Rosenbauer International AG

Quarterly Report • Aug 14, 2020

Group key figures

Key financial figures		1–6/2018	1–6/2019	1–6/2020
Revenues	€ million	352.7	394.6	458.0
EBITDA	€ million	19.4	16.6	17.7
EBIT	€ million	10.1	5.2	5.4
EBIT margin		2.9%	1.3%	1.2%
EBT	€ million	6.1	2.0	2.5
Net profit for the period	€ million	5.3	1.6	2.2
Cash flow from operating activities	€ million	-39.4	-115.7	-34.0
Investments1	€ million	-8.2	-6.8	-7.0
Total assets2	€ million	696.2	900.8	989.5
Equity in % of total assets		31.7%	25,1%	25.2%
Capital employed (average)	€ million	493.2	597.2	696.7
Return on capital employed		2.0%	0.9%	0.8%
Return on equity		2.7%	0.9%	1.0%
Net debt	€ million	245.5	396.8	393.4
Trade working capital	€ million	388.6	514.9	505.6
Gearing ratio		111.2%	175.6%	158.1%

Key performance figures		1–6/2018	1–6/2019	1–6/2020
Order backlog as of Jun 30	€ million	1,030.5	1,229.4	1,118.2
Order intake	€ million	525.4	571.1	455.3
Employees as of Jun 30		3,471	3,683	3,967

Key stock exchange figures		1–6/2018	1–6/2019	1–6/2020
Closing share price	€	47.0	42.5	32.7
Number of shares	million units	6.8	6.8	6.8
Market capitalization	€ million	319.6	289.0	222.4
Earnings per share	€	0.1	-0.4	-0.5

1 Investments relate to rights and property, plant and equipment (without usage rights according to IFRS 16)

2 Details on IFRS 16 under "Explanatory notes", page 14

EBIT (IN MIO €)

Content

INTERIM GROUP MANAGEMENT REPORT

INTERIM CONSOLIDATED FINANCIAL STATEMENTS

• Consolidated statement of financial position
• Consolidated income statement
• Presentation of the consolidated statement of comprehensive income
  • Changes in consolidated equity
  • Consolidated statement of cash flows
  • Segment reporting
  • Explanatory notes

STATEMENT OF ALL LEGAL REPRESENTATIVES

19 CONTACT AND FINANCIAL CALENDAR

Interim Group management report

ECONOMIC ENVIRONMENT

The negative impact of the COVID-19 pandemic on global economic activity in the first six months of 2020 has been stronger than expected. At the same time, economic recovery has been slower. Against this background, the International Monetary Fund (IMF) adjusted its outlook in June and raised the decline in global economic output from -3.0 % to -4.9 % this year.

This decline will affect all regions for the first time. The only exception here is China, whose economy is performing better again after a sharp slump in the first quarter, and is expected to even record a plus of 1.0 % by the end of the year.

The performance differences between the individual economies may be significant over the course of the year and will reflect the development of the pandemic, the effectiveness of countermeasures, the respective economic structure, the dependence on external financial flows and the growth trends of the pre-crisis period. For 2021, the IMF expects a gradual increase in private consumption and a consolidation of investing activity; global economic growth is anticipated to reach 5.4 % next year.

The firefighting industry is a typical "laggard" of the general economy. Although demand slowed in the second quarter, the sector should be able to assert in the current declining economic environment thanks to full order books.

DEVELOPMENT OF REVENUES AND EARNINGS

Revenues

The Rosenbauer Group generated revenues of € 458.0 million in the first half of 2020 (1–6/2019: € 394.6 million). This represents an increase of 16.1 % over the same period last year, and marks another historic high for the reporting period. The reasons for this include the solid order book and thus continued strong production output at all locations.

The increase in revenues can be attributed to all sales areas1 , but particularly to the NISA area, which increased its business volume by 39.4 %, and the MENA area, which grew by 29.9 %. The NOMA area increased its revenues by 19 %.

The consolidated revenues are currently divided across the sales areas as follows: 30 % in the CEEU area, 12 % in the NISA area, 8 % in the MENA area, 13 % in the APAC area, 34 % in the NOMA area, and 3 % in the Stationary Fire Protection segment.

Result of operations

At € 5.4 million, EBIT in the first six months of 2020 was up on the corresponding period of the previous year (1–6/2019: € 5.2 million) despite the adverse effects of the COVID-19 pandemic. The burden from the ongoing global health crisis amounted to € 9 million.

Consolidated EBT for the reporting period therefore amounted to € 2.5 million (1–6/2019: € 2 million).

ORDERS

From January to June 2020, the Rosenbauer Group's incoming orders of € 455.3 million were at the same level as half-year revenues, but below the corresponding figure for the previous year (1–6/2019: € 571.1 million). This is mainly due to the downward development of the APAC area, where the Chinese market has come to a standstill following the reorganization of the fire service and there are project delays in numerous other countries.

The order backlog as of June 30, 2020 remains solid and amounted to € 1,118.2 million (June 30, 2019: € 1,229.4 million). This order book gives the Rosenbauer Group a satisfactory level of capacity utilization at its production facilities and good visibility for the next six months.

¹ CEEU area: Central and Eastern Europe; NISA area: Northern Europe, Iberia, South America and Africa; MENA area: Middle East and North Africa; APAC area: Asia-Pacific, Australia, China; NOMA area: North and Middle America

SEGMENT DEVELOPMENT

In line with the organizational structure, segment reporting is presented based on the five defined areas or sales regions: the CEEU area (Central and Eastern Europe), the NISA area (Northern Europe, Iberia, South America and Africa), the MENA area (Middle East and North Africa), the APAC area (Asia-Pacific, Australia, China), and the NOMA area (North and Middle America).

In addition to this geographical structure, the SFP (Stationary Fire Protection) segment is shown as a further segment in internal reporting.

CEEU area segment

The CEEU area comprises most countries of Central and Eastern Europe, with the D-A-CH region (Germany, Austria, Switzerland) as its historic domestic market, as well as the Baltics.

The CEEU area includes the Group companies Rosenbauer International and Rosenbauer Österreich in Leonding (Austria), Rosenbauer Deutschland in Luckenwalde (Germany), Rosenbauer Karlsruhe (Germany), Rosenbauer Slovenia in Radgona (Slovenia), Rosenbauer Rovereto (Italy), Rosenbauer Italia in Andrian (Italy) and Rosenbauer Schweiz in Oberglatt (Switzerland). The plants produce products for sale in CEEU, but also deliver products to all other areas.

Business development

Revenues in the CEEU area segment rose to € 139.0 million in the period under review after € 131.0 million in the same period of the previous year. EBIT fell to € 1.4 million (1–6/2019: € 4.0 million) due to a comparably high burden from the COVID-19 pandemic and an unfavorable product mix.

NISA area segment

The NISA area comprises Western European countries from the North Cape to Gibraltar and almost all African and South American nations.

The NISA area includes the Group companies Rosenbauer Española in Madrid (Spain), Rosenbauer South Africa in Johannesburg (South Africa), Rosenbauer France in Meyzieu (France) and Rosenbauer UK in Meltham (UK).

Business development

In the reporting period, revenues of the NISA area segment were significantly higher than that of the comparative period of the previous year at € 53.5 million (1–6/2019: € 38.4 million). EBIT was still negative at € -0.6 million (1–6/2019: € -0.5 million) in the period under review.

MENA area segment

The MENA area comprises the countries in the Middle East and North Africa.

The sales area includes Rosenbauer Saudi Arabia in Riyadh (Saudi Arabia) including the King Abdullah Economic City (KAEC) production site and a number of service locations.

Business development

The MENA area segment posted higher revenues year-on-year at € 38.7 million (1–6/2019: € 29.8 million). EBIT was positive at € 0.9 million in the reporting period (1–6/2019: € -2.3 million).

APAC area segment

The APAC area comprises the entire Asia-Pacific region, Russia, Turkey, India and China.

The APAC area includes the Group companies S.K. Rosenbauer in Singapore (Singapore) and Rosenbauer Australia, Brisbane (Australia). There are further sales and service locations in China, Brunei, the Philippines and Hong Kong.

Business development

Revenues in the APAC area segment increased to € 60.4 million in the reporting period (1–6/2019: € 56.0 million). Due to the COVID-19 pandemic and an unfavorable product mix, EBIT was still negative at € -1.9 million (1–6/2019: € 1.3 million).

NOMA area segment

The NOMA area comprises primarily the US, Canada, and countries in Central America and the Caribbean.

In addition to the sales company Rosenbauer America, based in Lyons, the area also includes the production companies Rosenbauer Minnesota and Rosenbauer Motors in Wyoming (Minnesota), Rosenbauer South Dakota in Lyons (South Dakota) and Rosenbauer Aerials in Fremont (Nebraska).

Business development

Revenues in the NOMA area segment increased to € 153.5 million in the first six months of this year (1–6/2019: € 128.7 million). At the same time, EBIT was at € 6.9 million, therefore up on the previous year (1–6/2019: € 4.6 million).

Stationary Fire Protection (SFP) segment

Stationary Fire Protection handles the planning, installation and maintenance of stationary firefighting and alarm systems. The segment is being cultivated by the two Group companies Rosenbauer Brandschutz in Leonding and Rosenbauer Brandschutz Deutschland in Mogendorf (Germany). Rosenbauer is therefore a full-service supplier in this field as well.

Business development

Revenues in the SFP segment rose to € 12.8 million in the first six months of 2020 after € 10.7 million in the same period of the previous year. Segment EBIT was negative at € -1.2 million in the reporting period (1–6/2019: € -1.8 million).

FINANCIAL AND NET ASSETS POSITION

For reasons specific to the industry, the structure of the Rosenbauer Group's statement of financial position as of the end of the first half-year is characterized by high trade working capital. Total assets increased to € 989.5 million by period comparison (June 30, 2019: € 900.8 million), which can be attributed in particular to the higher current assets compared with the balance sheet date of December 31, 2019.

Compared to the previous year, inventories and current receivables show the major changes. Inventories increased to € 478.3 million (June 30, 2019: € 466.1 million). The current receivables were above the previous year's level at € 252.0 million (June 30, 2019: € 207.3 million).

As a result of efforts to reduce trade working capital, the Group's net debt (the net amount of interest-bearing liabilities less cash and cash equivalents) remained at the level of the corresponding period of the previous year at € 393.4 million (June 30, 2019: € 396.8 million) despite higher revenues.

The cash flow from operating activities improved significantly compared to the previous year and is € –34.0 million (1–6/2019: € –115.7 million). A further improvement in the cash flow from operating activities is expected by the end of the year.

INVESTMENTS

Capital expenditure amounted to € 7 million in the reporting period (1–6/2019: € 6.8 million). The completion of ongoing investment projects is particularly important. These include, for example, the installation of a photovoltaic system, the preparations for the production of the new, hybrid RT (Revolutionary Technology; previously Concept Fire Truck) vehicle series at the site of Plant I and the procurement of SAP ERP licenses.

OUTLOOK

The economic impact of the COVID-19 pandemic is unprecedented, and the economy will recover only slowly from its effects. However, according to the International Monetary Fund (IMF), the countermeasures taken by politicians have helped to limit the damage worldwide and improve sentiment on the capital markets. The stable oil price has also contributed to this recently. According to experts, global economic output could grow by 5.4 % next year, returning to the level of 2019.

As shown from past experience, the firefighting industry follows the general economy at a delay of several months. Although demand slowed down in the second quarter, the sector should be able to assert itself in the current economic downturn thanks to full order books. Against this backdrop, the mangement of the Rosenbauer Group expects a slight increase in revenues for 2020 compared to the previous year. The EBIT margin is expected to range between 4 % and 5 %.

SIGNIFICANT EVENTS AFTER THE END OF THE REPORTING PERIOD

By the time of the preparation of this report, there have been no events of particular significance to the Group that would have altered its net assets, financial position, or result of operations since the end of the reporting period.

Interim consolidated financial statements

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

	ASSETS (in € thousand)	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2020
A.	Non-current assets
	I. Property, plant and equipment	147,040.6	147,564.3	145,204.5
	II. Intangible assets	25,537.4	32,190.3	35,418.2
	III. Right-of-use assets	24,698.4	37,744.7	32,317.4
	IV. Securities	729.7	818.2	733.1
	V. Investments in companies accounted for using the equity method	5,634.1	6,433.4	5,815.9
	VI. Deferred tax assets	7,467.8	5,777.2	6,635.1
		211,108.0	230,528.1	226,124.2
B.	Current assets
	I. Inventories	466,110.0	475,532.3	478,300.0
	II. Receivables and other assets	207,289.0	220,588.5	252,041.8
	III. Income-tax receivables	69.8	0.0	0.0
	IV. Cash and cash equivalents	16,241.0	50,848.6	32,990.6
		689,709.8	746,969.4	763,332.4

Total ASSETS	900,817.8	977,497.5	989,456.6

EQUITY AND LIABILITIES (in € thousand)	Jun. 30, 2019	Dec. 31, 2019	Jun. 30, 2020
A. Equity
I. Share capital	13,600.0	13,600.0	13,600.0
II. Capital reserves	23,703.4	23,703.4	23,703.4
III. Other reserves	-8,529.2	-12,128.1	-9,522.7
IV. Accumulated results	168,527.5	195,744.6	186,775.4
Equity attributable to shareholders of the parent company	197,301.7	220,919.9	214,556.1
V. Non-controlling interests	28,645.4	32,508.8	34,334.5
Total equity	225,947.1	253,428.7	248,890.6
B. Non-current liabilities
I. Non-current interest-bearing liabilities	289,322.6	216,071.2	204,028.6
II. Non-current leasliability	20,661.3	33,641.5	28,003.7
III. Other non-current liabilities	1,489.5	2,886.1	2,511.7
IV. Non-current provisions	32,389.6	37,341.7	37,308.1
V. Deferred tax liabilities	1,493.2	1,549.6	1,991.2
	345,356.2	291,490.1	273,843.3
C. Current liabilities
I. Current interest-bearing liabilities	99,640.5	140,060.0	190,621.8
II. Current leasliability	4,149.5	4,344.7	4,501.4
III. Contract liabilities	97,007.4	131,864.2	143,285.6
IV. Trade payables	38,724.3	68,852.0	41,667.9
V. Other current liabilities	68,476.8	71,232.3	70,717.6
VI. Provisions for taxes	6,567.1	631.2	837.1
VII. Other provisions	14,948.9	15,594.3	15,091.3
	329,514.5	432,578.7	466,722.7
Total EQUITY AND LIABILITIES	900,817.8	977,497.5	989,456.6

CONSOLIDATED INCOME STATEMENT

in € thousand	1–6/2019	1–6/2020	4–6/2019	4–6/2020
1. Revenues	394,613.9	458,020.7	218,826.6	225,169.7
2. Other income	1,252.2	4,980.4	71.0	3,899.4
3. Change in inventory of finished goods and work in progress	58,956.1	11,284.4	21,157.2	-86.5
4. Capitalized development costs	1,742.0	3,075.2	749.7	2,769.8
5. Costs of goods sold	-270,050.6	-281,003.0	-145,554.3	-137,184.7
6. Staff costs	-117,904.2	-127,138.0	-59,236.7	-63,870.7
7. Depreciation and amortization expense on property, plant and equipment and intangible assets	-11,390.8	-12,276.9	-6,800.2	-6,280.2
9. Other expenses	-51,975.0	-51,514.9	-26,046.8	-23,270.8
10. Operating result (EBIT) before share in results of companies accounted for using the equity method	5,243.6	5,427.9	3,166.5	1,146.0
11. Financing expenses	-3,077.3	-3,006.9	-1,497.4	-1,263.9
12. Financing income	183.3	161.6	98.2	130.0
13. Share in results of companies accounted for using the equity method	-358.9	-48.0	-504.6	-186.5
14. Profit before income tax (EBT)	1,990.7	2,534.6	1,262.7	-174.4
15. Income tax	-391.5	-357.0	-245.9	184.8
16. Net profit for the period	1,599.2	2,177.6	1,016.8	10.4
thereof
Non-controlling interests	4,528.4	5,706.8	2,192.4	2,900.7
Shareholders of parent company	-2,929.2	-3,529.2	-1,175.6	-2,890.3
Average number of shares outstanding	6,800,000	6,800,000	6,800,000	6,800,000
Basic earnings per share	-0.43	-0.52	-0.17	-0.43
Diluted earnings per share	-0.43	-0.52	-0.17	-0.43

PRESENTATION OF THE CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

in € thousand	1–6/2019	1–6/2020	4–6/2019	4–6/2020
Net profit for the period	1,599.2	2,177.6	1,016.8	10.4
Restatements as required by IAS 19	-33.9	796.4	-17.0	-876.8
thereof deferred taxes	8.5	0.0	4.3	0.0
Total changes in value recognized in equity that cannot be subsequently reclassified into profit or loss	-25.4	796.4	-12.7	-876.8
Gains/losses from foreign currency translation	444.4	-329.9	-822.9	-1,244.4
Gains/losses from foreign currency translation of companies accounted for using the equity method	434.1	-868.4	44.2	0.0
Gains/losses from cash flow hedge
Change in unrealized gains/losses	-1,999.2	1,817.7	-131.1	2,154.0
thereof deferred tax	499.8	-454.4	392.0	-538.5
Realized gains/losses	1,247.2	2,363.1	816.1	1,047.8
thereof deferred tax	-311.8	-590.8	-204.0	-262.0
Total changes in value recognized in equity subsequently reclassified into profit or loss when certain conditions are met	314.5	1,937.3	94.3	1,156.9
Other comprehensive income	289.1	2,733.7	81.6	280.1
Total comprehensive income after income taxes	1,888.3	4,911.3	1,098.4	290.5
thereof:
Non-controlling interests	4,648.1	5,835.1	1,823.8	2,284.2
Shareholders of parent company	-2,759.8	-923.8	-725.4	-1,993.7

CHANGES IN CONSOLIDATED EQUITY

				Attributable to shareholders in the parent company
				Other reserves
in € thousand	Share capital	Capital reserve	Currency translation	Restatement as required by IAS 19	Revaluation reserve
As of Jan 1, 2020	13,600.0	23,703.4	1,385.5	-9,298.5	0.0
Other comprehensive income	0.0	0.0	-1,326.6	796.4	0.0
Net profit for the period	0.0	0.0	0.0	0.0	0.0
Total comprehensive income	0.0	0.0	-1,326.6	796.4	0.0
Dividend	0.0	0.0	0.0	0.0	0.0
As of Jun 30, 2020	13,600.0	23,703.4	58.9	-8,502.1	0.0
As of Jan 1, 2019	13,600.0	23,703.4	187.8	-6,199.6	0.0
Other comprehensive income	0.0	0.0	758.8	-25.4	0.0
Net profit for the period	0.0	0.0	0.0	0.0	0.0
Total comprehensive income	0.0	0.0	758.8	-25.4	0.0
Dividend	0.0	0.0	0.0	0.0	0.0
As of Jun 30, 2019	13,600.0	23,703.4	946.6	-6,225.0	0.0

Attributable to shareholders in the parent company

Other reserves

-4,215.1 195,744.6 220,919.9 32,508.8 253,428.7 3,135.6 0.0 2,605.4 128.3 2,733.7 0.0 -3,529.2 -3,529.2 5,706.8 2,177.6 3,135.6 -3,529.2 -923.8 5,835.1 4,911.3 0.0 -5,440.0 -5,440.0 -4,009.4 -9,449.4 -1,079.5 186,775.4 214,556.1 34,334.5 248,890.6 -2,686.8 179,956.7 208,561.5 28,500.0 237,061.5 -564.0 0.0 169.4 119.7 289.1 0.0 -2,929.2 -2,929.2 4,528.4 1,599.2 -564.0 -2,929.2 -2,759.8 4,648.1 1,888.3 0.0 -8,500.0 -8,500.0 -4,502.7 -13,002.7 -3,250.8 168,527.5 197,301.7 28,645.4 225,947.1	Group equity	Non-controlling interests	Subtotal	Accumulated results	Hedging reserve

CONSOLIDATED STATEMENT OF CASH FLOWS

	in € thousand	1–6/2019	1–6/2020
	Profit before income tax	1,990.7	2,534.6
+	Depreciation	11,390.8	12,276.9
±	Gains/losses of companies accounted for using the equity method	358.9	48.0
	Reclassification of leasing payments to financing activities	0.0	-2,276.5
+	Interest expenses	2,653.7	2,883.8
-	Interest and securities income	-183.3	-161.6
±	Unrealized gains/losses from currency translation	561.3	-951.6
±	Change in inventories	-97,970.9	-2,767.7
±	Change in receivables and other assets	-5,049.4	-30,275.0
±	Change in trade payables and contract liabilities	-15,004.6	-15,468.1
±	Change in other liabilities	-2,953.6	3,508.9
±	Change in provisions (excluding income tax deferrals)	-7,104.7	259.8
	Cash earnings	-111,311.1	-30,388.5
-	Interest paid	-2,111.8	-2,826.1
+	Interest received and income of securities	179.6	158.4
-	Income tax paid	-2,414.3	-915.9
	Net cash flow from operating activities	-115,657.6	-33,972.1
-	Proceeds/Payments from the sale/purchase of property, plant and equipment,
	intangible assets and securities	-7,085.2	-7,262.6
-	Income from capitalized development costs	-1,742.0	-3,075.2
	Net cash flow from investing activities	-8,827.2	-10,337.8
-	Payments from the acquisition of non-controlling interests	-3,099.0	-94.7
-	Dividends paid	-8,500.0	-5,440.0
-	Dividends paid to non-controlling interests	-4,502.7	-4,009.4
+	Proceeds from interest-bearing liabilities	214,088.6	136,561.2
-	Repayment of interest-bearing liabilities	-82,696.0	-98,042.0
-	Repayment of leasing liabilities	0.0	-2,276.5
	Net cash flow from financing liabilities	115,290.9	26,698.6
	Net change in cash and cash equivalents	-9,193.9	-17,611.3
+	Cash and cash equivalents at the beginning of the period	25,348.9	50,848.6
±	Adjustment from currency translation	86.0	-246.7
	Cash and cash equivalents at the end of the period	16,241.0	32,990.6

SEGMENT REPORTING

Business Segments in € thousand	1–6/2019	1–6/2020
External revenues
Area CEEU	130,986.5	139,034.7
Area NISA	38,375.6	53,530.5
Area MENA	29,823.5	38,676.5
Area APAC	56,034.9	60,397.2
Area NOMA	128,699.4	153,540.8
SFP 1)	10,694.0	12,841.0
Group	394,613.9	458,020.7
Operating result (EBIT)
Area CEEU	3,980.9	1,374.8
Area NISA	-532.6	-586.9
Area MENA	-2,312.0	885.2
Area APAC	1,302.2	-1,936.9
Area NOMA	4,604.1	6,895.7
SFP 1)	-1,799.0	-1,204.0
EBIT before share of results of companies accounted for using the equity method	5,243.6	5,427.9
Finance expenses	-3,077.3	-3,006.9
Financial income	183.3	161.6
Share in results of companies accounted for using the equity method	-358.9	-48.0
Profit before income tax (EBT)	1,990.7	2,534.6
Business Units in € thousand	1–6/2019	1–6/2020
External revenues
Vehicles	301,525.8	361,394.9
Fire & Safety Equipment	39,416.5	34,875.0
Stationary Fire Protection (SFP)	10,930.0	12,841.0
Customer Service	28,536.0	30,792.5
Others	14,205.6	18,117.3
Group	394,613.9	458,020.7

1 Stationary Fire Protection

Explanatory notes

1. INFORMATION ON THE COMPANY AND THE BASIS OF PREPARATION

The Rosenbauer Group is an international group of companies whose parent company is Rosenbauer International AG, Austria. Its main focus is on the production of firefighting vehicles, the development and manufacture of firefighting systems, equipping vehicles and their crews and preventive firefighting. The Group's head office is located at Paschinger Strasse 90, 4060 Leonding, Austria.

With the exception of standards that have come into effect in the interim, the interim consolidated financial statements have been prepared on the basis of the same accounting policies as those applied as of December 31, 2019.

The condensed interim consolidated financial statements therefore do not contain all the information or explanatory notes stipulated by IFRS for consolidated financial statements as of the end of the financial year, and should instead be read in conjunction with the IFRS consolidated financial statements published by the company for financial year 2019.

The interim consolidated financial statements have been prepared in thousands (€ –thousand) and, unless expressly stated, this also applies to the figures shown in the notes.

2. COMPANIES INCLUDED IN CONSOLIDATION

In accordance with IFRS 10, the consolidated financial statements as of June 30, 2020 include three Austrian and 25 foreign subsidiaries, all of which are legally and actually controlled by Rosenbauer International AG and therefore included in consolidation. The shares in the associate in Russia (PA "Fire-fighting special technics," Rosenbauer share: 49%) and the shares in the joint venture in Spain (Rosenbauer Ciansa S.L., Rosenbauer share: 50%) – established with the co-owner and Managing Director of Rosenbauer Española – are accounted for using the equity method.

3. SEASONAL FLUCTUATIONS

Owing to the high degree of dependency on public sector clients, the usual pattern in the fire equipment sector is for a very high proportion of its deliveries to be made in the second half of the year, especially in the final quarter. There can therefore be considerable differences – in terms of revenues and earnings – between the respective interim reporting periods. Further information on developments in the period under review can be found in the interim Group management report.

4. SIGNIFICANT EFFECT OF ESTIMATES

The preparation of the interim consolidated financial statements requires the Executive Board to make assumptions and estimates that affect the amounts and reporting of assets, liabilities, income and expenses in the period under review. The actual amounts incurred can deviate from these estimates. Deviations from estimates had no significant effect on the financial statements in the reporting period.

5. RELATED PARTY DISCLOSURES

There has been no change in the composition of related parties since December 31, 2019. The following transactions were conducted with related parties in the period under review:

	Joint ventures		Management		Associated companies
in € thousand	1–6/2019	1–6/2020	1–6/2019	1–6/2020	1–6/2019	1–6/2020
Sale of goods	0.0	0.0	0.0	0.0	78.4	52.7
Purchase of goods	426.8	426.8	0.0	0.0	0.0	0.0
Receivables	0.0	208.2	0.0	0.0	267.7	14.3
Liabilities	347.8	819.9	0.0	0.0	0.0	0.0
Receivable loans	0.0	580.0	0.0	0.0	0.0	0.0
Liabilities from the acquisition of minority
interest	0.0	0.0	0.0	981.3	0.0	0.0
Land rent	0.0	0.0	180.6	506.9	0.0	0.0

6. DIVIDENDS

At the Annual General Meeting held on May 11, 2020, the distribution of the dividend for 2019 in the amount of € 0.8 per share (for 2018: € 1.25 per share) was resolved. The dividend was paid out on May 20, 2020.

7. INCOME TAX

Income tax for the period under review has been recognized on the basis of the best possible estimate of the weighted average annual income tax rate expected for the financial year as a whole. Tax on income for the first half of 2020 breaks down into € 1,716.7 thousand (1–6/2019: € 1,007.4 thousand) in current income tax expenses and € -1,359.7 thousand (1–6/2019: € -615.9 thousand) in changes in deferred income tax.

8. SEGMENT REPORTING

In accordance with IFRS 15, segments must be defined and segment information disclosed on the basis of internal controlling and reporting. This results in segment reporting presented in line with the management approach of internal reporting.

The Group is managed by the chief operating decision makers on the basis of sales markets. The development of the market segments is particularly significant in internal reporting. Segmentation is based on the division of the sales regions (areas) defined by the chief operating decision makers. In addition to the segments managed by sales markets (areas), the SFP (Stationary Fire Production) segment is shown as a further segment in internal reporting.

The following reportable segments have been defined in line with the internal management information system: The CEEU area (Central and Eastern Europe), the NISA area (Northern Europe, Iberia, South America, Africa), the MENA area (Middle East, North Africa), the APAC area (Asia-Pacific), the NOMA area (North and Middle America) and SFP (Stationary Fire Production).

The chief operating decision makers monitor the EBIT of the areas separately in order to make decisions on the allocation of resources and to determine the units' earnings power. Segment performance is assessed on the basis of EBIT using the same definition as in the consolidated financial statements. However, income taxes are managed on a uniform Group basis and are not allocated to the individual segments. Transfer prices between the segments are at arm's length. A condensed presentation of the segments in accordance with IAS 34 and further information on their composition and development can be found in the interim Group management report.

9. EVENTS AFTER THE END OF THE REPORTING PERIOD

No significant events occurred by the time of the preparation of the half year financial statements.

10. CONTINGENT CLAIMS AND CONTINGENT LIABILITIES

Rosenbauer International AG has not issued any liability statements for the benefit of non-Group companies. Also, as was the case at the end of the year, there are no contingent assets or liabilities from which material receivables or liabilities will result.

11. DISCLOSURES ON FINANCIAL INSTRUMENTS

Interest rate and FX risks are hedged using derivative financial instruments such as FX forwards. These are initially recognized at fair value when the agreement is concluded and subsequently remeasured at fair value. While some of these transactions are hedges from a business perspective, they do not meet the hedge accounting requirements of IFRS 9. The changes in the fair value of these financial instruments are recognized immediately in profit or loss. As of June 30, 2020 the fair value of hedges recognized in the income statement was € 464.8 thousand (June 30, 2019: € -518.8 thousand), and that of the hedges recognized in other comprehensive income was € -642.0 thousand (June 30, 2019: € -4,334.4 thousand).

The financial investments available for sale shown in the following table as level 1 include listed equities and units in funds. The fair value of currency forwards and interest rate swaps shown as level 2 is determined by reference to bank valuations based on recognized mathematical measurement models (discounted cash flow method on the basis of current interest and currency future yields based on interbank mid-rates as of the end of the reporting period).

In 2020 – as in the previous year – there were no reclassifications between level 1 and level 2 or vice versa. There was no change in the measurement method.

	Level 1			Level 2
in € thousand	30.06.2019	30.06.2020	30.06.2019	30.06.2020
Derivative financial instruments without hedge
Positive fair value			32.3	632.1
Negative fair value			551.1	167.3
Derivative financial instruments with hedge
Positive fair value			71.5	1,366.2
Negative fair value			4,405.9	2,008.2
Securities mandatorily measured at fair value through profit and loss
Positive fair value	729.7	733.1
Negative fair value

The carrying amounts of cash and cash equivalents, trade receivables, trade payables, other financial assets and liabilities and current interest-bearing loan liabilities correspond to their fair values, which is why no further information of classification in a fair value hierarchy is included.

12. OTHER DISCLOSURES

A civil suit was brought against Rosenbauer International AG. An appropriate provision was recognized as of December 31, 2017.

Rosenbauer International AG was sued in the second half of 2017 in relation to investigations pertaining to the handling of an order placed by the Croatian Ministry of the Interior in 2003. No accounting measures were taken on the basis of the current assessment.

Statement of all legal representatives

We confirm to the best of our knowledge that the condensed interim financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the group as required by the applicable accounting standards and that the interim group management report gives a true and fair view of important events that have occurred during the first six months of the financial year and their impact on the condensed interim financial statements, and of the principal risks and uncertainties for the remaining six months of the financial year and of the major related party transactions to be disclosed.

In the case of this report it was decided to dispense with an audit or review by an external auditor.

Leonding, August 14, 2020

Fire & Safety Equipment, Internal Audit, IT Product Management

Dieter Siegel Andreas Zeller Daniel Tomaschko Sebastian Wolf CEO CSO CTO CFO Global central functions: Global central functions: Global central functions: Global central functions: Corporate Development, Area Management Stationary Fire Protection, Group Controlling, Strategy, NISA and NOMA, Central Technics, Legal, Compliance &

Human Resources, APAC, CEEU, MENA, Supply Chain Management, Group Accounting and Tax, Innovation & Marketing, Sales Administration, CoC Operations Insurance, Export Finance, Group Communication, Customer Service Treasury, Investor Relations,

Contact and financial calendar 2020

INVESTOR RELATIONS

Tiemon Kiesenhofer Phone: +43 732 6794-568 E-mail: ir@rosenbauer.com www.rosenbauer.com/group

CAPITAL MARKET CALENDAR

November 17, 2020 Interim Statement 3/2020

ROSENBAUER SHARE DETAILS

ISIN	AT0000922554
Reuters	RBAV.VI
Bloomberg	ROS AV
ATX prime weighting	0.28 %

Share class No-par-value shares, bearer or registered

Published by

Rosenbauer International AG, Paschinger Straße 90, 4060 Leonding, Austria

Rosenbauer International AG does not guarantee in any way that the forward-looking assumptions and estimates contained in this Interim Statement will prove correct, nor does it accept any liability for loss or damages that may result from any use of or reliance on this report. Minimal arithmetical differences may arise from the application of commercial rounding to individual items and percentages in this report. The English translation of the Rosenbauer Interim Statement is for convenience. Only the German text is binding.