FINANCIAL REPORT Q1 2015

Transcription

1 FINANCIAL REPORT Q Q2 Q1 Q3 WITH RACING SPIRIT TO SUCCESS. PANKL. 02_Key Figures 03_Group Status Report 05_Consolidated Financial Statements 10_Notes 11_Declaration of the Legal Representatives

2 02 PANKL KEY FIGURES EARNING RATIONS Q Q Change Revenues in k 105, , ,803 46, ,027 46,719 0% EBITDA in k 15,226 19,980 17,473 8,951 24,316 8,174 (9%) EBIT in k 7,023 10,382 6,150 6,029 11,893 4,839 (20%) Earnings before taxes (EBT) in k 5,587 8,118 2,850 5,241 8,749 5,129 (2%) Earnings after taxes in k 4,460 5,942 2,493 3,877 6,861 3,977 3% EBITDA margin 14% 16% 12% 19% 15% 17% EBIT margin 7% 8% 4% 13% 7% 10% BALANCE SHEET RATIOS Q Q Change Total assets in k 119, , , , , ,270 8% Net working capital in k 38,415 40,437 53,018 58,036 60,247 67,690 17% Capital employed in k 96, , , , , ,954 9% Shareholders equity in k 64,381 69,611 68,336 72,148 76,780 83,266 15% Equity in % of total assets 54% 46% 40% 40% 42% 43% Net debt in k 32,037 46,819 68,231 70,776 70,915 72,688 3% Gearing 50% 67% 100% 98% 92% 87% CASH FLOW AND CAPEX Q Q Change Cash flow from operating activities in k 10,041 13,627 (403) 2,500 14,662 1,639 (34%) Free cash flow in k 3,806 (12,165) (17,913) (2,448) (1,267) (1,737) (29%) Tangible fixed assets in k 7,425 25,467 18,394 4,895 17,008 3,330 (32%) EMPLOYEES Q Q Change Employees per due date 985 1,142 1,230 1,233 1,287 1,308 6% STOCK EXCHANGE RATIOS Q Q Change Share price per due date (XETRA) in % Number of shares issued m share % Number of treasury shares share 350, % Market capitalisation in m % Earnings per share in % Book value per share in %

3 INTERIM GROUP STATUS REPORT 03 n Revenues nearly unchanged versus last year n In the first quarter of 2015, Formula 1 business returned to normal levels n Second best operating earnings in corporate history n Exceptionally good financial results because of Euro/US Dollar exchange rate development n Record results after tax REVENUES AND EARNINGS In the first quarter of 2015, Pankl Group achieved revenues of 46.7m (Q1 2014: 46.8m). The previous year benefitted both in terms of revenues and earnings from additional Formula 1 demand due to the F1 rule change. This additional demand amounted to 15% of quarterly revenues. In the first quarter of 2015 it was planned that the Racing/High Performance EBIT would not reach the record results of the previous year. The Aerospace segment EBIT remained at about the same level as in the year before. In total, EBIT decreased by 20% from 6.0m or 13% of revenues in the first quarter of 2014 to 4.8m or 10% of revenues in Q Net profit after tax exceeded the record results of the previous year because of a for Pankl Group favourable development of the Euro/US Dollar exchange rate and low interest rates. In the first quarter of 2015, net profit after tax increased by 3% to 4.0m (Q1 2014: 3.9m). Earnings per share attributable to Pankl shareholders increased from 1.13 to RACING/HIGH PERFORMANCE SEGMENT Racing/High Performance segment revenues amounted to 40.4m and were slightly above the level in the same period last year (Q1 2014: 40.1m). In the first quarter of 2015, EBIT amounted to 3.9m or 9.6% of revenues versus 5.3m or 13.2% or revenues in Q This decrease was due to the additional F1 demand in the first quarter of AEROSPACE SEGMENT In the first quarter of 2015, Aerospace segment revenues decreased by 5.8% to 6.3m (Q1 2014: 6.7m). This was due to ongoing pressure on prices within existing projects. EBIT remained stable versus the same period last year and amounted to 0.4m or 6.4% of revenues (Q1 2014: 0.4m or 6.0% of revenues). REVENUES BY REGION 2015 VERSUS % Other 6% Other 4% Asia 5% Asia 5% France 8% Austria 33% USA 10% France 20% USA 10% Great Britain Q % Austria Q % Germany 11% Italy 22% Germany 16% Great Britain 12% Italy

4 04 Interim Group Status Report for the First Quarter of 2015 BALANCE SHEET AND FINANCIAL POSITION Total assets increased from 182.7m as of 31 December 2014 to 192.3m as of 31 March Shareholders equity increased from 76.8m or 42.0% of total assets as of 31 December 2014 by 6.5m to 83.3m or 43.3% of total assets as of 31 March Net debt increased slightly from 70.9m as of 31 December 2014 to 72.7m as of 31 March Due to the increase in shareholders equity, gearing decreased from 92% as of 31 December 2014 to 87% as of 31 March CASH FLOW Cash flow from results increased from 6.8m in the first quarter of 2014 to 7.4m in Q Cash flow from operating activities decreased from 2.5m in the first quarter of 2014 to 1.6m in Q This was mainly due to higher inventory levels in the first quarter of 2015 versus the same period last year. After the completion of the major capex programme of the last years, capital expenditure decreased from 4.9m in the first quarter of 2014 to 3.4m in Q Operating free cash flow amounted to 1.7m (Q1 2014: 2.4m). Cash flow from financing activities amounted to 3.0m. Cash and cash equivalents increased by 1.2m to 13.3m as of 31 March 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 30 and following of the Annual Report for the fiscal year 2014 for a more detailed description of the business risks of our group. OUTLOOK CEO Wolfgang Plasser: In the first quarter of 2014, we benefitted from a major Formula 1 rule change. In the first quarter of 2015, this led to a 6m revenues decrease in motor racing, which was, however, compensated by an appropriate increase in high performance segment revenues. In the following quarters the F1 rule change effect will fade out. Our financial results benefitted significantly from lower refinancing expenses and a favourable foreign exchange development. Hence, for the year as a whole, we expect good results. SHARE PRICE DEVELOPMENT OF PANKL SHARE 01/04/ /03/ A M J J A S O N D J F M 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 Q in k in % in k in % Revenues 46, , Cost of goods sold (33,625) (72.0) (33,040) (70.6) Gross profit 13, , Distribution expenses (2,678) (5.7) (2,494) (5.3) Administrative expenses (6,053) (13.0) (5,483) (11.7) Other operating income Other operating expenses (49) (0.1) (57) (0.1) Earnings before interest and taxes (EBIT) 4, , Financial income 1, Financial expenses (768) (1.6) (806) (1.7) Financial result (788) (1.7) Earnings before taxes (EBT) 5, , Income taxes (1,152) (2.5) (1,364) (2.9) EARNINGS AFTER TAXES 3, , Attributable to shareholders of parent company 3, , Attributable to minorities EARNINGS PER SHARE Undiluted = fully diluted earnings per share

6 06 Interim Consolidated Financial Statements for the First Quarter of 2015 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Shareholders of parent company Minorities Total in k in k in k 01/01/ /03/2015 Earnings after taxes 3, ,977 Items which are never shown in the profit and loss account: Actuarial profits/losses from pension plans and similar schemes (7) 0 (7) 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 2, ,514 Cash flow hedging reserves Deferred taxes on the valuation of cash flow hedges Other results of the period 2, ,509 TOTAL COMPREHENSIVE INCOME 6, ,486 01/01/ /03/2014 Earnings after taxes 3, ,877 Items which are never shown in the profit and loss account: Actuarial profits/losses from pension plans and similar schemes (7) 0 (7) 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 49 (9) 40 Cash flow hedging reserves (75) 0 (75) Deferred taxes on the valuation of cash flow hedges Other results of the period (12) (9) (21) TOTAL COMPREHENSIVE INCOME 3, ,856

7 07 CONSOLIDATED BALANCE SHEET ASSETS 31/03/ /03/ /12/2014 in k in % in k in % in k in % LONG-TERM ASSETS Goodwill 12, , , Other intangible fixed assets 1, , , Tangible fixed assets 72, , , Other financial assets 2, , , Deferred tax assets 2, , , Total long-term assets 91, , , SHORT-TERM ASSETS Inventories 53, , , Trade accounts receivables 30, , , Other short-term receivables and assets 3, , , Cash and cash equivalents 13, , , Total short-term assets 100, , , TOTAL ASSETS 192, , , LIABILITIES 31/03/ /03/ /12/2014 in k in % in k in % in k in % SHAREHOLDERS EQUITY Share capital 3, , , Capital reserves 37, , , Reserves from retained earnings 36, , , Share of minorities 5, , , Total shareholders equity 83, , , LONG-TERM DEBT Bond 9, , , Long-term loans 62, , , Long-term finance lease liabilities , Personnel related provisions 1, , , Long-term provisions Investment grants 1, , Deferred tax liabilities Total long-term debt 76, , , SHORT-TERM DEBT Short-term loans and short-term portion of long-term loans 12, , , Short-term finance lease liabilities Other short-term liabilities 12, , , Trade accounts payable 7, , , Short-term provisions Total short-term debt 32, , , Total debt 109, , , TOTAL EQUITY AND DEBT 192, , ,

8 08 Interim Consolidated Financial Statements for the First Quarter of 2015 CONSOLIDATED CASH FLOW STATEMENT Q Q in k in k Earnings after taxes 3,977 3,877 Depreciation, change of long-term provisions, profit/loss from sale of fixed assets 3,378 2,940 Cash flow from earnings 7,355 6,817 Change in other assets and receivables (5,716) (4,317) Cash flow from operating activities 1,639 2,500 Cash flow from investing activities (3,376) (4,948) Operating free cash flow (1,737) (2,448) Cash flow from financing activities 2,954 3,578 CHANGE OF CASH AND CASH EQUIVALENTS 1,217 1,130 Cash and cash equivalents at the beginning of period 12,077 9,555 Cash and cash equivalents at the end of period 13,294 10,685 SCHEDULE OF CONSOLIDATED SHAREHOLDERS EQUITY Reserves from retained earnings Reserve Shareholders equity attributable to Shareholders Cash flow for foreign Other shareholders equity Share Capital hedging exchange retained of parent attributable capital reserves reserve differences earnings company to minorities Total in k in k in k in k in k in k in k in k Q As at 31/12/2014 (= 01/01/2015) 3,150 37,784 0 (4,165) 34,832 71,601 5,179 76,780 Earnings after taxes ,720 3, ,977 Results directly accounted for in equity ,301 (5) 2, ,509 Dividend payment AS AT 31/03/2015 3,150 37,784 0 (1,864) 38,547 77,617 5,649 83,266 Q As at 31/12/2013 (= 01/01/2014) 3,150 37,784 (469) (6,310) 29,610 63,765 4,571 68,336 Earnings after taxes ,560 3, ,877 Results directly accounted for in equity 0 0 (56) 49 (5) (12) (9) (21) Dividend payment (44) (44) AS AT 31/03/2014 3,150 37,784 (525) (6,261) 33,165 67,313 4,835 72,148

9 09 SEGMENT REPORTING Racing/ High Performance Aerospace Others Total Translation Group in k in k in k in k in k in k Q Segment revenues 40,424 6,326 1,689 48,439 (1,720) 46,719 thereof internal ,687 thereof external 40,395 6,322 2 Earnings before interest and taxes (EBIT) 3, , ,839 EBIT in % of segment revenues 9.6% 6.4% 33.6% 10.0% 10.4% Interest expenses (340) (90) (541) (971) 423 (548) Interest income (423) 20 Total assets of segment 136,100 28,117 10, ,381 17, ,270 Segment liabilities 18,949 2,802 2,146 23,897 85, ,004 Segment capital expenditure 2, , ,444 Segment depreciation (2,755) (391) (189) (3,335) 0 (3,335) thereof exceptional Q Segment revenues 40,127 6,715 1,613 48,455 (1,653) 46,802 thereof internal ,604 thereof external 40,079 6,714 9 Earnings before interest and taxes (EBIT) 5, , ,029 EBIT in % of segment revenues 13.2% 6.0% 20.0% 12.4% 12.9% Interest expenses (458) (146) (706) (1,310) 711 (599) Interest income (711) 18 Total assets of segment 127,094 25,380 9, ,367 16, ,463 Segment liabilities 20,522 3,028 2,806 26,356 79, ,315 Segment capital expenditure 4, , ,002 Segment depreciation (2,476) (288) (158) (2,922) 0 (2,922) thereof exceptional

10 10 NOTES TO THE CONSOLIDATED INTERIM REPORT REPORTING RULES, ACCOUNTING AND VALUATION METHODS The interim accounts as of 31 March 2015 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 of 31 December For further information please refer to our Annual Report as of 31 December 2014, 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 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. NOTES TO THE CONSOLIDATED PROFIT AND LOSS ACCOUNT In the first quarter of 2015, group revenues amounted to 46,719k (Q1 2014: 46,802k), net profit after tax was 3,977k (Q1 2014: 3,877k). On 31 March 2015 and on 31 March 2014, 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 3,720k (Q1 2014: 3,560k). Earnings per share amounted to 1.18 (Q1 2014: 1.13). NOTES TO THE CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME In the first quarter of 2015, foreign exchange differences, which were not booked through the profit and loss account, amounted to +2,514k (Q1 2014: +40k including the portion of minority shareholders) and resulted from the US Dollar and the British Pound. The cash flow hedging reserve which was formed in the first quarter of 2014 was reversed in the fiscal year 2014, because there was no longer any underlying transaction. In the first quarter of 2014, 72k (Q1 2015: 0k) were booked through the profit and loss account. NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT In the first quarter of 2015, cash and cash equivalents increased by 1,217k (Q1 2014: +1,130k). Cash flow from results amounted to 7,355k (Q1 2014: 6,817k). Taking into account the movement of other assets and liabilities (cash outflow of 5,716k) and the cash flow from investing activities ( 3,376k), gives an operating free cash flow of 1,737k (Q1 2014: 2,448k). 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 BALANCE SHEET As of 31 March 2015, the balance sheet total increased by 9,592 and amounted to 192,270k (31 Dec 2014: 182,678k). This was due to an increase in working capital. As of 31 March 2015, shareholders equity increased to 43% of total assets (31 Dec 2014: 42%).

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 quarter of 2015 and in the fiscal year 2014, there were no reclassifications within the level hierarchy. in k Book value Fair value Loans and bonds 31 Mar ,896 88, Dec ,766 84,922 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 31 Mar Dec IMPORTANT EVENTS AFTER THE INTERIM BALANCE SHEET DATE In the 17 th AGM held on 24 April 2015, shareholders voted for the payment of a dividend amounting to 0.60 per share and to carry forward the remainder of the balance sheet profit for new account. Mr. Paul Neumann was voted into the Supervisory Board of the company for the period from the end of the 17 th AGM until the AGM which will vote on the discharge of the board for the fourth fiscal year after the election. RELATED PARTY TRANSACTIONS Due to business relationships of Pankl Group with CROSS Industries AG and its subsidiaries, revenues were generated in the amount of 1,003k (Q1 2014: 966k) during the reporting period. CROSS Industries AG provided services to Pankl Group in the amount of 103k (Q1 2014: 62k) and Pierer Konzerngesellschaft mbh provided services in the amount of 164k (Q1 2014: 164k). 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 three months of the fiscal year, their impact on the group interim financial statements and the risks and uncertainties for the remaining nine 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 30 April 2015 The Management Board of Pankl Racing Systems AG Wolfgang Plasser CEO Josef Faigle COO

12 FINANCIAL CALENDAR AUGUST 2015 Publication half-year results NOVEMBER 2015 Publication first three quarters results 2015 FEBRUARY 2016 Publication results for 2015 For further information on roadshow dates or investor conferences please visit our homepage FOR FURTHER INFORMATION Pankl Racing Systems AG Industriestrasse West Kapfenberg, Austria INVESTOR RELATIONS Silke Pichler phone: fax: ir@pankl.com, FURTHER INFORMATION ON PANKL SHARE Securities code (NM): ISIN code: AT Bloomberg symbol: PARS AV Reuters symbol: PARS.VI