FINANCIAL REPORT H1 2016

Transcription

1 FINANCIAL REPORT H _Key Figures 03_Group Status Report 05_Consolidated Financial Statements 10_Notes 11_Declaration of Legal Representatives

2 02 PANKL KEY FIGURES PROFITABILITY RATIOS H H Change Revenues in k 127, , ,027 88, ,638 95,385 8% EBITDA in k 19,980 17,473 24,316 13,334 23,641 14,543 9% EBIT in k 10,382 6,150 11,893 6,653 10,204 8,002 20% Earnings before taxes (EBT) in k 8,118 2,850 8,749 5,780 8,431 6,380 10% Earnings after taxes in k 5,942 2,493 6,861 4,533 7,931 5,489 21% EBITDA margin 16% 12% 15% 15% 14% 15% EBIT margin 8% 4% 7% 8% 6% 8% BALANCE SHEET RATIOS H H Change Total assets in k 149, , , , , ,476 0% Net working capital in k 40,437 53,018 60,247 65,351 65,123 60,110 (8%) Capital employed in k 116, , , , , ,197 (7%) Shareholders equity in k 69,611 68,336 76,780 81,256 82,853 75,322 (7%) Equity in % of total assets 46% 40% 42% 43% 45% 40% Net debt in k 46,819 68,231 70,915 71,965 69,126 66,875 (7%) Gearing 67% 100% 92% 89% 83% 89% CASH FLOW AND CAPEX H H Change Cash flow from operating activities in k 13,627 (403) 14,662 7,578 16,541 14,273 88% Free cash flow in k (12,165) (17,913) (1,267) 1,301 5,208 6,829 > 100% Capital expenditure in k 25,467 18,394 17,008 6,815 11,381 9,107 34% EMPLOYEES H H Change Employees per due date 1,142 1,230 1,287 1,294 1,319 1,443 12% STOCK EXCHANGE RATIOS H H Change Share price per due date (XETRA) in % Number of shares issued m share % Market capitalisation in m % Earnings per share in % Book value per share in (7%)

3 INTERIM GROUP STATUS REPORT 03 n H1 revenues increased by 8% to 95.4m n EBIT increased by 20% to 8.0m n Significant improvements in revenues and earnings in the racing business n Ongoing adverse market environment for civil helicopters REVENUES AND EARNINGS In the first half of the fiscal year 2016, Pankl Group achieved an 8.0% growth in revenues from 88.3m to a record 95.4m. In particular in Q2 the group achieved very satisfactory improvements in revenues and earnings compared to the same period last year. The racing business of the Racing/High Performance segment grew strongly and also the high performance business continued to grow. The market environment in the Aerospace segment continued to be very difficult. The group achieved a significant improvement in operating earnings (EBIT). In the first half of the fiscal year 2016, EBIT increased by 20.3% to 8.0m or 8.4% of revenues (H1 2015: 6.7m or 7.5% of revenues). The net financial results amounted to 1.6m versus 0.9m in the same period last year. This deterioration was due to the fact that the foreign exchange rate development primarily of the US dollar versus the euro was favourable in H but caused losses in H In H1 2016, income taxes were lower than in the same period last year, so that earnings after tax amounted to 5.5m (H1 2015: 4.5m). Net earnings attributable to Pankl shareholders amounted to 5.6m or 1.77 per share versus 4.3m or 1.36 per share in the same period last year. RACING/HIGH PERFORMANCE SEGMENT In H1 2016, revenues increased by 10.1% to 83.9m (H1 2015: 76.2m). We experienced a very favourable development in the motor racing business served by our Austrian and UK manufacturing facilities, which feature good margins. Also the high performance business, which is particularly served by our Slovak production facility, continued to grow, albeit at a lower rate than at the beginning of the year. In H1 2016, operating earnings (EBIT) increased by 2.2m from 5.2m or 6.8% of revenues to 7.4m or 8.8% of revenues. AEROSPACE SEGMENT Demand for civil helicopters continues to be very weak. As a result our revenues in H declined by 3.0% to 11.8m (H1 2015: 12.1m). Operating earnings amounted to 0.4m or 3.1% of revenues versus 0.5m or 3.9% of revenues in the same period last year. REVENUES BY REGION 2016 VERSUS % Others 7% Others 5% Asia 24% USA 6% France 3% Asia 6% France 9% UK 32% USA 9% UK H % Italy H % Italy 24% Germany 10% Austria 23% Germany 11% Austria

4 04 Interim Group Status Report for the First Half of 2016 BALANCE SHEET AND FINANCIAL POSITION As of 30 June 2016, total assets increased to 188.5m versus 182.3m as of 31 December As of 30 June 2016, shareholders equity declined by 7.5m to 75.3m or 40.0% of total assets (31 December 2015: 82.9m or 45.4% of total assets). This decline was due to the acquisition of the remaining 30% of CP-CARILLO, LLC and Performance Equipment Company, LLC which Pankl did not already own and the payment of the 1.9m dividend for the fiscal year 2015 in Q Net debt declined from 69.1m as of 31 December 2015 by 2.2m to 66.9m as of 30 June Due to the decline in shareholders equity gearing increased to 89% (31 December 2015: 83%). CASH FLOW In H1 2016, cash flow from results amounted to 12.0m versus 11.2m in the same period last year. In H1 2015, we experienced an increase in working capital, in H we were able to implement appropriate measures to reduce working capital to 60.1m (31 December 2015: 65.1m). Taking into account other assets and liabilities, cash flow from operating activities amounted to 14.3m versus 8.2m in H The major capital expenditure payments for the new Kapfenberg drivetrain production facility will happen in H and In H1 2016, capital expenditure hence increased only to 7.4m (H1 2015: 6.9m). Cash flow from financing activities amounted to 0.1m (H1 2015: 0.1m). As of 30 June 2016, cash and cash equivalents amounted to 14.1m, which was by 6.7m higher that as of 31 December RISK REPORT The motor racing business is exposed to a high level of volatility also during the fiscal year. In the aerospace business more longer term planning is possible. We refer to pages 43 and following of the Annual Report for the fiscal year 2015 for a more detailed description of the business risks of our group. OUTLOOK CEO Wolfgang Plasser: We are satisfied with our revenues and earnings in H By and large, our business developed as we expected. In the coming months we anticipate increasing volatility in the high performance business and an ongoing adverse market environment in the civil helicopter business. Nevertheless, financial results should continue to remain solid. In H2 2016, there will be intense preparation measures for two events which will be of major importance for the Pankl Group in the coming years. The first will be the start of production of our new Kapfenberg high performance drivetrain production facility and the second will be the new 2017 Formula 1 rules. SHARE PRICE DEVELOPMENT OF PANKL SHARE 1 JULY JUNE J A S O N D J F M A M J Pankl Racing Systems AG (Vienna) ATX Prime Index, indexed Prime Automobile (XETRA) Price Index, indexed

5 INTERIM CONSOLIDATED FINANCIAL STATEMENTS (ACC. TO IFRS) 05 CONSOLIDATED PROFIT AND LOSS ACCOUNT Q H Q H in k in % in k in % in k in % in k in % Revenues 46, , , , Cost of goods sold (35,028) (75.2) (70,092) (73.5) (31,834) (76.6) (65,459) (74.1) Gross profit 11, , , , Distribution expenses (2,870) (6.2) (5,662) (5.9) (2,728) (6.5) (5,406) (6.1) Administrative expenses (6,345) (13.6) (12,763) (13.4) (5,663) (13.6) (11,716) (13.3) Other operating income , , Other operating expenses (24) (0.1) (76) (0.1) (100) (0.2) (149) (0.2) Earnings before interest and taxes (EBIT) 3, , , , Financial income (475) (1.1) Financial expenses (751) (1.6) (1,818) (1.9) (688) (1.7) (1,456) (1.6) Financial result (645) (1.4) (1,622) (1.7) (1,163) (2.8) (873) (1.0) Earnings before taxes (EBT) 2, , , Income taxes (547) (1.2) (891) (0.9) (95) (0.2) (1,247) (1.4) EARNINGS AFTER TAXES 1, , , Attributable to shareholders of parent companys 1, , , minorities (74) (0.1) EARNINGS PER SHARE Undiluted = fully diluted earnings per share

6 06 Interim Consolidated Financial Statements for the First Half of 2016 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Shareholders of parent company Minorities Total in k in k in k H Earnings after taxes 5,563 (74) 5,489 Items which are never shown in the profit and loss account: Actuarial profits/losses from pension plans and similar schemes (120) 0 (120) Deferred taxes on actuarial profits/losses from pension plans and similar schemes Items which are or can be shown in the profit and loss account: Foreign exchange differences (1,052) 0 (1,052) Other results of the period (1,142) 0 (1,142) TOTAL COMPREHENSIVE INCOME 4,421 (74) 4,347 H Earnings after taxes 4, ,533 Items which are never shown in the profit and loss account: Actuarial profits/losses from pension plans and similar schemes (14) 0 (14) Deferred taxes on actuarial profits/losses from pension plans and similar schemes Items which are or can be shown in the profit and loss account: Foreign exchange differences 1, ,952 Other results of the period 1, ,941 TOTAL COMPREHENSIVE INCOME 5, ,474

7 07 CONSOLIDATED BALANCE SHEET ASSETS 30 Jun Jun Dec 2015 in k in % in k in % in k in % NON-CURRENT ASSETS Goodwill 12, , , Other intangible fixed assets 1, , , Tangible fixed assets 73, , , Other financial assets 1, , , Deferred tax assets 3, , , Total non-current assets 92, , , CURRENT ASSETS Inventories 52, , , Trade accounts receivables 25, , , Other current receivables and assets 3, , , Cash and cash equivalents 14, , , Total current assets 95, , , TOTAL ASSETS 188, , , LIABILITIES 30 Jun Jun Dec 2015 in k in % in k in % in k in % SHAREHOLDERS EQUITY Share capital 3, , , Capital reserves 37, , , Reserves from retained earnings 33, , , Share of minorities 1, , , Total shareholders equity 75, , , NON-CURRENT LIABILITIES Bond 9, , , Non-current loans 61, , , Non-current finance lease liabilities Personnel related provisions 1, , , Non-current provisions Other non-current liabilities 6, Investment grants 1, , , Deferred tax liabilities Total non-current liabilities 82, , , CURRENT LIABILITIES Current loans and short-term portion of non-current loans 9, , , Current finance lease liabilities Other current liabilities 11, , , Trade accounts payable 9, , , Current provisions Total current liabilities 30, , , Total liabilities 113, , , TOTAL EQUITY AND LIABILITIES 188, , ,

8 08 Interim Consolidated Financial Statements for the First Half of 2016 CONSOLIDATED CASH FLOW STATEMENT Q H Q H in k in k in k in k Earnings after taxes 1,870 5, ,533 Depreciation and amortisation, change in non-current provisions, profit/loss from sale of fixed assets 3,313 6,511 3,267 6,645 Cash flow from earnings 5,183 12,000 3,823 11,178 Change in other assets and receivables (842) 2,273 2,016 (3,020) Cash flow from operating activities 4,341 14,273 5,839 8,158 Cash flow from investing activities (5,568) (7,444) (3,481) (6,857) Operating free cash flow (1,227) 6,829 2,358 1,301 Cash flow from financing activities (755) (133) (3,045) (91) CHANGE OF CASH AND CASH EQUIVALENTS (1,982) 6,696 (687) 1,210 Cash and cash equivalents at the beginning of the period 16,160 7,310 13,294 12,077 Effect of exchange rate changes on cash and cash equivalents (70) (580) Change of cash and cash equivalents (1,982) 6,696 (687) 1,210 Cash and cash equivalents at the end of the period 14,108 14,108 12,707 12,707 SCHEDULE OF CONSOLIDATED SHAREHOLDERS EQUITY Reserves from Shareholders retained earnings equity Reserve attributable to Shareholders for foreign Other shareholders equity Share Capital exchange retained of parent attributable to capital reserves differences earnings company minorities Total in k in k in k in k in k in k in k H As at 31 Dec 2015 (= 1 Jan 2016) 3,150 37,784 (2,519) 39,709 78,124 4,729 82,853 Earnings after taxes ,563 5,563 (74) 5,489 Results directly accounted for in equity 0 0 (1,052) (90) (1,142) 0 (1,142) Acquisition of shares (6,412) (6,412) (3,576) (9,988) Dividend payment (1,890) (1,890) 0 (1,890) AS AT 30 JUN ,150 37,784 (3,571) 36,880 74,243 1,079 75,322 H As at 31 Dec 2014 (= 1 Jan 2015) 3,150 37,784 (4,165) 34,832 71,601 5,179 76,780 Earnings after taxes ,269 4, ,533 Results directly accounted for in equity 0 0 1,618 (11) 1, ,941 Dividend payment (1,890) (1,890) (108) (1,998) AS AT 30 JUN ,150 37,784 (2,547) 37,200 75,587 5,669 81,256

9 09 SEGMENT REPORTING Racing/ Recon- High Performance Aerospace Others Total ciliation Group in k in k in k in k in k in k H Segment revenues 83,936 11,757 3,800 99,493 (4,108) 95,385 thereof intra-group sales ,796 thereof external revenues 83,822 11,559 4 Operating earnings (EBIT) 7, , ,002 EBIT in % of segment revenues 8.8% 3.1% 6.0% 8.0% 8.4% Interest expenses (614) (162) (1,100) (1,876) 824 (1,052) Interest income (824) 37 Segment assets 132,583 26,833 9, ,244 19, ,476 Segment liabilities 19,702 3,526 9,260 32,488 80, ,154 Segment capital expenditure 6,873 2, , ,416 Segment depreciation (5,320) (811) (410) (6,541) 0 (6,541) thereof impairments H Segment revenues 76,245 12,124 3,376 91,745 (3,446) 88,299 thereof intra-group sales ,373 thereof external revenues 76,186 12,110 3 Operating earnings (EBIT) 5, , ,653 EBIT in % of segment revenues 6.8% 3.9% 28.8% 7.3% 7.5% Interest expenses (663) (185) (1,083) (1,931) 842 (1,089) Interest income (842) 40 Segment assets 133,409 27,283 10, ,759 17, ,923 Segment liabilities 17,800 2,809 2,127 22,736 83, ,667 Segment capital expenditure 4,833 1, , ,994 Segment depreciation (5,487) (809) (385) (6,681) 0 (6,681) thereof impairments

10 10 NOTES TO THE CONSOLIDATED INTERIM REPORT REPORTING RULES, ACCOUNTING AND VALUATION METHODS The interim accounts as at 30 June 2016 were prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and in accordance with interpre tations of the International Reporting Interpretations Committee (IFRIC) to the extent used in the EU and in accordance with the rules for interim reports in IAS 34. The same reporting rules and accounting and valuation methods were used as at 31 December For further information please refer to our Annual Report per 31 December 2015, which served as the basis for these interim accounts. The business of the company is divided into the Racing/ High Performance segment (engine and drivetrain systems for motor racing and high performance vehicles), the Aerospace segment (drivetrain systems for the helicopter market) and the Others segment (holding and financing companies). This segmentation is consistent with the company s management information systems. SCOPE OF CONSOLIDATION As at 4 January 2016, Pankl Holdings, Inc. increased its stakes in CP-CARRILLO, LLC and Performance Equipment Company, LLC from 70% to 100% each. Thereafter all assets and liabilities of Performance Equipment Company, LLC were acquired by CP-CARRILLO, LLC and Performance Equipment Company, LLC was liquidated. On 2 May 2016, Pankl Aerospace Systems Europe GmbH acquired 100% of S-Beschichtungstechnik GmbH. Otherwise the scope of consolidation remained unchanged versus 31 December ESTIMATES For the preparation of the interim consolidated accounts, estimates and assumptions had to be used to a certain extent. This influences the balance sheet values of assets and liabilities, the stated values of contingent liabilities on the balance sheet date and expenses and income in the whole fiscal year. The eventual actual amounts may deviate from the estimates. SEASONALITY OF THE BUSINESS In the Racing/High Performance segment, seasonal fluctuations result from the fact that the most important racing series start their racing season in spring and end it in autumn. As a result, the first quarter of our fiscal year tends to be the strongest one. The Aerospace and the Others segments are less affected by seasonal fluctuations. NOTES TO THE CONSOLIDATED PROFIT AND LOSS ACCOUNT In the first half of the fiscal year 2016, group revenues amounted to 95,385k (H1 2015: 88,299k), net profit after tax was 5,489k (H1 2015: 4,533k). On 30 June 2016 and on 30 June 2015, Pankl Racing Systems AG held no treasury shares. The average number of shares in issue amounted to 3,150,000. The net profit attributable to shareholders amounted to 5,563k (H1 2015: 4,269k). Earnings per share amounted to 1.77 (H1 2015: 1.36). NOTES TO THE CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME In the reporting period, foreign exchange differences, which were not booked through the profit and loss account, amounted to 1,052k (H1 2015: 1,952k including the portion of minority shareholders) and resulted from the US dollar and the British pound. NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT In the first half of the fiscal year, cash and cash equivalents increased by 6,696k (H1 2015: 1,210k). Cash flow from results amounted to 12,000k (H1 2015: 11,178k). Taking into account the movement of other assets and liabilities (cash inflow of 2,273k) and the cash flow from investing activities ( 7,444k), gives an operating free cash flow of 6,829k (H1 2015: 1,301k). NOTES TO THE CONSOLIDATED BALANCE SHEET As at 30 June 2016, the balance sheet total increased by 6,176k and amounted to 188,476k (31 December 2015: 182,300k). On 29 April 2016, a dividend of 1,890k was paid to the shareholders. As at 30 June 2016, shareholders equity decreased to 40.0% of total assets (31 December 2015: 45.4%). The main reasons for this decline were the payment of the dividend and the complete takeover of CP-CARRILLO, LLC and Performance Equipment Company, LLC.

11 11 NOTES TO FINANCIAL INSTRUMENTS Book values of financial instruments correspond with fair values except for the following: Time values are calculated based on recurring valuations. In the first half of 2016 and in the fiscal year 2015, there were no reclassifications within the level hierarchy. in k Book value Fair value Loans and bonds 30 June ,432 83, December ,702 77,829 The time value (fair value) of a financial instrument is based on quoted market prices for an identical financial instrument in an active market (step 1). If there are no quoted market prices available on active markets for the financial instrument, then the time value shall be based on valuation methods with the major parameters being derived from observed market data only (step 2). In any other event, the time value shall be derived from valuation methods with at least one parameter not being based on observed market data (step 3): in k Step 1 Step 2 Step 3 Total Derivatives with negative market value 30 June December IMPORTANT EVENTS AFTER THE INTERIM BALANCE SHEET DATE On 22 July 2016, Pankl Racing Systems AG announced that the Supervisory Board prematurely extended the contract with the CEO Wolfgang Plasser until May RELATED PARTY TRANSACTIONS Due to business relationships of Pankl Group with CROSS Industries AG and its subsidiaries, revenues were generated in the amount of 5,020k (H1 2015: 3,471k) during the reporting period. CROSS Industries AG provided services to Pankl Group in the amount of 1,208k (H1 2015: 225k) and Pierer Konzerngesellschaft mbh provided services in the amount of 164k (H1 2015: 164k). DECLARATION OF LEGAL REPRESENTATIVES We confirm to our best knowledge that the group interim report, which was drawn up in accordance with the appropriate accounting rules, represents a true and fair view of the assets, the financial position and the profitability of the group. The interim group status report provides a true and fair view of the assets, the financial position and the profitability of the group with regards to the events that happened during the first half of the fiscal year, their impact on the interim consolidated financial statements and the risks and uncertainties for the remaining six months of the fiscal year. The presented interim financial report was neither subject of a full audit nor of a limited audit review by the auditor. Kapfenberg, on 5 August 2016 The Management Board of Pankl Racing Systems AG Wolfgang Plasser Christoph Prattes Stefan Seidel CEO COO CTO

12 FOR FURTHER INFORMATION Pankl Racing Systems AG Industriestrasse West Kapfenberg, Austria INVESTOR RELATIONS Silke Pichler phone: fax: ir@pankl.com, FINANCIAL CALENDAR NOVEMBER 2016 Publication first three quarters results 2016 FEBRUARY 2017 Publication year-end results for 2016 For further information on roadshow dates or investor conferences please visit our homepage FURTHER INFORMATION ON PANKL SHARE Securities code (NM): ISIN code: AT Bloomberg symbol: PARS AV Reuters symbol: PARS.VI