Quarterly Report • May 13, 2016
Quarterly Report
Open in ViewerOpens in native device viewer
| Earnings Figures | Q1 2015 | Q1 2016 | Chg. in % | |
|---|---|---|---|---|
| Revenues | in m€ | 312.4 | 333.4 | 7 |
| EBITDA | in m€ | 42.7 | 51.4 | 20 |
| EBIT | in m€ | 28.1 | 34.3 | 22 |
| Result of the period | in m€ | 16.5 | 22.9 | 39 |
| EBITDA margin | in % | 13.7% | 15.4% | - |
| EBIT margin | in % | 9.0% | 10.3% | - |
| Balance Sheet Figures | Dec. 31, 2015 | Mar. 31, 2016 | Chg. in % | |
|---|---|---|---|---|
| Balance sheet total | in m€ | 1,177.6 | 1,201.3 | 2 |
| Equity | in m€ | 386.6 | 380.3 | -2 |
| Equity ratio | in % | 32.8% | 31.7% | - |
| Net debt | in m€ | 387.4 | 428.5 | 11 |
| Gearing | in % | 100.2% | 112.7% | - |
| Employees | Dec. 31, 2015 | Mar. 31, 2016 | Chg. in % |
|---|---|---|---|
| Number of employees as of reporting date incl. contract workers and externals |
4,553 | 4,658 | 2 |
for the first quarter 2016
The CROSS Industries group is a global automotive niche player that includes worldwide renowned brands (KTM, Husqvarna Motorcycles, Pankl, WP), which are technology and market leaders in each niche. The group's primary target is the strategic industrial leadership and the development of the majority interests. Within the divisions the focus is on the mutual utilization of potential synergies and on the further development of cooperative projects. By bundling the core capabilities a competitive advantage is achieved.
In March 2016 it was announced that, in the future, the CROSS Industries group will intensify its focus on the listing of CROSS Industries AG in the Prime Market. A delisting of its two subsidiaries KTM AG and WP AG was initiated in order to establish a leaner capital market structure. The current free-float in both entities is considerably below the threshold of one per cent. As accompanying measures, tender offers will be submitted to the free-float shareholders of KTM AG and WP AG who in the course of a delisting wish to exit the companies in order to facilitate an exit from the companies. Shareholders, who do not consider to accept the tender offers, continue to be shareholders of KTM AG and WP AG.
The subsidiaries KTM AG, Pankl Racing Systems AG and WP AG made a very promising start to the first quarter of 2016. Each of them is above the previous year's level concerning revenues and EBIT.
The employee development within the group is very positive. In the first quarter of 2016 additional 105 employees could be hired, thereof 89 in Austria. As of March 31, 2016 the number of employees amounted to 4,658.
According to the International Monetary Fund (IMF) as of April 2016 the global economic growth will grow further in 2016 by 3.2 %, whereas the prognosis of January 2016 showed a growth of 3.4% and the prognosis of October 2015 showed 3.6%. For advanced economies, a growth of 1.9 % is projected for the current year and 2.0% for the next year. For the Euro area, a development of 1.5 % is projected for 2016. For the year 2017, the IMF anticipates a global economic growth of 3.5 % and for the Euro area a growth of 1.6 %.
For emerging markets and developing economies, a growth in economic output of 4.1 % is projected for the year 2016 and a growth of 4.6 % for the year 2017. For China, a growth rate of 6.5 % for the year 2016 and 6.2 % for the year 2017 is projected. The highest growth rate is expected for India, with 7.5 % for the current and the next year.
Concentration on listing in Prime Market
Employees as of reporting date
Dec. 31, 2015 4.553
Mar. 31, 2016 4.658
IMF lowered prognosis for global economic growth
EBIT of the
After the successful merger in June 2015 the comparability with the previous year's figures is possible because the consolidated financial statements of CROSS Industries AG are used.
In the first quarter of 2016 the CROSS Industries Group achieved revenues in the amount of 333.4 m€ (previous year: 312.4 m€) and an EBIT in the amount of 34.3 m€, which increased by approximately 22% (previous year: 28.1 m€).
The KTM Group was able to increase sales in the first quarter 2016 to 48,455 vehicles (+15.8% to the previous year), including the sales of the DUKE 200 and DUKE 390, RC 200 and RC 390 by KTM's partner Bajaj in India. The revenues increased to 278.8 m€ (+11.7% compared to previous year). Through this rise in sales and revenues KTM could increase its EBIT to 25.1 m€ compared to 21.7 m€ in the previous year (+15.7% to the previous year) and thus achieved an EBIT margin of 9.0% in the first quarter 2016.
The Pankl Group achieved revenues in the amount of 48.8 m€ in the first quarter of the business year 2016 and could therefore increase its revenues by 4.5% compared to the previous year's period (previous year: 46.7 m€). While the segment Racing/High Performance grew, the segment Aerospace was still affected by the difficult overall economic market environment. Compared to the previous year, the EBIT increased by 2% from 4.8 m€ in the first quarter 2015 to 4.9 m€ in the first three months of the business year 2016. The EBIT margin amounted to 10.1% (previous year: 10.4%).
The WP Group increased revenues in the first quarter 2016 by about 18% from 33.8 m€ in the comparison period of the previous year to a total of 40.0 m€. The increase in revenues was noted in almost all business segments and product groups. As a consequence of the higher revenues, the operating EBIT before extraordinary income increased by approximately 10% compared to the previous year and amounted to 2.2 m€ in the first quarter (previous year: 2.0 m€). Due to the disposal of a non-operating property and various other fixed assets, an extraordinary income in the amount of 2.8 m€ was achieved, which led, in total, to an EBIT of 5.0 €. Therefore the EBIT margin increased significantly from 5.8% to 12.4%. Adjusted for the sale of property an operating EBIT margin of 5.5% could be achieved. Purchase prices, especially within Asia, are still under pressure and lead to a burden of the operating margin.
in m€ Dec. 31, 2015 386,6 Mar. 31, 2016 380,3 The balance sheet total of the CROSS Industries Group increased from 1,177.6 m€ to 1,201.3 m€ compared to the financial statements of December 31, 2015 which is mainly attributable to the growth-related increase in trade receivables. As of balance sheet date March 31, 2016 equity decreased to 380.3 m€ compared to 386.6 m€ as of December 31, 2015. The decrease in equity is negatively influenced by acquisitions of shares in companies in the first quarter 2016. The net financial debt amounted to 428.5 m€.
Shareholder structure as of Mar. 31, 2016
Cash flow from operating activities amounted to -4.6 m€ in the first quarter 2016 and was below the previous year's figure of -75.1 m€. The improvement of the cash flow from operating activities is attributable to the positive group results as well as to the various measures of improving the working capital. The cash flow from investing activities amounted to -29.0 m€ in the first three months of the current business year. Taking into account the cash flow from financing activities in the amount of 7.9 m€, the liquid funds decreased by -26.3 m€ (including foreign currency effects in the amount of -0.5 m€) to 108.8 m€ in the first quarter 2016 compared to December 31, 2015.
The CROSS Industries share showed a very positive development during the last twelve months. As of March 31, 2016 the market capitalization for 225,386,742 shares admitted for trading amounted to 786.6 m€, even though the share declined slightly during the first quarter 2016. The share price closed at € 3.49 on the last trading day (March 31, 2016). The highest closing price in the first quarter 2016 was € 3.75; the lowest was € 3.35.
In this context we refer to the information given in the consolidated financial statements of December 31, 2015. Since then there have been no changes in evaluation risks.
In this context we refer to the notes of the interim financial statements.
In the business year 2016 the CROSS Industries Group still continues to focus on organic growth in its core areas through further expansion of market share and global growth, whereby the focus is on emerging markets. Within the corporate divisions the focus is on the mutual utilization of synergy potentials and on the further development of cooperative projects.
In the view of the current order situation the Management's assessment predicts a further positive development for the remaining business year 2016. As in the previous years the markets on the different continents will develop differently in the future. Therefore, continuous assessment and critical evaluation of the market-, production- and cost situation is emphasized in order to take immediate action for stabilizing the striven profit situation if necessary.
Within the KTM Group extensive investments will again be made in the business year 2016. Furthermore, work will begin on the construction of the KTM Experience World in Mattighofen, which will include a museum and demonstration workshop. KTM will make its debut in the MotoGP racing series in 2017. The team will be unveiled in August 2016 at the Austrian Grand Prix, which will be held at the Red Bull Ring in Spielberg.
For the subsequent quarters 2016 the Pankl Group expects a better racing business, a still difficult market environment for the helicopter business and in the high performance business an increase in the volatility, but still increase in efficiency and productivity.
For the business year 2016 the WP Group expects a significant increase in revenues compared to the previous year. This increase is expected across almost all segments of the group. Due to the extraordinary effect on earnings resulting from the property sale in the first quarter, a better result than in the previous year is expected for 2016.
Wels, in May 2016
The Management Board of CROSS Industries AG
Stefan Pierer, CEO Friedrich Roithner, CFO Alfred Hörtenhuber Wolfgang Plasser
Simplified presentation as of March 31, 2016
Other shareholdings: PF Beteiligungsverwaltungs GmbH 100% Network Performance Channel GmbH 100% Durmont Teppichbodenfabrik GmbH 24% Wethje Carbon Composites GmbH 18% ACstyria Autocluster GmbH 12.3%
The implementation of the global product strategy as well as the expansion into further Asian and South American markets has been consistently pursued in the first quarter of 2016. In the first quarter of 2016 KTM reported consolidated revenues amounting to 278.8 m€. Therefore, an increase of 11.7 % compared to the same period in previous year could be achieved. Taking into account the DUKE 200, DUKE 390, RC 200 and RC 390 sold by the partner Bajaj in India 48,455 vehicles were sold worldwide in the first quarter of 2016 (+15.8% compared to previous year). In the first three months of 2016 KTM showed an EBITDA of 37.6 m€ (+20.1% compared to previous year) and an EBIT of 25.1 m€ (+15.7% compared to previous year). Net result could be increased from 13.7 m€ in previous year to 17.0 m€ in the first quarter of 2016.
Already in 2015, KTM started the construction of a new motorsports building in Munderfing with planned investments of 13.2 m€. In the second quarter of 2016, the new building will be completed.
As of March 31, 2016 the number of employees amounted to 2,577.
In the first quarter of the business year 2016 the KTM share developed on a stable level and closed on the last trading day (March 31, 2016) at € 122.5 (December 31, 2015: € 122.0). Over the reporting period of three months the highest closing price was € 130.0; the lowest was € 122.5. The market capitalization for 10,845,000 shares admitted for trading amounted to 1,328.5 m€ as of March 31, 2016.
Although KTM expects the North American motorcycle market to enjoy significant growth in the current year and is also relatively bullish with regard to Europe, the emerging markets in South America and Asia are marked by numerous uncertainties. Asian markets are regarded to represent the biggest growth opportunities over the medium-term.
Shareholder structure KTM AG (March 31, 2016)
0.6% ................................ Freefloat
| Earnings figures | Q1 2015 | Q1 2016 | Chg. in % | |
|---|---|---|---|---|
| Revenues | in m€ | 249.5 | 278.8 | 12% |
| EBITDA | in m€ | 31.3 | 37.6 | 20% |
| EBIT | in m€ | 21.7 | 25.1 | 16% |
| Earnings after taxes | in m€ | 13.7 | 17.0 | 24% |
| Balance sheet figures | 31.12.2015 | 31.03.2016 | Chg. in % | |
|---|---|---|---|---|
| Balance sheet total | in m€ | 848.9 | 866.9 | 2% |
| Equity | in m€ | 379.8 | 397.3 | 5% |
| Equity ratio | 44.7% | 45.8% | - | |
| Net debt | in m€ | 97.2 | 135.7 | 40% |
| Gearing | 25.6% | 34.2% | - |
| Stock exchange figures | 31.12.2015 | 31.03.2016 | Chg. in % | |
|---|---|---|---|---|
| Number of shares | share | 10,845,000 | 10,845,000 | - |
| Market capitalization | in m€ | 1,323.1 | 1,328.5 | 0% |
| Closing price | in € | 122.0 | 122.5 | 0% |
In the first quarter 2016, Pankl Group achieved revenues in the amount of 48.8 m€, which was an increase of 4.5% versus the same period of the last year (Q1 2015: 46.7 m€). Operating earnings (EBIT) increased by 2% from 4.8 m€ to 4.9 m€, which corresponds to an EBIT margin of about 10%. In the first quarter of the business year 2016, earnings after taxes amounted to 3.6 m€ versus 4.0 m€ in the same period of the previous year.
While the Racing/High Performance segment experienced growth, the Aerospace segment continued to suffer from a difficult market environment. In the first quarter of 2016, the Racing/High Performance segment revenues increased by 7% and amounted to 43.2 m€ (Q1 2015: 40.4 m€); the operating earnings (EBIT) improved by 0.6 m€ to 4.5 m€. In the first quarter of 2016, the Aerospace segment revenues amounted to 5.7 m€ after 6.3 m€ in the same period of the previous year. This decline in revenues of 9% was due to the ongoing difficult market environment. Operating earnings (EBIT) amounted to 0.2 m€ after 0.4 m€ in the same period of the previous year.
As of March 31, 2016 the number of employees amounted to 1,419.
During the three-month period under review the highest closing price was € 30.0; the lowest was € 27.4. As of March 31, 2016 the Pankl share closed at € 28.0. The market capitalization for 3,150,000 shares admitted for trading amounted to 88.2 m€.
In the coming quarters Pankl expects a slightly improving motor racing business compared to last year, but a still challenging helicopter business. In the high performance division Pankl expects increasing volatility but also improving efficiency and productivity. In total, Pankl anticipates satisfactory results for the business year 2016. Preparations to build the new Kapfenberg high performance drivetrain facility are running on full speed.
Shareholder structure Pankl Racing Systems AG (March 31, 2016)
10.1% .... Unternehmens Invest AG 8.3% ................................ Freefloat
| Earnings figures | Q1 2015 | Q1 2016 | Chg. in % | |
|---|---|---|---|---|
| Revenues | in m€ | 46.7 | 48.8 | 5% |
| EBITDA | in m€ | 8.2 | 8.2 | 0% |
| EBIT | in m€ | 4.8 | 4.9 | 2% |
| Earnings after taxes | in m€ | 4.0 | 3.6 | -9% |
| Balance sheet figures | 31.12.2015 | 31.03.2016 | Chg. in % | |
|---|---|---|---|---|
| Balance sheet total | in m€ | 182.3 | 188.0 | 3% |
| Equity | in m€ | 82.9 | 75.3 | -9% |
| Equity ratio | 45.4% | 40.1% | - | |
| Net debt | in m€ | 69.1 | 63.9 | -8% |
| Gearing | 83.4% | 84.8% | - |
| Stock exchange figures | 31.12.2015 | 31.03.2016 | Chg. in % | |
|---|---|---|---|---|
| Number of shares | share | 3,150,000 | 3,150,000 | - |
| Market capitalization | in m€ | 86.6 | 88.2 | 2% |
| Closing price | in € | 27.5 | 28.0 | 2% |
The WP Group's operating business developed successfully in the first quarter of 2016. Compared to the record year 2015, revenues increased again by 18.4% to a new Q1 peak value in the amount of 40.0 m€. This increase in revenues could be realized in almost all business segments and product groups.
Prior consideration of extraordinary business transactions, an EBIT of 2.2 m€ was achieved. Due to the disposal of a non-operating property in Mattighofen and various other fixed assets, an extraordinary income in the amount of 2.8 m€ was achieved, which led, in total, to an EBIT of 5.0 € in the first quarter 2016. This is the best quarterly result in the history of the WP Group. The earnings before taxes amounted to 4.6 m€ and thus, were also above the previous year's level of 1.7 m€.
The further expansion of manufacturing capacities is of central significance for the development of the WP Group. In 2015, the construction of a new exhaust manufacturing, a development center for exhaust and framework systems and the WP motorsports center started.
As of March 31, 2016 the number of employees amounted to 651.
During the three-month period under review the highest closing price was € 19.75; the lowest € 13.65. As of March 31, 2016 the WP share closed at € 17.88. The market capitalization for 5,000,000 shares admitted for trading amounted to 89.4 m€ as of March 31, 2016.
For the business year 2016 a significant increase in revenues compared to the previous year is anticipated. This increase is expected across almost all segments of the group. Due to the extraordinary effect on earnings resulting from the property sale and various other fixed assets in the first quarter, a better result than in the previous year is expected for 2016.
Shareholder structure WP AG (March 31, 2016)
| Earnings figures | Q1 2015 | Q1 2016 | Chg. in % | |
|---|---|---|---|---|
| Revenues | in m€ | 33.8 | 40.0 | 18% |
| EBITDA | in m€ | 2.9 | 6.0 | >100% |
| EBIT | in m€ | 2.0 | 5.0 | >100% |
| Earnings after taxes | in m€ | 1.7 | 4.4 | >100% |
| Balance sheet figures | 31.12.2015 | 31.03.2016 | Chg. in % | |
|---|---|---|---|---|
| Balance sheet total | in m€ | 99.6 | 103.8 | 4% |
| Equity | in m€ | 42.3 | 46.6 | 10% |
| Equity ratio | 42.4% | 44.9% | - | |
| Net debt | in m€ | 20.0 | 22.3 | 12% |
| Gearing | 47.3% | 47.9% | - |
| Stock exchange figures | 31.12.2015 | 31.03.2016 | Chg. in % | |
|---|---|---|---|---|
| Number of shares | share | 5,000,000 | 5,000,000 | - |
| Market capitalization | in m€ | 70.5 | 89.4 | 27% |
| Closing price | in € | 14.1 | 17.9 | 27% |
for the first quarter of 2016 of CROSS Industries AG, Wels (condensed)
| Consolidated income statement for the first quarter 2016 | Q1 2016 | Q1 2015 |
|---|---|---|
| from January 1, 2016 until March 31, 2016 in k€ | ||
| Revenues | 333,442 | 312,425 |
| Cost of goods sold | -232,820 | -221,789 |
| Gross profit | 100,622 | 90,636 |
| Sales and racing expenses | -39,877 | -36,691 |
| Research and development expenses | -5,970 | -3,404 |
| Administration expenses | -18,202 | -18,256 |
| Other operating expenses | -6,295 | -4,345 |
| Other operating income Earnings from operating activities |
4,018 34,296 |
205 28,145 |
| Interest income | 463 | 345 |
| Interest expenses | -4,582 | -4,195 |
| Earnings from at-equity holdings | 0 | -348 |
| Other financial and investment income | -1,017 | -1,047 |
| Earnings before taxes | 29,160 | 22,900 |
| Income taxes | -6,241 | -6,414 |
| Result of the business year | 22,919 | 16,486 |
| thereof owners of the parent company | 13,596 | 7,749 |
| thereof non-controlling interests | 9,323 | 8,737 |
| Undiluted (=diluted) earnings per share (EUR) | 0.06 | 0.03 |
| Consolidated statement of comprehensive income for the first quarter 2016 | Q1 2016 | Q1 2015 |
| from January 1, 2016 until March 31, 2016 in k€ | ||
| Other income | ||
| Items that were reclassified into the income statement or that can be reclassified afterwards |
||
| Currency translation of foreign subsidiaries | -2,018 | 3,399 |
| Valuation of cash flow hedges | 1,775 | -1,168 |
| Deferred tax on the valuation of cash flow hedges | -444 | 292 |
| -687 | 2,523 | |
| Items that were not reclassified into the income statement | ||
| Revaluation of the net debt from defined benefit plans | -7 | -5 |
| Tax effect | 2 -5 |
1 -4 |
| Other income after taxes | -692 | 2,519 |
| Comprehensive income | 22,227 | 19,005 |
| thereof owners of the parent company | 13,047 | 8,920 |
| thereof non-controlling interests | 9,180 | 10,085 |
| Consolidated balance sheet as at March 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
|---|---|---|
| Assets in k€ | ||
| Non-current assets | ||
| Property, plant and equipment | 275,576 | 276,093 |
| Goodwill | 117,333 | 117,724 |
| Intangible assets | 215,444 | 207,805 |
| Financial assets accounted for using the equity method | 3,064 | 3,968 |
| Deffered tax assets | 7,883 | 7,160 |
| Receivables from affiliated companies | 245 | 105 |
| Other non-current assets | 27,063 | 26,360 |
| 646,608 | 639,215 | |
| Current assets | ||
| Inventories | 247,248 | 242,678 |
| Trade receivables | 137,936 | 110,831 |
| Receivables from affiliated companies | 8,017 | 6,084 |
| Receivables and other assets | 52,656 | 42,797 |
| Cash and cash equivalents | 108,808 | 135,124 |
| Assets held for sale | 0 | 855 |
| 554,665 | 538,369 | |
| 1,201,273 | 1,177,584 |
| Consolidated balance sheet as at March 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
|---|---|---|
| Consolidated equity and liabilities in k€ | ||
| Consolidated equity | ||
| Share capital | 225,387 | 225,387 |
| Capital reserves | 9,798 | 9,798 |
| Other reserves including retained earnings | -36,233 | -38,516 |
| Equity of the owner of the parent company | 198,952 | 196,669 |
| Non-controlling interests | 181,356 | 189,947 |
| 380,308 | 386,616 | |
| Non-current liabilities | ||
| Financial liabilities | 471,932 | 465,224 |
| Employee benefits | 21,461 | 20,905 |
| Deferred tax liabilities | 39,677 | 38,313 |
| Other non-current liabilities | 15,995 | 8,471 |
| 549,065 | 532,913 | |
| Current liabilities | ||
| Financial liabilities | 65,333 | 57,343 |
| Trade liabilities | 104,696 | 111,399 |
| Liabilities to affiliated companies | 6,371 | 2,158 |
| Provisions | 10,773 | 10,226 |
| Tax liabilities | 7,938 | 1,643 |
| Other current liabilities | 76,789 | 75,286 |
| 271,900 | 258,055 | |
| 1,201,273 | 1,177,584 |
| Condensed consolidated cash flow statement as at March 31, 2016 | Q1 2016 | Q1 2015 |
|---|---|---|
| in k€ | ||
| Consolidated cash flow from operating activities | ||
| Result of the business year | 22,919 | 16,486 |
| + (-) Interest expenses / Interest income |
4,119 | 3,850 |
| + Tax expenses |
6,241 | 6,414 |
| + (-) Depreciation / amortization of property, plant and equipment and intangible assets |
17,135 | 14,549 |
| + (-) Other non-cash expenses (income) |
-412 | 3,896 |
| 50,002 | 45,195 | |
| - (+) Increase (decrease) of the net current assets |
-52,111 | -116,539 |
| + Interest received |
451 | 331 |
| - Interest paid |
-2,241 | -2,342 |
| - Tax payments |
-730 | -2,269 |
| -4,629 | -75,624 | |
| Consolidated cash flow from investing activities | ||
| - Payments made for the acquisition of intangible assets and property, plant and equipment |
-30,112 | -24,696 |
| + Payments received from the disposal of intangible assets and property, plant and equipment |
1,086 | 226 |
| + (-) Payments received/made from other assets |
-15 | -1,191 |
| -29,041 | -25,661 | |
| Consolidated cash flow from financing activities | ||
| - Dividend payments to third parties |
0 | -3,394 |
| + (-) Disposal / Acquisition of non-controlling interests |
-4,520 | -704 |
| + (-) Increase (decrease) in financial liabilities |
12,378 | 50,518 |
| 7,858 | 46,420 | |
| Change in liquid funds within the Group | -25,812 | -54,865 |
| + Effect of foreign currency fluctuations |
-504 | -913 |
| + Opening balance of liquid funds within the Group |
135,124 | 89,404 |
| Closing balance of liquid funds within the Group | 108,808 | 33,626 |
| $\sim$ $\sim$ $\sim$ $\sim$ $\sim$ $\sim$ $\sim$ $\sim$ | |||
|---|---|---|---|
| tes | Statement of all legal representativ | |
|---|---|---|
| Consolidated statement of changes in equity | ||||
|---|---|---|---|---|
| in k€ | Share | Capital | Perpetual | Reserves including |
| capital | reserves | bond | retained earnings | |
| As at January 1, 2016 | ||||
| Comprehensive income | 225,387 | 9,798 | 0 | -36,789 |
| Profit for the business year | 0 | 0 | 0 | 13,596 |
| Other income | 0 | 0 | 0 | 0 |
| Comprehensive income | 0 | 0 | 0 | 13,596 |
| Transactions with shareholders | ||||
| Acquisition/disposal of shares in subsidiaries | 0 | 0 | 0 | -10,764 |
| As at March 31, 2016 | 225,387 | 9,798 | 0 | -33,957 |
| As at January 1, 2015 | ||||
| Comprehensive income | 1,332 | 137,825 | 58,987 | 11,425 |
| Profit for the business year | 0 | 0 | 0 | 7,749 |
| Other income | 0 | 0 | 0 | 0 |
| Comprehensive income | 0 | 0 | 0 | 7,749 |
| Transactions with shareholders | ||||
| Dividends to third parties | 0 | 0 | 0 | -3,094 |
| Acquisition/disposal of shares in subsidiaries | 0 | 0 | 0 | 270 |
| As at March 31, 2015 | 1,332 | 137,825 | 58,987 | 16,350 |
| Total | Non-controlling | Total | Reserve | Currency | IAS 19 reserve | IAS 39 |
|---|---|---|---|---|---|---|
| consolidated | interests | for treasury | translation | for actuarial | reserve | |
| equity | shares | adjustments | losses | |||
| 386,616 | 189,947 | 196,669 | -101 | 1,761 | -3,401 | 14 |
| 22,919 | 9,323 | 13,596 | 0 | 0 | 0 | 0 |
| -692 | -143 | -549 | 0 | -1,204 | -7 | 662 |
| 22,227 | 9,180 | 13,047 | 0 | -1,204 | -7 | 662 |
| -28,535 | -17,771 | -10,764 | 0 | 0 | 0 | 0 |
| 380,308 | 181,356 | 198,952 | -101 | 557 | -3,408 | 676 |
| 370,928 | 166,601 | 204,327 | 0 | 605 | -3,544 | -2,303 |
| 16,486 | 8,737 | 7,749 | 0 | 0 | 0 | 0 |
| 2,519 | 1,348 | 1,171 | 0 | 1,621 | -2 | -448 |
| 19,005 | 10,085 | 8,920 | 0 | 1,621 | -2 | -448 |
| -3,394 | -300 | -3,094 | 0 | 0 | 0 | 0 |
| -704 | -974 | 270 | 0 | 0 | 0 | 0 |
| 385,834 | 175,412 | 210,422 | 0 | 2,226 | -3,546 | -2,751 |
CROSS Industries AG has its headquarter in 4600 Wels, Edisonstraße 1, and is registered with the commercial register at the regional court Wels as commercial court, under the registration number FN 78112 x.
The corporate purpose of CROSS Industries AG is to act as a holding company, with a particular focus on the acquisition and administration of industrial companies as well as companies and shareholdings in industrial companies, the management of companies and shareholdings being part of the CROSS Industries Group, the performance of services for these companies (group services) as well as, in general, services in the field of management consultancy.
In the first quarter of 2016 CROSS Industries AG increased its shares in Pankl Racing Systems AG by 10.1%, in WP AG by 10.2% and in KTM AG by 0.1%.
As of March 31, 2016 the major shareholdings are:
As of the effective date of the merger, January 1, 2015, CROSS Industries AG as transferring company was merged into BF HOLDING AG as receiving company. The merger took place on June 2, 2015. From an economic point of view and analogous to the regulations for reverse acquisitions a takeover by the receiving company BF HOLDING AG through the transferring company CROSS Industries AG takes place in the course of the merger process. Therefore, the figures of the previous year's consolidated financial statements of CROSS Industries AG are presented as comparative values.
The condensed interim consolidated financial statement for the reporting period from January 1 until March 31, 2016 of CROSS Industries AG were prepared in accordance with the International Financial Reporting Standards (IFRS), to the extent used in the EU, applying IAS 34 (interim reporting).
The condensed interim consolidated financial statements for the first three months 2016 were neither audited nor reviewed by an auditor.
The condensed interim consolidated financial statements do not include all of the notes and disclosures required for year-end consolidated financial statements and should therefore be read in conjunction with the consolidated financial statements as of December 31, 2015.
The interim consolidated financial statements are prepared in Euros, which is the functional currency of the parent company. Unless otherwise indicated, all amounts are given in 1,000,000 Euros (m€) rounded to one decimal place, whereby rounding differences can occur.
Through the application of automated calculating tools rounding differences can occur with accumulation of rounded figures and with percentages.
The balancing and valuation methods of the consolidated financial statements of December 31, 2015 remain fundamentally unchanged. For further information on balancing and valuation methods, please refer to the consolidated financial statements of the business year 2015, which form the basis for this interim consolidated financial report of the first quarter 2016.
The accounts of the companies included in the condensed interim consolidated financial statements, are subject to uniform accounting principles. These principles were applied by all companies included in the consolidated financial statements.
Pursuant to IAS 34, income tax expenses for the interim consolidated financial statements have been calculated using the average annual tax rate expected for the business year as a whole.
The following revised IFRS standards were to be applied in the reporting period for the first time:
The new, revised or adjusted standards and interpretations that will be effective for the first time in the business year 2016 have no or no significant impact on the presentation of the assets, financial and earnings position of these interim consolidated financial statements.
All major subsidiaries that are either legally or factually under the control of CROSS Industries AG are included in the interim consolidated financial statements as of March 31, 2016.
The scope of consolidation has not changed in the first quarter 2016 compared to December 31, 2015.
To a certain extent, estimates and assumptions have to be made in the consolidated financial statements. These estimates have an impact on the balance sheet assets and liabilities, the disclosure of contingent liabilities at the balance sheet date, and the reporting of expenses and income in the business year. The management refers to empirical data that is considered adequate. The subsequent actual amounts may then differ from such estimates, if parameters do not develop according to expectations. New conditions will be considered when arising and assumptions will be adjusted.
Estimates and uncertainties with regard to discretionary decisions are explained in the consolidated financial statements of CROSS Industries AG as of December 31, 2015 under item (6) accounting policies.
At KTM AG seasonality effects occur due to a different seasonality of offroad- and street motorcycles. In the street segment, there are higher sales in the first half of the year, whereas in the offroad division, the main focus is on the second half of the year. Due to the increasing importance of the street segment in total revenues, seasonal effects are straightened over the year to a great extent. At Pankl Racing Systems AG seasonal fluctuations exist in the segments Racing/High Performance because the racing season for the essential racing categories starts in spring and is due in autumn. Consequently the first quarter tends to be the strongest one.
In the first quarter 2016 the group revenues amounted to 333.4 m€. This corresponds to an increase of 21.0 m€ respectively 6.7% compared to the same period of the previous year. KTM Group (+11.7%), Pankl Group (+4.5%) as well as WP Group (+18.4%) achieved growth in revenues. In the CROSS Industries Group the EBIT for the first quarter 2016 increased by 21.9% to 34.3 m€ compared to the previous year. This corresponds to an EBIT margin of 10.3% (previous year: 9.0%). The EBIT includes an income deriving from the sale of a non-operating property and various other fixed assets in the amount of 2.8 m€.
The earnings after taxes amounted to 22.9 m€ (+39.0% to the previous year). Thereof KTM Group achieved a result in the amount of 17.0 m€, Pankl Group 3.6 m€ and WP Group 4.4 m€. The other companies (incl. consolidation effects) achieved a result in the amount of -2.1 m€.
The currency-translation differences that have no effect on income, in the amount of -2.0 m€ in the reporting period (including non-controlling interests) result mainly from the US Dollar as well as the British Pound. In the reporting period the cash flow hedge reserve increased the equity by 1.3 m€.
The number of shares of CROSS Industries AG amounts to 225,386,742. As of March 31, 2016 the company held 61,030 treasury shares. For a greater comparability the number of shares in the amount of 225,386,742 had been taken as a basis for the previous-year's period in order to calculate the earnings per share.
The balance sheet total increased by 2.0% compared to December 31, 2015 from 1,177.6 m€ to 1,201.3 m€ and is mainly attributable to the increase in trade receivables because of revenue growth. Corresponding to the growth in revenues the working capital increased in the first quarter 2016 by 19.4% to 290.3 m€.
As of the reporting date the equity amounts to 380.3 m€ and declined by 6.3 m€ compared to December 31, 2015. On the one hand, due to the result for the period in the amount of 22.9 m€, the equity increased; on the other hand, acquisitions of non-controlling interests in subsidiaries in the amount of 28.5 m€ led to a decrease in equity. As of the reporting date the equity ratio amounts 31.7% (Dec. 31, 2015: 32.8%).
In the first quarter the group liquid funds decreased by 26.3 m€ to 108.8 m€. The change is comprised of the cash flow from operating activities in the amount of -4.6 m€, the cash flow from investing activities in the amount of -29.0 m€ as well as the cash flow from financing activities in the amount of +7.9 m€. The impact of exchange rate changes amounted to -0.5 m€.
The improvement of the cash flow from operating activities is caused by the positive consolidated results as wells as by various measures in order to improve the working capital.
The time value (fair value) of a financial instrument is based on quoted market prices for an identical financial instrument in an active market (step 1). If there are no quoted market prices available on active markets for the financial instrument, then the time value shall be based on valuation methods with the major parameters being derived from observed market data only (step 2). In any other event, the time value shall be derived from valuation methods with at least one parameter not being based on observed market data (step 3).
The following table shows the carrying amounts and fair values of the financial assets (financial instruments shown on the assets side), broken down by class or measurement category according to IAS 39. But it does not provide information on financial instruments not measured at fair value where the carrying amount is a reasonable approximation of fair value.
| Book value Mar. 31, 2016 |
Fair value Mar. 31, 2016 |
Fair value | ||||
|---|---|---|---|---|---|---|
| in m€ | Level 1 | Level 2 | Level 3 | Total | ||
| Loans and receivables | ||||||
| Cash and cash equivalents | 108.8 | |||||
| Trade receivables | 137.9 | |||||
| Receivables from affiliated companies | 8.3 | |||||
| Other financial assets (current and non-current) | 28.2 | |||||
| Financial assets - loans | 1.9 | |||||
| Total | 285.1 | |||||
| Available for sale | ||||||
| Other non-current financial assets | 18.8 | |||||
| Total | 18.8 | |||||
| Held for trading | ||||||
| Other current assets - securities | 1.7 | 1.7 | 1.7 | 0.0 | 0.0 | 1.7 |
| Total | 1.7 | |||||
| Fair value - hedging instruments | ||||||
| Other current assets - derivatives with | 7.0 | 7.0 | 0.0 | 7.0 | 0.0 | 7.0 |
| positive market value | ||||||
| Total | 7.0 | |||||
| Total | 312.6 |
| Book value Dec. 31, 2015 |
Fair Value Dec. 31, 2015 |
Fair value | ||||
|---|---|---|---|---|---|---|
| in m€ | Level 1 | Level 2 | Level 3 | Total | ||
| Loans and receivables | ||||||
| Cash and cash equivalents | 135.1 | |||||
| Trade receivables | 110.8 | |||||
| Receivables from affiliated companies | 6.2 | |||||
| Other financial assets (current and non-current) | 26.2 | |||||
| Financial assets - loans | 2.0 | |||||
| Total | 280.4 | |||||
| Available for sale | ||||||
| Other non-current financial assets | 17.9 | |||||
| Total | 17.9 | |||||
| Held for trading | ||||||
| Other current assets - securities | 1.6 | 1.6 | 1.6 | 0.0 | 0.0 | 1.6 |
| Total | 1.6 | |||||
| Fair value - hedging instruments | ||||||
| Other current assets - derivatives with positive market value |
3.6 | 3.6 | 0.0 | 3.6 | 0.0 | 3.6 |
| Total | 3.6 | |||||
| Total | 303.5 |
The following table shows the carrying amounts and fair values of the financial liabilities (financial instruments shown on the liabilities side), broken down by class or measurement category according to IAS 39. But it does not provide information on financial liabilities not measured at fair value where the carrying amount is a reasonable approximation of fair value.
| Book value | Fair Value | |||||
|---|---|---|---|---|---|---|
| Mar. 31, 2016 | Mar. 31, 2016 | Fair value | ||||
| in m€ | Level 1 | Level 2 | Level 3 | Total | ||
| At amortized cost | ||||||
| Interest bearing liabilities | 346.9 | 361.0 | 0.0 | 0.0 | 361.0 | 361.0 |
| Bonds | 168.2 | 167.0 | 156.4 | 0.0 | 10.6 | 167.0 |
| Liabilities finance lease | 22.2 | |||||
| Trade liabilities | 104.7 | |||||
| Liabilities towards affiliated companies | 6.4 | |||||
| Other financial liabilities (current and non-current) | 42.2 | |||||
| Total | 690.5 |
| Book value Mar. 31, 2016 |
Fair Value Mar. 31, 2016 |
Fair value | ||||
|---|---|---|---|---|---|---|
| in m€ | Level 1 | Level 2 | Level 3 | Total | ||
| Held for trading | ||||||
| Other financial liabilities - derivatives with negative market value |
0.5 | 0.5 | 0.0 | 0.5 | 0.0 | 0.5 |
| Total | 0.5 | |||||
| Fair value - hedging instruments | ||||||
| Other financial liabilities - derivatives with negative market value (cash flow hedge) |
2.0 | 2.0 | 0.0 | 2.0 | 0.0 | 2.0 |
| Total | 2.0 | |||||
| Total | 693.0 |
| Book value Dec. 31, 2015 |
Fair Value Dec. 31, 2015 |
Fair value | ||||
|---|---|---|---|---|---|---|
| in m€ | Level 1 | Level 2 | Level 3 | Total | ||
| At amortized cost | ||||||
| Interest bearing liabilities | 329.6 | 342.2 | 0.0 | 0.0 | 342.2 | 342.2 |
| Bonds | 170.5 | 178.5 | 167.9 | 0.0 | 10.6 | 178.5 |
| Liabilities finance lease | 22.5 | |||||
| Trade liabilities | 111.4 | |||||
| Liabilities towards affiliated companies | 2.2 | |||||
| Other financial liabilities (current and non-current) | 41.3 | |||||
| Total | 677.5 | |||||
| Held for trading | ||||||
| Other financial liabilities - derivatives with negative market value |
0.6 | 0.6 | 0.0 | 0.6 | 0.0 | 0.6 |
| Total | 0.6 | |||||
| Fair value - hedging instruments | ||||||
| Other financial liabilities - derivatives with negative market value (cash flow hedge) |
2.9 | 2.9 | 0.0 | 2.9 | 0.0 | 2.9 |
| Total | 2.9 | |||||
| Total | 681.0 |
Concerning the valuation technique reference is made to the consolidated financial statements of CROSS Industries AG as of December 31, 2015, pointed out in 34.2 (Classification and fair value).
CROSS Industries AG comprises the segments KTM, PANKL, WP as well as Other and are explained below:
KTM Group handles the development, production and the distribution of motorized leisure devices (power sports), especially under the brands "KTM" and "Husqvarna" and holds shares in enterprises in development, production and distribution of such devices.
Pankl Group is specialized in the production of high-strength lightweight components for special niche markets such as the international racing industry, the international luxury and high performance street vehicle industry. Pankl mainly concentrates on developing, improving and testing of products.
WP Group operates in the motorcycle supplier sector. The WP Group develops, produces and distributes suspension elements, frames, radiators as well as exhaust systems at its headquarter in Munderfing, Austria.
In the segment "Other" both holding companies CROSS Industries AG and CROSS KraftFahrZeug Holding GmbH are presented. In the previous year's period Durmont Teppichbodenfabrik GmbH was included, which was deconsolidated in April 2015.
Revenues, operating earnings, investments and depreciations can be divided into the described segments as follows:
| Segment reporting Q1 2016 | ||||||
|---|---|---|---|---|---|---|
| in m€ | KTM | PANKL | WP | Other | Consolidation | GROUP |
| Revenues (including revenues within | ||||||
| the segments) | 278.8 | 48.8 | 40.0 | 1.4 | -35.7 | 333.4 |
| Revenues external | 278.7 | 47.2 | 7.4 | 0.1 | 0.0 | 333.4 |
| Earnings from operating activities | 25.1 | 4.9 | 5.0 | -0.7 | 0.0 | 34.3 |
| Investments | 24.1 | 2.0 | 1.1 | 0.0 | 0.0 | 27.2 |
| Depreciation | 12.5 | 3.2 | 1.0 | 0.3 | 0.0 | 17.1 |
| Segment reporting Q1 2015 | ||||||
|---|---|---|---|---|---|---|
| in m€ | KTM | PANKL | WP | Other | Consolidation | GROUP |
| Revenues (including revenues within | ||||||
| the segments) | 249.5 | 46.7 | 33.8 | 12.8 | -30.4 | 312.4 |
| Revenues external | 249.3 | 45.7 | 6.5 | 11.0 | 0.0 | 312.4 |
| Earnings from operating activities | 21.7 | 4.8 | 2.0 | -0.4 | 0.0 | 28.1 |
| Investments | 21.7 | 3.4 | 1.9 | 0.2 | 0.0 | 27.2 |
| Depreciation | 9.6 | 3.3 | 0.9 | 0.7 | 0.0 | 14.5 |
In the first quarter of 2016 CROSS Industries AG purchased 318,150 shares in Pankl Racing Systems AG in the amount of 8.9 m€ of Pierer Industrie AG. As of March 31, 2016 liabilities in the amount of 6.0 m€ exist towards Pierer Industrie AG.
In the first three months of the business year 2016 a non-operating property was sold to PIERER IMMOREAL GmbH in the amount of 4.7 m€. The purchase price was paid in April 2016.
All products and services rendered and received from related companies and individuals as stated in the consolidated financial statements as of December 31, 2015 are carried out at arm's lengths. As of March 31, 2016 there have been no material changes.
On April 21, 2016 the annual general meetings of KTM AG and WP AG took place. Both, the Management Board of KTM AG and the Management Board of WP AG have been authorized to withdraw the shares of KTM AG from the Third Market (MTF) of the Vienna Stock Exchange, respectively the shares of WP AG from the Regulated Market of the Vienna Stock Exchange (Delisting).
The shares of KTM AG will be withdrawn from the Third Market (MTF) of the Vienna Stock Exchange with effect as of the end of June 24, 2016. CROSS KraftFahrZeug Holding GmbH is the majority shareholder of KTM AG. On March 29, 2016 CROSS KraftFahrZeug Holding GmbH announced a public purchase offer to all free-float shareholders of KTM AG as an accompanying measure to the delisting of the shares of KTM AG from the Third Market of the Vienna Stock Exchange. Free-float shareholder of KTM AG can accept the offer in the period from April 29, 2016 to June 10, 2016. The offer price amounts to EUR 122.50 per share of KTM AG.
The shares of WP AG will be withdrawn from the Regulated Market with effect as of the end of June 10, 2016. CROSS Industries AG is the majority shareholder of WP AG. On March 29, 2016 CROSS Industries AG announced a voluntary public takeover offer to all shareholders of WP AG as an accompanying measure to the delisting of the shares of WP AG from the Regulated Market of the Vienna Stock Exchange. Shareholders of WP AG can accept the offer in the period from April 21, 2016 to May 25, 2016. The offer price amounts to EUR 18 per share of WP AG.
The management board of CROSS Industries AG hereby certifies that to the best of their knowledge the abbreviated interim financial statements for the first quarter of 2016 provide a true and fair view of the group's financial situation and profitability and were set up in accordance with the appropriate financial reporting standards. The interim consolidated management report provides a true and fair view of the group's financial situation and profitability taking into account the major events of the first three months of the business year as well as the major risks and uncertainties, the company is subject to, in the remaining nine months.
Wels, in May 2016
The Management Board of CROSS Industries AG
Stefan Pierer, CEO Friedrich Roithner, CFO Alfred Hörtenhuber Wolfgang Plasser
| May 13, 2016 | Report on the 1st quarter 2016 |
|---|---|
| August 26, 2016 | Report on the 1st half-year 2016 |
| November 11, 2016 | Report on the 3rd quarter 2016 |
| AT0000820659 |
|---|
| Vienna Stock Exchange: CIAG |
| CIAG:VI |
| CIAG:AV |
| No-par-value ordinary bearer shares |
Owner and publisher CROSS Industries AG Edisonstraße 1 4600 Wels, Austria FN 78112 x / Landes- und Handelsgericht Wels
Graphic realization: Grafik-Buero Elena Gratzer, 4600 Wels
While every care was taken in compiling this financial report and checking that the date it contains is correct, slight differences in totals from adding up rounded amounts and percentages, typographical errors and misprints cannot be excluded.
This report and the forward-looking statements it contains were prepared on the basis of all the data and information available at the time of going to press. We wish to point out, however, that various factors may cause the actual results to deviate from forward-looking statements given in the report.
Edisonstraße 1, 4600 Wels Telefon: +43 (0)7242 / 69402 Fax: +43 (0)7242 / 69402 / 109 [email protected] www.crossindustries.at
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.