Stabilus S A : Half-yearly financial report 2020/2021

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A INTERIM GROUP MANAGEMENT REPORT

B CONDENSED INTERIM CONSOLIDATED ­FINANCIAL STATEMENTS (UNAUDITED)

C ADDITIONAL INFORMATION

D INFORMATION RESOURCES

KEY FIGURES

	Three months ended March 31,				Six months ended March 31,
IN € MILLIONS	2021	2020	Change	% change	IN € MILLIONS	2021	2020
Revenue	244.0	221.0	23.0	10.4%	Revenue	479.4	452.3
EBIT	35.2	26.5	8.7	32.8%	EBIT	63.3	51.9
Adjusted EBIT	38.0	31.1	6.9	22.2%	Adjusted EBIT	70.3	61.1
Profit for the period	25.9	18.1	7.8	43.1%	Profit for the period	40.3	34.5
					Capital expenditure	(19.9)	(23.2)
EBIT as % of revenue	14.4%	12.0%			Free cash flow (FCF)	50.7	19.7
Adjusted EBIT as % of revenue	15.6%	14.1%			Adjusted FCF	50.7	20.8
Profit in % of revenue	10.6%	8.2%
					EBIT as % of revenue	13.2%	11.5%
					Adjusted EBIT as % of revenue	14.7%	13.5%
					Profit in % of revenue	8.4%	7.6%
					Capital expenditure as % of revenue	4.2%	5.1%
					FCF in % of revenue	10.6%	4.4%
					Adjusted FCF in % of revenue	10.6%	4.6%
					Net leverage ratio	0.9x	1.1x

Change % change

1. 6.0%

1. 22.0%

1. 15.1%

1. 16.8%

3.3(14.2)%

31.0> 100.0%

29.9> 100.0%

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CONTENTS

A

B

INTERIM GROUP MANAGEMENT REPORT	3
RESULTS OF OPERATIONS	4
DEVELOPMENT OF OPERATING SEGMENTS	10
FINANCIAL POSITION	12
LIQUIDITY	13
RISKS AND OPPORTUNITIES	16
SUBSEQUENT EVENTS	16
OUTLOOK	16

CONDENSED INTERIM CONSOLIDATED ­FINANCIAL
­STATEMENTS (UNAUDITED)	17
CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME	17
CONSOLIDATED STATEMENT OF FINANCIAL POSITION	18
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY	19
CONSOLIDATED STATEMENT OF CASH FLOWS	20
NOTES TO THE CONDENSED INTERIM
­CONSOLIDATED FINANCIAL STATEMENTS	21
RESPONSIBILITY STATEMENT	34

C

D

ADDITIONAL INFORMATION	35
FINANCIAL CALENDAR	35
DISCLAIMER	35

INFORMATION RESOURCES

36

S TA B I L U S I N T E R I M R E P O R T Q 2 F Y 2 0 2 1

A INTERIM GROUP MANAGEMENT REPORT

B CONDENSED INTERIM CONSOLIDATED ­FINANCIAL STATEMENTS (UNAUDITED)

C ADDITIONAL INFORMATION

D INFORMATION RESOURCES

HIGHLIGHTS H1 FY2021

Revenue increased due to the improved market environment

• Total Group´s revenue increased by €27.1 million or 6.0% to €479.4 million (organic growth rate + 11.1%)
• Revenue in APAC up by 37.5% (organic growth rate + 39.6%), EMEA up by 5.4% (organic growth rate + 6.4%) and Americas ­ down by (2.4)% (organic growth rate + 9.0%)
• Revenue in Automotive Powerise® up by 16.5% (organic growth ­ rate + 25.0%), Automotive Gas Spring business up by 6.4% (organic growth rate + 10.8%), and Industrial business down by (1.1)% (organic growth rate + 2.5%)

Revenue by operating segment (i.e. region, location of Stabilus company)

IN %

15

50

50% EMEA

35

35% AMERICAS

15% APAC

Key events

• Previous company outlook for revenue growth and adjusted EBIT margin raised
• • Revenue raised to a range of €900 million to €950 million for fiscal year 2021
  • Adjusted EBIT margin raised to a range of 13% to 15% for fiscal year 2021
• Stabilus issues its first promissory note loan (Schuldscheindarlehen) ­ in the total amount of €95.0 million
• Stabilus is planning to change its legal form into an Societas
  Europaea­ (SE) and subsequently to transfer its registered office from Luxembourg to Germany

Revenue by business unit

IN %

29

39	38
	38%	Industrial Business
	33%	Automotive Gas Spring
33	29%	Automotive Powerise

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2

A INTERIM GROUP MANAGEMENT REPORT

B CONDENSED INTERIM CONSOLIDATED ­FINANCIAL STATEMENTS (UNAUDITED)

C ADDITIONAL INFORMATION

D INFORMATION RESOURCES

INTERIM GROUP MANAGEMENT REPORT

for the three and six months ended March 31, 2021

Alternative Performance Measures (APMs) in the interim group management report for the first half of fiscal year 2021

In accordance with the European Securities and Markets Authority (ESMA) guidelines on Alternative Performance Measures, the Stabilus Group ­provides a definition, the rationale for use and a reconciliation of APMs used. The Group uses the following APMs: organic growth, adjusted EBIT, free cash flow (FCF), adjusted free cash flow and the net leverage ratio. The calculation of the net leverage ratio is based on net financial debt ­ and adjusted EBITDA, which are also considered APMs.

The APM organic growth is presented because we believe it aids in ­understanding our operating performance. Organic growth is defined as the reported revenue growth after removing the effects of acquisitions, divestitures and at constant foreign exchange rates. The effects resulting from constant foreign exchange rates are calculated as current year sales converted at current year exchange rates less current year sales converted at prior year exchange rates.

The definitions and required disclosures of all other APMs are provided in the relevant sections of this interim report.

Key events in the first half of fiscal year	2021
The Stabilus fiscal year 2021 (beginning on	October 1, 2020) is stillaffected­

by the COVID-19 pandemic. The impact on the macroeconomic environment and also on the global economy have a wide-ranging. The market ­environment in which we operate, i.e. automotive and industrial business, recover faster than expected. The positive development allows us to raise­ our guidance for fiscal year 2021 to a revenue of between €900 million to €950 million (previously: between €850 million to €900 million) and­ with an adjusted EBIT margin of between 13% and 15% (previously: ­between 12% and 13%), as announced on April 12, 2021. This is­ ­reflecting a further­ stabilizing global economy and recovery in the global automotive production. However, due to the COVID-19 pandemic an uncertainty ­remains.

Due to strong recovery of the economy and the Group's diversified product portfolio, the Stabilus Group's total revenue increased by €27.1 million or 6.0% to €479.4 million in the first half of fiscal year 2021. The positive global development is reflected in the positive development of the markets ­in which we operate. The Automotive Powerise® business increased by 16.5% to €137.8 million and the Automotive Gas Spring business increased by 6.4% to €159.0 million. However, our Industrial business recovered more slowly from the COVID-19 pandemic and is slightly ­below prior year by (1.1)% to €182.5 million.

On March 4, 2021, Stabilus issued its first promissory loan note (Schuld- scheindarlehen) with a total volume of €95.0 million, via its subsidiary Stabilus GmbH. The tranches of the promissory loan note with maturities of five and seven years bear variable interest rates (details in Note 12). The promissory note loan is part of our long-term financing strategy and grants us flexibility in the implementation of our growth plans. The ­financial stability of the Stabilus Group is very comfortable. Our net­ leverage ratio is at 0.9x compared to 1.2x at September 30, 2020 (we refer to net leverage ratio on page 15).

On March 8, 2021, the Stabilus S. A. announced its plan to change the legal form from Société Anonyme (S. A.) into an Societas Europaea (SE) and the subsequent transfer of the registered office from Luxembourg to Germany. The change of the legal form as well as the transfer of the registered office of the Company require the approval of the general meeting of the Company.

The intended change of the legal form into an European Company is due to the increasing international orientation of Stabilus, which has gained in importance following the acquisitions of companies in recent years. The relocation will simplify the Group's structures and thus reduce complexity, which will lead to cost savings and efficiency gains. At the same time, the transfer of the registered office means that in the future both the Group headquarters and the stock exchange listing of Stabilus will be located in Germany. This process is expected to be finalized in the first quarter of the calendar year 2022. Further information on the planned measures can be found at: www.stabilus.com/investors/se.

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