Interim / Quarterly Report • May 3, 2021
Interim / Quarterly Report
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INTERIM REPORT Q2 FY2021
Profit in % of revenue 8.4% 7.6% Capital expenditure as % of revenue 4.2% 5.1% FCF in % of revenue 10.6% 4.4% Adjusted FCF in % of revenue 10.6% 4.6% Net leverage ratio 0.9x 1.1x
| Three months ended March 31, | Six months ended March 31, | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| IN € MILLIONS | 2021 | 2020 | Change | % change | IN € MILLIONS | 2021 | 2020 | Change | % change |
| Revenue | 244.0 | 221.0 | 23.0 | 10.4% | Revenue | 479.4 | 452.3 | 27.1 | 6.0% |
| EBIT | 35.2 | 26.5 | 8.7 | 32.8% | EBIT | 63.3 | 51.9 | 11.4 | 22.0% |
| Adjusted EBIT | 38.0 | 31.1 | 6.9 | 22.2% | Adjusted EBIT | 70.3 | 61.1 | 9.2 | 15.1% |
| Profit for the period | 25.9 | 18.1 | 7.8 | 43.1% | Profit for the period | 40.3 | 34.5 | 5.8 | 16.8% |
| Capital expenditure | (19.9) | (23.2) | 3.3 | (14.2)% | |||||
| EBIT as % of revenue | 14.4% | 12.0% | Free cash flow (FCF) | 50.7 | 19.7 | 31.0 | >100.0% | ||
| Adjusted EBIT as % of revenue | 15.6% | 14.1% | Adjusted FCF | 50.7 | 20.8 | 29.9 | >100.0% | ||
| Profit in % of revenue | 10.6% | 8.2% | |||||||
| EBIT as % of revenue | 13.2% | 11.5% | |||||||
| Adjusted EBIT as % of revenue | 14.7% | 13.5% |
| A | |
|---|---|
| INTERIM GROUP MANAGEMENT REPORT | 3 |
|---|---|
| RESULTS OF OPERATIONS | 4 |
| DEVELOPMENT OF OPERATING SEGMENTS | 10 |
| FINANCIAL POSITION | 12 |
| LIQUIDITY | 13 |
| RISKS AND OPPORTUNITIES | 16 |
| SUBSEQUENT EVENTS | 16 |
| OUTLOOK | 16 |
| C | ADDITIONAL INFORMATION | |
|---|---|---|
| FINANCIAL CALENDAR | ||
| DISCLAIMER |
D INFORMATION RESOURCES 36
| CONDENSED INTERIM CONSOLIDATED FINANCIAL | |
|---|---|
| STATEMENTS (UNAUDITED) | 17 |
| CONSOLIDATED STATEMENT OF | |
|---|---|
| COMPREHENSIVE INCOME | 17 |
| CONSOLIDATED STATEMENT OF FINANCIAL POSITION | 18 |
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY | 19 |
| CONSOLIDATED STATEMENT OF CASH FLOWS | 20 |
| NOTES TO THE CONDENSED INTERIM | |
| CONSOLIDATED FINANCIAL STATEMENTS | 21 |
| RESPONSIBILITY STATEMENT | 34 |
for the three and six months ended March 31, 2021
In accordance with the European Securities and Markets Authority (ESMA) guidelines on Alternative Performance Measures, the Stabilus Group provides a definition, the rationale for use and a reconciliation of APMs used. The Group uses the following APMs: organic growth, adjusted EBIT, free cash flow (FCF), adjusted free cash flow and the net leverage ratio. The calculation of the net leverage ratio is based on net financial debt and adjusted EBITDA, which are also considered APMs.
The APM organic growth is presented because we believe it aids in understanding our operating performance. Organic growth is defined as the reported revenue growth after removing the effects of acquisitions, divestitures and at constant foreign exchange rates. The effects resulting from constant foreign exchange rates are calculated as current year sales converted at current year exchange rates less current year sales converted at prior year exchange rates.
The definitions and required disclosures of all other APMs are provided in the relevant sections of this interim report.
The Stabilus fiscal year 2021 (beginning on October 1, 2020) is still affected by the COVID-19 pandemic. The impact on the macroeconomic environment and also on the global economy have a wide-ranging. The market environment in which we operate, i.e. automotive and industrial business, recover faster than expected. The positive development allows us to raise our guidance for fiscal year 2021 to a revenue of between €900 million to €950 million (previously: between €850 million to €900 million) and with an adjusted EBIT margin of between 13% and 15% (previously: between 12% and 13%), as announced on April 12, 2021. This is reflecting a further stabilizing global economy and recovery in the global automotive production. However, due to the COVID-19 pandemic an uncertainty remains.
Due to strong recovery of the economy and the Group's diversified product portfolio, the Stabilus Group's total revenue increased by €27.1 million or 6.0% to €479.4 million in the first half of fiscal year 2021. The positive global development is reflected in the positive development of the markets in which we operate. The Automotive Powerise® business increased by 16.5% to €137.8 million and the Automotive Gas Spring business increased by 6.4% to €159.0 million. However, our Industrial business recovered more slowly from the COVID-19 pandemic and is slightly below prior year by (1.1)% to €182.5 million.
On March 4, 2021, Stabilus issued its first promissory loan note (Schuldscheindarlehen) with a total volume of €95.0 million, via its subsidiary Stabilus GmbH. The tranches of the promissory loan note with maturities of five and seven years bear variable interest rates (details in Note 12). The promissory note loan is part of our long-term financing strategy and grants us flexibility in the implementation of our growth plans. The financial stability of the Stabilus Group is very comfortable. Our net leverage ratio is at 0.9x compared to 1.2x at September 30, 2020 (we refer to net leverage ratio on page 15).
On March 8, 2021, the Stabilus S. A. announced its plan to change the legal form from Société Anonyme (S. A.) into an Societas Europaea (SE) and the subsequent transfer of the registered office from Luxembourg to Germany. The change of the legal form as well as the transfer of the registered office of the Company require the approval of the general meeting of the Company.
The intended change of the legal form into an European Company is due to the increasing international orientation of Stabilus, which has gained in importance following the acquisitions of companies in recent years. The relocation will simplify the Group's structures and thus reduce complexity, which will lead to cost savings and efficiency gains. At the same time, the transfer of the registered office means that in the future both the Group headquarters and the stock exchange listing of Stabilus will be located in Germany. This process is expected to be finalized in the first quarter of the calendar year 2022. Further information on the planned measures can be found at: www.stabilus.com/investors/se.
The tables below set out Stabilus Group's consolidated income statement for the second quarter and the first half of the fiscal years 2021 and 2020:
| Three months ended March 31, | ||||
|---|---|---|---|---|
| IN € MILLIONS | 2021 | 2020 | Change | % change |
| Revenue | 244.0 | 221.0 | 23.0 | 10.4% |
| Cost of sales | (169.3) | (156.5) | (12.8) | 8.2% |
| Gross profit | 74.7 | 64.5 | 10.2 | 15.8% |
| Research and development expenses | (10.5) | (10.9) | 0.4 | (3.7)% |
| Selling expenses | (20.7) | (22.0) | 1.3 | (5.9)% |
| Administrative expenses | (10.9) | (10.0) | (0.9) | 9.0% |
| Other income | 2.8 | 5.1 | (2.3) | (45.1)% |
| Other expenses | (0.2) | (0.3) | 0.1 | (33.3)% |
| Profit from operating activities (EBIT) | 35.2 | 26.5 | 8.7 | 32.8% |
| Finance income | 5.1 | 5.8 | (0.7) | (12.1)% |
| Finance costs | (4.2) | (3.6) | (0.6) | 16.7% |
| Profit / (loss) before income tax | 36.2 | 28.6 | 7.6 | 26.6% |
| Income tax income / (expense) | (10.2) | (10.5) | 0.3 | (2.9)% |
| Profit / (loss) for the period | 25.9 | 18.1 | 7.8 | 43.1% |
| Six months ended March 31, | ||||
|---|---|---|---|---|
| IN € MILLIONS | 2021 | 2020 | Change | % change |
| Revenue | 479.4 | 452.3 | 27.1 | 6.0% |
| Cost of sales | (334.6) | (321.1) | (13.5) | 4.2% |
| Gross profit | 144.8 | 131.2 | 13.6 | 10.4% |
| Research and development expenses | (20.9) | (21.4) | 0.5 | (2.3)% |
| Selling expenses | (41.1) | (44.0) | 2.9 | (6.6)% |
| Administrative expenses | (21.0) | (18.4) | (2.6) | 14.1% |
| Other income | 3.1 | 4.9 | (1.8) | (36.7)% |
| Other expenses | (1.6) | (0.4) | (1.2) | >100.0% |
| Profit from operating activities (EBIT) | 63.3 | 51.9 | 11.4 | 22.0% |
| Finance income | 0.4 | 5.3 | (4.9) | (92.5)% |
| Finance costs | (7.5) | (6.1) | (1.4) | 23.0% |
| Profit / (loss) before income tax | 56.2 | 51.1 | 5.1 | 10.0% |
| Income tax income / (expense) | (15.9) | (16.6) | 0.7 | (4.2)% |
| Profit / (loss) for the period | 40.3 | 34.5 | 5.8 | 16.8% |
Group's total revenue developed as follows:
Revenue by region and business unit T _ 003
| Three months ended March 31, | ||||||
|---|---|---|---|---|---|---|
| IN € MILLIONS | 2021 | 2020 | Change | % change | % currency effect % organic growth | |
| EMEA | ||||||
| Automotive Gas Spring | 34.1 | 33.3 | 0.8 | 2.4% | 0.0% | 2.4% |
| Automotive Powerise® | 24.8 | 22.1 | 2.7 | 12.2% | (1.9)% | 14.1% |
| Industrial | 68.3 | 63.0 | 5.3 | 8.4% | (0.9)% | 9.3% |
| Total EMEA1) | 127.3 | 118.4 | 8.9 | 7.5% | (0.8)% | 8.3% |
| Americas | ||||||
| Automotive Gas Spring | 23.7 | 25.8 | (2.1) | (8.1)% | (10.4)% | 2.3% |
| Automotive Powerise® | 32.8 | 29.1 | 3.7 | 12.7% | (12.3)% | 25.0% |
| Industrial | 27.9 | 27.8 | 0.1 | 0.4% | (10.4)% | 10.8% |
| Total Americas1) | 84.4 | 82.7 | 1.7 | 2.1% | (11.1)% | 13.2% |
| APAC | ||||||
| Automotive Gas Spring | 19.7 | 12.5 | 7.2 | 57.6% | (3.2)% | 60.8% |
| Automotive Powerise® | 7.6 | 3.5 | 4.1 | >100.0% | (3.4)% | 120.5% |
| Industrial | 5.0 | 3.9 | 1.1 | 28.2% | (0.2)% | 28.4% |
| Total APAC1) | 32.3 | 20.0 | 12.3 | 61.5% | (2.6)% | 64.1% |
| Stabilus Group | ||||||
| Total Automotive Gas Spring | 77.6 | 71.6 | 6.0 | 8.4% | (4.3)% | 12.7% |
| Total Automotive Powerise® | 65.2 | 54.7 | 10.5 | 19.2% | (7.6)% | 26.8% |
| Total Industrial | 101.2 | 94.7 | 6.5 | 6.9% | (3.7)% | 10.6% |
| Revenue1) | 244.0 | 221.0 | 23.0 | 10.4% | (4.8)% | 15.2% |
1) Revenue breakdown by location of Stabilus company (i.e. "billed-from view").
Total revenue of €479.4 million in the first half of fiscal year 2021 increased by €27.1 million or 6.0% compared to the first half of fiscal year 2020. The effect from exchange rate changes amounted to €23.2 million, which led to an organic growth of €50.3 million or 11.1% in the first half of fiscal year 2021.
RESULTS OF OPERATIONS
The increase in Group revenue in the first half of fiscal year 2021 primarily occurred in APAC (€19.0 million or 37.5%, organic growth rate 39.6%) and EMEA (€12.3 million or 5.4%, organic growth rate 6.4%). Americas revenue decreased by €(4.2) million or (2.4)%, materially influenced by the weak Mexican peso and US dollar compared to the Euro. Americas organic growth rate was 9.0%.
| Revenue by region and business unit | T _ 004 | |
|---|---|---|
| Six months ended March 31, | ||||||
|---|---|---|---|---|---|---|
| IN € MILLIONS | 2021 | 2020 | Change | % change | % currency effect % organic growth | |
| EMEA | ||||||
| Automotive Gas Spring | 67.6 | 65.5 | 2.1 | 3.2% | 0.0% | 3.2% |
| Automotive Powerise® | 51.6 | 45.9 | 5.7 | 12.4% | (2.2)% | 14.6% |
| Industrial | 121.7 | 117.1 | 4.6 | 3.9% | (1.2)% | 5.1% |
| Total EMEA1) | 240.9 | 228.6 | 12.3 | 5.4% | (1.0)% | 6.4% |
| Americas | ||||||
| Automotive Gas Spring | 48.9 | 51.7 | (2.8) | (5.4)% | (11.1)% | 5.7% |
| Automotive Powerise® | 68.1 | 62.1 | 6.0 | 9.7% | (14.2)% | 23.9% |
| Industrial | 51.8 | 59.3 | (7.5) | (12.6)% | (8.7)% | (3.9)% |
| Total Americas1) | 168.8 | 173.0 | (4.2) | (2.4)% | (11.4)% | 9.0% |
| APAC | ||||||
| Automotive Gas Spring | 42.5 | 32.3 | 10.2 | 31.6% | (2.3)% | 33.9% |
| Automotive Powerise® | 18.2 | 10.3 | 7.9 | 76.7% | (2.5)% | 79.2% |
| Industrial | 9.0 | 8.1 | 0.9 | 11.1% | (0.8)% | 11.9% |
| Total APAC1) | 69.7 | 50.7 | 19.0 | 37.5% | (2.1)% | 39.6% |
| Stabilus Group | ||||||
| Total Automotive Gas Spring | 159.0 | 149.5 | 9.5 | 6.4% | (4.4)% | 10.8% |
| Total Automotive Powerise® | 137.8 | 118.3 | 19.5 | 16.5% | (8.5)% | 25.0% |
| Total Industrial | 182.5 | 184.5 | (2.0) | (1.1)% | (3.6)% | 2.5% |
| Revenue1) | 479.4 | 452.3 | 27.1 | 6.0% | (5.1)% | 11.1% |
1) Revenue breakdown by location of Stabilus company (i.e. "billed-from view").
Cost of sales increased from €(321.1) million in the first half of fiscal year 2020 by 4.2% to €(334.6) million in first half of fiscal year 2021. This increase is generally due to the increased revenue. However, based on stringent cost saving measures, i.e. especially realized in personnel costs due to flexibilization of our headcount structure, initiated in fiscal year 2020 to address the COVID-19 pandemic, the cost of sales increase (4.2%) is less than the revenue increase (6.0%). Consequently, the cost of sales as a percentage of revenue decreased by 120 basis points to 69.8% (PY: 71.0%) and the gross profit margin improved to 30.2% (PY: 29.0%).
R&D expenses (net of R&D cost capitalization) decreased from €(21.4) million in the first half of fiscal year 2020 by (2.3)% to €(20.9) million in the first half of fiscal year 2021. The Group continues to invest engineering activities aimed to develop new products and product applications, e.g. in our development of the Automotive Powerise® product range. As a percentage of revenue, R&D expenses decreased by 30 basis points to 4.4% (PY: 4.7%). The capitalization of R&D expenses (less related customer contribution) decreased from €(8.3) million in the first half of fiscal year 2020 to €(7.4) million in the first half of fiscal year 2021. The Group recognized non-recurring impairment charges of €(0.5) million in the first half of fiscal year 2021 compared to €(0.2) million in the first half of fiscal year 2020.
Selling expenses decreased from €(44.0) million in the first half of fiscal year 2020 by (6.6)% to €(41.1) million in the first half of fiscal year 2021. This decrease is amongst others due to a leaner cost structure, reflecting the merger of the business units Industrial / Capital Goods and Vibration & Velocity initiated in the first quarter of fiscal year 2020, lower travelling costs as well as from decreased ongoing amortization of intangible assets (customer relationships) from the PPA 2019. As a percentage of revenue, selling expenses decreased by 110 basis points to 8.6% (PY: 9.7%).
Administrative expenses increased from €(18.4) million in the first half of fiscal year 2020 by 14.1% to €(21.0) million in the first half of fiscal year 2021. This increase is driven by the ongoing digital transformation and harmonization of our IT systems especially the change to the SAP-Hana database and to cloud-based solutions, as well as increased personnelrelated provisions. As a percentage of revenue, administrative expenses increased by 30 basis points to 4.4% (PY: 4.1%).
Other income decreased from €4.9 million in the first half of fiscal year 2020 by €(1.8) million to €3.1 million in the first half of fiscal year 2021.
Other expenses increased from €(0.4) million in the first half of fiscal year 2020 by €(1.2) million to €(1.6) million in the first half of fiscal year 2021. This mainly comprises foreign currency translation losses from the operating business, primarily in Americas.
Finance income decreased from €5.3 million in the first half of fiscal year 2020 by €(4.9) million to €0.4 million in the first half of fiscal year 2021. The prior year includes net foreign exchange gains amounting to €5.0 million from the translation of intragroup loans, cash and cash equivalents, as well as from other financial liabilities (lease liabilities).
Finance costs increased from €(6.1) million in the first half of fiscal year 2020 by €(1.4) million to €(7.5) million in the first half of fiscal year 2021. The increase mainly results from net foreign exchange losses amounting to €(0.9) million and from increased interest expenses on financial liabilities as described below.
Finance costs primarily contain ongoing interest expense. Interest expense in the first half of fiscal year 2021 of €(6.3) million (PY: €(5.7) million) especially related to the term-loan facility, of which €(2.4) million (PY: €(2.5) million) is cash interest. In addition, an amount of €(3.9) million (PY: €(3.2) million) is due to the amortization of debt issuance cost and the amortization of the adjustment of the carrying value using the effective interest rate method. Thereof €(1.5) million (PY: €(0.9) million) relates to a prepayment of the term-loan facility in March 2021, which led to a derecognition of unamortized debt issuance costs and unamortized adjustments of the carrying value.
Income tax expense decreased from €(16.6) million in the first half of fiscal year 2020 to €(15.9) million in the first half of fiscal year 2021. The Stabilus Group´s effective tax rate in the first half of fiscal year 2021 is 28.3% (PY: 32.5%). The higher tax rate in the first half of fiscal year 2020 relates to withholding taxes charged on intra-group dividend payments mainly from Mexico, US and China.
The following table shows a reconciliation of EBIT (earnings before interest and taxes) to adjusted EBIT for the second quarter and the first half of the fiscal years 2021 and 2020:
| Three months ended March 31, | ||||
|---|---|---|---|---|
| IN € MILLIONS | 2021 | 2020 | Change | % change |
| Profit from operating activities (EBIT) | 35.2 | 26.5 | 8.7 | 32.8% |
| PPA adjustments – depreciation and amortization | 2.8 | 4.6 | (1.8) | (39.1)% |
| Adjusted EBIT | 38.0 | 31.1 | 6.9 | 22.2% |
| Six months ended March 31, | ||||
|---|---|---|---|---|
| IN € MILLIONS | 2021 | 2020 | Change | % change |
| Profit from operating activities (EBIT) | 63.3 | 51.9 | 11.4 | 22.0% |
| PPA adjustments – depreciation and amortization | 7.0 | 9.2 | (2.2) | (23.9)% |
| Adjusted EBIT | 70.3 | 61.1 | 9.2 | 15.1% |
Adjusted EBIT represents EBIT, adjusted for exceptional non-recurring items (e.g. restructuring or one-time advisory costs) and depreciation / amortization of fair value adjustments from purchase price allocations (PPAs).
Adjusted EBIT is presented because we believe it helps understanding our operating performance.
The PPA adjustments for depreciation and amortization in the first half of fiscal year 2021 amounted to €7.0 million (PY: €9.2 million). Thereof, €2.3 million (PY: €3.5 million) stem from the April 2010 PPA and €4.1 million (PY: €4.2 million) result from the June 2016 PPA. Furthermore, €0.5 million (PY: €1.5 million) relate to the acquisitions in fiscal year 2019.
The Stabilus Group is organized and managed primarily on a regional level. The three reportable operating segments of the Group are EMEA (Europe, Middle East and Africa), Americas (North and South America) and APAC (Asia Pacific).
The tables below set out the development of our operating segments for the second quarter and the first half of the fiscal years 2021 and 2020:
| Three months ended March 31, | ||||
|---|---|---|---|---|
| IN € MILLIONS | 2021 | 2020 | Change | % change |
| EMEA | ||||
| External revenue1) | 127.3 | 118.4 | 8.9 | 7.5% |
| Intersegment revenue1) | 9.1 | 7.2 | 1.9 | 26.4% |
| Total revenue1) | 136.4 | 125.6 | 10.8 | 8.6% |
| Adjusted EBIT | 19.5 | 15.5 | 4.0 | 25.8% |
| as % of total revenue | 14.3% | 12.3% | ||
| as % of external revenue | 15.3% | 13.1% | ||
| Americas | ||||
| External revenue1) | 84.4 | 82.7 | 1.7 | 2.1% |
| Intersegment revenue1) | 6.5 | 5.9 | 0.6 | 10.2% |
| Total revenue1) | 90.9 | 88.6 | 2.3 | 2.6% |
| Adjusted EBIT | 13.6 | 15.7 | (2.1) | (13.4)% |
| as % of total revenue | 15.0% | 17.7% | ||
| as % of external revenue | 16.1% | 19.0% | ||
| APAC | ||||
| External revenue1) | 32.3 | 20.0 | 12.3 | 61.5% |
| Intersegment revenue1) | – | – | – | n/a |
| Total revenue1) | 32.3 | 20.0 | 12.3 | 61.5% |
| Adjusted EBIT | 4.8 | (0.1) | 4.9 | >(100.0)% |
| as % of total revenue | 14.9% | (0.5)% | ||
| as % of external revenue | 14.9% | (0.5)% |
1) Revenue breakdown by location of Stabilus company (i.e. "billed-from view").
| Six months ended March 31, | ||||
|---|---|---|---|---|
| IN € MILLIONS | 2021 | 2020 | Change | % change |
| EMEA | ||||
| External revenue1) | 240.9 | 228.6 | 12.3 | 5.4% |
| Intersegment revenue1) | 16.2 | 14.1 | 2.1 | 14.9% |
| Total revenue1) | 257.1 | 242.7 | 14.4 | 5.9% |
| Adjusted EBIT | 34.3 | 29.0 | 5.3 | 18.3% |
| as % of total revenue | 13.3% | 11.9% | ||
| as % of external revenue | 14.2% | 12.7% | ||
| Americas | ||||
| External revenue1) | 168.8 | 173.0 | (4.2) | (2.4)% |
| Intersegment revenue1) | 12.1 | 11.5 | 0.6 | 5.2% |
| Total revenue1) | 180.9 | 184.6 | (3.7) | (2.0)% |
| Adjusted EBIT | 24.6 | 28.3 | (3.7) | (13.1)% |
| as % of total revenue | 13.6% | 15.3% | ||
| as % of external revenue | 14.6% | 16.4% | ||
| APAC | ||||
| External revenue1) | 69.7 | 50.7 | 19.0 | 37.5% |
| Intersegment revenue1) | 0.1 | 0.1 | – | – |
| Total revenue1) | 69.8 | 50.8 | 19.0 | 37.4% |
| Adjusted EBIT | 11.3 | 3.9 | 7.4 | >100.0% |
| as % of total revenue | 16.2% | 7.7% | ||
| as % of external revenue | 16.2% | 7.7% |
1) Revenue breakdown by location of Stabilus company (i.e. "billed-from view").
The external revenue generated by our companies located in the EMEA region increased from €228.6 million in the first half of fiscal year 2020 by 5.4% or €12.3 million to €240.9 million in the first half of fiscal year 2021. The currency translation effect amounted to €(2.4) million resulting in an organic growth rate of 6.4%. The growth is driven by our Automotive Powerise® business which increased from €45.9 million by 12.4% or €5.7 million to €51.6 million. The organic growth rate of the Automotive Powerise® was 14.6%. Our Automotive Gas Spring business grew from €65.5 million by 3.2% or €2.1 million to €67.6 million. The organic growth of the Automotive Gas Spring business was 3.2%. The Automotive business in the region recovered faster than expected, which is reflected in the increasing light-vehicle production and new car registrations in EMEA, however in the previous year the COVID-19 pandemic led to first closures of OEM plants. Our business also benefits from the various stimulus programs from governments to support the recovery of the economy, but the market environment is still characterized by the uncertainties due to potential further lockdown scenarios from the COVID-19 pandemic. The Industrial business increased from €117.1 million by 3.9% or €4.6 million to €121.7 million, organically the Industrial business increased by 5.1%. The recovery of the Industrial business, especially in March, reflects the strong demand in our broad product portfolio with growth in the market subsegment commercial vehicles, but with weak business in the subsegments energy & construction as well as in the aerospace and marine & rail business. The adjusted EBIT of the EMEA segment increased by 18.3% or €5.3 million, and the adjusted EBIT margin, i.e. adjusted EBIT in percent of external revenue, increased in the first half of fiscal year 2021 to 14.2% (PY: 12.7%).
The external revenue of our companies located in the Americas decreased from €173.0 million in the first half of fiscal year 2020 by (2.4)% or €(4.2) million to €168.8 million in the first half of fiscal year 2021. The currency translation effect amounted to €(19.7) million resulting in an organic growth rate of 9.0% and especially stems from the weak Mexican peso and US dollar. The Automotive Powerise® business increased from €62.1 million by 9.7% or €6.0 million to €68.1 million DEVELOPMENT OF OPERATING SEGMENTS
FINANCIAL POSITION
currency translation effect amounted to €(1.1) million resulting in an organic growth rate of 39.6%.This strong increase was especially driven by the Automotive Gas Spring business which increased from €32.3 million by 31.6% or €10.2 million to €42.5 million, the organic growth rate was 33.9%. The Automotive Powerise® business, increased from €10.3 million by 76.7% or €7.9 million to €18.2 million, organically the growth rate was 79.2%. Especially the Chinese light-vehicle market showed a strong growth compared to the prior year and exceeded market expectations. The Industrial business increased from €8.1 million by 11.1% or €0.9 million to €9.0 million, organic growth rate was 11.9%. The adjusted EBIT of the APAC segment increased by 189.7% or €7.4 million, and the adjusted EBIT margin increased in the first half of fiscal year 2021 to 16.2% (PY: 7.7%).
The external revenue of our companies located in APAC increased from €50.7 million in the first half of fiscal year 2020 by 37.5% or €19.0 million to €69.7 million in the first half of fiscal year 2021. The
first half of fiscal year 2021 to 14.6% (PY: 16.4%).
and organically 23.9%. The Automotive Gas Spring business decreased from €51.7 million by (5.4%) or €(2.8) million to €48.9 million. The organic growth rate was 5.7%. The Automotive industry is recovering in the US, especially with a strong demand for our Powerise® products. The lightvehicle market in the region was supported by customer discounts of various OEMs and by government grants to support the economy. Our Industrial business decreased from €59.3 million by (12.6)% or €(7.5) million to €51.8 million, organically the Industrial business decreased by €(2.3) million or (3.9)%. The Industrial market is weak in almost all sectors and behind market expectations, especially the solar damper business is weaker than prior year due to changed government incentives. The adjusted EBIT of the Americas segment decreased by €(13.1)% or €(3.7) million, and the adjusted EBIT margin reduced in the
A INTERIM GROUP MANAGEMENT REPORT B CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) C ADDITIONAL INFORMATION D INFORMATION RESOURCES
| Change | % change |
|---|---|
| (4.6) | (0.7)% |
| 88.0 | 21.7% |
| 83.4 | 7.7% |
| 37.0 | 7.9% |
| 46.7 | 11.0% |
| (0.2) | (0.1)% |
| 46.4 | 7.6% |
| 83.4 | 7.7% |
The Group's balance sheet total increased from €1,083.6 million as of September 30, 2020, by 7.7% or €83.4 million to €1,167.0 million as of March 31, 2021.
Our non-current assets decreased from €678.2 million as of September 30, 2020, by (0.7)% or €(4.6) million to €673.6 million as of March 31, 2021. This reduction is driven by the ongoing amortization of €(13.7) million on other intangible assets mainly from purchase price allocations and by the ongoing depreciation of €(17.7) million on property, plant and equipment. This was partly offset by investments of €12.9 million in fixed assets for ongoing capacity expansion projects.
Current assets increased from €405.4 million as of September 30, 2020, by 21.7% or €88.0 million to €493.4 million as of March 31, 2021. This was primarily driven by an increased cash balance (+€52.8 million), attributable to the cash inflow from the promissory note loan amounting to €95.0 million, which was partly offset by a prepayment of the termloan facility amounting to €(47.4) million in March 2021 and from the dividend payment amounting to €(12.4) million paid out in February 2021. Furthermore, trade accounts receivable increased by €12.4 million due to higher sales and inventories increased by €18.8 million in order to secure our supply chain and to ensure our ability to facilitate the rising demand. This was partly offset by a decrease in current tax assets by €3.7 million due to a tax reimbursement related to the US restructuring in fiscal year 2018. In addition, other assets increased amounting to €8.0 million due to increased VAT receivables (+€3.9 million) and increased deferred charges (+€3.8 million).
FINANCIAL POSITION LIQUIDITY
The Group's equity increased from €469.6 million as of September 30, 2020, by €37.0 million to €506.6 million as of March 31, 2021. This increase results from the profit of €40.3 million and from the other comprehensive income, which increased by €9.7 million. This comprises unrealized actuarial gains on pensions (net of tax) amounting to €0.8 million and unrealized gains from foreign currency translation amounting to €8.9 million. This increase was partly offset by the dividend payment to our shareholders amounting to €(12.4) million in the second quarter of fiscal year 2021.
Non-current liabilities increased from €425.5 million as of September 30, 2020, by 11.0% or €46.7 million to €472.2 million as of March 31, 2021. This increase especially relates to the issue of a promissory note loan amounting to €95.0 million, partly offset by a prepayment of the termloan facility amounting to €(47.4) million in March 2021. Furthermore, the pension liabilities decreased by €(1.6) million as a consequence of the increased discount rate (March 31, 2021: 1.30% versus September 30, 2020: 1.14%).
Current liabilities decreased slightly from €188.4 million as of September 30, 2020, by €(0.2) million or (0.1)% to €188.2 million as of March 31, 2021. Financial liabilities decreased by €(26.7) million and is due to repayments of the revolving credit facility. The overall decrease was offset by increased trade accounts payable by €11.8 million and by increased provisions by €11.1 million (personnel-related expenses €6.0 million and warranties €3.8 million), as a consequence of the increased business volume in the first half of fiscal year 2021. Furthermore, other liabilities increased by €3.1 million.
Cash flows T _ 009
| Six months ended March 31, | ||||
|---|---|---|---|---|
| IN € MILLIONS | 2021 | 2020 | Change | % change |
| Cash flow from operating activities | 69.9 | 43.6 | 26.3 | 60.3% |
| Cash flow from investing activities | (19.2) | (23.9) | 4.7 | (19.7)% |
| Cash flow from financing activities | 0.7 | (33.0) | 33.7 | <(100.0)% |
| Net increase / (decrease) in cash | 51.3 | (13.3) | 64.6 | <(100.0)% |
| Effect of movements in exchange rates on cash held | 1.4 | (3.1) | 4.5 | <(100.0)% |
| Cash as of beginning of the period | 162.4 | 139.0 | 23.4 | 16.8% |
| Cash as of end of the period | 215.2 | 122.7 | 92.5 | 75.4% |
Cash flow from operating activities increased from €43.6 million in the first half of fiscal year 2020 by €26.3 million to €69.9 million in the first half of fiscal year 2021. The increase resulted from lower income tax payments of €13.4 million, including a tax reimbursement of €3.0 million from the US restructuring in fiscal year 2018, and, from the improved operating performance compared to the prior year. To mitigate risks in the supply chain, Stabilus invested into inventories.
Cash outflow for investing activities decreased from €(23.9) million in the first half of fiscal year 2020 by €4.7 million to €(19.2) million in the first half of fiscal year 2021. This decrease is due to lower capital expenditures in intangible assets amounting to €1.0 million and in property, plant and equipment amounting to €2.3 million. In prior year a payment of €(1.1) million was paid in relation to the acquisition of Piston.
Cash flow from financing activities strongly decreased from €(33.0) million in the first half of fiscal year 2020 by €33.7 million to €0.7 million in the first half of fiscal year 2021. This was mainly attributable to the cash inflow of the promissory note loan of €95.0 million offset by the repayment of the term-loan facility amounting to €(47.4) million (PY: €(20.0) million) and of our financial liabilities (especially the revolving credit facility) amounting to €(27.6) million. Furthermore, the decrease was partly offset by lower dividends of €(12.4) million (PY: €(27.2) million) paid to our shareholders in February 2021.
Free cash flow (FCF) is defined as the total of cash flow from operating and investing activities. The Group considers FCF as an essential alternative performance measure as it aids in the evaluation of the Group´s ability to generate cash that can be used, among others, for further investments. The following table sets out the composition of FCF:
Six months ended March 31,
| IN € MILLIONS | 2021 | 2020 | Change | % change |
|---|---|---|---|---|
| Cash flow from operating activities | 69.9 | 43.6 | 26.3 | 60.3% |
| Cash flow from investing activities | (19.2) | (23.9) | 4.7 | (19.7)% |
| Free cash flow | 50.7 | 19.7 | 31.0 | >100.0% |
Adjusted free cash flow is defined as the total of cash flow from operating and investing activities before acquisitions. The adjusted free cash flow increased from €20.8 million in the first half of fiscal year 2020 to €50.7 million in the first half of fiscal year 2021.
Six months ended March 31, IN € MILLIONS 2021 2020 Change % change Cash flow from operating activities 69.9 43.6 26.3 60.3% Cash flow from investing activities before acquisitions (19.2) (22.8) 3.6 (15.8)% Adjusted FCF 50.7 20.8 29.9 >100.0%
The net leverage ratio is defined as net financial debt divided by adjusted EBITDA for the last twelve months (adjusted EBITDA LTM).
Net financial debt is the nominal amount of financial debt, i.e. current and non-current financial liabilities, less cash and cash equivalents. Adjusted EBITDA is defined as adjusted EBIT before depreciation / amortization and before exceptional non-recurring items (e.g. restructuring or one-time advisory costs).
The net leverage ratio decreased from 1.1x for the twelve months ending March 31, 2020, to 0.9x for the twelve months ending March 31, 2021 (September 30, 2020 at 1.2x). See the following table:
| IN € MILLIONS | March 31, 2021 | March 31, 2020 | Change | % change |
|---|---|---|---|---|
| Financial debt | 354.1 | 327.8 | 26.3 | 8.0% |
| Cash and cash equivalents | (215.2) | (122.7) | (92.5) | 75.4% |
| Net financial debt | 138.9 | 205.1 | (66.2) | (32.3)% |
| Adjusted EBITDA (LTM ended March 31) | 156.9 | 184.4 | (27.5) | (14.9)% |
| Net leverage ratio1) | 0.9x | 1.1x |
1) The net leverage ratio is defined as net financial debt divided by adjusted EBITDA for the last twelve months.
| IN € MILLIONS | March 31, 2021 March 31, 2020 | |
|---|---|---|
| Financial liabilities (non-current) | 338.0 | 291.2 |
| Financial liabilities (current) | 7.6 | 23.3 |
| Adjustment carrying value | 8.5 | 13.3 |
| Financial debt | 354.1 | 327.8 |
| IN € MILLIONS | March 31, 2021 | March 31, 2020 | Change | % change |
|---|---|---|---|---|
| Profit from operating activities (EBIT) | 67.5 | 119.3 | (51.8) | (43.4)% |
| Depreciation | 35.4 | 32.0 | 3.4 | 10.6% |
| Amortization | 31.3 | 34.0 | (2.7) | (7.9)% |
| PPA adjustments – impairment on intangible assets | 25.7 | – | 25.7 | n/a |
| EBITDA | 159.9 | 185.3 | (25.4) | (13.7)% |
| Advisory | – | 0.2 | (0.2) | n/a |
| Environmental protection measures | – | 1.5 | (1.5) | n/a |
| PPA adjustments – inventory step-up | – | 0.7 | (0.7) | n/a |
| Purchase price adjustment | (3.0) | (3.3) | 0.3 | (9.1)% |
| Adjusted EBITDA | 156.9 | 184.4 | (27.5) | (14.9)% |
Adjusted EBITDA (LTM ended March 31) T _ 014
| The net leverage ratio decreased from 1.1x for t | |
|---|---|
| ent and | March 31, 2020, to 0.9x for the twelve month |
| hatariih | $(Santamhar 30, 2020 at 1.2x)$ See the following |
RISKS AND OPPORTUNITIES SUBSEQUENT EVENTS OUTLOOK
The COVID-19 pandemic is still affecting the macroeconomic environment and the global economy is characterized by the consequential uncertainties, which bear various risks for Stabilus as well. The Group continues with its global multidisciplinary crisis management team to monitor and analyze the situation on a weekly basis on a local and a global level and is taking actions to address and mitigate identified risks. In addition, Stabilus emphasizes a very strict monitoring of cost, liquidity as well as impairment risks. All employees are well informed about safety measures in business and private life and the further use of home offices reduces the risk of the virus spreading further.
We also refer to the Group Management Report and the audited consolidated financial statements as of and for the fiscal year ended September 30, 2020, for the general risk-related disclosures.
As of April 30, 2021, there were no further events or developments that could have materially affected the measurement and presentation of the Group's assets and liabilities as of March 31, 2021.
Against the backdrop of the business performance in the first half of fiscal year 2021, Stabilus is raising its full-year guidance to revenue of between €900 million to €950 million (previously: between €850 million to €900 million) and with an adjusted EBIT margin of between 13% and 15% (previously: between 12% and 13%). This is reflecting a further stabilizing global economy and recovery in the global automotive production. However, due to the COVID-19 pandemic an uncertainty remains.
as of and for the three and six months ended March 31, 2021
for the three and six months ended March 31, 2021 (unaudited)
| Three months ended March 31, | Six months ended March 31, | ||||
|---|---|---|---|---|---|
| IN € THOUSANDS | Note | 2021 | 2020 | 2021 | 2020 |
| Revenue | 2 | 243,965 | 220,986 | 479,407 | 452,342 |
| Cost of sales | (169,274) | (156,502) | (334,627) | (321,103) | |
| Gross profit | 74,691 | 64,484 | 144,780 | 131,239 | |
| Research and development expenses | (10,456) | (10,877) | (20,914) | (21,407) | |
| Selling expenses | (20,654) | (22,000) | (41,143) | (44,007) | |
| Administrative expenses | (10,935) | (9,967) | (20,955) | (18,446) | |
| Other income | 2,781 | 5,135 | 3,135 | 4,927 | |
| Other expenses | (224) | (303) | (1,575) | (432) | |
| Profit from operating activities | 35,203 | 26,472 | 63,328 | 51,874 | |
| Finance income | 3 | 5,145 | 5,792 | 407 | 5,331 |
| Finance costs | 4 | (4,164) | (3,616) | (7,531) | (6,122) |
| Profit / (loss) before income tax | 36,184 | 28,648 | 56,204 | 51,083 | |
| Income tax income / (expense) | (10,239) | (10,541) | (15,939) | (16,604) | |
| Profit / (loss) for the period | 25,945 | 18,107 | 40,265 | 34,479 | |
| thereof attributable to non-controlling interests | (40) | 108 | (32) | 234 | |
| thereof attributable to shareholders of Stabilus | 25,985 | 17,999 | 40,297 | 34,245 | |
| Other comprehensive income / (expense) | |||||
| Foreign currency translation difference1) | 11 | 7,796 | (13,635) | 8,899 | (19,914) |
| Unrealized actuarial gains and losses2) | 11 | 1,968 | 4,746 | 824 | 6,040 |
| Other comprehensive income / (expense), net of taxes | 9,764 | (8,889) | 9,723 | (13,874) | |
| Total comprehensive income / (expense) for the period | 35,709 | 9,218 | 49,988 | 20,605 | |
| thereof attributable to non-controlling interests | (2,350) | 108 | (2,342) | 234 | |
| thereof attributable to shareholders of Stabilus | 38,059 | 9,110 | 52,330 | 20,371 | |
| Earnings per share (in €): | |||||
| basic | 5 | 1.05 | 0.73 | 1.63 | 1.39 |
| diluted | 5 | 1.05 | 0.73 | 1.63 | 1.39 |
1) Item that may be reclassified ('recycled') to profit and loss at a future point in time when specific conditions are met.
2) Item that will not be reclassified to profit and loss.
as of March 31, 2021 (unaudited)
Consolidated statement of financial position T _ 016
| IN € THOUSANDS | Note | March 31, 2021 | Sept 30, 2020 |
|---|---|---|---|
| Assets | |||
| Property, plant and equipment | 6 | 228,507 | 229,809 |
| Goodwill | 207,669 | 207,661 | |
| Other intangible assets | 7 | 223,798 | 229,251 |
| Other assets | 9 | 628 | 281 |
| Deferred tax assets | 12,950 | 11,149 | |
| Total non-current assets | 673,552 | 678,151 | |
| Inventories | 10 | 115,971 | 97,237 |
| Trade accounts receivable | 129,440 | 117,071 | |
| Current tax assets | 5,909 | 9,591 | |
| Other financial assets | 8 | 7,151 | 7,274 |
| Other assets | 9 | 19,781 | 11,816 |
| Cash and cash equivalents | 215,180 | 162,431 | |
| Total current assets | 493,432 | 405,420 | |
| Total assets | 1,166,984 | 1,083,571 |
| IN € THOUSANDS | Note | March 31, 2021 | Sept 30, 2020 |
|---|---|---|---|
| Equity and liabilities | |||
| Issued capital | 247 | 247 | |
| Capital reserves | 225,848 | 225,848 | |
| Retained earnings | 315,649 | 287,702 | |
| Other reserves | 11 | (40,087) | (52,120) |
| Equity attributable to shareholders of Stabilus | 501,657 | 461,677 | |
| Non-controlling interests | 4,939 | 7,921 | |
| Total equity | 506,596 | 469,598 | |
| Financial liabilities | 12 | 338,023 | 288,078 |
| Other financial liabilities | 13 | 30,830 | 33,066 |
| Provisions | 15 | 3,339 | 3,699 |
| Pension plans and similar obligations | 16 | 55,394 | 57,029 |
| Deferred tax liabilities | 44,607 | 43,656 | |
| Total non-current liabilities | 472,193 | 425,528 | |
| Trade accounts payable | 82,847 | 71,080 | |
| Financial liabilities | 12 | 7,572 | 34,306 |
| Other financial liabilities | 13 | 16,777 | 16,345 |
| Current tax liabilities | 9,738 | 9,658 | |
| Provisions | 15 | 51,293 | 40,168 |
| Other liabilities | 17 | 19,968 | 16,888 |
| Total current liabilities | 188,195 | 188,445 | |
| Total liabilities | 660,388 | 613,973 | |
| Total equity and liabilities | 1,166,984 | 1,083,571 |
Consolidated statement of financial position T _ 016
for the six months ended March 31, 2021 (unaudited)
Consolidated statement of changes in equity T _ 017
| IN € THOUSANDS | Note | Issued capital |
Capital reserves | Retained earnings | Other reserves | Equity attributable to shareholders of Stabilus |
Non-controlling interests |
Total equity |
|---|---|---|---|---|---|---|---|---|
| Balance as of Sept 30, 2019 | 247 | 225,848 | 283,423 | (19,283) | 490,235 | 9,382 | 499,617 | |
| Profit / (loss) for the period | – | – | 34,245 | – | 34,245 | 234 | 34,479 | |
| Other comprehensive income / (expense) | 11 | – | – | – | (13,874) | (13,874) | – | (13,874) |
| Total comprehensive income for the period | – | – | 34,245 | (13,874) | 20,371 | 234 | 20,605 | |
| Dividends | – | – | (27,170) | – | (27,170) | – | (27,170) | |
| Change in ownership interest in subsidiaries without a change of control |
– | – | 16 | – | 16 | (16) | – | |
| Balance as of March 31, 2020 | 247 | 225,848 | 290,514 | (33,157) | 483,452 | 9,600 | 493,052 | |
| Balance as of Sept 30, 2020 | 247 | 225,848 | 287,702 | (52,120) | 461,677 | 7,921 | 469,598 | |
| Profit / (loss) for the period | – | – | 40,297 | – | 40,297 | (32) | 40,265 | |
| Other comprehensive income / (expense) | 11 | – | – | – | 12,033 | 12,033 | (2,310) | 9,723 |
| Total comprehensive income for the period | – | – | 40,297 | 12,033 | 52,330 | (2,342) | 49,988 | |
| Dividends | – | – | (12,350) | – | (12,350) | (640) | (12,990) | |
| Change in ownership interest in subsidiaries without a change of control |
– | – | – | – | – | – | – | |
| Balance as of March 31, 2021 | 247 | 225,848 | 315,649 | (40,087) | 501,657 | 4,939 | 506,596 |
A INTERIM GROUP MANAGEMENT REPORT B CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) C ADDITIONAL INFORMATION D INFORMATION RESOURCES CONSOLIDATED STATEMENT OF CASH FLOWS
for the six months ended March 31, 2021 (unaudited)
| Consolidated statement of cash flows T _ 018 |
Consolidated statement of cash flows | T _ 018 | ||||
|---|---|---|---|---|---|---|
| Six months ended March 31, | ||||||
| Note | 2021 | 2020 | IN € THOUSANDS | Note | 2021 | 2020 |
| 40,265 | 34,479 | Proceeds from disposal of property, plant and equipment | 650 | 324 | ||
| 15,939 | 16,604 | Purchase of intangible assets | 7 | (7,726) | (8,736) | |
| 3 / 4 | 7,126 | 791 | Purchase of property, plant and equipment | 6 | (12,118) | (14,454) |
| 3 / 4 | 86 | 327 | Acquisition of assets and liabilities within the business combi | |||
| (1,062) | ||||||
| Cash flow from investing activities | (19,194) | (23,928) | ||||
| Receipts from financial liabilities | 95,000 | 21,609 | ||||
| Payments for redemption of financial liabilities | (27,569) | (838) | ||||
| Payments for redemption of senior facilities | (47,358) | (20,000) | ||||
| Payments for lease liabilities | (4,051) | (4,123) | ||||
| (27,170) | ||||||
| – | ||||||
| 20 | (2,487) | |||||
| 69,858 | 43,637 | |||||
| 31,394 (180) (18,734) (12,369) 11,767 (2,548) 10,221 (13,109) |
Six months ended March 31, 34,860 (17) (4,355) 15,965 (16,602) (8,916) (2,973) (26,526) |
nation, net of cash acquired Dividends paid Dividends paid to non-controlling interests Payments for interest |
20 | – (12,350) (640) (2,377) |
| Six months ended March 31, | |||
|---|---|---|---|
| IN € THOUSANDS | Note | 2021 | 2020 |
| Proceeds from disposal of property, plant and equipment | 650 | 324 | |
| Purchase of intangible assets | 7 | (7,726) | (8,736) |
| Purchase of property, plant and equipment | 6 | (12,118) | (14,454) |
| Acquisition of assets and liabilities within the business combi nation, net of cash acquired |
– | (1,062) | |
| Cash flow from investing activities | (19,194) | (23,928) | |
| Receipts from financial liabilities | 95,000 | 21,609 | |
| Payments for redemption of financial liabilities | (27,569) | (838) | |
| Payments for redemption of senior facilities | (47,358) | (20,000) | |
| Payments for lease liabilities | (4,051) | (4,123) | |
| Dividends paid | (12,350) | (27,170) | |
| Dividends paid to non-controlling interests | (640) | – | |
| Payments for interest | 20 | (2,377) | (2,487) |
| Cash flow from financing activities | 655 | (33,009) | |
| Net increase / (decrease) in cash and cash equivalents | 51,319 | (13,300) | |
| Effect of movements in exchange rates on cash held | 1,430 | (3,055) | |
| Cash and cash equivalents as of beginning of the period | 162,431 | 139,020 | |
| Cash and cash equivalents as of end of the period | 215,180 | 122,665 |
A INTERIM GROUP MANAGEMENT REPORT B CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) C ADDITIONAL INFORMATION D INFORMATION RESOURCES NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS GENERAL INFORMATION
as of and for the three and six months ended March 31, 2021
Stabilus S. A., Luxembourg, hereinafter also referred to as "Stabilus" or the "Company" is a public limited liability company (société anonyme) incorporated in Luxembourg and governed by Luxembourg law. The Company is registered with the Luxembourg Trade and Companies Register (Registre de Commerce et des Sociétés Luxembourg) under No. B151589 and its registered office is located at 2, rue Albert Borschette, L-1246 Luxembourg, Grand Duchy of Luxembourg. The Company was founded under the name Servus HoldCo S.à r. l. on February 26, 2010.
The Company´s fiscal year is from October 1 to September 30 of the following year (twelve-month period). The consolidated financial statements of Stabilus S. A. include Stabilus and its subsidiaries (hereafter also referred to as "Stabilus Group" or the "Group").
The Stabilus Group is a leading manufacturer of gas springs, dampers, vibration isolation products as well as electric tailgate opening and closing equipment. The products are used in a wide range of applications in the automotive, industrial and domestic sector, as well as in the furniture industry. Typically, the products are used to support the lifting and lowering or dampening of movements. As world market leader for gas springs, the Group ships to all key vehicle manufacturers. Various Tier 1 suppliers of the global car industry as well as large technical focused distributors further diversify the Group's customer base.
The accompanying condensed interim consolidated financial statements as of March 31, 2021, present the operations of the Company and its subsidiaries. They have been prepared in accordance with IAS 34 "Interim Financial Reporting" and comply with the International Financial Reporting Standards (IFRS) as adopted by the European Union. Selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the financial position and performance of the Stabilus Group since the last annual consolidated financial statements as of and for the fiscal year ended September 30, 2020. As the interim consolidated financial statements are presented in considerably less detail than complete financial statements, they should be read in conjunction with the Company's consolidated financial statements as of September 30, 2020. The interim consolidated financial statements and the interim group management report have not been audited or reviewed by our group auditor.
The accounting policies adopted in the preparation of the condensed interim consolidated financial statements are consistent with those followed in the preparation of the Group's annual financial statements for the fiscal year ended September 30, 2020. The assumptions made for the preparation of the interim consolidated financial statements are based on management's best estimates as of the reporting date. In interim periods, income tax expense is based on management's best estimate of the weighted average effective annual income tax rate that is expected for the full financial year. Further information regarding the effects resulting from possible changes in such estimates can be found in the respective parts of the notes if considered material.
On March 31, 2021 the IASB extended the application for the accounting for COVID-19-Related Rent Concession for one more year until June 30, 2022. The amendment covers rent concessions that reduce only lease payments due on or before June 30, 2022. The original amendment was issued by the IASB in May 2020. The amendment can be applied from all lessees but not from lessors and provides for an optional simplification that allows lessees to dispense with the assessment of whether a rental agreement in connection with COVID-19 constitutes a modification of the lease in accordance with IFRS 16. Instead, lessees should be given the option to treat such rent concessions as if they were not a modification of the lease. The practical expedient would apply only to rent concessions occurring as a direct consequence of the COVID-19 pandemic and only if all of the following conditions are met:
Lessees that apply the exemption will need to disclose that fact. Furthermore, this practical expedient must be applied consistently to all lease contracts with similar characteristics and in similar circumstances. The amendment is effective for annual reporting periods beginning on or after April 1, 2021. Earlier application is permitted, including in financial statements not authorized for issue at March 31, 2021.
These condensed interim consolidated financial statements as of and for the three and six months ended March 31, 2021, comprise the consolidated statement of comprehensive income for the three and six months ended March 31, 2021, the consolidated statement of financial position as of March 31, 2021, the consolidated statement of changes in equity for the six months ended March 31, 2021, the consolidated statement of cash flows for the six months ended March 31, 2021, and explanatory notes to the condensed interim consolidated financial statements. The condensed interim consolidated financial statements are prepared in euros (€) rounded to the nearest thousand. Due to rounding, numbers presented may not add up precisely to the totals provided. The condensed interim consolidated financial statements were authorized for issue by the Management Board on April 30, 2021.
A INTERIM GROUP MANAGEMENT REPORT B CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) C ADDITIONAL INFORMATION D INFORMATION RESOURCES NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS REVENUE
| Three months ended March 31, | Six months ended March 31, | ||||
|---|---|---|---|---|---|
| IN € THOUSANDS | 2021 | 2020 | 2021 | 2020 | |
| EMEA | |||||
| Automotive Gas Spring | 34,140 | 33,289 | 67,642 | 65,540 | |
| Automotive Powerise® | 24,848 | 22,097 | 51,552 | 45,905 | |
| Industrial | 68,335 | 62,972 | 121,730 | 117,136 | |
| Total EMEA1) | 127,323 | 118,358 | 240,924 | 228,581 | |
| Americas | |||||
| Automotive Gas Spring | 23,700 | 25,788 | 48,909 | 51,652 | |
| Automotive Powerise® | 32,798 | 29,107 | 68,056 | 62,125 | |
| Industrial | 27,862 | 27,780 | 51,796 | 59,252 | |
| Total Americas1) | 84,360 | 82,675 | 168,761 | 173,029 | |
| APAC | |||||
| Automotive Gas Spring | 19,741 | 12,509 | 42,494 | 32,294 | |
| Automotive Powerise® | 7,584 | 3,545 | 18,219 | 10,328 | |
| Industrial | 4,957 | 3,899 | 9,009 | 8,110 | |
| Total APAC1) | 32,282 | 19,953 | 69,722 | 50,732 | |
| Stabilus Group | |||||
| Total Automotive Gas Spring | 77,581 | 71,586 | 159,045 | 149,486 | |
| Total Automotive Powerise® | 65,230 | 54,749 | 137,827 | 118,358 | |
| Total Industrial | 101,154 | 94,651 | 182,535 | 184,498 | |
| Revenue1) | 243,965 | 220,986 | 479,407 | 452,342 |
1) Revenue breakdown by location of Stabilus company (i.e. "billed-from view").
A INTERIM GROUP MANAGEMENT REPORT B CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) C ADDITIONAL INFORMATION D INFORMATION RESOURCES NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FINANCE INCOME FINANCE COSTS EARNINGS PER SHARE
| Three months ended March 31, | Six months ended March 31, | ||||
|---|---|---|---|---|---|
| IN € THOUSANDS | 2021 | 2020 | 2021 | 2020 | |
| Interest income on loans and financial receivables | 87 | 164 | 170 | 301 | |
| Net foreign exchange gain | 4,824 | 5,612 | – | 5,004 | |
| Other interest income | 234 | 16 | 237 | 26 | |
| Finance income | 5,145 | 5,792 | 407 | 5,331 |
| IN € THOUSANDS | Three months ended March 31, | Six months ended March 31, | |||
|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | ||
| Interest expenses on financial liabilities | (3,629) | (2,903) | (5,727) | (4,909) | |
| Net foreign exchange loss | – | – | (852) | – | |
| Interest expenses lease liabilities | (322) | (372) | (665) | (751) | |
| Other interest expenses | (213) | (341) | (287) | (462) | |
| Finance costs | (4,164) | (3,616) | (7,531) | (6,122) |
Basic and diluted earnings per share are calculated by dividing the profit attributable to the shareholders of the Company by the weighted average number of shares outstanding.
The weighted average number of shares used for the calculation of earnings per share in the six months ended March 31, 2021 and 2020, is set out in the following table:
| Number of days DATE |
Transaction | Change | Total shares | Total shares (time-weighted) | ||
|---|---|---|---|---|---|---|
| October 1, 2019 | 182 | – | – | 24,700,000 | 24,700,000 | |
| March 31, 2020 | – | – | 24,700,000 | 24,700,000 | ||
| October 1, 2020 | 181 | – | – | 24,700,000 | 24,700,000 | |
| March 31, 2021 | – | – | 24,700,000 | 24,700,000 |
The earnings per share for the six months ended March 31, 2021 and 2020, were as follows: Finance income T_020
| Earnings per share | T _ 023 | |
|---|---|---|
| Six months ended March 31, | ||
| IN € THOUSAND | 2021 | 2020 |
| Profit / (loss) attributable to shareholders of Stabilus |
40,297 | 34,245 |
| Weighted average number of shares |
24,700,000 | 24,700,000 |
| Earnings per share (in €) | 1.63 | 1.39 |
A INTERIM GROUP MANAGEMENT REPORT B CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) C ADDITIONAL INFORMATION D INFORMATION RESOURCES NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS PROPERTY, PLANT AND EQUIPMENT
OTHER INTANGIBLE ASSETS
| Property, plant and equipment - carrying amount | T _ 024 | |
|---|---|---|
| IN € THOUSANDS | March 31, 2021 | Sept 30, 2020 |
| Land, equivalent rights to real property |
17,504 | 17,421 |
| Building and land improvements | 42,655 | 36,924 |
| Technical equipment and machinery |
88,330 | 89,848 |
| Other tangible equipment | 14,100 | 14,736 |
| Construction in progress | 29,740 | 32,330 |
| RoU – Building and land improvements |
31,469 | 33,824 |
| RoU – Technical equipment and machinery |
1,303 | 1,443 |
| RoU – Other tangible equipment | 3,406 | 3,283 |
| Total | 228,507 | 229,809 |
Property, plant and equipment as of March 31, 2021, amounted to €228,507 thousand (Sept 30, 2020: €229,809 thousand).
In the the first six months of fiscal year 2021 the Group invested €11,678 thousand (H1 FY2020: €12,056 thousand) in property, plant and equipment and signed new leasing contracts amounting to €1,189 thousand (H1 FY2020 €2,654 thousand). In the first six months of fiscal year 2021, total depreciation expense for tangible assets amounted to €(17,705) thousand (H1 FY2020: €(18,215) thousand), thereof €(4,051) thousand (H1 FY2020 €(4,123) thousand) from leasing (IFRS16). In the first half of fiscal year 2021, the Group received government grants for the ramp-up of the dedicated Powerise production building in Pinghu, amounted to €729 thousand (PY: €0 thousand).
Disposals occurred only in the ordinary course of business. The net value of disposed property, plant and equipment in the first six months of fiscal year 2021 amounted to €(470) thousand (H1 FY2020:
6 Property, plant and equipment €(85) thousand). The Group recognized impairment losses on property, plant and equipment in the first six months of fiscal year 2021 amounting to €(17) thousand (H1 FY2020: €0).
Contractual commitments for the acquisition of property, plant and equipment amount to €3,378 thousand (Sept 30, 2020: €1,983 thousand).
Prepayments by the Stabilus Group for property, plant and equipment of €291 thousand (Sept 30, 2020: €28 thousand) are included in other non-current assets.
Other intangible assets - carrying amount T _ 025
| IN € THOUSANDS | March 31, 2021 | Sept 30, 2020 |
|---|---|---|
| Development cost | 31,493 | 32,344 |
| Development cost under construction |
26,997 | 24,399 |
| Software | 2,593 | 2,936 |
| Patents | 453 | 499 |
| Customer Relationship | 143,643 | 149,148 |
| Technology | 12,040 | 12,652 |
| Tradename | 6,579 | 7,273 |
| Total | 223,798 | 229,251 |
Other intangible assets as of March 31, 2021, amounted to €223,798 thousand (Sept 30, 2020: €229,251 thousand). Additions to intangible assets in the first six months of fiscal year 2021 amounted to €7,638 thousand (H1 FY2020: €8,672 thousand) and mainly comprised capitalized development costs (less related customer contributions) of €7,400 thousand (H1 FY2020: €8,297 thousand). Borrowing costs capitalized in the first six months of fiscal year 2021 amounted to €88 thousand (H1 FY2020: €63 thousand).
In the first six months of fiscal year 2021, total amortization expense on intangible assets amounted to €(13,689) thousand (H1 FY2020: €(16,645) thousand). Amortization expenses on development costs include impairment losses of €(537) thousand (H1 FY2020: €(238) thousand) due to withdrawal of customers from the respective projects and change in expected benefits.
No significant disposals have been recognized.
Contractual commitments for the acquisition of intangible assets amount to €1,101 thousand (Sept 30, 2020: €1,459 thousand).
| March 31, 2021 | Sept 30, 2020 | |||||
|---|---|---|---|---|---|---|
| IN € THOUSANDS | Current | Non-current | Total | Current | Non-current | Total |
| Other miscellaneous | 7,151 | – | 7,151 | 7,274 | – | 7,274 |
| Other financial assets | 7,151 | – | 7,151 | 7,274 | – | 7,274 |
Other miscellaneous financial assets as of March 31, 2021, comprise €4,538 thousand (Sept 30, 2020: €4,538 thousand) from the anticipated purchase price adjustment and the contingent consideration from the business combination with General Aerospace GmbH. Furthermore, an amount of €2,613 thousand (Sept 30, 2020: €2,736 thousand) is related to the security retention amount of the sale of trade accounts receivable from a factoring arrangement (€21.8 million (Sept 30, 2020: €20.9 million)). Stabilus considers that its other financial assets have a low credit risk based on the external credit ratings of the customers and impairments were insignificant.
| March 31, 2021 | ||||||
|---|---|---|---|---|---|---|
| IN € THOUSANDS | Current | Non-current | Total | Current | Non-current | Total |
| VAT | 7,130 | – | 7,130 | 3,278 | – | 3,278 |
| Prepayments | 2,485 | 291 | 2,776 | 1,967 | 28 | 1,995 |
| Deferred charges | 8,437 | – | 8,437 | 4,613 | – | 4,613 |
| Other miscellaneous | 1,729 | 337 | 2,066 | 1,958 | 253 | 2,211 |
| Other assets | 19,781 | 628 | 20,409 | 11,816 | 281 | 12,097 |
Non-current prepayments comprise prepayments on property, plant and equipment.
The development of the Group's equity is presented in the statement of changes in equity.
Other reserves comprise all foreign currency differences arising from the translation of the financial statements of foreign operations and unrealized actuarial gains and losses. The following table shows the changes in other reserves recognized in equity through other comprehensive income as well as the income tax recognized in equity through other comprehensive income:
| Inventories | T _ 028 | |
|---|---|---|
| IN € THOUSANDS | March 31, 2021 | Sept 30, 2020 |
| Raw materials and supplies | 56,923 | 48,049 |
| Finished products | 25,793 | 21,521 |
| Work in progress | 16,700 | 13,731 |
| Merchandise | 16,555 | 13,936 |
| Inventories | 115,971 | 97,237 |
A INTERIM GROUP MANAGEMENT REPORT B CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) C ADDITIONAL INFORMATION D INFORMATION RESOURCES NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS EQUITY FINANCIAL LIABILITIES
| IN € THOUSANDS | Unrealized actuarial gains and losses |
Unrealized gains / (losses) from foreign currency translation |
Total |
|---|---|---|---|
| Balance as of Sept 30, 2019 | (16,854) | (2,429) | (19,283) |
| Before tax | 1,920 | (34,184) | (32,264) |
| Tax (expense) / benefit | (573) | – | (573) |
| Other comprehensive income / (expense), net of taxes | 1,347 | (34,184) | (32,837) |
| Non-controlling interest | – | – | – |
| Balance as of Sept 30, 2020 | (15,507) | (36,613) | (52,120) |
| Before tax | 1,184 | 11,209 | 12,393 |
| Tax (expense) / benefit | (360) | – | (360) |
| Other comprehensive income / (expense), net of taxes | 824 | 11,209 | 12,033 |
| Non-controlling interest | – | (2,310) | (2,310) |
| Balance as of March 31, 2021 | (14,683) | (27,714) | (42,397) |
The financial liabilities comprise the following items:
| March 31, 2021 | Sept 30, 2020 | |||||
|---|---|---|---|---|---|---|
| IN € THOUSANDS | Current | Non-current | Total | Current | Non-current | Total |
| Senior facilities | – | 239,153 | 239,153 | – | 282,724 | 282,724 |
| Promissory note | – | 95,000 | 95,000 | – | – | – |
| Revolving credit facility | 3,412 | – | 3,412 | 29,894 | – | 29,894 |
| Other facilities | 4,160 | 3,870 | 8,030 | 4,412 | 5,354 | 9,766 |
| Financial liabilities | 7,572 | 338,023 | 345,595 | 34,306 | 288,078 | 322,384 |
Stabilus repaid its senior facility in the amount of €50.0 million on August 31, 2016, €10.0 million on December 31, 2016, €2.5 million on March 31, 2017, €50.0 million on September 30, 2017, €6.4 million on March 28, 2018, €21.1 million on September 27, 2019, €20.0 million on February 27, 2020, and €47.4 million on March 5, 2021, and reduced the outstanding nominal amount to €247.6 million as at March 31, 2021. The carrying value of the Group´s liability under the senior facility agreement (the remaining €239.2 million term-loan) is measured at amortized cost under consideration of transaction costs and the adjustment of the carrying value using the effective interest rate method. The adjustment of the carrying value of the term-loan facility reflects the change in estimated future cash flows discounted with the original effective interest rate due to a decreased margin based on the improved net leverage ratio of the Group.
Stabilus issued a promissory loan note (Schuldscheindarlehen) on March 4, 2021 with a total volume of €95.0 million, via its subsidiary Stabilus GmbH. The tranches of the promissory loan note with maturities of five and seven years bear variable interest rates. The details are described in the following table:
| IN € THOUSANDS | |||
|---|---|---|---|
| Tranche | Volume | Interest rate | Expiry date |
| 5 years variable | 83,000 | 6M-Euribor + 100bps | March 4, 2026 |
| 7 years variable | 12,000 | 6M-Euribor + 125bps | March 4, 2028 |
| Total | 95,000 |
The Group repaid €27.6 million from the revolving credit facility in the first half of fiscal year 2021. As of March 31, 2021, the Group had drawn €3.4 million under the committed €70.0 million revolving credit facility. The Group utilized €1.1 million out of the €70.0 million revolving credit facility to secure existing guarantees. The committed credit line of €50.0 million is undrawn.
| March 31, 2021 | Sept 30, 2020 | |||||
|---|---|---|---|---|---|---|
| IN € THOUSANDS | Current | Non-current | Total | Current | Non-current | Total |
| Liabilities to employees | 7,714 | – | 7,714 | 7,168 | – | 7,168 |
| Social security contribution | 2,234 | – | 2,234 | 2,272 | – | 2,272 |
| Lease liabilities | 6,829 | 30,830 | 37,659 | 6,905 | 33,066 | 39,971 |
| Other financial liabilities | 16,777 | 30,830 | 47,607 | 16,345 | 33,066 | 49,411 |
The decrease is especially due to the payments of lease liabilities amounting to €(4.1) million. The liabilities to employees mainly comprise outstanding salaries and wages.
The future minimum lease payments under non-cancellable leases are expected to amount to €42.2 million within the next years. Thereof €8.0 million lease payments are payable within the next financial year.
The Stabilus Group expects interest expenses on lease liabilities in the amount of €1.2 million in the next financial year.
As of March 31, 2021, the total lease liabilities amounted to €37.7 million. Thereof €6.8 million are due within the next financial year.
| Outflows for lease payments | T_033 | ||||||
|---|---|---|---|---|---|---|---|
| -- | -- | -- | ----------------------------- | -- | ------- | -- | -- |
| IN € THOUSANDS | March 31, 2021 |
|---|---|
| within one year | 8,008 |
| after one year but not more than five years | 23,369 |
| more than five years | 10,865 |
| Total | 42,242 |
| IN € THOUSANDS | March 31, 2021 |
|---|---|
| within one year | 1,179 |
| after one year but not more than five years | 2,761 |
| more than five years | 643 |
| Total | 4,583 |
| Maturity of lease liabilities | T_035 |
|---|---|
| IN € THOUSANDS | March 31, 2021 |
|---|---|
| within one year | 6,829 |
| after one year but not more than five years | 20,608 |
| more than five years | 10,222 |
| Total | 37,659 |
| March 31, 2021 | Sept 30, 2020 | |||||
|---|---|---|---|---|---|---|
| IN € THOUSANDS | Current | Non-current | Total | Current | Non-current | Total |
| Anniversary benefits | 18 | 150 | 168 | 21 | 154 | 175 |
| Early retirement contracts | 1,381 | 1,747 | 3,128 | 1,350 | 2,046 | 3,396 |
| Employee-related costs | 18,845 | – | 18,845 | 12,893 | – | 12,893 |
| Environmental protection | 361 | 1,050 | 1,411 | 460 | 1,051 | 1,511 |
| Other risks | 5,254 | – | 5,254 | 3,719 | – | 3,719 |
| Legal and litigation costs | 59 | – | 59 | 60 | – | 60 |
| Warranties | 19,507 | – | 19,507 | 15,676 | – | 15,676 |
| Other miscellaneous | 5,868 | 392 | 6,260 | 5,989 | 448 | 6,437 |
| Provisions | 51,293 | 3,339 | 54,632 | 40,168 | 3,699 | 43,867 |
The provision for environmental protection, in particular long-term bioremediation of the former Colmar US site, decreased in the first six months of fiscal year 2021 from €1,511 thousand to €1,411 thousand. This provision is to cover the contractor expense to finish the bioremediation program in the next years. Further information regarding this matter can be found in the Annual Report 2020.
The provision for warranties increased from €15,676 thousand as of September 30, 2020, to €19,507 thousand as of March 31, 2021 and is especially due to the increased sales volume and to cover general risks for warranty cases. The provision for employee-related costs comprises employee bonuses and termination benefits and increased from €12,893 thousand as of September 30, 2020, to €18,845 thousand as of March 31, 2021.
The Group's liability for pension plans and similar obligations decreased from €57,029 thousand as of September 30, 2020, by €1,635 thousand to €55,394 thousand as of March 31, 2021. The discount rate was 1.30% on March 31, 2021, versus 1.14% on September 30, 2020.
The following table sets out the breakdown of the Group's other current and non-current liabilities:
| March 31, 2021 | Sept 30, 2020 | ||||||
|---|---|---|---|---|---|---|---|
| IN € THOUSANDS | Current | Non-current | Total | Current | Non-current | Total | |
| Advanced payments received | 3,530 | – | 3,530 | 2,553 | – | 2,553 | |
| Vacation expenses | 5,451 | – | 5,451 | 3,717 | – | 3,717 | |
| Other personnel-related expenses |
5,698 | – | 5,698 | 6,545 | – | 6,545 | |
| Outstanding costs | 4,864 | – | 4,864 | 3,869 | – | 3,869 | |
| Miscellaneous | 425 | – | 425 | 204 | – | 204 | |
| Other liabilities | 19,968 | – | 19,968 | 16,888 | – | 16,888 |
Contingent liabilities are possible obligations from past events whose existence has yet to be confirmed by the occurrence or non-occurrence of uncertain future events that are not wholly within the control of the entity. If the future outflow of resources for the settlement of a possible obligation is considered more likely than not, a provision is recognized on the face of the financial statements. Besides the possible obligations for which a provision has been recognized on the balance sheet no contingent liabilities could be identified as of the reporting date that were considered to be material in nature.
| IN € THOUSANDS | March 31, 2021 | Sept 30, 2020 |
|---|---|---|
| Capital commitments for fixed assets | 3,378 | 1,983 |
| Capital commitments for other intangible assets | 1,101 | 1,459 |
| Total | 4,479 | 3,442 |
The capital commitments for fixed and other intangible assets increased from €3,442 thousand as of September 30, 2020, to €4,479 thousand as of March 31, 2021.
A detailed description of the guarantees the Group issued can be found in the Annual Report 2020.
A INTERIM GROUP MANAGEMENT REPORT B CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) C ADDITIONAL INFORMATION D INFORMATION RESOURCES NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL INSTRUMENTS
The following table shows the carrying amounts and fair values of the Group's financial instruments within the meaning of IFRS 7 as well as by the measurement category. The fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
| March 31, 2021 | Sept 30, 2020 | ||||
|---|---|---|---|---|---|
| IN € THOUSANDS | Measurement category acc. to IFRS 9 |
Carrying amount |
Fair value1) | Carrying amount |
Fair value1) |
| Trade accounts receivables | AC | 129,440 | – | 117,071 | – |
| Cash | AC | 215,180 | – | 162,431 | – |
| Other financial assets | AC | 2,613 | – | 2,736 | – |
| Contingent Consideration | FVtPL | 4,538 | 4,538 | 4,538 | 4,538 |
| Total financial assets | 351,771 | 4,538 | 286,776 | 4,538 | |
| Financial liabilities | FLAC | 345,595 | 352,228 | 322,384 | 330,216 |
| Trade accounts payable | FLAC | 82,847 | – | 71,080 | – |
| Lease liabilities | n/a | 37,659 | – | 39,971 | – |
| Total financial liabilities | 466,101 | 352,228 | 433,435 | 330,216 | |
| Aggregated according to category: | |||||
| Financial assets measured at amortized cost (AC) | 347,233 | – | 282,238 | – | |
| Financial assets measured at fair value through profit or loss (FVtPL) |
4,538 | 4,538 | 4,538 | 4,538 | |
| Financial liabilities measured at amortized cost (FLAC) | 428,442 | 352,228 | 393,464 | 330,216 |
1) The simplification provision under IFRS 7.29a has been applied with respect to fair value disclosures. This does not apply to the contingent consideration.
Financial liabilities
Contingent
A INTERIM GROUP MANAGEMENT REPORT B CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) C ADDITIONAL INFORMATION D INFORMATION RESOURCES NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL INSTRUMENTS NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS SEGMENT REPORTING
IN € THOUSANDS Total Level 11) Level 22) Level 33) Total Level 11) Level 22) Level 33)
Senior facilities 245,632 – 245,632 – 290,300 – 290,300 –
Consideration 4,538 – 4,538 – 4,538 – 4,538 –
Other facilities 106,595 – 106,595 – 39,916 – 39,916
March 31, 2020 Sept 30, 2020
The following table provides an overview of the classification of financial instruments presented above in the fair value hierarchy, except for financial instruments with fair values corresponding to the carrying amounts (i.e. trade accounts receivable and payable, cash and other financial liabilities). It is the Group's policy to recognize transfers into and out of a level of the fair value hierarchy at the date of the event or change in circumstances that caused the transfer. There were no transfers between Level 2 and Level 3 of the fair value hierarchy in the current and the previous reporting period.
The Stabilus Group is organized and managed primarily on a regional level. The three reportable operating segments of the Group are EMEA, Americas and APAC. The product portfolio is largely similar in these three segments.
The Group measures the performance of its operating segments through a measure of segment profit or loss (key performance indicator) which is referred to as "adjusted EBIT". Adjusted EBIT represents EBIT, adjusted for exceptional non-recurring items (e.g. restructuring or one-time advisory costs) and depreciation / amortization of fair value adjustments resulting from purchase price allocations (PPAs).
1) Fair value measurement based on quoted prices (unadjusted) in active markets for these or identical instruments.
2) Fair value measurement based on inputs that are observable on active markets either directly (i.e. as prices) or indirectly (i.e. derived from prices).
3) Fair value measurement based on inputs that are not observable market data.
The fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following method and assumptions were used to estimate the fair values in the previous fiscal year:
– The senior secured notes are categorized within Level 2 of the fair value hierarchy as the instruments themselves are not traded in an active market, but as all significant inputs required for their fair value measurement are observable in active markets. Their fair value is estimated using a present value technique, by discounting the contractual cash flows using the implied yields for similar instruments of entities with a similar standing and marketability. The most significant input is the discount rate that reflects the credit risk of the issuer. The Group obtains the valuation for its senior secured notes from an independent service provider on a quarterly basis. The fair value of the contingent consideration does not underlie any variation, the recognized amount is fixed.
The carrying amounts of trade accounts receivables, cash, other financial assets and trade accounts payable closely approximate their fair value due to their predominantly short-term nature.
The statement of cash flows is prepared in compliance with IAS 7. The statement of cash flows of the Stabilus Group shows the development of the cash flows from operating, investing and financing activities. Inflows and outflows from operating activities are presented in accordance with the indirect method and those from investing and financing activities by the direct method. The cash funds reported in the statement of cash flows comprise all liquid funds, cash balances and cash at banks reported in the statement of financial position. Interest payments in the first half of fiscal year 2021 amounting to €(2,377) thousand (H1 FY2020: €(2,487) thousand) are reflected in cash outflows from financing activities. Income tax payments in the same period amounting to €(13,109) thousand (H1 FY2020: €(26,526) thousand) are recognized in cash flows from operating activities.
A INTERIM GROUP MANAGEMENT REPORT B CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) C ADDITIONAL INFORMATION D INFORMATION RESOURCES NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS SEGMENT REPORTING
Segment information for the six months ended March 31, 2021 and 2020 is as follows:
| Segment reporting | T _ 041 |
|---|---|
| ------------------- | --------- |
| EMEA | Americas | APAC | ||||
|---|---|---|---|---|---|---|
| Six months ended March 31, | Six months ended March 31, | Six months ended March 31, | ||||
| IN € THOUSANDS | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 |
| External revenue1) | 240,924 | 228,581 | 168,761 | 173,029 | 69,722 | 50,732 |
| Intersegment revenue1) | 16,158 | 14,092 | 12,083 | 11,526 | 91 | 78 |
| Total revenue1) | 257,082 | 242,673 | 180,844 | 184,555 | 69,813 | 50,810 |
| Depreciation and amortization (incl. impairment losses) |
(17,088) | (18,866) | (7,711) | (8,432) | (4,266) | (4,077) |
| EBIT | 31,343 | 25,022 | 23,067 | 26,550 | 11,247 | 3,787 |
| Adjusted EBIT | 34,295 | 28,954 | 24,640 | 28,273 | 11,323 | 3,865 |
| Total segments | Other / Consolidation | Stabilus Group | ||||
| Six months ended March 31, | Six months ended March 31, | Six months ended March 31, | ||||
|---|---|---|---|---|---|---|
| IN € THOUSANDS | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 |
| External revenue1) | 479,407 | 452,342 | – | – | 479,407 | 452,342 |
| Intersegment revenue1) | 28,332 | 25,696 | (28,332) | (25,696) | – | – |
| Total revenue1) | 507,739 | 478,038 | (28,332) | (25,696) | 479,407 | 452,342 |
| Depreciation and amortization (incl. impairment losses) |
(29,065) | (31,375) | (2,329) | (3,485) | (31,394) | (34,860) |
| EBIT | 65,657 | 55,359 | (2,329) | (3,485) | 63,328 | 51,874 |
| Adjusted EBIT | 70,258 | 61,092 | – | – | 70,258 | 61,092 |
1) Revenue breakdown by location of Stabilus company (i.e. "billed-from view").
The column "Other / Consolidation" includes among others the effects from the purchase price allocation for the April 2010 business combination. The effects from the purchase price allocation for the June 2016 and April 2019 business combination are included in the regions.
A INTERIM GROUP MANAGEMENT REPORT B CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) C ADDITIONAL INFORMATION D INFORMATION RESOURCES NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
SEGMENT REPORTING
RELATED PARTY RELATIONSHIPS SUBSEQUENT EVENTS
The following table sets out the reconciliation of the total segments' profit (adjusted EBIT) to profit before income tax.
| Six months ended March 31, | ||||
|---|---|---|---|---|
| IN € THOUSANDS | 2021 | 2020 | ||
| Total segments' profit (adjusted EBIT) |
70,258 | 61,092 | ||
| Other / consolidation | – | – | ||
| Group adjusted EBIT | 70,258 | 61,092 | ||
| Adjustments to EBIT | (6,930) | (9,218) | ||
| Profit from operating activities (EBIT) |
63,328 | 51,874 | ||
| Finance income | 407 | 5,331 | ||
| Finance costs | (7,531) | (6,122) | ||
| Profit / (loss) before income tax | 56,204 | 51,083 |
According to IAS 24, the reporting entity has to disclose specific information of transactions between the Group and other related parties. Balances and transactions between the Company and its fully consolidated subsidiaries, which constitute related parties within the meaning of IAS 24, have been eliminated in the course of consolidation and are therefore not commented on in this note. As to our knowledge no individual shareholder of Stabilus S. A. can exercise significant influence over the Company or the Group. The consolidated financial statements do not include any associated companies that are accounted for using the equity method and none of the Group entities can exercise significant influence over entities that are not included in the scope of consolidation.
Related parties of the Stabilus Group primarily comprise the Stabilus Group's management which also holds an investment in the Company. The remuneration of and other transactions with key managers of the Company constitute related party transactions pursuant to IAS 24.
As of April 30, 2021, there were no further events or developments that could have materially affected the measurement and presentation of Group's assets and liabilities as of March 31, 2021.
A INTERIM GROUP MANAGEMENT REPORT B CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) C ADDITIONAL INFORMATION D INFORMATION RESOURCES RESPONSIBILITY STATEMENT
To the best of our knowledge, and in accordance with the applicable accounting principles for interim financial reporting, the interim consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the corporation, and the interim management report of the corporation includes a fair review of the development and performance of the business and the position of the corporation, together with a description of the principal opportunities and risks associated with the expected development of the corporation for the remaining months of the fiscal year.
Luxembourg, April 30, 2021
Dr. Michael Büchsner Mark Wilhelms Andreas Schröder Andreas Sievers
Management Board
Financial calendar T _ 043
| DATE 1) 2) | PUBLICATION / EVENT |
|---|---|
| May 3, 2021 | Publication of the second-quarter results for fiscal year 2021 (Interim Report Q2 FY2021) |
| August 2, 2021 | Publication of the third-quarter results for fiscal year 2021 (Quarterly Statement Q3 FY2021) |
| November 12, 2021 | Publication of preliminary financial results for fiscal year 2021 |
| December 10, 2021 | Publication of full year results for fiscal year 2021 (Annual Report 2021) |
1) We cannot rule out changes of dates. We recommend checking them on our website in the Investors / Financial Calendar section (www.stabilus.com/investors).
2) Please note that our fiscal year (FY) comprises a twelve-month period from October 1 until September 30 of the following calendar year. E.g. the fiscal year 2021 comprises a year ending September 30, 2021.
This interim report contains forward-looking statements that relate to the current plans, objectives, forecasts and estimates of the management of Stabilus S. A. These statements take into account only information that was available up to and including the date that this interim report was prepared. The management of Stabilus S. A. makes no guarantee that these forward-looking statements will prove to be right. The future development of Stabilus S. A. and its subsidiaries and the results that are actually achieved are subject to a variety of risks and uncertainties which could cause actual events or results to differ significantly from those reflected in the forward-looking statements. Many of these factors are beyond the control of Stabilus S. A. and its subsidiaries and therefore cannot be precisely predicted. Such factors include, but are not limited to, changes in economic conditions and the competitive situation, changes in the law, interest rate or exchange rate fluctuations, legal disputes and investigations, and the availability of funds. These and other risks and uncertainties are set forth in the Group Management Report. However, other factors could also have an adverse effect on our business performance and results. Stabilus S. A. neither intends nor assumes any separate obligation to update forward-looking statements or to change these to reflect events or developments that occur after the publication of this interim report.
Certain numbers in this interim report have been rounded up or down. There may therefore be discrepancies between the actual totals of the individual amounts in the tables and the totals shown as well as between the numbers in the tables and the numbers given in the corresponding analyses in the text of the interim report. All percentage changes and key figures in the Group Management Report were calculated using the underlying data in millions of euros rounded to one decimal place (€ millions).
Further information including news, reports and publications can be found in the investors section of our website at www.stabilus.com/investors.
Phone: +352 286 770 21 Fax: +352 286 770 99 Email: [email protected]
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