Quarterly Report • May 6, 2015
Quarterly Report
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| in EUR mill. | Q1 2015 | Q1 2014 | CHANGE |
|---|---|---|---|
| Sales | 155.8 | 117.9 | 32.1% |
| EBITDA | 14.2 | 8.2 | 73.2% |
| EBITDA margin | 9.1% | 7.0% | |
| EBIT | 8.8 | 4.3 | 103.2% |
| EBIT margin | 5.6% | 3.6% | |
| Earnings after tax | 5.9 | 3.2 | 85.9% |
| Earnings per share (in EUR) | 0.26 | 0.13 | 100.0% |
| Capital expenditures | 100.5 | 4.8 | N/A |
| Equity ratio | 32.1% | 49.7% | |
| Net Working Capital | 61.0 | 60.0 | 1.7% |
| Capital employeed | 266.2 | 147.0 | 81.1% |
| Net financial debt (+)/-assets (-) | 105.9 | -3.8 | N/A |
| Employees - End of period | 4,287 | 3,503 | 22.4% |
| in EUR mill. | Q3 2014 | Q4 2014 | Q1 2015 | CHANGE |
|---|---|---|---|---|
| Sales | 118.1 | 134.7 | 155.8 | 15.7% |
| EBITDA | 8.4 | 11.4 | 14.2 | 24.6% |
| EBITDA margin | 7.1% | 8.5% | 9.1% | |
| EBIT | 4.5 | 7.1 | 8.8 | 23.9% |
| EBIT margin | 3.8% | 5.3% | 5.6% | |
| Earnings after Tax | 3.0 | 4.2 | 5.9 | 40.5% |
| Earnings per share (in EUR) | 0.14 | 0.19 | 0.26 | 36.8% |
| Equity ratio | 36.0% | 34.0% | 32.1% | |
| Net Working Capital | 55.1 | 56.2 | 61.0 | 8.5% |
| Capital employeed | 148.0 | 164.7 | 266.2 | 61.6% |
| Net financial debt (+)/-assets (-) | -4.7 | 11.8 | 105.9 | N/A |
| Employees - End of period | 3,569 | 4,162 | 4,287 | 3.0% |
POLYTEC GROUP
POLYTEC GROUP 04
The three major automotive markets - Western Europe, the USA and China - showed marked gains in the first quarter of 2015. The volume of new registrations increased by 8.5% to 3.64 million units in Europe (EU28 + EFTA). In the first three months of 2015, the registrations of light vehicles (cars and light trucks) increased by 5.6% to 3.94 million units in the USA and continued to be ahead of Western Europe. Especially in the month of March, the demand for new cars was very dynamic in Europe and China. The Western European passenger car market continued its successful course in March and grew by 10.9%. With 1.56 million new cars sold, it represented the highest sales volume in this month over the past five years.
In contrast, new registrations and sales of passenger cars in the crisis-ridden countries of Russia (-36.3%) and Brazil (-16.2%) declined significantly in the first quarter of 2015. Due to a special effect (advance purchases due to increase in VAT), Japan also recorded a decline (-15.5%). A positive development was noticeable in India, where the sales volume rose by 4.5% (Q1 2014: 2.7%).
The start was particularly lively in China in 2015: In the first quar-
ter, the passenger car sales rose by 11.3% to 4.98 million cars compared to the same period last year. In March alone, sales increased by 12% to about 1.75 million units. Thanks to a significantly higher starting level, the VDA expects a growth rate of at least 6% and a volume of 19.5 million in new cars for the whole of 2015. This means that China increased the gap with US market and Western Europe and clearly continues to be the world's most important automotive market.
New registrations of commercial vehicles rose in the first quarter of 2015 in the EU by 13.3% to 500,000 units (Q1 2014: about 440,000). Growth was noticeable in all major markets: Spain +42.3%, United Kingdom +24.2%, Germany +7.1% and Italy 7.0%, while France recorded a decline (-0.5%). In March 2015 alone, the total registrations rose by +20.7%, or almost 224,000 commercial vehicles in the EU (Q1 2014: 185,000). This was the highest monthly increase since December 2013. Increases were noticeable in all weight classes.
Sources: Association of the German Automotive Industry (VDA), European Automobile Manufacturers Association (ACEA)
| in EUR mill. | Q1 2015 | Q1 2014 | CHANGE |
|---|---|---|---|
| Sales | 155.8 | 117.9 | 32.1% |
| EBITDA | 14.2 | 8.2 | 73.1% |
| EBIT | 8.8 | 4.3 | 103.2% |
| Earnings after tax | 5.9 | 3.2 | 85.9% |
| EBITDA margin | 9.1% | 7.0% | |
| EBIT margin | 5.6% | 3.6% | |
| Earnings per share | 0.26 | 0.13 | 100.0% |
Group sales of POLYTEC GROUP increased by 32.1% to EUR 155.8 million in the first quarter of 2015. This includes the earnings contribution of approx. EUR 29.2 million by the two Dutch plants in Roosendaal and Putte acquired at the end of November 2014. Excluding this acquisitive effect would result in an organic sales growth of EUR 8.6 million or 7.3%. This was driven in particular by the sharp rise in sales of passenger cars in small series sector.
Group EBIT more than doubled in the first three months of 2015 to EUR 8.8 million. In addition to the earnings contribution by the sites in the Netherlands, the improved profitability of individual business divisions contributed to the increase in operating profits. In addition, the acquisition of the property portfolio of approximately EUR 1.5 million, previously held by Huemer Holding GmbH, had a positive impact on operating profits.
The EBIT margin amounted to 5.6% in the first quarter of 2015 (Q1 2014: 3.6%). Both the material and personnel cost ratio improved compared to the values from the previous year. The financial result amounted to EUR -0.9 million (Q1 2014: EUR -0.3 million). The change is primarily due to the interest expense from the promissory notes issued at end of September 2014. The tax rate of the POLYTEC GROUP for the first quarter of 2015 amounted to 25.3%. For the whole of 2014, the tax rate of the Group amounted to 24.9%. The Group generated a net profit of EUR 5.9 million. (Q1 2014: EUR 3.2 million). The earnings per share amounted to EUR 0.26 (Q1 2014: EUR 0.13).
| in EUR mill. | Q1 2015 | Share in % | Q1 2014 |
|---|---|---|---|
| Passenger cars | 107.2 | 68.8% | 76.5 |
| Commerical vehicles | 34.0 | 21.8% | 29.1 |
| Non-automotive | 14.6 | 9.4% | 12.3 |
| Group | 155.8 | 100.0% | 117.9 |
In the POLYTEC GROUP market segment with the highest sales, i.e. passenger cars, sales rose by 40.1% to EUR 107.2 million compared to the same quarter in the previous year. This significant increase was primarily due to the two newly acquired Dutch plants. Growth in customer Daimler Car, Jaguar/Land Rover and Volvo Car exhibited the greatest positive change. Even the passenger car customer with the largest share of Group sales, VW Car, developed very positively in the first quarter of 2015.
Sales in the commercial vehicles market segment increased by 16.8% to EUR 34.0 million in the first quarter of 2015 compared to the same period last year. This increase was also due to the customer DAF Truck - an effect of the Company acquisition.
Sales in the Non-automotive market segment increased compared to the same quarter of 2014 by 18.7% to EUR 14.6 million. This includes a revenue contribution of the customer Miele. The production of switching panels for washing machines and dryers was launched in the third quarter of 2013. The project still is in start-up phase. The sales of transport boxes likewise increased significantly in the first quarter of 2015.
| in EUR mill. | Q1 2015 | Share in % | Q1 2014 |
|---|---|---|---|
| Part sales and other sales | 141.2 | 90.3% | 104.6 |
| Tooling- and engineering sales | 14.6 | 9.7% | 13.3 |
| Group | 155.8 | 100.0% | 117.9 |
The increase in tooling and development sales resulted from the corresponding activities in the Dutch plants. In addition, tooling and development sales moved at a stable level.
| in EUR mill. | Q1 2015 | Share in % | Q1 2014 |
|---|---|---|---|
| Austria | 5.5 | 3.5% | 3.2 |
| Germany | 83.5 | 53.6% | 70.4 |
| Other EU | 57.0 | 36.6% | 36.6 |
| Rest of the world | 9.8 | 6.3% | 7.7 |
| Group | 155.8 | 100.0% | 117.9 |
| END OF PERIOD | AVERAGE PERIOD | |||||
|---|---|---|---|---|---|---|
| Full-time equivalents of employees (FTE) | 31.03.15 | 31.03.14 | CHANGE | 31.03.15 | 31.03.14 | CHANGE |
| Austria | 570 | 545 | 25 | 572 | 537 | 35 |
| Germany | 2,366 | 2,275 | 91 | 2,326 | 2,272 | 54 |
| Other EU | 1,186 | 522 | 664 | 1,182 | 527 | 655 |
| Rest of the world | 165 | 161 | 4 | 164 | 164 | 0 |
| Group | 4,287 | 3,503 | 784 | 4,244 | 3,500 | 744 |
The number of Group employees (incl. temporary staff) increased by 784 employees at the end of the first quarter of 2015 compared to previous year. The integration of the two Dutch plants at the beginning of December 2014 increased the number of Group employees by 651 persons. Furthermore, the number of employees increased through the acquisition of WIN Coatings GmbH (Germany) in February 2015 by an additional 56 persons. The staff ratio decreased by 0.5 percentage points to 32.6% compared to the previous year.
| in EUR mill. | Q1 2015 | Q1 2014 | CHANGE |
|---|---|---|---|
| Capital expenditures | 100.5 | 4.8 | N/A |
The additions to fixed assets amounted to EUR 100.5 million are mainly a result of the acquisition of the property portfolio previously held by Huemer Holding GmbH. The acquisition of WIN Coatings GmbH and the increased investments in production plants, compared to the previous year, contributed to the significant increase in additions to fixed assets.
In the first quarter 2015, capital expenditures amounted to EUR 36.6 million. The difference between capital expenditures and additions to fixed assets amounted to EUR 63.9 million and is due to partly non-cash purchase price. Thereof EUR 57,7 million amounted to the purchase price of the acquisition of the property portfolio.
The financial figures are presented with comparative figures of the last balance sheet date of 31 December 2014 as follows:
| UNIT | 31.03.2015 | 31.12.2014 | |
|---|---|---|---|
| Equity | EUR mill. | 150.4 | 144.3 |
| Equity ratio | % | 32.1% | 34.0% |
| Net working capital | EUR mill. | 61. 0 | 56.2 |
| Net working capital in % of sales | % | 11.5% | 11.4% |
| Net debt (+) /- cash (-) | EUR mill. | 105.9 | 11.8 |
| Net debt (+) /- cash (-) to EBITDA | % | 2.49 | 0.32 |
| Gearing | % | 0.70 | 0.08 |
| Capital Employeed | EUR mill. | 266.2 | 164.7 |
The Group's balance-sheet total increased at the end of the first quarter of 2015 by EUR 45.2 million to EUR 469.2 million. This was mainly due to the increase in fixed assets by around EUR 95.2 million. Most of this (EUR 87.3 million) is attributable to the acquisition of the real estate portfolio previously held by Huemer Holding GmbH. This is offset by a decrease in liquid funds by EUR 59.0 million which were used primarily to pay the purchase price for the real estate portfolio as well as for refinancing.
The equity ratio decreased at the end of the first quarter by 1.9% percentage points to 32.1% against the balance sheet date of 31 December 2014. This was primarily due to the initial consolidation of
Assuming a stable business cycle, the management of the POLYTEC GROUP forecasts a consolidated sales of more than EUR 600 million for the complete fiscal year 2015. As the substantial sales growth underlying these expectations is backed by the full-year consolidation of the acquired two Dutch plants POLYTEC real estate group.
Net financial liabilities rose compared with the balance sheet date of 31 December 2014 by EUR 94.1 million to EUR 105.9 million. The main driver was the financing of the purchase of real estate portfolios. In addition, the acquisition of WIN Coatings GmbH as well as ongoing investments in fixed assets of the POLYTEC GROUP contributed to the significant increase in net financial liabilities.
Net current assets increased by EUR 4.8 million to EUR 61.0 million at the end of the first quarter 2015 compared to 31 December 2014 due to the increase in business volume.
and the noticeable organic growth based on the launch of series production for new products. The earnings figures should improve significantly, despite the restructuring costs in the Composite business unit.
POLYTEC GROUP
CONTACT
Paul Rettenbacher Head of Investor Relations Polytec-Straße 1 | 4063 Hörsching, Österreich T +43 7221 701-292 [email protected] www.polytec-group.com
Source: Wiener Börse AG, price data indexed as per 2 January 2015
| KEY SHARE FIGURES | |
|---|---|
| UNIT | Q1 2015 | CHANGE | Q1 2014 | Q1 2013 | |
|---|---|---|---|---|---|
| Closing price as of last trading day of period (31.03) | EUR | 8.10 | 2.7% | 7.89 | 6.42 |
| Share price high during period | EUR | 8.15 | 0.9% | 8.08 | 7.25 |
| Share price low during period | EUR | 6.20 | -8.8% | 6.80 | 6.15 |
| Market capitalization as of last day of period (31.03.) | EUR mill. | 180.9 | 2.7% | 176.2 | 143.4 |
| Earing per share | EUR | 0.26 | 100.0% | 0.13 | 0.13 |
| UNIT | Q1 2015 | Structure Q1 2015 |
Q1 2014 | Q1 2013 | |
| Number of shares issued | Piece | 22,329,585 | 100.0% | 22,329,585 | 22,329,585 |
| Number of shares outstanding | Piece | 21,995,544 | 98.5% | 22,019,044 | 22,071,544 |
| Treasury shares | Piece | 334,041 | 1.5% | 310,541 | 258,041 |
The POLYTEC share (ISIN: AT0000A00XX9) started with a price of EUR 6.25 in the new stock exchange and fiscal year 2015 and closed at a price of EUR 8.10 on 31 March 2015. On the last trading day of the 1st quarter of 2015, the market capitalization was EUR 180.9 million. The POLYTEC share recorded a significant increase of about 30% in the first three months of fiscal year 2015. Therefore, the POLYTEC share achieved a remarkable eighth place in the performance rating of 38 Prime Securities. Throughout the entire period, the shares consistently performed higher than the ATX Prime Index, which rose by 14.6%.
In the 1st quarter of 2015, POLYTEC shares achieved a money turnover of approximately EUR 16.4 million, or a share turnover of 2.2 million units at the Vienna Stock Exchange. During the 62 trading days an average of 35,994 POLYTEC shares were traded per day, in the previous year: 52,765 pieces, based on double counting.
In the 12th Annual General Meeting of POLYTEC HOLDING AG on 16 May 2012, the Management Board was authorized to implement a share buyback program. On this basis, in the period of 14 August 2012 until and including 14 October 2014, the Company acquired a total of 334,041 shares of POLYTEC HOLDING AG. This corresponds to a share
of approximately 1.5% of the share capital. In the 14th Annual General Meeting of POLYTEC HOLDING AG of 14 May 2014, the Management Board was authorized to continue the share buyback program. The Executive Board did not acquire or sell any further shares in the period between 15 October 2014 to 30 April 2015 (deadline of this report).
As of 31 March 2015, POLYTEC Holding AG's share capital remained unchanged at EUR 22.3 million and was divided into 22,329,585 bearer shares with a nominal value of EUR 1.00 each. During the first quarter 2015, POLYTEC HOLDING AG did not receive any notifications from shareholders of voting rights pursuant to § 91 of the Austrian Stock Exchange Act. Consequently, except for a slight increase in treasury stock from 1.4% to 1.5%, the shareholder structure remained virtually unaltered as compared to the preceding year and as at December 31, 2014 presented the following picture:
The coverage of the POLYTEC GROUP by national and international investment banks is an important element in its comprehensive investor relations activities and plays a significant role in the visibility of the POLYTEC shares within the investor community. In January, March and April 2015, POLYTEC organized road shows with some European financial
institutions and was invited to participate in a investor conference to present the results of 2014 financial year. The following financial institutions publish reports on POLYTEC HOLDING AG. Up to the editorial deadline of this report, both of the following investment banks recommended the POLYTEC share as a "BUY":
| INSTITUT | RECOMMENDATION | LATEST PRICE TARGET |
|---|---|---|
| ERSTE Group Bank Research | BUY | EUR 9.50 |
| Raiffeisen CENTROBANK Research | BUY | EUR 9.00 |
On 11 April 2015 POLYTEC HOLDING AG has invited the shareholders to the 15th Ordinary Annual General Meeting of POLYTEC HOLDING AG to be held on Wednesday, 13 May 2015 at 10 am, at the company location Polytec-Strasse 1, A-4063 Hörsching. The Board of Directors and the Supervisory Board of POLYTEC HOLDING AG will propose to the Annual
General Meeting for the 2014 financial year to distribute a dividend of EUR 0.25 per share. The invitation and further information regarding shareholders' rights are available from the company website listed in the company register at www.polytec-group.com under Investor Relations, Annual General Meeting.
| ISIN | AT0000A00XX9 |
|---|---|
| Total number of shares issued | 22,329,585 |
| Listing on the Vienna Stock Exchange | Prime Market |
| Indices | ATX Prime, ATX CPS, WBI |
| Share also traded in | Berlin, Frankfurt, London, München, Stuttgart, Tradegate |
| Ticker symbol | Wiener Börse: PYT; Bloomberg: PYT.AV; Reuters: POLV.VI |
| March 26, 2015 | Thursday | Publication of the financial statements and annual report for 2014 |
|---|---|---|
| May 6, 2015 | Wednesday | Publication of the interim report for Q1 2015 |
| May 13, 2015 | Wednesday | 15th Annual General Meeting for the 2014 financial year, Hörsching |
| May 18, 2015 | Monday | Ex-dividend day |
| May 22, 2015 | Friday | Dividend payment day |
| August 5, 2015 | Wednesday | Publication of the interim report for HY1 2015 |
| November 4, 2015 | Wednesday | Publication of the interim report for Q3 2015 |
POLYTEC GROUP 12
POLYTEC GROUP
| in TEUR | Q1 | |
|---|---|---|
| 2015 | 2014 | |
| Sales | 155,751 | 117,909 |
| Other operating income | 1,296 | 2,057 |
| Changes in inventory of finished and unfinished goods | 1,401 | 638 |
| Own work capitalised | 601 | 601 |
| Expenses for materials and services received | -75,235 | -59,172 |
| Personnel expenses | -50,730 | -39,058 |
| Other operating expenses | -18,855 | -14,758 |
| Earnings before interest, taxes, depreciation and amortisation (EBITDA) | 14,228 | 8,218 |
| Depreciation | -5,467 | -3,907 |
| Earnings before interest, taxes, depreciation and amorisation of goodwill (EBITA) | 8,761 | 4,311 |
| Amorisation of goodwill | 0 | 0 |
| Earnings before interest and taxes (EBIT) | 8,761 | 4,311 |
| Financial expenses | -904 | -256 |
| Financial result | -904 | -256 |
| Earnings before tax | 7,857 | 4,055 |
| Taxes on income | -1,993 | -901 |
| Profit after tax | 5,864 | 3,155 |
| Thereof result of non controlling interests | -170 | -190 |
| Thereof result of the parent company | 5,695 | 2,965 |
| 01.01. - 31.03.2015 (in TEUR) | GROUP | NON CONTROLLING INTERESTS |
TOTAL |
|---|---|---|---|
| Profit after tax | 5,695 | 170 | 5,864 |
| Currency translation | 235 | 0 | 235 |
| Total comprehensive income | 5,929 | 170 | 6,099 |
Earnings per share 0.26 0.13
| 01.01. - 31.03.2014 (in TEUR) | GROUP | NON CONTROLLING INTERESTS |
TOTAL |
|---|---|---|---|
| Profit after tax | 2,965 | 190 | 3,155 |
| Currency translation | 44 | 0 | 44 |
| Total comprehensive income | 3,009 | 190 | 3,198 |
| Assets (in TEUR) | 31.03.2015 | 31.12.2014 |
|---|---|---|
| Non current assets: | ||
| Intangible assets | 1,451 | 1,431 |
| Goodwill | 19,180 | 19,180 |
| Tangible assets | 195,871 | 100,720 |
| Investments in affiliated companies | 600 | 100 |
| Investments in associated companies | 31 | 31 |
| Other finacial assets | 13 | 598 |
| Trade accounts receivable and other receivables and assets | 2,229 | 2,338 |
| Interest bearing receivables | 762 | 756 |
| Deferred tax assets | 17,171 | 17,434 |
| 237,309 | 142,588 |
| Current assets: | ||
|---|---|---|
| Inventories | 55,892 | 52,708 |
| Trade accounts receivable and other receivables and assets | 80,514 | 69,587 |
| Receivables from construction contracts | 29,728 | 34,609 |
| Interest bearing receivables | 12,775 | 12,564 |
| Cash and cash equivalents | 52,959 | 111,951 |
| 231,868 | 281,418 | |
| 469,176 | 424,006 |
| Liabilities (in TEUR) | 31.03.2015 | 31.12.2014 |
|---|---|---|
| Shareholders equity: | ||
| Share capital | 22,330 | 22,330 |
| Capital reserves | 37,563 | 37,563 |
| Treasury shares | -1,855 | -1,855 |
| Non controlling interests | 5,690 | 5,520 |
| Retained earnings | 91,692 | 85,998 |
| Other earnings | -5,027 | -5,262 |
| 150,393 | 144,294 |
| Long-term liabilities: | ||
|---|---|---|
| Interest-bearing liabilities | 147,148 | 121,814 |
| Provision for deferred taxes | 1,124 | 417 |
| Long-term provisions for personnel | 26,627 | 26,335 |
| Other long-term liabilities | 13,525 | 15,149 |
| 188,423 | 163,715 |
| Short-term liabilities: | ||
|---|---|---|
| Trade accounts payable | 42,870 | 47,743 |
| Liabilities from construction contracts | 4,598 | 5,540 |
| Short-term interest-bearing liabilities | 12,748 | 10,528 |
| Short-term portion of long-term loans | 12,500 | 4,749 |
| Liabilities on income taxes | 1,981 | 1,216 |
| Short-term provisions | 32,483 | 26,296 |
| Other short-term liabilities | 23,180 | 19,924 |
| 130,360 | 115,996 | |
| 469,176 | 424,006 |
| Q1 | |||
|---|---|---|---|
| in TEUR | 2015 | 2014 | |
| Earnings before tax | 7,857 | 4,055 | |
| - | Income taxes | -774 | -462 |
| +(-) | Depreciation (appreciation) of fixed assets | 5,467 | 3,907 |
| +(-) | Other non-cash expenses/ income | -42 | -3 |
| = | Consolidated financial Cash flow | 12,508 | 7,497 |
| +(-) | Changes in net working capital | -12,384 | -11,084 |
| = | Cash flow from operating activities | 124 | -3,587 |
| +(-) | Cash flow from investing activities | -36,409 | -3,237 |
| +(-) | Cash flow from financing activities | -22,662 | 4,963 |
| = | Changes in cash and cash equivalents | -58,946 | -1,861 |
| +(-) | Effect of currency translation rate | -46 | 7 |
| + | Opening balance of cash and cash equivalents | 111,951 | 34,174 |
| = | Closing balance of cash and cash equivalents | 52,959 | 32,319 |
| in TEUR | Share capital | Capital reserves |
Treasury shares |
Reteined earnings |
Other earnings |
Equity attributable to Shareholders of the parent |
Non controlling interests |
Total |
|---|---|---|---|---|---|---|---|---|
| Balance as of January 1, 2015 | 22,330 | 37,563 | -1,855 | 85,998 | -5,262 | 138,774 | 5,520 | 144,294 |
| Earnings after tax according to profit and loss statement |
0 | 0 | 0 | 5,695 | 0 | 5,695 | 170 | 5,864 |
| Earnings after tax | 0 | 0 | 0 | 0 | 235 | 235 | 0 | 235 |
| Balance as of March 31, 2015 | 22,330 | 37,563 | -1,855 | 91,692 | -5,027 | 144,703 | 5,690 | 150,393 |
| in TEUR | Share capital | Capital reserves |
Treasury shares |
Reteined earnings |
Other earnings |
Equity attributable to Shareholders of the parent |
Non controlling interests |
Total |
|---|---|---|---|---|---|---|---|---|
| Balance as of January 1, 2014 | 22,330 | 37,563 | -1,709 | 77,943 | -4,506 | 131,622 | 5,528 | 137,150 |
| Earnings after tax according to profit and loss statement |
0 | 0 | 0 | 2,965 | 0 | 2,965 | 190 | 3,155 |
| Earnings after tax | 0 | 0 | 0 | 0 | 44 | 44 | 0 | 44 |
| Balance as of March 31, 2014 | 22,330 | 37,563 | -1,709 | 80,908 | -4,462 | 134,630 | 5,718 | 140,348 |
| 01.01. - 31.03 | Plastics processing | Others | Transition | Group | ||||
|---|---|---|---|---|---|---|---|---|
| in TEUR | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 |
| External sales | 153,331 | 115,611 | 2,420 | 2,298 | 0 | 0 | 155,751 | 117,909 |
| Intra group sales | 82 | 29 | 3,010 | 2,843 | -3,091 | -2,871 | 0 | 0 |
| Total sales | 153,413 | 115,639 | 5,429 | 5,141 | -3,091 | -2,871 | 155,751 | 117,909 |
| Depreciation | -5,322 | -3,804 | -144 | -103 | 0 | 0 | -5,467 | -3,907 |
| thereof extraordinary | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating income | 7,860 | 3,531 | 902 | 780 | 0 | -1 | 8,761 | 4,311 |
POLYTEC HOLDING AG (listed in the Commercial Registry of the City of Linz under the number FN 197646 g) is an Austrian holding
This interim report as of March 31, 2015 was compiled pursuant to the legal provisions of International Financial Reporting Standards (IFRS), and more specifically, in conformity with IAS 34 (interim reports). The same accounting and evaluation methods adopted on December 31, 2014 were applied to this report. This
The consolidated financial statement includes all major Austrian and foreign companies, where POLYTEC HOLDING AG directly or company, which together with its subsidiaries is mainly operating in the automotive and plastics industry.
interim report does not include all information and data contained in the consolidated financial statements as of December 31, 2014 of POLYTEC HOLDING AG. Please refer to the consolidated financial statements for more information.
indirectly holds a majority of voting rights. The scope of consolidation changed from 1st January 2015 to 31 March 2015 as follows:
| Scope of consolidation | Full consolidation |
|---|---|
| As of 31 December 2014 | 29 |
| Access through corporate acquisition | 1 |
| As of 31 March 2015 | 30 |
| Of which foreign enterprises | 23 |
The agreement to acquire all shares of POLYTEC Immobilien Holding GmbH, Hörsching was signed with Huemer Holding GmbH, Hörsching on 2 March 2015.
The POLYTEC Immobilien Holding GmbH is a real estate shareholding company with subsidiaries in Germany and abroad. For historical reasons, these subsidiaries own exclusively operational property essential for POLYTEC GROUP in twelve different locations in Germany, Austria, Belgium and Slovakia. In addition, the POLYTEC Immobilien Holding GmbH founded a Turkish company in 2014 with the purpose of acquiring a real estate property for the POLYTEC site in Turkey.
The management of POLYTEC HOLDING AG expects financial as well as strategic benefits from the acquisition of the real estate portfolio previously held by Huemer Holding GmbH. In addition to the attractive purchase price at the lower end of a value range determined in the course of the purchase process, very positive effects on the earnings situation of the POLYTEC GROUP can be achieved at the same time. The acquisition will have a positive impact of around 7.9 million p. a. on EBITDA. The positive impact on EBIT is estimated at around EUR 5.0 million p. a. from today's perspective. It must also be noted that these positive contributions to earnings will further increase moving forward, since rental payments are subject to annual indexation. Based on the value of the real estate portfolio, a return on capital employed of approximately 9% is produced. Given current very favoura-
All shares in WIN Coatings GmbH, Altenstadt, Germany as well as the fixed assets needed for the business used by the company along with the business property were acquired from Nessmayr Holding GmbH, Altenstadt, Germany, by means of a company acquisition contract dated February 23, 2015. The total purchase price amounted to TEUR 2,600. This takeover serves to consolidate the group's position in the European market through the acquisition of companies, which perfectly complement the POLYTEC GROUP's technology portfolio. The company mentioned above will optimally complement the industrial coatings division moving forward. Up until now, it has primarily served as an external, extended workbench for the POLYTEC site in Weiden. Besides, this acquisition will further increase the degree of vertical integration of the industrial coatings process ble interest rates, the option of increasing the promissory note loan above the originally planned level was exploited. As a result, liquid resources were available, which could be put to optimal use through this takeover. At the same time, the acquisition of the real estate portfolio will also result in strategic benefits for the POLYTEC GROUP. The takeover and its impact on the earnings situation will improve the KPIs of relevance to potential providers of equity and loan capital and consequently the group's position on the financial market as well as the financing of future growth.
The acquired property portfolio is a group of assets (collection of assets). There is no business operation within the meaning of IFRS 3, as the properties will be used almost exclusively by companies of the POLYTEC GROUP, there is no active management and marketing of properties with third parties and hardly any external revenues are generated.
The acquired real estate portfolio as well as any other related assets and liabilities were recognized for the first time in the consolidated financial statements of POLYTEC GROUP in the first quarter of 2015.
The cash purchase price amounted to TEUR 29,595. The purchase price share attributable to the real estate portfolio amounted to TEUR 87,312. The remaining purchase price portion is attributed to other assets and liabilities, and includes the interest-bearing liabilities of TEUR 57,545.
by adding an important process step such as priming coating, while at the same time eliminating a critical operating interface. WIN Coatings GmbH generated total sales of around EUR 3.9 million in the 2014 financial year. Since approximately 70% of this figure was generated with companies of the POLYTEC GROUP, the consolidated sales of the POLYTEC GROUP will only increase very slightly. Due to the proximity of the acquisition to the balance sheet date, the purchase price allocation is based on preliminary figures. The final evaluation of the purchase price allocation will be completed within twelve months from the acquisition date, as soon as all the bases for assessment of the fair values have been analysed in detail. The purchase price allocation estimated based on the fair values at the acquisition date was asafollows:
| in TEUR | 2015 |
|---|---|
| Purchase price paid in cash | 2,600 |
| Net assets | 2,642 |
| Negative goodwill (Bad will) | 42 |
The acquired assets and liabilities were recognized at the acquisition date with the following fair values:
| in TEUR | Fair value at the date of acquisition |
|---|---|
| Non current assets | |
| Property, plant and equipment | 3,940 |
| 3,940 | |
| Current assets | |
| Inventories | 151 |
| Trade and other receivables | 271 |
| Cash in hand and current financial resources | 36 |
| 459 | |
| Non-current assets | |
| Deferred tax obligations | 24 |
| Interest-bearing liabilities | 0 |
| 24 | |
| Current liabilities | |
| Trade payables | 260 |
| Interest-bearing liabilities | 0 |
| Current provisions | 1,318 |
| Other current liabilities | 156 |
| 1,734 | |
| Net assets | 2,642 |
The remaining negative difference was recognized as having a positive impact on results. The fair value of trade and other receivables amounted to TEUR 271. The gross amount of receivables also amounts to TEUR 271. None of the trade and other receivables was impaired and all receivables agreed by contract are recoverable.
The net cash flow from the acquisition breaks down as follows:
| in TEUR | 2015 |
|---|---|
| Cash flow from investing activities | |
| Purchase price settled in cash | -2,600 |
| Cash in hand and current financial resources | 36 |
| Net cash flow from the acquisition | 2,564 |
The acquired business contributed to revenues of the Group since the initial consolidation of revenues in the amount of TEUR 52. The contribution to earnings after tax for the same period amounted to TEUR 24. If the acquired companies were to be consolidated on 1 January 2015, the sales of the Group would have been higher by TEUR 111 and the earnings after taxes by TEUR 77.
The Board of Directors and the Supervisory Board of POLYTEC HOLDING AG will propose to the 15th Annual General
With regard to business transactions with affiliated companies and persons, reference is made to the explanatory notes in connection with the acquisition of all shares of POLYTEC Immobilien Holding GmbH, Hörsching. There were no other significant changes compared
The quarterly reporting of POLYTEC GROUP's sales throughout one financial year strictly correlates to the car manufacturing operations of the Group's customers. For this reason, quarters in which customers normally close for works holidays generally have lower rates of sales
No significant events have occurred after 31 March 2015.
Meeting for the 2014 financial year to distribute a dividend of EUR 0.25 per share.
to 31 December 2014, hence the reference to the explanatory notes to the consolidated financial statements of POLYTEC HOLDING AG for 31 December 2014.
turnover than quarters without such effects. In addition to this, sales from one quarter can also be influenced by the billing of large tool or development projects.
The Board of Directors declares that the present condensed interim report and the group management report for the first quarter 2015, which were prepared in accordance with the applying International Financial Reporting Standards (IFRS) provide a true and fair view of the asset, financial and earnings situation of POLYTEC HOLDING AG. This interim report has not been subject to an audit or a review.
Hörsching, May 6, 2015
The Board of Directors of POLYTEC HOLDING AG
Friedrich Huemer Chairman of the Board of Directors – CEO
Responsibilities: M&A, Investment Management, Strategy, Corporate Communications, HR, Law
Markus Huemer Vice Chairman of the Board of Directors – COO Responsibilities: Business Development, Plants, Production, Procurement
Alice Godderidge Member of the Board of Directors – CSO Responsibilities: Sales and Engineering (Sales, Marketing, Development)
Peter Haidenek Member of the Board of Directors – CFO Responsibilities: Finance, IT, Controlling, Accounting, Investor Relations, Internal Audit
Publisher: POLYTEC HOLDING AG, Investor Relations Polytec-Strasse 1, A-4063 Hörsching FN 197676 g T +43 7221 701 292 [email protected] www.polytec-group.com Fotos: © POLYTEC HOLDING AG Typesetting: David Weinberger, Linz
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