April 12, 2016

Ad hoc announcement

Results 2015

  • Record revenues of € 865.4 million (+6%) due to growth on the US market
  • EBIT increased by 5% to € 50.6 million despite non-recurring expenses
  • Proposed dividend of € 1.5 per share (2014: € 1.2 per share) 
  • Outlook for 2016: Further increase in revenues and earnings targeted
Key data2014*) 2015Change %
Revenuesin € million813.8865.4 6%
EBITin € million48.450.65%
Net profit for the periodin € million36.736.8-%
Cash flow from operating activitiesin € million(37.1)6.5-
Equityl in % of total assets34.2%37.0%-
Investmentsin € million51.222.1(57%)
Earnings per share4.03.3(18%)
Dividend (Proposal to the AGM)€/share1.21.525%
Employees as of December 312,9423,0865%
Order backlog as of December 31in € million693.0797.515%

*) The 2014 figures for revenues and backlog were restated in accordance with IAS 8.

Rosenbauer further consolidated its leading market position in 2015. The Group continued its growth and set new records for revenues and earnings. The revenues of the Rosenbauer Group reached a record level of € 865.4 million in the 2015 financial year (2014: € 813.8 million). This marks an increase of 6% as against the previous year. The increase is due essentially to the good economic situation in North America and the strong US dollar. However, Rosenbauer also increased revenues in the Middle East, although some countries showed more reluctance to invest because of the low price of oil.

At € 50.6 million, EBIT in the 2015 financial year was up 5% on the previous year (2014: € 48.4 million), while the EBIT margin was largely unchanged at 5.8%.

E
ven though consolidated earnings developed positively thanks to US business, 2015 was also heavily affected by the expenses for appearing at the world’s biggest industry trade fair and higher vehicle delivery costs. Earnings were also squeezed by fluctuations in capacity utilization in some areas of production during the year, delays in delivery at the end of the year and up-front costs for tapping new markets. Measures were therefore taken in the reporting period to accelerate ongoing market cultivation activities, to enhance efficiency and to reduce costs.

A considerable share of earnings growth was attributable to the US-American segment, where business was expanded further and the Group also benefited from the development of the US dollar. The optimization of chassis production at Rosenbauer Motors contributed to the improvement in earnings as well. The capitalization of development costs of € 4.4 million (2014: € 3.4 million) also had a positive effect on earnings.

Financial position and capital structure
For reasons specific to the industry, the structure of the statement of financial position as of the end of the year is characterized by high working capital. This results from the comparatively long turnaround times for firefighting vehicles, which are always custom-built. Despite the enormous growth of recent years, the financial situation of the Rosenbauer Group is still solid. Total assets rose by 6% as against the previous year and amounted to € 611.8 million as of December 31, 2015 (2014: € 579.9 million).

Working capital amounted to € 178.3 million as of the end of the year (2014: € 137.7 million). The year-on-year increase is 29%. The rise as of the end of the year is due predominantly to higher trade receivables in the Arab and Asian regions as the average days sales outstanding was higher. Construction contracts were also up as a result of the high order volume in processing.

In the past financial year equity was increased again by 14% to € 226.4 million (2014: € 198.3 million). Despite the immense growth and the resulting rise in total assets, the equity ratio increased to the long-term target of above 35% at 37.0% (2014: 34.2%).

The figures in the Rosenbauer Group’s statement of financial position reflect the current growth on the one hand and also the structure of business in the firefighting industry on the other. Accordingly, the Group’s net debt (the net amount of interest-bearing liabilities less cash and cash equivalents and securities) rose to € 191.3 million in the past year (2014: € 154.2 million). The gearing ratio climbed to 84.4% (2014: 77.7%).

Sustainable dividend policy
Rosenbauer follows a growth-oriented and sustainable dividend policy that is consistent with the company’s performance. To mark the 150th anniversary of the company, the Executive Board and the Supervisory Board are proposing dividend of € 1.5 (2014: € 1.2) per share at the Annual General Meeting. Accordingly, the distribution volume for 6.8 million no-par-value shares will be € 10.2 million (2014: € 8.2 million). Based on the closing price of € 66.6, this corresponds to a dividend yield of 2.3% (2014: 1.7%).

Outlook
The firefighting industry will face a range of different challenges in 2016 as well. Trends in demand should remain stable on the North American market. The industry in Europe will probably only see a slight upturn if at all. Demand from Asia and the Middle East could be slowed by a deteriorating general economic situation.

How the fire equipment markets develop will depend on the availability of public-sector funding. On some developed markets, continuing budget consolidation efforts mean that demand for fire service equipment will remain muted. In several emerging markets, the low price of oil and political unrest could lead to investments in firefighting technology being postponed.

Generally speaking, the countries currently investing in firefighting technology and equipment are mainly those where there is continuous procurement or elevated security requirements following natural or terrorist disasters. Furthermore, the global increase in air traffic and the use of larger aircraft are ensuring consistently strong demand for specialty vehicles. 

Despite the somewhat modest growth prospects and even if political unrest and the low price of oil affect procurement in some countries, a stable development in overall demand is expected in the fire equipment sector for 2016. Given the solid incoming orders in recent months and the production capacity available, management is assuming that consolidated revenues can increase further in 2016.

The forecast growth in sales and revenues is expected to have a positive impact on earnings in 2016, even though the development of Rosenbauer’s key markets is becoming more difficult to forecast. Thanks to the successful launch of new products, the high order backlog and the growing effect of the measures introduced to enhance efficiency and reduce costs, management is anticipating further increase in revenues and earnings for the 2016 financial year.

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