, however, no additional catching-up effects in the further course of the spring. Domestic demand for construction can be relied on to continue stimulating this segment. This trend was already noticeable in 2013 in a rise in the number of building permits. Operating earnings before interest and taxes (EBIT), at EUR 4.6 million (previous year: EUR 3.5 million) considerably exceeded the previous year's level, so that there was a substantial increase in the EBIT margin: at 9.4%, it was well above average for a first quarter in the construction segment, when activity is usually very weak.
| Q1 2014 | Q1 2013 | |
|---|---|---|
| External sales with external third parties | 49.1 | 46.1 |
| EBITDA | 5.9 | 4.8 |
| Depreciation and amortization | -1.3 | -1.3 |
| EBIT | 4.6 | 3.5 |
| EBIT margin in% | 9.4 | 7.6 |
| Capital expenditure | 2.9 | 2.6 |
| Employees | 1,093 | 1,057 |
Sales in the Automotive Technology segment once again rose slightly in a year-on-year comparison. Business activity in the automotive industry remains stable worldwide. Orders for deliveries slackened at the start of the year for only one company in the close-to-production segment. The products primarily affected were components for economy and medium-class vehicles. Consequently, operating earnings declined slightly in comparison to the previous year. The same quarter last year was positively affected by currency gains that no longer apply. INDUS expected to see this development in parts. The first quarter of 2013, moreover, saw particularly strong performance. The companies in this segment generated total
Sales +6.5% EBIT margin 9.4 %
Sales above previous year's level due to mild winter
Exceptionally good earnings for a first quarter
sales of EUR 84.4 million (previous year: EUR 82.1 million). The now completed restructuring measures are reflected in an earnings position that is stable on the whole. Although, at EUR 5.5 million, earnings before interest and taxes (EBIT) came in below the previous year's figure of EUR 6.7 million, the EBIT margin, at 6.5%, lies within the 6% to 8% INDUS corridor for the Automotive Technology segment.
| key figures – automotive technology (in EUR millions) | ||
|---|---|---|
| Q1 2014 | Q1 2013 | |
| External sales with external third parties | 84.4 | 82.1 |
| EBITDA | 10.2 | 11.3 |
| Depreciation and amortization | -4.7 | -4.6 |
| EBIT | 5.5 | 6.7 |
| EBIT margin in% | 6.5 | 8.2 |
| Capital expenditure | 4.3 | 3.8 |
| Employees | 3,152 | 3,116 |
Overall good order situation due to the stable demand in the premium segment
The Engineering segment experienced strong growth in sales in the first three months of 2014 primarily as a result of the full consolidation of the new portfolio companies BUDDE and ELTHERM. Sales were up EUR 8.2 million (approximately 24%) on the previous year. Absolute earnings before interest and taxes rose from EUR 4.5 million to EUR 5.3 million, a slightly less than proportionate increase. The EBIT margin, at 12.5% (previous year: 13.2%), approximated the previous year's level. Depreciation and amortization increased considerably owing to the intangible assets acquired in connection with the acquisitions. INDUS continues to expect, as forecast, a margin of roughly 10% for the year as a whole. Earnings for the segment have been adjusted in the previous year's figures in response to the decision in February 2014 to shut down NISTERHAMMER. These activities are presented as discontinued operations separately from segment earnings. NISTERHAMMER's traditional business with belt cleaning equipment for the steel industry is being shut down because the prognosis for its continuation is no longer positive.
| Q1 2014 | Q1 2013 | |
|---|---|---|
| External sales with external third parties | 42.4 | 34.2 |
| EBITDA | 6.8 | 5.2 |
| Depreciation and amortization | -1.5 | -0.7 |
| EBIT | 5.3 | 4.5 |
| EBIT margin in % | 12.5 | 13.2 |
| Capital expenditure | 0.9 | 25.4 |
| Employees | 1,141 | 857 |
New portfolio companies contribute to powerful jump in sales
> EBIT decreases slightly
> EBIT margin on previous year's level
The INDUS Group's Medical Engineering/Life Science segment once again achieved growth at the beginning of the year. Sales in the first quarter of 2014 came to EUR 25.1 million (previous year: EUR 24.8 million). Earnings before interest and taxes (EBIT) rose to a record level at EUR 4.4 million (previous year: EUR 3.5 million). The improvement in earnings has resulted from a high rate of capacity use in response to the strong demand experienced by two companies in this segment. With an EBIT margin of 17.5% (previous year: 14.1%) in the first three months, the companies in this segment have considerably outperformed their usual high earnings level of roughly 14%. The takeover of the rehabilitation specialist ROLKO that was contractually arranged in April has not been factored into the quarterly figures.
High rate of capacity use leads to significant improvement in earnings
| Q1 2014 | Q1 2013 | |
|---|---|---|
| External sales with external third parties | 25.1 | 24.8 |
| EBITDA | 5.0 | 4.1 |
| Depreciation and amortization | -0.6 | -0.6 |
| EBIT | 4.4 | 3.5 |
| EBIT margin in% | 17.5 | 14.1 |
| Capital expenditure | 0.6 | 0.2 |
| Employees | 699 | 719 |
At EUR 86.3 million (previous year: EUR 75.3 million), sales in this segment exceeded the previous year's level by roughly 15%. Earnings before interest and taxes (EBIT) also recovered, so that, at EUR 9.4 million (previous year: EUR 7.6 million), EBIT as of the end of the first quarter of 2014 once again achieved a margin above the Group-wide target margin of 10%. The EBIT margin in the Metals Technology segment was 10.9% (previous year: 9.9%). INDUS continues to expect, however, that the pressure on prices currently being experienced in some parts of the segment will persist in 2014. Maintaining the INDUS target margin of 10% in this segment will continue to demand increased efforts in the future.
| key figures – metals technology (in EUR millions) | ||
|---|---|---|
| Q1 2014 | Q1 2013 | |
| External sales with external third parties | 86.3 | 75.3 |
| EBITDA | 12.1 | 10.1 |
| Depreciation and amortization | -2.7 | -2.6 |
| EBIT | 9.4 | 7.5 |
| EBIT margin in % | 10.9 | 9.9 |
| Capital expenditure | 3.2 | 1.3 |
| Employees | 1,273 | 1,267 |
Sales +14.6% EBIT margin 10.9%
Pricing pressure continues in some parts of the segment
Large electroplating facility running according to plan
As the year began, the number of employees working for the various INDUS Group companies held steady as a result of the order situation. The personnel ratio of roughly 29% (in relation to sales) matches that for the same period last year. In the first quarter of 2014 the INDUS Group had 7,381 employees (previous year: 7,037 employees). The increase in the number of employees is attributable primarily to the new companies.
| Q1 2014 | Q1 2013 | |
|---|---|---|
| Operating cash flow | -9.8 | -14.3 |
| Interest | -4.2 | -4.1 |
| Cash flow from operating activities | -14.0 | -18.4 |
| Cash outflow for investments | -12.0 | -33.1 |
| Cash inflow from the disposal of assets | 0.6 | 0 |
| Cash flow from investing activities | -11.4 | -33.1 |
| Cash outflow from payments to non-controlling shareholders | 0 | -0.7 |
| Cash inflow from the assumption of debt | 36.0 | 79.2 |
| Cash outflow from the repayment of debt | -16.9 | -18.5 |
| Cash flow from financing activities | 19.1 | 60.0 |
| Net cash change in financial facilities | -6.3 | 8.5 |
| Changes in cash and cash equivalents caused by currency exchange rates | 0 | 0.3 |
| Cash and cash equivalents at the beginning of the period | 115.9 | 98.7 |
| Cash and cash equivalents at the end of the period | 109.6 | 107.5 |
Based on earnings after taxes of EUR 14.9 million from continuing operations (previous year: EUR 12.8 million), operating cash flow of EUR -9.8 million in the first three months of 2014 was negative as expected (previous year: EUR -14.3 million). Owing to the stability of demand in nearly all business segments, there was a build-up in inventories and trade receivables at the start of the year. The cost of interest paid remained unchanged in the first three months of 2014 at EUR 4.2 million (previous year: EUR 4.1 million). As a result, cash flow from operating activities came to EUR -14 million (previous year: EUR -18.4 million).
Cash outflows from investing activities amounted to EUR -33.1 million in 2013, primarily owing to the acquisition of the BUDDE Group. No purchase was made in the first quarter of 2014; consequently, cash outflows from investing activities concerned mainly property, plant, and equipment and amounted to EUR -11.4 million.
Cash inflow from financing activities dropped from EUR 60.0 million to EUR 19.1 million. New loans were arranged as the previous year began to meet repayment obligations and to build up reserve liquidity for the planned acquisitions. There were no pending repayments for the first quarter of 2014. In addition, funds are available in abundance because of the capital increase of December 2013, ensuring that there is ample room for acquisitions. EUR 109.6 million in cash and cash equivalents as of March 31, 2014 reached the high level reported in the first quarter of 2013 (previous year: EUR 107.5 million).
| March 31, 2014 | Dec. 31, 2013 | |
|---|---|---|
| Assets | ||
| Noncurrent assets | 657.2 | 658.1 |
| Fixed assets | 653.9 | 652.9 |
| Accounts receivable and other current assets | 3.3 | 5.2 |
| Current assets | 558.4 | 522.8 |
| Inventories | 258.1 | 236.1 |
| Accounts receivable and other current assets | 190.7 | 170.8 |
| Cash and cash equivalents | 109.6 | 115.9 |
| Total assets | 1,215.6 | 1,180.9 |
| Noncurrent liabilities | 903.5 | 890.7 |
|---|---|---|
| Equity | 526.9 | 515.3 |
| Debt | 376.6 | 375.4 |
| of which provisions | 24.4 | 23.6 |
| of which payables and income taxes | 352.2 | 351.8 |
| Current liabilities | 312.1 | 290.2 |
| of which provisions | 52.9 | 51.0 |
| of which liabilities | 259.2 | 239.2 |
| Total equity and liabilities | 1,215.6 | 1,180.9 |
Total assets of the INDUS Group increased slightly and amounted to EUR 1,215.6 million as of March 31, 2014 (December 31, 2013: EUR 1,180.9 million). Current assets increased as a result of increased inventories and receivables at the start of the year. Cash and cash equivalents of EUR 109.6 million remained stable in comparison to the end of 2013. Group equity was EUR 526.9 million and increased again as a result of the earnings generated in the first quarter of 2014 (December 31, 2013: EUR 515.3 million). The only increase in liabilities is in current liabilities. This occurred as the annual ABS program was ramped up as planned. This did not affect the equity ratio of 43.3%, which remained at the high level observed at the end of the year (as of December 31, 2013: 43.6%). Net debt in the Group after the first quarter of 2014 was EUR 333.0 million (December 31, 2013: EUR 307.6 million).
INDUS Holding AG and its portfolio companies are exposed to a multiplicity of risks as a result of their international activities. Entrepreneurial activity is inextricably linked with risk-taking. At the same time, this enables the company to seize new opportunities and thus defend and strengthen the market position of the portfolio companies. The company operates an efficient risk management system for the early detection, comprehensive analysis, and systematic handling of risks. The structuring of the risk management system and significance of particular risks are discussed in detail in the 2013 annual report on pages 84ff. Here it is stated that the company does not view itself as subject to any risks that could endanger its continued existence as a going concern. The INDUS Holding AG annual report can be downloaded free of charge at www.indus.de.
As of April 10, 2014, INDUS reported it had purchased 75% of the shares in the ROLKO Group, Borgholzhausen.
Sales of considerably more than EUR 1.2 billion
Operating earnings of EUR 118 million expected
At least two acquisitions planned for the year as a whole
For the world economy, experts are expecting a slight acceleration of growth in 2014. The resulting rise in demand in the industrialized nations is then expected to stimulate economic activity in the emerging markets. The economic trend in Europe is expected to change in 2014. It is expected that slight growth will relieve the recession, but factors that would decisively spur demand are not expected to come from Europe. The forecasts are more optimistic for Germany. The German government's current forecast of 1.8% growth indicates, however, that it is still too early to expect a major boom.
In this generally rather subdued environment, INDUS was able to post a clear rise in sales for the entire Group in the first three months together with improved operating earnings. The COMPASS 2020 growth program that has been started is therefore paying off. INDUS has set itself moderate growth targets for 2014 as well, targets that are to be achieved through both organic and acquisition-related growth. A solid financial base continues to be its top priority. The Board of Management reaffirms its positive forecast for 2014 as a whole and continues to expect the Group's sales and earnings position to surpass that of the previous year. Sales of more than EUR 1.2 billion and an EBIT of approximately EUR 118 million are expected. Not factored into these sales and earnings targets are acquisitions that may be made over the course of the year.
| in EUR '000 | Notes | Q1 2014 | Q1 2013* |
|---|---|---|---|
| Sales | 287,187 | 262,471 | |
| Other operating income | 4,121 | 4,131 | |
| Own work capitalized | 564 | 511 | |
| Change in inventories | 15,081 | 8,656 | |
| Cost of materials | [5] | -144,533 | -131,055 |
| Personnel expenses | [6] | -84,097 | -75,432 |
| Depreciation and amortization | -10,900 | -9,890 | |
| Other operating expenses | [7] | -39,391 | -34,979 |
| Income from shares accounted for using the equity method | 207 | 0 | |
| Financial result | 39 | 37 | |
| Operating result (EBIT) | 28,278 | 24,450 | |
| Interest income | 94 | 82 | |
| Interest expenses | -5,047 | -4,674 | |
| Net interest | [8] | -4,953 | -4,592 |
| Earnings before taxes | 23,325 | 19,858 | |
| Taxes | [9] | -8,477 | -7,045 |
| Income from discontinued operations | [4] | -1,559 | -391 |
| Earnings after taxes | 13,289 | 12,422 | |
| of which allocable to non-controlling interests | 171 | 133 | |
| of which allocable to INDUS shareholders | 13,118 | 12,289 | |
| Earnings per share (diluted and undiluted) in EUR (continuing operations) |
[10] | 0.60 | 0.57 |
| * Previous year's figures adjusted |
| in EUR '000 | Q1 2014 | Q1 2013 |
|---|---|---|
| Earnings after taxes | 13,289 | 12,422 |
| Actuarial gains and losses | -848 | -226 |
| Deferred taxes | 244 | 65 |
| Items not reclassified to profit or loss | -604 | -161 |
| Currency translation adjustment | -423 | -445 |
| Change in the market values of derivative financial instruments (cash flow hedge) | -792 | 1,056 |
| Deferred taxes | 125 | -167 |
| Items to be reclassified to profit or loss in future | -1,090 | 444 |
| Other income | -1,694 | 283 |
| Overall result | 11,595 | 12,705 |
| of which allocable to non-controlling shareholders | 171 | 133 |
| of which allocable to INDUS shareholders | 11,424 | 12,572 |
The income and expenses of EUR -1,694,000 recognized directly in equity under other income include EUR -848,000 in actuarial losses from pension plans and similar obligations. This resulted primarily from lowering the interest rate on domestic commitments from 3.7 % as of December 31, 2013, to 3.4 % as of March 31, 2014.
Net income from currency translation of EUR -423,000 is derived from the translated net profits of consolidated international subsidiaries. The change in fair values of derivative financial instruments in the amount of EUR -792,000 was chiefly the result of interest rate swaps transacted by the holding company.
| in EUR '000 | Notes | March 31, 2014 | Dec. 31, 2013 |
|---|---|---|---|
| ASSETS | |||
| Goodwill | 331,698 | 331,606 | |
| Other intangible assets | [11] | 28,245 | 28,887 |
| Property, plant, and equipment | [12] | 273,370 | 271,833 |
| Investment property | 5,935 | 5,965 | |
| Financial assets | 8,660 | 8,843 | |
| Shares accounted for using the equity method | 5,945 | 5,737 | |
| Other noncurrent assets | 1,070 | 2,901 | |
| Deferred taxes | 2,259 | 2,303 | |
| Noncurrent assets | 657,182 | 658,075 | |
| Inventories | [13] | 258,062 | 236,056 |
| Accounts receivable | [14] | 172,471 | 156,218 |
| Other current assets | 16,518 | 12,050 | |
| Current income taxes | 1,790 | 2,584 | |
| Cash and cash equivalents | 109,570 | 115,921 | |
| Current assets | 558,411 | 522,829 | |
| Total assets | 1,215,593 | 1,180,904 | |
| EQUITY AND LIABILITIES Subscribed capital |
63,571 | 63,571 | |
| Capital reserve | 239,833 | 239,833 | |
| Other reserves | 222,723 | 211,299 | |
| Equity held by INDUS shareholders | 526,127 | 514,703 | |
| Non-controlling interests in the equity | 798 | 627 | |
| Equity | 526,925 | 515,330 | |
| Provisions for pensions | 22,764 | 21,803 | |
| Other noncurrent provisions | 1,661 | 1,755 | |
| Noncurrent financial liabilities | 304,548 | 304,769 | |
| Other noncurrent liabilities | 21,684 | 21,376 | |
| Deferred taxes | 25,893 | 25,716 | |
| Noncurrent liabilities | 376.550 | 375,419 | |
| Other current provisions | 52,878 | 51,008 | |
| Current financial liabilities | 138,022 | 118,760 | |
| Trade accounts payable | 57,907 | 45,543 | |
| Other current liabilities | 59,660 | 69,687 | |
| Current income taxes | 3,651 | 5,157 | |
| Current liabilities | 312.118 | 290,155 | |
| Total equity and liabilities | 1,215,593 | 1,180,904 |
| in EUR '000 | Subscribed capital |
Capital reserve |
Retained Earnings |
Other Earnings |
Equity held by INDUS shareholders |
Interests allocable to non-controlling shareholders |
Group equity |
|---|---|---|---|---|---|---|---|
| Balance Dec. 31, 2012 | 57,792 | 185,672 | 174,042 | -8,636 | 408,870 | 1,242 | 410,112 |
| Changes in accounting principles based on IAS 19 and IAS 8 |
357 | 3,669 | 4,026 | 4,026 | |||
| Balance Dec. 31, 2012 | 57,792 | 185,672 | 174,399 | -4,967 | 412,896 | 1,242 | 414,138 |
| Income after taxes | 12,289 | 12,289 | 133 | 12,422 | |||
| Other income | 283 | 283 | 283 | ||||
| Overall result | 12,289 | 283 | 12,572 | 133 | 12,705 | ||
| Dividend payment | -673 | -673 | |||||
| Balance Mar. 31, 2013 | 57,792 | 185,672 | 186,688 | -4,684 | 425,468 | 702 | 426,170 |
| Balance Dec. 31, 2013 | 63,571 | 239,833 | 216,024 | -4,725 | 514,703 | 627 | 515,330 |
| Income after taxes | 13,118 | 13,118 | 171 | 13,289 | |||
| Other income | -1,694 | -1,694 | -1,694 | ||||
| Overall result | 13,118 | -1,694 | 11,424 | 171 | 11,595 | ||
| Balance Mar. 31, 2014 | 63,571 | 239,833 | 229,142 | -6,419 | 526,127 | 798 | 526,925 |
Interests held by non-controlling shareholders essentially consist of the non-controlling interests in the limited liability companies WEIGAND Bau GmbH and SELZER Automotiva do Brasil. Interests held by non-controlling shareholders in limited partnerships and limited liability companies for which, at the time of purchase, the economic ownership of the corresponding non-controlling interests had already been passed on under reciprocal option agreements are shown under other liabilities. This relates in particular to SELZER Fertigungstechnik GmbH & Co. KG, Helmut RÜBSAMEN GmbH & Co. KG, BUDDE Fördertechnik GmbH and ELTHERM GmbH.
| in EUR '000 | Q1 2014 | Q1 2013* |
|---|---|---|
| Income after taxes generated by continuing operations | 14,850 | 12,813 |
| Depreciation/write-ups of noncurrent assets | 10,900 | 9,890 |
| Taxes | 8,477 | 7,045 |
| Net interest | 4,953 | 4,592 |
| Cash earnings of discontinued operations | -1,033 | -421 |
| Other non-cash transactions | -1,568 | -928 |
| Changes in provisions | 1,801 | 3,555 |
| Increase (-)/decrease (+) in inventories, trade accounts receivable, and other assets | -39,086 | -36,217 |
| Increase (+)/decrease (-) in trade accounts payable and other liabilities | -504 | -6,683 |
| Income taxes received/paid | -8,570 | -7,956 |
| Operating cash flow | -9,780 | -14,310 |
| Interest paid | -4,330 | -4,164 |
| Interest received | 94 | 82 |
| Cash flow from operating activities | -14,016 | -18,392 |
| Cash outflow from investments in | ||
| property, plant, and equipment, and in intangible assets | -11,857 | -8,151 |
| financial assets and shares accounted for using the equity method | -185 | -232 |
| shares in fully consolidated companies | 0 | -24,686 |
| Cash inflow from the disposal of | ||
| other assets | 660 | 28 |
| Cash flow from investing activities of discontinued operations | 0 | -14 |
| Cash flow from investing activities | -11,382 | -33,055 |
| Cash outflow from payments to non-controlling shareholders | 0 | -673 |
| Cash inflow from the assumption of debt | 35,959 | 79,227 |
| Cash outflow from the repayment of debt | -16,917 | -18,559 |
| Cash flow from financing activities | 19,042 | 59,995 |
| Net cash change in financial facilities | -6,356 | 8,548 |
| Changes in cash and cash equivalents caused by currency exchange rates | 5 | 281 |
| Cash and cash equivalents at the beginning of the period | 115,921 | 98,710 |
| Cash and cash equivalents at the end of the period | 109,570 | 107,539 |
*Previous year's figures adjusted
INDUS Holding AG, based in Bergisch Gladbach, Germany, prepared its consolidated financial statements for the first quarter of 2014 in accordance with International Financial Reporting Standards (IFRS) and interpretations of these standards by the International Financial Reporting Interpretations Committee (IFRIC) as to their applicability in the European Union (EU). The consolidated financial statements are prepared in euros (EUR). Unless otherwise indicated, all amounts are stated in thousands of euros (EUR '000).
These interim financial statements are prepared in accordance with IAS 34 in condensed form. The interim report has not been audited, nor subjected to perusal or review by an auditor.
New obligatory standards are reported on separately in the section "Changes in Accounting Guidelines". Otherwise, the same accounting methods were applied as in the consolidated financial statements for the 2013 fiscal year. They are described there in detail. Because this interim quarterly report does not provide the full scope of information found in the annual financial statements, these financial statements should be considered within the context of the last annual financial statements.
In the Board of Management's view, this quarterly report includes all of the usual ongoing adjustments that are necessary for an appropriate presentation of the Group's net assets, financial, and earnings position. The results achieved in the first quarter of the 2014 fiscal year do not necessarily predict future business performance.
The preparation of consolidated financial statements is influenced by accounting and valuation principles, and requires assumptions and estimates to be made which have an impact on the recognized value of the assets, liabilities, and contingent liabilities, as well as on income and expenses. When estimates are made regarding the future, actual values may deviate from the estimates. If the original basis for the estimates changes, the statement of the relevant items is adjusted through profit and loss.
All obligatory accounting standards in effect as of fiscal year 2014 have been implemented in these interim financial statements.
In May 2011 the IASB published three new standards regarding consolidation: IFRS 10 "Consolidated Financial Statements", IFRS 11 "Joint Arrangements", and IFRS 12 "Disclosure of Interests in Other Entities". In addition, changes to two existing standards were published: IAS 27 "Separate Financial Statements" and IAS 28 "Investments in Associates and Joint Ventures". Initial application of the standards is mandatory for fiscal years beginning on or after January 1, 2014. The new standards do not affect in any way the presentation of the net assets, financial, and earnings position of INDUS Holding AG in the consolidated financial statements.
In the consolidated financial statements, all subsidiary companies are fully consolidated if the INDUS Group has the direct or indirect possibility of influencing the companies' financial and business policy for the benefit of the INDUS Group. This is generally the case if the INDUS Group holds more than 50 % of the voting rights in a portfolio company or contractual provisions stipulate that the INDUS Group retains all of the main opportunities and risks associated with the company. Associated companies whose financial and business policies can be significantly influenced are consolidated using the equity method. Companies purchased during the course of the fiscal year are consolidated as of the date on which control over their finance and business policy is transferred. Companies which are sold are no longer included in the scope of consolidation as of the date on which the business is transferred. After the date on which the decision is made to divest the company in question, these are classified as "held for sale."
At the end of February 2014, the Board of Management of INDUS Holding AG resolved to shut down and wind up the business operations of NISTERHAMMER Maschinenbau GmbH & Co. KG, Nister, with the approval of the Supervisory Board. NISTERHAMMER was classified as part of the Engineering segment.
The presentation as "discontinued operations" is due to the shut-down of operations. The income and expenses of NISTERHAMMER in the first quarter of 2014 and the first quarter of 2013 amounted to:
| in EUR '000 | Q1 2014 | Q1 2013 |
|---|---|---|
| Sales | 38 | 2,978 |
| Expenses and other income | -1,854 | -3,442 |
| Operating result | -1,816 | -464 |
| Net interest | -36 | 0 |
| Earnings before taxes | -1,852 | -464 |
| Taxes | 293 | 73 |
| Income from discontinued operations | -1,559 | -391 |
Presentation of NISTERHAMMER as discontinued operations requires an adjustment of the previous year's figures in the statement of income:
| Q1 2013 published |
IFRS 5 | Q1 2013 adjusted |
|
|---|---|---|---|
| Sales | 265,449 | -2,978 | 262,471 |
| Other operating income | 4,125 | 6 | 4,131 |
| Own work capitalized | 511 | 0 | 511 |
| Change in inventories | 8,695 | -39 | 8,656 |
| Cost of materials | -133,208 | 2,153 | -131,055 |
| Personnel expenses | -76,431 | 999 | -75,432 |
| Depreciation and amortization | -9,933 | 43 | -9,890 |
| Other operating expenses | -35,259 | 280 | -34,979 |
| Financial result | 37 | 0 | 37 |
| Operating result (EBIT) | 23,986 | 464 | 24,450 |
| Interest income | 82 | 0 | 82 |
| Interest expenses | -4,674 | 0 | -4,674 |
| Net interest | -4,592 | 0 | -4,592 |
| Earnings before taxes | 19,394 | 464 | 19,858 |
| Taxes | -6,972 | -73 | -7,045 |
| Income from discontinued operations | 0 | -391 | -391 |
| Earnings after taxes | 12,422 | 0 | 12,422 |
| of which allocable to non-controlling shareholders | 133 | 0 | 133 |
| of which allocable to INDUS shareholders | 12,289 | 0 | 12,289 |
| Earnings per share (diluted and undiluted) in EUR | 0.55 | -0.02 | 0.57 |
adjustment of the previous year's statement of income (in EUR '000)
| Total | -144,533 | -131,055 |
|---|---|---|
| Purchased services | -17,952 | -16,856 |
| Raw materials and goods for resale | -126,581 | -114,199 |
| in EUR '000 | Q1 2014 | Q1 2013 |
| in EUR '000 | Q1 2014 | Q1 2013 |
|---|---|---|
| Wages and salaries | -71,523 | -63,844 |
| Social security | -11,776 | -10,970 |
| Pensions | -798 | -618 |
| Total | -84,097 | -75,432 |
| Total | -39,391 | -34,979 |
|---|---|---|
| Other expenses | -1,393 | -1,844 |
| Administrative expenses | -7,817 | -6,524 |
| Operating expenses | -14,546 | -12,866 |
| Selling expenses | -15,635 | -13,745 |
| in EUR '000 | Q1 2014 | Q1 2013 |
| in EUR '000 | Q1 2014 | Q1 2013 |
|---|---|---|
| Interest and similar income | 94 | 82 |
| Interest and similar expenses | -4,184 | -4,786 |
| Interest from operations | -4,090 | -4,704 |
| Other: Market value of interest-rate swaps | 172 | 332 |
| Other: Non-controlling interests | -1,035 | -220 |
| Other interest | -863 | 112 |
| Total | -4,953 | -4,592 |
Income tax expense is calculated for the interim financial statements based on the assumptions of current tax planning.
| in EUR '000 | Q1 2014 | Q1 2013 |
|---|---|---|
| Earnings attributable to INDUS shareholders | 13,118 | 12,289 |
| Earnings attributable to discontinued operations | -1,559 | -391 |
| Earnings attributable to continuing operations | 14,677 | 12,680 |
| Weighted average shares outstanding (in thousands) | 24,451 | 22,228 |
| Earnings per share, continuing operations (in EUR) | 0.60 | 0.57 |
| Earnings per share, discontinued operations (in EUR) | -0.06 | -0.02 |
| in EUR '000 | March 31, 2014 | Dec. 31, 2013 |
|---|---|---|
| Capitalized development costs | 8,088 | 8,155 |
| Property rights, concessions, and other intangible assets | 20,157 | 20,732 |
| Total | 28,245 | 28,887 |
| in EUR '000 | March 31, 2014 | Dec. 31, 2013 |
|---|---|---|
| Land and buildings | 140,549 | 140,984 |
| Plant and machinery | 74,346 | 77,388 |
| Other equipment, factory, and office equipment | 34,716 | 34,728 |
| Advance payments and work in process | 23,759 | 18,733 |
| Total | 273,370 | 271,833 |
| in EUR '000 | March 31, 2014 | Dec. 31, 2013 |
|---|---|---|
| Raw materials and supplies | 88,390 | 82,493 |
| Unfinished goods | 87,513 | 74,579 |
| Finished goods and goods for resale | 77,233 | 73,252 |
| Prepayments for inventories | 4,926 | 5,732 |
| Total | 258,062 | 236,056 |
| 15,458 11,048 6,205 7,276 |
|---|
| 150,808 137,894 |
| March 31, 2014 Dec. 31, 2013 |
| Construction/ Infrastructure |
Automotive Technology |
Engineering | Medical Engineering/ Life Science |
Metals Technology |
Total Segments |
Reconciliation | Consolidated financial statements |
|
|---|---|---|---|---|---|---|---|---|
| Q1 2014 | ||||||||
| External sales with external third parties |
49,142 | 84,371 | 42,443 | 25,066 | 86,309 | 287,331 | -144 | 287,187 |
| External sales with Group companies | 2,680 | 8,605 | 8,727 | 409 | 7,731 | 28,152 | -28,152 | 0 |
| Sales | 51,822 | 92,976 | 51,170 | 25,475 | 94,040 | 315,483 | -28,296 | 287,187 |
| Segment earnings (EBIT) | 4,572 | 5,536 | 5,330 | 4,379 | 9,377 | 29,194 | -916 | 28,278 |
| Earnings from equity valuation | 0 | 207 | 0 | 0 | 0 | 207 | 0 | 207 |
| Depreciation and amortization | -1,316 | -4,692 | -1,442 | -589 | -2,722 | -10,761 | -139 | -10,900 |
| Segment EBITDA | 5,888 | 10,228 | 6,772 | 4,968 | 12,099 | 39,955 | -777 | 39,178 |
| Capital expenditure | 2,943 | 4,255 | 906 | 567 | 3,202 | 11,873 | 169 | 12,042 |
| Q1 2013 | ||||||||
| External sales with external third parties |
46,057 | 82,060 | 34,220 | 24,833 | 75,321 | 262,491 | -20 | 262,471 |
| External sales with Group companies | 1,929 | 7,784 | 1,321 | 356 | 8,407 | 19,797 | -19,797 | 0 |
| Sales | 47,986 | 89,844 | 35,541 | 25,189 | 83,728 | 282,288 | -19,817 | 262,471 |
| Segment earnings (EBIT) | 3,520 | 6,701 | 4,464 | 3,538 | 7,459 | 25,682 | -1,232 | 24,450 |
| Earnings from equity valuation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Depreciation and amortization | -1,272 | -4,607 | -696 | -579 | -2,628 | -9,782 | -108 | -9,890 |
| Segment EBITDA | 4,792 | 11,308 | 5,160 | 4,117 | 10,087 | 35,464 | -1,124 | 34,340 |
| Capital expenditure | 2,637 | 3,786 | 25,366 | 210 | 1,346 | 33,345 | 149 | 33,494 |
| of which company acquisitions | 0 | 0 | 24,686 | 0 | 0 | 24,686 | 0 | 24,686 |
| of which shares accounted for using the equity method |
1,596 | 2,555 | 0 | 0 | 0 | 4,151 | 0 | 4,151 |
The table below reconciles the total operating results of segment reporting with the calculation of income before tax:
| Q1 2014 | Q1 2013 | |
|---|---|---|
| Segment earnings (EBIT) | 29,194 | 25,682 |
| Areas not allocated, incl. holding company | -939 | -1,064 |
| Consolidations | 23 | -168 |
| Net interest | -4,953 | -4,592 |
| Earnings before taxes | 23,325 | 19,858 |
The classification of segments corresponds unchanged to the current status of internal reporting. The information relates to continuing activities. The companies are allocated to the segments on the basis of their selling markets insofar as the bulk of their product range is sold in that market environment (Automotive Technology, Medical Engineering/Life Science). Otherwise they are classified by common features in their production structure (Construction/Infrastructure, Engineering, Metals Technology).
The reconciliations contain the figures of the holding company, non-operational units not allocated to any segment, and consolidations. See the discussion provided in the management report regarding the products and services that generate segment sales.
The central control variable for the segments is operating earnings (EBIT) as defined in the consolidated financial statements. The segment information has been ascertained in compliance with the reporting and valuation methods that were applied during the preparation of the consolidated financial statements. Intersegment prices are based on arm's length prices to the extent that they can be established in a reliable manner and are determined on the basis of the cost-plus pricing method.
Sales are broken down by region in relation to our selling markets. The further classification of our diverse foreign activities by country is not expedient, as no country outside of Germany accounts for 10% of Group sales.
Noncurrent assets, less deferred taxes and financial instruments, are based on the domiciles of the respective companies. Further differentiation is not expedient, as the majority of companies are domiciled in Germany.
Due to INDUS's diversification policy there were no individual product or service groups and no individual customers that accounted for more than 10% of sales.
| in EUR '000 | Group | Germany | EU | Rest of world |
|---|---|---|---|---|
| Q1 2014 | ||||
| External sales with external third parties | 287,187 | 144,294 | 66,024 | 76,869 |
| Noncurrent assets, less deferred taxes and financial instruments |
645,193 | 559,661 | 5,826 | 79,706 |
| Q1 2013 | ||||
| External sales with external third parties | 262,471 | 136,417 | 53,898 | 72,156 |
| Noncurrent assets, less deferred taxes and financial instruments |
644,027 | 561,751 | 15,375 | 66,901 |
The table below shows the carrying amounts and fair values of financial instruments. The fair value of a financial instrument is the price that would be paid in an orderly transaction between market participants for the sale of an asset or transfer of a liability on the measurement date. Due to the influencing variables involved, reported fair value can only be regarded as an indicator of the actually realizable market value.
| Balance sheet value |
IFRS 7 not applicable |
Financial instruments IFRS 7 |
Measured at fair value |
Measured at amortized cost |
||
|---|---|---|---|---|---|---|
| Carrying amount |
Carrying amount |
Market value |
||||
| Financial assets | 8,660 | 8,660 | 8,660 | 9,435 | ||
| Cash and cash equivalents | 109,570 | 109,570 | 109,570 | 109,570 | ||
| Accounts receivable | 172,471 | 15,458 | 157,013 | 157,013 | 157,013 | |
| Other assets | 17,588 | 3,940 | 13,648 | 69 | 13,579 | 13,579 |
| Total assets | 308,289 | 19,398 | 288,891 | 69 | 288,822 | 289,597 |
| Financial liabilities | 442,570 | 442,570 | 442,570 | 430,610 | ||
| Trade accounts payable | 57,907 | 6,556 | 51,351 | 51,351 | 51,351 | |
| Other liabilities | 81,343 | 9,762 | 71,581 | 7,082 | 64,499 | 64,499 |
| Total financial liabilities | 581,820 | 16,318 | 565,502 | 7,082 | 558,420 | 546,460 |
| financial instruments as of dec. 31, 2013 (in EUR '000) | ||||||
|---|---|---|---|---|---|---|
| Balance sheet value |
IFRS 7 not applicable |
Financial instruments IFRS 7 |
Measured at fair value |
Measured at amortized cost |
||
| Carrying amount |
Carrying amount |
Market value |
||||
| Financial assets | 8,843 | 8,843 | 8,843 | 9,617 | ||
| Cash and cash equivalents | 115,921 | 115,921 | 115,921 | 115,921 | ||
| Accounts receivable | 156,218 | 11,048 | 145,170 | 145,170 | 145,170 | |
| Other assets | 14,951 | 2,156 | 12,795 | 12,795 | 12,795 | |
| Total assets | 295,933 | 13,204 | 282,729 | 0 | 282,729 | 283,503 |
| Financial liabilities | 423,529 | 423,529 | 423,529 | 410,383 | ||
| Trade accounts payable | 45,543 | 6,827 | 38,716 | 38,716 | 38,716 | |
| Other liabilities | 91,063 | 11,367 | 79,696 | 6,452 | 73,244 | 73,244 |
| Total financial liabilities | 560,135 | 18,194 | 541,941 | 6,452 | 535,489 | 522,343 |
| Carrying amount | ||
|---|---|---|
| March 31, 2014 | Dec. 31, 2013 | |
| Measured at fair value through profit and loss | 69 | 0 |
| Loans and receivables | 288,379 | 282,040 |
| Available-for-sale financial assets | 443 | 689 |
| Financial instruments: ASSETS | 288,891 | 282,729 |
| Measured at fair value through profit and loss | 7,082 | 6,452 |
| Financial liabilities measured at their residual carrying amounts | 558,420 | 535,489 |
| Financial instruments: EQUITY AND LIABILITIES | 565,502 | 541,941 |
Available-for-sale financial assets are long-term financial investments for which no pricing on an active market is available and the fair value of which cannot be reliably determined. These are carried at cost.
Related party disclosures primarily involve the ongoing remuneration of members of management in key positions, the Board of Management, and the Supervisory Board. Furthermore, there are consulting contracts and rent or leasing contracts in place with non-controlling shareholders or members of their families, and business relations with associated companies.
The quarterly financial statements do not contain information about changes in relationships that significantly differ from those in the 2013 annual financial statements.
By contract dated April 10, 2014, INDUS Holding AG acquired 75 % of the shares in ROLKO Kohlgrüber GmbH, based in Borgholzhausen. With locations in Borgholzhausen, Silkeborg (Denmark), Houten (the Netherlands) and Xiamen (China), the ROLKO Group is a leading supplier of rehabilitation accessories, particularly for wheelchairs and rollators. It was first consolidated in May 2014 and was classified as part of the Medical Engineering/Life Science segment.
The purchase price allocation has not been prepared to date, because IFRS financial statements must be prepared first.
The Board of Management of INDUS Holding AG approved this IFRS interim financial statement for publication on May 20, 2014.
Bergisch Gladbach, May 20, 2014 INDUS Holding AG
The Board of Management
Jürgen Abromeit Dr. Johannes Schmidt Rudolf Weichert
INDUS Holding AG
Kölner Straße 32 51429 Bergisch Gladbach P.O. Box 10 03 53 51403 Bergisch Gladbach Phone: +49 (0)2204/40 00-0 Fax: +49 (0)2204/40 00-20 Internet: www.indus.de E-mail: [email protected]
| June 11, 2014 | Annual shareholders' meeting 2014, Cologne | |||
|---|---|---|---|---|
| June 12, 2014 | Payout of dividend | |||
| August 21, 2014 | Interim report on June 30, 2014 | |||
| November 19, 2014 | Interim report on September 30, 2014 |
Responsible member of the Management Board: Jürgen Abromeit
& Investor Relations: Regina Wolter Phone: +49 (0)2204/40 00-70 Fax: +49 (0)2204/40 00-20 E-mail: [email protected]
INDUS Holding AG, Bergisch Gladbach
Concept/Design: Berichtsmanufaktur GmbH, Hamburg
Cover: PLANETROLL p. 3: ROLKO
This interim report is also available in German. Only the German version of the interim report is legally binding.
Disclaimer: This interim report contains forward-looking statements based on assumptions and estimates made by the Board of Management of INDUS Holding AG. Although the Board of Management is of the opinion that these assumptions and estimates are accurate, they are subject to certain risks and uncertainty. Actual future results may deviate substantially from these assumptions and estimates due to a variety of factors. These factors include changes in the general economic situation, the business, economic and competitive situation, foreign exchange and interest rates, and the legal setting. INDUS Holding AG shall not be held liable for the future development and actual future results being in line with the assumptions and estimates included in this interim report. Assumptions and estimates made in this interim report will not be updated.
www.indus.de
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