RATIONAL : Report on the first half year 2021.

Report

on the first half year 2021

re-imaginedre-invented

Landsberg am Lech, 5 August 2021

02	2021
	Report on the first half year

Key	Letter from the	Group Management	Financial Statements	Notes	Statement of	Legal Notice/	03
Figures	Executive Board	Report	RATIONAL Group	RATIONAL Group	Responsibility	Disclaimer
04	05	06	11	16	20	21

Key Figures	04
Letter from the Executive Board	05
Group Management Report	06
Economic Report	06
Outlook and Report on Opportunities and Risks	08
Financial Statements	11
Statement of Comprehensive Income	12
Balance Sheet	13
Cash Flow Statement	14
Statement of Changes in Equity	15
Notes	16
Statement of Responsibility	20
Legal Notice/Disclaimer	21

04	2021
	Report on the first half year

Key Figures

			2nd quarter		2nd quarter		Change		Change		1st half year		1st half year		Change		Change
	in m EUR	2021	2020		absolute		in %	2021	2020		absolute		in %
	Sales revenues by region
	Germany	28.9	17.6	+11.3	65	48.1	39.2	+8.9	+22
	Europe (excluding Germany)	97.2	46.3	+50.9	+110	169.0	131.6	+37.4	+28
	North America	36.5	22.1	+14.4	+66	67.4	55.3	+12.1	+22
	Latin America	7.4	2.5	+4.9	+192	14.8	11.8	+3.0	+26
	Asia	30.4	20.4	+10.0	+49	59.7	43.6	+16.1	+37
	Rest of the world	11.2	8.0	+3.2	+41	20.4	16.6	+3.8	+23
	Sales revenues generated abroad (in %)	86	85	+1		-	87	87	+0		-
	Sales revenues by product group
	iCombi	187.7	105.9	+81.8	+77	337.6	270.3	+67.3	+25
	iVario	23.9	10.9	+13.0	+120	41.7	27.7	+14.0	+51
	Sales revenues and earnings
	Sales revenues	211.6	116.8	+94.8	+81	379.3	298.0	+81.3	+27
	Cost of sales	91.8	55.3	+36.5	+66	165.6	135.1	+30.5	+23
	Gross profit	119.8	61.5	+58.3	+95	213.7	162.9	+50.8	+31
	as a percentage of sales revenues	56.6	52.6	+4.0		-	56.3	54.7	+1.6		-
	Sales and service expenses	46.1	39.2	6.9	+18	88.6	89.5		-0.9		-1
	Research and development expenses	11.7	9.9	+1.8	+19	23.1	21.8	+1.3	+6
	General administration expenses	9.7	9.1	+0.6	7	19.4	19.4	+0.0	+0
	Earnings before financial	52.2	1.6	+50.6	+3,163	84.4	27.6	+56.8	+206
	result and taxes (EBIT)
	as a percentage of sales revenues	24.7	1.4	23.3		-	22.3	9.2	+13.1		-
	Profit or loss after taxes	39.8	1.2	38.6	3,217	64.2	17.9	+46.3	+259
	Balance Sheet
	Balance sheet total									710.0	615.1	94.9	+15
	Equity									543.8	471.5	72.3	+15
	Equity ratio (in %)									76.6	76.7		-0.1		-
	Cash flow
	Cash flow from									76.5	17.2	+59.3	+345
	operating activities
	Cash-effective investments									10.9	13.5		-2.6		-20
	Free cash flow 1									65.6	3.6	+61.9	+1,673
	Number of employees as at 30 June									2,186	2,266		-80		-4
	Key figures for RATIONAL shares
	Earnings per share (in EUR)										5.64	1.57	+4.07		+259
	Quarter-end closing price2 (in EUR)									764.00	498.40	+265.60		+53
	Market capitalisation2 3									8,686.7	5,666.8	3,020	+53

1  Cash flow from operating activities less capital expenditures 2  Xetra

3  As of balance sheet date

Key	Letter from the	Group Management	Financial Statements	Notes	Statement of	Legal Notice/	05
Figures	Executive Board	Report	RATIONAL Group	RATIONAL Group	Responsibility	Disclaimer
04	05	06	11	16	20	21

Letter from the

Executive Board

Dear Shareholders,

Customers and Business Partners,

The developments of the past 18 months have literally been like a roller coaster ride. Following the sharp contraction ­triggered by the coronavirus in March last year, we ex­ perienced the low point of the crisis in the second quarter of 2020, in which the sales revenue volume almost halved. Despite further waves of the pandemic, sales revenues subsequently stabilised, down about 20% on pre-crisis levels.

A continuation of the crisis initially seemed likely in the first quarter of 2021, with new orders at a low level in January and February. The outlook was not promising at the time: vaccination campaigns not yet or barely off the ground, continuing lockdowns in a large number of countries and the beginnings of global supply shortages. Then in March, along with the rest of the industry, we experienced a relatively unexpected sharp revival in demand for our products, despite persistent restrictions for our customers and continuing uncertainty. This positive trend has since continued, and in June we achieved the highest sales revenue and order volume recorded in a single month in the company's history.

In our view, a key factor of this encouraging trend is the ­extensive use our customers have made of government

support­ measures for investments in modern IoT-capable and resource-efficient cooking appliances such as ours. In addition, once the most difficult phase of the coronavirus

­crisis had passed, customers completed a large number of new-build or refurbishment projects. Not least, in some ­cases dealers ordered appliances for stock in order to prevent potential supply shortages.

Global supply chains are severely stretched in almost all ­industries. The difficult supply situation for some primary products is extending our traditionally very short delivery times, in some cases even significantly. This means that we are entering the second half of the year with a level of orders on hand that is unusually high for our business. We expect that delayed investments being made and orders brought

forward in the first six months may lead to a slow-down in the new orders trend in the second half of the year.

We cannot quantify the extent the effects described above will have in each case. Given the success of recent months, we are confident about the remainder of the fiscal year and anticipate that the market situation will continue to ease. Looking at the second quarter of 2021 in isolation, our sales revenues and earnings are up on the corresponding pre-crisis quarter of 2019, and this generally makes us very optimistic about the future. However, the positive one-off effects of the past few months, the continuing risks arising from the pandemic and the economic uncertainty remind us that we still need to be cautious.

Key risks that may seriously threaten the continued recovery include fresh coronavirus restrictions on our customers from the autumn of 2021 onwards and production delays due to limited availability of primary products, which may result in significant increases in delivery times and the postponement of revenue recognition.

We are pleased that our customers are at last allowed to ­welcome and cater for guests again, that their business prospects are on a steady upward trend and hope that we can all return to calmer waters. And we are also pleased, of course, that we have the opportunity to support our customers in their ventures and wish them every success for the times ahead. I also wish you, dear readers, all the best and, most of all, that you stay healthy!

Dr Peter Stadelmann

CEO of RATIONAL AG