RATIONAL : Statement on the first three months of 2021

Statement

on the first three months of 2021

re-imaginedre-invented

Landsberg am Lech, 5 May 2021

02	RATIONAL AG
Statement on the first three months of 2021

Key	RATIONAL AG: Encouraging	Statement of	Balance	Cash Flow	Statement of	Legal notice/	03
Figures	business performance	Comprehensive Income	Sheet	Statement	Changes in Equity	disclaimer
04	05	08	09	10	11	12

Key Figures	04
RATIONAL AG: Encouraging business performance	05
in March results in EBIT margin of 19% -
another investment push in Wittenheim and U.S.
Strong final month for sales revenues and new orders	05
in the first three months
Sales revenues in Asia grow by 27% compared to Q1 2020 -	05
the other regions are still down year on year
iVario growth of 6% - iCombi 9% down year on year	05
Investment push in Wittenheim and U.S.	06
56.0% gross margin in the first quarter of 2021	06
EBIT margin up 4.9 percentage points to 19.2%	06
13.5 million euros in operating cash flow in the first quarter	06
2020 dividend back to a payout ratio of around 70%	07
Slight decline in number of employees	07
Good first quarter provides slightly positive outlook	07
for the year as a whole
Statement of Comprehensive Income	08
Balance Sheet	09
Cash Flow Statement	10
Statement of Changes Equity	11
Legal notice/disclaimer	12

04	RATIONAL AG
Statement on the first three months of 2021

Key Figures

										in m EUR
				1st Quarter		1st Quarter		Change		Change
		2021	2020		absolute		in %
Sales revenues by region
Germany		19.1	21.7		-2.6		-12
Europe (excluding Germany)				71.9		85.3		-13.4		-16
North America				30.9		33.2		- 2.3		-7
Latin America		7.3	9.2		-1.9		-20
Asia				29.4		23.2		+6.2		+27
Rest of the world		9.1	8.7		+⁜0.5		+⁜6
Sales revenues abroad (in %)		89	88	+1		-
Sales revenues by product group
Combi-steamer				149.9		164.4		-14.5		-9
VarioCookingCenter/iVario		17.8	16.9		+⁜0.9	+6
Sales and earnings
Sales revenues		167.7	181.3		-13.6		-7
Cost of sales		73.8	79.8		-6.0		-8
Gross profit				93.9		101.5		- 7.6		-7
as a percentage of sales revenues		56.0	56.0	+0.0		-
Sales and service expenses				42.5		50.3		-7.8		- 15
Research and development expenses				11.4		11.9		-0.5		-4
General administration expenses		9.7	10.3		-0.6		-6
Earnings before financial result and taxes (EBIT)				32.2		26.0		+6.2		+24
as a percentage of sales revenues				19.2		14.3		+⁜4.9		-
Profit or loss after taxes		24.4	16.7	+7.7	+46
Balance sheet
Balance sheet total				689.7		680.0		+9.7		+1
Equity				558.4		534.3		+24.1		+5
Equity ratio (in %)		81.0	78.6	+2.4		-
Cash flow
Cash flow from operating activities		13.5		-22.3	+35.8	161
Cash-effective investments				4.0		7.5		-3.5		-47
Free cash flow1		9.5		-29.8	+39.4		-132
Number of employees as at 31 Mar		2,174	2,310		-136		-6
Key figures RATIONAL shares
Earnings per share (in EUR)				2.15		1.47		+0.68		+46
Quarter-end closing price2 (in EUR)		662,50	483.80	+178.70	+37
Market capitalisation2 3		7,532.6	5,500.8	+2,031.8	+37
1 Cash flow from operating activities less investments	2  Xetra	3 As at balance sheet date

Key	RATIONAL AG: Encouraging	Statement of	Balance	Cash Flow	Statement of	Legal notice/	05
Figures	business performance	Comprehensive Income	Sheet	Statement	Changes in Equity	disclaimer
04	05	08	09	10	11	12

RATIONAL AG: Encouraging business

performance­ in March results in EBIT margin of 19% - another investment push in ­Wittenheim and U.S.

Business performance in the first quarter of 2021:

• Sales revenues of 167.7 million euros, down 7% year on year
• Improvement in EBIT and EBIT margin to 32.2 million euros and 19.2% (2020: 14.3%) respectively
• Faster recovery possible than previously assumed
• Investments of around 55 million euros expected for 2021

Sales revenues in Asia grow by 27%

­compared to Q1 2020 - the other regions are still down year on year

Progress in combating the pandemic varies worldwide. Accordingly, performance in the market regions in the first quarter of 2021 also varied greatly. Asia, which was the first region to be affected by coronavirus in 2020, is displaying a trend towards getting back to normal: quarterly sales revenues here are 27% above the prior-year quarter. This positive development benefited additionally from the good street- and strong partner business. North America, where daily life is also rapidly getting back to normal thanks to an effective vaccination strategy, is now only down by 7%. In Europe (excluding Germany), sales revenues are 16% lower than in the previous year, and 12% lower in Germany. Latin America continues to be heavily affected by the coronavirus crisis with a drop in sales revenues of 20% compared to the same period last year.

Strong final month for sales revenues and new orders in the first three months

After a business performance at RATIONAL AG as expected in January (sales revenues down 13% on the same month of the previous year) and February (down 22%), sales revenues­

for the first quarter as a whole benefited from a sharp rise in sales figures in March (up 14%). In March, there was also a positive trend in new orders, which were down 21% in ­January, 23% in February and up 39% in March (2020:

down 32%) compared­ to the respective month of the ­previous year.

We see the growing number of customers no longer

suffering­ or suffering less from coronavirus restrictions, the catch-up effect of investment, the in some instances massive stimulus packages and, as the base effect, the fact that March 2020 was the first month to be affected by corona­ virus as reasons for this recovery in March. In the first ­quarter of 2021, the company generated sales revenues totalling 167.7 million euros and was therefore around 7% (currency-adjusted 5%) below the figure for the prior-year quarter (2020: 181.3 million euros).

iVario growth of 6% - iCombi 9% down year on year

Sales revenues in the iVario product group in the first three months of 2021 were 6% up year on year at 17.8 million euros (2020: 16.9 million euros). The product group benefited in the first three months from last year's market launch in China and North America. Sales revenues in Japan also performed well thanks to strong partner business.

Sales revenues in the iCombi product group in the first three months were 9% down year on year at 149.9 million euros (2020: 164.4 million euros).

The decline in sales revenues just for appliances was ­relatively low, which underscores the appeal of the new appliance generation. Due to the coronavirus-related restrictions on our customers' business activity, the drop in sales revenues from cleaning products and spare parts was somewhat steeper.