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Semperit AG Holding

Interim / Quarterly Report Nov 18, 2021

760_rns_2021-11-18_90469da1-f220-4691-b69b-f9d57d7fb644.pdf

Interim / Quarterly Report

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Report on the first three quarters | 2021

Key performance figures

in EUR million Q1-3 2021 Change Q1-3 2020 Q3 2021 Veränderung Q3 2020 2020
Revenue 926.1 40.9% 657.2 265.3 11.4% 238.2 927.6
EBITDA 324.3 >100% 118.5 76.8 26.0% 60.9 208.6
EBITDA margin 35.0% +17.0 PP 18.0% 28.9% +3.4 PP 25.6% 22.5%
EBIT 290.0 81.9% 159.5 65.4 38.5% 47.2 237.8
EBIT margin 31.3% +7.1 PP 24.3% 24.7% +4.8 PP 19.8% 25.6%
Earnings after tax 224.1 63.2% 137.3 50.2 40.9% 35.6 194.6
Earnings per share (EPS)1), in EUR 10.85 70.1% 6.38 2.43 47.1% 1.65 9.06
Gross cash flow 295.7 >100% 107.0 65.2 0.13 57.4 193.7
Return on equity2) 58.7% 18% 49.6% 19.7% –49% 38.9% 58.0%

Balance sheet key figures

in EUR million 30.09.2021 Change 30.09 2020 30.06.2021 Change 30.06.2020 31.12.2020
Balance sheet total 974.1 26.0% 772.8 934.6 16.7% 801.0 764.4
Equity 507.8 38.5% 366.7 453.8 24.0% 365.8 332.3
Equity ratio 52.1% +4.7 PP 47.4% 48.6% +2.9 PP 45.7% 43.5%
Additions to tangible and
intangible assets
33.1 >100% 16.0 22.0 >100% 10.6 28.5
Employees (at balance sheet
date)
7,027 1.5% 6,921 6,956 –1.3% 7,047 6,943

Sector and segment key figures

in EUR million Q1-3 2021 Change Q1-3 2020 Q3 2021 Change Q3 2020 2020
Industrial Sector = Semperflex + Sempertrans + Semperform + Semperseal
Revenue 409.4 11.0% 369.0 141.3 18.0% 119.8 478.4
EBITDA 64.5 –1.2% 65.3 23.2 13.0% 20.5 76.6
EBIT 46.0 70.9% 26.9 17.0 15.7% 14.7 32.4
Semperflex
Revenue 172.1 18.7% 145.0 57.7 23.8% 46.6 189.9
EBITDA 37.4 7.6% 34.8 11.2 –2.4% 11.4 41.9
EBIT 29.0 10.0% 26.4 8.4 –3.4% 8.7 30.9
Sempertrans
Revenue 79.2 –12.4% 90.3 28.0 –1.3% 28.4 113.1
EBITDA 6.5 –25.7% 8.7 4.7 >100% 2.1 8.7
EBIT 3.9 >100% –14.0 3.8 >100% 1.6 –14.9
Semperform
Revenue 66.7 7.2% 62.2 23.3 13.9% 20.4 81.8
EBITDA 9.9 –20.2% 12.4 3.3 –18.2% 4.0 15.0
EBIT 7.1 –26.6% 9.7 2.3 –24.1% 3.1 11.3
Semperseal
Revenue 91.4 27.9% 71.5 32.4 32.9% 24.4 93.6
EBITDA 10.7 14.3% 9.4 4.1 39.6% 2.9 11.0
EBIT 5.9 21.4% 4.9 2.5 77.3% 1.4 5.1
Medical Sector = Sempermed
Revenue 516.7 79.3% 288.2 124.0 4.7% 118.4 449.2
EBITDA 277.4 >100% 67.3 56.9 28.3% 44.4 150.4
EBIT 262.6 78.1% 147.5 52.1 41.6% 36.8 224.9

Note: Rounding differences in the totalling of rounded amounts and percentages may arise from the use of automatic data processing.

1) Earnings per share are only attributable to the core shareholders of Semperit AG Holding (excl. remuneration from hybrid capital).

Group Management Report

The publicly listed Semperit Group once again recorded outstanding results up to September 30, 2021 amid difficult market conditions worldwide. Continuing the trend seen this year to date, Semperit is posting excellent revenue and earnings figures for Q1-3 and are on track to achieve an all-time record result for the full year 2021.

Development of the raw materials markets

On average in the first three quarters of 2021, prices on the relevant Asian commodity exchanges for natural rubber (relevant for Sempertrans) and natural latex (relevant for Sempermed) were significantly higher than those in the comparable period (natural rubber +32% and natural latex +26%).

In the period from January to September 2021, the average prices for the essential basic raw material butadiene (relevant for all segments) were significantly higher in both Asia and Europe (each +89%) than in the same period of the previous year. This, combined with a supply shortage in the face of strong demand, led to a further sharp rise in the prices of butadiene derivatives, such as butadiene rubber, styrene butadiene rubber, and nitrile butadiene rubber.

Prices for nitrile latex, the most important raw material for Sempermed, were more than twice as high (+107%) on average in the first three quarters of 2021 as in the comparable period of 2020.

For the filler carbon black, which is used in the entire Industrial Sector, the price development of "Heavy Fuel Oil (HFO)" is a relevant price indicator, which in turn correlates with the general development of the price of crude oil: the average value in the 2021 reporting period was more than 50% higher than in 2020. Due to this development and a tight supply situation, as well as significantly increased energy and logistics costs, carbon black prices have moved significantly upwards from Q1 to Q3 2021.

The prices for wire rod – this raw material is relevant for the Semperflex, Sempertrans, and Semperform segments – remain at record levels. The demand for high-carbon steel products is very high, especially in Europe. While the prices for commodities such as coal, zinc, or copper are rising, the price of iron ore has settled back to a level of around USD 120/t after peaking at around USD 220/t in June 2021.

Global steel production continues to run at full capacity. For the most part, additional quantities cannot be supplied. In China, policy-steering interventions are already being implemented. As a result, export prices remain at a very high level against a backdrop of very high demand and reduced supply.

In addition to the raw material prices, sharply rising energy prices are becoming additional cost drivers.

Semperit ensures that the raw materials required for production are secured through a multiple sourcing strategy. As a result of the market dynamics described above, the prices of essential raw materials are rising continuously, and reliably securing the required raw material quantities remains a challenging task.

Revenue and earnings performance

First three quarters of 2021

Key figures Semperit Group

in EUR million Q1-3 2021 Change Q1-3 20201) 20201)
Revenue 926.1 40.9% 657.2 927.6
EBITDA 324.3 >100% 118.5 208.6
EBITDA margin 35.0% +17.0 PP 18.0% 22.5%
EBIT – adjusted 290.0 >100% 92.6 171.4
EBIT margin – adjusted 31.3% +17.2 PP 14.1% 18.5%
EBIT 290.0 81.9% 159.5 237.8
EBIT margin 31.3% +7.1 PP 24.3% 25.6%
Earnings after tax – adjusted 224.1 >100% 62.6 121.9
Earnings after tax 224.1 63.2% 137.3 194.6
Additions to intangible assets and property,
plant and equipment 33.1 >100% 16.0 28.5
Employees (at balance sheet date) 7,027 1.5% 6,921 6,943

1) Adjusted for the positive non-recurring effect from the reversal of an impairment loss in the Sempermed segment (2020: EBIT effect: EUR +86.2 million; earnings after taxes effect: EUR +88.8 million; Q1-Q3 2020: EBIT effect: EUR +86.7 million; earnings after taxes effect: EUR +91.9 million) and by the negative non-recurring effect from the impairment in the Sempertrans segment (2020: EBIT effect:

EUR –19.8 million; earnings after taxes effect: EUR –16.1 million; Q1-Q3 2020: EBIT effect: EUR -19.9 million; earnings after taxes effect:

EUR –16.2 million)

In the first three quarters of 2021, the Semperit Group posted a 40.9% increase in revenue to EUR 926.1 million compared to the same period of the previous year. Revenue in the Industrial Sector grew by 11.0% to EUR 409.4 million and by 79.3% to EUR 516.7 million in the Medical Sector. The increase in revenue in the Industrial Sector was driven in particular by higher sales volumes in the Semperflex and Semperseal segments, which more than compensated for the decline in sales volumes in the Sempertrans segment. The increases in sales volumes at Semperflex are attributable to the positive development of the markets as well as gains in global market share in hydraulic and industrial hoses, while the sales volume at Semperseal increased due to the economic recovery of the European markets, increased activity and the initial consolidation of M+R Dichtungstechnik GmbH. In contrast, sales volumes in the Medical Sector declined due to the limited availability of containers; however, the continuing significantly higher sales prices due to the special economic situation in the light of the coronavirus pandemic more than compensated for this. Production volumes were also significantly lower than the previous month's volumes due to regulatory restrictions from the Enhanced Movement Control Order (EMCO) in Malaysia, as well as of the resultant partial production shutdown restriction in July 2021.

In Q1-3 2021, the Industrial Sector generated 44% of the Semperit Group's revenue and the Medical Sector generated 56%. This represents a shift compared to the same period in the previous year, in which the ratio of revenue volumes was reversed.

The inventory of own products increased by EUR 26.0 million due to the increase in the first three quarters of 2021 due to the increase in the warehouse stock of own products, in particular in the Sempermed segment, as a result of the scarce container availability as well as the significantly increased global transport times (Q1-3 2020: decline of EUR 3.0 million).

Other operating income increased in total by EUR 1.9 million compared with the same period in the previous year. This increase of EUR 3.7 million is attributable to the positive deconsolidation effect, as a result of the reclassification of (historical) foreign currency differences in the consolidated income statement following the liquidation of Sempertrans Best (ShanDong) Belting Co. Ltd. (SBB). This was offset, among other items, primarily by the decline in government grants that were received as support payments in the course of the coronavirus crisis.

The cost of materials increased in Q1-3 2021 by EUR 72.4 million or +22.8% to EUR 390.6 million. The change was mainly due to higher raw material prices in both sectors as well as higher acquisition costs for purchased gloves in the Medical Sector. In the Industrial Sector, the higher cost of materials could only be passed to customers with a time lag, which had a negative impact on profitability.

Personnel expenses increased in Q1-3 2021 to EUR 161.8 million (+3.5%). This was due primarily to the general increase in salary levels, voluntary severance payments, increased costs for temporary workers, as well as the initial consolidation of M+R Dichtungstechnik GmbH.

At EUR 86.0 million, other operating expenses were around +23.2% higher than the previous year's figure of EUR 69.8 million. The increase is primarily due to the rise in freight costs of around EUR 9.7 million and higher legal and consulting expenses for strategic projects in corporate development; this was offset by lower travel expenses as a result of reduced travel activities.

EBITDA in Q1-3 2020 almost tripled from EUR 118.5 million in Q1-3 2021 to EUR 324.3 million. The EBITDA margin was 35.0% (Q1-3 2020: 18.0%).

Depreciation, amortisation, and write-downs increased in Q1-3 2021 to EUR 34.3 million (+32.2%). This is essentially attributable to the reversal of an impairment loss recognised at the end of the first half of 2020 in the Sempermed segment. The impairment loss in the Sempertrans segment, which was also recognised at the end of the first half of 2020, had a slightly opposite effect.

EBIT almost doubled, rising to EUR 290.0 million in Q1-3 2021 from EUR 159.5 million in the same period of the previous year. Compared to the EBIT in Q1-3 2020 (EUR 92.6 million), which was adjusted for the impairment reversal in the Sempermed segment and the impairment loss in the Sempertrans segment, EBIT more than tripled in Q1-3 2021. The Semperit Group's EBIT margin increased from 24.3% (adjusted 14.1%) in Q1-3 2020 to the current 31.3%. The EBIT margins of the segments developed as follows: Sempermed 50.8% (Q1-3 2020: 51.2%, adjusted 21.1%), Semperflex 16.9% (Q1-3 2020: 18.2%), Sempertrans 5.0% (Q1-3 2020: –15.5%, adjusted 6.5%), Semperseal 6.5% (Q1-3 2020: 6.9%), and Semperform 10.7% (Q1-3 2020: 15.6%).

The financial result deteriorated in Q1-3 2021 by EUR 1.8 million compared to the same period in the previous year. Interest expenses fell by EUR 1.3 million, primarily due to the repayment of promissory note loans (Schuldscheindarlehen) in July 2020. The other financial result declined by around EUR 2.4 million due to a lower net foreign currency result: In Q1-3 2020, the net foreign currency result was equally burdened by the exchange rate development of the Czech koruna, the Polish zloty, and the US dollar. InQ1-3 2021, the negative net foreign currency result was due in fact to the development of the US dollar exchange rate.

The increase in the tax expense in Q1-3 2021 to EUR 54.3 million (Q1-3 2020: EUR 12.3 million) was primarily due to the special economic development and the resulting improvement in earnings in the Sempermed segment. The effective tax rate in Q1-3 2021 was 19.5% compared to 8.2% in the same period in the previous year. In Q1-3 2020, the effective tax rate was "distorted" by a positive effect of EUR 7.4 million from deferred taxes. Due to the development of the Sempermed segment, loss carryforwards and unused tax credits became recoverable at that time; in addition, there were deferral effects from the impairment of the Sempertrans segment.

Third quarter of 2021

Key figures Semperit Group / Third quarter

in EUR million Q3 2021 Q3 20201) Change Change in
EUR million
Revenue 265.3 238.2 11.4% 27.1
EBITDA 76.8 60.9 26.0% 15.8
EBITDA margin 28.9% 25.6% +3.4 PP -
EBIT – adjusted 65.4 49.2 32.9% 16.2
EBIT margin – adjusted 24.7% 20.7% +4.0 PP -
EBIT 65.4 47.2 38.5% 18.2
EBIT margin 24.7% 19.8% +4.8 PP -
Earnings after tax – adjusted 50.2 33.7 48.9% 16.5
Earnings after tax 50.2 35.6 40.9% 14.6
Additions to intangible assets and property,
plant and equipment
11.0 5.4 >100% 5.6
Employees (at balance sheet date) 7,027 6,921 1.5% 106.1

1) Q3 2020: Adjusted for the positive non-recurring effect from the reversal of an impairment loss in the Sempermed segment (EBIT effect: EUR –2.1 million; earnings after taxes effect: EUR –2.0 million) and by the negative non-recurring effect from the impairment in the Sempertrans segment (EBIT and earnings after taxes effect: EUR +0.1 million)

In Q3 2021 the Semperit Group posted an increase in revenue of 11.4% to EUR 265.3 million compared to the same period in the previous year (Q3 2020: EUR 238.2 EUR million). The Industrial Sector posted a revenue increase of 18.0%. This reflected both the necessary price increases and increased sales volumes. The Medical Sector posted a revenue increase of 4.7%. The positive effect of higher selling prices was offset by reduced sales volumes due to the production restriction in July as well as lower sales volumes due to a lack of container availability. Revenue in the Medical Sector in Q3 2021 was below the Q2 2021 level due to the decline in sales volumes, as well as the downward trend in sales prices.

Other operating income in Q3 2021 was positively affected by the non-recurring effect from the deconsolidation of Sempertrans Best (ShanDong) Belting Co. Ltd. (SBB) in the amount of EUR 3.7 million (see Note 2.3).

In Q3 2021, the cost of materials increased by 18.5% compared with Q3 2020 to EUR 116.7 million. The change was largely due to higher raw material prices in both the Medical and Industrial Sectors.

Other operating expenses increased in Q3 2021 to EUR 30.7 million (Q3 2020: EUR 21.6 million) in particular due to higher freight costs.

EBITDA increased as a result of positive result of the good performance of the Medical Sector from a total of EUR 60.9 million in the 2020 comparative period to EUR 76.8 million in Q3 2021.

Dividend

At the Annual General Meeting on 27 April 2021, a dividend of EUR 1.50 per share was resolved for the 2020 financial year. A total of EUR 30.9 million was distributed at the beginning of May. With a share price of EUR 24.30 at the end of 2020, the dividend yield is 6.2%. No dividend was distributed in 2020 for the 2019 financial year.

Assets and financial position

Balance sheet

The development of the balance sheet structure in Q3 2021 can be summarised as follows:

in EUR million 30.09.2021 Share 31.12.2020 Share Change
Non-current assets 368.6 38% 363.5 48% 1.4%
Current assets 605.5 62% 400.9 52% 51.0%
ASSETS 974.1 100% 764.4 100% 27.4%
Equity1) 509.1 52% 334.6 44% 52.1%
Non-current provisions and
liabilities
164.5 17% 163.0 21% 0.9%
Current provisions and liabilities 300.5 31% 266.8 35% 12.6%
EQUITY AND LIABILITIES 974.1 100% 764.4 100% 27.4%

1) including non-controlling interests

The increase in non-current assets is essentially attributable to additions to property, plant and equipment excluding right-of-use assets and intangible assets of EUR 29.2 million and the initial consolidation of M+R Dichtungstechnik GmbH in the amount of EUR 3.9 million (of which EUR 3.0 million in property, plant and equipment and EUR 0.9 million in intangible assets). Scheduled depreciation and amortisation had an opposite effect.

Current assets increased since 31. December 2020, in particular as a result of the EUR 36.1 million increase in inventory levels. This is attributable to increased inventory stocks of finished products due to limited container availability as well as more expensive raw material inventories, particularly in the Sempermed segment. In addition, other financial assets include short-term investments in USD fixedterm deposits in the amount of EUR 48.3 million. These investments have meanwhile been used for the repayment of promissory notes in November. Moreover, there was an increase in cash and cash equivalents of EUR 92.8 million. This item includes money market fund shares in the amount of EUR 59.7 million. In addition, current assets rose due to the EUR 12.0 million increase in trade receivables resulting from the growth in sales.

Equity increased due to the profits of the current period. This was offset by the repayment of the hybrid capital in Q1 2021 and the dividend payment in Q2 2021. The return on equity for the first three quarters of 2021 was 58.7% (first three quarters of 2020: 49.6%).

Non-current liabilities remained largely unchanged. The increase in current liabilities essentially resulted from the increase in the current tax liability. As of 30. September 2021, the Semperit Group had a net cash surplus of EUR 65.0 million, as cash and cash equivalents exceeded financial liabilities (net debt as of 31. December 2020: EUR 22.1 million). The arithmetical ratio of the net cash surplus (i.e., an arithmetically negative value of net debt) and EBITDA as at 30. September 2021 was thus –0.20x (31. December 2020: 0.11x).

The existing general lines of credit with a bank consortium and Österreichische Kontrollbank AG (OeKB) amounting to EUR 75 million and EUR 15 million, respectively, have not yet been used.

Cash flow

The development of the liquidity situation in the first three quarters of 2021 can be summarised as follows:

in EUR million Q1-3 2021 Change Q1-3 2020 2020
Cash flows from operating activities 240.3 >100% 110.6 192.9
Cash flows from investing activities –80.2 >100% –11.8 –16.7
Free cash flow 160.1 62.0% 98.8 176.2
Cash flows from financing activities –69.2 –10.5% –77.4 –161.3
Net increase / decrease in cash and cash
equivalents
90.9 >100% 21.4 14.9
Cash and cash equivalents at the end of the
period
237.8 51.2% 157.3 145.0

The cash flows from operating activities are due to the high earnings but were significantly reduced by the increase in trade working capital.

The cash flows from investing activities include the investments of USD fixed-term deposits in the amount of EUR 48.3 million (Q1-3 2020: EUR 0.0 million). As the investments in money market fund shares of EUR 59.7 million are now actively integrated into the Semperit Group's liquidity management, they are recognised as cash equivalents within liquid funds.

Cash expenditures on intangible assets and property, plant and equipment in Q1-3 2021 were EUR 31.2 million, above the previous year's level of EUR 17.4 million. The largest investments were made in Malaysia with EUR 11.9 million (Q1-3 2020: EUR 2.8 million), Austria with EUR 7.0 million (Q1-3 2020: EUR 3.6 million), Poland with EUR 4.2 million (Q1-3 2020: EUR 3.2 million), the Czech Republic with EUR 3.2 million (Q1-3 2020: EUR 1.3 million), and Germany with EUR 1.6 million (Q1-3 2020: EUR 4.3 million). The increase in investments was accompanied by a reduction in maintenance expenses.

Free cash flow for Q1-3 2021 was EUR 160.1 million compared to EUR 98.8 million in the same period in the previous year. If the free cash flow is adjusted for the investment in US dollar fixed-term deposits, the adjusted free cash flow for Q1-3 2021 would be EUR 208.3 million (Q1-3 2020: EUR 98.8million).

The cash flows from financing activities include in particular the dividend to the shareholders of Semperit AG Holding in the amount of EUR 30.9 million (Q1-3 2020: EUR 0.0 million the repayment of the hybrid capital in the amount of EUR 30.0 million (Q1-3 2020: EUR 20.0 million) the payment of hybrid coupons in the amount of EUR 0.8 million (Q1-3 2020: EUR 6.8 million) and the payment of interest on promissory note loans in the amount of EUR 3.0 million (Q1-3 2020: EUR 4.8 million).

Performance of sectors and segments

Industrial Sector

Key figures Industrial Sector

in EUR million Q1-3 2021 Change Q1-3 20201) Q3 2021 Change Q3 20201) 20201)
Revenue 409.4 11.0% 369.0 141.3 18.0% 119.8 478.4
EBITDA 64.5 –1.2% 65.3 23.2 13.0% 20.5 76.6
EBITDA margin 15.8% –1.9 PP 17.7% 16.4% –0.7 PP 17.1% 16.0%
EBIT – adjusted 46.0 –1.7% 46.8 17.0 16.8% 14.6 52.2
EBIT margin – adjusted 11.2% –1.4 PP 12.7% 12.0% –0.1 PP 12.2% 10.9%
EBIT 46.0 70.9% 26.9 17.0 15.7% 14.7 32.4
EBIT margin 11.2% +3.9 PP 7.3% 12.0% –0.2 PP 12.3% 6.8%
Additions to intangible assets and
property, plant and equipment
17.2 36.5% 12.6 5.5 40.8% 3.9 22.5
Employees (at balance sheet
date)
3,720 7.1% 3,474 3,720 7.1% 3,474 3,465

1) Q1-3 2020, Q3 2020 and 2020: adjusted for the negative non-recurring effect from the impairment in the Sempertrans segment (Q1-3'20 EBIT effect: EUR –19.9 million; Q3'20 EBIT effect: EUR +0.1 million; 2020: EBIT effect: EUR -19.8 million)

In the Industrial Sector, following the negative effects of the coronavirus crisis in 2020, a continuous recovery of the markets was observed in Q1-3 2021, although this occurred at different speeds in the individual segments. Improved incoming orders compared to the previous year also characterised Q3 2021 following an encouraging H1 2021. As a result of the continually increasing and currently generally very high level of raw materials prices, the margins of comparative periods, which were affected by particularly low raw materials prices in H1 2020, could not be maintained, with raw materials prices being below average in H1 2020 in particular.

Semperflex segment

Key figures Semperflex

in EUR million Q1-3 2021 Change Q1-3 2020 Q3 2021 Change Q3 2020 2020
Revenue 172.1 18.7% 145.0 57.7 23.8% 46.6 189.9
EBITDA 37.4 7.6% 34.8 11.2 –2.4% 11.4 41.9
EBITDA margin 21.7% –2.3 PP 24.0% 19.3% –5.2 PP 24.5% 22.1%
EBIT 29.0 10.0% 26.4 8.4 –3.4% 8.7 30.9
EBIT margin 16.9% –1.3 PP 18.2% 14.5% –4.1 PP 18.6% 16.3%
Additions to intangible assets and
property, plant and equipment
4.2 86.9% 2.2 1.9 80.4% 1.1 5.1
Employees (at balance sheet
date)
1,727 10.4% 1,564 1,727 10.4% 1,564 1,571

After 2020, which was negatively impacted by the effects of the coronavirus pandemic, Q1-3 2021 saw clear signs of a recovery in market demand. Semperflex customers showed significantly increased demand in Q3 2021. Supported by strong customer relationships, Semperflex achieved revenue gains together with its customers through product innovations and, as a consequence, gains in global market share. These developments are reflected in a significant increase in incoming orders and a well-filled order book at the end of Q3 2021. This applies to both hydraulic hoses and industrial hoses.

Revenue increased significantly both in Q1-3 2021 and in Q3 2021 thanks to positive demand as well as the necessary price adjustments that were triggered by rising raw material and logistics costs. The negative effects of the further massive increase in raw material and container prices as well as the scarce availability of raw materials and containers had a noticeable negative impact on earnings but were offset by the significant growth in sales volumes. EBITDA and EBIT in Q1-3 2021 therefore exceeded the previous year's level on the one hand, while on the other hand, margins were slightly below the comparable figures.

Delays in the inbound and outbound supply chain had a negative impact on Semperflex's revenue and earnings, in Q3 2021 in particular.

Key figures Sempertrans

Sempertrans segment

in EUR million Q1-3 2021 Change Q1-3 20201) Q3 2021 Change Q3 20201) 20201)
Revenue 79.2 –12.4% 90.3 28.0 –1.3% 28.4 113.1
EBITDA 6.5 –25.7% 8.7 4.7 >100% 2.1 8.7
EBITDA margin 8.2% –1.5 PP 9.7% 16.7% +9.1 PP 7.6% 7.7%
EBIT – adjusted 3.9 –32.4% 5.8 3.8 >100% 1.4 4.9
EBIT margin – adjusted 5.0% –1.5 PP 6.5% 13.6% +8.6 PP 5.0% 4.3%
EBIT 3.9 >100% –14.0 3.8 >100% 1.6 –14.9
EBIT margin 5.0% +20.5 PP –15.5% 13.6% +8.1 PP 5.5% –13.2%
Additions to intangible assets and
property, plant and equipment
2.8 6.3% 2.6 1.1 5.5% 1.0 4.6
Employees (at balance sheet
date)
920 –1.4% 933 920 –1.4% 933 917

1) Q1-3 2020, Q3 2020 and 2020: adjusted for the negative non-recurring effect from the impairment in the Sempertrans segment (Q1-3'20 EBIT effect: EUR –19.9 million; Q3'20 EBIT effect: EUR +0.1 million; 2020: EBIT effect: EUR –19.8 million)

In Q1-3 2021, the performance of the Sempertrans segment was again characterised by the majority of its business taking place late in the business cycle. Driven by the development of prices for mining products, which was favourable for Sempertrans' order situation, and global demand, project pipelines have filled up again; this was accompanied by a gradual increase in demand for conveyor and transport belts in Q1-3 2021. Incoming orders exceeded the previous year's low values (up 16% year-on-year in Q1-3 2021 in the aggregate); accordingly, at the end of Q3 2021 the order book showed an improved level compared to the decline in 2020 and even reached the highest level since May 2020.

Despite the successive improvements posted since the end of 2020 thanks to increasing customer interest, revenue was still below the previous year's level, especially as the fulfilment of current orders in the first half of 2020 was not yet particularly affected by the coronavirus pandemic. Earnings also include a non-recurring positive deconsolidation effect in the amount of EUR 3.7 million which is attributable to the positive deconsolidation effect, as a result of the reclassification of (historical) foreign currency differences in the consolidated income statement following the liquidation of Sempertrans Best (ShanDong) Belting Co. Ltd. (SBB). The development of EBITDA and EBIT, as well as the corresponding margins, were negatively impacted by volume variances and were also burdened by the further intensifying rise in raw material prices. However, margins and production efficiency were kept positive despite the negative effects.

Q3 2021 saw a slow but steady market-side improvement compared to the previous quarter Q2 2021; this was also reflected in the robust operating results.

Semperseal segment

Key figures Semperseal

in EUR million Q1-3 2021 Change Q1-3 2020 Q3 2021 Change Q3 2020 2020
Revenue 91.4 27.9% 71.5 32.4 32.9% 24.4 93.6
EBITDA 10.7 14.3% 9.4 4.1 39.6% 2.9 11.0
EBITDA margin 11.7% –1.4 PP 13.1% 12.6% +0.6 PP 12.0% 11.8%
EBIT 5.9 21.4% 4.9 2.5 77.3% 1.4 5.1
EBIT margin 6.5% –0.4 PP 6.9% 7.7% +1.9 PP 5.8% 5.5%
Additions to intangible assets and
property, plant and equipment
7.3 38.9% 5.3 1.2 27.6% 1.0 9.2
Employees (at balance sheet
date)
501 11.4% 450 501 11.4% 450 457

Following a recovery phase from the coronavirus crisis that started during the second half of 2020, the Semperseal segment improved its overall results in Q1-3 2021 compared to Q1-3 2020. In addition to the construction sector, the industrial markets in particular, such as mechanical engineering, packaging, electrical systems, and chemicals, showed a comparatively better level of demand. This resulted in a higher order intake, in particular in the European markets, as well as in higher sales volumes. In addition, a positive contribution was made by M+R Dichtungstechnik GmbH, which was acquired in Q1 2021.

While year-on-year revenue increases were achieved in all three quarters of 2021, rising input factor costs put pressure on EBITDA and EBIT development, especially in Q2 2021, as initially the increases in input factor costs could only be passed on with a slight time lag and not to the full extent. However, thanks to gains in market share and price increases, EBITDA and EBIT were improved significantly in Q3 2021, margins were again raised above the previous year's level, and as a consequence, the pressure from input factors on earnings was reduced in Q1-3 2021.

Semperform segment

Key figures Semperform

in EUR million Q1-3 2021 Change Q1-3 2020 Q3 2021 Change Q3 2020 2020
Revenue 66.7 7.2% 62.2 23.3 13.9% 20.4 81.8
EBITDA 9.9 –20.2% 12.4 3.3 –18.2% 4.0 15.0
EBITDA margin 14.9% –5.1 PP 20.0% 14.1% –5.5 PP 19.6% 18.3%
EBIT 7.1 –26.6% 9.7 2.3 –24.1% 3.1 11.3
EBIT margin 10.7% –4.9 PP 15.6% 10.0% –5.0 PP 15.1% 13.8%
Additions to intangible assets and
property, plant and equipment
2.8 17.7% 2.4 1.3 47.9% 0.9 3.6
Employees (at balance sheet
date)
571 8.4% 527 571 8.4% 527 520

The Semperform segment continued to present a mixed picture with regard to the individual business units in Q1-3 2021: On the one hand, the continuing weak economy in the winter tourism industry had a negative impact on the Special Applications business unit with cable car rings and ski foils, although based on current knowledge, the coming season promises improvements, which also increases order intake. On the other hand, the handrail business saw increased demand in all regions. The niche markets of the Engineered Solutions unit, particularly railway, piping, and households, also showed promising and sustainably higher activity. Thanks to these developments order intake and orders on hand improved significantly in Q1-3 2021 and the Q1-3 2020 level was significantly exceeded.

While revenue in Q1-3 2021 exceeded the previous year's level, which was more strongly impacted by the coronavirus pandemic, effects of the product mix, in particular the declining results of the Special Applications business unit, as well as sharply higher raw material prices had a negative impact on EBITDA and EBIT. Overall, margins were thus below the previous year's level. The same effects were also reflected in the key figures for the single quarter Q3 2021.

Medical Sector: Sempermed segment

Key figures Sempermed

in EUR million Q1-3 2021 Change Q1-3 20201) Q3 2021 Change Q3 20201) 20201)
Revenue 516.7 79.3% 288.2 124.0 4.7% 118.4 449.2
EBITDA 277.4 >100% 67.3 56.9 28.3% 44.4 150.4
EBITDA margin 53.7% +30.3 PP 23.4% 45.9% +8.5 PP 37.5% 33.5%
EBIT – adjusted 262.6 >100% 60.7 52.1 33.9% 38.9 138.7
EBIT margin – adjusted 50.8% +29.8 PP 21.1% 42.0% +9.2 PP 32.8% 30.9%
EBIT 262.6 78.1% 147.5 52.1 41.6% 36.8 224.9
EBIT margin 50.8% –0.3 PP 51.2% 42.0% +11.0 PP 31.0% 50.1%
Additions to intangible assets and
property, plant and equipment
15.0 >100% 3.1 5.2 >100% 1.3 5.0
Employees (at balance sheet
date)
3,170 –4.3% 3,311 3,170 –4.3% 3,311 3,337

1) Q1-3 2020, Q3 2020 and 2020: adjusted for the positive non-recurring effect from the reversal of an impairment loss in the Sempermed segment (Q1-Q3 2020: EBIT effect: EUR +86.7 million; Q3'2020 EBIT effect: EUR –2.1 million; 2020: EBIT effect: EUR +86.2 million)

The Sempermed segment's overall development was characterised by the following key factors in Q1-3 2021. First, a steady increase in the price level was observed until the end of Q1 2021. However, from the high level at the end of Q1 2021, prices began to ease only slightly in Q2 2021. As expected, however, the price level began to decline markedly in Q3 2021 compared to the plateau but remained noticeably above pre-coronavirus levels even at the end of the period. Second, the period was increasingly characterised by challenges on the logistics side. In particular, the lack of container availability weighed on sales volumes, while rising commodity prices also impacted earnings. Third, despite this challenging market environment, operating efficiency was maintained at a sustainably high level. Fourth, towards the end of Q2 2021, production in Malaysia had to be throttled back to 60% due to official requirements (Enhanced Movement Control Order, EMCO). At the end of June, despite the comprehensive and proactive protective measures, there was an increase in the number of COVID-19 infections and, as a result, production was temporarily restricted in accordance with the regulations of the responsible Malaysian authorities. Together with the safety authorities, however, a "safety bubble" concept was developed so that activities could continue in parts of the production facilities under state-controlled protective conditions. However, the short term production restrictions due to Covid led to deviations in the volumes.

Despite the negative effects, the Sempermed segment not only generated year-on-year revenue growth overall in Q1-3 2021, but also in the much more heavily burdened individual Q3 2021 quarter. This positive development is also reflected in the other key earnings figures. An increase was also achieved compared with the figures adjusted for the reversal of an impairment loss in the previous year.

Employees

The headcount as at 30 September 2021 was 7,027 employees (FTE, full-time equivalents), which is 1.5% more than the level on 30 September 2020 (6,921), and only slightly above the level on 31 December 2020 (6,943). In the Industrial Sector, the number of employees increased slightly in all segments compared to both 30 September 2020 and 31 December 2020, with the exception of the Sempertrans segment. In contrast, there was a slight decrease in the number of employees in the Medical Sector compared to the same periods of the previous year.

Supervisory and Executive Board matters

At the 132nd Annual General Meeting on 27 April 2021, Stefan Fida, Birgit Noggler, and Astrid Skala-Kuhmann were re-elected to the Supervisory Board following the end of their terms of office. Walter Koppensteiner resigned from his chairmanship and all functions on the Supervisory Board of Semperit AG Holding on 12 May 2021. Herbert Ortner was elected as his successor as Chairman of the Supervisory Board.

Gabriele Schallegger resigned from her position as CFO of Semperit AG Holding early on 17 May 2021 for personal reasons. Petra Preining was initially appointed as her successor on an interim basis; her mandates on the Supervisory Board and the Audit Committee of Semperit AG Holding were therefore suspended. On 29 September 2021, Petra Preining was confirmed in her role as CFO and an Executive Board contract was signed that runs until 31 December 2024. She therefore resigned from the Supervisory Board of Semperit AG Holding as of 29 September 2021.

Kristian Brok's mandate as COO was extended early until 31 December 2025.

Martin Füllenbach resigned from his mandate as CEO of Semperit AG Holding early on 29 September 2021 to take up a new professional challenge. Until the position of CEO is filled, Petra Preining and Kristian Brok take over the vacant Executive Board positions on an interim basis.

Outlook

Based on current figures, the Executive Board of Semperit AG Holding continues to assume that the Group's EBITDA for the full year 2021 will be significantly above the EBITDA for 2020. However, in view of the risk factors already communicated in the first quarter, which progressively materialised as the year went on and continue to exist, the Group is expected to fall short of the figure of EUR 395 million forecast in March by a single-digit percentage.

The earnings forecast for the full year continues to depend in particular on the availability of the required raw materials and their prices, the sales prices for medical protective gloves until year end, as well as sufficient container availability for the delivery of the Semperit Group's products. In addition, trends in raw material and container prices are significant factors influencing the company's results. What is more, it is difficult to forecast the effects in connection with the further development of the coronavirus pandemic and vaccination rates, particularly due to the strongly divergent regional trends and their influence on the international production sites.

The ongoing effects of the coronavirus pandemic will continue to have a positive impact on the price of medical products, with a downward trend. In addition, the coronavirus-related production restrictions in Malaysia in summer 2021 had an unplanned negative effect on earnings.

A noticeable recovery of the markets in the Industrial Sector continues to be expected for 2021 over-all – with these showing different patterns of development depending on their cyclicality.

Note

This outlook is based on the assessments of the Executive Board as of 16 November 2021 and does not take into account the impact of potential acquisitions, disposals, or other unforeseeable structural and economic changes during the remainder of 2021. These assessments are subject to both known and unknown risks and uncertainties, which may result in actual events and outcomes differing from the statements made here.

Consolidated income statement

in EUR thousand Note Q1-3 2021 Q1-3 2020 Q3 2021 Q3 2020
Revenue 2.2 926,075 657,152 265,288 238,204
Changes in inventories 25,997 –2,953 5,002 –7,804
Own work capitalised 3,257 2,543 1,377 697
Operating revenue 955,330 656,743 271,667 231,097
Other operating income 2.3 7,356 5,492 4,493 2,078
Cost of material and purchased services –390,641 –318,205 –116,681 –98,468
Personnel expenses –161,794 –156,273 –51,982 –52,395
Other operating expenses 2.4 –85,955 –69,786 –30,730 –21,577
Share of profits from associates 0 566 0 199
Earnings before interest, tax, depreciation and amortisation
(EBITDA)
324,295 118,537 76,767 60,933
Depreciation and amortisation of intangible assets and property,
plant and equipment
–34,271 –25,927 –11,366 –11,736
Impairment of intangible assets and property, plant and
equipment
0 –19,873 0 132
Reversal of impairment of intangible assets and property, plant
and equipment
0 86,733 0 –2,102
Earnings before interest and tax (EBIT) 290,025 159,470 65,401 47,227
Finance income 251 272 63 81
Finance expenses –3,006 –4,340 –921 –1,169
Gain / loss attributable to redeemable non-controlling interests –4,100 –3,353 –1,382 –1,252
Other financial result 2.5 –4,815 –2,461 –1,753 1,160
Financial result –11,670 –9,883 –3,993 –1,181
Earnings before tax 278,355 149,587 61,408 46,047
Income taxes –54,273 –12,258 –11,214 –10,423
Earnings after tax 224,081 137,329 50,194 35,624
thereof attributable to the shareholders of Semperit AG
Holding – from ordinary shares
223,216 131,255 50,075 34,037
thereof attributable to the shareholders of Semperit AG
Holding – from hybrid capital
388 5,034 0 1,631
thereof attributable to non-controlling interests 477 1,040 118 –44
Earnings per share in EUR (diluted and undiluted)1) 10.85 6.38 2.43 1.65

1) The earnings per share are solely attributable to the ordinary shareholders of Semperit AG Holding (excl. interest from hybrid capital).

Consolidated statement of comprehensive income

in EUR thousand Note Q1-3 2021 Q1-3 2020 Q3 2021 Q3 2020
Earnings after tax 224,081 137,329 50,194 35,624
Other comprehensive income that will not be recognised
through profit and loss in future periods
210 407 160 401
Remeasurements of defined benefit plans 0 0 0 0
Income tax thereon 210 407 160 401
Other comprehensive income that will be recognised through
profit and loss in future periods
11,793 –16,737 1,861 –8,496
Measurement gain or loss from cash flow hedges 0 –97 –13 44
thereof reclassification to profit / loss for the period 200 1,334 427 –107
Currency translation differences 11,793 –16,687 1,871 –8,506
thereof reclassification to profit / loss for the period –3,771 0 –3,706 0
Income tax thereon 0 47 3 –34
Other comprehensive income - total 12,002 –16,330 2,021 –8,096
Comprehensive income 236,083 121,000 52,215 27,528
thereof on earnings attributable to the shareholders of
Semperit AG Holding – from ordinary shares
235,145 114,957 51,697 24,921
thereof attributable to the shareholders of Semperit AG
Holding – from hybrid capital
388 5,034 0 1,631
thereof on earnings attributable to non-controlling interests 550 1,008 518 976

Consolidated cash flow statement

in EUR thousand Note Q1-3 2021 Q1-3 2020
Earnings before tax 278,355 149,587
Depreciation, amortisation, impairment and reversal of impairment of intangible assets and
property, plant and equipment
34,271 –40,934
Gain / loss from disposal of assets
(including current and non-current financial assets)
334 –207
Change in non-current provisions –2,468 599
Share of profits from associates 0 –566
Gain / loss attributable to redeemable non-controlling interests 4,100 3,353
Net interest income (including income from securities) 2,755 4,069
Income taxes paid –24,783 –10,875
Other non-cash income / expense 3,127 2,002
Gross cash flow 295,690 107,029
Change in inventories –32,713 –3,742
Change in trade receivables –8,224 –17,778
Change in other receivables and assets –11,428 230
Change in trade payables 1,608 15,525
Change in other liabilities and current provisions –4,682 9,320
Cash flows from operating activities 240,250 110,584
Proceeds from sale of property, plant and equipment 142 5,336
Purchase of intangible assets and property, plant and equipment –31,205 –17,359
Interest received 234 253
Investment grants received 32 0
Acquisition of financial assets –48,251 0
Acquisition of a subsidiary, net of cash acquired –1,126 0
Cash flows from investing activities –80,174 –11,771
Repayment of current and non-current financial liabilities 2,740 –39,646
Repayment of lease liabilities –2,337 –2,240
Dividend to shareholders of Semperit AG Holding –30,860 0
Dividends to redeemable non-controlling interests in subsidiaries –4,147 –3,921
Dividends to non-controlling interests in subsidiaries –122 0
Capital repayment to non-controlling interests in subsidiaries –830 0
Acquisitions of non-controlling interests 0 –2
Disposal of shares of subsidiaries 168 0
Repayment of hybrid capital –30,000 –20,000
Coupon payments on hybrid capital –785 –6,755
Interest paid –3,040 –4,800
Cash flows from financing activities –69,212 –77,364
Net increase / decrease in cash and cash equivalents 90,864 21,448
Currency translation differences 1,971 –5,521
Cash and cash equivalents at the beginning of the period 144,972 141,356
Cash and cash equivalents at the end of the period 237,807 157,284

Consolidated balance sheet

in EUR thousand Note 30.09.2021 31.12.2020
ASSETS
Non-current assets
Intangible assets 7,636 7,567
Property, plant and equipment 346,124 340,179
Other financial assets 7,462 7,137
Other assets 3,401 3,121
Deferred tax assets 3,995 5,500
368,618 363,504
Current assets
Inventories 177,193 141,124
Trade receivables 111,270 99,318
Other financial assets 50,097 2,136
Other assets 25,699 12,469
Current tax receivables 2,628 113
Cash and cash equivalents 237,807 144,972
604,694 400,132
Non-current assets held for sale 764 764
605,458 400,896
ASSETS 974,076 764,400
EQUITY AND LIABILITIES
Equity
Share capital 21,359 21,359
Capital reserves 21,503 21,503
Hybrid capital 0 30,000
Retained earnings 488,683 294,886
Currency translation reserve –23,763 –35,483
Equity attributable to the shareholders of Semperit AG Holding 507,782 332,266
Non-controlling interests 1,299 2,331
509,082 334,597
Non-current provisions and liabilities
Provisions 43,669 47,155
Liabilities from redeemable non-controlling interests 15,395 16,607
Financial liabilities 85,489 85,257
Trade payables 3 12
Other financial liabilities 6,337 3,517
Other liabilities 2,554 269
Deferred tax assets 11,042 10,196
164,490 163,013
Current provisions and liabilities
Provisions 23,424 29,399
Liabilities from redeemable non-controlling interests 0 795
Financial liabilities 87,343 81,836
Trade payables 78,932 77,677
Other financial liabilities 20,110 15,807
Other liabilities 34,375 37,703
Current tax liabilities 56,322 23,572
300,505 266,789
EQUITY AND LIABILITIES 974,076 764,400

Consolidated statement of the changes in equity

in EUR thousand Note Share
capital
Capital
reserves
Hybrid
capital
Retained
earnings
Currency
translation
reserve
Total Non
controlling
interests
Total
equity
As at 01.01.2020 21,359 21,503 130,000 111,865 –11,307 273,420 691 274,111
Earnings after tax 0 0 0 136,289 0 136,289 1,040 137,329
Other comprehensive
income
0 0 0 357 –16,656 –16,298 –31 –16,330
Comprehensive income 0 0 0 136,647 –16,656 119,991 1,008 121,000
Coupon payments on
hybrid capital
0 0 0 –6,755 0 –6,755 0 –6,755
Repayment of hybrid
capital
0 0 –20,000 0 0 –20,000 0 –20,000
Acquisitions of non
controlling interests
0 0 0 –3 0 –3 1 –2
As at 30.09.2020 21,359 21,503 110,000 241,754 –27,963 366,654 1,701 368,355
As at 01.01.2021 21,359 21,503 30,000 294,886 –35,483 332,266 2,331 334,597
Earnings after tax 0 0 0 223,604 0 223,604 477 224,081
Other comprehensive
income
0 0 0 210 11,720 11,930 73 12,002
Comprehensive income 0 0 0 223,814 11,720 235,534 550 236,083
Dividend 0 0 0 –30,860 0 –30,860 –122 –30,982
Coupon payments on
hybrid capital
0 0 0 –785 0 –785 0 –785
Repayment of hybrid
capital
0 0 –30,000 0 0 –30,000 0 –30,000
Acquisitions of non
controlling interests
0 0 0 1,922 0 1,922 –1,922 0
Disposal of shares of
subsidiaries
0 0 0 –293 0 –293 462 168
As at 30.09.2021 21,359 21,503 0 488,683 –23,763 507,782 1,299 509,081

Notes to the interim group financial statements (condensed)

1. General

1.1. Basic compilation principles

The interim group financial report has been prepared in accordance with International Financial Reporting Standards (IFRSs) and is based on the regulations for interim financial statements (IAS 34).

For more information on accounting and valuation methods of the Semperit-Group, please see the consolidated financial statements as at 31 December 2020, which in this regard form the basis for this interim group financial report.

The reporting currency is the euro, with figures rounded to the nearest thousand, unless expressly stated otherwise. Rounding differences in the totalling of rounded amounts and percentages may arise from the automatic processing of data.

The interim group financial report of the Semperit-Group as at 30 September 2021 has not been fully audited or reviewed by the Group's auditor.

1.2. New and amended accounting standards

The following amended standards and interpretations were applicable or were (earlier) applied for the first time in the first three quarters of 2021.

Endorsement Mandatory
application for
the Semperit
Group
Effects on the
Semperit-Group
Amended standards
IFRS 16 Amendment to IFRS 16 Leases Covid 19-Related Rent
Concessions beyond 30 June 2021
30 August 2021 1 January 2022 no
IFRS 4 Amendments to insurance contracts: postponement of the
expiry date of the deferral approach of IFRS 9
15 December 2020 1 January 2021 no
Miscellaneous Amendments to IFRS 9, IAS 39 and IFRS 7: reform of LIBOR and
other reference interest rates (IBOR reform) – Phase 2
13 January 2021 1 January 2021 no

2. Performance

2.1. Segment reporting

Semper Semper Semper Semper Semper Corporate
Q1-3 2021 in EUR thousand med flex trans seal form Center Total
Revenue 516,674 172,098 79,156 91,430 66,717 0 926,075
EBITDA 277,442 37,394 6,494 10,700 9,918 –17,653 324,295
EBIT 262,614 29,008 3,943 5,944 7,111 –18,596 290,025
Trade working capital 97,773 51,141 24,917 20,049 18,626 –2,975 209,531
Additions to intangible assets and
property, plant and equipment1)
14,968 4,172 2,814 7,340 2,826 938 33,059
Q1-3 2020 in EUR thousand Semper
med
Semper
flex
Semper
trans
Semper
seal
Semper
form
Corporate
Center
Total
Revenue 288,192 144,950 90,336 71,458 62,216 0 657,152
EBITDA 67,329 34,767 8,741 9,363 12,434 –14,098 118,537
EBIT 147,451 26,367 –14,041 4,896 9,692 –14,895 159,470
Trade working capital 61,972 45,424 20,263 14,865 15,663 –1,965 156,222
Additions to intangible assets and
property, plant and equipment1)
3,114 2,232 2,648 5,285 2,402 350 16,030

1) Excluding right-of-use assets according to IFRS 16

2.2. Revenue

in EUR thousand Semper
med
Semper
flex
Semper
trans
Semper
seal
Semper
form
Group
Q1-3 2021
Western Europe 287,907 96,556 27,987 72,133 36,096 520,679
North America 112,472 19,166 6,069 4,720 3,479 145,906
Eastern Europe 54,991 35,003 10,313 13,824 7,714 121,845
Asia 44,757 19,387 20,339 745 18,229 103,457
Central and South America 12,056 1,446 7,334 8 873 21,718
Africa 2,762 403 3,984 0 267 7,415
Australia and Oceania 1,729 136 3,130 0 59 5,054
Revenue 516,674 172,098 79,156 91,430 66,717 926,075
in EUR thousand Semper
med
Semper
flex
Semper
trans
Semper
seal
Semper
form
Group
Q1-3 2020
Western Europe 158,643 78,879 26,579 56,333 38,521 358,954
North America 49,936 18,562 17,422 4,967 2,584 93,471
Eastern Europe 34,948 31,939 14,941 9,576 5,752 97,156
Asia 26,803 14,028 21,319 573 14,409 77,131
Central and South America 9,220 744 6,713 9 653 17,339
Africa 1,358 535 2,138 0 259 4,290
Australia and Oceania 7,285 264 1,224 0 39 8,812
Revenue 288,192 144,950 90,336 71,458 62,216 657,152

2.3. Other operating income

Other operating income in the period under review includes government grants in the amount of EUR 522 thousand (Q1–3 2020: EUR 1.535 thousand) that the Semperit-Group received in the form of support payments for the first quarter of 2021 in the wake of the corona crisis. The grants were awarded in Austria, China, Singapur and Czech Republic.

Furthermore, the other operating income includes a positive deconsolidation effect of EUR 3,789 thousand (Q1–3 2020: EUR 0 thousand) due to the liquidation of the Chinese Sempertrans Best (Shandong) Belting Co. Ltd. (SBB) in July 2021. This effect on earnings results almost exclusively from the reclassification of (historical) foreign exchange differences into the consolidated income statement.

2.4. Other operating expenses

in EUR thousand Q1-3 2021 Q1-3 2020
Outgoing freight 34,108 24,390
Legal, consulting and auditing fees 12,852 8,656
Maintenance and services 7,216 9,172
Insurance premiums 4,248 3,709
Software licence expenses 2,831 2,525
Commission and advertising expenses 2,644 2,491
Rental and lease expenses 2,567 1,591
Waste disposal 1,882 1,513
Energy costs not for production 1,595 1,463
Travel expenses 1,293 1,964
Other taxes 1,219 1,304
Fees, subscriptions and donations 929 740
Office equipment 842 825
Communications 693 792
Training and education expenditures 488 374
Bank expenses and hedging costs 411 373
Valuation allowances –37 355
Complaint costs –584 –74
Miscellaneous 10,758 7,623
Total 85,955 69,786

2.5. Financial result

in EUR thousand Q1-3 2021 Q1-3 2020
Other financial result
Net foreign currency result –5,542 –1,678
Net result from the FVPL and FV measurement categories - hedging instruments 1,036 –227
Miscellaneous –309 –555
Total –4,815 –2,461

3. Company acquisition

On 4 January 2021, the Germany company Semperit Profiles Deggendorf GmbH acquired 51% of the shares in the Germany company M+R Dichtungstechnik GmbH (M+R for short) with its registered office in Seligenstadt. The remaining 49% of the shares in M+R were acquired by Semperit Profiles Deggendorf GmbH under the suspensory condition of full payment of a conditional purchase price with effect from 31 December 2024. The conditional purchase price is derived from an average adjusted EBITDA of M+R for the years 2022 to 2024 and a multiplying factor. M+R develops, manufactures and trades in elastomeric seals, in particular for highly customised building facades. The purchase price allocation is still provisional at the time of preparation of the consolidated financial statements. The assets and liabilities of M+R at the time of acquisition are as follows:

in EUR thousand Fair value at time
of acquisition
Non-current assets 4,754
Current assets 1,187
thereof cash 424
Total of acquired assets 5,941
Non-current provisions and liabilities 1,734
Current provisions and liabilities 1,186
Total of assumed liabilities 2,921
Total of identifiable net assets at fair value 3,021
Badwill 0
Total amount of the consideration 3,021
thereof consideration for 51% of the acquired shares in cash 1,550
thereof consideration for 49% of the conditionally acquired shares 1,471

Contact

Semperit AG Holding

Modecenterstrasse 22 1031 Vienna, Austria Tel.: +43 1 79 777 0 Fax: +43 1 79 777 600 www.semperitgroup.com/en

Financial Calendar 2022

23.3.2022 Publication of 2021 annual financial statements
17.4.2022 Record Date Annual General Meeting
27.4.2022 Annual general meeting, Vienna
2.5.2022 Ex-dividend day
3.5.2022 Record Date Dividend (= day, on which settled
positions are struck at CSD Austria at close of
business to determine the entitlement)
4.5.2022 Dividend payment day
18.5.2022 Report on Q1 2022
17.8.2022 Half-year financial report 2022
16.11.2022 Report on Q1-3 2022

Investor Relations

Judit Helenyi Director Investor Relations Tel.: +43 1 79 777 310 www.semperitgroup.com/en/ir

Addresses of the Semperit Group

www.semperitgroup.com/en/contact

Contacts of the Semperit Group

Ownership and publisher: Semperit Aktiengesellschaft Holding, Modecenterstrasse 22, 1031 Vienna, Austria, Produced in-house with firesys GmbH, www.firesys.de

Disclaimer

The terms "Semperit" or "Semperit Group" in this report refer to the group; "Semperit AG Holding" or "Semperit Aktiengesellschaft Holding" is used to refer to the parent company (individual company).

We have prepared this report and verified the information it contains with the greatest possible care. Nevertheless, rounding, typesetting and printing errors cannot be ruled out. Rounding of differences in the summation rounded amounts and percentages may arise from the automatic processing of data.

The forecasts, plans and forward-looking statements contained in this report are based on the knowledge and information available and the assessments made at the time that this report was prepared (editorial deadline: 16 November 2021). As is true of all forward-looking statements, these statements are subject to risk and uncertainties. As a result, actual events may deviate significantly from these expectations. No liability whatsoever is assumed for the accuracy of projections or for the achievement of planned targets or for any other forward-looking statements. Words such as "expect," "want", "believe," "anticipate," "includes," "plan," "assumes," "estimate," "projects," "intends," "should," "will," "shall," or variations of such words are generally part of forward-looking statements.

Furthermore, there is no guarantee that the contents are complete.

Statements referring to people are valid for both men and women.

This report has been written in German and English. In case of doubt, the German version shall take precedence.

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