Quarterly Report • Nov 18, 2021
Quarterly Report
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INTERIM REPORT Q3 2021
| in € million | 9M 2021 | 9M 2020 | Change | Q3 2021 | Q3 2020 | Change |
|---|---|---|---|---|---|---|
| Consolidated sales | 782.6 | 563.6 | 38.8% | 251.9 | 196.9 | 27.9% |
| thereof sales Europe | 459.9 | 343.8 | 33.8% | 146.3 | 116.9 | 25.1% |
| thereof sales North America | 187.9 | 123.0 | 52.8% | 67.4 | 41.5 | 62.5% |
| thereof sales Asia, Pacific and Africa (APA) | 134.8 | 96.8 | 39.2% | 38.2 | 38.5 | –1.0% |
| Adjusted EBITDA 1 | 104.9 | 67.3 | 55.8% | 31.5 | 27.3 | 15.3% |
| Adjusted EBITDA margin (%) | 13.4% | 11.9% | 1.5%-points | 12.5% | 13.9% | –1.4%-points |
| Adjusted EBIT 1 | 84.0 | 46.1 | 82.1% | 24.3 | 20.3 | 19.6% |
| Adjusted EBIT margin (%) | 10.7% | 8.2% | 2.5%-points | 9.6% | 10.3% | –0.7%-points |
| Equity ratio (%) | 30.8% | 27.1% | 3.7%-points | |||
| Net debt 2 | 206.1 | 241.0 | –14.5% | |||
| Leverage3, 9 | 1.47x | 2.65x | –44.6% | |||
| Capex 4 | 12.1 | 12.2 | –0.5% | 4.6 | 4.6 | –0.3% |
| ROCE (%) 5, 9 | 17.6% | 9.6% | 8%-points | |||
| Cash conversion rate (%) 6 | 88.4% | 81.9% | 6.5%-points | 85.3% | 83.1% | 2.2%-points |
| Profit / loss after taxes | 34.0 | 5.3 | 543.6% | 10.0 | 4.6 | 120.2% |
| Earnings per share (in €) | 2.28 | 0.35 | 551.4% | 0.67 | 0.30 | 123.3% |
| Adjusted profit / loss after taxes 7 | 55.4 | 27.4 | 102.2% | 15.3 | 11.8 | 29.1% |
| Adjusted earnings per share (in €) 8 | 3.72 | 1.84 | 102.2% | 1.03 | 0.80 | 28.8% |
1 Adjustments for PPA effects and exceptionals
² Net debt = Interest-bearing capital (excl. accrued refinancing costs) – liquid assets
³ Leverage = Net debt/LTM adj. EBITDA
4 Gross presentation (capex; without taking into account divestments)
5 LTM adj. EBIT / interest bearing capital employed; interest bearing capital: equity + financial liabilities (except for refinancing costs) – liquid assets + provisions for pensions
6 (Adj. EBITDA – Capex / adj. EBITDA)
Regional sales by destination
Regional sales by origin
APA 17% (17%)
JOST is a leading global producer and supplier of safetycritical systems for the commercial vehicle industry under the JOST, ROCKINGER, TRIDEC and Quicke brands.
JOST's global leadership position is driven by the strength of its brands, its long-standing client relationships serviced through its global distribution network, and its efficient and asset-light business model. With sales and production facilities in 25 countries across five continents, JOST has direct access to all major truck, trailer and agricultural tractor manufacturers as well as relevant end customers in the commercial vehicle industry.
JOST currently employs more than 3,000 staff worldwide and has been listed on the Frankfurt Stock Exchange since 20 July 2017.
for the first nine months of 2021
The third quarter of 2021 saw JOST continuing the growth of previous quarters. Consolidated sales increased by 27.9% compared with the third quarter of 2020, rising to €251.8m (Q3 2020: €196.9m). Once again, the highest growth was recorded in North America, where sales rose by 62.5% to €67.4m compared with the same quarter of the previous year (Q3 2020: €41.5m). Europe also made a key contribution to the group's performance by posting a 25.1% increase in sales to €146.3m (Q3 2020: €116.9m). In Asia-Pacific-Africa (APA), JOST made up for the anticipated market slump in China by delivering a very strong performance in the Pacific region, as well as in India and South Africa, which kept sales stable at €38.1m (Q3 2020: €38.5m). Consolidated sales improved by 38.8% to €782.5m in the first nine months of 2021 (9M 2020: €563.6m).
The rising trend in raw material prices and logistics costs around the world had an impact on operating profit, however. By raising its prices, JOST was able to pass on part of the cost increases to customers. Overall, the group lifted its adjusted operating profit by 19.6% to €24.3m in the third quarter of 2021 (Q3 2020: €20.3m). The adjusted EBIT margin came to 9.6% (Q3 2020: 10.3%), due in particular to higher material prices and a change in the regional mix in sales. Adjusted EBIT increased by 82.1% to €84.0m in the first nine months of 2021 (9M 2020: €46.1m). In the same period, the adjusted EBIT margin improved to 10.7% (9M 2020: 8.2%).
All told, JOST lifted its adjusted earnings after taxes in the third quarter of 2021 to €15.3m (Q3 2020: €11.8m) and increased earnings per share to €1.03 (Q3 2020: €0.80). In the first nine months of 2021, adjusted earnings after taxes rose to €55.4m (9M 2020: €27.4m) and adjusted earnings per share to €3.72 (9M 2020: €1.84).
JOST again steadily improved its leverage ratio, which stood at 1.47x at the end of the third quarter of 2021 (Q3 2020: 2.65x).
The global economic recovery is losing some momentum. The global economy continues to recover, though the disruptions in the supply chain, rising inflation, and further outbreaks of the pandemic slowed the pace of recovery during the third quarter of 2021. The International Monetary Fund (IMF) estimates that the extreme strain on supply chains at present will not ease until some time in 2022. In its latest study published in October 2021, the IMF projects that the global economy will grow by 5.9% year-over-year in 2021 (2020: –3.2%), which is –0.1 percentage points lower than in its July 2021 forecast.
The world trade volume in 2021 is still expected to grow by 9.7% yearover-year (2020: –8.3%). In Europe, the IMF estimates that gross domestic product (GDP) will rise by 5.0% year-over-year (2020: –6.3%). The IMF expects the US economy to grow by 6.0% compared with the previous year (2020: –3.4%).
The institution has revised its expectations for the Asian economies down slightly from its July 2021 forecast. Overall, the IMF nevertheless expects Asia's emerging market and developing economies to boost output by as much as 7.2%, mainly driven by China and India (2020: –0.8%). Specifically, the IMF forecasts Chinese economic output to increase by 8.0% (2020: 2.3%), while the Indian economy is expected to grow by 9.5% year-over-year (2020: –7.3%).
The forecasts point to an even quicker recovery in Latin America, where the economy is projected to expand by 6.3% year-over-year in 2021 (2020: –7.0%). As recently as July 2021, the IMF had expected growth of only 5.8%.
Truck market disrupted by supply bottlenecks. Forecasting institute LMC Automotive (LMC) expects global heavy truck production to fall by –2.9% year-over-year in the 2021 fiscal year. This drop is mainly attributable to the Chinese truck market. Excluding China, the global truck market is expected to grow by 24.9% year-over-year in 2021. LMC had projected worldwide growth (excluding China) of 32.1% in July 2021, but the semiconductor shortage and other supply chain bottlenecks curtailed truck production worldwide even though demand remained robust.
In its latest forecast from October 2021, LMC Automotive expects European truck production to rise by 15.0% compared with 2020; here, too, LMC revised its previous estimates from July 2021 (21.8%) downward on account of the supply bottlenecks. Market research firm FTR Consulting, which specializes in North America, likewise trimmed its expectations for the North American market in its most recent study published in October 2021. FTR currently estimates that in 2021 truck production in North America will rise by 24.6% year-over-year; in July 2021, it had been expected to increase by 44.9%.
In Asia-Pacific-Africa (APA), LMC expects truck production to fall by –12.0% year-over-year. This is due to China, as the Chinese truck market bucked the global market trend and shrugged off the coronavirus pandemic to record strong growth in 2020, leading fleets to cut down on capital expenditure starting in the second half of 2021. This effect was exacerbated by the fact that existing investment incentives for purchasing new lower-emission trucks expired on July 1, 2021. As a result, the truck market in China is expected to contract by –16.3% in 2021 compared to 2020. Excluding China, LMC nevertheless expects the truck market in the other APA countries to expand by 31.6% year-over-year. According to LMC, the truck market in South America is likely to grow by 63.2% compared to 2020 in the 2021 fiscal year.
Trailer market set for continued growth. Following the sharp decline in the trailer market in 2019 and 2020, forecasting institute Clear Consulting anticipates global growth of 19.5% year-over-year in fiscal year 2021. As trailer production is not contingent on the availability of semiconductors, the expectation regarding market growth remains strong.
For Europe, Clear Consulting expects trailer production to increase by more than 20% compared with last year. In North America, market research firm FTR, which specializes in this region, projects that trailer production will rise by 26.6% versus 2020. Market experts predict that the trailer market in Asia-Pacific-Africa will remain stable compared with 2020. For Latin America, Clear Consulting forecasts a growth of 7.3% compared to 2020.
Strong demand for agricultural tractors. Demand for agricultural tractors and thus for front loaders remains very strong. Rising prices for agricultural products reinforce farmers' already considerable willingness to invest, in both Europe and North America. Market experts currently estimate that in 2021 the European tractor market will grow by around 10% year-over-year. The North American tractor market is expected to expand by around 20% in 2021.
| in € thousands | 9M 2021 * | 9M 2020 ** | Change |
|---|---|---|---|
| Europe | 459,865 | 343,775 | +33.8% |
| North America | 187,870 | 122,981 | +52.8% |
| Asia-Pacific-Africa (APA) | 134,783 | 96,845 | +39.2% |
| Total | 782,518 | 563,601 | +38.8% |
| of which transport | 592,057 | 436,015 | +35.8% |
| of which agriculture | 190,461 | 127,586 | +49.2% |
* Sales revenues in the European transport sector were adjusted by €2,326 thousand resulting from the discontinued operations
Jost UK Ltd., which was disposed of in the second quarter of 2021. For further information, please refer to notes 4 and 13.
** The Ålö Group was only included in the group's basis of consolidation effective February 1, 2020.
Accordingly, year-over-year comparability of sales in 2021, especially in agriculture, is somewhat limited.
| in € thousands | Q3 2021 | Q3 2020 | Change |
|---|---|---|---|
| Europe | 146,292 | 116,922 | +25.1% |
| North America | 67,402 | 41,475 | +62.5% |
| Asia-Pacific-Africa (APA) | 38,134 | 38,530 | –1.0% |
| Total | 251,828 | 196,927 | +27.9% |
| of which transport | 189,638 | 151,137 | +25.5% |
| of which agriculture | 62,190 | 45,790 | +35.8% |
The transport and agriculture markets continued to recover during the third quarter of 2021, though the fast pace of growth seen in the preceding months has slowed. In the third quarter of 2021, JOST lifted its global sales by 27.9% to €251.8m compared with the prior-year period (Q3 2020: €196.9m), performing well in the market. Consolidated sales improved by 38.8% to €782.5m in the first nine months of 2021 (9M 2020: €563.6m).
JOST posted its strongest growth in the third quarter of 2021 in the agricultural sector. Sales of agricultural components grew by 35.8% in that period to €62.2m (Q3 2020: €45.8m). JOST's sales in the transport sector increased by 25.5% in the third quarter of 2021 to €189.6m compared with the previous year (Q3 2020: €151.1m). Here, however, China's contracting truck market had a slightly negative effect on performance.
JOST's European sales rose by 25.1% in the third quarter of 2021 to €146.3m (Q3 2020: €116.9m). Demand for new capital assets such as trucks, trailers and agricultural front loaders remains very high, but supply bottlenecks at customers, especially in the truck sector, prompted key OEM customers to reduce planned call-offs at short notice. Thanks to our high flexibility, we were able to adjust production in many cases and deliver the products to other customers. European sales improved by €33.8% to €459.9m in the first nine months of 2021 (9M 2020: €343.8m).
In the third quarter of 2021, JOST once again recorded its strongest growth in North America, where we benefited from sustained strong demand in the region and lifted sales by as much as 62.5% to €67.4m (Q3 2020: €41.5m). In the first nine months of 2021 sales increased by 52.8% to €187.9m (9M 2020: €123.0m).
The outstanding performance of key markets such as Australia, South Africa and India enabled JOST to essentially make up for the anticipated sales slump in the Chinese market in the third quarter of 2021. The decline in the Chinese truck market was attributable to a new emissions standard for trucks that entered into force on July 1, 2021, giving rise to considerable pull-forward effects beforehand. Nonetheless, JOST kept sales in the Asia-Pacific-Africa (APA) region stable on the prior-year quarter at €38.1m (Q3 2020: €38.5m), largely thanks to strong demand in other countries in the region. In the first nine months of 2021 sales in APA rose by 39.2% to €134.8m (9M 2020: €96.8m).
| in € thousands | 9M 2021 | 9M 2020 | Change |
|---|---|---|---|
| Sales revenues * | 784,844 | 563,601 | 39.3% |
| Cost of sales | –574,142 | –411,685 | |
| Gross profit | 210,702 | 151,916 | 38.7% |
| Gross margin | 26.8% | 27.0% | |
| Operating expenses / income | –165,085 | –140,200 | |
| Operating profit (EBIT) | 45,617 | 11,716 | 289.4% |
| Net finance result | –4,876 | –7,226 | |
| Earnings before taxes | 40,741 | 4,490 | 807.4% |
| Income taxes | –6,760 | 790 | |
| Earnings after taxes | 33,981 | 5,280 | 543.6% |
| Earnings per share (in EUR) | 2.28 | 0.35 | 543.6% |
* The reported sales revenues include sales of €2,326 thousand from the entity Jost UK Ltd., which was sold in the second quarter of 2021.
| in € thousands | Q3 2021 | Q3 2020 | Change |
|---|---|---|---|
| Sales revenues | 251,828 | 196,927 | 27.9% |
| Cost of sales | –183,101 | –137,985 | |
| Gross profit | 68,727 | 58,942 | 16.6% |
| Gross margin | 27.3% | 29.9% | |
| Operating expenses / income | –53,003 | –50,608 | |
| Operating profit (EBIT) | 15,724 | 8,334 | 88.7% |
| Net finance result | –2,431 | –3,379 | |
| Earnings before taxes | 13,293 | 4,955 | 168.3% |
| Income taxes | –3,255 | –397 | |
| Earnings after taxes | 10,038 | 4,558 | 120.2% |
| Earnings per share (in EUR) | 0.67 | 0.30 | 120.2% |
The sharp rise in sales in the third quarter of 2021 of 27.9% year-overyear was attributable to higher sales volumes, but also price increases. We succeeded in passing on part of the increase in material prices to customers, which resulted in a gross margin of 27.3% in the third quarter (Q3 2020: 29.9%). In addition to rising material prices, the regional distribution of the sales generated dampened the gross margin somewhat, because APA's share of total sales was down on the previous year and JOST reports a significantly higher gross margin in APA than in the other regions.
Operating expenses rose at a slightly slower rate than sales in the third quarter of 2021 at just 4.7%, underpinning JOST's lean organizational structure and the group's ability to drive up sales while keeping its selling, development and administrative expenses comparatively stable.
In the third quarter of 2021, earnings before interest and taxes (EBIT) increased by 88.7% to €15.7m (Q3 2020: €8.3m). During the first nine months of the year, EBIT improved to €45.6m (9M 2020: €11.7m). The exceptionally strong increase in the first nine months of 2021 was due in part to the first half of the previous year having been significantly impacted by the adverse effects of the COVID-19 pandemic.
Adjusted for exceptionals, EBIT rose by 19.6% to €24.3m in the third quarter of 2021 (Q3 2020: €20.3m) while the adjusted EBIT margin came to 9.6% (Q3 2020: 10.3%). In the first nine months, adjusted EBIT rose by 82.1% to €84.0m (9M 2020: €46.1m) and the adjusted EBIT margin increased to 10.7% (9M 2020: 8.2%).
The adjustments made in the third quarter of 2021 mainly concerned non-operating or non-cash exceptionals arising from depreciation and amortization in connection with purchase price allocation (D&A and impairment losses from PPA) in the amount of €6.8m (Q3 2020: €7.3m). D&A and impairment losses from PPA rose to €25.6m in the first nine months of 2021 (9M 2020: €21.7m) due to non-recurring impairment losses in connection with the sale of JOST UK Ltd. in the second quarter of 2021. The other effects decreased in the third quarter of 2021 to €1.7m (Q3 2020: €4.6m). Amounting to €17.4m in the first nine months of 2021 (9M 2020: €12.7m), these were largely attributable to non-recurring deconsolidation effects also due to the disposal of JOST UK Ltd., while this item in the previous year had been dominated by non-recurring effects arising from the acquisition of the Ålö Group.
| in € thousands | 9M 2021 | 9M 2020 |
|---|---|---|
| EBIT | 45,617 | 11,716 |
| D & A from PPA | –20,939 | –21,713 |
| Effects from the sale of the disposal group | –13,281 | 0 |
| Other effects | –4,118 | –12,682 |
| Adjusted EBIT | 83,955 | 46,111 |
| Adjusted EBIT margin | 10.7% | 8.2% |
| Depreciation | –18,676 | –18,752 |
| Amortization | –2,252 | –2,457 |
| Adjusted EBITDA | 104,883 | 67,320 |
| Adjusted EBITDA margin | 13.4% | 11.9% |
| in € thousands | Q3 2021 | Q3 2020 |
|---|---|---|
| EBIT | 15,724 | 8,334 |
| D & A from PPA | –6,790 | –7,347 |
| Effects from the sale of the disposal group | 0 | 0 |
| Other effects | –1,744 | –4,601 |
| Adjusted EBIT | 24,258 | 20,282 |
| Adjusted EBIT margin | 9.6% | 10.3% |
| Depreciation | –6,431 | –6,059 |
| Amortization | –793 | –964 |
| Adjusted EBITDA | 31,482 | 27,305 |
| Adjusted EBITDA margin | 12.5% | 13.9% |
The net finance result improved to €–2.4m in the third quarter of 2021 (Q3 2020: €–3.4m). In the first nine months of 2021, the net finance result improved to €–4.9m (9M 2020: €–7.2m), mainly due to unrealized financial income from the measurement of foreign currency loans and derivatives.
Earnings after taxes in the third quarter of 2021 doubled to €10.0m (Q3 2020: €4.6m) and earnings per share rose to €0.67 (Q3 2020: €0.30). In the first nine months of 2021, earnings after taxes rose sharply to €34.0m (9M 2020: €5.3m) and earnings per share improved to €2.28 (9M 2020: €0.35).
Adjusted for exceptionals, earnings after taxes in the third quarter of 2021 increased to €15.3m (Q3 2020: €11.8m) and adjusted rose earnings per share to €1.03 (Q3 2020: €0.80). In the first nine months of 2021, adjusted earnings after taxes doubled to €55.4m (9M 2020: €27.4m) and adjusted earnings per share to €3.72 (9M 2020: €1.84).
| Consolidated | |||||
|---|---|---|---|---|---|
| in € thousands | Europe | North America | Asia, Pacific and Africa | Reconciliation | financial statements |
| Sales revenues * | 728,582 | 189,973 | 221,358 | –357,395 | 782,518** |
| thereof: external sales revenues * | 459,865 | 187,870 | 134,783 | 0 | 782,518 |
| thereof: internal sales revenues* | 268,717 | 2,103 | 86,575 | –357,395 | 0 |
| Adjusted EBIT *** | 41,271 | 16,461 | 23,139 | 3,084 | 83,955 |
| thereof: depreciation and amortization | 12,893 | 3,837 | 4,198 | 0 | 20,928 |
| Adjusted EBIT margin | 9.0% | 8.8% | 17.2% | 10.7% | |
| Adjusted EBITDA *** | 54,164 | 20,298 | 27,337 | 3,084 | 104,883 |
| Adjusted EBITDA margin | 11.8% | 10.8% | 20.3% | 13.4% |
* Sales by destination in the reporting period:
– Europe: €391,070 thousand
– Americas: €206,302 thousand
– Asia-Pacific-Africa: €185,146 thousand
** Sales revenues in the segments show the sales revenues by origin and have been adjusted in the Europe Segment for the sales revenues of JOST UK Ltd. in the amount of €2,326 thousand. For further information, please refer to notes 4 and 13 in the Notes to the Condensed Consolidated Interim Financial Statements
*** The share of profit or loss of investments accounted for using the equity method is not allocated to a segment and is therefore included in the "reconciliation" column in the amount of €3,084 thousand.
| Consolidated | |||||
|---|---|---|---|---|---|
| in € thousands | Europe | North America | Asia, Pacific and Africa | Reconciliation | financial statements |
| Sales revenues * | 546,317 | 132,362 | 152,783 | –267,861 | 563,601** |
| thereof: external sales revenues * | 343,775 | 122,981 | 96,845 | 0 | 563,601 |
| thereof: internal sales revenues* | 202,542 | 9,381 | 55,938 | –267,861 | 0 |
| Adjusted EBIT *** | 22,830 | 7,794 | 13,525 | 1,962 | 46,111 |
| thereof: depreciation and amortization | 13,873 | 3,711 | 3,625 | 0 | 21,209 |
| Adjusted EBIT margin | 6.6% | 6.3% | 14.0% | 8.2% | |
| Adjusted EBITDA *** | 36,703 | 11,505 | 17,150 | 1,962 | 67,320 |
| Adjusted EBITDA margin | 10.7% | 9.4% | 17.7% | 11.9% |
* Sales by destination in the reporting period:
– Europe: €288,946 thousand
– Americas: €133,276 thousand
– Asia-Pacific-Africa: €141,379 thousand
** Sales revenues in the segments show the sales revenues by origin.
*** The share of profit or loss of investments accounted for using the equity method is not allocated to a segment and is therefore included in the "reconciliation" column in the amount of €1,962 thousand.
| Consolidated | |||||
|---|---|---|---|---|---|
| in € thousands | Europe | North America | Asia, Pacific and Africa | Reconciliation | financial statements |
| Sales revenues * | 234,463 | 68,003 | 71,231 | –121,869 | 251,828** |
| thereof: external sales revenues * | 146,292 | 67,402 | 38,134 | 0 | 251,828 |
| thereof: internal sales revenues* | 88,171 | 601 | 33,097 | –121,869 | 0 |
| Adjusted EBIT *** | 10,403 | 6,424 | 6,171 | 1,260 | 24,258 |
| thereof: depreciation and amortization | 4,456 | 1,346 | 1,422 | 0 | 7,224 |
| Adjusted EBIT margin | 7.1% | 9.5% | 16.2% | 9.6% | |
| Adjusted EBITDA *** | 14,859 | 7,770 | 7,593 | 1,260 | 31,482 |
| Adjusted EBITDA margin | 10.2% | 11.5% | 19.9% | 12.5% | |
* Sales by destination in the reporting period:
– Europe: €120,495 thousand
– Americas: €73,475 thousand
– Asia-Pacific-Africa: €57,858 thousand
** Sales revenues in the segments show the sales revenues by origin.
*** The share of profit or loss of investments accounted for using the equity method is not allocated to a segment and is therefore included in the "reconciliation" column in the amount of €1,260 thousand.
| Consolidated | |||||
|---|---|---|---|---|---|
| in € thousands | Europe | North America | Asia, Pacific and Africa | Reconciliation | financial statements |
| Sales revenues * | 181,265 | 44,692 | 62,249 | –91,279 | 196,927** |
| thereof: external sales revenues * | 116,922 | 41,475 | 38,530 | 0 | 196,927 |
| thereof: internal sales revenues* | 64,343 | 3,217 | 23,719 | –91,279 | 0 |
| Adjusted EBIT *** | 9,326 | 2,545 | 7,596 | 815 | 20,282 |
| thereof: depreciation and amortization | 4,875 | 961 | 1,187 | 0 | 7,023 |
| Adjusted EBIT margin | 8.0% | 6.1% | 19.7% | 10.3% | |
| Adjusted EBITDA *** | 14,201 | 3,506 | 8,783 | 815 | 27,305 |
| Adjusted EBITDA margin | 12.1% | 8.5% | 22.8% | 13.9% |
* Sales by destination in the reporting period:
– Europe: €97,354 thousand
– Americas: €44,804 thousand
– Asia-Pacific-Africa: €54,769 thousand
** Sales revenues in the segments show the sales revenues by origin.
*** Adjusted EBIT/ EBITDA includes share of profit or loss of investment accounted for using the equity method that is not allocated to a segment and therefore included in the reconciliation column.
Supply bottlenecks, particularly for semiconductors, forced important OEM customers in Europe to extend their summer breaks unexpectedly and reduce call-offs. Even though JOST was able to sell some of the products to other customers, the production disruptions at short notice led to efficiency losses. Higher steel and logistics costs also had a negative impact on earnings, as the price adjustments agreed with customers in advance were not sufficient to completely offset the further rise in material prices.
Nevertheless, JOST was able to increase adjusted EBIT in Europe by 11.5% year-over-year in the third quarter of 2021 to €10.4m (Q3 2020: €9.3m). The adjusted EBIT margin was 7.1% (Q3 2020: 8.0%). In the first nine months of 2021, adjusted EBIT in Europe increased by 80.8% to €41.3m (9M 2020: €22.8m). This marked improvement year-over-year was partly attributable to the fact that Europe had been hit particularly hard by the negative impact of the COVID-19 pandemic in the first half of 2020. The significantly higher production capacity utilization in the current fiscal year brought about an improvement in the adjusted EBIT margin of 2.4 percentage points to 9.0% (9M 2020: 6.6%).
In North America, JOST significantly increased sales both in transport and agriculture during the third quarter of 2021. JOST benefited from substantially higher production capacity utilization than in the previous year and the related operating leverage of fixed cost degression as well as a strong aftermarket business.
Driven by strong sales increase of 62.5%, JOST succeeded in raising adjusted EBIT in North America by 152.4% to €6.4m in the third quarter of 2021 (Q3 2020: €2.5m) and improving its adjusted EBIT margin by 3.4 percentage points to 9.5% (Q3 2020: 6.1%). In the first nine months of 2021, adjusted EBIT doubled to €16.5m (9M 2020: €7.8m) and the adjusted EBIT margin increased to 8.8% (9M 2020: 6.3%).
The expected decline in the Chinese truck market in the third quarter of 2021 had an adverse effect on the utilization of production capacity at our plant in China, particularly compared with the very strong prior-year quarter. Robust demand in the other countries of the APA region nevertheless enabled JOST to stabilize sales compared with the previous year, even though the sharp rise in shipping costs put additional pressure on operating profit.
Overall, JOST achieved adjusted EBIT in APA of €6.2m in the third quarter of 2021 (Q3 2020: €7.6m) and the adjusted EBIT margin came to 16.2% (Q3 2020: 19.7%). Underpinned by the strong growth in China in the first half of 2021, JOST boosted adjusted EBIT by 71.1% to €23.1m in the first nine months of the year (9M 2020: €13.5m). The adjusted EBIT margin improved by 3.2 percentage points to 17.2% in the first nine months of 2021 (9M 2020: 14.0%).
| Equity and Liabilities | |
|---|---|
| in € thousands | 09/30/2021 | 12/31/2020 | in € thousands | 09/30/2021 | 12/31/2020 |
|---|---|---|---|---|---|
| Noncurrent assets | 514,960 | 546,916 | Equity | 295,610 | 265,235 |
| Current assets | 443,453 | 391,649 | Noncurrent liabilities | 396,334 | 411,941 |
| Current liabilities | 266,469 | 261,389 | |||
| 958,413 | 938,565 | 958,413 | 938,565 |
In the first nine months of the year, JOST Werke AG's equity rose by 11.4% to €295.6m (December 31, 2020: €265.2m). The equity ratio increased to 30.8% as of September 30, 2021 (December 31, 2020: 28.3%).
JOST repaid additional financial liabilities of €9.0m during the third quarter of 2021. In the first nine months of 2021, this amount came to €33.6m.
As of the September 30, 2021 reporting date, noncurrent liabilities decreased to €396.3m (December 31, 2020: €411.9m). At the same time, current liabilities rose to €266.5m (December 31, 2020: €261.4m). This increase is due to both the increase in trade payables as a result of the growing business volume and higher other current liabilities. Conversely, the repayment of interest-bearing loans and borrowings reduced current liabilities.
The amortization of intangible assets arising from purchase price allocations (PPA) and ongoing depreciation of property, plant, and equipment reduced noncurrent assets. The sale of JOST UK Ltd. in the second quarter of 2021 also resulted in a non-recurring impairment loss on intangible assets capitalized as part of the purchase price allocation (PPA) and a disposal of fixed assets. Accordingly, noncurrent assets as of the September 30, 2021 reporting date decreased to €515.0m (December 31, 2020: €546.9m).
| in € thousands | 09/30/2021 | 12/31/2020 | 09/30/2020 |
|---|---|---|---|
| Inventories | 179,393 | 136,339 | 138,124 |
| Trade receivables | 156,586 | 123,947 | 132,858 |
| Trade payables | –139,236 | –127,261 | –107,749 |
| Total | 196,743 | 133,025 | 163,233 |
| Working capital as a | |||
| percentage of sales, LTM | 19.4% | 16.7% | 21.1% |
Inventories in the first nine months of 2021 rose by €43.1m to €179.4m (December 31, 2020: €136.3m) and trade receivables increased by €32.6m to €156.6m (December 31, 2020: €123.9m). This increase was mainly due to seasonal effects as inventories and receivables are generally lower at the end of the year. The strong increase in business volume during the first nine months of the year further reinforced this effect. Trade payables rose analogously by €12.0m to €139.2m (December 31, 2020: €127.3m). Overall, working capital increased by 47.9% to €196.7m in the first nine months of 2021 (December 31, 2020: €133.0m).
Working capital rose by 20.5% to €196.7m year-over-year in the first nine months of 2021 (9M 2020: €163.2m), but at a lower rate than sales growth of 38.8%. Working capital as a percentage of sales therefore improved to 19.4% in the last twelve months (9M 2020: 21.1%).
As of September 30, 2021, net debt decreased to €206.1m (December 31, 2020: €207.6m). The dividend of €14.9m paid in the second quarter of 2021 had a negative impact on net debt. However, JOST was able to keep net debt stable compared to December 31, 2020 due to its positive generation of cash. The sharp increase in adjusted EBITDA during the same period enabled the group to improve its leverage ratio (ratio of net debt to adjusted EBITDA for the last twelve months) significantly to 1.47x (December 31, 2020: 1.997x).
| in € thousands | 9M 2021 | 9M 2020 |
|---|---|---|
| Cash flow from operating activities | 31,329 | 74,098 |
| thereof change in net working capital | –64,851 | 8,014 |
| Cash flow from investing activities | –3,692 | –255,020 |
| of which payments to acquire intangible assets | –3,130 | –3,905 |
| of which payments to acquire property, | ||
| plant, and equipment | –9,005 | –8,305 |
| of which acquisition of subsidiary, | ||
| less acquired cash | 0 | –245,419 |
| of which proceeds from sale of subsidiaries | 7,965 | 0 |
| Cash flow from financing activities | –51,509 | 176,400 |
| Net change in cash and cash equivalents | –23,872 | –4,522 |
| Change in cash and cash equivalents due | ||
| to exchange rate movements | 2,916 | –2,989 |
| Change in cash and cash equivalents | ||
| due to consolidation | –2,293 | 0 |
| Cash and cash equivalents at January 1/July 1 | 108,315 | 104,812 |
| Cash and cash equivalents at September 30 | 85,066 | 97,301 |
| in € thousands | Q3 2021 | Q3 2020 |
|---|---|---|
| Cash flow from operating activities | 22,592 | 36,267 |
| thereof change in net working capital | 5,354 | 13,312 |
| Cash flow from investing activities | –4,337 | –4,324 |
| of which payments to acquire intangible assets | –982 | –1,442 |
| of which payments to acquire property, | ||
| plant, and equipment | –3,634 | –3,196 |
| of which acquisition of subsidiary, | ||
| less acquired cash | 0 | 0 |
| of which proceeds from sale of subsidiaries | 0 | 0 |
| Cash flow from financing activities | –12,555 | –45,836 |
| Net change in cash and cash equivalents | 5,700 | –13,893 |
| Change in cash and cash equivalents due | ||
| to exchange rate movements | 743 | –1,694 |
| Change in cash and cash equivalents | ||
| due to consolidation | 0 | 0 |
| Cash and cash equivalents at January 1/July 1 | 78,623 | 112,888 |
| Cash and cash equivalents at September 30 | 85,066 | 97,301 |
In the third quarter of 2021, cash flow from operating activities decreased as a result of the increase in working capital (in particular inventories), amounting to €+22.6m (Q3 2020: €+36.3m). The increase in working capital year-over-year is mainly attributable to the sharp rise in the business volume.
Cash flow from investing activities amounted to €–4.3m in the third quarter of 2021 (Q3 2020: €–4.3m). Investments in property, plant and equipment rose to €–3.6m (Q3 2020: €–3.2m) while investments in intangible assets fell slightly to €–1.0m (Q3 2020: €–1.4m), resulting in a stable cash flow from investing activities overall compared to the previous year.
Free cash flow (cash flow from operating activities less payment made for the acquisition of property, plant and equipment and intangible assets) stood at €+18.0m (Q3 2020: €+31.6m). The reduction is due to the higher volume of business and the associated increase in working capital.
Cash flow from financing activities amounted to €–12.5m compared with the previous year (Q3 2020: €–45.8m). The reason for this development is that JOST repaid financial liabilities in the amount of €–42.6m in the third quarter of the previous year, while repayments in the third quarter of this year amounted to €–9.0m.
Liquid assets amounted to €85.1m at the end of the third quarter of 2021 (Q3 2020: €97.3m).
The risk and opportunity situation of JOST has not changed significantly since the preparation of our 2020 Annual Report on March 17, 2021. For more details please refer to p. 40 et seq. of that report.
Despite the prevailing uncertainty caused by the current material and logistics bottlenecks and the ongoing coronavirus pandemic, JOST is optimistic about the present fiscal year. Taking into account the course of business to date and expected performance, the Executive Board has updated and narrowed its guidance for the 2021 fiscal year.
JOST expects consolidated sales in 2021 to increase by more than 25% compared with the previous year (previous guidance: sales growth in the low double-digit percentage range year-over-year). Assuming that supply bottlenecks do not lead to any unexpected production downtime at key OEM customers in the fourth quarter, JOST could generate record sales of €1bn in the 2021 fiscal year for the first time in the company's history (2020: €794.4m).
JOST expects that adjusted EBIT for 2021 will continue to grow at a faster rate than sales by more than 30% year-over-year (2020: €73.2m; previous guidance: increase in the low double-digit percentage range yearover-year). The group's adjusted EBIT margin will improve accordingly compared with 2020 (2020: 9.2%).
Our investment activity will focus on increasing the level of automation in production. We also want to continuously improve the energy efficiency of our plants to reduce our carbon emissions even further. We will invest in the agricultural sector to enhance the positioning of our front loader business in the world's regions where our presence is yet to be fully developed. Overall, capital expenditure (excluding acquisition-related expenses) in relation to sales is expected to remain at around 2.5%.
Net working capital in relation to sales is likely to increase compared to 2020 (2020: 16.4%), primarily as a result of higher business volumes and the much lower comparison basis due to the negative impact of the coronavirus pandemic on the previous year's activity levels. We expect net working capital in relation to sales to remain below our 20% target in the 2021 fiscal year.
Leverage (ratio of net debt to adjusted EBITDA) will continue to improve in 2021 compared to 2020. Excluding any acquisitions, we anticipate a further reduction in leverage compared to 2020 by the end of 2021 (2020: 1.997x).
The Executive Board is confident that JOST's economic position is sound and offers an excellent basis for effectively seizing opportunities as they arise.
The Executive Board of JOST Werke AG
Neu-Isenburg, November 11, 2021
for the nine months ended September 30, 2021 JOST Werke AG
12
| in € thousands | Notes | 9M 2021 | 9M 2020 | Q3 2021 | Q3 2020 |
|---|---|---|---|---|---|
| Sales revenues | (7) | 784,844 | 563,601 | 251,828 | 196,927 |
| Cost of sales | –574,142 | –411,685 | –183,101 | –137,985 | |
| Gross profit | 210,702 | 151,916 | 68,727 | 58,942 | |
| Selling expenses | (8). (13) | –106,317 | –87,463 | –34,948 | –36,348 |
| thereof: depreciation and amortization of assets | –26,082 | –24,251 | –7,039 | –7,691 | |
| Research and development expenses | –13,111 | –10,143 | –4,103 | –3,016 | |
| Administrative expenses | –47,046 | –45,348 | –13,680 | –13,382 | |
| Other income | (9) | 6,805 | 7,401 | 1,376 | 2,843 |
| Other expenses | (9) | –8,500 | –6,609 | –2,908 | –1,520 |
| Share of profit or loss of equity method investments | 3,084 | 1,962 | 1,260 | 815 | |
| Operating profit (EBIT) | 45,617 | 11,716 | 15,724 | 8,334 | |
| Financial income | (10) | 4,836 | 1,716 | 134 | 591 |
| Financial expense | (10) | –9,712 | –8,942 | –2,565 | –3,970 |
| Net finance result | –4,876 | –7,226 | –2,431 | –3,379 | |
| Profit / loss before tax | 40,741 | 4,490 | 13,293 | 4,955 | |
| Income taxes | (11) | –6,760 | 790 | –3,255 | –397 |
| Profit / loss after taxes | 33,981 | 5,280 | 10,038 | 4,558 | |
| Weighted average number of shares | 14,900,000 | 14,900,000 | 14,900,000 | 14,900,000 | |
| Basic and diluted earnings per share (in €) | (12) | 2.28 | 0.35 | 0.67 | 0.30 |
for the nine months ended September 30, 2021 JOST Werke AG
| in € thousands | 9M 2021 | 9M 2020 | Q3 2021 | Q3 2020 |
|---|---|---|---|---|
| Profit / loss after taxes | 33,981 | 5,280 | 10,038 | 4,558 |
| Items that may be reclassified to profit or loss in subsequent periods | ||||
| Exchange differences on translating foreign operations | 7,328 | –20,068 | 1,884 | –11,697 |
| Gains and losses from hedge accounting | 272 | 0 | 272 | 0 |
| Deferred taxes relating to hedge accounting | –56 | 0 | –56 | 0 |
| Items that will not be reclassified to profit or loss | ||||
| Remeasurements of defined benefit pension plans | 5,357 | –2,895 | 209 | –1,042 |
| Deferred taxes relating to other comprehensive income | –1,607 | 869 | –63 | 313 |
| Other comprehensive income | 11,294 | –22,094 | 2,246 | –12,426 |
| Total comprehensive income | 45,275 | –16,814 | 12,284 | –7,868 |
as of September 30, 2021 JOST Werke AG
| in € thousands | Notes | 09/30/2021 | 12/31/2020 |
|---|---|---|---|
| Noncurrent assets | |||
| Goodwill | (3) | 91,774 | 92,146 |
| Other intangible assets | (3) | 275,525 | 301,839 |
| Property, plant, and equipment | 127,373 | 133,791 | |
| Investments accounted for using the equity method | 11,354 | 8,085 | |
| Deferred tax assets | 6,581 | 9,359 | |
| Other noncurrent financial assets | (14), (15) | 1,597 | 0 |
| Other noncurrent assets | 756 | 1,696 | |
| 514,960 | 546,916 | ||
| Current assets | |||
| Inventories | 179,393 | 136,339 | |
| Trade receivables | (14) | 156,586 | 123,947 |
| Receivables from income taxes | 3,075 | 3,981 | |
| Other current financial assets | (14), (15) | 2,225 | 4,546 |
| Other current assets | 17,108 | 14,521 | |
| Cash and cash equivalents | (14) | 85,066 | 108,315 |
| 443,453 | 391,649 | ||
| Total assets | 958,413 | 938,565 |
| in € thousands | Notes | 09/30/2021 | 12/31/2020 |
|---|---|---|---|
| Equity | |||
| Subscribed capital | 14,900 | 14,900 | |
| Capital reserves | 466,212 | 466,212 | |
| Other reserves | –45,429 | –56,723 | |
| Retained earnings | –140,073 | –159,154 | |
| 295,610 | 265,235 | ||
| Noncurrent liabilities | |||
| Pension obligations | (16) | 66,200 | 69,885 |
| Other provisions | 4,830 | 3,845 | |
| Interest-bearing loans and borrowings | (17) | 260,703 | 268,238 |
| Deferred tax liabilities | 27,887 | 35,842 | |
| Other noncurrent financial liabilities | (14), (18) | 34,520 | 28,903 |
| Other noncurrent liabilities | 2,194 | 5,228 | |
| 396,334 | 411,941 | ||
| Current liabilities | |||
| Pension obligations | (16) | 1,962 | 1,962 |
| Other provisions | 20,589 | 19,461 | |
| Interest-bearing loans and borrowings | (17) | 30,071 | 47,187 |
| Trade payables | (14) | 139,236 | 127,261 |
| Liabilities from income taxes | 6,332 | 6,503 | |
| Contract liabilities | 6,081 | 4,943 | |
| Other current financial liabilities | (14), (18) | 20,441 | 24,353 |
| Other current liabilities | 41,757 | 29,719 | |
| 266,469 | 261,389 | ||
| Total equity and liabilities | 958,413 | 938,565 |
for the nine months ended September 30, 2021 JOST Werke AG
| Balance as of September 30, 2021 | 14,900 | 466,212 | –18,461 | |
|---|---|---|---|---|
| Dividends paid | 0 | 0 | 0 | |
| Total comprehensive income | 0 | 0 | 7,328 | |
| Deferred taxes relating to other comprehensive income | 0 | 0 | 0 | |
| Other comprehensive income | 0 | 0 | 7,328 | |
| Earnings after taxes | 0 | 0 | 0 | |
| Balance as of January 1, 2021 | 14,900 | 466,212 | –25,789 | |
| in € thousands | Subscribed capital | Capital reserves | Exchange differences on translating foreign operations |
|
| Balance as of September 30, 2020 | 14,900 | 474,653 | –30,093 | |
|---|---|---|---|---|
| Total comprehensive income | 0 | 0 | –20,068 | |
| Deferred taxes relating to other comprehensive income | 0 | 0 | 0 | |
| Other comprehensive income | 0 | 0 | –20,068 | |
| Profit / loss after taxes | 0 | 0 | 0 | |
| Balance as of January 1, 2020 | 14,900 | 474,653 | –10,025 | |
| in € thousands | Subscribed capital | Capital reserves | foreign operations | |
| Exchange differences on translating |
||||
| Other reserves | |||
|---|---|---|---|
| Remeasurements | |||
| Total consolidated | of defined benefit | ||
| equity | Retained earnings | Other reserves | pension plans |
| 265,235 | –159,154 | –103 | –30,831 |
| 33,981 | 33,981 | 0 | 0 |
| 12,957 | 0 | 272 | 5,357 |
| –1,663 | 0 | –56 | –1,607 |
| 45,275 | 33,981 | 216 | 3,750 |
| –14,900 | –14,900 | 0 | 0 |
| 295,610 | –140,073 | 113 | –27,081 |
| Other reserves | |||
|---|---|---|---|
| Remeasurements | |||
| Total consolidated | of defined benefit | ||
| equity | Retained earnings | Other reserves | pension plans |
| 263,130 | –186,885 | –103 | –29,410 |
| 5,280 | 5,280 | 0 | 0 |
| –22,963 | 0 | 0 | –2,895 |
| 869 | 0 | 0 | 869 |
| –16,814 | 5,280 | 0 | –2,026 |
| 246,316 | –181,605 | –103 | –31,436 |
for the nine months ended September 30, 2021 JOST Werke AG
| in € thousands | 9M 2021 | 9M 2020 | Q3 2021 | Q3 2020 |
|---|---|---|---|---|
| Profit / loss before tax | 40,741 | 4,490 | 13,293 | 4,955 |
| Depreciation, amortization, impairment losses and reversal | ||||
| of impairment on noncurrent assets | 52,514 | 42,922 | 12,493 | 14,370 |
| Other noncash expenses | –2,787 | –194 | –232 | 779 |
| Change in inventories | –43,699 | 4,546 | –19,543 | 4,030 |
| Change in trade receivables | –32,533 | –19,453 | 25,621 | –10,915 |
| Change in trade payables | 11,381 | 22,921 | –724 | 20,197 |
| Change in other assets and liabilities | 17,515 | 25,851 | –3,063 | 7,477 |
| Income tax payments | –11,803 | –6,985 | –5,253 | –4,626 |
| Cash flow from operating activities | 31,329 | 74,098 | 22,592 | 36,267 |
| Payments to acquire intangible assets | –3,130 | –3,905 | –982 | –1,442 |
| Proceeds from sales of property, plant, and equipment | 214 | 2,332 | 196 | 101 |
| Payments to acquire property, plant, and equipment | –9,005 | –8,305 | –3,634 | –3,196 |
| Acquisition of subsidiaries, less acquired cash and cash equivalents | 0 | –245,419 | 0 | 0 |
| Proceeds from sales of subsidiaries | 7,965 | 0 | 0 | 0 |
| Interests received | 264 | 277 | 83 | 213 |
| Cash flow from investing activities | –3,692 | –255,020 | –4,337 | –4,324 |
| Interest payments | –4,547 | –4,223 | –868 | –1,389 |
| Proceeds from short-term interest-bearing loans and borrowings | 8,871 | 110,000 | 0 | 0 |
| Proceeds from long-term interest-bearing loans and borrowings | 0 | 120,000 | 0 | 0 |
| Refinancing costs | 0 | –510 | 0 | 0 |
| Repayment of short-term interest-bearing loans and borrowings | –25,986 | –42,729 | –8,486 | –42,572 |
| Repayment of long-term interest-bearing loans and borrowings | –7,640 | 0 | –547 | 0 |
| Dividends paid to the shareholders of the Company | –14,900 | 0 | 0 | 0 |
| Repayment of lease liabilities | –7,307 | –6,138 | –2,654 | –1,875 |
| Cash flow from financing activities | –51,509 | 176,400 | –12,555 | –45,836 |
| Net change in cash and cash equivalents | –23,872 | –4,522 | 5,700 | –13,893 |
| Change in cash and cash equivalents due to exchange rate movements | 2,916 | –2,989 | 743 | –1,694 |
| Changes in cash and chash equivalents due to consolidation | –2,293 | 0 | 0 | 0 |
| Cash and cash equivalents at January 1 / July 1 | 108,315 | 104,812 | 78,623 | 112,888 |
| Cash and cash equivalents at September 30 | 85,066 | 97,301 | 85,066 | 97,301 |
for the period from January 1 to September 30, 2021 JOST Werke AG
JOST is a leading global producer and supplier of safety-critical systems for the commercial vehicle industry.
The registered office of JOST Werke AG is at Neu-Isenburg, Germany. Its address is Siemensstraße 2 in 63263 Neu-Isenburg. The company is registered in the Commercial Register of Offenbach am Main under section B, number 50149.
The shares of JOST Werke AG (hereinafter also "JOST", the "group," the "company," or the "JOST Werke Group") have been traded on the Frankfurt Stock Exchange since July 20, 2017. As of September 30, 2021, the majority of JOST shares were held by institutional investors.
The condensed consolidated interim financial statements of JOST Werke AG were prepared based on the going concern principle.
The condensed consolidated interim financial statements (hereinafter also "interim financial statements") as of and for the nine months ended September 30, 2021 (hereinafter also "2021 reporting period") comprise JOST Werke AG, its subsidiaries and the joint venture. These interim financial statements were prepared in accordance with the International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board (IASB), London, that are effective as of the reporting date, and the Interpretations issued by the International Financial Reporting Interpretations Committee (IFRS IC), as adopted by the European Union (EU).
The interim financial statements were prepared in accordance with IAS 34 Interim Financial Reporting. They do not include all the information required for a complete set of IFRS consolidated financial statements. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the group's net assets, financial position and results of operations since the last annual consolidated financial statements as of and for the fiscal year ended December 31, 2020. The interim financial statements should be read in conjunction with the annual consolidated financial statements as of and for the fiscal year ended December 31, 2020, which can be downloaded at http://ir.jost-world.com/. The new and amended International Financial Reporting Standards and Interpretations that are effective for fiscal years beginning on or after January 1, 2021 (Amendments to IFRS 4 – Extension of the Temporary Exemption from Applying IFRS 9 and Amendments to IFRS 9, IAS 39, IFRS 7 and IFRS 16 – Interest Rate Benchmark Reform (Phase 2) and Amendments to IFRS 16 – Covid-19-related Rent Concessions beyond June 30, 2021), had no material effect on the reporting period or earlier periods and will probably not have a material effect on future periods.
The Executive Board approved the condensed consolidated interim financial statements of JOST Werke AG for the period from January 1 to September 30, 2021 for issue on November 11, 2021.
On January 31 of the previous year, the subsidiary Jost-Werke International Beteiligungsverwaltung GmbH acquired a 100% interest in Ålö Holding AB, a leading international manufacturer of agricultural front loaders marketed under the Quicke brand, for a purchase price of €159.2m. This acquisition concerned 14,207,973 shares with a notional value of SEK 10 per share. The main reason for the acquisition was that JOST intends to use the takeover to expand its successful business and sales model, and its industrial expertise as a producer and supplier of systems and components in the agricultural sector.
For better comparability of the results in the reporting period, the results of the comparative period would have to be restated as follows: If the Ålö Group had already been included in the basis of consolidation as of January 1, 2020, the condensed consolidated income statement would have shown additional sales revenues of €14.5m. The sales revenues attributable to Ålö for the period from January 1 to September 30, 2020 would be €135.5m. For the period from January 1 to September 30, the Ålö Group would have contributed a total of €0.2m to consolidated earnings instead of €2.3m for the period from February 1 to September 30, 2020.
The purchase price allocation carried out in connection with initial consolidation in the first nine months of 2021 resulted in €3,732 thousand (2020: €3,034 thousand) in depreciation of land, land rights and buildings, including buildings on third-party land, and amortization of customer lists and acquired intangible assets. In the prior-year period, which only covered eight months, there were also negative earnings effects from the utilization of step-ups on inventories amounting to €6,943 thousand.
In the prior-year period, there were costs of business combinations amounting to €2,244 thousand. These were presented in administrative expenses within the income statement. For further details on exceptionals, see note 13.
Depending on the absolute amount of Ålö Holding AB's gross margin in fiscal year 2020, the group is obliged to pay the former owners of Ålö Holding AB up to €25m.
The group's potential payment obligations under this agreement are between €1m and €25m and will become due and payable in 2021 if this company's gross margin exceeds a certain figure.
Based on the assessment at the acquisition date, a fair value of €10,480 thousand was recognized for the contingent consideration. As of December 31, 2020, the contingent consideration was determined on the basis of the provisionally calculated gross margin and adjusted to a fair value of €10,200 thousand. This assessment remains unchanged as of September 30, 2021. No payment has been made to date.
In the second quarter of 2021, following a periodic analysis of its organic and external expansion strategy, JOST decided to divest Edbro's hydraulic cylinder production activities to focus on other identified strategic growth opportunities in transport and agriculture. The group thus sold its Bolton, UK-based subsidiary Jost UK Ltd. (Edbro) to Enact on May 12, 2021 and disposed of its fund company Endless LLP. In these financial statements for the period ended September 30, 2021, the sale of the company is presented in the Europe segment as a disposal group as defined by IFRS 5 Non-current Assets Held for Sale and Discontinued Operations. The deconsolidation date is April 30, 2021.
The expenses and income arising from the sale are presented in the corresponding functional areas of the income statement. An overview of the effects arising from the sale of the disposal group is shown below.
The results presented show the activities for the four months up until the deconsolidation date of April 30, 2021.
In connection with the sale of the disposal group, cumulative translation differences of €431 thousand from other comprehensive income were reclassified to profit or loss.
| January 1 to | |
|---|---|
| in € thousands | April 30, 2021 |
| Sales revenues | 2,326 |
| Expenses | –3,455 |
| Profit / loss of Jost UK (after income taxes) | –1,129 |
| Disposal loss (including impairment losses) | |
| within the group after income taxes | –11,341 |
| Profit / loss from the sale of the disposal group | |
| (after income taxes) | –12,470 |
| in € thousands | April 30, 2021 |
|---|---|
| Consideration received | |
| Cash | 7,965 |
| Total | 7,965 |
| Carrying amount of net assets disposed of | |
| (before impairment losses) | 18,875 |
| Impairment of noncurrent assets | |
| (esp. property, plant and equipment) | –6,204 |
| Impairment of hidden reserves from PPA | –3,905 |
| Impairment of goodwill from PPA | –801 |
| Carrying amount of net assets disposed of | |
| (after impairment losses) | 7,965 |
| Reclassification of currency translation reserve | –431 |
| Disposal loss (including impairment losses) | |
| within the group after income taxes | –11,341 |
The sale of the disposal group and the measurement methods set out in IFRS 5 gave rise to impairment losses on customer lists in the amount of €2,934 thousand, on trademark rights in the amount of €971 thousand, and on goodwill in the amount of €801 thousand, which are presented under selling expenses. In addition, impairment losses of €6,204 thousand were charged primarily on property, plant and equipment and reported under cost of sales. When the need for impairment was being determined, the selling price agreed with the buyer (= recoverable amount) of the disposal group was used as a yardstick for the measurement.
| Profit / loss from | |
|---|---|
| the sale of the | |
| in € thousands | disposal group |
| Sales revenues | 2,326 |
| Cost of sales | –10,143 |
| Gross profit | –7,817 |
| Selling expenses | –4,853 |
| Research and development expenses | –141 |
| Administrative expenses | –463 |
| Other income | 16 |
| Other expenses | –23 |
| Operating profit (EBIT) | –13,281 |
| Financial income | 1 |
| Financial expense | –17 |
| Net finance result | –16 |
| Profit / loss before tax | –13,297 |
| Income taxes | 827 |
| Profit / loss after taxes | –12,470 |
The carrying amounts of the assets and liabilities at the date of disposal were as follows:
| in € thousands | April 30, 2021 |
|---|---|
| Other Intangible assets | 2,258 |
| Property, plant, and equipment | 3,545 |
| Deferred tax assets | 439 |
| Inventories | 3,203 |
| Trade receivables | 2,663 |
| Other current assets | 1,034 |
| Cash and cash equivalents | 2,293 |
| Total assets | 15,435 |
| Noncurrent liabilities | 3,100 |
| Other provisions | 1,061 |
| Trade payables | 3,309 |
| Total liabilities | 7,470 |
| Net assets | 7,965 |
| Consolidated | |||||
|---|---|---|---|---|---|
| in € thousands | Europe | North America | Asia, Pacific and Africa | Reconciliation | financial statements |
| Sales revenues * | 728,582 | 189,973 | 221,358 | –357,395 | 782,518** |
| thereof: external sales revenues * | 459,865 | 187,870 | 134,783 | 0 | 782,518 |
| thereof: internal sales revenues * | 268,717 | 2,103 | 86,575 | –357,395 | 0 |
| Adjusted EBIT *** | 41,271 | 16,461 | 23,139 | 3,084 | 83,955 |
| thereof: depreciation and amortization | 12,893 | 3,837 | 4,198 | 0 | 20,928 |
| Adjusted EBIT margin | 9.0% | 8.8% | 17.2% | 10.7% | |
| Adjusted EBITDA *** | 54,164 | 20,298 | 27,337 | 3,084 | 104,883 |
| Adjusted EBITDA margin | 11.8% | 10.8% | 20.3% | 13.4% |
* Sales by destination in the reporting period:
– Europe: €391,070 thousand
– Americas: €206,302 thousand
– Asia-Pacific-Africa: €185,146 thousand
** Sales revenues in the segments show the sales revenues by origin and have been adjusted in the Europe Segment for the sales revenues of JOST UK Ltd. in the amount of €2,326 thousand. For further information, please refer to notes 4 and 13.
*** The share of profit or loss of investments accounted for using the equity method is not allocated to a segment and is therefore included in the "reconciliation" column in the amount of €3,084 thousand.
After the acquisition of the Ålö Group, sales revenues are broken down into the Transport and Agriculture business units defined in 2020. Sales revenues in the reporting period, excluding those of JOST UK Ltd., are distributed as follows between the two business units Transport and Agriculture:
| in € thousands | 9M 2021 | 9M 2020 |
|---|---|---|
| Transport | 592,057 | 436,015 |
| Agriculture | 190,461 | 127,586 |
| Total | 782,518 | 563,601 |
| Consolidated | |||||
|---|---|---|---|---|---|
| in € thousands | Europe | North America | Asia, Pacific and Africa | Reconciliation | financial statements |
| Sales revenues * | 546,317 | 132,362 | 152,783 | –267,861 | 563,601** |
| thereof: external sales revenues * | 343,775 | 122,981 | 96,845 | 0 | 563,601 |
| thereof: internal sales revenues * | 202,542 | 9,381 | 55,938 | –267,861 | 0 |
| Adjusted EBIT *** | 22,830 | 7,794 | 13,525 | 1,962 | 46,111 |
| thereof: depreciation and amortization | 13,873 | 3,711 | 3,625 | 0 | 21,209 |
| Adjusted EBIT margin | 6.6% | 6.3% | 14.0% | 8.2% | |
| Adjusted EBITDA *** | 36,703 | 11,505 | 17,150 | 1,962 | 67,320 |
| Adjusted EBITDA margin | 10.7% | 9.4% | 17.7% | 11.9% | |
* Sales by destination in the reporting period:
– Europe: €288,946 thousand
– Americas: €133,276 thousand
– Asia-Pacific-Africa: €141,379 thousand
** Sales revenues in the segments show the sales revenues by origin.
*** The share of profit or loss of investments accounted for using the equity method is not allocated to a segment and is therefore included in the "reconciliation" column in the amount of €1,962 thousand.
Reconciliation of earnings to adjusted earnings figures:
| in € thousands | 9M 2021 | 9M 2020 |
|---|---|---|
| Profit / loss after taxes | 33,981 | 5,280 |
| Income taxes | –6,760 | 790 |
| Net finance result | –4,876 | –7,226 |
| EBIT | 45,617 | 11,716 |
| D & A from PPA | –20,939 | –21,713 |
| Effects from the sale of the disposal group* | –13,281 | 0 |
| Other effects | –4,118 | –12,682 |
| Adjusted EBIT | 83,955 | 46,111 |
| Adjusted EBIT margin | 10.7% | 8.2% |
| Depreciation of property, | ||
| plant and equipment | –18,676 | –18,752 |
| Amortization of intangible assets | –2,252 | –2,457 |
| Adjusted EBITDA | 104,883 | 67,320 |
| Adjusted EBITDA margin | 13.4% | 11.9% |
* The effects from the sale of the disposal groups in 2021 include impairment losses of EUR 4,706 thousand, which can be allocated to D&A and impairment losses from PPA.
The other effects are explained in more detail in note 13.
The following table shows noncurrent assets by operating segments for September 30, 2021:
| Consolidated | |||||
|---|---|---|---|---|---|
| in € thousands | Europe * | North America | Asia, Pacific and Africa | Reconciliation ** | financial statements |
| Noncurrent assets | 393,810 | 52,309 | 50,906 | 11,354 | 508,379 |
* Of this amount, €47,401 thousand is attributable to noncurrent assets of companies registered in Germany. This does not include intangible assets recognized as part of the purchase price allocation as these figures are not available at the level of individual companies and the cost to determine them would be excessive.
** Noncurrent assets include the carrying amount of investments accounted for using the equity method that is not allocated to a segment and therefore included in the reconciliation column.
The following table shows noncurrent assets by operating segments for December 31, 2020:
| Consolidated | |||||
|---|---|---|---|---|---|
| in € thousands | Europe * | North America | Asia, Pacific and Africa | Reconciliation ** | financial statements |
| Noncurrent assets | 432,314 | 48,230 | 48,928 | 8,085 | 537,557 |
* Of this amount, €51,216 thousand is attributable to noncurrent assets of companies registered in Germany. This does not include intangible assets recognized as part of the purchase price allocation as these figures are not available at the level of individual companies and the cost to determine them would be excessive.
** Noncurrent assets include the carrying amount of investments accounted for using the equity method that is not allocated to a segment and therefore
included in the reconciliation column.
Noncurrent assets consist of goodwill, other intangible assets, property, plant, and equipment, investments accounted for using the equity method and other noncurrent (financial) assets (excluding financial instruments and assets in connection with pension obligations). Effects from purchase price allocation are allocated to each segment.
Seasonal effects during the fiscal year can result in variations in sales and resulting profit. The JOST Werke Group usually has higher sales and earnings in the first half-year due to the fact that major customers close their manufacturing plants for summer break at the start of the second half-year and agricultural customers usually make their investments before the harvesting seasons begins. It cannot be ruled out that the coronavirus pandemic may trigger changes to this typical seasonality.
The previous year includes additional sales revenues from the acquisition of the Ålö Group for the period February 1 to September 30, 2020. Note 3 shows the amount of sales revenues that would have resulted for the period from January 1 to September 30, 2020.
The year-over-year increase in sales revenues extends across all regions. The effects of the COVID-19 pandemic, but also the economic slowdown in the commercial vehicle markets, had a noticeable impact on sales revenues in the previous year, whereas the recovery that began during the fourth quarter of 2020 continued through the 2021 reporting period.
The year-over-year increase in selling expenses is related to the considerable increase in sales activities.
For the 2021 reporting period, other income amounted to €6.8m (2020 reporting period: €7.4m) and other expenses amounted to €8.5m (2020 reporting period: €6.6m).
In the 2021 reporting period as well in the 2020 reporting period, other income mainly comprises currency gains and government grants. The figure for the 2020 reporting period also includes income from asset disposals of €1.5m. Other expenses in the 2021 reporting period mainly relate to currency losses and expenses from the measurement of derivatives used to hedge exchange rate risk from operating activities (2020 reporting period: mainly currency losses).
Financial income is composed of the following items:
| in € thousands | 9M 2021 | 9M 2020 |
|---|---|---|
| Interest income | 293 | 283 |
| Realized currency gains | 105 | 3 |
| Unrealized currency gains | 2,906 | 1,390 |
| Result from measurement of derivatives | 1,513 | 28 |
| Other financial income | 19 | 12 |
| Total | 4,836 | 1,716 |
Financial expense is composed of the following items:
| in € thousands | 9M 2021 | 9M 2020 |
|---|---|---|
| Interest expenses | –5,705 | –5,271 |
| thereof: interest expenses from leasing | –1,079 | –669 |
| Realized currency losses | –261 | –195 |
| Unrealized currency losses | –2,933 | –2,970 |
| Result from measurement of derivatives | –637 | 0 |
| Other financial expenses | –176 | –506 |
| Total | –9,712 | –8,942 |
Other financial expenses in the 2020 reporting period included an expense of €0.3m from the financing agreement dated December 19, 2019, to finance the acquisition of Ålö Holding AB. The unrealized currency effects relate to non-cash effects from the measurement of foreign currency loans.
The result from measurement of derivatives is due to changes in the fair values of these instruments. Reference is made to note 18 at this point.
The following table shows a breakdown of income taxes:
| in € thousands | 9M 2021 | 9M 2020 |
|---|---|---|
| Current tax | –13,620 | –9,125 |
| Deferred taxes | 6,860 | 9,915 |
| Taxes on income | –6,760 | 790 |
Tax expenses are calculated based on management's best estimate of the weighted average annual income tax rate expected for the full fiscal year multiplied by the pre-tax income of the interim reporting period.
As of September 30, 2021, the number of no-par value shares (bearer shares) remained unchanged at 14,900,000.
The diluted earnings per share (in €) correspond to basic earnings per share.
| 2.28 | 0.35 |
|---|---|
| 14,900,000 | 14,900,000 |
| 33,981 | 5,280 |
| 9M 2021 | 9M 2020 |
The following explanation of adjusted effects serves to clarify the information in the income statement.
In the 2021 reporting period, expenses amounting to €38,338 thousand (2020: €34,395 thousand) were adjusted within earnings before interest and taxes (EBIT).
The items adjusted within EBIT result from expenses arising from depreciation and amortization from purchase price allocations (D&A from PPA) in the amount of €20,939 thousand (2020: €21,713 thousand) recognized under selling expenses and research and development expenses. The income effects in EBIT arising from the sale of JOST UK Ltd. amount to €13,281 thousand and to €16 thousand in the net finance result. Of this, €1,113 thousand relates to the EBIT of the company until its deconsolidation and €10,910 thousand relates to impairment losses on primarily property, plant and equipment, customer lists, trademark rights and goodwill. For more information, see note 4. Furthermore, cost of sales, selling, research and development expenses, and administrative and other expenses were adjusted for expenses relating to other effects totaling €4,118 thousand (2020: €12,682 thousand). In the 2020 reporting period, the other effects mainly related to expenses associated with the acquisition of Ålö Holding AB in the amount of €2,244 thousand, earnings effects from the use of step-ups on inventories in the amount of €6,943 thousand, and expenses for an optimization project at Ålö in the amount of €2,399 thousand.
In the 2020 reporting period, expenses of €240 thousand arising from entering into the acquisition financing agreement were adjusted within the net finance result.
Notional income taxes resulting after adjustments based on the tax rate applicable for JOST Werke AG were considered in the amount of €23,729 thousand in the 2021 reporting period (2020: €11,738 thousand).
The tables below show the earnings adjusted for these effects:
| January 1 – | January 1, – | |||||
|---|---|---|---|---|---|---|
| September 30, | September 30, | |||||
| 2021 | Effects from the | Adjustments, | 2021 | |||
| in € thousands | Unadjusted | D & A from PPA | sale of Jost UK | Other effects | total | Adjusted |
| Sales revenues | 784,844 | –2,326 | –2,326 | 782,518 | ||
| Cost of sales | –574,142 | 10,143 | 624 | 10,767 | –563,375 | |
| Gross profit | 210,702 | 0 | 7,817 | 624 | 8,441 | 219,143 |
| Selling expenses | –106,317 | 18,852 | 4,853 | 1,284 | 24,989 | –81,328 |
| Research and development expenses | –13,111 | 2,087 | 141 | 97 | 2,325 | –10,786 |
| Administrative expenses | –47,046 | 463 | 1,675 | 2,138 | –44,908 | |
| Other income | 6,805 | –16 | –16 | 6,789 | ||
| Other expenses | –8,500 | 23 | 438 | 461 | –8,039 | |
| Share of profit or loss of equity method investments | 3,084 | 0 | 3,084 | |||
| Operating profit (EBIT) | 45,617 | 20,939 | 13,281 | 4,118 | 38,338 | 83,955 |
| Financial income | 4,836 | –1 | –1 | 4,835 | ||
| Financial expense | –9,712 | 17 | 17 | –9,695 | ||
| Net finance result | –4,876 | 0 | 16 | 0 | 16 | –4,860 |
| Earnings before tax | 40,741 | 20,939 | 13,297 | 4,118 | 38,354 | 79,095 |
| Income taxes | –6,760 | –23,729 | ||||
| Earnings after taxes | 33,981 | 55,366 | ||||
| Weighted average number of shares | 14,900,000 | 14,900,000 | ||||
| Basic and diluted earnings per share (in €) | 2.28 | 3.72 |
| January 1 – September 30, |
January 1, – September 30, |
||||
|---|---|---|---|---|---|
| in € thousands | 2020 Unadjusted |
D & A from PPA | Other effects | Adjustments, total |
2020 Adjusted |
| Sales revenues | 563,601 | 0 | 563,601 | ||
| Cost of sales | –411,685 | 7,928 | 7,928 | –403,757 | |
| Gross profit | 151,916 | 0 | 7,928 | 7,928 | 159,844 |
| Selling expenses | –87,463 | 21,713 | 1,191 | 22,904 | –64,559 |
| Research and development expenses | –10,143 | 61 | 61 | –10,082 | |
| Administrative expenses | –45,348 | 4,956 | 4,956 | –40,392 | |
| Other income | 7,401 | –1,454 | –1,454 | 5,947 | |
| Other expenses | –6,609 | 0 | –6,609 | ||
| Share of profit or loss of equity method investments | 1,962 | 0 | 1,962 | ||
| Operating profit (EBIT) | 11,716 | 21,713 | 12,682 | 34,395 | 46,111 |
| Financial income | 1,716 | 0 | 1,716 | ||
| Financial expense | –8,942 | 240 | 240 | –8,702 | |
| Net finance result | –7,226 | 0 | 240 | 240 | –6,986 |
| Earnings before tax | 4,490 | 21,713 | 12,922 | 34,635 | 39,125 |
| Income taxes | 790 | –11,738 | |||
| Earnings after taxes | 5,280 | 27,387 | |||
| Weighted average number of shares | 14,900,000 | 14,900,000 | |||
| Basic and diluted earnings per share (in €) | 0.35 | 1.84 |
The carrying amounts, fair values, categories and classes of financial assets and financial liabilities are as follows:
| Total | 245,474 | 245,474 | 236,808 | 236,808 | ||
|---|---|---|---|---|---|---|
| Other financial assets | FAAC | 3,822 | 3,822 | 4,546 | 4,546 | n/a |
| Trade receivables | FAAC | 156,586 | 156,586 | 123,947 | 123,947 | n/a |
| Cash and cash equivalents | FAAC | 85,066 | 85,066 | 108,315 | 108,315 | n/a |
| Assets | ||||||
| in € thousands | categories in accordance with IFRS 9 |
Carrying amount 09/30/2021 |
Fair value 09/30/2021 |
Carrying amount 12/31/2020 |
Fair value 12/31/2020 |
Level |
| Measurement |
Cash and cash equivalents, trade receivables, and other financial assets are generally of a current nature. The fair value therefore roughly corresponds to the carrying amount. As of the reporting date, all other financial assets are measured at amortized cost (FAAC); the same applied to December 31, 2020.
| Total | 485,317 | 444,075 | 496,392 | 460,753 | ||
|---|---|---|---|---|---|---|
| Derivative financial liabilities | FLtPL | 3,262 | 3,262 | 2,995 | 2,995 | 2 |
| Other financial liabilities | FLAC | 325 | 325 | 4,490 | 4,490 | n/a |
| Contingent purchase price liability | FLtPL | 10,200 | 10,200 | 10,200 | 10,200 | 3 |
| Lease liabilities | n/a** | 41,174 | – | 35,571 | – | n/a |
| Interest bearing loans and borrowings * | FLAC | 291,120 | 291,052 | 315,875 | 315,807 | 2 |
| Trade payables | FLAC | 139,236 | 139,236 | 127,261 | 127,261 | n/a |
| Liabilities | ||||||
| in € thousands | with IFRS 9 | 09/30/2021 | 09/30/2021 | 12/31/2020 | 12/31/2020 | Level |
| Measurement categories in accordance |
Carrying amount |
Fair value | Carrying amount |
Fair value |
* excluding accrued financing costs (see note 17)
** within the scope of IFRS 16
Since trade payables and other liabilities have short maturities, their carrying amounts do not differ from their fair values. With the exception of derivative financial liabilities and the contingent purchase price liability arising from the acquisition of the Ålö Group, all liabilities listed in the table are measured at amortized cost (FLAC). Derivative financial liabilities are measured at fair value through profit or loss (FLtPL).
Lease liabilities fall within the scope of IFRS 16 and are therefore not allocated to any of the measurement categories established under IFRS 9.
The JOST Werke Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:
There were no transfers between the levels of the fair value hierarchy during 2021 and 2020.
The fair value of the interest-bearing loans and borrowings is determined in 2021 and 2020 considering actual interest curves and classified as level 2 of the fair value hierarchy.
The measurement of derivatives is described in note 18.
The decrease in other current financial assets resulted from the expiration of bank bills that did not qualify as cash equivalents. The other non-current financial assets concern a loan receivable. There were no credit-impaired financial assets as of the balance sheet date. The gross carrying amount corresponds to the maximum default risk. No financial assets were known to be at risk of default as of the balance sheet date.
Pension obligations as of September 30, 2021 were €68.2m (December 31, 2020: €71.8m). The following significant actuarial assumptions were made:
| 09/30/2021 | 12/31/2020 | |
|---|---|---|
| Discount rate | 0.8% | 0.4% |
| Inflation rate / future pension increases | 1.7% | 1.7% |
| Future salary increases | 2.0% | 2.0% |
The following table shows the group's loan liabilities as of September 30, 2021:
| 29,000 |
|---|
| 86,500 |
| 20,000 |
| 14,500 |
| 150,000 |
| 114,000 |
| 45,000 |
| 6,875 |
| 315,875 |
| –450 |
| 315,425 |
In order to finance its acquisition of Ålö Holding AB, JOST in December 2019 entered into a financing arrangement with a consortium of banks for an amount of €120m and over a term of five years, which was drawn down on January 31, 2020. This bank loan is subject to compliance with financial covenants derived from the consolidated financial statements of the ultimate parent company.
There is a revolving credit facility in place of €150m. The group drew €27.5m from this facility as of September 30, 2021 (December 31, 2020: €45m). The revolving credit facility has a short-term maturity and is therefore reported under current liabilities. It carries a variable interest rate depending on the EURIBOR and the group-wide leverage of JOST. Payments of principal in the amount of €17.5m were made on the revolving credit facility in the 2021 reporting period and a further €6.0m of principal was repaid on the long-term loan taken out to finance the acquisition of Ålö (2020 reporting period: €0m). Other interest-bearing loans and borrowings also include current account liabilities of €0.4m (December 31, 2020: €0m).
Interest payments on the financing were made in the amount of €3,440 thousand (2020 reporting period: €3,391 thousand).
To the extent that they can be accrued, the costs incurred under the previous financing agreement are spread on a pro rata basis until mid-2025 in accordance with the effective interest method, and those incurred under the additional financing agreement dated December 19, 2019 are spread until the end of 2024.
The future interest rate volatility from the variable interest tranches of the promissory note loan is hedged via four interest rate swaps. Overall, the interest rate swaps as of September 30, 2021 had a negative fair value of €1,215 thousand (December 31, 2020: €1,348 thousand) (markto-market valuation), which is shown in the balance sheet under other noncurrent financial liabilities.
The group has entered into 23 derivatives to hedge the exchange rate risk between the Swedish krona and the euro. These derivatives have a negative fair value of €904 thousand as of September 30, 2021 (December 31, 2020: €1,647 thousand) (mark-to-market valuation), which is also shown in the balance sheet under other noncurrent financial liabilities.
A further 59 derivatives serve to hedge the exchange rate risk from operating activities between the Swedish krona, Norwegian krone, Danish krone, US dollar, British pound and Canadian dollar. These derivatives have a negative fair value of €1,143 thousand as of September 30, 2021 (mark-to-market valuation), which is also shown in the balance sheet under other noncurrent financial liabilities.
For details regarding the maturities of loans see note 17.
Since July 2021, the group has been applying hedge accounting in accordance with IFRS 9 to a small extent, insofar as the criteria for such designation are met. The entity Ålö AB, Umeå, Sweden, hedges exchange rate risks arising from its operating business. OTC FX instruments are used to hedge the exchange rate risk of the Swedish krona against the Norwegian krone, the Danish krone, the US dollar, the British pound and the Canadian dollar. The nominal amount of the hedges as of September 30 is SEK 37,935 thousand.
IAS 24 defines related parties as those persons and companies that have control or a significant influence over the other party.
The structure of the group, including the subsidiaries and the joint venture, as of September 30, 2021, has not changed compared to December 31, 2020, with the exception of the merger of Alo Tennessee Inc., Telford, USA, and Alo USA Inc., Elgin, USA, and the sale of Jost UK Ltd., Bolton, UK, mentioned above.
The Executive Board comprises the following members, who are all related parties within the meaning of IAS 24:
Joachim Dürr, Diplom-Ingenieur, Dachau Chairman of the Executive Board Chief Executive Officer
Dr.-Ing. Ralf Eichler, Diplom-Ingenieur, Dreieich Chief Operating Officer
Dr. Christian Terlinde, Diplom-Kaufmann, Dinslaken Chief Financial Officer
Natalie Hayday
Rolf Lutz
Jürgen Schaubel
There were no other material changes to existing transactions or new transactions with related parties during the 2021 reporting period.
There were no material, reportable events after the reporting date.
This interim report was neither audited according to Section 317 HGB nor reviewed by auditors.
Neu-Isenburg, November 11, 2021
Joachim Dürr Dr. Ralf Eichler Dr. Christian Terlinde
| NOVEMBER 23, 2021 | CAPITAL MARKETS DAY 2021 |
|---|---|
| MARCH 24, 2022 | ANNUAL REPORT 2021 |
| MAY 5, 2022 | ANNUAL GENERAL MEETING 2022 |
| MAY 12, 2022 | INTERIM REPORT Q1 2022 |
| AUGUST 11, 2022 | HALF-YEAR FINANCIAL REPORT H1 2022 |
| NOVEMBER 14, 2022 | INTERIM REPORT 9M 2022 |
This document contains forward-looking statements. These statements reflect the current views, expectations and assumptions of the management, and are based on information currently available to the management. Forward-looking statements do not guarantee the occurrence of future results and developments and are subject to known and unknown risks and uncertainties. Therefore, actual future results and developments may deviate materially from the expectations and assumptions expressed in this document due to various factors. These factors primarily include changes in the general economic and competitive environment. Furthermore, developments on financial markets and changes in currency exchange rates as well as changes in national and international laws, in particular in respect of fiscal regulation, and other factors influence the company's future results and developments. Neither the company nor any of its affiliates undertakes to update the statements contained in this notification.
This interim report has been translated into English. Both language versions are available for download on the Internet at http://ir.jost-world.com. In case of any conflicts, the German version of the interim report shall prevail over the English translation.
JOST Werke AG Siemensstraße 2 63263 Neu-Isenburg Germany Phone: 0049-6102-295-0 Fax: 0049-6102-295-661
Romy Acosta Investor Relations Phone: 0049-6102-295-379 Fax: 0049-6102-295-661 [email protected]
Silvester Group www.silvestergroup.com
JOST WERKE AG SIEMENSSTRASSE 2 63263 NEU-ISENBURG GERMANY
PHONE: 0049-6102-295-0 FAX: 0049-6102-295-661
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