Financial Report. Table of Contents

Transcription

1 Table of Contents Key Figures 02 Interim Group Status Report 03 Interim Consolidated Financial Statements 06 Notes to the Interim Report 10 Declaration of the Legal Representatives 11 Financial Report for the first Half of 2013

2 Key Figures EARNING RATIONS 2009/2010¹ H H Change Revenues in k 87,553 89, ,396 68, ,685 70,916 3% EBITDA in k 12,010 12,066 15,226 11,626 19,980 9,317 (20%) EBIT in k 3,701 3,798 7,023 7,022 10,382 3,951 (44%) Earnings before taxes (EBT) in k 2,577 2,598 5,587 6,083 8,118 2,596 (57%) Earnings after taxes in k 3,313 2,943 4,460 4,433 5,942 2,272 (49%) EBITDA margin 14% 13% 14% 17% 16% 13% EBIT margin 4% 4% 7% 10% 8% 6% BALANCE SHEET RATIOS 2009/2010¹ H H Change Total assets in k 120, , , , , ,057 19% Net working capital in k 32,545 33,434 38,415 38,666 40,437 47,191 22% Capital employed in k 90,756 92,201 96, , , ,588 26% Shareholders equity in k 65,338 64,421 64,381 67,716 69,611 68,847 2% Equity in % of total assets 54% 55% 54% 51% 46% 43% Net debt in k 26,104 28,507 32,037 33,889 46,819 58,741 73% Gearing 40% 44% 50% 50% 67% 85% CASH FLOW AND CAPEX 2009/2010¹ H H Change Cash flow from operating activities in k 14,088 13,031 10,041 9,697 13,627 1,189 (88%) Free cash flow in k 10,194 8,063 3,806 (510) (12,165) (8,610) neg. Tangible fixed assets in k 4,358 5,646 7,425 10,414 25,467 9,883 (5%) EMPLOYEES 2009/2010¹ H H Change Employees per due date ,026 1,142 1,177 15% STOCK EXCHANGE RATIOS 2009/2010¹ H H Change Share price per due date (XETRA) in % Number of shares issued m share % Number of treasury shares share 56,973 73, , % Market capitalisation in m % Earnings per share in (49%) Book value per share in % 1 In the fiscal yer 2009/2010, the resolution was passed to change the balance sheet date from 30 September to 31 December.

3 Interim Group Status Report for the First Half of n Revenues increase by 5% in Q2 n Half-year revenues increase by 3% to 70.9m n Half-year EBIT decreases by 44% to 4.0m n Q2 is burdened by weak F1 business due to imminent rule change n High start-up expenses for serial production projects continue to burden profitability in Q2 n Major improvement in US aerospace business n EBITDA amounts to 9.3m (H1 2012: 11.6m) REVENUES AND EARNINGS In the first half of the fiscal year 2013, Pankl Group was confronted with a difficult economic environment primarily in the motor racing business. In Formula 1, which continues to be the most important single market for Pankl Group, demand decreased significantly already in the second quarter, hence three months earlier than in normal years. This was due to the imminent rule change which causes all teams to focus on the 2014 racing season from early on. Other racing series suffered from reductions in racing budgets due to the uncertain overall economic environment. In the High Performance segment a number of long-term projects were still only in the start-up phase. The Aerospace segment developed very favourably. The US aerospace business stabilised from April, so that the Aerospace segment recorded very good results in the second quarter. First half revenues of the Pankl Group increased by 3% to 70.9m. The unusually short racing season, start-up expenses for serial production projects and the weak Q1 results of the US aerospace subsidiary burdened profits of Pankl Group. EBIT amounted to 4.0m or 5.6% of revenues after 7.0m or 10.2% of revenues in the same period last year. In the second quarter EBIT amounted to 0.9m or 2.6% of revenues versus 2.6m or 8.0% of revenues in Q Adding back depreciation of 5.4m (H1 2012: 4.6m) resulted in EBITDA of 9.3m or 13.1% of revenues (H1 2012: 11.6m or 16.9% of revenues). The net financial results amounted to 1.4m (H1 2012: 0.9m). Net earnings after tax decreased from 4.4m to 2.3m. Earnings per share attributable to the shareholders of Pankl Racing Systems AG declined from 1.34 to REVENUES BY REGION 2013 versus % Other 8% Other 5% Asia 4% Asia 9% Italy 27% USA 8% Italy 28% USA 10% France H % France H % Great Britain 17% Germany 18% Great Britain 13% Germany 15% Austria 11% Austria

4 04 Interim Group Status Report for the First Half of 2013 Racing/High Performance Segment In the first half of 2013, Racing/High Performance segment revenues increased by 2.8% despite the imminent F1 rule change to move to V6 turbo engines from the V8 engines. In the first quarter, revenues increased by 2.4% to 32.0m (Q1 2012: 31.2m), in the second quarter revenues increased by 3.3% to 27.4m (Q2 2012: 26.5m). The start-up of the first projects in the High Performance division had a positive impact on revenues in the first months of the year. High start-up expenses in combination with lower than anticipated revenues due to project delays burdened segment profitability. In H1 2013, the Racing/High Performance segment EBIT amounted to 3.3m or 5.5% of revenues versus 5.3m or 9.1% of revenues in the same period last year. Aerospace Segment In the first half of 2013, Aerospace segment revenues increased by 5.2% to 11.7m (H1 2012: 11.1m). On a quarterly basis revenues decreased by 4.1% in the first quarter and increased by 14.0% in Q2. The European aero space subsidiary benefitted from sound demand during the whole reporting period. From June it also started to generate significant revenues from jet engine drive shafts. The US aerospace subsidiary experienced a significant improvement in demand in Q2. In the first half, the Aerospace segment EBIT amounted to 1.1m or 9.1% of revenues versus 1.3m or 11.4% of revenues in the same period last year. In Q2, the segment recorded a very favourable EBIT of 1.0m or 14.8% of revenues. BALANCE SHEET AND FINANCIAL POSITION Total assets increased from 149.8m as of 31 December 2012 to 159.1m as of 30 June 2013 due to capital expenditure and an increase in inventories and receivables. Shareholders funds decreased from 69.6m as of 31 December 2012 to 68.8m as of 30/6/2013. Net debt increased to 58.7m as of 30 June 2013 resulting in a financial gearing of 85%. SHARE PRICE DEVELOPMENT OF PANKL SHARE 01/07/ /06/ 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 05 CASH FLOW In the first half of 2013, cash flow from results decreased by 14.1% from 8.9m to 7.6m. Cash flow from operating activities decreased from 9.7m to 1.2m. This was primarily due to an increase in inventories and receivables in the high performance and aerospace divisions. Cash flow from investing activities amounted to 9.8m (H1 2012: 10.2m) which was lower than the record figure in the same period last year. Cash flow from financing activities increased from 7.3m to 9.1m. As of 30 June 2013, cash and cash equivalents amounted to 10.4m versus 13.2m as of 30 June CAPITAL EXPENDITURE In the first half of 2013, capital expenditure amounted to 9.9m versus 10.4m in the same period last year. This capital expenditure referred primarily to the production facilities in Bruck upon Mur and Kapfenberg. RISK REPORT Pankl Racing Systems AG specialises in the development, production and distribution of engine and drivetrain systems for motor racing, high performance cars and aerospace. Pankl Racing Systems AG is a technology business and acts in a very dynamic environment. The motor racing division is exposed to high volatility also during a fiscal year. The aerospace division allows longer term planning. Pankl Racing Systems AG developed intense relationships with customers and suppliers to monitor and manage existing and future market risk. This allows early detection of a changing market environment and early implementation of appropriate counter measures. In the second half of 2013, the major risks for the development of the Pankl Racing Systems AG business refer primarily to the areas growth, expansion of production capacities, integration of newly acquired companies, quality of products and services and foreign exchange fluctuations. IMPORTANT EVENTS DURING THE REPORTING PERIOD Shareholder Meeting and Dividend Payment In the 15 th AGM held on 25 April 2013, a resolution was unanimously passed to distribute a dividend of 1.00 per share for the fiscal year This dividend payment was proposed by the management board and approved by the supervisory board. For 3,150,000 shares this resulted in a total dividend payment of 3.15m. In this AGM, KPMG Austria AG Wirtschaftsprüfungsund Steuerberatungsgesellschaft, Linz, was elected to be the auditor for the fiscal year OUTLOOK CEO Wolfgang Plasser: The fiscal year 2013 turns out to be much more difficult than the fiscal year 2012, when all company divisions showed record performance at the same time. The imminent F1 rule change to move to V6 turbo engines, a decline in racing budgets in other racing categories driven by the uncertain economic environment and project delays in the high performance division burden our business. In the first half of 2013 we completed our major capital expenditure projects in Bruck upon Mur and Kapfenberg and brought our new production capacities online. The fiscal year 2013 will hence become a transition year in which we will beat the record 2012 revenues but will not reach the record 2012 earnings.

6 06 Interim Consolidated Financial Statements for the First Half of 2013 (acc. to IFRS) CONSOLIDATED PROFIT AND LOSS ACCOUNT for the first Half of 2013 Q H Q H in k in % in k in % in k in % in k in % Revenues 33, , , , Cost of goods sold (25,568) (75.5) (52,380) (73.9) (24,198) (75.2) (50,175) (73.0) Gross profit 8, , , , Distribution expenses (2,540) (7.5) (4,897) (6.9) (1,933) (6.0) (3,909) (5.7) Administrative expenses (5,289) (15.6) (10,396) (14.7) (4,193) (13.0) (8,514) (12.4) Other operating income , Other operating expenses (38) (0.1) (73) (0.1) (195) (0.6) (262) (0.4) Earnings before interest and taxes (EBIT) , , , Financial income (66) (0.2) Financial expenses (694) (2.0) (1,396) (2.0) (399) (1.3) (1,091) (1.5) Financial result (760) (2.2) (1,355) (1.9) (305) (1.0) (939) (1.3) Earnings before taxes (EBT) , , , Income taxes (324) (0.5) (645) (2.0) (1,650) (2.4) EARNINGS AFTER TAXES , , , Attributable to shareholders of parent company , , , Attributable to minorities (8) EARNINGS PER SHARE Undiluted = fully diluted earnings per share Consolidated Statement of Comprehensive Income for the first Half of 2013 H H Shareholders Minorities Total Shareholders Minorities Total of parent of parent company company in k in k in k in k in k in k Earnings after taxes 2, ,272 4, ,433 Items which are not reclassified in the income statement: Actuarial profits/losses from performance driven pension plans (6) 0 (6) Reclassified amounts: Foreign exchange differences (95) 1 (94) Reserves from cash flow hedging (344) 0 (344) Other comprehensive income for the period Total comprehensive income 2, ,432 4, ,750

7 07 CONSOLIDATED BALANCE SHEET ASSETS 30/06/ /06/ /12/2012 in k in % in k in % in k in % LONG-TERM ASSETS Goodwill 11, , , Other intangible assets 2, , , Tangible assets 63, , , Financial assets 1, , , Deferred taxes 3, , , Total long-term assets 82, , , SHORT-TERM ASSETS Stock 42, , , Trade accounts receivables 20, , , Other short-term assets and receivables 3, , , Cash and cash equivalents 10, , , Total short-term assets 76, , , TOTAL assets 159, , , LIABILITIES 30/06/ /06/ /12/2012 in k in % in k in % in k in % SHAREHOLDERS EQUITY Share capital 3, , , Capital reserves 37, , , Reserves from retained earnings 23, , , Share of minorities 4, , , Total shareholders equity 68, , , LONG-TERM LIABILITIES Long-term loans 49, , , Long-term finance lease obligations 1, , , Personnel related provisions 1, , , Long-term provisions Investment grants Deferred taxes Total long-term liabilities 53, , , SHORT-TERM LIABILITIES Short-term loans and short-term portion of long-term loans 17, , , Short-term leasing obligations Other short-term liabilities 9, , , Trade accounts payables 8, , , Short-term provisions Total short-term liabilities 37, , , Total liabilities 90, , , TOTAL Equity and LIABILITIES 159, , ,

8 08 Interim Consolidated Financial Statements for the First Half of 2013 CONSOLIDATED CASH FLOW STATEMENT for the first Half of 2013 Q H Q H in k in k in k in k Earnings after taxes 459 2,272 1,623 4,433 Depreciation, change of long-term provisions, profit/loss from sale of fixed assets 2,797 5,350 2,378 4,445 Cash flow from earnings 3,256 7,622 4,001 8,878 Change in other assets and receivables (1,415) (6,433) 1, Cash flow from operating activities 1,841 1,189 5,178 9,697 Cash flow from investing activities (5,043) (9,799) (5,573) (10,207) Operating free cash flow (3,202) (8,610) (395) (510) Cash flow from financing activities 2,488 9,079 6,644 7,293 CHANGE OF CASH AND CASH EQUIVALENTS (714) 469 6,249 6,783 Cash and cash equivalents at the beginning of the period 11,138 9,955 6,914 6,380 Cash and cash equivalents at the end of the period 10,424 10,424 13,163 13,163 SCHEDULE OF DEVELOPMENT OF SHARHOLDERS FUNDS Sharefor the first Half of 2013 holders Reserves from retained earnings equity Share- Other attributable holders Share Capital Treasury Cash flow Translation reserves to share- equity Total capital reserves shares hedging reserve from holders attributreserve retained of parent able to in k earnings company minorities H As of 31/12/2011 (= 01/01/2012) 3,500 37,434 (5,951) 0 (5,423) 32,346 61,906 2,475 64,381 Earnings after taxes ,222 4, ,433 Results directly accounted for in equity (344) Cancellation of own shares (350) 350 5, (5,951) Distributions to shareholders (1,260) (1,260) (155) (1,415) As of 30/06/2012 3,150 37,784 0 (344) (4,803) 29,357 65,144 2,572 67,716 H As of 31/12/2012 (= 01/01/2013) 3,150 37,784 0 (713) (5,680) 30,643 65,184 4,427 69,611 Earnings after taxes ,135 2, ,272 Results directly accounted for in equity (95) (6) Distributions to shareholders (3,150) (3,150) (46) (3,196) As of 30/06/2013 3,150 37,784 0 (453) (5,775) 29,622 64,328 4,519 68,847

9 09 SEGMENT REPORTING for the first Half of 2013 Racing/ in k High Performance Aerospace Others Total Translation Group H Segment revenues 59,330 11,712 2,366 73,408 (2,492) 70,916 of which internal ,359 of which external 59,202 11,707 7 EBIT 3,279 1,068 (396) 3, ,951 EBIT in % of segment revenues 5.6% 9.1% (16.7%) 5.4% 5.6% Interest expenses (972) (319) (1,119) (2,410) 1,451 (959) Interest income 1 3 1,488 1,492 (1,451) 41 Segment assets 110,039 23,579 9, ,411 15, ,057 Segment liabilities 18,490 2,509 2,017 23,016 67,194 90,210 Segment capital expenditure 8,141 1, , ,151 Segment depreciation (4,610) (528) (228) (5,366) 0 (5,366) of which exceptional H Segment revenues 57,711 11,129 2,349 71,189 (2,488) 68,701 of which internal ,346 of which external 57,590 11,108 3 EBIT 5,272 1, , ,022 EBIT in % of segment revenues 9.1% 11.4% 20.6% 9.9% 10.2% Interest expenses (1,022) (321) (995) (2,338) 1,625 (713) Interest income ,644 1,672 (1,625) 47 Segment assets 87,387 19,716 8, ,011 18, ,067 Segment liabilities 18,231 2,289 1,321 21,841 44,510 66,351 Segment capital expenditure 9,053 1, , ,609 Segment depreciation (3,941) (451) (212) (4,604) 0 (4,604) of which exceptional

10 10 Notes to the Interim Report on the First Half of 2013 Reporting Rules, Accounting and Valuation Methods The interim accounts per 30 June 2013 were prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and in accordance with interpretations 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 per 31 December For further information please refer to our Annual Report per 31 December 2012, 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. Notes to the Consolidated Profit and Loss Account In the first six months of the fiscal year 2013, group revenues amounted to 70,916k (H1 2012: 68,701k), net profit after tax was 2,272k (H1 2012: 4,433k). On 30 June 2013, Pankl Racing Systems AG held no own shares. The average number of shares in issue amounted to 3,150,000. The net profit attributable to shareholders amounted to 2,135k (H1 2012: 4,222k). Earnings per share amounted to 0.68 (H1 2012: 1.34). Notes to the Consolidated State Ment of Comprehensive Income In the reporting period, foreign exchange differences, which were not booked through the profit and loss account, amounted to 94k (H1 2012: +661k) and resulted from the USD and the GBP. The cash flow hedging reserve changed by +260k (H1 2012: 344k) for which deferred taxes of 87k (H1 2012: +115k) were accounted for. Scope of Consolidation 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. Currently, however, due to rule changes in Formula 1 (introduction of turbo engines), we experience higher seasonal demand later in the year. The Aerospace and the Others segments are less affected by seasonal fluctuations. Notes to the Consolidated Cash Flow Statement In the first six months of the fiscal year, cash and cash equivalents increased by 469k (H1 2012: 6,783k). Cash flow from results amounted to 7,622k (H1 2012: 8,878k). Taking into account the movement of other assets and liabilities (cash outflow of 6,433k) and the cash flow from investing activities ( 9,799k), gives an operating free cash flow of 8,610k (H1 2012: 510k). Notes to the Consolidated Balance Sheet As of 30 June 2013, the balance sheet total amounted to 159,057k and was hence 9,295k above the level as of 31 December This was due to heavy capital expenditure in the first half of 2013 (capital expen diture of 10,151k was significantly higher than depre ciation of 5,366k) and associated financing activities and an increase in working capital resulting from the commencement of a number of customer projects. As of 30 June 2013, shareholders equity amounted to 43.3% of total assets and was slightly lower than at the end of the last fiscal year (31 December 2012: 46.5%).

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. There were no reclassifications within the level hierarchy as of 30 June 2013 and as of 31 December in k Book value Fair value Long-term loans 30/06/ ,004 50,224 31/12/ ,944 38,713 The time value (fair value) of a financial instrument is based on quoted market prices for an identical financial instrument in an active market (level 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 (level 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 (level 3): in k Level 1 Level 2 Level 3 Total Derivatives with negative market value 30/06/ /12/ Important Events after the Interim Balance Sheet Date On 6 August 2013, Pankl Racing Systems AG announced that it was informed in accordance with Chapter 91a of the Austrian Stock Exchange Law ( 91a BörseG) by CROSS Industries AG, Pierer Invest Beteiligungs GmbH, Pierer GmbH, Mr. Stefan Pierer, Unternehmens Invest AG, Knünz Invest Beteiligungs GmbH, Knünz GmbH and Mr. Rudolf Knünz that on 1 August 2013 (binding transaction) CROSS Industries AG acquires 163,188 shares and Unternehmens Invest AG acquires 163,188 shares of Pankl Racing Systems AG. Related Party Transactions Due to business relationships of Pankl Group with CROSS Industries AG and its subsidiaries, revenues were generated in the amount of 2,898k (H1 2012: 1,727k) during the reporting period. CROSS Industries AG invoiced Pankl Group for services (software licences, participation in the group insurance scheme) in the amount of 455k (H1 2012: 195k). Declaration of the 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 group interim 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 six months of the fiscal year, their impact on the group interim 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. Bruck upon Mur, on 23 August 2013 The Management Board of Pankl Racing Systems AG Wolfgang Plasser CEO Josef Faigle COO

12 FINANCIAL CALENDAR FOR FURTHER INFORMATION 18 November 2013 Financial Report for the first three quarters of 2013 February 2014 Publication preliminary results for 2013 For further information on roadshow dates or investor conferences please visit our homepage Pankl Racing Systems AG Industriestrasse West Kapfenberg, Austria INVESTOR RELATIONS Brigitte Putz phone: fax: ir@pankl.com, FURTHER INFORMATION ON PANKL SHARE Securities code (NM): ISIN code: AT Bloomberg symbol: PARS AV Reuters symbol: PARS.VI