Rosenbauer International : Group – Financial Figures 2023

• Higher sales prices for vehicles delivered and growth in equipment, components and services push revenues up to € 1,064.5 million
• EBIT improved by € 48 million to € 37.5 million compared with the previous period
• Efficiency improvement measures should be intensified again this year
• Order intake reaches all-time high of € 1,450.3 million; order backlog well above consolidated revenues for the year at € 1,788.0
• Selective supply chain problems increase working capital and burden cash flow and equity
• Refinancing agreement closed with banks until November 2025, no dividend distribution for the 2023 financial year, capital increase in preparation
• Assuming further improvement in supply chains, revenues are expected to rise to around € 1.2 billion in 2024 accompanied by an EBIT margin of around 5%

GROUP KEY FIGURES	2022	2023	Chance
Revenues	€ million	972.2	1,064.5	+9.5%
EBIT	€ million	-10.6	37.5	-
Net profit/loss for the period	€ million	-22.3	1.2	-
Cash flow from operating activities	€ million	6.5	-82.8	-
Equity in % of total assets		19.1%	15.7%	-
Earnings per share	€	-3.6	-0.2	-
Dividend (proposal to AGM)	€ per share	-	-	-
Number of employees as of December 31		4,078	4,312	+5.7%
Order backlog as of December 31	€ million	1,469.7	1,788,0	+21.7%

In 2023, the Rosenbauer Group increased its revenues by 9.5% year-on-year to € 1,064.5 million (2022: € 972.2 million) despite selective supply chain disruptions. This development was due to higher sales prices for the vehicles delivered and growth in equipment, components and services. In addition to all sales regions, the Preventive Fire Protection segment recorded revenue growth. The operating turnaround has been achieved by measures to improve efficiency. The significantly higher gross profit together with considerably lower structural costs (R&D, sales and administrative expenses) resulted in EBIT of € 37.5 million (2022: € -10.6 million). The EBIT margin amounted to 3.5% (2022: -1.1%). The increase in total assets also lowered the equity ratio to 15.7% (2022: 19.1%), which required the conclusion of a new refinancing agreement with the Group's banks.

"2023 was the first year of a turnaround phase for the Rosenbauer Group, and we intend to make further significant progress this year. The return to profitability was one important aspect of this. Over the coming weeks and months, we will thoroughly analyze our offer-to-cash process in order to leverage additional potential for improving efficiency and results and sustainably improve our profitability. The strong demand for our products and the continued support of our financing partners mean that two of the key criteria for achieving this are in place. In the immediate future, we are aiming to strengthen our equity base by way of a capital increase," says Sebastian Wolf, CEO of Rosenbauer International AG.

Revenues and results of operations

The market volume of the global firefighting industry is likely to have grown in 2023, even in the face of a weaker macroeconomic environment. The reasons for this include continuing investment on the part of the public sector as well as the price adjustments made by all manufacturers. At the same time, international supply chains improved more slowly than anticipated. Additionally, the Rosenbauer Group was targeted by a cyber-attack in February 2023, which led to an interruption in production.

After deducting the cost of sales, the Rosenbauer Group's gross profit amounted to € 165.1 million in 2023 (2022: € 128.9 million), 128.9 million), and the gross profit margin went up to 15.5% (2022: 13.3%). R&D, sales and administration costs were reduced by around € 10 million. Subsequently EBIT amounted to € 37.5 million (2022: € -10.6 million).

The financial result was negative at € -30.5 million (2022: € -19.6 million) due to the higher level of debt and the sharp rise in interest rates. Earnings before taxes (EBT) amounted to € 7.0 million (2022: € -30.2 million).

The annual result after taxes was positive at € 1.2 million (2022: € -22.3 million).

"Although we have made clear progress at an operational level, there are still some challenges ahead of us. Our throughput times in vehicle production are too long and the corresponding trade working capital is too high. The dramatic rise in market interest rates in 2023 as part of the fight against inflation also led to significantly higher financing costs. In addition to a further improvement in our EBIT margin, reducing our Trade Woking Capital and our debt are therefore top priorities. We have not yet reached our goal, but we are well on our way," says Markus Richter, CFO of Rosenbauer International AG.

Demand for Rosenbauer firefighting technology was extremely strong once again in 2023, with the order intake reaching a new all-time high of € 1,450.3 million (2022: € 1,230.0 million). Three of the five segments recorded growth, whereas new orders in the Middle East & Africa area and in Preventive Fire Protection were down on the previous year. For example, the Europe area again won a tender from the state of Mecklenburg-Western Pomerania and reported a record order intake level for rescue platform vehicles in Germany in the year under review. The Asia-Pacific area has sold a further "Revolutionary Technology" to Fire Rescue Victoria, Australia, and will deliver 41 locally manufactured PANTHER to the Indian Air Force. The Americas area will build 16 pumper and 4 aerial rescue vehicles for Nashville. The Rosenbauer Group's order backlog of € 1,788.0 million as of December 31, 2023 (2022: € 1,469.7 million) was significantly higher than consolidated revenues for the year.

Financial position and net assets

Total assets accounted for in Rosenbauer's consolidated financial statements increased year-on-year and amounted to € 1,166.7 million as of December 31, 2023 (2022: € 973.6 million).

Equity amounted to € 183.1 million as of the end of the year (2022: € 186.2 million). Higher total assets drove the equity ratio down to 15.7% (2022: 19.1%).

At the end of 2023, trade working capital stood at € 472.7 million (2022: € 368.0 million). This increase is primarily due to increased inventories and greater customer receivables. Net cash flow from operating activities was negative at € -82.8 million in 2023 (2022: € 6.5 million).

The higher level of trade working capital meant that net debt increased to € 428.2 million (2022: € 319.9 million).

Dividend

Rosenbauer concluded a multilateral refinancing agreement with its lenders and promissory note holders in March of this year. The agreement, which has a term until November 2025, became necessary following the failure to comply with the previous financial covenants at year-end 2023.

In line with the conditions of the agreement and Rosenbauer's dividend policy, the Executive Board and Supervisory Board will propose to the upcoming Annual General Meeting that no dividend be paid for 2023. No dividend payment was made in 2022 on account of the negative annual result.

Outlook

According to the International Monetary Fund (IMF), the global economy will grow by 3.1% in 2024, a marginal improvement on the previous year. The most recent forecast adjustments focus primarily on the resilience of the US economy and some emerging and developing countries. At the same time, global inflation is set to fall significantly, which could lead to key interest rate cuts and an easing of financing conditions for companies.

Meanwhile, the firefighting industry's order books are full to bursting. While demand is expected to continue to increase in 2024, actual industry revenues will depend on the further stabilization of international supply chains. Many manufacturers have passed on the recent cost increases in the form of price adjustments, which should have a positive impact on their earnings quality.

Following a record level of incoming orders in 2023, the Rosenbauer Group has started the current financial year with a solid order backlog well in excess of one year's revenues. Assuming further stabilization in the supply chains, the Rosenbauer Group's Executive Board is forecasting revenues of around € 1.2 billion and an EBIT margin of around 5% for 2024.