1 | Nynomic AG Half-Year Report
Nynomic AG Half-Year Report
2020
2 | Nynomic AG Half-Year Report
Nynomic Group sales reached a new high after a weaker previous year.
Sales EUR 36.9 million
EBIT EUR 3.6 million
EBIT achieved in the first half of 2020 is at the previous year's level and within the planned target range.
Key figures
in TEUR except EBIT margin and EPS | 1st HY 2020 | 1st HY 2019 | Deviation in % |
Group sales | 36,859 | 29,310 | 26% |
EBIT | 3,640 | 3,604 | 1% |
EBIT margin | 9.9% | 12.3% | -20% |
EBITDA | 5,300 | 5,005 | 6% |
Capital expenditure | 592 | 833 | -29% |
Depreciation | 1,660 | 1,401 | 18% |
Personnel costs | 14,113 | 11,700 | 21% |
Cash flow from operating activities | 3,967 | 2,641 | 50% |
EPS before minority interests* | 0.48 € | 0.48 € | 0% |
EPS after minority interests* | 0.43 € | 0.53 € | -19% |
Sales by segment | |||
in TEUR | 1st HY 2020 | 1st HY 2019 | Deviation in % |
Life Science | 8,062 | 6,516 | 24% |
Clean Tech | 23,630 | 17,595 | 34% |
Green Tech | 5,167 | 4,564 | 13% |
Other revenue** | 0 | 635 | -100% |
Sales by region | |||
inT EUR | 1st HY 2020 | 1st HY 2019 | Deviation in % |
Germany, Europe and other remaining countries | 23,319 | 20,035 | 16% |
America | 10,523 | 7,100 | 48% |
Asia | 3,017 | 2,175 | 39% |
Balance sheet data | |||
in TEUR except equity ratio | Deviation in % | ||
30.06.2020 | 31.12.2019 | ||
Equity | 40,587 | 32,848 | 24% |
Financial liabilities | 30,121 | 25,379 | 19% |
Total assets | 88,848 | 79,231 | 12% |
Equity ratio | 45.7% | 41.5% | 10% |
- The number of shares was calculated as a weighted average in the reporting period.
- Reclassified into segments for 2020.
3 | Nynomic AG Half-Year Report
Table of contents
4 | Letter from the Management Board |
- Key figures
- The Nynomic share
- Consolidated balance sheet as of 30 June 2020
- Consolidated income statement for the period from 1 January to 30 June 2020
- Notes to the consolidated interim financial statements as of 30 June 2020
- Consolidated cash flow statement for the period from 1 January to 30 June 2020
- Management report on the consolidated interim financial statements as of 30 June 2020
- Disclaimer
4 | Nynomic AG Half-Year Report
Letter from the Management Board
Dear Nynomic AG shareholders,
The Nynomic Group has performed well in the first half of 2020. Despite the environment being volatile and marked by social and economic uncertainty, we had a successful start to the year and continued to deliver a strong performance in the second quarter.
Nynomic AG is in a robust position to cope with the coronavirus crisis and is once again proving to be a resilient company. Its results for the first half of the year are encouraging. It achieved group sales of EUR
36.9 million (PY: EUR 29.3 million; +26%) and EBIT of EUR 3.6 million (PY: EUR 3.6 million; +0%) in the first six months of 2020. At around 10% (PY: 12%), its EBIT margin was at a solid level overall. Its order backlog reached a new high of EUR 45.1 million, represent-
now benefitting from its stable and resilient business model and the diversification strategy it has pursued in terms of products, markets and regions in recent years.
The measures we have introduced have enabled us to maintain our production, logistics and other business operations throughout the group. Our top priority currently is to ensure the health and safety of our employees. Our well-established organisational and technical measures are enabling us to relocate many business activities to our home office smoothly. The Nynomic team has mastered working in the new environment, and we are very proud of it. It is very important that we should be able to pursue our business model within our sales and other processes consistently and without disruption.
The Nynomic Group is now benefitting from its stable and resilient business model and the diversification strategy it has pursued in terms of products, markets and regions in recent years.
ing an increase of 19%, at the end of the first half of | Our Annual General Meeting took place on 14 July |
2020. This provides a solid foundation for the future | 2020. Holding this meeting virtually (for the first |
and demonstrates the strong market position that | time) enabled us to hold it as planned and to pass the |
the Group has achieved thanks to its high levels of | required resolutions despite the current restrictions |
expertise and innovativeness. | on gatherings. The meeting expressed its confidence |
in the members of Nynomic AG's Management and | |
The coronavirus pandemic has had a significant impact | Supervisory Boards for the 2019 financial year by a |
around the world and it also affected our business | large majority and approved all items on the agenda. |
activities in the first half of 2020. We have contin- | We are grateful to you for this. |
ued to work in a focused and determined manner | |
despite the difficult conditions which this unprec- | The ongoing restrictions resulting from the pandemic |
edented crisis has caused. Our Life Science portfo- | continue to cloud the economic outlook for 2020. |
lio has enabled us to exploit the significant growth | The significant challenges we all face, and the gen- |
potential of medical products and thereby bene- | eral uncertainty we all feel, make it difficult to pro- |
fit from the stabilising effect of risk diversification. | vide a reliable forecast for the rest of the 2020 finan- |
The sales growth we have achieved in some busi- | cial year. Based on the business developments and |
ness areas due to substantially increased demand | planning described in this report, we confirm our full- |
is compensating for the impact the pandemic has | year forecast for consolidated sales exceeding EUR |
had on other business areas. The Nynomic Group is | 70 million with an EBIT margin of over 10%, despite |
5 | Nynomic AG Half-Year Report
declining growth expectations worldwide. However, we cannot at this time predict, even for the Nynomic Group, the extent to which unforeseeable events in the wake of the coronavirus pandemic will affect business during the rest of the year.
and successful acquisitions of strategically appropriate additions to our business should position us well for the future.
Our solid asset and financial position ensures that | With best wishes, | |
we have sufficient liquidity. We are using our com- | ||
fortable net cash position to pursue our buy and | Fabian Peters | Maik Müller |
build strategy actively. We evaluate our processes | ||
and goals on a regular basis and are never satisfied | ||
with the milestones we have already achieved. Our | ||
track record of product developments in the field of | ||
innovative non-contact measurement technology |
Nynomic AG Management Board | Nynomic AG Management Board |
Fabian Peters | Maik Müller |
6 | Nynomic AG Half-Year Report
Key figures*
Comparison 1st half 2017 to 1st half 2020
Sales in million EUR
The Nynomic Group achieved sales well above the previous year despite the difficult economic environment.
EBIT in million EUR
EBIT was maintained at a stable level, as in the previous year.
40 | |||
35 | |||
30 | |||
25 | |||
20 | |||
15 | |||
10 | |||
5 | |||
2017 | 2018 | 2019 | 2020 |
7 | |||
6 | |||
5 | |||
4 | |||
3 | |||
2 | |||
1 | |||
2017 | 2018 | 2019 | 2020 |
EBIT margin in % | Cash on hand in million EUR |
The EBIT margin dropped by 2% compared to the | The capital increase announced in June 2020 increased |
previous year. | the cash on hand. |
20% | |||
15% | |||
10% | |||
5% | |||
2017 | 2018 | 2019 | 2020 |
18 | ||||
16 | ||||
14 | ||||
12 | ||||
10 | ||||
8 | ||||
6 | ||||
4 | ||||
2 | 2017 | 2018 | 2019 | 2020 |
Average employee numbers**
The number of employees increased due to the integration of LemnaTec GmbH and Sensortherm GmbH.
Order backlog in million EUR
The Nynomic Group had a record order backlog of EUR 45.1 million as of the end of June 2020.
450 | ||||
400 | ||||
350 | ||||
300 | ||||
250 | ||||
200 | ||||
150 | ||||
100 | ||||
50 | 2017 | 2018 | 2019 | 2020 |
* The key figures since 2018 are shown in accordance with IFRS.
50 | ||||
45 | ||||
40 | ||||
35 | ||||
30 | ||||
25 | ||||
20 | ||||
15 | ||||
10 | ||||
5 | 2017 | 2018 | 2019 | 2020 |
** The average number of employees until 2018 is based on full-time employees.
7 | Nynomic AG Half-Year Report
The Nynomic share
During the reporting period from 1 January to 30 June 2020, the Nynomic share price was negatively affected on the one hand by the temporary stock market crash caused by the coronavirus pandemic, and positively on the other hand by the Group's successful and counter -cyclical operating business performance.
The closing price was EUR 18.70 on 2 January and EUR
21.90 on 30 June. The Scale 30 index fell from 1,118 to
1,064 points, after a much larger interim low, in the same period.
The Nynomic share price was above EUR 20 before the crisis but was pulled down to just over EUR 12 within a few trading days in the general downward slide.
Following positive sales and earnings figures, the share price almost doubled during the general market recovery and thereby regained its pre-crisis level.
Buy recommendations from market reports such as "Platow Börse" and "Der Aktionär" supported the rises.
Recent research reports by Montega AG (fair value: EUR 31.00) and Warburg Research (EUR 28.00) suggest further upwards potential.
Nynomic share price development (in EUR)
26
24
22
20
18
16
14
12
10
January 2020
(closing price on XETRA)
Closing price
EUR 21.90
June 2020
Master data
Name | Nynomic AG |
Total number of shares | 5,323,500 |
Specialist | Baader Bank AG |
Designated Sponsor | Oddo Seydler Bank AG |
Capital Market Partner | M.M.Warburg & CO (AG & Co). (until 30.06.2020) |
ICF BANK AG (from 01.07.2020) | |
Stock exchange segment | Scale |
ISIN / WKN / abbreviation | DE000A0MSN11 / A0MSN1 / M7U |
8 | Nynomic AG Half-Year Report
Consolidated balance sheet as of 30 June 2020
Assets
in TEUR | in TEUR | |
30.06.2020 | 31.12.2019 | |
Goodwill | 32,869 | 32,869 |
Intangible assets | 2,067 | 2,255 |
Property, plant and equipment | 2,883 | 2,937 |
Participations | 0 | 0 |
Rights of use in accordance with IFRS 16 | 5,919 | 5,235 |
Deferred tax assets | 230 | 230 |
Non-current assets | 43,969 | 43,526 |
Inventories | 13,058 | 11,608 |
Receivables from goods and services | 11,007 | 9,481 |
Refund claims from income taxes | 1,179 | 2,776 |
Other assets | 1,687 | 860 |
Other non-financial assets | 391 | 336 |
Cash and cash-equivalents | 17,558 | 10,644 |
Current assets | 44,880 | 35,705 |
Balance sheet total | 88,848 | 79,231 |
9 | Nynomic AG Half-Year Report
Consolidated balance sheet as of 30 June 2020
Liabilities
in TEUR | in TEUR | |
30.06.2020 | 31.12.2019 | |
Subscribed capital | 5,324 | 5,070 |
Capital reserve | 9,087 | 4,284 |
Equity capital difference from currency conversion | 139 | 224 |
Consolidated balance sheet profit | 22,852 | 21,811 |
Capital and reserves attributable to the shareholders of the parent company | 37,401 | 31,389 |
Non-controlling interests | 3,186 | 1,459 |
Equity capital | 40,587 | 32,848 |
Liabilities to credit institutes | 25,278 | 21,562 |
Leasing liabilities in accordance with IFRS 16 | 4,655 | 4,030 |
Deferred tax liabilities | 0 | 26 |
Long-term liabilities | 29,933 | 25,618 |
Liabilities from goods and services | 5,134 | 3,603 |
Liabilities to credit institutes | 4,843 | 3,817 |
Leasing liabilities in accordance with IFRS 16 | 1,510 | 1,463 |
Other provisions | 2,021 | 1,795 |
Other liabilities | 4,035 | 9,927 |
Liabilities from income taxes | 786 | 160 |
Current liabilities | 18,329 | 20,765 |
Balance sheet total | 88,848 | 79,231 |
10 | Nynomic AG Half-Year Report
Consolidated income statement for the period from 1 January to 30 June 2020
in TEUR | in TEUR | |
1st Half-year 2020 | 1st Half-year 2019 | |
Sales revenues | 36,859 | 29,310 |
Changes in inventories for finished goods and work in progress | 592 | 327 |
Other capitalised own work | 94 | 87 |
Overall performance | 37,546 | 29,724 |
Cost of materials | -13,991 | -9,981 |
Personnel costs | -14,113 | -11,700 |
Other operating expenses | -4,803 | -4,282 |
Other operating income | 662 | 1,244 |
EBITDA | 5,300 | 5,005 |
Depreciations | -1,660 | -1,401 |
Operating result (EBIT) | 3,640 | 3,604 |
Other interest and similar income | 9 | 19 |
Interest and similar expenses | -312 | -351 |
Earnings before taxes (EBT) | 3,336 | 3,272 |
Taxes on income and earnings | -867 | -851 |
Consolidated net profit | 2,469 | 2,421 |
Minority interests in earnings | -303 | 257 |
Consolidated net profit (excluding non-controlling interests) | 2,166 | 2,678 |
Consolidated comprehensive income statement | in TEUR | |
in TEUR | ||
1st Half-year 2020 | 1st Half-year 2019 | |
Consolidated net profit | 2,469 | 2,421 |
Change in equity from initial consolidation of value in use (IFRS 16) | 0 | -10 |
Other income | 0 | -10 |
Consolidated comprehensive income | 2,469 | 2,411 |
Earnings per share (including minority interests) in EUR | 0.48 | 0.48 |
Earnings per share (excluding minority interests) in EUR | 0.43 | 0.53 |
Average number of shares | 5,096 | 5,070 |
11 | Nynomic AG Half-Year Report
Notes to the consolidated interim financial statements as of 30 June 2020
Generalinformation about the consolidated interim financial statements
These unaudited half-yearconsolidatedfinancialstatements were prepared in accordance with the International Financial Reporting Standards (IFRS) in full compliance with the IFRS applicable in the European Union and with the additional requirements of German commercial law and stock corporation law pursuant to section 315e of the German Commercial Code (HGB).
The consolidation, accounting, and valuation methods were also applied in preparing these interim financial statements, insofar as theywere in agreement with the IFRS, unchanged from the previous accounting standards in accordance with the HGB.
The IAS 34 (interim financial reporting) requirements were observed.
Nynomic AG has its registered office in Wedel and is registered in the Commercial Register of the Pinne- berg Local Court under No. HRB 6913 PI.
The consolidated income statement was prepared using the total cost method.
The financial year for the Group and the consolidated companies corresponds to the calendar year.
The shares are listed onthe Regulated UnofficialMarket (Open Market), which is not an organised market within the meaning of section 2 (11) of the German Securities Trading Act (WpHG). The shares are traded in the SME "Scale" segment of Deutsche Börse AG in Frankfurt.
The accounting and valuation methods explained below were applied in the preparation of the consolidated interim financial statements.
New accounting standards
Since 1 January 2019, the Company has been required to show leases in accordance with IFRS 16 (Leases). This requires lessees to recognise assets and liabilities in the balance sheet for most leases. Accordingly, the value in use on the basis of future lease payments is shown at its present value as an asset and simultaneously as a lease liability in the balance sheet. The value in use is determined over the contractual useful life using mathematical valuation models.
Scope of consolidation
Subsidiaries included
Nynomic AG is the direct or indirect parent company of the following subsidiaries within the meaning of IFRS 10, which are included in the consolidated interim financial statements in accordance with the principles of consolidation:
Share of capital in % | |
m-u-t GmbH, Wedel | 100.00 |
tec5 AG, Oberursel/Taunus | 100.00 |
with its affiliated companies and their shares in the capital: | |
tec5 USA Inc., Plainview (New York/USA) | 51.00 |
tec5 China Ltd., Peking (China) | 80.00 |
Avantes Holding B.V., Apeldoorn (Netherlands) | 100.00 |
with its affiliated companies and their shares in the capital: | |
Avantes B.V., Apeldoorn (Netherlands) | 100.00 |
Avantes Inc., Louisville (Colorado/USA) | 100.00 |
Avantes China Ltd., Peking (China) | 60.00 |
Avantes Hong Kong Ltd., Hongkong (China) | 60.00 |
Avantes UK Ltd., Leatherhead (Surrey/Great Britain)* | 100.00 |
APOS GmbH, Wedel | 100.00 |
with its affiliated companies and their shares in the capital: | |
APOS IP GmbH, Wedel | 100.00 |
12 | Nynomic AG Half-Year Report
LayTec AG, Berlin | 100.00 |
with its affiliated companies and their shares in the capital: | |
LayTec in-line GmbH, Berlin** | 100.00 |
LayTec Vertriebs- und Service GmbH, Berlin** | 100.00 |
LayTec UK Ltd., Ince (Greater Manchester/Great Britain) | 95.68 |
Spectral Engines Oy, Helsinki (Finland) | 100.00 |
with its affiliated companies and their shares in the capital: | |
Purpl Scientific Inc., St. Louis (Missouri/USA) | 100.00 |
LemnaTec GmbH, Aachen | 100.00 |
Sensortherm GmbH, Sulzbach | 100.00 |
*This company is dormant.
**Effective 1 January 2020, merged with LayTec AG, Berlin.
Information on accounting and valuation methods
The assets included in the consolidated interim financial statements are measured in the same way in accordance with IFRS 10.
Self-developed intangible assets were capitalised at cost in accordance with IAS 38. This refers to the creation of control software. The software is reduced by scheduled depreciation (5 or 10 years, straight-linemethod).
Purchased intangible assets were carried at cost and, to the extent that they are subject to wear and tear, were reduced by scheduled depreciation over their useful lives (3-10years, straight-linemethod).
Tangible fixed assets (PP&E) were carried at acquisition or production cost and, if subject to wear and tear, reduced by scheduled depreciation. Assets attributable to tangible fixed assets (PP&E) were depreciated over their estimated useful lives. Depreciation is calculated using the straight-linemethod.
Inventories were carried at the lower of cost or market value. If the net realisable value was less than
the carrying amount, the inventories were written down to this lower value.
Work in progress and finished goods and services
were valued at production cost in accordance with IAS 2, including any necessary overheads.
Receivables and other assets were carried at nominal value. Individual risks were accounted for through value adjustments. Default and credit risks were sufficiently taken into account by value adjustments.
Provisions take into account all identifiable risks and contingent liabilities. They are disclosed at the settlement value required in accordance with reasonable commercial judgement, taking price increases into account. Provisions without interest with a term of more than one year are discounted using an average market interest rate before taxes.
Liabilities are disclosed at their settlement value.
The financial statements of subsidiaries in foreign
currencies were translated in accordance with IAS 21 using the modified closing rate method, i.e. the balance sheets and the income statements were translated at the closing rate (exception: shareholder equity at historical rates) and at the average rate for the year respectively. Any resulting differences were reported in equity as an adjustment item for currency conversion differences and included in comprehensive income.
Notes to the balance sheet
Deferred tax assets and liabilities
The calculation of deferred taxes is based on temporary differences arising from the difference to approaching the matter under tax law. Deferred taxes include deferred taxes in tec5 USA Inc.'s individual financial statements. Deferred taxes from the elimination of intercompany profits were recognised at an unchanged average tax rate of 30% at the time of
13 | Nynomic AG Half-Year Report
the probable reversal. Minor deferred tax liabilities were offset against deferred tax assets in the individual financial statements of a subsidiary.
Subscribed capital
On the reporting date, the share capital was divided into 5,323,500 no-par value bearer shares, each with a notional value of EUR 1.00. All shares are ordinary shares with one voting right each.
Nynomic AG's Management Board decided, with the Supervisory Board's approval, to implement a capital increase. Nynomic AG's share capital was increased by EUR 253,500, excluding shareholders' pre-emption rights, partly using existing Authorised Capital 2019. This corresponds to 5% of the existing share capital.
The increase was made in return for cash contributions through the issue of 253,500 new bearer shares ("New Shares"). This increased the Company's share capital from EUR 5,070,000 to EUR 5,323,500.
The share capital was conditionally increased by up to EUR 478,500 by resolution of the annual general meeting on 6 June 2014 to grant subscription rights to employees and members of the management of the Company or an affiliated company (Conditional Capital 2014/I).
The Management Board was authorised by a resolution of the annual general meeting on 26 June 2019 to increase the share capital by up to EUR 2,535,000 against cash and/or non-cash contributions by issuing new bearer shares (Authorised Capital 2019).
The share capital was conditionally increased by up to EUR 2,056,500 by resolution of the annual general meeting on 26 June 2019 to grant subscription and/or conversion rights to the holders of options and/or convertible bonds (Conditional Capital 2019).
Other liabilities
Other liabilities mainly relate to short-term personnel obligations and tax payments.
Granted collateral
The Company's assets are free of any granted col- lateral.
Notes to the income statement
Breakdown of sales
Sales revenues are broken down as follows: by area of activity
in TEUR | |
Life Science | 8,062 |
Clean Tech | 23,630 |
Green Tech | 5,167 |
Total | 36,859 |
by sales region
in TEUR | |
Germany, Europe and other remaining countries | 23,319 |
America | 10,523 |
Asia | 3,017 |
Total | 36,859 |
Income taxes
The income tax expense mainly relates to the current profit of the first half of the year. The group income tax rate remains unchanged compared with the same period a year earlier.
Other disclosures
Contingent liabilities
There were no contingent liabilities as of the reporting date.
Disclosures on financial instruments
The Company made only limited use of financial instru- ments.
14 | Nynomic AG Half-Year Report
Number of employees
The average number of employees during the first half of 2020 (including the members of the Management Board) was as follows:
Salaried employees | 370 |
Waged workers | 58 |
Students/interns | 3 |
Apprentices | 0 |
Total | 431 |
Supplementary report
The Management Board and some senior executives took the opportunity to exercise share option rights. This resulted in a capital increase from the issue of treasury shares to employees. There were no other events of special significance after the end of the first half of 2020.
Management Board
The Management Board consists of:
- Mr Fabian Peters, Westerrönfeld
- Mr Maik Müller, Kronberg im Taunus
The members of the Management Board are each entitled to represent the Company jointly with one other member of the Management Board. The Company avails itself of the exemption in section 286 (4) HGB read in conjunction with section 315e HGB.
Supervisory Board
The Supervisory Board consists of:
- Mr Hans Wörmcke (Chairman), Heist, entrepreneur
- Dr Sven Claussen (Deputy Chairman), Hamburg, law- yer and partner in Weiland Rechtsanwälte Partner- schaftsgesellschaft mbB
- Mr Hartmut Harbeck, Wedel, entrepreneur
Declaration by the legal representatives
These consolidated interim financial statements as of 30 June 2020 and the interim group management report were prepared on 21 August 2020 by Nynomic AG's Management Board, which is responsible for the completeness and accuracy of the information contained therein. The consolidated interim financial statements have been prepared in accordance with IFRS, in particular the rules on interim financial reporting pursuant to IAS 34. They comply with Directive 83/349/EEC. The previous year's figures were calculated in accordance with the same princi- ples. The consolidated interim financial statements have been supplemented by an interim group management report and other disclosures as required by section 315e HGB.
Wedel, 21 August 2020
Fabian Peters | Maik Müller |
Nynomic AG | Nynomic AG |
Management Board | Management Board |
15 | Nynomic AG Half-Year Report
Consolidated cash flow statement for the period from 1 January to 30 June 2020
in TEUR | in TEUR | |||
1st Half-year 2020 | 1st Half-year 2019 | |||
1. | Result for the period (consolidated net profit/(loss) for the period, including minority | 2,469 | 2,421 | |
interests) | ||||
2. | +/- | Depreciation/write-ups of fixed assets | 1,660 | 1,401 |
3. | +/- | Increase/decrease in provisions | 227 | -2,258 |
4. | +/- | Other non-cash expenses/income | -85 | 14 |
5. | -/+ | Increase/decrease in inventories, trade receivables and other assets not attributable | -2,261 | 2,001 |
to investing or financing activities | ||||
6. | +/- | Increase/decrease in trade payables and other liabilities not attributable to investing | 1,397 | -1,371 |
or financing activities | ||||
7. | +/- | Interest expenses/income | 303 | 333 |
8. | +/- | Income tax expense/income | 867 | 851 |
9. | -/+ | Income tax payments | -610 | -751 |
10. | = | Cash flows from operating activities | 3,967 | 2,641 |
11. | - | Outgoing payments for capital expenditure on assets | -592 | -833 |
12. | - | Outgoing payments for additions to the consolidated group less acquired cash and | -5,111 | 0 |
cash-equivalents | ||||
13. | + | Interest received | 9 | 19 |
14. | = | Cash flow from investment activities | -5,694 | -814 |
15. | + | Proceeds from equity contributions by shareholders of the parent company | 5,057 | 0 |
16. | + | Proceeds from issuing bonds and taking out (financial) loans | 6,862 | 0 |
17. | - | Outgoing payments for the repayment of bonds and (financial) loans | -2,120 | -881 |
18. | - | Outgoing payments for the repayment of financial liabilities relating to IFRS 16 | -886 | -660 |
19. | - | Interest paid | -312 | -351 |
20. | = | Cash flow from financing activities | 8,601 | -1,892 |
21. | Net change in cash and cash-equivalents | 6,873 | -65 | |
22. | +/- | Effects of exchange rate and valuation-related changes on cash and cash-equivalents | -7 | 20 |
23. | + | Cash and cash-equivalents at the beginning of the period | 10,458 | 10,878 |
24. | = | Cash and cash-equivalents at the end of the period | 17,324 | 10,833 |
Composition of and change in cash and cash-equivalents | in TEUR | in TEUR |
1st Half-year 2020 | 1st Half-year 2019 | |
Cash on hand and bank balances | 10,644 | 11,078 |
Liabilities to credit institutes due at any time | -185 | -200 |
Financial funds at the beginning of the period | 10,458 | 10,878 |
Cash in hand, cheques and bank balances | 17,558 | 11,055 |
Liabilities to credit institutes due at any time | -234 | -221 |
Financial funds at the end of the period | 17,324 | 10,833 |
Change in cash and cash-equivalents | 6,866 | -44 |
16 | Nynomic AG Half-Year Report
Consolidated interim financial statements as of 30 June 2020
The statements made in the 2019 annual report on the group business model, strategy, and objectives and on research and development in the group are still accurate at the time this interim report is prepared.
Nynomic AG acquired the remaining 25% of Spectral Engines Oy from its founding shareholders during the first half of 2020. It also acquired the remaining 45% of the shares in APOS GmbH from the remaining founding shareholder during the first half of the year. These acquisitions served to consolidate the group structure and to reduce minority interests in the group.
A contribution by a strategic investor at normal market price conditions resulted in a 5% capital increase out of authorised capital, excluding shareholders' pre-emptionrights,andfurtherstrengthenedtheCom- pany's capital base. The additional liquidity will help the Company to implement its buy and build strategy.
Structure
A. Business performance, including presentation of the net assets, financial position, and results of operations
B. Report on opportunities and risks C. Forecast report
D. Other disclosures
to the same period of the previous year was mainly due to the current increase in demand for medical equipment and a recovery of operating business in the semiconductor market.
The upward trend in order intakes in the first half of 2020, which amounted to approximately EUR 47.7 million (PY: EUR 32.0 million; +49%), and the new record order backlog of approximately EUR 45.1 million (PY: EUR 38.0 million; +19%) confirm that the Nynomic Group's products and services continue to be in high demand and that its strategic orientation is successful.
Operating result
The consolidated operating result for the first half of 2020 is characterised by an increase in sales and by capital expenditure on products and markets. EBIT of approximately EUR 3.6 million (PY: EUR 3.6 million; +0%) was achieved in the period from 1 January to 30 June 2020, which is within the planned target range.
The tec5 and m-u-t subgroups both exceeded their sales and earnings levels from the previous year in the first half of 2020. The Avantes, LayTec and Sen- sortherm subgroups performed according to plan and thereby also contributed positively to the half-year result. Spectral Engines, which was integrated into the Group in 2018, and LemnaTec, which was consolidated in the third quarter of 2019, were not yet profitable in the first half of 2020, as their start-up costs still had to be taken into account and they were adversely affected by the current difficult economic situation.
A. Business performance, including presentation of the net assets, financial position, and results of operations
Sales trend
The Nynomic Group's business performance was positive in the first half of 2020 compared to the previous year, despite the serious global crisis. Group-wide sales increased to approximately EUR 36.9 million (PY: EUR 29.3 million; +26%) despite the challenging market environment. The increase in sales compared
Gross margin decreased slightly compared to the previous year, mainly due to changes in the product portfolio. The cost structure is virtually unchanged compared to the previous year. While personnel costs remained at a higher level due to consolidation effects, other operating expenses and depreciation were only slightly higher than in the previous year.
Capital expenditure
In the past first half of the year, replacement capital expenditure was mostly made on operating and
17 | Nynomic AG Half-Year Report
office equipment, amounting to approximately EUR 0.6 million.
Financing
Financing of share acquisitions by banks and use of current account facilities amounted to EUR 30.1 million on the reporting date. EUR 2.1 million was repaid in the first half of 2020, as scheduled.
Net liabilities to credit institutes (cash and cash-equivalents less liabilities to credit institutes) amounted to EUR 12.6 million as of 30 June 2020 (as of 31 Decem- ber 2019: EUR 14.7 million).
EUR 6.2 million of liabilities from lease financing relate to the present value of rental payments for rented premises and office equipment, which were recognised as liabilities for the first time as of 1 Jan- uary 2019 in accordance with IFRS 16 (leases). A similar amount was capitalised under fixed assets as the value in use from leasing and is depreciated over the term of the underlying rental agreements. Liabilities from lease financing are also reduced by the underlying lease payments.
In addition to its strong financing power, the Company continues to have sufficient access to funds to finance its medium-term corporate strategy by making full use of lines of credit provided by banks and by implementing capital measures.
The Management Board considers the ongoing monitoring of liquidity to be one of its core group-wide tasks and it has implemented appropriate controls for this purpose. The Management Board expects the Company's financial position to remain stable in the foreseeable future.
Assets
As of 30 June 2020, the Company's total assets increased again, by around 12% to EUR 88.8 million compared to 31 December 2019. The asset structure is characterised by fixed assets accounting for 49% of total assets (PY: 53%). Inventories and trade
receivables account for around 27% (PY: 26%), and
cash and cash-equivalents for around 20% (PY: 16%), of total assets.
The equity ratio of 46% (PY: 47%) demonstrates the group's solid financing structure.
At EUR 13.8 million, working capital (current assets less current liabilities) was higher than on the 31 December 2019 reporting date (EUR 8.1 million). The increase was due to seasonal factors.
Cash and cash-equivalents increased to EUR 17.6 mil- lion, mainly due to a capital increase out of authorised capital in June 2020.
Other provisions increased by EUR 0.2 million in the first half of the year.
Personnel
There were approximately 431 employees in the first half of 2020, which represents an increase of about 11% compared to 2019 (when there were approximately 388 employees). A total of around 46 employees of LemnaTec and Sensortherm were included for the first time for the entire first half of 2020. The increase in personnel expenses compared with the first half of 2019 was therefore mainly caused by volumes or consolidation effects.
Order backlog
A net order backlog of EUR 45.1 million (as of 31 Decem- ber 2019: EUR 34.2 million) was carried forward as of 1 July 2020. The m-u-t and tec5 subgroups held the major part (about EUR 36.8 million) of the order backlog. The increase of about EUR 10.9 million demonstrates the strategically robust orientation of the group.
B. Report on opportunities and risks
The aim of the group's risk management system is to identify potential risks at an early stage so as to avert
18 | Nynomic AG Half-Year Report
imminent damage to the Company and remove any threat to its existence by taking suitable measures.
The Company's risk management objectives and methods are lean in line with its size, flat organisational structure, number of employees and field of activity.
The Nynomic Group has extensive planning and control instruments at its disposal and these support the Management Board in identifying business risks at an early stage and in taking effective countermeasures.
A risk management system is used to monitor and control significant risks. This enables risks to be analysed at defined intervals, allowing any deviations in the Company's risk position to be reported to the Management Board.
The Management Board generally assumes that the Company can manage its risks and sees management of these risks as a strategic opportunity that should be taken.
C. Forecast report
The risk and opportunityreport has not changed significantly from the 2019 annual report. There are still no apparent risks that could endanger Nynomic Group's continued existence.
The Nynomic Group focuses on the Life Science, Clean Tech, and Green Tech segments throughout the group. Its core technology in process-integrated continuous onlinemeasurementtechnologyenablesittocontinually tap new market potential to supplement its existing applications.
Due to global trends such as demographic changes, constantly dwindling resources, and the consequent need to increase efficiency, these markets are growing disproportionately in the medium and long term and are generally free of cyclical fluctuations.
Capital expenditure
Significant direct capital expenditure on tangible and intangible fixed assets is neither planned nor needed.
The Management Board sees the implementation and integration of the new subsidiaries as a focal point, as part of its medium-term corporate strategy, for the group's development.
Acquisition of the remaining shares in Spectral Engines Oy and APOS GmbH will strengthen the Group's position under company law.
Competition
The market for the Nynomic Group's photonics applications is characterised by a large number of competing suppliers worldwide. In addition to a few large and globally active companies, there are many smaller companies that are regional in scope or that specialise in specific target groups and technologies. The Nynomic Group is pursuing a group-wide sales strategy and a general increase in sales activities.
Company forecast
The Nynomic Group is able to defy the global corona- virus pandemic because of its management's ability to adapt to constantly changing conditions, its employees' motivation and commitment, its apparently crisis-proof product portfolio, and its worldwide positioning in terms of markets, customers and subsidiaries.
Management believes that the Nynomic Group remains wellpositioned forthe medium and long term, even after the current macroeconomic slowdown.
Automation, use ofsmart and miniaturised measurement technology in new application areas, and connectivity with intelligent machines and products (Industry 4.0 and IoT)willcontinue to gain in importance as growth drivers.
Management considers that, with the Company's continued focus on sustainable customer products and potential and its consistent pursuit of its buy and build
19 | Nynomic AG Half-Year Report
strategy, it is reasonable to expect that it will achieve its medium-term growth target of EUR 100 million in sales with an EBIT margin of approximately 15%.
Management reconfirms its forecast for the entire 2020 financial year.
Management therefore expects, based on its current state of knowledge, consolidated sales of over EUR 70 million with an EBIT margin of over 10% for the entire 2020 financial year.
However, management cannot at this time predict the extent to which unforeseeable events in the wake of the coronavirus pandemic will affect business during the rest of the year.
D. Other disclosures
Research and development
The Nynomic Group usually conducts research in collaboration with cooperation partners. It also undertakes specific product development which is recorded as an expense. In the first half of 2020, research and development expenses within the Nynomic Group's segments amounted to approximately EUR 3.5 mil- lion. This demonstrates the group's focus as a leading supplier of series products and solutions in a technologically demanding market.
Wedel, 21 August 2020
Fabian Peters | Maik Müller |
Nynomic AG | Nynomic AG |
Management Board | Management Board |
20 | Nynomic AG Half-Year Report
Disclaimer
The facts and information contained in this report are up to date to the extent reasonably possible and are subject to future changes. Neither Nynomic AG nor any of its affiliates, members of its management or supervisory boards, managers, employees, consultants, or any other person makes any representations or warranties, express or implied, as to, and no reliance should be placed on, the accuracy or completeness of the information contained in this report.
Neither the Company nor any of its affiliates or any person mentioned above shall be liable in any way for any loss arising directly or indirectly from using this report. Although due care has been taken to ensure that the facts set out in this report are correct and the views expressed herein are fair and reasonable, this document is selective in nature. Where information and statistics are derived from external sources, such information and statistics should not be interpreted as having been correctly adopted or confirmed by the Company. This report contains forward-looking statements regarding the Company's business, financial performance and results and/or the industrial sector in which it operates. These statements are often characterised by the use of words such as "believes", "expects", "predicts", "intends", "projects", "plans", "estimates", "foresees", "anticipates", "targets" and similar expressions.
The forward-looking statements (such as assumptions, opinions and views of the Company or third parties that are made for information purposes) which are contained in this report are based on current plans, estimates, assumptions and projections and involve risks and uncertainties. Various factors may cause future earnings, performance or events to differ materially from those described in this report. The Company does not represent or warrant that the assumptions underlying any forward-looking statements are accurate and does not assume any responsibility for the future accuracy of the statements made in this report. The Company does not assume any obligation to update any forward-looking statements.
By accepting this report, you acknowledge that you alone are responsible for your assessment of the market and the Company's market position, and that you will conduct your own analysis of, and will be responsible for forming your own opinion about, the Company's potential future development. This report does not constitute a prospectus or a solicitation of an offer to purchase securities, nor does it constitute a marketing or sales effort or an offer, invitation or solicitation to subscribe for or purchase shares in the Company. Neither this report nor any part of this report should form the basis of, or be relied upon in connection with, any offer or commitment whatsoever.
References
Cover picture: iStock.com/VitalyyEdush
Table of contents: iStock.com/Edgie
Other pictures: Nynomic AG
21 | Nynomic AG Half-Year Report
Contact
Nynomic AG | Investor relations contact person |
Am Marienhof 2 | FISCHER RELATIONS |
22880 Wedel, Germany | Jochen Fischer |
T: +49 4103 - 9308 0 | Neuer Wall 50 |
F: +49 4103 - 9308 99 | 20354 Hamburg |
E-mail: info@nynomic.com | T: +49 40 - 822 186 380 |
E-mail: jfischer@nynomic.com |
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Nynomic AG published this content on 27 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 September 2020 11:09:03 UTC