Quarterly Report • May 26, 2011
Quarterly Report
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| EUR millions | Q1 2011 | Q1 2010 |
|---|---|---|
| Sales | 255.6 | 205.5 |
| EBITDA | 37.3 | 28.4 |
| EBIT | 27.4 | 18.5 |
| EBT | 23.0 | 11.9 |
| Net result for the period (allocable to INDUS shareholders) | 15.4 | 6.2 |
| Operating cash flow | –8.3 | 6.1 |
| Cash flow from operating activities | –14.2 | –0.7 |
| Cash flow from investing activities | –8.4 | –24.3 |
| Cash flow from financing activities | 2.2 | –8.5 |
| Cash and cash equivalents | 76.7 | 60.3 |
| Earnings per share (in EUR) | 0.76 | 0.35 |
| Cash flow per share (in EUR) | – 0.7 | – 0.04 |
| Employees (number as of March 31) | 6,505 | 5,946 |
| Investments (number as of March 31) | 39 | 41 |
| Mio. EUR | March 31, 2011 | Dec. 31, 2010 |
| Total assets | 1,003.6 | 973.1 |
| Equity | 326.0 | 309.5 |
| Net debt | 401.8 | 379.4 |
| Equity ratio (in %) | 32.5 | 31.8 |
Construction/ Infrastructure
Automotive Engineering Components/ Engineering
Medical Engineering/ Life Science
Metal/ Metal Processing
| 2 | Letter to the Shareholders |
|---|---|
| 3 | INDUS on the Capital Market |
| 4 | Managing Risks, Exploiting Opportunities |
| 6 | Interim Management Report |
| 12 | Consolidated Interim Financial Statements as of March 31, 2011 |
Contact and Financial Calendar
Contents
INDUS is the leading specialist in the field of sustainable investment in German small and medium-sized companies. We mainly acquire owner-managed companies and support their business development entrepreneurially with a long-term orientation. Our subsidiaries are characterized in particular by their strong positions in specific niche markets. One of our most significant goals is to achieve lasting and solid value appreciation for our portfolio. We do this by maintaining a diversified investment structure and a corporate policy geared toward stable yields.
All of our decisions are guided by the long-term development of each and every company. We give our companies sound prospects and allow them entrepreneurial scope for action.
In 2010, our Group's workforce of around 6,000 generated sales of approximately EUR 972 million and EBIT of EUR 101 million. This meant our portfolio companies were able to capitalize on the economic rebound more strongly than most. We aim to keep our Group on this growth path in the current fiscal year.
The economy – particularly in Germany – is currently performing surprisingly well and we are pleased to be able to report very good figures for INDUS Holding AG in the first quarter of 2011. In the first three months of 2011, our Group generated sales of EUR 255.6 million (previous year: EUR 205.5 million), or 25 % above the previous year's quarter. The improvement in earnings is even more encouraging: EBIT of EUR 18.5 million from the previous year's quarter rose by approximately 50% to EUR 27.4 million. This very good result was supported by all of the Group's segments. In particular, the Automotive Components/Engineering and Metal/Metal Processing segments, which were already strong in 2010, were able to significantly build on their momentum.
To some extent, the economic situation is reminiscent of the first half of 2008. At that time, like today, booming export-driven demand assured full order books. At such times, purchase prices play a subordinate role – delivery capacity takes precedence. All seems to be well at present, particularly since companies have considerable leeway for passing on cost increases in their prices. Nevertheless, in this situation one can by no means discount the significant risk factors, particularly since they are beyond our control – or exogenous – and could become acute at any time. We are also observing the events in North Africa and the Middle East with concern. Another factor is the unresolved debt crisis in the eurozone.
INDUS remains optimistic but vigilant in the current situation. It is careful not to enter into excessive dependencies. We are broadly positioned and pursue a strategy of diversification. In addition, we put our faith in speed and consistency. Both helped us to withstand the effects of the last economic and financial crisis and change course as early as the end of 2008. We are now reaping the fruits of this labor: the 2010 recovery segued seamlessly into the first quarter of 2011. Overall, we are optimistic about the first half of 2011 because incoming orders and the order backlog are signaling a similarly good result for the second quarter.
Our assessment for the full year 2011 remains cautiously optimistic. Rising prices for energy and raw materials will put pressure on earnings. In addition, the labor market is tightening, which is leading to sharp wage increases. However, as long as companies are able to pass on cost increases, we anticipate stable earning power.
We thank you for your trust and look forward to welcoming you at this year's Annual Shareholders' Meeting on July 5 in Cologne, Germany.
Sincerely, The Board of Management
Helmut Ruwisch Jürgen Abromeit Dr. Wolfgang Höper Dr. Johannes Schmidt
Dear Shareholders, The German stock exchanges began 2011 full of optimism. Initially, this confidence led to rising share prices. However, the markets were then increasingly dominated by the unrest in North Africa, particularly Libya. The rise in the price of oil triggered by these conflicts fueled economic fears, which intensified as a result of the severe earthquake and tsunami in Japan. All of the indexes fell sharply, but were then able to recover partially.
In the first quarter of 2011, the INDUS share lagged behind the SDAX benchmark index despite very good corporate news. As of March 31, the share price was EUR 21.05. This corresponds to a price decline of 4% from the end of 2010 (share price as of 12/30/2010: EUR 21.99). The SDAX only lost approximately 2% in the corresponding period and closed at 5,144 points. After the financials were announced at the end of April 2011 along with a positive outlook for 2011, the INDUS share traded at EUR 22.52 on May 2. It thereby regained its level from year-end 2010. Higher turnover also indicated increased interest on the part of investors: on average, 48,963 shares were traded daily in the first quarter on all domestic stock exchanges (annual average for 2010: 38,479 shares). In the joint SDAX and MDAX ranking list as of the reporting date of March 31, the INDUS share took 61st place for free market capitalization and 65th place for stock exchange turnover (rank as of 12/31/2010: 56th and 70th place). At the end of March, the market capitalization of INDUS Holding AG amounted to around EUR 425.36 million.
At the Annual Shareholders' Meeting, the Board of Management and the Supervisory Board will propose the distribution of a dividend of EUR 0.90 per share for the 2010 fiscal year. INDUS remains committed to its earnings-based dividend policy and plans to pay out about EUR 18.2 million to shareholders. Consequently, the company intends to distribute some 50% of consolidated net income to shareholders. Based on the closing price for 2010, the INDUS share offers a high dividend yield of 4.1%. Maintaining the existing dividend policy will ensure that the interests of all shareholders continue to be respected, with the goal of remaining on a stable and sustainable growth path.
During the global economic crisis, the topic of risk management was suddenly "in": if a company had managed its risks properly, it weathered the recession fairly safely – and subsequently could take advantage of the opportunities presented by the recovery. How does an industrial holding company like INDUS with 40 small to medium-sized subsidiaries manage its risks? The responsible member of the Board of Management, Dr. Johannes Schmidt, offers his insights.
Dr. Johannes Schmidt, Member of the Board of Management, INDUS Holding AG, is responsible for Technology, Research/Development, Capital Expenditure, Risk Management, Sustainability, Equity Holdings Management
Our risk management is geared toward industry requirements and, of course, statutory provisions. As a result, we have a fundamentally effective system for identifying, analyzing, evaluating, and managing potential risks in various dimensions. Our risk management system is solidly integrated into business processes and is therefore an essential part of our management system – with respect to everything from planning, accounting and control processes through communications. A risk management handbook documents the processes and establishes accountability.
Within a week, analysis and identification of risks involving sales and procurement markets and the indirect impact resulting from disruptions affecting customers
Containing the direct sales risk to less than EUR 10 million for INDUS in 2011
Measures on the procurement side: replacement of exclusive materials from Japan (increase in inventories, identification and approval of alternative materials)
Analysis of call-off behavior, particularly in the automotive industry, in order to compensate in good time for potential fluctuations in demand
Central legal advice for portfolio companies coordinated by INDUS Holding
It cannot be denied that the entire structure has a certain formalism about it. However, after the business scandals of the past (consider Enron) and the latest economic downturn it is quite obvious that corporate stability cannot be taken for granted. You must take precautions on an ongoing basis. Therefore, for us risk management is the responsibility of the Board of Management and – directly or indirectly – a routine agenda item. In addition, routine processes offer a major advantage: they provide security. And security is very important to us!
Yes. We attach great importance to dovetailing closely with our portfolio companies. We achieve this through the organizational integration of opportunity and risk processes into everyday operations, regular coordination of planning with management, and detailed reporting and information processes. As a result, the portfolio companies report on the status of, and changes in, material risks in their businesses in a manner that is closely tied to existing controlling processes at INDUS. As a result, opportunities and risks are continuously reassessed by the Board of Management.
As a holding company of various manufacturing companies, trends in the economic environment are particularly important for us. Accordingly, we pay close attention to its signals. Aside from industry and overall economic conditions, we are currently monitoring trends in the energy and commodity markets in particular. We have two responses to these "external risks": the strategic one is diversification. With our broad portfolio, we avoid becoming dependent on individual sectors. And through regional diversification (domestic/foreign) we protect ourselves from excessive harm caused by local downturns. Our operational answer is close-to-the-market analysis: we continuously update our multifaceted view of the opportunity and risk situation by monitoring the market and the competition, discussing strategy with managing directors, and communicating with customers and suppliers. "Company-specific risks," for example in the areas of procurement, production, sales, human resources, IT, and legal affairs, are managed primarily from within the organization.
We consider ourselves very well positioned on the financing side: we manage the financing of our portfolio companies centrally from the holding company, while the companies normally finance themselves using their operating results. We transfer funds to or from the holding company depending on the liquidity situation. In order to be in a financial position to take action at any time, we maintain a suitable level of liquidity reserves at the holding company. A widely diversified financing structure, which is spread over 15 banks, also prevents us from becoming dependent on individual lenders. We eliminate interest rate risks by means of interest hedging instruments with congruent terms.
As a holding company, we view the investment portfolio as a whole. Both the consistent development of our portfolio companies and the acquisition of new companies constitute core growth opportunities for INDUS. In this area, the holding company has its eye in particular on optimizing and expanding its portfolio by adding strong-growing companies that generate stable returns on markets of the future.
Disregarding the widely discussed exogenous risks for the moment, we currently recognize many more opportunities than risks. Of course, we are keeping an eye on political developments in the crisis-hit regions as well as on currency stability and price trends in the commodity markets. At the same time, however, conditions are such that we are currently able to pursue our long-term corporate strategy quite well: our liquidity situation is comfortable and is undergirded by financing commitments from various banks. An additional factor is our excellent equity ratio. We want to leverage this in 2011 to strengthen our portfolio further. Therefore, we are planning to invest more than EUR 50 million in our portfolio companies in the current year. Furthermore, we are planning complementary and selective acquisitions. Overall, therefore, we are in a good starting position to take advantage of our opportunities and exploit market potential.
The global economy continued to expand at the beginning of 2011 after already growing by almost 5% in the previous year. The emerging countries, primarily in Asia but also in Eastern Europe and Latin America, are in the midst of a rapid upturn. The Western industrialized countries are showing increasing signs of recovery, despite the catastrophe in Japan, unrest in North Africa, and the government debt crisis in the eurozone. In the US, recent economic statistics lagged behind expectations to some extent. The impact of the earthquake in Japan on the country's economy still cannot be foreseen. A significant drop in production there is anticipated at least for the second quarter.
Growth rates in the eurozone diverged sharply in the early months of 2011. Although a few countries like Greece and Ireland still could not escape the recession, the powerful expansion in Germany continued in the first quarter. Economic output rose again by 1.5% from the previous quarter, leading economic experts to anticipate growth of nearly 3% in 2011. As a result, Germany would regain its pre-crisis level two years after the recession. The drivers remain exports and corporate investment. The German recovery is also supported by good general conditions: interest rates are very low and global demand for capital goods is brisk. A noticeable increase in private consumption was prevented in part by sharply rising energy prices. This caused the inflation rate in Germany and the eurozone to climb well above 2% again. The European Central Bank responded to the resulting inflationary threat by increasing base rates at the beginning of April.
INDUS began 2011 with great flair. We benefited from the continued expansion of the global economy, particularly due to rapid development in the emerging countries. Consolidated sales at INDUS Holding AG grew in the first three months of 2011 by EUR 50.1 million to EUR 255.6 million (previous year: EUR 205.5 million). The cost of materials increased as a result of strong demand to EUR 134.5 million (previous year: EUR 98.1 million). As a result, the cost of materials ratio with 52.6% was higher than in the same period of the previous year with 47,7%. Sharp increases in commodity prices were the primary cause of this development. Due to the good orders position, personnel expenses rose in absolute terms from EUR 58.9 million to EUR 68.9 million. However, the ratio of personnel costs to total sales improved again from 28.7% to 27%. This effect is a result of the rationalization and flexibility measures during the crisis. The personnel expenses do not capture costs for contracting and temporary work. Given the solidifying expansion, the core workforce is increasingly being expanded again with sense of proportion so that INDUS expects an overall slightly higher ratio of personnel costs to total sales for the entire year.
In a three-month comparison, earnings before interest, tax, depreciation, and amortization (EBITDA) grew from EUR 28.4 million to EUR 37.3 million. Depreciation and amortization of EUR 9.9 million remained almost constant (previous year: EUR 10.0 million), so that operating earnings before interest and tax (EBIT) of EUR 27.4 million as of March 31, 2011 were approximately 50% higher than in 2010 (previous year: EUR 18.5 million). With an EBIT margin of 10.7%, INDUS immediately achieved its self defined target range of 10% to 12% (previous year: 9.0%) – even though the first quarter is traditionally weaker for the Group than the full year due to seasonal factors.
At EUR 5.2 million, operating interest expenses (excluding interest as per IFRS) remained below their previous year's level of EUR 5.9 million. Interest income totaled EUR 0.1 million as interest rates remained very low (previous year: EUR 0.1 million). Net interest including IFRS interest improved significantly: interest expenses declined to EUR 4.4 million, compared with EUR 6.6 million in the previous year. Of that amount, approximately EUR 1.4 million was notionally attributable to the improved market valuation of interest rate hedges. The lower amount of interest actually paid was more significant: it declined to approximately EUR 0.9 million.
Earnings before taxes (EBT) reached EUR 23.0 million, almost double the level in 2010 (previous year: EUR 11.9 million). Excluding taxes and non-controlling interests, the result for the period came to EUR 15.4 million (previous year: EUR 6.7 million). This resulted in earnings per share of EUR 0.76 (previous year: EUR 0.35).
All Sectors Achieve Higher Sales and Earnings INDUS Holding AG's investment portfolio is structured in five segments: Construction/Infrastructure, Automotive Components/Engineering, Engineering, Medical Engineering/Life Science, and Metal/Metal Processing. The investment portfolio encompassed 39 operating units as of March 31, 2011.
Good weather conditions at the beginning of the year led to positive figures for production, sales, incoming orders, and employment in the German construction industry. In January 2011, sales and incoming orders in the construction sector were nominally higher by 29.3% and 10.3%, respectively, than at the same time in the previous year. However, the German Construction Industry Federation warned against prematurely interpreting these figures as a trend for the entire year. The comparison month of January 2010 was characterized by harsh winter conditions and extremely bad weather.
INDUS segment sales of EUR 47.2 million surpassed the EUR 38.8 million level of 2010 by more than 21%. As a result, the portfolio companies were again able to achieve substantial sales growth, despite the gradually dissipating stimulus programs, and simultaneously increase their income. The moderate winter, which led to fewer work stoppages than in 2010, and the sharp revival in the private residential construction business were significant positive factors for this development. In addition, some projects from the end of 2010 were billed in the first quarter of 2011. All of this led to a very good quarterly result for INDUS subsidiaries in this segment. Earnings before interest and taxes (EBIT) totaled EUR 4.1 million (previous year: EUR 2.6 million). The EBIT margin improved to 8.7% (previous year: 6.7%), returning to a high level.
| EUR millions | Q1 2011 | Q1 2010 |
|---|---|---|
| Sales | 47.2 | 38.8 |
| EBIT | 4.1 | 2.6 |
| EBIT margin in % | 8.7 | 6.7 |
| Depreciation/ amortization |
1.2 | 1.2 |
| Capital expenditure | 1.4 | 1.6 |
■ INDUS Automotive Components/Engineering Segment: High Global Demand Drives Business In the first two months of the current year, German automotive suppliers achieved sales growth of approximately 25%, according to the German Association of the Automotive Industry. Also encouraging is the fact that growth was generated both domestically – up 19% – and in international markets – up 34%. However, many companies are troubled by exploding commodity prices. For example, the price for iron ore almost doubled within a year. In the same period, rubber became almost 50% more expensive. The price for copper rose by almost a quarter. An additional factor is that the worldwide oil price is being influenced by unrest in North Africa and ongoing tension in the Arabian peninsula.
The portfolio companies in the Automotive Components/Engineering segment are developing very positively in view of high global demand for premium products from the German automotive industry. At EUR 80.2 million, segment sales achieved a very good level (previous year: EUR 60.0 million) and the quality of income increasingly improved. EBIT in the segment rose from EUR 4.0 million to EUR 6.4 million, which corresponded to an EBIT margin of about 8.0%. The segment thereby immediately achieved its targeted earnings level for 2011.
| EUR millions | Q1 2011 | Q1 2010 |
|---|---|---|
| Sales | 80.2 | 60.0 |
| EBIT | 6.4 | 4.0 |
| EBIT margin in % | 8.0 | 6.7 |
| Depreciation/ amortization |
5.0 | 5.3 |
| Capital expenditure | 4.5 | 4.9 |
The entire German engineering sector started the year well in 2011. In the first three months, cumulative production rose by 17.5%. The sector anticipates full-year growth of 14%. If this forecast is achieved, 2011 production would be only 6% below the level in the pre-crisis year of 2008. In 2010, Germany accounted for 17.3% of world trade in engineering – thus regaining the top spot – followed by Japan, the US, and China.
The companies in the Engineering segment recovered only gradually in 2010, but in the interim they are benefiting from increased demand for capital goods. Segment sales in the first three months were EUR 30.4 million, 10% higher than EUR 27.7 million in the previous year. Current incoming orders indicate that business in the late cyclical Engineering segment will continue to improve over the course of 2011. It is too early to estimate the impact of the current sharp rise in commodity and energy prices. Earnings before income and tax increased from EUR 2.8 million to EUR 3.7 million, while the EBIT margin is currently 12.2% (previous year: 10.1%).
| EUR millions | Q1 2011 | Q1 2010 |
|---|---|---|
| Sales | 30.4 | 27.7 |
| EBIT | 3.7 | 2.8 |
| EBIT margin in % | 12.2 | 10.1 |
| Depreciation/ amortization |
0.5 | 0.5 |
| Capital expenditure | 0.4 | 0.3 |
At the beginning of 2011, consumer confidence in Germany continued to improve. The propensity to buy rose in January 2011 to the highest level since December 2006 − despite the recent increase in price expectations. The positive outlook for the labor market further stimulated the mood among consumers. The GfK Group, a market research company, expects that private consumption will rise by 1.5% in 2011, triple the growth rate of the previous year. According to GFK, German consumers' newfound enthusiasm for spending not only spurs the upswing, but it also develops into a sustainable and reliable pillar.
The INDUS Group's Medical Engineering/Life Science segment is maintaining the stability of the previous year. Sales are growing surely and steadily and reached EUR 21.9 million in the first quarter (previous year: EUR 20.2 million). Although earnings before interest and taxes (EBIT) of EUR 3.5 million were nominally at the level of the previous year, returns declined. However, the financial statements for the first quarter of 2010 reflected earnings-enhancing one-time effects. In 2010, the return on sales (EBIT margin) averaged 15.2%. The EBIT margin in the first quarter of 2011 reached 16.0% (previous year: 17.3%).
| EUR millions | Q1 2011 | Q1 2010 |
|---|---|---|
| Sales | 21.9 | 20.2 |
| EBIT | 3.5 | 3.5 |
| EBIT margin in % | 16.0 | 17.3 |
| Depreciation/ amortization |
0.7 | 0.9 |
| Capital expenditure | 0.5 | 0.3 |
The metal and electrical industry's comeback lost pace somewhat at the beginning of 2011. According to estimates by the German industry association Gesamtmetall, the first quarter of 2011 grew by 1.5% from the fourth quarter of 2010. In the previous quarter, production had still risen by almost 6%. In March, incoming orders fell by 5.6% compared to February. In the entire first quarter of 2011, the metal and electrical industry received 2.7% more orders than in the fourth quarter of 2010. The sector expects the comeback process to continue in 2011, but at a slower pace, so that the sector will regain its pre-crisis level presumably in the fall. Corporate development is primarily being held back by the high level of energy and commodity prices.
In line with the boom in the automotive industry, the INDUS Metal/Metal Processing segment experienced strong growth in 2011. Sales of EUR 75.8 million in the first three months of 2011 exceeded the figure of EUR 58.9 million from the same period of 2010 by almost 29%. The earnings before interest and tax clearly confirm the upswing: EBIT reached EUR 10.7 million, representing an increase of 65% from the previous year (EUR 6.5 million). At 14.1%, the EBIT margin is very satisfactory (previous year: 11.0%).
| EUR millions | Q1 2011 | Q1 2010 |
|---|---|---|
| Sales | 75.8 | 58.9 |
| EBIT | 10.7 | 6.5 |
| EBIT margin in % | 14.1 | 11.0 |
| Depreciation/ amortization |
2.4 | 2.3 |
| Capital expenditure | 1.4 | 17.0 |
The number of employees rose by more than 500 people from the same period of the previous year as a result of the strong economy: from 5,946 employees in March 2010 to 6,505 employees as of now. INDUS portfolio companies created many new jobs, particularly in the Automotive Components/ Engineering and Metal/Metal Processing segments. Many of these were attributable to an initial move toward fixed-term employment contracts.
| Q1 2011 | Q1 2010 | |
|---|---|---|
| Employees | 6,505 | 5,946 |
Rapid Expansion Affects Operating Cash Flow The operating cash flow declined from the previous year from EUR 6.1 million to EUR –8.3 million. This was due to the sales-driven increase in inventories and accounts receivable and – to a lesser extent – an increase in accounts payable. Gratifyingly, the cost of interest paid decreased from EUR 6.9 million to EUR 6.0 million. Consequently, cash flow from operating activities amounted to EUR –14.2 million after EUR –0.7 million in the previous year. Cash flow from investing activities improved from EUR –24.3 million to EUR –8.4 million. In the first quarter of the previous year, INDUS acquired a majority of the Swiss HAKAMA AG and the remaining shares in OBUK. As a result of the near offsetting of new loans and loan redemptions on a net basis, cash flow from financing activities was EUR 2.2 million (previous year: EUR –8.5 million). Cash and cash equivalents as of the end of the first quarter of 2011 remained at a stable, high level of EUR 76.7 million.
As of March 31, 2011, INDUS had total assets of EUR 1,003.6 million, higher than at the end of 2010 (December 31, 2010: EUR 973.1 million). That was primarily the result of an increase in accounts receivable and inventories. The Group's equity of EUR 326.0 million again improved significantly from the end of 2010 (December 31, 2010: EUR 309.5 million). Consequently, the equity ratio reached 32.5% (December 31, 2010: 31.8%). INDUS calculates net debt as the difference between the sum of noncurrent and current financial liabilities and cash and cash equivalents. As of March 31, 2011, it totaled EUR 401.8 million.
INDUS Holding AG and its portfolio companies are exposed to a multiplicity of risks as a result of their international activities. Entrepreneurial action is inextricably linked with risk-taking. At the same time, this enables the company to seize new opportunities and, thereby, safeguard and strengthen the position on the market occupied by itself and its portfolio companies. The company operates an efficient risk management system for the early detection, comprehensive analysis, and consistent handling of risks.
The structure of the risk management system and the significance of particular risks are discussed in detail on pages 46 to 51 of the 2010 financial report. It is stated there that the company does not view itself as subject to any risks that could endanger its continued existence as a going concern. The annual report for INDUS Holding AG can be downloaded at www.indus.de.
Since March 31, 2011, no significant events have occurred that are expected to have a material impact on INDUS Holding AG's net assets, financial, or earnings position.
The German economy is on a steady upward trajectory, which is still driven by strong exports. In March 2011, exports from Germany reached the highest level since records began. With its small and medium-sized hidden champions, INDUS has been a particular beneficiary of this. Driven by high demand, the Metal Processing and Automotive Components/ Engineering segments have grown disproportionately strongly. The development of the Construction/ Infrastructure segment was also encouraging. The Group's activities with medical engineering and life science products remained on a good course.
As a result, our business developed favorably in the first quarter of 2011 as expected, despite the earthquake disaster in Japan and the unrest in North Africa. Given the order backlog and incoming orders, this positive trend is expected to continue in the second quarter of 2011. From INDUS' perspective, a number of exogenous risks exist for the second half of the year (the Japan crisis, unrest in North Africa, the debt crisis in the eurozone, and rising prices for materials and wages), which potentially could have a dampening effect on the business. In addition, a growing number of voices are predicting a slowdown for the German economy in the second half of the year, following the surge at the beginning of the year. In May, the Center for European Economic Research (ZEW) Indicator of Economic Sentiment for Germany fell for the third month in a row.
Nevertheless, INDUS currently anticipates a good result for 2011 as a whole. From the current viewpoint, total sales could reach the targeted record level of EUR 1.05 billion. In the light of the good results generated in the first quarter of 2011, our earnings forecast projects a pleasant EBIT margin greater than 10% for the full year.
| EUR '000 | Notes | Q1 2011 | Q1 2010* |
|---|---|---|---|
| Sales | 255,636 | 205,540 | |
| Other operating income | 3,753 | 3,716 | |
| Own work capitalized | 297 | 551 | |
| Change in inventories | 14,847 | 3,388 | |
| Cost of materials | [3] | –134,468 | –98,052 |
| Personnel expenses | [4] | –68,936 | –58,904 |
| Depreciation and amortization | [5] | –9,855 | –9,991 |
| Other operating expenses | [6] | –33,904 | –27,922 |
| Income from shares accounted for using the equity method | 75 | ||
| Other financial result | 52 | 50 | |
| Operating result (EBIT) | 27,422 | 18,451 | |
| Interest income | 123 | 112 | |
| Interest expenses | –4,570 | –6,697 | |
| Net interest | [7] | –4,447 | –6,585 |
| Earnings before taxes | 22,975 | 11,866 | |
| Taxes | [8] | –7,429 | –4,927 |
| Income from discontinued operations | [1] | –235 | |
| Earnings after taxes | 15,546 | 6,704 | |
| of which allocable to non-controlling shareholders | –173 | –502 | |
| of which allocable to INDUS shareholders | 15,373 | 6,202 | |
| Basic earnings per share in EUR | [2] | 0.76 | 0.35 |
*Previous year's figures adjusted
| EUR '000 | Q1 2011 | Q1 2010* |
|---|---|---|
| Earnings after taxes | 15,546 | 6,704 |
| Currency translation adjustment | 320 | –132 |
| Change in the market values of derivative financial instruments | 797 | –1,346 |
| Netting of deferred taxes | –126 | 213 |
| Income and expenses recognized directly in equity | 991 | –1,265 |
| Total income and expenses recognized in equity | 16,537 | 5,439 |
| of which non-controlling interests | 173 | 502 |
| of which allocable to INDUS shareholders | 16,364 | 4,937 |
*Previous year's figures adjusted
| EUR '000 | Notes | March 31, 2011 | Dec. 31, 2010* |
|---|---|---|---|
| Assets | |||
| Goodwill | 289,573 | 289,573 | |
| Intangible assets | (9) | 17,106 | 17,071 |
| Property, plant, and equipment | (10) | 242,724 | 244,460 |
| Financial assets | 8,803 | 8,552 | |
| Shares accounted for using the equity method | 1,324 | 1,324 | |
| Other noncurrent assets | 1,176 | 1,415 | |
| Deferred taxes | 2,894 | 2,747 | |
| Noncurrent assets | 563,600 | 565,142 | |
| Cash and cash equivalents | 76,652 | 96,840 | |
| Accounts receivable | (11) | 145,165 | 117,617 |
| Inventories | (12) | 201,410 | 178,756 |
| Other current assets | 10,019 | 7,944 | |
| Current income taxes | 6,706 | 6,790 | |
| Current assets | 439,952 | 407,947 | |
| Total assets | 1,003,552 | 973,089 | |
| Equity and Liabilities | |||
| Paid-in capital | 206,329 | 206,329 | |
| Generated capital | 117,848 | 101,484 | |
| Equity held by INDUS shareholders | 324,177 | 307,813 | |
| Non-controlling interests in the equity | 1,849 | 1,676 | |
| Group equity | 326,026 | 309,489 | |
| Noncurrent financial liabilities | 351,743 | 326,417 | |
| Provisions for pensions | 15,612 | 15,541 | |
| Other noncurrent provisions | 2,804 | 2,788 | |
| Other noncurrent liabilities | 14,582 | 14,784 | |
| Deferred taxes | 16,936 | 15,743 | |
| Noncurrent liabilities | 401,677 | 375,273 | |
| Current financial liabilities | 126,708 | 149,814 | |
| Trade accounts payable | 51,634 | 36,053 | |
| Current provisions | 43,053 | 43,882 | |
| Other current liabilities | 47,179 | 51,225 | |
| Current income taxes | 7,275 | 7,353 | |
| Current liabilities | 275,849 | 288,327 | |
| Total equity and liabilities | 1,003,552 | 973,089 |
*Previous year's figures adjusted
| EUR '000 | Q1 2011 | Q1 2010* |
|---|---|---|
| Income after taxes generated by continuing operations | 15,546 | 6,939 |
| Depreciation/Write-ups | ||
| of noncurrent assets (excluding deferred taxes) | 9,855 | 9,991 |
| Taxes | 7,429 | 4,927 |
| Net interest | 4,447 | 6,585 |
| Cash earnings of discontinued operations | 0 | –214 |
| Income from companies accounted for using the equity method | 0 | –75 |
| Other non-cash transactions | –727 | –386 |
| Changes in provisions | –742 | 3,077 |
| Increase (–)/decrease (+) in inventories, trade accounts receivable and other assets | ||
| not allocable to investing or financing activities | –52,101 | –23,913 |
| Increase (+)/decrease (–) in trade accounts payable and other liabilities not allocable | ||
| to investing or financing activities | 14,572 | 3,057 |
| Income taxes received/paid | –6,628 | –3,936 |
| Dividends received | 0 | 0 |
| Operating cash flow | –8,349 | 6,052 |
| Interest paid | –5,997 | –6,872 |
| Interest received | 123 | 112 |
| Cash flow from operating activities | –14,223 | –708 |
| Cash outflow from investments in | ||
| property, plant, and equipment and intangible assets | –8,189 | –20,711 |
| financial assets | –251 | 0 |
| shares in fully consolidated companies | 0 | –4,199 |
| Cash inflow from the disposal of | ||
| shares in fully consolidated companies | 0 | 0 |
| other assets | 35 | 592 |
| Cash flow from investing activities | –8,405 | –24,318 |
| Cash inflows from the assumption of debt | 41,559 | 13,280 |
| Cash outflows from the repayment of debt | –39,339 | –21,749 |
| Cashflow from financing activities of discontinued operations | 0 | 0 |
| Cash flow from financing activities | 2,220 | –8,469 |
| Net cash change in financial facilities | –20,408 | –33,495 |
| Changes in cash and cash equivalents caused by currency exchange rates | 220 | 256 |
| Cash and cash equivalents at the beginning of the period | 96,840 | 93,506 |
| Cash and cash equivalents at the end of the period | 76,652 | 60,267 |
| Cash transactions related to the sale of investments | 0 | 4,199 |
| plus financial liabilities assumed | 0 | 0 |
| minus financial facilities purchased | 0 | 0 |
| Net purchase price | 0 | 4,199 |
1) Previous year's figures adjusted
Severance payments for non-controlling shareholders in connection with the full goodwill method of accounting, which came due in the first quarter of 2010, are included in payments for capital expenditure for property, plant, and equipment and intangible assets.
| Jan. 1 – March 31, 2011 | Opening balance |
Dividend | Recognised income |
Closing balance |
|---|---|---|---|---|
| EUR '000 | Jan. 1, 2011 | payment | and expenses | March 31, 2011 |
| Q1 2011 | ||||
| Subscribed capital | 52,538 | 0 | 0 | 52,538 |
| Capital reserve | 153,791 | 0 | 0 | 153,791 |
| Paid-in capital | 206,329 | 0 | 0 | 206,329 |
| Accumulated earnings | 106,969 | 0 | 15,373 | 122,342 |
| Currency translation reserve | –1,332 | 0 | 320 | –1,012 |
| Reserve for the marked-to-market | ||||
| valuation of financial instruments | –4,153 | 0 | 671 | –3,482 |
| Capital generated | 101,484 | 0 | 16,364 | 117,848 |
| Equity held by INDUS shareholders | 307,813 | 0 | 16,364 | 324,177 |
| Interests allocable to non-controlling | ||||
| shareholders | 1,676 | 0 | 173 | 1,849 |
| Group equity | 309,489 | 0 | 16,537 | 326,026 |
| Jan. 1 – March 31, 2010 | Opening balance |
Dividend | Recognised income |
Closing balance |
|---|---|---|---|---|
| EUR '000 | Jan. 1, 2010 | payment | and expenses | March 31, 2010 |
| Q1 2011 | ||||
| Subscribed capital | 47,762 | 0 | 0 | 47,762 |
| Kapitalrücklage | 125,168 | 0 | 0 | 125,168 |
| Paid-in capital | 172,930 | 0 | 0 | 172,930 |
| Accumulated earnings | 69,554 | 0 | 6,202 | 75,756 |
| Currency translation reserve | 2,080 | 0 | –132 | 1,948 |
| Reserve for the marked-to-market | ||||
| valuation of financial instruments | –4,586 | 0 | –1,133 | –5,719 |
| Capital generated | 67,048 | 0 | 4,937 | 71,985 |
| Equity held by INDUS shareholders | 239,978 | 0 | 4,937 | 244,915 |
| Interests allocable to non-controlling | ||||
| shareholders | 1,736 | 0 | 502 | 2,238 |
| Group equity | 241,714 | 0 | 5,439 | 247,153 |
Reserves for currency translation and the marked-to-market valuation of financial instruments include unrealized gains and losses. The reserve for the marked-to-market valuation of financial instruments exclusively includes the effective portions of the interest-rate hedges.
Given the theoretical retirability of shares by non-controlling shareholders, the non-controlling interests in the capital of the company are not disclosed under equity, but under other liabilities. This is ordinarily the case at German limited partnerships. At corporations, it depends on how call and put options are structured.
INDUS Holding AG, based in Bergisch Gladbach, Germany, entered in the Cologne commercial register (HRB 46360), prepared its consolidated financial statements for the first quarter of 2011 in accordance with International Financial Reporting Standards (IFRS) and the interpretation of such by the International Financial Reporting Interpretations Committee (IFRIC) as endorsed by the European Union. 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 and was not subject to a 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 are applied as in the consolidated financial statements for the 2010 fiscal year. They are described there in detail. Since this quarterly report does not provide the comprehensive information of 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 2011 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 the 2011 fiscal year have been implemented in these interim financial statements.
To be applied for the first time in the 2011 fiscal year are the revised version of IAS 24 "Related Party Disclosures" as well as amendments to IFRS 2010 ("Improvements to the International Financial Reporting Standards"). The guidelines to be applied for the first time in the 2011 fiscal year have no material impact on the presentation of the net assets, financial, and earnings position.
In the consolidated financial statements, all subsidiary companies are fully consolidated if INDUS Holding AG has the direct or indirect possibility of influencing the companies' financial and business policy for the benefit of the INDUS Group. Associated companies for which the financial and business policy 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 from the date on which the business is transferred. After the date on which the decision is made to divest the company in question, they are classified as "held for sale."
Effective from January 1, 2010 INDUS Holding AG acquired a 60% ownership and voting rights stake in the Swiss company HAKAMA AG in Bättwil near Basle and expanded its business activities to Switzerland in the process. The previous owners will remain as managing directors of HAKAMA AG with their 40% shareholding.
In connection with the acquisition of the 60% shareholding in HAKAMA AG, reciprocal call/put option agreements were concluded for the remaining 40% of the shares with essentially identical exercise conditions for both sides. The options can be mutually exercised for the first time as of December 31, 2014 or, in the case of an earlier departure of non-controlling shareholders from management, at the time of departure. The combination of the two options provides for the immediate passing of the economic ownership of the shares embodied in the option. Accordingly, the company acquisition is presented as if 100% of the shares had been acquired.
The fair value of the entire consideration transferred for the acquisition of HAKAMA AG amounted to EUR 5,631,000 at the time of acquisition, of which EUR 4,199,000 was cash and EUR 1,432,000 was made up of contingent purchase price obligations. The latter results from the aforementioned reciprocal call/put option agreements. The contingent purchase price obligations were measured at the present value of the option price to be paid, which consists primarily of a fixed-price component.
The company acquisition included noncurrent assets of EUR 14,749,000 and current assets of EUR 3,559,000. No financial resources were acquired. The company acquisition entailed the assumption of noncurrent liabilities of EUR 10,822,000 and current liabilities of EUR 1,855,000. These noncurrent liabilities primarily involve finance leases.
The company contributed sales of EUR 4.9 million and EBIT of EUR 0.7 million to the first quarter 2010 consolidated net income. The company was assigned to the Metal/Metal Processing segment.
In the current fiscal year, no new companies were acquired or consolidated for the first time.
INDUS sold the operating activities of Maschinenfabrik BERNER GmbH & Co. KG effective as of May 1, 2010. In the current fiscal year, no equity interests were sold or classified as held for sale.
| EUR '000 | Q1 2011 | Q1 2010 |
|---|---|---|
| Sales | – | 624 |
| Expenses and other income | – | –905 |
| Operating result | – | –281 |
| Net interest | – | 3 |
| Earnings before taxes | – | –278 |
| Taxes | – | 43 |
| Earnings after taxes from current operations | – | –235 |
| Income from deconsolidations | – | 0 |
| Income from discontinued operations | – | –235 |
| Tax expense (+)/revenue (–) from divestments | – | 0 |
| EUR '000 | Q1 2011 | Q1 2010 |
|---|---|---|
| Earnings attributable to INDUS shareholders | 15,373 | 6,202 |
| Earnings attributable to discontinued operations | – | 235 |
| Earnings attributable to continuing operations | 15,373 | 6,437 |
| Shares in circulation (thousands) | 20,207 | 18,370 |
| Earnings per share, continuing operations (in EUR) | 0.76 | 0.35 |
| Earnings per share, discontinued operations (in EUR) | – | – 0.01 |
* Previous year's figures adjusted
According to IAS 33, earnings per share are based on consolidated net income from continuing operations. Earnings per share are calculated by dividing earnings from continuing operations by the average annual number of outstanding shares.
In the event of the authorized capital being utilized, dilutions will arise in the future.
| EUR '000 | Q1 2011 | Q1 2010 |
|---|---|---|
| Raw materials and goods for resale | –118,983 | –86,906 |
| Purchased services | –15,485 | –11,146 |
| Total | –134,468 | –98,052 |
| EUR '000 | Q1 2011 | Q1 2010 |
|---|---|---|
| Wages and salaries | –58,114 | –49,695 |
| Social security and pensions | –10,822 | –9,209 |
| Total | –68,936 | –58,904 |
| EUR '000 | Q1 2011 | Q1 2010 |
|---|---|---|
| Depreciation of property, plant, and equipment and intangible assets |
–9,040 | –8,668 |
| Scheduled amortization of value-added within the Group | –815 | –1,323 |
| Total | –9,855 | –9,991 |
| EUR '000 | Q1 2011 | Q1 2010 |
|---|---|---|
| Operating expenses | –11,722 | –9,799 |
| Selling expenses | –12,360 | –10,141 |
| Administrative expenses | –6,859 | –5,726 |
| Other expenses | –2,963 | –2,256 |
| Total | –33,904 | –27,922 |
| EUR '000 | Q1 2011 | Q1 2010 |
|---|---|---|
| Interest and similar income | 123 | 112 |
| Interest and similar expenses | –5,156 | –5,856 |
| Interest from operations | –5,033 | –5,744 |
| IFRS interest: market value of interest-rate swaps | 626 | –771 |
| IFRS interest: non-controlling interests | –40 | –70 |
| IFRS interest | 586 | –841 |
| Total | –4,447 | –6,585 |
Income tax expense is calculated for the interim financial statements based on the assumptions of current tax planning.
| EUR '000 | March 31, 2011 | Dec. 31, 2010 |
|---|---|---|
| Capitalized development costs | 9,729 | 9,880 |
| Property rights, concessions, and other intangible assets | 7,377 | 7,191 |
| Total | 17,106 | 17,071 |
| EUR '000 | March 31, 2011 | Dec. 31, 2010 |
|---|---|---|
| Land and buildings | 125,471 | 126,341 |
| Plant and machinery | 84,476 | 86,474 |
| Other equipment, factory and office equipment | 28,187 | 28,351 |
| Advance payments and plant under construction | 4,590 | 3,294 |
| Total | 242,724 | 244,460 |
| EUR '000 | March 31, 2011 | Dec. 31, 2010 |
|---|---|---|
| Accounts receivable from customers | 139,651 | 112,171 |
| Future accounts receivable from customer-specific construction contracts |
5,514 | 4,935 |
| Accounts receivable from associated companies | – | 511 |
| Total | 145,165 | 117,617 |
| EUR '000 | March 31, 2011 | Dec. 31, 2010 |
|---|---|---|
| Raw materials and supplies | 71,995 | 63,455 |
| Unfinished goods | 68,508 | 57,100 |
| Finished goods and goods for resale | 59,641 | 56,488 |
| Prepayments to third parties for inventories | 1,266 | 1,713 |
| Total | 201,410 | 178,756 |
The classification of the segments corresponds to the current status of internal reporting. The information relates to continuing activities. The previous year's figures have been adjusted accordingly. In accordance with the amendments to IFRS 8, segment assets are no longer disclosed for the previous year.
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 Components/Engineering, Medical Engineering/Life Science). Otherwise they are classified by common features in their production structure (Construction and Infrastructure, Engineering, Metal/Metal Processing). The reconciliations contain the figures of the holding company, non-operational units not allocated to any segment, and consolidations.
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.
| Segment reporting in accordance with IFRS 8 Q1 2011 EUR '000 |
Construc tion/Infra structure |
Automotive Compo nents/Engi neering |
Enginee ring |
Medical Enginee ring/Life Science |
Metal/ Metal Processing |
Total segments |
Recon ciliation |
Consoli dated financial statements |
|---|---|---|---|---|---|---|---|---|
| External sales | 47,240 | 80,241 | 30,406 | 21,949 | 75,826 | 255,662 | –26 | 255,636 |
| Internal sales | 1,505 | 6,263 | 1,873 | 457 | 5,059 | 15,157 | –15,157 | 0 |
| Sales | 48,745 | 86,504 | 32,279 | 22,406 | 80,885 | 270,819 | –15,183 | 255,636 |
| Segment earnings (EBIT) | 4,107 | 6,385 | 3,669 | 3,505 | 10,747 | 28,413 | –991 | 27,422 |
| Earnings from equity valuation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Depreciation/Amortization | –1,195 | –5,024 | –467 | –658 | –2,411 | –9,755 | –100 | –9,855 |
| of which scheduled depreciation for wear and tear from first-time consolidation |
–114 | –602 | –8 | –13 | –78 | –815 | 0 | –815 |
| of which unscheduled deprecia tion for wear and tear from first-time consolidation |
0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Capital expenditure | 1,412 | 4,491 | 361 | 451 | 1,425 | 8,140 | 14 | 8,154 |
| of which company acquisitions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Shares accounted for using the equity method |
1,324 | 0 | 0 | 0 | 0 | 1,324 | 0 | 1,324 |
| Additional information: EBITDA | 5,302 | 11,409 | 4,136 | 4,163 | 13,158 | 38,168 | –891 | 37,277 |
| Segment reporting in accordance with IFRS 8 Q1 2010 EUR '000 |
Construc tion/Infra structure |
Automotive Compo nents/Engi neering |
Enginee ring |
Medical Enginee ring/Life Science |
Metal/ Metal Processing |
Total segments |
Recon ciliation |
Consoli dated financial statements |
|---|---|---|---|---|---|---|---|---|
| External sales | 38,767 | 60,041 | 27,675 | 20,175 | 58,859 | 205,517 | 23 | 205,540 |
| Internal sales | 1,311 | 3,766 | 1,700 | 388 | 4,409 | 11,574 | –11,574 | 0 |
| Sales | 40,078 | 63,807 | 29,375 | 20,563 | 63,268 | 217,091 | –11,551 | 205,540 |
| Segment earnings (EBIT) | 2,630 | 3,953 | 2,825 | 3,480 | 6,474 | 19,362 | –911 | 18,451 |
| Earnings from equity valuation | 0 | 0 | 0 | 75 | 0 | 75 | 0 | 75 |
| Depreciation/Amortization | –1,225 | –5,309 | –465 | –856 | –2,287 | –10,142 | 151 | –9,991 |
| of which scheduled depreciation for wear and tear from first-time consolidation |
–220 | –1,116 | –7 | –12 | –217 | –1,572 | 250 | –1,322 |
| of which unscheduled deprecia tion for wear and tear from first-time consolidation |
0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Capital expenditure | 1,646 | 4,949 | 291 | 338 | 16,969 | 24,193 | 16 | 24,209 |
| of which company acquisitions | 0 | 0 | 0 | 0 | 13,893 | 13,893 | 0 | 13,893 |
| Shares accounted for using the equity method |
1,169 | 0 | 0 | 3,484 | 0 | 4,653 | 0 | 4,653 |
| Additional information: EBITDA | 3,855 | 9,262 | 3,290 | 4,336 | 8,761 | 29,504 | –1,062 | 28,442 |
The following table reconciles the total operating results of segment reporting with the calculation of consolidated earnings before tax.
| EUR '000 | Q1 2011 | Q1 2010 |
|---|---|---|
| Segment earnings (EBIT) | 28,413 | 19,362 |
| Areas not allocated, incl. holding company | –1,024 | –941 |
| Consolidations | 33 | 30 |
| Net interest | –4,447 | –6,585 |
| Earnings before taxes | 22,975 | 11,866 |
| Q1 2011 EUR '000 |
Group | Germany | Abroad |
|---|---|---|---|
| External Sales | 255,636 | 133,523 | 122,113 |
| Noncurrent assets less deferred taxes and finnacial instruments |
550,726 | 482,841 | 67,885 |
| Q1 2010 | |||
|---|---|---|---|
| EUR '000 | Group | Germany | Abroad |
| External Sales | 205,540 | 111,232 | 94,308 |
| Noncurrent assets less deferred taxes | |||
| and finnacial instruments | 564,381 | 499,038 | 65,343 |
The regionalization of sales is based on the selling markets. The further classification of the 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 the companies are domiciled in Germany.
Due to INDUS' diversification policy there were no individual product or service groups and no individual customers that accounted for more than 10% of sales.
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 rental or leasing contracts with non-controlling shareholders or members of their families, and business relations with associated companies.
In these quarterly financial statements, there is nothing to report about changes in conditions that materially depart from those in the 2010 annual financial statements.
The recording of discontinued operations in accordance with IFRS 5.34 necessitates an adjustment of the previous year's figures as shown below:
| Adjustment to the previous year's statement of income EUR '000 |
Q1 2010 published |
IFRS 5 | Q1 2010 comparable |
|---|---|---|---|
| Sales | 206,164 | –624 | 205,540 |
| Other operating income | 3,746 | –30 | 3,716 |
| Own work capitalized | 551 | 551 | |
| Change in inventories | 3,718 | –330 | 3,388 |
| Cost of materials | –98,517 | 465 | –98,052 |
| Personnel expenses | –59,296 | 392 | –58,904 |
| Depreciation and amortization | –10,059 | 68 | –9,991 |
| Other operating expenses | –28,262 | 340 | –27,922 |
| Income from shares accounted for using | |||
| the equity method | 75 | 75 | |
| Financial result | 50 | 50 | |
| Operating result (EBIT) | 18,170 | 281 | 18,451 |
| Interest income | 116 | –4 | 112 |
| Interest expenses | –6,698 | 1 | –6,697 |
| Net interest | –6,582 | –3 | –6,585 |
| Earnings before taxes | 11,588 | 278 | 11,866 |
| Taxes | –4,884 | –43 | –4,927 |
| Income from discontinued operations | –235 | –235 | |
| Earnings after taxes | 6,704 | 6,704 | |
| of which allocable to non-controlling | |||
| shareholders | –502 | –502 | |
| of which allocable to INDUS shareholders | 6,202 | 6,202 | |
| Basic earnings per share in EUR | 0.34 | 0.01 | 0.35 |
The adjustment made in accordance with IFRS 5 relates to Maschinenfabrik BERNER GmbH & Co. KG.
The first-time consolidation of HAKAMA AG was initially entered provisionally and then completed with the preparation of the 2010 annual financial statements. The comparative figures for the first quarter of 2010 were retrospectively adjusted for the final balance sheet entry, without a notable effect on the statement of income.
The following adjustments were made to the statement of financial position for the first quarter of 2010: land and buildings (EUR +1,045,000), finance lease liabilities (EUR +809,000), non-controlling equity interests (EUR –1,348,000) as well as other liabilities (EUR +1,584,000). The changes were made for the previous year's figures in the statement of changes in equity. In addition, related adjustments were made to the statement of cash flows. Primarily reflecting accounting for finance leases, EUR 11,036,000 was offset between cash outflows for shares in consolidated companies and cash inflows for the assumption of debt.
After the end of first quarter of 2011, there were no significant events.
Bergisch Gladbach, Germany, May 2011
The Supervisory Board
| July 5, 2011 | Annual shareholders' meeting 2010, Cologne/Trade Fair |
|---|---|
| August 25, 2011 | Interim report H1 2011 |
| November 22, 2011 | German Equity Forum, Frankfurt/Main |
| November 24, 2011 | Interim report on the first three quarters 2011 |
INDUS Holding AG Kölner Strasse 32 51429 Bergisch Gladbach Postfach 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]
Responsible member in the Management Board: Jürgen Abromeit
Contact Public Relations & Investor Relations: Regina Wolter Phone: +49 (0)2204/40 00-70 Fax: +49 (0)2204/40 00-20 E-mail: [email protected]
Publisher: INDUS Holding AG, Bergisch Gladbach
Concept/Design: Berichtsmanufaktur GmbH, Hamburg
Photos: Catrin Moritz, Essen INDUS Group
This interim report is also available in German. Both the English and the German versions of the interim report can be downloaded from the Internet at www.indus.de under Investor Relations/Annual and Interim Reports. Only the German version of the annual report is legally binding.
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 annual report. Assumptions and estimates made in this interim report will not be updated.
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