Quarterly Report • Aug 10, 2018
Quarterly Report
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Quarterly Report 2/2018
Q2
| Key financial figures | 1–6/2016 | 1–6/2017 | 1–6/20181 | |
|---|---|---|---|---|
| Revenues | € million | 383.4 | 393.6 | 352.7 |
| EBITDA | € million | 26.0 | 13.3 | 19.4 |
| EBIT | € million | 18.8 | 2.7 | 10.1 |
| EBIT margin | 4.9% | 0.7% | 2.9% | |
| EBT | € million | 17.1 | 3.7 | 6.1 |
| Net profit for the period | € million | 13.4 | 3.4 | 5.3 |
| Cash flow from operating activities | € million | (31.2) | (51.7) | (39.4) |
| Investments2 | € million | (11.0) | (7.7) | (8.2) |
| Total assets | € million | 695.0 | 685.4 | 696.2 |
| Equity in % of total assets | 32.1% | 33.6% | 31.7% | |
| Capital employed (average) | € million | 502.4 | 497.6 | 493.2 |
| Return on capital employed | 3.8% | 0.5% | 2.0% | |
| Return on equity | 7.6% | 1.6% | 2.7% | |
| Net debt | € million | 261.6 | 247.9 | 245.5 |
| Working capital | € million | 164.9 | 196.7 | 176.0 |
| Gearing ratio | 117.1% | 107.6% | 111.2% | |
| Key performance figures | 1–6/2016 | 1–6/2017 | 1–6/2018 |
| 1–6/2016 | 1–6/2017 | 1–6/2018 | |
|---|---|---|---|
| € million | 812.9 | 812.0 | 1,030.5 |
| € million | 376.5 | 458.3 | 525.4 |
| 3,261 | 3,315 | 3,471 | |
| Key stock exchange figures | 1–6/2016 | 1–6/2017 | 1–6/2018 | |
|---|---|---|---|---|
| Closing share price as of Jun 30 | € | 52.8 | 57.7 | 47.0 |
| Number of shares | million units | 6.8 | 6.8 | 6.8 |
| Market capitalization | € million | 359.0 | 392.4 | 319.6 |
| Earnings per share | € | 1.2 | (0.3) | 0.1 |
1 Since January 1, 2018, Rosenbauer has been applying the new standards IFRS 9 and IFRS 15 for the first time. For the transition to the new provisions, the modified, retrospective approach was selected in each case where the previous year's values were not adjusted. More details can be found in the Explanatory Notes.
2 Investments relate to rights and property, plant and equipment
As expected, the global economy grew strongly in the first six months of 2018. However, at the same time, the risks have mainly increased as a result of the threat of a trade war and a possible tariff spiral. Despite the fact that the International Monetary Fund has recently confirmed its growth forecast for the global economy in 2018 and 2019, its experts assume that some important industrialised countries have already reached the cyclical peak and that further growth will be more unevenly distributed.
The global firefighting industry has benefited from the favorable economic sentiment in recent months and has thus enjoyed a stable performance. Demand is determined largely by countries with continuous procurement systems and those with elevated security awareness following natural or terrorist disasters.
On the North American market, the procurement volume could rise again to well above the long-term average of around 4,000 vehicles. A requirement for this is that the US tax reform passed at the beginning of the year actually stimulates investment in the country and, in doing so, the regional firefighting industry.
The European firefighting market is also expected to continue growing this year, with demand rising in countries such as Austria, France and the United Kingdom.
Demand for firefighting technology rallied again somewhat in the countries of the Middle East, which is the reason why a slight recovery is predicted for the year as a whole.
The Rosenbauer Group generated group revenues of € 352.7 million in the first half of 2018 after € 393.6 million in the same period of the previous year. This decline can be attributed to using IFRS 15 for the first time, which was changed in the current financial year from period-of-time related revenue recognition ("Percentage of Completion" method; PoC) to point-of-time related revenue recognition ("Completed
Contract" method; CC). The change in systems means that the PoC proceeds of € 50.3 million are no longer taken into account here.
Deliveries to several Asian and Central and Eastern European countries declined between January and June of this year, while the Near and Middle East as well as stationary fire protection reported significantly higher volumes.
In the first half of the year, EBIT was clearly above the previous year's level at € 10.1 million (1–6/2017: € 2.7 million). This was mainly due to an increase in production output with a high inventory of finished and unfinished products and, consequently, a very good coverage of fixed costs. Depreciation and other expenses also declined significantly compared to the same period of the previous year.
The consolidated revenues are currently divided across the sales regions as follows: 32% in the CEEU area, 12% in the NISA area, 12% in the MENA area, 13% in the APAC area, 28% in the NOMA area, and 3% in the Stationary Fire Protection segment.
The financial result shows a loss of € –3.6 million (1–6/2017: € 0.7 million), which, in addition to the interest expenses incurred as a result of borrowing, also includes book value losses related to the effective date from hedge transactions to the US dollar. Group EBT in the reporting period amounted to € 6.1 million (1–6/2017: € 3.7 million).
The conversion to IFRS 15 will reduce EBIT and EBT by approximately € 7.3 million from PoC partial profits.
The Rosenbauer Group recorded very satisfactory order numbers in the first six months and achieved order intake of € 525.4 million (1–6/2017: € 458.3 million). In four out of six global sales regions, incoming orders were above the previous year's level, with the MENA area recording a particularly high increase against the backdrop of a higher oil price. However, new business in the CEEU and NISA areas lagged behind
the same period of the previous year. The order backlog as of June 30, 2018 amounted to € 1,030.5 million and was significantly higher than the previous year's value (June 30, 2017: € 882.6 million). With this order backlog, the Rosenbauer Group has utilised the capacity of the production facilities to a satisfactory level and given a good insight into the next six months.
In line with the organisational 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), 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.
The CEEU area comprises most countries of Central- and Eastern Europe including the Baltics. The CEEU area includes the production locations in Leonding (plants I and II) and Neidling in Austria, Karlsruhe and Luckenwalde in Germany, Radgona in Slovenia, and Rosenbauer Rovereto in Italy. The plants produce products for sale in CEEU, but also deliver products to all other areas. There are also the sales and service locations Graz and Telfs in Austria, Oberglatt in Switzerland, Viersen in Germany and Warsaw in Poland. Also included in CEEU is the newly founded development company Rosenbauer E-Technology Development GmbH in Leonding.
Revenues in the CEEU area segment dropped to € 111.2 million in the period under review after € 135.2 million in the same period of the previous year. Despite utilising the capacity to a lesser extent, EBIT improved to € 5.5 million (1–6/2017: € –1.3 million) thanks to a favourable product mix.
The NISA area comprises almost all African, South American, and European countries from the North Cape to Gibraltar. The sales region includes the Linares production location and the sales and service locations in Madrid in Spain, Holmfirth in UK, Chambéry in France, and Johannesburg in South Africa. The plant in Linares supplies its products mainly to the markets of the NISA area and, at the same time, is the center of competence for forest fire and towing vehicles, which is also delivering products to other areas.
The NISA area sector recorded lower sales in the reporting period than in the same period of the previous year at € 40.8 million (1–6/2017: € 43.0 million). EBIT remained negative at € –1.1 million (1–6/2017: € –0.6 million) due to lower capacity utilisation and the lower coverage of fixed costs associated with this in the reporting period.
The MENA area comprises the countries in the Middle East and North Africa. The sales region includes the King Abdullah Economic City production site in Saudi Arabia and a number of service locations in the region. The vehicles for the MENA area are mostly manufactured in the plants of the CEEU, NISA, and NOMA areas. Direct contact with the customers through an extensive service network in the region is a key success factor.
In the reporting period, the revenues of the MENA area segment increased significantly to € 43.5 million, therefore making a significant year-on-year improvement (1–6/2017: € 27.5 million). The main reasons for this were the recovery of the oil price and Rosenbauer's reinforced activities in the region. EBIT rose to € 2.4 million (1–6/2017: € –2.8 million) as a result of the increase in revenues.
The APAC area comprises the entire Asia-Pacific region, several countries of the Middle East, China, India, and Russia. APAC's production facilities are located in Singapore and Moscow and it has its own sales and service locations in China, Brunei, the Philippines, and Australia.
Revenues in the APAC area segment fell to € 48.4 million in the period under review (1–6/2017: € 76.7 million). Due to a lower coverage of fixed costes, EBIT was negative at € –0.2 million compared to the previous year (1–6/2017: € 3.2 million).
The NOMA area comprises primarily the US, Canada, and countries in Central America, and the Caribbean. The area's production facilities are located in Lyons (South Dakota), Wyoming (Minnesota), and Fremont (Nebraska). The fire service vehicles are manufactured to US standards and most of them are delivered to the NOMA sales area, but also to customers in the MENA, NISA, and APAC areas.
Revenues in the NOMA area segment declined to € 97.5 million in the first six months of this year (1–6/2017: € 101.6 million). EBIT was at € 4.6 million and therefore remained below the previous year's level (1–6/2017: € 5.7 million).
Stationary Fire Protection handles the planning, installation, and maintenance of stationary firefighting and alarm systems. Rosenbauer is therefore a full-service supplier in this field as well. This segment comprises the Group companies Rosenbauer Brandschutz in Leonding and G&S Brandschutztechnik in Mogendorf (Germany).
Revenues in the SFP segment climbed to € 11.3 million in the first six months of 2018 after € 9.6 million in the same period of the previous year. Segment EBIT was negative in the reporting period at € –1.1 million (1–6/2017: € –1.4 million) due to order lead times lasting several months.
For reasons specific to the industry, the structure of the state ments of financial position during the year is characterized by high working capital. This is due to the turnaround times of several months for vehicles in production. The high intra-year level of total assets of € 696.2 million (June 30, 2017: € 678.5 million) can be attributed in particular to the higher current assets compared with the balance sheet date of December 31, 2017.
With the first application of IFRS 15, Rosenbauer switched from recognition of revenues over time to recognition at a specific point in time in the current financial year. In other words, sales are no longer to be recorded according to the completion status of the construction contracts, but instead only after the product has been delivered to the customer. In line with this improvement, inventories rose to € 328.6 million (June 30, 2017: € 224.7 million), while construction contracts were omitted entirely (June 30, 2017: € 98.5 million). The conversion of revenue recognition to IFRS 15 will result in a later recognition of revenue with this financial year.
Current receivables were below the previous year's level at € 160.2 million (June 30, 2017: € 165.2 million). The Group's net debt (the net amount of interest-bearing liabilities less cash and cash equivalents and securities) decreased year-onyear to € 245.5 million (June 30, 2017: € 247.9 million).
Owing to the high level of working capital – due to high customer receivables – the intra-year cash flow from operating activities was still negative at € –39.4 million (1–6/2017: € –51.7 million). An improvement in the cash flow from operating activities is expected by the end of the year.
Capital expenditure amounted to € 8.2 million in the reporting period (1–6/2017: € 7.7 million). The completion of ongoing investment projects is particularly important. Above all, this includes for example the modernisation of Plant I in Leonding, which is undergoing reorganisation with a view to increasing efficiency and profitability and the robotization of the production line in Karlsruhe. In addition, Minnesota exercised the option to purchase a previously leased facility that produces municipal vehicles for the US market.
The International Monetary Fund recently confirmed its growth forecast for the global economy with 3.9% in 2018 and 2019. However, the escalating trade dispute and political uncertainties have dampened the economic forecast. Contrary to the two largest economic powers, the USA and China, growth has already slowed in major economies such as the UK (likely due to concerns over Brexit), Japan and in some EU member states.
As shown from past experience, the firefighting industry follows the general economy at a delay of several months and should continue to develop at a stable rate. Rosenbauer closely monitors developments on the different fire equipment markets in order to exploit sales opportunities early on. Sales activities are then stepped up depending on in which countries or regions greater procurement volumes have been identified. It will continue to focus on efficiency enhancement and cost reduction so that the intended business development has a solid financial basis. Despite the traditionally low capacity utilisation at the beginning of the year and the sustained margin pressure in the developed market, Rosenbauer's management is aiming to increase revenues and earnings to above at the previous year's level.
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.
Rosenbauer is exposed to various opportunities and risks in the course of its global business activities. The ongoing identification, appraisal, and controlling of these risks are an integral part of the management, planning, and controlling process. The risk management system builds on the organisational, reporting, and leadership structures in place within the Group and supplements these with specific elements needed for proper risk assessment. A detailed presentation of the opportunities and risks faced by the Group can be found in the 2017 annual report.
Risks to the fire safety business arising from changes in overall political or legal conditions are very difficult to protect against. However, given that most customers operate in the public sector, it is rare that they cancel orders. Political crises and embargoes can temporarily limit access to certain markets.
Manufacturing activities necessitate a thorough examination of risks along the entire value chain. In view of today's evershorter innovation cycles, research and development work is becoming increasingly significant. The production risks that occur are monitored on an ongoing basis using a series of key performance indicators (productivity, assembly and throughput times, number of production units, quality, costs, etc.).
In addition to local performance indicators, the central controlling element in vehicle manufacturing operations is "concurrent costing", whereby variance analysis is used to monitor the production costs of every single order. To even out changes in capacity utilization at individual locations, Rosenbauer's manufacturing processes operate on a Group-wide basis and the company also outsources construction contracts to external partners. In the event of a severe downtrend on the market, this keeps the risk of insufficient capacity utilisation within manageable bounds.
Rosenbauer International AG and its subsidiaries face legal proceedings in the course of their business operations. A civil antitrust lawsuit has been filed against a company of the Rosenbauer Group. An appropriate provision was recognized.
Against the Rosenbauer International AG is a civil suit pending, regarding copyright issues. For this purpose, a corresponding provision was formed as of 31 December 2017.
Charges were brought against Rosenbauer International AG in the second half of 2017 regarding an order placed by the Croatian Ministry of the Interior in 2003. The outcome of these investigations related to these charges is not known at this time, hence no accounting measures have been taken.
Irregularities were identified in connection with payments at Rosenbauer Deutschland GmbH. A special and extensive investigation of the matter was launched by Internal Audit and Compliance, which processed the facts based on its comprehensive investigations. Based on the findings obtained to date in the ongoing investigations, provisions were recognised in the consolidated financial statements as of December 31, 2017.
In the second half of 2018, Rosenbauer International AG became aware of the fact that, in Italy, following a public tender, government investigation proceedings were initiated. Based on the current assessment, no accounting measures have been taken.
The international nature of the Group's activities gives rise to interest and currency-related risks that are hedged by the use of suitable instruments. A financial and treasury policy that applies throughout the Group stipulates which instruments are permitted. Operating risks are hedged with derivative financial instruments. These transactions are conducted solely to hedge risks and not for the purposes of trading or speculation. For deliveries to countries with increased political or economic risk, public and private export insurance is generally taken out for the purpose of protection.
Rosenbauer feels that it is still well positioned to meet the demands made of it by the market, the economic environment, and international competition. Based on the analysis of currently discernible risks, there are no indications of any risks that – either singly or in conjunction with other risks – might jeopardise the Rosenbauer Group's continued existence. This applies both to the results of past business activity and to activities that are planned or have already been initiated.
| Assets in € thousand | Jun 30, 2017 | Dec 31, 2017 | Jun 30, 2018 | |
|---|---|---|---|---|
| A. | Non-current assets | |||
| I. Property, plant and equipment |
145,213.7 | 145,891.8 | 147,001.5 | |
| II. Intangible assets |
29,405.4 | 28,471.9 | 27,289.3 | |
| III. Securities |
651.3 | 807.8 | 774.7 | |
| IV. Investments in companies |
||||
| accounted for using the equity method | 7,028.2 | 6,678.6 | 6,052.2 | |
| V. Receivables and other assets |
170.2 | 51.8 | 104.1 | |
| VI. Deferred tax assets |
1,053.5 | 2,327.2 | 5,660.4 | |
| 183,522.3 | 184,229.1 | 186,882.2 | ||
| B. | Current assets | |||
| I. Inventories |
224,674.5 | 191,152.9 | 328,628.4 | |
| II. Construction contracts |
98,478.3 | 75,635.5 | 0.0 | |
| III. Receivables and other assets |
165,235.0 | 153,744.8 | 160,166.6 | |
| IV. Income-tax receivables |
623.1 | 637.1 | 127.4 | |
| V. Cash and cash equivalents |
12,853.8 | 20,041.1 | 20,390.3 | |
| 501,864.7 | 441,211.4 | 509,312.7 | ||
| Total assets | 685,387.0 | 625,440.5 | 696,194.9 |
| Equity and liabilities in € thousand | Jun 30, 2017 | Dec 31, 2017 | Jun 30, 2018 | ||
|---|---|---|---|---|---|
| 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 | (3,973.2) | (6,036.2) | (6,697.6) | |
| IV. | Accumulated results | 168,005.9 | 176,960.9 | 162,667.2 | |
| Equity attributable to | |||||
| shareholders of the parent company | 201,336.1 | 208,228.1 | 193,273.0 | ||
| V. | Non-controlling interests | 28,982.0 | 30,977.8 | 27,379.8 | |
| 230,318.1 | 239,205.9 | 220,652.8 | |||
| B. | Non-current liabilities | ||||
| I. | Non-current interest-bearing liabilities | 112,434.7 | 99,819.8 | 107,725.9 | |
| II. | Other non-current liabilities | 1,009.9 | 1,389.1 | 1,340.4 | |
| III. | Non-current provisions | 33,406.5 | 31,283.9 | 31,709.0 | |
| IV. | Deferred tax liabilities | 3,072.6 | 2,215.4 | 1,437.5 | |
| 149,923.7 | 134,708.2 | 142,212.8 | |||
| C. | Current liabilities | ||||
| I. | Current interest-bearing liabilities | 148,975.5 | 105,105.0 | 158,899.9 | |
| II. | Advance payments received | 22,269.3 | 20,870.9 | 25,734.6 | |
| III. | Trade payables | 41,933.3 | 39,490.3 | 56,892.5 | |
| IV. | Other current liabilities | 67,655.2 | 63,672.2 | 66,711.9 | |
| V. | Provisions for taxes | 3,955.6 | 2,456.2 | 2,841.9 | |
| VI. | Other provisions | 20,356.3 | 19,931.8 | 22,248.5 | |
| 305,145.2 | 251,526.4 | 333,329.3 | |||
| Total equity and liabilities | 685,387.0 | 625,440.5 | 696,194.9 |
| in € thousand | 1–6/2017 | 1–6/2018 | 4–6/2017 | 4–6/2018 | |
|---|---|---|---|---|---|
| 1. Revenues |
393,610.9 | 352,721.8 | 211,670.5 | 190,343.9 | |
| 2. Other income |
632.3 | 2,639.8 | 354.3 | 918.0 | |
| 3. | Change in inventory of finished goods | ||||
| and work in progress | 26,715.2 | 71,585.9 | 23,781.8 | 29,779.5 | |
| 4. Capitalized development costs |
851.4 | 562.0 | 440.5 | 316.6 | |
| 5. Costs of goods sold |
(250,591.2) | (257,608.7) | (143,722.4) | (131,800.2) | |
| 6. Staff costs |
(105,874.5) | (105,664.2) | (53,811.4) | (52,804.6) | |
| 7. Depreciation and amortization |
|||||
| expense on property, plant and equipment | |||||
| and intangible assets | (10,585.5) | (9,295.4) | (6,121.7) | (4,707.2) | |
| 8. Other expenses |
(52,025.5) | (44,862.5) | (26,760.0) | (23,092.1) | |
| 9. Operating result (EBIT) |
|||||
| before share in results of companies | |||||
| accounted for using the equity method | 2,733.1 | 10,078.7 | 5,831.6 | 8,953.9 | |
| 10. Financing expenses | (2,199.3) | (4,529.1) | (1,045.9) | (3,329.3) | |
| 11. Financing income | 2,868.0 | 936.6 | 1,535.3 | (341.2) | |
| 12. Share in results of companies accounted | |||||
| for using the equity method | 313.3 | (373.8) | 189.0 | (76.8) | |
| 13. Profit before income tax (EBT) | 3,715.1 | 6,112.4 | 6,510.0 | 5,206.6 | |
| 14. Income tax | (270.8) | (788.1) | (514.9) | (672.8) | |
| 15. Net profit for the period | 3,444.3 | 5,324.3 | 5,995.1 | 4,533.8 | |
| thereof: | |||||
| – Non-controlling interests | 5,319.0 | 4,346.9 | 3,038.3 | 1,724.0 | |
| – Shareholders of parent company | (1,874.7) | 977.4 | 2,956.8 | 2,809.8 | |
| Average number of shares outstanding | 6,800,000 units | 6,800,000 units | 6,800,000 units | 6,800,000 units | |
| Basic earnings per share | (€ 0.28) | € 0.14 | € 0.43 | € 0.41 | |
| Diluted earnings per share | (€ 0.28) | € 0.14 | € 0.43 | € 0.41 | |
| in € thousand | 1–6/2017 | 1–6/2018 | 4–6/2017 | 4–6/2018 |
|---|---|---|---|---|
| Net profit for the period | 3,444.3 | 5,324.3 | 5,995.1 | 4,533.8 |
| Restatements as required by IAS 19 | (53.4) | (41.1) | (26.7) | (20.6) |
| – thereof deferred taxes | 13.4 | 10.3 | 6.7 | 5.2 |
| Total changes in value recognized in equity | ||||
| that cannot be subsequently reclassified | ||||
| into profit or loss | (40.0) | (30.8) | (20.0) | (15.4) |
| Gains/losses from foreign currency translation | (4,606.2) | 1,714.7 | (4,237.4) | 3,288.2 |
| Gains/losses from foreign currency translation | ||||
| of companies accounted | ||||
| for using the equity method | (231.6) | (252.6) | (658.4) | (154.9) |
| Gains/losses from securities through | ||||
| fair value/other comprehensive income | ||||
| Change in unrealized gains/losses | 67.1 | 22.5 | 23.0 | 5.7 |
| – thereof deferred tax | (16.8) | (5.6) | (5.8) | (1.4) |
| Gains/losses from cash flow hedge | ||||
| Change in unrealized gains/losses | 4,154.6 | (1,762.6) | 3,386.1 | (1,938.2) |
| – thereof deferred tax | (1,038.7) | 440.6 | (846.6) | 484.5 |
| Realized gains/losses | 2,846.2 | (6.3) | 2,529.6 | 0.0 |
| – thereof deferred tax | (711.5) | 1.6 | (632.3) | 0.0 |
| Total changes in value recognized in equity | ||||
| subsequently reclassified into profit or loss | ||||
| when certain conditions are met | 463.1 | 152.3 | (441.8) | 1,683.9 |
| Other comprehensive income | 423.1 | 121.5 | (461.8) | 1,668.5 |
| Total comprehensive income | ||||
| after income tax | 3,867.4 | 5,445.8 | 5,533.3 | 6,202.3 |
| thereof: | ||||
| – Non-controlling interests | 3,161.2 | 5,129.8 | 1,180.5 | 3,308.2 |
| – Shareholders of parent company | 706.2 | 316.0 | 4,352.8 | 2,894.1 |
| Attributable to shareholders | ||||
|---|---|---|---|---|
| Other reserves | ||||
| Restatement | ||||
| Share | Capital | Currency | as required | |
| in € thousand | capital | reserve | translation | by IAS 19 |
| 2018 | ||||
| As of Dec 31, 2017 | 13,600.0 | 23,703.4 | 359.7 | (6,619.8) |
| Adaption to IFRS 151 | 0.0 | 0.0 | 0.0 | 0.0 |
| As of Jan 1, 2018 | 13,600.0 | 23,703.4 | 359.7 | (6,619.8) |
| Other comprehensive income | 0.0 | 0.0 | 679.2 | (30.8) |
| Net profit for the period | 0.0 | 0.0 | 0.0 | 0.0 |
| Total comprehensive income | 0.0 | 0.0 | 679.2 | (30.8) |
| Dividend | 0.0 | 0.0 | 0.0 | 0.0 |
| As of Jun 30, 2018 | 13,600.0 | 23,703.4 | 1,038.9 | (6,650.6) |
| 2017 | ||||
| As of Jan 1, 2017 | 13,600.0 | 23,703.4 | 5,843.0 | (6,459.2) |
| Other comprehensive income | 0.0 | 0.0 | (2,680.0) | (40.0) |
| Net profit for the period | 0.0 | 0.0 | 0.0 | 0.0 |
| Total comprehensive income | 0.0 | 0.0 | (2,680.0) | (40.0) |
| Disposal of | ||||
| non-controlling interests | 0.0 | 0.0 | 0.0 | 0.0 |
| Dividend | 0.0 | 0.0 | 0.0 | 0.0 |
| As of Jun 30, 2017 | 13,600.0 | 23,703.4 | 3,163.0 | (6,499.2) |
Attributable to shareholders in the parent company
| Group | Non controlling |
Accumulated | Hedging | Revaluation | |
|---|---|---|---|---|---|
| equity | interests | Subtotal | results | reserve | reserve |
| 239,205.9 | 30,977.8 | 208,228.1 | 176,960.9 | 97.6 | 126.3 |
| (11,091.1) | (2,620.0) | (8,471.1) | (8,471.1) | 0.0 | 0.0 |
| 228,114.8 | 28,357.8 | 199,757.0 | 168,489.8 | 97.6 | 126.3 |
| 121.5 | 782.9 | (661.4) | 0.0 | (1,326.7) | 16.9 |
| 5,324.3 | 4,346.9 | 977.4 | 977.4 | 0.0 | 0.0 |
| 5,445.8 | 5,129.8 | 316.0 | 977.4 | (1,326.7) | 16.9 |
| (12,907.8) | (6,107.8) | (6,800.0) | (6,800.0) | 0.0 | 0.0 |
| 220,652.8 | 27,379.8 | 193,273.0 | 162,667.2 | (1,229.1) | 143.2 |
| 241,991.5 | 32,933.5 | 209,058.0 | 178,308.7 | (5,988.2) | 50.3 |
| 423.1 | (2,157.8) | 2,580.9 | 0.0 | 5,250.6 | 50.3 |
| 0.0 | |||||
| 50.3 | |||||
| 3,444.3 3,867.4 |
5,319.0 3,161.2 |
(1,874.7) 706.2 |
(1,874.7) (1,874.7) |
0.0 5,250.6 |
|
| (503.8) | (235.7) | (268.1) | (268.1) | 0.0 | 0.0 |
| (15,037.0) | (6,877.0) | (8,160.0) | (8,160.0) | 0.0 | 0.0 |
| 230,318.1 | 28,982.0 | 201,336.1 | 168,005.9 | (737.6) | 100.6 |
| in € thousand | 1–6/2017 | 1–6/2018 |
|---|---|---|
| Profit before income tax | 3,715.1 | 6,112.4 |
| + Depreciation |
10,585.5 | 9,295.4 |
| ± Gains/losses of companies accounted |
||
| for using the equity method | (313.3) | 373.8 |
| + Interest expenses |
1,992.9 | 4,335.7 |
| – Interest income |
(2,868.0) | (936.6) |
| ± Unrealized gains/losses from currency translation |
(2,415.1) | 1,211.4 |
| ± Change in inventories |
(25,543.0) | (76,078.5) |
| ± Change in receivables and other assets |
||
| and construction contracts | (29,099.5) | (4,896.9) |
| ± Change in trade payables and advance payments received |
(10,317.6) | 22,456.4 |
| ± Change in other liabilities |
5,600.8 | 82.7 |
| ± Change in provisions (excluding income tax deferrals) |
339.5 | 2,741.8 |
| Cash earnings | (48,322.7) | (35,302.4) |
| – Interest paid |
(1,623.8) | (1,937.3) |
| + Interest received |
436.1 | 473.7 |
| – Income tax paid |
(2,234.0) | (2,646.6) |
| Net cash flow from operating activities | (51,744.4) | (39,412.6) |
| – Payments/proceeds from the purchase of property, |
||
| plant and equipment, intangible assets and securities | (7,999.4) | (8,352.5) |
| – Income from capitalized development costs |
(851.4) | (562.0) |
| Net cash flow from investing activities | (8,850.8) | (8,914.5) |
| – Payment of equity |
(503.8) | 0.0 |
| – Dividends paid |
(8,160.0) | (6,800.0) |
| – Dividends paid to non-controlling interests |
(6,877.0) | (6,107.8) |
| + Proceeds from interest-bearing liabilities |
130,979.6 | 135,274.5 |
| – Repayment of interest-bearing liabilities |
(71,682.4) | (73,573.5) |
| Net cash flow from financing liabilities | 43,756.4 | 48,793.2 |
| Net change in cash and cash equivalents | (16,838.8) | 466.1 |
| + Cash and cash equivalents at the beginning of the period |
30,209.7 | 20,041.1 |
| ± Adjustment from currency translation |
(517.1) | (116.9) |
| Cash and cash equivalents at the end of the period | 12,853.8 | 20,390.3 |
| Business segments in € thousand | 1–6/20171 | 1–6/2018 |
|---|---|---|
| External revenues | ||
| CEEU area | 135,218.5 | 111,223.70 |
| NISA area | 43,018.3 | 40,837.4 |
| MENA area | 27,540.6 | 43,498.3 |
| APAC area | 76,695.9 | 48,385.7 |
| NOMA area | 101,561.1 | 97,488.7 |
| SFP (Stationary Fire Protection) | 9,576.5 | 11,288.0 |
| Group | 393,610.9 | 352,721.8 |
| EBIT CEEU area |
(1,318.5) | 5,513.8 |
| NISA area | (622.2) | (1,079.2) |
| MENA area | (2,787.3) | 2,367.1 |
| APAC area | 3,221.8 | (190.4) |
| NOMA area | 5,685.1 | 4,584.4 |
| SFP (Stationary Fire Protection) | (1,445.8) | (1,117.0) |
| EBIT before share of results of companies | ||
| accounted for using the equity method | 2,733.1 | 10,078.7 |
| Finance expenses | (2,199.3) | (4,529.1) |
| Financial income | 2,868.0 | 936.6 |
| Share in results of companies accounted for using the equity method | 313.3 | (373.8) |
| Profit before income tax (EBT) | 3,715.1 | 6,112.4 |
| Business units in € thousand | 1–6/20171 | 1–6/2018 |
|---|---|---|
| External revenues | ||
| Vehicles | 307,013.6 | 274,041.00 |
| Fire & Safety Equipment | 36,210.9 | 29,232.4 |
| SFP (Stationary Fire Protection) | 9,576.5 | 11,288.0 |
| Customer Service | 22,554.8 | 25,576.3 |
| Others | 18,255.1 | 12,584.1 |
| Group | 393,610.9 | 352,721.8 |
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.
These unaudited interim consolidated financial statements as of June 30, 2018 were prepared in accordance with the principles of the International Financial Reporting Standards (IFRS) as endorsed in the EU, notably IAS 34 (Interim Financial Reporting). 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 2017. 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, 2017.
The interim consolidated financial statements have been prepared in thousands of euro (€ thousand) and, unless expressly stated, this also applies to the figures shown in the notes.
The IASB published IFRS 9 "Financial Instruments" in July 2014, which is to be first applied in the reporting period of a financial year beginning on January 1, 2018 or thereafter, and replaces IAS 39 "Financial Instruments". IFRS 9 stipulates changes regarding the categorisation and valuation of financial instruments, impairment of financial assets and regulations on hedge accounting.
The effects of the new standard IFRS 9 on the Rosenbauer Group are described below:
As of January 1, 2018, the investments in equity instruments that were thus far shown as long-term securities under the IAS 39 category "available-for-sale" shall be assigned to the IFRS 9 category "fair value measurement of other income" with the consequence that all valuation gains/losses are summarised in other income. In contrast to IAS 39 category "available-for-sale", the category "fair value measurement of other income" no longer stipulates a rebooking of the valuation gains/losses booked in other income to the profit and loss account, meaning that these are now permanently shown within the group equity.
Trade receivables were measured as a component of the category "loans and receivables" at amortised cost in accordance with IAS 39 thus far. The assignment to the possible IFRS 9 categories is made based on the business model test as well as the properties of the cash flows. Rosenbauer practices the business model
of "holding and selling" with regard to trade receivables, since the contractual cash flows from both customer payments as well as sales in the context of factoring agreements are booked to various house banks. This has the consequence that trade receivables fall under the category "fair value measurement of other income" and must therefore generally be measured at fair value from the date of initial application of IFRS 9. The assignment of the trade receivables to this category has no significant effects for the Rosenbauer Group, since the majority of trade receivables are expected to be balanced within one year, and for this reason the fair value is approximately equivalent to the valuation standard for amortised costs.
With regard to the accounting of impairment of financial assets, the initial application of IFRS 9 results in no significant impact, since the Group uses the simplified impairment model for trade receivables as well as for leasing receivables, and the impairment so far according to IAS 39 based on credit losses that have already occurred essentially corresponds to the impairment according to IFRS 9 based on expected credit losses due to the good creditworthiness of the customers.
As far as hedge accounting is concerned, there is no impact on the consolidated financial statements, since all ongoing hedge relationships continue to qualify for hedge accounting application in accordance with IFRS 9. Furthermore, no new hedging relationships shall be designated and no existing hedge designations shall be ended based on the conversion to IFRS 9.
The following table contains a transition of the carrying amounts of the financial instruments, subdivided by the classes of the consolidated balance sheet and the IFRS 9 categories for the categories used until this point according to IAS 39.
| Classification | Classification | Book value acc.to IAS 39 |
Book value acc.to IFRS 9 |
|---|---|---|---|
| acc.to IAS 39 | acc.to IFRS 9 | Dec 31, 2017 | Jan 1, 2018 |
| Available-for-sale | Measured at | 807.8 | 807.8 |
| fair value in equity | |||
| without recycling | |||
| Loans, receivables | Measured at | 51.8 | 51.8 |
| and liabilities | amortised cost | ||
| Loans, receivables | Measured at | 62,472.7 | 62,472.7 |
| and liabilities | amortised cost | ||
| Loans, receivables | Measured at | 84,433.4 | 84,433.4 |
| and liabilities | fair value in equity | ||
| with recycling | |||
| n/a | n/a | 132.2 | 132.2 |
| Book value | Book value | |||
|---|---|---|---|---|
| Classification | Classification | acc.to IAS 39 | acc.to IFRS 9 | |
| in € thousand | acc.to IAS 39 | acc.to IFRS 9 | Dec 31, 2017 | Jan 1, 2018 |
| Current derivatives | At fair value | Mandatorily | 1,379.1 | 1,379.1 |
| with positive market value | through | measured at | ||
| profit or loss | fair value in equity | |||
| Cash and cash equivalents | Cash and | Measured at | 20,041.1 | 20,041.1 |
| cash equivalents | amortised cost | |||
| Non-current liabilities | ||||
| Non-current interest-bearing | Loans, receivables | Measured at | 99,819.8 | 99,819.8 |
| liabilities | and liabilities | amortised cost | ||
| Current liabilities | ||||
| Current interest-bearing | Loans, receivables | Measured at | 105,105.0 | 105,105.0 |
| liabilities | and liabilities | amortised cost | ||
| Current derivatives | n/a | n/a | 2.1 | 2.1 |
| with negative market value | ||||
| (hedging instruments | ||||
| in designated hedging | ||||
| relationships) | ||||
| Current derivatives | At fair value | Mandatorily | 675.3 | 675.3 |
| with negative market value | through | measured at | ||
| profit or loss | fair value in equity | |||
| Trade payables | Loans, receivables | Measured at | 39,490.3 | 39,490.3 |
| and liabilities | amortised cost | |||
| Other current liabilities | Loans, receivables | Measured at | 36,335.7 | 36,335.7 |
| and liabilities | amortised cost | |||
In May 2014, the IASB issued IFRS 15 "Revenue from contracts with customers". This standard introduces a five-step model for the accounting of revenues from contracts with customers and stipulates a comprehensive framework regarding whether, to what amount and at what point in time or across which period of time revenues are accounted for. The regulations of IFRS 15 redefined the meaning of the term transfer of control. Alongside this, the standard also contains a series of further regulations on detailed points as well as an extension of the required notes. IFRS 15 replaces existing regulations on the recognition of revenues, including IAS 18 "Revenue", IAS 11 "Construction Contracts" and IFRIC 13 "Customer Loyalty Programmes". IFRS 15 is to be first applied in the reporting period of a financial year beginning on January 1, 2018 or thereafter, whereby either a fully retrospective approach or a modified retrospective application are permitted.
In the Rosenbauer Group, IFRS 15 was first applied in the reporting period under application of the modified retrospective approach. The effects of IFRS 15 on the Rosenbauer Group are described in greater detail below.
The group generates revenues in the following areas:
The vehicles as well as related items of equipment and replacement parts are divested both via separately identifiable contracts as well as jointly as packages consisting of goods and services. The detailed analysis of the effects of the conversion from the initial application of IFRS 15 is described in the following paragraphs:
For contracts that include a service component as well as the supply of goods, the consideration is divided among the individual components based on relative individual sales prices in accordance with IFRS 15 and the revenue from these contracts is not realised in full at a specific point in time. Even before the initial application of IFRS 15, the Rosenbauer Group identified the contractual obligations in accordance with IFRS 15 in multi-component contracts and separately realised the revenues for each contractual obligation in a contract. Similarly, the transaction price of multi-component contracts was also divided among the individual contractual obligations in relation to relative individual sales prices before the initial application of IFRS 15. There are therefore no effects on the point in time or amount of the revenue recognition in the Rosenbauer Group in this area.
Until now, construction contracts were accounted for in the Rosenbauer Group in accordance with IAS 11 using the PoC method. An analysis of the criteria for a revenue recognition for a specific period of time in accordance with IFRS 15 showed that the construction contracts in the Rosenbauer Group may no longer be accounted for using the PoC method (revenue recognition for a specific period of time) due to the following reasons:
In accordance with IFRS 15, the revenue may only be realised if the control of the promised goods or promised service is transferred to the customer. It must first be checked whether the above-mentioned control is transferred over a certain period of time. The corresponding criteria for this are defined in IFRS 15.35.
The first criterion, according to which the benefit from the service provided by the company goes to the customer and he simultaneously makes use of the service while it is being performed, is not fulfilled in the Rosenbauer construction contracts.
According to the second criterion, the customer has the control over an asset while it is being created or improved. In the typical Rosenbauer vehicle contracts, the customer does not receive possession of the unfinished service, such that he does not have the possibility to determine the use of the goods and to receive the remaining benefit therefrom.
The third criterion requires that the asset (construction contract) offers no alternative use and that there is a payment claim for the services that have already been rendered. Although Rosenbauer vehicles are constructed according to the individual needs of the customer, they are not so specific that they could not be adapted for other customers with a reasonable conversion effort.
Since the above mentioned criteria are not fulfilled according to IFRS 15.35, a revenue recognition for a specific period of time using the PoC method is no longer applicable in the Rosenbauer Group. As of the financial year 2018, the transition to a revenue recognition for a specific period of time will be made, meaning that as of January 1, 2018, the revenue recognition will be made at a later point in time.
This means that at the time of initial application, the PoC receivables as well as the PoC sales accounted for at December 31, 2017 in the consolidated financial statements will be cancelled and instead the contracts will be accounted for as inventories with the appropriate change in inventory in the consolidated financial statements. At January 1, 2018, after taking into account the income tax-related consequences, the net effect from the cancellation of the PoC receivables and the recording of the inventories will be recorded directly in equity in the amount of € –11,436.7 thousand.
Until now, expenses for possible penalty payments due to non-compliance with delivery deadlines were accounted for in the result for the period under other operating expenditure. According to IFRS 15, expected penalty payments are to be treated as reductions in the transaction price, with the consequence that from the time of initial application, these must be displayed as a decrease in revenues in the result for the period.
According to IFRS 15, take-back obligations in customer contracts should be considered as a variable element of the consideration when determining the transaction price. Here IFRS 15 stipulates that revenues from sales may only be realised to the extent in which it can be expected that no future cancellation of the revenues shall arise. For the claim from the receipt of the returned asset affected by the take-back obligation, an asset must be accounted for, while for the obligation to partially reimburse the received consideration, a debt must be accounted for. In the Rosenbauer Group, individual customer contracts with take-back obligations were identified, thus in the time of initial application, corresponding assets will be accounted for due to claims from the receipt of returned assets as well as related reimbursement liabilities, which as of 2018 will lead to an insignificant balance sheet extension. At January 1, 2018, after taking into account the income tax-related consequences, the net effect from the initial recording of assets for claims from the receipt of returned assets as well as related reimbursement liabilities will be recorded directly in equity in the amount of € +345.6 thousand.
| Adjustment IFRS 15 | |||||
|---|---|---|---|---|---|
| PoC | Take-back | ||||
| in € thousand | Dec 31, 2017 | method | obligation | Jan 1, 2018 | Change |
| Non-current assets | |||||
| Deferred tax assets | 2,327.2 | 2,801.8 | (154.4) | 4,974.6 | 2,647.4 |
| Current assets | |||||
| Inventories | 191,152.9 | 61,397.0 | 0.0 | 252,549.9 | 61,397.0 |
| Construction contracts | 75,635.5 | (75,635.5) | 0.0 | 0.0 | (75,635.5) |
| Receivables and | |||||
| other assets | 153,744.8 | 0.0 | 1,250.0 | 154,994.8 | 1,250.0 |
| Equity | |||||
| Accumulated results | 176,960.9 | (8,816.7) | 345.6 | 168,489.8 | (8,471.1) |
| Non-controlling interests | 30,977.8 | (2,620.0) | 0.0 | 28,357.8 | (2,620.0) |
| Current liabilities | |||||
| Other current liabilities | 63,672.2 | 0.0 | 750.0 | 64,422.2 | 750.0 |
The following table shows the impact of the IFRS 15 standard, applied for the first time, on relevant balance sheet items at January 1, 2018:
With the exception of the standard IFRIC 22 "Foreign Currency Transactions and Advance Consideration" which was already applied in 2017 ahead of time, no further new standards were applied ahead of time. The following mandatory new standards that must be applied in the interim reporting period have no effect on the interim financial statements of Rosenbauer International AG:
| Effective date | ||
|---|---|---|
| according | according to | |
| Standards/Interpretationen | to IASB | EU-endorsement |
| Amendments to IFRS 4: Applying IFRS 9 Financial Instruments | Jan 1, 2018 | Jan 1, 2018 |
| with IFRS 4 Insurance Contracts (published September 2016) | ||
| Amendments to IFRS 2: Classification and Measurement of | Jan 1, 2018 | Jan 1, 2018 |
| Share-based Payment Transactions (published June 2016) | ||
| Amendments to IAS 40: Transfer of Investmenty Property | Jan 1, 2018 | Jan 1, 2018 |
| (published December 2016) | ||
| Improvements to IFRS (2014–2016) | Jan 1, 2017/ | Jan 1, 2017/ |
| (published December 2016) | Jan 1, 2018 | Jan 1, 2018 |
| IFRIC 23: Uncertainty over Income Tax Treatments | Jan 1, 2019 | Not yet applied |
| (published June 2017) | ||
| Amendments to IAS 28: Long-term interests in Associates | Jan 1, 2019 | Not yet applied |
| and Joint Ventures (published October 2017) | ||
| Amendments to IFRS 9: Prepayment Features with | Jan 1, 2019 | Not yet applied |
| Negative Compensation (published October 2017) | ||
| Improvements to IFRS (2015–2017) | Jan 1, 2019 | Not yet applied |
| (published December 2017) | ||
| Amendments to IAS 19: Plan Amendment, Curtailment | Jan 1, 2019 | Not yet applied |
| or Settlement (published February 2018) | ||
| Amendments to References to the Conceptual Framework | Jan 1, 2020 | Not yet applied |
| in IFRS Standards (published March 2018) | ||
| IFRS 17: Insurance Contracts (published May 2017) | Jan 1, 2021 | Not yet applied |
The following tables depict the effects of the standard IFRS 15, which was applied for the first time, on the consolidated financial statements of 30 June 2018 in comparison to the previously applied standards IAS 18/IAS 11.
| Adjustment | 1–6/2018 | |||
|---|---|---|---|---|
| IFRS 15 | without | |||
| PoC | application | |||
| in € thousand | 1–6/2018 | method | of IFRS 15 | Change |
| Revenues | 352,721.8 | 50,288.2 | 403,010.0 | 50,288.2 |
| Other income | 2,639.8 | 0.0 | 2,639.8 | 0.0 |
| Change in inventory of finished goods | ||||
| and work in progress | 71,585.9 | (43,000.5) | 28,585.4 | (43,000.5) |
| Capitalized development costs | 562.0 | 0.0 | 562.0 | 0.0 |
| Costs of goods sold | (257,608.7) | 0.0 | (257,608.7) | 0.0 |
| Staff costs | (105,664.2) | 0.0 | (105,664.2) | 0.0 |
| Depreciation and amortization | ||||
| expense on property, plant and equipment | ||||
| and intangible assets | (9,295.4) | 0.0 | (9,295.4) | 0.0 |
| Other expenses | (44,862.5) | 0.0 | (44,862.5) | 0.0 |
| Operating result (EBIT) | ||||
| before share in results of companies | ||||
| accounted for using the equity method | 10,078.7 | 7,287.7 | 17,366.4 | 7,287.7 |
| Adjustment | 1–6/2018 | |
|---|---|---|
| PoC | application | |
| method | of IFRS 15 | Change |
| 0.0 | (4,529.1) | 0.0 |
| 0.0 | 936.6 | 0.0 |
| 0.0 | (373.8) | 0.0 |
| 7,287.7 | 13,400.1 | 7,287.7 |
| (1,771.7) | (2,559.8) | (1,771.7) |
| 5,516.0 | 10,840.3 | 5,516.0 |
| 475.6 | 4,822.5 | 475.6 |
| 5,040.4 | 6,017.8 | 5,040.4 |
| 6,800,000 | ||
| € 0.0 | € 0.88 | € 0.74 |
| € 0.0 | € 0.88 | € 0.74 |
| IFRS 15 | without |
| Jun 30, 2018 | |||||
|---|---|---|---|---|---|
| Adjustment IFRS 15 | without | ||||
| PoC | Take-back | application | |||
| in € thousand | Jun 30, 2018 | method | obligation | of IFRS 15 | Change |
| Non-current assets | |||||
| Deferred tax assets | 5,660.4 | (4,645.0) | 154.4 | 1,169.8 | (4,490.6) |
| Current assets | |||||
| Inventories | 328,628.4 | (102,182.4) | 0.0 | 226,446.0 | (102,182.4) |
| Construction contracts | 0.0 | 123,892.7 | 0.0 | 123,892.7 | 123,892.7 |
| Receivables and | |||||
| other assets | 160,166.6 | 0.0 | (1,250.0) | 158,916.6 | (1,250.0) |
| Equity | |||||
| Accumulated results | 162,667.2 | 13,873.5 | (345.6) | 176,195.1 | 13,527.9 |
| Non-controlling interests | 27,379.8 | 3,191.8 | 0.0 | 30,571.6 | 3,191.8 |
| Current liabilities | |||||
| Other current liabilities | 66,711.9 | 0.0 | (750.0) | 65,961.9 | (750.0) |
| Adjustment | 1–6/2018 | |||
|---|---|---|---|---|
| IFRS 15 | without | |||
| PoC | application | |||
| in € thousand | 1–6/2018 | method | of IFRS 15 | Change |
| Profit before income tax | 6,112.4 | 7,287.7 | 13,400.1 | 7,287.7 |
| + Depreciation | 9,295.4 | 0.0 | 9,295.4 | 0.0 |
| ± Gains/losses of companies accounted | ||||
| for using the equity method | 373.8 | 0.0 | 373.8 | 0.0 |
| + Interest expenses | 4,335.7 | 0.0 | 4,335.7 | 0.0 |
| – Interest income | (936.6) | 0.0 | (936.6) | 0.0 |
| ± Unrealized gains/losses | ||||
| from currency translation | 1,211.4 | 184.1 | 1,395.5 | 184.1 |
| ± Change in inventories | (76,078.5) | 40,785.4 | (35,293.1) | 40,785.4 |
| ± Change in receivables and other assets | ||||
| and construction contracts | (4,896.9) | (48,257.2) | (53,154.1) | (48,257.2) |
| ± Change in trade payables | ||||
| and advance payments received | 22,456.4 | 0.0 | 22,456.4 | 0.0 |
| ± Change in other liabilities | 82.7 | 0.0 | 82.7 | 0.0 |
| ± Change in provisions | ||||
| (excluding income tax deferrals) | 2,741.8 | 0.0 | 2,741.8 | 0.0 |
| Cash earnings | (35,302.4) | 0.0 | (35,302.4) | 0.0 |
| Net cash flow from operating activities | (39,412.6) | 0.0 | (39,412.6) | 0.0 |
| Net cash flow from investing activities | (8,914.5) | 0.0 | (8,914.5) | 0.0 |
| Net cash flow from financing liabilities | 48,793.2 | 0.0 | 48,793.2 | 0.0 |
| Net change in cash and cash equivalents | 466.1 | 0.0 | 466.1 | 0.0 |
| + Cash and cash equivalents | ||||
| at the beginning of the period | 20,041.1 | 0.0 | 20,041.1 | 0.0 |
| ± Adjustment from currency translation | (116.9) | 0.0 | (116.9) | 0.0 |
| Cash and cash equivalents | ||||
| at the end of the period | 20,390.3 | 0.0 | 20,390.3 | 0.0 |
A separate sales and service company Rosenbauer Polska Sp.z o.o. was founded in Poland in the second quarter of 2018. Due to the integration into the global Rosenbauer sales and service network, Polish customers can be directly assisted in the future and a further important municipal market can be served with its own location. As of the second quarter of 2018, the newly founded company will be included in the consolidated financial statements as a fully consolidated company.
The second quarter of 2018 also saw the successful completion of the merger of the G&S Group companies, which had thus far been run individually. All companies of the G&S Group will now operate under the name of G&S Brandschutztechnik AG with headquarters in Mogendorf, Germany.
In accordance with IFRS 10, the consolidated financial statements as of June 30, 2018 include three Austrian and 23 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.
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. In the period under review there were no unusual developments over and above the seasonal fluctuations characteristic of the industry. Further information on developments in the period under review can be found in the interim Group management report.
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.
There has been no change in the composition of related parties since December 31, 2017. The following transactions were conducted with related parties in the period under review:
| Joint ventures | Management | |||
|---|---|---|---|---|
| in € thousand | 1–6/2017 | 1–6/2018 | 1–6/2017 | 1–6/2018 |
| Sales of goods | 0.4 | 0.0 | 0.0 | 0.0 |
| Purchase of goods | 1,073.2 | 426.8 | 0.0 | 0.0 |
| Trade payables | 916.8 | 347.8 | 0.0 | 0.0 |
| Loans receivables | 0.0 | 0.0 | 698.2 | 322.9 |
| Loans liabilities | 0.0 | 0.0 | 0.0 | 100.0 |
| Land rent | 0.0 | 0.0 | 265.6 | 252.3 |
| Consulting services | 0.0 | 0.0 | 3.7 | 0.0 |
At the Annual General Meeting held on May 18, 2018, the distribution of the dividend for 2017 proposed in the consolidated financial statements in the amount of € 1.0 per share (for 2016: € 1.2 per share) was resolved. The dividend was paid out on May 24, 2018.
Income tax for the period under review have been recognised 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 2018 break down into € 1,828.1 thousand (1–6/2017: € 1,367.7 thousand) in current income tax expenses and € –1,040.0 thousand (1–017: € –1,096.9 thousand) in changes in deferred income tax.
10. SEGMENT REPORTING
Since January 1, 2018, Rosenbauer has been applying the new standard IFRS 15 for the first time. For the transition to the new provisions, the modified, retrospective approach was selected in each case where the previous year's values for revenues and EBIT are not adjusted. The statement for the first half of 2018 is therefore produced in accordance with IFRS 15; the statement for the first half of 2017 in accordance with the standards IAS 18/IAS 11.
In accordance with IFRS 8 (Operating Segments), 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.
No significant events occured by the time of the preperation of the Quarterly Report.
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.
Interest rate and FX risks are hedged using derivative financial instruments such as FX forwards and interest rate caps. While some of these transactions are hedges from a business perspective, they do not meet the hedge accounting requirements of IAS 39. The changes in the fair value of these financial instruments are recognized immediately in profit or loss in the consolidated income statement. Derivatives
that meet the hedge accounting requirements of IAS 39 are used solely to hedge future cash flows (i.e. cash flow hedges) and are presented separately in other comprehensive income in the consolidated statement of comprehensive income. As of June 30, 2018 the fair value of hedges recognized in the income statement was € –958.2 thousand (June 30, 2017: € 336.9 thousand), and that of the hedges recognized in other comprehensive income was € –1,638.8 thousand (June 30, 2017: € –983.4 thousand).
The following hierarchy is used in the consolidated financial statements to determine and report the fair values of financial instruments by measurement method:
For all classes of financial instruments other than non-current interest-bearing loan liabilities, the carrying amount is equal to the fair value. The inputs for calculating the fair value of non-current loan liabilities bearing interest at fixed rates are assigned to level 2 of the IFRS 13 fair value hierarchy. The fair value is calculated using a DCF method, applying a discount rate that reflects the Group's interest rate on borrowed capital as of the end of the reporting period.
The financial investments available for sale shown as level 1 include listed equities and units in funds. The fair value of currency forwards and interest rate swaps, which are 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 FX future yields based on interbank mid-rates as of the end of the reporting period).
| Level 1 | Level 2 | |||
|---|---|---|---|---|
| in € thousand | Jun 30, 2017 | Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2018 |
| Derivative financial instruments | ||||
| without securement | ||||
| Positive fair value | 0.0 | 0.0 | 558.4 | 497.8 |
| Negative fair value | 0.0 | 0.0 | 221.8 | 1,456.0 |
| Derivative financial instruments | ||||
| with securement | ||||
| Positive fair value | 0.0 | 0.0 | 1,002.3 | 151.0 |
| Negative fair value | 0.0 | 0.0 | 1,985.7 | 1,789.8 |
| Interest rate hedges | ||||
| Positive fair value | 0.0 | 0.0 | 0.3 | 0.0 |
| Negative fair value | 0.0 | 0.0 | 0.0 | 0.0 |
| Available-for-sale instruments | ||||
| Positive fair value | 651.3 | 774.7 | 0.0 | 0.0 |
| Negative fair value | 0.0 | 0.0 | 0.0 | 0.0 |
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.
| At fair value | ||||
|---|---|---|---|---|
| Other | ||||
| At | compre- | Through | ||
| Carrying | amortised | hensive | profit | |
| in € thousand | amount | cost | income | and loss |
| Jun 30, 2018 | ||||
| Securities | 774.7 | 0.0 | 774.7 | 0.0 |
| Receivables | 160,270.7 | 159,621.9 | 151.0 | 497.8 |
| Cash and cash equivalents | 20,390.3 | 20,390.3 | 0.0 | 0.0 |
| Interest-bearing liabilities | 266,625.8 | 266,625.8 | 0.0 | 0.0 |
| Trade payables | 56,892.5 | 56,892.5 | 0.0 | 0.0 |
| Other liabilties | 68,052.3 | 64,806.5 | 1,789.8 | 1,456.0 |
| Jun 30, 2017 | ||||
| Securities | 651.3 | 0.0 | 651.3 | 0.0 |
| Receivables | 165,405.2 | 163,844.2 | 1,002.3 | 558.7 |
| Cash and cash equivalents | 12,853.8 | 12,853.8 | 0.0 | 0.0 |
| Interest-bearing liabilities | 261,410.2 | 261,410.2 | 0.0 | 0.0 |
| Trade payables | 41,933.3 | 41,933.3 | 0.0 | 0.0 |
| Other liabilties | 68,665.1 | 66,457.6 | 1,985.7 | 221.8 |
A civil antitrust lawsuit has been filed against a company of the Rosenbauer Group. An appropriate provision was recognized.
Against the Rosenbauer International AG a civil suit is pending. For this purpose, a corresponding provision was formed 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.
Irregularities were detected in the process of preparing the 2017 annual financial statements of Rosenbauer Deutschland GmbH. Based on the findings obtained to date in the ongoing investigations, write-downs on individual receivables of € 1.2 million and a provision for other identified risks of € 3.4 million were recognized in the consolidated financial statements as of December 31, 2017. The Executive Board has provided the necessary structural and staff resources for the further investigations, and appropriate measures will be derived once the findings are available.
In the second half of 2018, Rosenbauer International AG received knowledge of the fact that, in Italy, following a public tender, government investigation proceedings were initiated. Based upon the current assessment, no accounting measures have been taken.
These condensed interim consolidated financial statements of Rosenbauer International AG as of June 30, 2018 have been drawn up in accordance with IFRS (as adopted in the European Union) and, to the best of our knowledge, convey a true and fair view of the net asset, financial position and result of operations of all the enterprises included in the consolidation.
The interim group management report gives a true and fair view of the net asset, financial position and result of operations in terms of the information required pursuant to Section 87 (2) and (4) of the Börsegesetz (Austrian Stock Exchange Act).
In the case of this report it was decided to dispense with an audit or review by an external auditor.
Leonding, August 10, 2018
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, Human Resources, APAC, CEEU, MENA, Supply Chain Management, Group Accounting and Tax, Strategy, NISA and NOMA, Central Technics, Legal, Compliance & Innovation & Marketing, Sales Administration, CoC Operations Insurance, Export Finance,
Group Communication, Customer Service Treasury, Investor Relations,
Tiemon Kiesenhofer Phone: +43 732 6794-568 E-mail: [email protected] www.rosenbauer.com/group
| Nov 13, 2018 | Quarterly Report 3/2018 |
|---|---|
| May 23, 2019 | 27th Annual General Meeting |
| ISIN | AT0000922554 | |
|---|---|---|
| Reuters | RBAV.VI | |
| Bloomberg | ROS AV | |
| Share class | No-par-value shares, bearer or registered | |
| ATX prime weighting | 0.31% |
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 Quarterly Report 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 Quarterly Report is for convenience. Only the German text is binding.
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