Group management report for the fiscal half-year from
1 January to 30 June 2021 Delignit AG, Blomberg
General description of the company
Business and framework conditions
Market environment of the Delignit Group
Results of operations, financial position and net assets
Strategic orientation and opportunities of the Delignit Group
Sustainability/financial and non-financial performance indicators
10. Events after the reporting period
11. Other information
IFRS interim consolidated statement of financial position of Delignit AG
(unaudited) as at 30 June 2021
IFRS interim consolidated statement of comprehensive income (unaudited)
for the fiscal half-year from 1 January to 30 June 2021 of Delignit AG
Disclosures on accounting
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Brief portrait of the Delignit Group
The Delignit Group develops, manufactures and sells ecological, usually hardwood-based, materials and system solutions based on the natural, renewable and CO2-neutral raw material wood.
As a development, project and serial supplier for technology industries, such as the automotive industry, aviation industry and railway industry, business activity today is focused on creating and implementing technological and customised applications and systems.
These applications and systems are used in the form of specific - predominantly ready-to-install - parts, components, system solutions and module solutions. The foundation for this is provided by the Delignit material, which is primarily based on beech wood. Use of Delignit materials as a substitute for applications made of non-renewable raw materials improves the environmental balance of our customers' products and meets their increasing ecological requirements.
The Delignit Group's operating business is divided into two target markets:
Automotive target market:
The Automotive target market is divided into the product groups light commercial vehicles (LCV), motor caravans and passenger cars. The business activity focuses on the manufacture and sale of cargo bay protection systems and security systems (interior) for the LCV class. For example, these systems are used extensively by leading manufacturers of light commercial vehicles as original equipment (OEM) and retrofit equipment (after-sales) as cargo bay floors, walls and partition walls. Interior furnishings, such as cabinet systems, are supplied for the motor caravan sector. In the passenger car sector, for example, trunk covers are used by well-known OEMs.
Technological Applications target market:
The products of the Technological Applications target market are divided into the product groups Building Equipment, Compressed Wood, Railfloor and Special Applications. In the Building Equipment business, for example, flooring solutions for automotive manufacturing plants, and for goods distribution centres and beech multiplex assortments are supplied by the timber trade. The Compressed Wood business consists of highly-compressed and medium-compressed materials that are used for plant construction, machine construction and transformer construction applications. The Railfloor business provides manufacturers of rail vehicles with floor system solutions for fulfilment of international fire protection and sound insulation concepts. The Special business includes various special products for applications, such as model making, musical instruments and sports equipment.
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Delignit Group at a glance Fiscal year (01.01. - 30.06.)
Earnings figures RevenueTotal operating performance Cost of materials Staff costs Other operating expenses EBITDAEBITDA marginEBITEBIT marginEBTEBT margin
Consolidated net income for the first half of the year
Number of shares
EPS in €
Statement of financial position figures
Cash and cash equivalents contained therein
Subscribed capital (share capital) Other equity Total equity Equity ratio Non-current liabilities and provisions Current liabilities and provisions Total assets
Net financial debt (net debt (-)/net cash (+))
Employees (reporting d30.06.)
*Change in percentage points, differences due to commercial rounding
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Greetings from the Management Board
The Delignit Group set a new record for half-year revenue in the first half of 2021 despite a continued difficult market environment. After a drop in revenue on account of the pandemic at the start of last year, the markets began a clear recovery in the second half of 2020 that continued into the first six months of 2021. Consolidated revenue for the first half of the year therefore increased significantly by 41.7 % year-on-year to € 36.3 million. Earnings before interest, taxes, depreciation and amortisation (EBITDA), more than doubled, rising by
105.4 % year-on-year to € 3.2 million.
While last year was dominated by the COVID-19 pandemic, shortages of electronics components and associated plant closures at various OEMs caused corresponding production disruptions at our plants in the first half of 2021. While the supply disruption as a result were moderate compared to the previous year, nonetheless this caused us very particular planning challenges as these interruptions in production typically occur at very short notice and lead to not inconsiderable efficiency losses at our plants. As the demand on our end markets is very high at the same time, the advised call-off figures are at a level which is fulfilled by overtime and component purchases due to short reaction times. These necessary measures, in combination with spontaneous plant closures, are squeezing profitability. While the supply situation on the international semiconductor market is still fraught with considerable uncertainty, our key OEM customers are anticipating a gradual easing in the second half of 2021 and significant backlog effects from prior plant closures.
The development of the serial supply contract for the motor caravan market in particular proved positive and stable in the first six months of fiscal 2021. Driven by consistently strong customer demand, revenue increased significantly compared to the same period of the previous year.
We anticipate further impairments in the remaining fiscal 2021 due to the coronavirus pandemic and the ongoing shortage of electronics components. We are also monitoring developments on the international raw materials markets with all due caution, where a number of raw materials are being hit by steep price increases and supply shortages. Fortunately, the Group's main raw material, beech, is an exception to this development and remains relatively resilient in terms of price and availability. The occasional sharp shortage of freight availability and the associated price increases have also caused us challenges as an export-oriented company.
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