Report on the Results of Rába Plc. in Q1-Q3 of 2020
Unaudited. consolidated quarterly report
according to the International Financial Reporting Standards (IFRS)
Company: | RÁBA Automotive Holding Plc. |
Company address: | H-9027 Győr. Martin u. 1. |
Sector: | Machine industry |
Period: | Q1-Q3 of 2020 |
Phone: | +36 96 624460 |
E-mail: | adam.steszli@raba.hu |
Investor's contact person: | Ádám Steszli |
MANAGEMENT REPORT
MAIN RESULTS OF THE COMPANY
- Following the general decline in the economy characteristic for Q1 of 2020 and the shock in demand in Q2, due to the COVID-19 pandemic, Q3 was characterised by a partial pickup in business demand. On a quarterly basis, economic activity was in the range of the levels characteristic for the base period, the demand for the aggregate period, though, was even so significantly lower. Besides drastically declining production and sales volumes, future economic prospects remain uncertain, promising no significant market improvement in the short- and medium-term. Due to the global nature of the economic recession, the figures for Q1-Q3 of 2020 reflected the drastic drop in demand in almost all key segments. A significant decline could be felt in all key markets of the Rába Group. In terms of production costs, there are no signs of easing of the wage pressure, which has been manifest for years, and the continuously rising energy prices have reached a 10-year record high in Q3 of 2020. In terms of sales, Q3 of 2020 was marked by a 16.9 per cent decline in group-level turnover, resulting in an aggregate sales decline for the period Q1-Q3 of 2020 of 26.8 per cent compared to the base period. The sales revenue in Q1-Q3 of 2020 amounted to HUF 27.8 billion, which is HUF 10.1 billion lower than during the previous year. Sales revenues of the business units suggest a uniform and drastic decline in Q1-Q3 of 2020 in all business units. The sales of the Axle business unit, the one with the largest sales, declined by 15.1 per cent, the Components business unit registered a decline by 31.7 per cent, whereas the Vehicle business unit declined by 50.9 per cent compared to the base period. In the case of the Vehicle business unit, the substantial decline in sales was due, in addition to the decline in export activities, to the lack of defence sales. In terms of the exchange rate environment, an increase was manifest in Q1-Q3 of 2020, in the exchange rates of both the USD representing a lesser portion in the company's foreign exchange turnover and in the EUR, representing a more substantial portion of FX sales. The exchange rates of both the USD and of the EUR increased by 7.7 per cent compared to the levels of the base period of one year earlier.
- A factor with a significant impact on the business of the group is that the orders due in 2020 under the new framework agreement concluded with the Ministry of Defence in 2018, have not materialised, thus the quarterly financial results of Rába Vehicle Ltd. and of the group cannot be compared.
-
The response of the management to the drastic decline in orders in consequence of the crisis and to the increasing uncertainties regarding the future, has been the adoption of the strategy of forward-looking and flexible adjustment. Thus the development-oriented strategy aims not only to bridge short-term difficulties but also to tackle medium- and long-term challenges.
The primary element of the crisis-management strategy is ensuring that in spite of difficulties in the supply change, strategic partners receive their orders on a continuous basis, upon timely delivery and in good quality. According to the vision of the company, outstanding delivery of customer demands under all circumstances is the basis for a long-term strategic partnership. The management of the company is intent upon meeting this objective under all circumstances.
RÁBA Plc's consolidated report for Q1-Q3 of 2020 in acc ordance with the IFRS
The second pillar of the crisis strategy is the reorganisation aimed at reducing administration and general overhead costs and improving the efficiency of administration. This set of measures includes the modernisation of the group's organisational structure, the efficiency improvement of the human resource management upon retaining expertise, as well as the optimisation of procurement channels and increasing integrity, upon extremely stringent cost control.
At the same time, management is determined to increase digitalisation ensuring long-term competitiveness, which is the third pillar of the development-oriented strategy. Management views forward-looking investments increasing automation as eminently important in the fields of both production and administration. The necessary financing is to be secured through the stable financial background resulting from the successful operation in recent years, as well as through external, central budget sources.
Volatility in demand may lead to fluctuating capacity utilisation and to declining efficiency. Thus, the flexible adaptation of production to meet changing demands and retaining the turnaround speed of working capital have been in the focus of crisis strategy.
Besides transforming and developing existing processes, management continues to explore acquisition opportunities, thus aiming to achieve organic growth by expanding the product portfolio and broadening resources.
- In Q3 of 2020, upon the impacts of external circumstances, including the decline in sales turnover, shrinking material prices, increasing exchange rates, as well as the impact of high wage and energy prices exerting substantial pressure on the cost side, the effects of the crisis management measures implemented by the Company are already manifest. As a result, the gross margin reached 20.7 per cent, upon an increase by 3.7 percentage points. Owing to the considerable improvement in margins, in spite of the significant decline in sales, gross profit increased by HUF 27 million compared to the base period. In Q1-Q3 of 2020 gross margin reached 18.5 per cent, owing to the improvement of margins in Q3, the gross profit amounted to HUF 5.1 billion.
- The balance of other revenues and expenditures amounted to HUF 672 million in losses during the review period, against the loss of HUF 61 million during the same period of the previous year. The profit of other activities during the review period includes an unplanned write-off in the amount of HUF 296 million due to the unsustainability in accounting terms of the Ministry of Defence capacities.
- As a result of the development-oriented crisis management strategy, in spite of the decline in sales and the cyclical low output of Q3, there is positive operating profit at group level. The operating profit of HUF 65 million achieved in the quarter is HUF 101 million more than the operating profit in Q3 of 2019. In terms of the aggregate period, the drastic effects of the COVID- 19 pandemic are present in the operating profit too: in Q1-Q3 of 2020, the operating result was a loss of HUF 1,037 million. The decline in operating profit was manifest in all business divisions: the contribution of the Axle, Components and Vehicle business units to the group-level operating profit was HUF 286 million, HUF 447 million and HUF 431 million in losses, respectively.
- In terms of cash generating efficiency, the positive impacts of the crisis management measures can be detected: in spite of the low capacity utilisation and the pressure exerted by the wage and energy cost elements, the Company managed to improve its cash generating efficiency by 3.1 percentage points. The Company generated a group-level EBITDA of HUF 651 with an EBITDA efficiency ratio of 7.6 per cent, which is HUF 181 million more than the profit in Q3 of 2019 with a 7.6 per cent EBITDA production efficiency ratio. With the result achieved in Q3, the EBITDA-level profit of the Company in Q1-Q3 of 2020 amounted to HUF 702 million. The contribution of the Axle Business Unit to the group-level EBITDA during the review period was HUF 634 million in profits, whereas the Components and the Vehicle Business Units generated losses of HUF 94 million and HUF 177 million respectively.
- The financial loss in Q1-Q3 of 2020 amounted to HUF 904 million, compared to the loss of HUF 482 million generated during the same period of the previous year. The financial performance was influenced by the realised exchange rate loss of HUF 833 million and the net interest burden of HUF 63 million.
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RÁBA Plc's consolidated report for Q1-Q3 of 2020 in acc ordance with the IFRS
- The total aggregate income and profit for Q1-Q3 of 2020 amounted to HUF 2,169 million in losses.
- The net borrowing in Q1-Q3 of 2020 shows an increase by HUF 2.7 million compared to the end of last year and a decline by HUF 748 million compared to the same period of last year and amounted to HUF 10.7 billion. The substantial difference between the two points of reference is due on the one hand to the cyclicality within the year of the financing needs of the operating activities. Of the principal factors influencing the level of net borrowing, mention must be made of the cash-generation lower than previously, the working capital declining by HUF 699 million compared to the base period of 2019, as well as of the capital expenditures implemented in pursuit of the modernisation strategy. The revaluation, due to exchange rate fluctuation, of loans, worth HUF 1,006 million not involving cash movements, also contributed to the increase in net borrowing compared to the year-end level.
- The shareholder's equity decreased by 10.2 per cent compared to the same period of the previous year. The shareholder's equity per share reached HUF 1.412/share.
Q1-Q3 | Q1-Q3 2020 | Change | Q3 2019 | Q3 2020 | Change | |||||||||||||||
thousand HUF | 2019 | |||||||||||||||||||
Sales revenue | 37 922 473 | 27 763 839 | -26.8% | 10 284 089 | 8 549 847 | -16.9% | ||||||||||||||
Gross profit | 7 181 258 | 5 140 851 | -28.4% | 1 711 542 | 1 738 547 | 1.6% | ||||||||||||||
Gross margin | 18.9% | 18.5% | -0.4%p | 16.6% | 20,3% | 3.7%p | ||||||||||||||
EBITDA | 2 746 558 | 701 798 | -74.4% | 471 040 | 652 713 | 38.6% | ||||||||||||||
EBITDA | 7.2% | 2.5% | -4.7%p | 4.6% | 7,6% | 3.1%p | ||||||||||||||
Operating profit | 1 192 172 | -1 037 164 | -187.0% | -36 532 | 64 905 | 277.7% | ||||||||||||||
Net financial profit/loss | -481 508 | -903 624 | -87.7% | -388 070 | -252 309 | 35.0% | ||||||||||||||
Profit after tax for the | 425 356 | -2 168 559 | -609.8% | -429 034 | -267 273 | 37.7% | ||||||||||||||
current year | ||||||||||||||||||||
Total comprehensive | 425 356 | -2 168 559 | -609.8% | -429 034 | -267 273 | 37.7% | ||||||||||||||
income | ||||||||||||||||||||
GOAL, STRATEGY OF THE BUSINESS
"Thanks to the corporate measures taken and consistently implemented in time to deal with the crisis, Rába Group closed the third quarter with th e second best result of the last five years, a profit at the operating level, despite the drastic decrease in turnover. In addition to urgently restoring the company's operations, our primary goal was to fully meet the rapidly changing demands of our customers. Customer focus is one of the defining pillars of Rába's strategy, which helped stabilize sales revenue and create further growth. It is important to emphasize that in addition to cost reduction, we continued our strategic product and technology development, digitization and automation programs, based on which the company can be the winner of the opportunities offered by the shifting of the supply chains in the wake of the crisis. We expect that in the remainder of the year, under normal operation, there is a good chance for us to meet our targets set at the low point of the crisis: the restoration of the positive and stable operating cash flow and the profitable operations in the second half of the year." - said István Pintér, Chairman-CEO of RÁBA Automotive Holding Plc.
EXTERNAL ENVIRONMENT OF THE BUSINESS
- While market figures for Q1 2020 reflect primarily the decline in the overall economic environment and activities in Q2 are clearly impacted by the shock in demand due to the COVID-19 pandemic, Q3 was characterised by the partial recovery of business demand. On the whole, the activity in Q3 was close to the level of the previous year. Uncertainties remain substantial in terms of future economic market prospects. According to analysts and business players, the coming quarter will determine whether the recovery will be consistent or a "W" pattern can be observed in the economic trend. The latter scenario projects volatile changes in demand for the short- and medium-term, without any substantial increase in demand.
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RÁBA Plc's consolidated report for Q1-Q3 of 2020 in acc ordance with the IFRS
- In Europe, the heavy truck market saw a substantial increase in demand in Q3 compared to Q2, the level, though, still remains 6 per cent below that of a year earlier. Registration figures although showed a slight increase during Q1-Q3, still remain below last year's level by 35.7 per cent. The North American heavy truck market also picked up after the shock of Q2. All in all, there is a 36.7 per cent decline in months 1-9 of 2020 compared to the levels of the previous year. In terms of the agricultural segment, the demand for Rába produ cts did not change substantially during Q3, thus the demand clearly declined compared to the level of the previous year. The Russian truck and bus market was also characterised by a decline in demand during the review period. Truck production volume declined by 16.5 per cent, while the demand for buses declined by 9.0 per cent. The European passenger vehicle market showed a significant decrease in demand during Q1-Q3 of 2020, new vehicle registrations remained 29.3 per cent below the value for the base period of a year earlier.
- A factor with a significant impact on the business of the group is that the orders due in 2020 under the new framework agreement concluded with the Ministry of Defence in 2018, have not materialised, thus the quarterly financial results of Rába Vehicle Ltd. and of the group cannot be compared.
- The significant decline in demand impacted the entire supply chain: steel prices in Q3 of 2020 were 12.9 per cent, in Q1-Q3 of 2020 were 13.5 per cent lower than during the based period.
- Energy prices during Q1 of 2020 reached a record high for the past 10 years, which was then surpassed in Q3 through further price increase. The record level average price put record high energy market pressure on the cost side of the company's operation. In Q3 of 2020, the average energy price increase reached 20.3 per cent, which meant that overall, in Q1-Q3 of 2020, the average energy price level exceeded the level of the base period by 13.4 per cent.
- With regard to the exchange rate environment, an increase occurred in the case of both the USD, representing a lesser proportion in the FX turnover of the company and the EUR, representing more substantial weight in the FX turnover in Q1-Q3 of 2020. The average exchange rate of both currencies increased by 7.7 per cent compared to the base period.1
Q1-Q3 | Q1-Q3 | Change | Q3 2019 | Q3 2020 | Change | |||||||||||||
2019 | 2020 | |||||||||||||||||
EURHUF - average | 323.2 | 348.0 | 7.7% | 328.1 | 353.6 | 7.8% | ||||||||||||
EURHUF - end of period | 334.7 | 364.7 | 9.0% | 334.7 | 364.7 | 9.0% | ||||||||||||
USDHUF - average | 287.6 | 309.7 | 7.7% | 295.1 | 302.8 | 2.6% | ||||||||||||
USDHUF - end of period | 306.1 | 311.4 | 1.7% | 306.1 | 311.4 | 1.7% | ||||||||||||
Changes in raw material prices* | 122% | 106% | -13.5% | 119% | 104% | -12.9% | ||||||||||||
Changes in energy prices** | 185% | 210% | 13.4% | 177% | 213% | 20.3% |
*Rába indices -own calculation - base: 2007. Q1; av erage values for the period
**Rába indices - own calculation - base: Dec. 2004. Average values for the period
SUMMARY OF RESULTS DURING THE REVIEW PERIOD
Rába Axle Ltd.
The sales revenue of Rába Axle Ltd. in Q1-Q3 of 202 0 amounted to HUF 15.0 billion compared to HUF 17.7 billion achieved during the base period of 2019. This corresponds to a decrease of 15.1 per cent.
On the American market the sales revenue in the reporting period was USD 7.0 million, compared to the USD 9.4 million in Q1-Q3 of 2019. This corresponds to a decrease of 25.5 per cent.
On the EU market Rába Axle Ltd.'s sales figures in HUF terms decreas ed by 14.5 per cent, amounting to HUF 10.6 billion, compared to HUF 12.4 billion during the base period.
European exports remained below the level of the same period a year earlier by 25.3 per cent in Q1-Q3 of 2020 amounting to EUR 22.0 million, compared to HUF 29.5 million in Q1-Q3 of 2019.
1 The average exchange rates were calculated based on the official FX exchange rates of the MNB. Source: http://www.mnb.hu/arfolyam-lekerdezes
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RÁBA Plc's consolidated report for Q1-Q3 of 2020 in acc ordance with the IFRS
Domestic sales before consolidation amounted to HUF 2,917 million which represents an increase by 1.7 per cent compared to the HUF 2,869 million of the base period.
On the CIS and East-European markets the export sales revenues achieved by Rába Axle Ltd. in Q1-Q3 of 2020 were 100.0 per cent higher than the base period in 2019, increasing from EUR 1.9 million to EUR 3.8 million.
In the other markets. the sales revenue during the reporting period amounted to EUR 2.8 million, which was 55.6 per cent below the EUR 6.3 million turnover of the 2019 base period.
The operating result of the Company in Q1-Q3 of 2020 was a loss of HUF 286 million, compared to HUF 333 million in profits during the same period of the previous year.
At EBITDA level, the operating profit of the Axle business unit was HUF 634 million compared to HUF 1,148 million registered a year earlier.
Q1-Q3 | Q1-Q3 | Change | Q3 2019 | Q3 2020 | Change | |||||||||||||||
million HUF | 2019 | 2020 | ||||||||||||||||||
America | 2 689 | 2 197 | -18.3% | 707 | 466 | -34.1% | ||||||||||||||
EU - export | 9 520 | 7 650 | -19.6% | 2 601 | 2 631 | 1.2% | ||||||||||||||
EU - domestic | 2 869 | 2 917 | 1.7% | 876 | 762 | -13.0% | ||||||||||||||
CIS | 614 | 1 307 | 112.9% | 303 | 168 | -44.6% | ||||||||||||||
Other | 2 027 | 970 | -52.1% | 718 | 281 | -60.9% | ||||||||||||||
Total sales revenue | 17 720 | 15 040 | -15.1% | 5 206 | 4 308 | -17.2% | ||||||||||||||
EBITDA | 1 148 | 634 | -44.8% | 342 | 341 | -0.3% | ||||||||||||||
Operating profit | 333 | -286 | -185.9% | 93 | 27 | -71.0% |
Rába Automotive Components Ltd.
The sales revenue of Rába Automotive Components Ltd . amounted to HUF 8.7 billion in Q1-Q3 of 2020, which is a decrease of 31.7 per cent compared to the base period.
Rába Automotive Components Ltd. generates a conside rable portion of its sales on the European market.
European exports during Q1-Q3 of 2020 amounted to EUR 12.1 million, which represents a decrease of 32.8 per cent compared to the EUR 18.0 million of the base period of 2019.
Domestic sales before consolidation amounted to HUF 4,455 million during the reporting period, which corresponds to a decrease by 35.7 per cent compared to the sales revenue of HUF 6,924 million during Q1-Q3 of 2019.
The Business Unit generated losses of HUF 447 million at operating level during the reporting period compared to a profit of HUF 472 million in Q1-Q3 of 2019.
On the level of EBITDA, the loss of the Components business unit was HUF 94 million during the period, compared to the profit of HUF 844 million of the previous year.
Q1-Q3 | Q1-Q3 | Change | Q3 2019 | Q3 2020 | Change | |||||||||||||||
million HUF | 2019 | 2020 | ||||||||||||||||||
EU - export | 5 804 | 4 219 | -27.3% | 1 682 | 1 424 | -15.3% | ||||||||||||||
EU - domestic | 6 924 | 4 455 | -35.7% | 1 745 | 1 598 | -8.4% | ||||||||||||||
Other | 0 | 15 | 0.0% | 0 | 1 | 0.0% | ||||||||||||||
Total sales revenue | 12 728 | 8 689 | -31.7% | 3 427 | 3 024 | -11.8% | ||||||||||||||
EBITDA | 844 | -94 | -111.1% | 239 | 50 | -79.1% | ||||||||||||||
Operating profit | 472 | -447 | -194.7% | 109 | -67 | -161.5% | ||||||||||||||
Rába Vehicle Ltd.
The sales revenue of Rába Vehicle Ltd. in Q1-Q3 of 2020 was below the figure of the base period by 50.9 per cent and decreased from HUF 8.8 billion to HUF 4.3 billion.
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RÁBA Plc's consolidated report for Q1-Q3 of 2020 in acc ordance with the IFRS
A significant portion of the sales revenue of Rába Vehicle Ltd. is generated on the European market. European exports were 28.8 per cent below than the level of the base period, thus declining from EUR 13.9 million to EUR 9.9 million.
Domestic sales before consolidation amounted to HUF 884 million in Q1-Q3 of 2020, compared to HUF 4,326 million during the base period, representing a decrease by 79.6 per cent.
The operating losses amounted to HUF 431 million during the reporting period compared to the profit of HUF 504 million during the base period last year.
On the level of EBITDA, in the reporting period, the Vehicle Business Unit registered losses of HUF 177 million compared to the profit of HUF 704 million in Q1-Q3 of 2019.
Q1-Q3 | Q1-Q3 | Change | Q3 2019 | Q3 2020 | Change | |||||||||||||||
million HUF | 2019 | 2020 | ||||||||||||||||||
EU - export | 4 477 | 3 441 | -23.1% | 1 313 | 931 | -29.1% | ||||||||||||||
EU - domestic | 4 326 | 884 | -79.6% | 670 | 300 | -55.2% | ||||||||||||||
Total sales revenue | 8 803 | 4 325 | -50.9% | 1 983 | 1 230 | -38.0% | ||||||||||||||
EBITDA | 704 | -177 | -125.1% | -56 | 149 | 366.1% | ||||||||||||||
Operating profit | 504 | -431 | -185.5% | -129 | 65 | 150.4% | ||||||||||||||
The Rába Group
The consolidated sales revenue of the Rába Group in Q1-Q3 of 2020 amounted to HUF 27.8 billion, which is a decline by 26.8 per cent compared to the figure of HUF 37.9 billion reported for the base period Q1-Q3 of 2019.
The operating loss of the group during the current period amounted to HUF 1,037 million, compared to HUF 1,192 million in profits during the same period a year earlier.
During the reporting period, the financial result was a loss of HUF 904 million, which includes, among others, a net interest payment of HUF 63 million, as well as exchange rate losses of HUF 833 million.
Profits from the purchase of investment amounted to HUF 11.9 million during Q1-Q3 of 2020, which includes the adjustment for the 24.9 per cent share in Rekard.
Based on the above, the Rába Group generated net lo sses of HUF 2,169 million in Q1-Q3 of 2020, compared to a profit of HUF 425 million during the same period of the previous year.
On the level of EBITDA. the group registered profits of HUF 702 million in Q1-Q3 of 2020, against last year's figure of HUF 2,747 million.
The Rába Group - other data and events pertaining to the business activity
Sales revenue by business unit
Sales revenue | Axle | Components | Vehicles | Rába Group | |||||||
(HUF million) | consolidated | ||||||||||
2019 Q1 | 6 510 | 4 670 | 4 115 | 14 725 | |||||||
2019 Q2 | 6 004 | 4 632 | 2 706 | 12 914 | |||||||
2019 Q3 | 5 206 | 3 427 | 1 983 | 10 284 | |||||||
2019 Q4 | 6 069 | 3 746 | 2 323 | 11 859 | |||||||
2020 Q1 | 6 593 | 3 762 | 1 764 | 11 856 | |||||||
2020 Q2 | 4 140 | 1 903 | 1 331 | 7 358 | |||||||
2020 Q3 | 4 308 | 3 024 | 1 230 | 8 550 |
Breakdown of the sales revenues for Q1-Q3 of 2020
HUF million | America | EU | CIS | Other | Total | ||||||||||||
Total | export | domestic | |||||||||||||||
Axle | 2 197 | 10 567 | 7 650 | 2 917 | 1 307 | 970 | 15 040 | ||||||||||
Components | 15 | 8 674 | 4 219 | 4 455 | 0 | 0 | 8 689 | ||||||||||
Vehicle | 0 | 4 325 | 3 441 | 884 | 0 | 0 | 4 325 | ||||||||||
Consolidated | 2 212 | 23 275 | 15 315 | 7 960 | 1 307 | 970 | 27 764 |
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RÁBA Plc's consolidated report for Q1-Q3 of 2020 in acc ordance with the IFRS
Operating profit of group companies
Operating profit
2019. | 2020. | |||||||||||||||
Q1 | Q2 | Q3 | Q4 | Year | Q1 | Q2 | Q3 | |||||||||
Axle | 220 | 20 | 93 | 34 | 367 | 116 | -429 | 27 | ||||||||
Components | 178 | 185 | 109 | 192 | 664 | 82 | -462 | -67 | ||||||||
Vehicle | 540 | 93 | -129 | -44 | 460 | -397 | -99 | 65 | ||||||||
Other | -8 | 1 | -110 | -34 | -151 | 79 | 8 | 40 | ||||||||
Total | 930 | 299 | -37 | 148 | 1 340 | -120 | -982 | 65 | ||||||||
PK2. Companies involved in the consolidation | ||||||||||||||||
Company | Share/Issue capital | Ownership | Voting | Classification 2 | ||||||||||||
in HUF thousand | ratio (%) | ratio 1 | ||||||||||||||
Rába Axle Ltd. | 9,762,800 | 100.00 | 100.00 | S | ||||||||||||
Rába Automotive Components Ltd. | 300,000 | 100.00 | 100.00 | S | ||||||||||||
Rába Vehicle Ltd. | 835,100 | 100.00 | 100.00 | S | ||||||||||||
Diagonal Valor Kft. | 3,000 | 100.00 | 100.00 | S |
1Voting right securing participation in the decision-making at the general meeting of the company subject to consolidation.
2Subsidiary (S); Jointly controlled (J); Affiliated (A).
PK. 4. CONSOLIDATED PROFIT AND LOSS ACCOUNT ACCORDING TO IFRS
Currency* | HUF | X | EUR | ||||||||||||||||||
Unit* | 1.000 | X | 1.000.000 | ||||||||||||||||||
* Indicate with an X. | |||||||||||||||||||||
Description of item | Q1-Q3 | Q1-Q3 | Index | Q3 2019 | Q3 2020 | Index | |||||||||||||||
2019* | 2020 | ||||||||||||||||||||
Domestic sales revenues | 12 790 153 | 7 960 291 | 62.2% | 2 960 338 | 2 644 599 | 89.3% | |||||||||||||||
Export sales revenues | 25 132 320 | 19 803 548 | 78.8% | 7 323 751 | 5 905 248 | 80.6% | |||||||||||||||
Revenues | 37 922 473 | 27 763 839 | 73.2% | 10 284 089 | 8 549 847 | 83.1% | |||||||||||||||
Direct cost of sales | 30 741 215 | 22 622 988 | 73.6% | 8 572 547 | 6 811 300 | 79.5% | |||||||||||||||
Gross profit | 7 181 258 | 5 140 851 | 71.6% | 1 711 542 | 1 738 547 | 101.6% | |||||||||||||||
Cost of sales and marketing** | 617 740 | 316 921 | 51.3% | 198 944 | 72 579 | 36.5% | |||||||||||||||
General and administration expenses** | 5 310 173 | 5 189 099 | 97.7% | 1 521 786 | 1 379 108 | 90.6% | |||||||||||||||
Other revenues | 437 695 | 269 634 | 61.6% | 158 846 | 93 563 | 58.9% | |||||||||||||||
Other expenditures∗ | 498 868 | 941 628 | 188.8% | 186 190 | 315 517 | 169.5% | |||||||||||||||
Total other operating expenses | -5 989 086 | -6 178 015 | 103.2% | -1 748 074 | -1 673 642 | 95.7% | |||||||||||||||
Revenue from operations | 1 192 172 | -1 037 164 | -87.0% | -36 532 | 64 905 | -177.7% | |||||||||||||||
Financial revenues | 200 140 | 572 459 | 286.0% | 159 977 | 169 454 | 105.9% | |||||||||||||||
Financial expenditures | 681 649 | 1 476 083 | 216.5% | 548 048 | 421 763 | 77.0% | |||||||||||||||
Net financial profit/loss | -481 508 | -903 624 | -187.7% | -388 070 | -252 309 | 65.0% | |||||||||||||||
Profit from the purchase of subsidiary | 0 | 0 | 0 | 0 | |||||||||||||||||
company | |||||||||||||||||||||
Profit from the purchase of affiliated | 0 | 11 907 | 0 | -3 544 | |||||||||||||||||
company | |||||||||||||||||||||
PROFIT FROM THE PURCHASE OF | 0 | 11 907 | 0 | -3 544 | |||||||||||||||||
INVESTMENT | |||||||||||||||||||||
PROFIT BEFORE TAXATION | 710 664 | -1 928 880 | -271.4% | -424 602 | -190 948 | 45.0% | |||||||||||||||
Profit tax | 285 308 | 239 679 | 84.0% | 4 432 | 76 325 | 1722.1% | |||||||||||||||
After-tax profit in the current year | 425 356 | -2 168 559 | -509.8% | -429 034 | -267 273 | 62.3% | |||||||||||||||
Basic value of profit per share (HUF) | 32 | -161 | |||||||||||||||||||
Diluted value of profit per share (HUF) | 32 | -161 | |||||||||||||||||||
∗In Q1-Q3 of 2019, innovation supplement was recorded under other expenditures, which from the end of 2019 was reclassified as profit tax.
- As from 01. 01. 2020 the classification of sales and marketing costs and general and administration expenses has been specified at group level. The effect of the reclassification is HUF 232 million net in Q1-Q3 of 2019.
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RÁBA Plc's consolidated report for Q1-Q3 of 2020 in acc ordance with the IFRS
1. EARNED REVENUES
During Q1-Q3 of 2020, Rába generated HUF 27,764 mil lion in sales revenue, compared to HUF 37,922 million during the same period of the previous year, which is a change of -26.8 per cent. 71.3 per cent of the revenues in the reporting period came from exports, while the rest came from domestic sales.
2. COSTS AND OTHER REVENUES. EXPENDITURES
2.1. Direct costs
During Q1-Q3 of 2020, the direct cost level of Rába was 81.5 per cent compared to 81.1 % of the base period. The amount of direct costs was HUF 22,623 million, 26.4 per cent lower than during the base period (Q1-Q3 of 2019: HUF 30,741 million).
Gross profit
The gross profit changed from HUF 7,181 million in the base period to HUF 5,141 million (HUF - 2,040 million), which is due to the decrease in sales revenue by HUH 10,159 million and by 8,119 million in direct expenses.
2.2. Cost of sales
The cost of sales decreased by 48.7 per cent and amounted to HUF 317 million during Q1-Q3 of 2020, compared to HUF 618 million in Q1-Q3 of 2019.
2.3. General overhead and administrative expenses
Rába accounts under general overhead and administra tive expenses (Q1-Q3 of 2020: HUF 5,189
million, Q1-Q3 of 2019: 5,310 million) for its costs incurred in relation to the administration of the
company (Q1-Q3 of 2020: HUF 2,586 million) and other general costs (Q1-Q3 of 2020: HUF 2,603 million).
2.4. Other revenues and expenditures
The balance of other revenues and expenditures amounted to a loss of HUF 672 million in Q1-Q3 of 2020 compared to HUF 61 million in profits during the same period of last year.
This also includes the figure for one-off items related to the closing of an earlier transaction in the amount of HUF 296 million.
3. OPERATING PROFIT
The operating profit of the Company during Q1-Q3 of 2020 was HUF -1,037 million (Q1-Q3 of 2019: HUF 1,192 million). The decrease in gross profit (HUF 2,040 million) was improved by the combined change in sales and general overhead costs (HUF 422 million) and deteriorated by the change in the balance of other revenues and expenditures (HUF 611 million). Profitability changed from 3.1 per cent during the base period to -3.7 per cent. The profitability of operating profit + depreciation changed from 7.2 per cent during the base period to 2.5 per cent.
4. FINANCIAL REVENUES AND EXPENDITURES
During Q1-Q3 of 2020, the net financial result was a loss of HUF 904 million, compared to the loss of HUF 482 million during the base period.
The net result of interest incomes and expenses was HUF -63 million during Q1-Q3 of 2020 (against HUF -59 million during the base period).
The net exchange rate difference of FX items during Q1-Q3 of 2020 was HUF -833 million (HUF - 403 million in the base period).
8
RÁBA Plc's consolidated report for Q1-Q3 of 2020 in acc ordance with the IFRS
Financial revenues and expenditures consisted of the following principal items:
in HUF thousand | ||||||
Q1-Q3 of 2019 | Q1-Q3 of 2020 | |||||
Interest income | 10 | 5 360 | ||||
Exchange rate gains | 200 130 | 563 670 | ||||
Other financial revenues | 0 | 3 428 | ||||
Financial revenues | 200 140 | 572 459 | ||||
Interest payable | 58 585 | 68 132 | ||||
Exchange rate loss | 603 172 | 1 397 091 | ||||
Other financial expenditures | 19 891 | 10 859 | ||||
Financial expenditures | 681 649 | 1 476 083 |
5. EARNINGS IN THE CURRENT YEAR
The earnings before taxation during Q1-Q3 of 2020 amounted to a loss of HUF 1,929 million, which, because of the factors outlined in sections 1-4. is HUF 2,640 million less than the figure for Q1-Q3 of 2019. The profitability ratio represents a -6.95 per cent return on sales on the basis of profit before taxation, against the level of 1.87 per cent during the base period.
The Group has HUF 240 million in tax liability during the review period. Within that, the corporate tax liability was HUF 3 million, the local business tax liability was HUF 205 million, the innovation supplement amounted to HUF 35 million, and the deferred tax liability in the reporting period was HUF -3 million.
PK. 3. STATEMENT OF CONSOLIDATED FINANCES ACCORDING TO IFRS (BALANCE SHEET ACCORDING TO IFRS)
Currency* | HUF | X | EUR | |||||
Unit* | 1.000 | X | 1.000.000 | |||||
*Currency and unit indicated with X. | ||||||||
Description of item | 31.12.2019 | 30.09.2020 | Index | |||||
Real estate. machines. equipment | 25 394 003 | 26 271 080 | 103.5% | |||||
Intangible assets | 147 709 | 100 519 | 68.1% | |||||
Other long-term assets | 148 859 | 86 495 | 58.1% | |||||
Property for investment purposes | 815 632 | 808 648 | 99.1% | |||||
Other investments | 45 027 | 56 934 | 126.4% | |||||
Deferred tax receivables | 12 012 | 18 340 | 152.7% | |||||
Total invested assets | 26 563 242 | 27 342 017 | 102.9% | |||||
Inventories | 7 651 242 | 6 621 181 | 86.5% | |||||
Trade receivables and other receivables | 6 487 674 | 6 762 854 | 104.2% | |||||
Profit tax receivable | 62 489 | 258 500 | 413.7% | |||||
Liquid assets. bank account | 804 510 | 2 217 591 | 275.6% | |||||
Total current assets | 15 005 915 | 15 860 126 | 105.7% | |||||
Total assets | 41 569 157 | 43 202 143 | 103.9% | |||||
Registered capital | 13 473 446 | 13 473 446 | 100.0% | |||||
Treasury shares | -108 952 | -108 952 | 100.0% | |||||
Retained earnings | 7 832 514 | 5 663 955 | 72.3% | |||||
Total equity and reserves | 21 197 008 | 19 028 449 | 89.8% | |||||
Long-term credits and loans | 3 371 304 | 5 323 890 | 157.9% | |||||
Provisions | 237 208 | 237 209 | 100.0% | |||||
Deferred tax liability | 113 276 | 116 367 | 102.7% | |||||
Leasing liabilities | 195 480 | 189 312 | 96.8% | |||||
Total long-term liabilities | 3 917 268 | 5 866 779 | 149.8% | |||||
Provisions | 171 367 | 232 654 | 135.8% | |||||
Leasing liabilities | 82 575 | 82 575 | 100.0% | |||||
Short-term portion of loans and credits | 5 354 424 | 7 539 107 | 140.8% | |||||
Trade liabilities and other payables | 10 846 515 | 10 452 579 | 96.4% | |||||
Total short-term liabilities | 16 454 881 | 18 306 915 | 111.3% | |||||
Total equity and liabilities | 41 569 157 | 43 202 143 | 103.9% | |||||
9 |
RÁBA Plc's consolidated report for Q1-Q3 of 2020 in acc ordance with the IFRS
Analysis of principal balance sheet items and their changes
1. INVESTED ASSETS
1.1. Properties. machines and equipment
The consolidated net value of properties, machines and equipment changed from the closing value of HUF 25,394 million on 31 December, 2019 to HUF 26,271 million. This represents an increase by 3.5 per cent. The depreciation of fixed assets was HUF 1,739 million in Q1-Q3 of 2020.
In line with the provisions of the IFRS 16 Standard effective from 1 January, 2019, the Company identified assets, forklifts and passenger vehicles in the amount of HUF 357 million, where the lessor let use of the assets to Rába. (HUF 274 million on 1 January, 2020, with purchases during the reporting period of HUF 48 million). During the reporting period, the depreciation of these assets amounted to HUF 71 million.
1.2. Intangible assets
The net value of intangible assets changed from HUF 148 million to HUF 101 million. This represents a decline by 31.9 per cent. The amount of depreciation accounted during the period was HUF 44 million.
1.3. Other long-termassets
This balance sheet line shows other long-term loans given in the amount of HUF 5 million (31 December, 2019: HUF 15 million), as well as long-term advance payments in the amount of HUF 81 million (31 December, 2019: HUF 134 million). The long-term advance payment is the consequence of the partial payment of a long-term liability upon favourable conditions, to be recorded annually in the indirect cost line. In consequence of the discharge of liabilities during the year, the amount of long term advance receivables declined by HUF 53 million during the period.
1.4. Property for investment purposes
The book value of real estate for investment purposes at 30 September, 2019 changed to HUF 809 million from HUF 816 million during the base period.
1.5. Investments
In 2019, the Company acquired Diagonal Valor Kft. The definitive identification and valuation as per IFRS of the assets acquired have been completed, thus the purchase of 100 per cent of the business stake is shown under investments. In 2019, Rába Plc . purchased a 24.9 per cent stake in Rekard Hajtómű és Gépgyártó Kft., shown under the balance sheet line "other investments".
1.6. Deferred tax receivables
The amount of receivable was HUF 18 million on 30 September, 2020, against HUF 12 million on 31 December, 2019.
2. CURRENT ASSETS
2.1. Inventories
On 30 September, 2020, the closing value of stocks was HUF 6,621 million (31 December, 2019: HUF 7,651 million). The change is a decline by HUF 1,030 million. The components of the change are: a decrease in materials and goods by HUF 594 million and a decline in unfinished, semi-finished and finished goods by HUF 436 million.
2.2. Trade receivables and other receivables
The closing figure of receivables as at 30 September, 2020 was HUF 6,367 million, a decline by HUF 275 million compared to the 31 December, 2019 figure (closing figure for 31 December, 2019: HUF 6,488 million). Accounts receivable increased by HUF 1,259 million, advances made for investment and inventories decreased by HUF 738 million and other receivables decreased by HUF 247 million.
2.3. Profit tax receivables
At the end of the quarter, the Group had profit tax receivables.
On 30 September, 2020, the Group had a HUF 259 million in profit tax receivables, within which the
10
RÁBA Plc's consolidated report for Q1-Q3 of 2020 in acc ordance with the IFRS
corporate tax receivables amounted to HUF 136 million and the local trade tax receivable was HUF 129 million and the innovation supplement was a liability of HUF 6 million.
On 31 December, 2019, there was a profit tax receivable of HUF 62 million, within which corporate tax receivables amounted to HUF 72 million, the local trade tax receivables amounted to HUF 8 million and the innovation supplement was a liability of HUF 18 million
2.4. Liquid assets
The closing figure of liquid assets on 30 September, 2020 was HUF 2,218 million, HUF 1,413 million more than on 31 December, 2019 (HUF 805 million).
3. EQUITY AND RESERVES
The change occurred as follows:
in HUF thousand
Share | Treasury | Reserve from | Retained | Other | Total | |||||||||||
share-based | aggregat | shareholder | ||||||||||||||
capital | shares | earnings | ||||||||||||||
payments | e income | s' equity | ||||||||||||||
Balance as at 01 January, 2019 | 13 473 446 | -108 952 | 0 | 7 500 457 | 0 | 20 864 951 | ||||||||||
Profit for current year | 854 390 | 854 390 | ||||||||||||||
Dividend payment | -239 815 | -239 815 | ||||||||||||||
Balance as at 30 June, 2019 | 13 473 446 | -108 952 | 0 | 8 115 032 | 0 | 21 479 526 | ||||||||||
Profit of the current year | -282 518 | -282 518 | ||||||||||||||
Balance as at 01 January, 2020 | 13 473 446 | -108 952 | 0 | 7 832 513 | 0 | 21 197 008 | ||||||||||
Profit for current year | -2 168 559 | -2 168 559 | ||||||||||||||
Balance as at 30 September, | 13 473 446 | -108 952 | 0 | 5 663 955 | 0 | 19 028 449 | ||||||||||
2020 | ||||||||||||||||
3.1. Registered capital
RÁBA Plc's share capital consists of common shares with a nominal value of HUF 1.000 each. entitling the shareholders to the dividend announced in a particular period. and providing one vote at the General Meeting of the Company. On 30 September, 2020, the share capital of the Company was HUF 13,473 million.
3.2. Treasury shares
On 30 September, 2020, the value of treasury shares was HUF 108,952 thousand (120,681 shares), with no changes since 31 December, 2019. All rights related to the shares of the Company owned by the Group ("treasury shares") are suspended until the renewed issue of the shares in question.
3.3. Retained earnings
The retained earnings (HUF 5,664 million) changed by HUF -2,169 million. i.e. the profit for the reporting year compared to the closing value for the previous year (HUF 7,833 million).
4. LONG-TERMLIABILITIES
4.1. Long-termcredits and loans, leasing liabilities
The closing value of long-term credits and loans and leasing liabilities as at 30 September, 2020 amounted to HUF 5,513 million, which was 54.6 per cent higher than the opening balance of the period (on 31 December, 2019, the closing figure was HUF 3,567 million).
On 1 January, 2020, the Company had long-term leasing liabilities of HUF 195 million in the context of the leasing contracts identified in line with the provisions of the new IFRS 16 leasing standard. This is then moved to short-term liabilities from where repayment is done. The amount then declined by HUF 73 million due to repayment and increased due the purchase of new assets by HUF 71 million during the reporting period.
4.2. Provisions
The closing value of provisions as at 30 September, 2020 was HUF 470 million, of which HUF 237 million is long-term.
11
RÁBA Plc's consolidated report for Q1-Q3 of 2020 in acc ordance with the IFRS
4.3. Deferred tax liability
On 30 September, 2020, the Company had deferred tax liabilities in the amount of HUF 116 million, which is HUF 3 million more than the amount on 31 December, 2019.
5. SHORT-TERMLIABILITIES
5.1. Short-termcredits and loans
The total amount of short-term credits and loans of HUF 7,622 million is an increase by 40.8 per cent compared to the closing value at the 31 December 2019 (HUF 5,437 million). Short-term leasing liabilities amounted to HUF 83 million, with no changes since 31 December, 2019.
The net borrowing of the Rába group was HUF 10,645 million on 30 September, 2020, an increase by HUF 2,724 million compared to the level as at 31 December, 2019.
5.2. Provisions
The short-term portion of provisions amounted to HUF 233 million on 30 September, 2020, which is HUF 62 million higher than the amount on 31 December. 2019.
5.3. Profit tax liability
At the end of the quarter, the Group had profit tax receivables.
5.4. Accounts payable and other short-term liabilities
On 30 September, 2020, the amount of accounts payable and other short-term liabilities was HUF 10,453 million, which is 3.6 per cent lower than the closing value as at the end of December 2019 (HUF 10,847 million). Accounts payable decreased by HUF 1,161 million, other liabilities declined by HUF 62 million, whereas passive accruals increased by HUF 705 million.
12
RÁBA Plc's consolidated report for Q1-Q3 of 2020 in acc ordance with the IFRS
PK 5. CONSOLIDATED CASH-FLOW STATEMENT
Data in HUF thousand
30.09.2019 | 30.09.2020 | ||||
Cash-flows from operating activities | |||||
Profit before taxation | 710 664 | -1 928 880 | |||
Adjustment items related to items with no cash movement: | |||||
Interest expenditure | 10 619 | 68 132 | |||
Depreciation and amortisation | 1 554 386 | 1 738 961 | |||
Impairment of intangible assets. properties machines and | 18 453 | 258 549 | |||
equipment | |||||
Impairment of bad and doubtful receivables and of long term | 4 581 | 8 994 | |||
receivables | |||||
Impairment of stocks kept at net realisable value | 146 147 | 332 694 | |||
Scrapping of stocks | 58 464 | 35 452 | |||
Provisions / (release) | -46 912 | 61 288 | |||
Result from the sale of real estate machinery and fixtures and | -110 922 | -3 322 | |||
intangible assets | |||||
Profit from the purchase of subsidiary and affiliated company | 0 | -11 907 | |||
Revaluation of loans and credits at end of period | 417 252 | 1 009 448 | |||
Changes in working capital: | |||||
Changes in trade and other receivables | 4 670 538 | -284 174 | |||
Changes in stocks | -1 087 698 | 661 915 | |||
Changes in accounts payable and other liabilities | -1 183 057 | -405 066 | |||
Taxes paid | -387 312 | -438 924 | |||
Interests paid | -54 831 | 0 | |||
Net cash flows from operating activity | 4 729 372 | 1 103 159 | |||
Cash-flows from investment activities | |||||
Purchase of real estate, machinery and fixtures. as well as of | -7 514 445 | -3 838 482 | |||
intangibles | |||||
Revenues from the sale of real estate, machinery and fixtures as | 124 587 | 1 021 391 | |||
well as intangible asses | |||||
Increase in investments | -474 700 | 0 | |||
Interests received | 9 | 5 360 | |||
Net cash flows used for investment activities | -7 864 549 | -2 811 731 | |||
Cash flows from financing activities | |||||
Loans and credits received | 4 502 902 | 3 905 044 | |||
Loans and credits and leasing repayment | -1 526 477 | -783 391 | |||
Dividend paid | -239 815 | 0 | |||
Net cash flows from financing activities | 2 736 610 | 1 413 081 | |||
Net increase/decrease of cash and cash equivalents | -398 567 | 526 246 |
BASIS FOR THE INTERIM FINANCIAL REPORT
The summary consolidated interim financial report prepared in accordance with IAS 34 Directive (on Interim Financial Reporting) should be read in conjunction with the financial report for the year ended 31 December, 2019, prepared in accordance with the International Financial Reporting Standards ("IFRS") issued by the International Accounting Standards Body ("IASB") and adopted by the European Union. The consolidated interim financial report is unaudited. Rába Plc. published its statutory accounts for the year ended 31 December, 2019 on the official electronic portal of the Budapest Stock Exchange and on the information system operated by the National Bank of Hungary for stock market publications. This report for 31 December, 2019 is based on audited figures and the auditor issued an unqualified opinion.
13
RÁBA Plc's consolidated report for Q1-Q3 of 2020 in acc ordance with the IFRS
PK6. Major off-balancesheet items
Description | Value (HUF) |
According to a separate list*
- The bank loans of the Rába Group amount to HUF 12 ,863 million, of which the loans secured with liens and mortgages on movable assets and real property amount to HUF 12,863 million.
The amount of bank guarantees issued on behalf of the Rába Group is HUF 3,178 million.
RS1. Ownership structure. ratio of participation
Total equity | Series listed1 | |||||||||||||||||||
Description of ownership | Beginning of current year | At end of term | Beginning | End of | ||||||||||||||||
(01 January) | (30 September) | of period | period | |||||||||||||||||
% 2 | % 3 | pcs | % 2 | % 3 | pcs | % | pcs | % | pcs | |||||||||||
Domestic institutional/corporate | 7.05 | 7.11 | 949 288 | 6.60 | 6.66 | 889 389 | ||||||||||||||
Foreign institutional/corporate | 2.15 | 2.17 | 289 697 | 2.11 | 2.13 | 284 721 | ||||||||||||||
Foreign private individual | 0.07 | 0.07 | 9 804 | 0.06 | 0.07 | 8 732 | ||||||||||||||
Domestic private individual | 15.25 | 15.39 | 2 054 773 | 15.74 | 15.88 | 2 120 720 | ||||||||||||||
Employees. leading officials | 0.13 | 0.13 | 17 074 | 0.13 | 0.13 | 17 074 | ||||||||||||||
Treasury shares | 0.90 | 120 681 | 0.90 | 120 681 | ||||||||||||||||
Shareholder forming part of | 74.46 | 75.13 | 10 032 129 | 74.46 | 75.13 | 10 032 129 | ||||||||||||||
general government4 | ||||||||||||||||||||
International Development | 0.00 | 0.00 | 0 | 0.00 | 0.00 | 0 | ||||||||||||||
Institutions5 | ||||||||||||||||||||
Other 6 | 0.00 | 0.00 | 0 | 0.00 | 0.00 | 0 | ||||||||||||||
T O T A L | 100.00 | 100.00 | 13 473 446 | 100.00 | 100.00 | 13 473 446 | ||||||||||||||
1If the listed series equals the total share capital and it is indicated, there is no need to fill it in. If more than one series are listed at the Stock Exchange, the ownership structure must be specified for each series.
- Ownership ratio
- Voting right ensuring participation during the decision-making process at the general meeting of shareholders of the issuer. If the ownership ratio and the voting right are the same, only the column regarding the owner needs to be filled in/published while stating such fact.
- E.g.: MNV Zrt., Social Security, Local Government, 100% state-owned companies, etc.
- E.g.: EBRD, EIB, etc.
RS3. List and introduction of shareholders with a stake exceeding 5%
Name | depositary | Quantity | Share | ||
(yes/no) | (pcs) | (%) | |||
Hungarian State Holding Company Ltd. (MNV Zrt.) | no | 10,015,829 | 74.34 | ||
Total | 10,015,829 | 74.34 | |||
RS2. Changes in the number of treasury shares during the current year (pcs.)
1 January | 31 March | 30 June | 30 September | |||||||||||||||
pcs | % | pcs | % | pcs | % | pcs | % | |||||||||||
At corporate level | 120 681 | 0.9 | 120 681 | 0.9 | 120 681 | 0.9 | 120 681 | 0.9 | ||||||||||
Subsidiaries 1 | - | - | - | - | - | - | - | - | ||||||||||
Grand total | 120 681 | 0.9 | 120 681 | 0.9 | 120 681 | 0.9 | 120 681 | 0.9 |
1 Consolidated companies
All of the shares repurchased are directly owned by the parent company.
TSZ1. Headcount of full-timeemployees (people)
End of base period | Beginning of current year | End of current period | |||||||
At corporate level | 18 | 17 | 29 | ||||||
At group level | 1 369 | 1 325 | 1 233 |
The consolidated closing headcount as at 30 September, 2020 was 1,233. The decline in headcount is 9.9 per cent compared to the end of the base period.
14
RÁBA Plc's consolidated report for Q1-Q3 of 2020 in acc ordance with the IFRS
TSZ2. Managing executives. strategic employees
Type1 | Company | Position | Beginning | End/termination | ||||||||||
of mandate | ||||||||||||||
BD | István Pintér | Chairman of the BD | 2005 | |||||||||||
BD | Dr. Ibolya Virág Csernák | Board member | 2019 | |||||||||||
Bánóczi | ||||||||||||||
BD | János Major | Board member | 2019 | |||||||||||
BD | Roland Sebők | Board member | 2019 | |||||||||||
BD | Dr. András Ákos Toperczer | Board member | 2020 | |||||||||||
BD | Dr. Tamás Tóth | Board member | 2019 | |||||||||||
BD | György Wáberer | Board member | 2012 | |||||||||||
BD | Ákos Csókay | Board member | 2017 | 2019 | ||||||||||
BD | Dr. János Géza Förd ős | Board member | 2016 | 2019 | ||||||||||
BD | Dr. Péter Hartmann | Board member | 2016 | 2019 | ||||||||||
BD | Dr. Ákos Mátyás Pálvölgyi | Board member | 2019 | 2020 | ||||||||||
BD | Dr. Miklós Rátky | Board member | 2014 | 2019 | ||||||||||
BD | Andor Nándor Tóth | Board member | 2018 | 2019 | ||||||||||
SB | Dr. Zoltán Lajos Pafféri | Chairman of the SB | 2018 | |||||||||||
SB | Dr. Zsolt Harmath | SB member | 2016 | |||||||||||
SB | Dr. Tünde Kanta | SB member | 2017 | |||||||||||
SP | István Pintér | Chief Executive Officer | 2003 | indef inite | ||||||||||
SP | Béla Balog | Chief Financial Officer | 2004 | indefinite | ||||||||||
SP | Ádám Steszli | HR and Controlling Director | 2014 | In definite | ||||||||||
Director, Strategic | ||||||||||||||
SP | Attila Deák | Procurement and Business | 2019 | indefinite | ||||||||||
Development | ||||||||||||||
SP | István Pintér | Managing Director | 2004 | indefinite | ||||||||||
SP | László Urbányi | Managing Director | 2005 | indefinite | ||||||||||
SP | János Torma | Managing Director | 2005 | indefinite | ||||||||||
1 Employee in a strategic position (SP), Member of the Board of Directors (BD), Supervisory Board Member (SB).
15
RÁBA Plc's consolidated report for Q1-Q3 of 2020 in acc ordance with the IFRS
As from 1 January, 2017, Rába Plc's individual financial accounts are also drawn up in
accordance with the provisions of the IFRS.
RÁBA PLC. (INDIVIDUAL) BALANCE SHEET (IFRS)
Data in HUF thousand
Description of item | 31.12.2019 | 30.09.2020 | Index | ||||||||
Property. machinery. equipment* | 6 003 693 | 7 031 799 | 117.12% | ||||||||
Intangible assets | 13 294 | 9 119 | 68.59% | ||||||||
Other long-term assets | 1 414 417 | 1 414 417 | 100.00% | ||||||||
Real estate for investment | 392 912 | 808 647 | 205.81% | ||||||||
Subsidiary investments | 12 318 571 | 12 148 585 | 98.62% | ||||||||
Other investments | 45 027 | 56 934 | 126.44% | ||||||||
Deferred tax receivable | 12 012 | 18 338 | 152.66% | ||||||||
Total invested assets | 20 199 926 | 21 487 839 | 106.38% | ||||||||
Inventories | 8 103 | 11 808 | 145.72% | ||||||||
Trade and other receivables | 2 938 341 | 2 654 492 | 90.34% | ||||||||
Profit tax receivables | 10 600 | 12 309 | 116.12% | ||||||||
Cash and cash equivalents | 443 860 | 1 405 488 | 316.65% | ||||||||
Total current assets | 3 400 904 | 4 084 097 | 120.09% | ||||||||
TOTAL ASSETS | 23 600 830 | 25 571 936 | 108.35% | ||||||||
Registered capital | 13 473 446 | 13 473 446 | 100.00% | ||||||||
Treasury shares | -108 952 | -108 952 | 100.00% | ||||||||
Retained earnings | 3 392 669 | 3 340 817 | 98.47% | ||||||||
Total equity and reserves | 16 757 163 | 16 705 311 | 99.69% | ||||||||
Provisions | 95 700 | 95 700 | 100.00% | ||||||||
Long-term credits and loans | 367 | 32 199 | 8773.57% | ||||||||
Total long-term liabilities | 96 067 | 127 899 | 133.14% | ||||||||
Provisions | 17 362 | 87 350 | 503.11% | ||||||||
Short-term portion of loans and credits | 1 983 119 | 3 569 911 | 180.01% | ||||||||
Accounts payable and other liabilities | 4 747 119 | 5 081 465 | 107.04% | ||||||||
Total short-term liabilities | 6 747 600 | 8 738 726 | 129.51% | ||||||||
TOTAL EQUITY AND LIABILITIES | 23 600 830 | 25 571 936 | 108.35% | ||||||||
- In Q1-Q3 of 2020, several real estate items within the group were entered into the individual accounts of the company in order to optimise property management. This does not influence the consolidated value.
16
RÁBA Plc's consolidated report for Q1-Q3 of 2020 in acc ordance with the IFRS
RÁBA PLC. (INDIVIDUAL) PROFIT AND LOSS STATEMENT (I FRS)
Data in HUF thousand
Description | Q1-Q3 | Q1-Q3 | Index | Q3 2019 | Q3 2020 | Index | ||||||||||||
2019 | 2020 | |||||||||||||||||
Sales revenues | 1 192 915 | 1 435 101 | 120.3% | 370 300 | 508 394 | 137.3% | ||||||||||||
Direct costs of sales | 286 641 | 292 598 | 102.1% | 97 360 | 91 098 | 93.6% | ||||||||||||
Gross profit | 906 274 | 1 142 503 | 126.1% | 272 940 | 417 296 | 152.9% | ||||||||||||
Sales and marketing costs | 26 320 | 382 | 1.5% | 3 741 | 0 | 0.0% | ||||||||||||
General overhead costs | 815 772 | 897 112 | 110.0% | 255 369 | 303 728 | 118.9% | ||||||||||||
Other revenues | 216 730 | 57 448 | 26.5% | 3 619 | 49 381 | 1364.5% | ||||||||||||
Other expenditures* | 187 190 | 184 528 | 98.6% | 127 876 | 97 301 | 76.1% | ||||||||||||
Other operating expenditures total | -812 552 | -1 024 574 | 126.1% | -383 367 | -351 | 91.7% | ||||||||||||
648 | ||||||||||||||||||
Operating profit | 93 722 | 117 929 | 125.8% | -110 427 | 65 648 | -59.4% | ||||||||||||
Financial income | 35 906 | 114 664 | 319.3% | -17 030 | 63 626 | -373.6% | ||||||||||||
Financial expenditures | 107 336 | 281 615 | 262.4% | 37 710 | 92 629 | 245.6% | ||||||||||||
Net financial income | -71 430 | -166 951 | 233.7% | -54 740 | -29 003 | 53.0% | ||||||||||||
Revenue from the purchase of affiliated | 11 907 | -3 544 | ||||||||||||||||
company | ||||||||||||||||||
PROFIT BEFORE TAXATION | 22 292 | -37 115 | -166.5% | -165 167 | 33 101 | -20.0% | ||||||||||||
Profit Tax* | 8 969 | 14 734 | 164.3% | -3 760 | 2 109 | -56.1% | ||||||||||||
PROFIT OF CURRENT YEAR | 13 323 | -51 849 | -389.2% | -161 407 | 30 992 | -19.2% | ||||||||||||
TOTAL AGGREGATE PROFIT/LOSS OF | 13 323 | -51 849 | -389.2% | -161 407 | 30 992 | -19.2% | ||||||||||||
CURRENT YEAR | ||||||||||||||||||
EBITDA | 261 176 | 324 222 | 124.1% | -54 192 | 137 238 | -253.2% | ||||||||||||
* In Q1-Q3 of 2019, innovation supplement is under other expenditures, from the end of 2019, it is moved to profit taxes
SEGMENT INFORMATION
From a business perspective, the Group can be split into three main segments: Axles, Vehicles and Automotive Components.
It is on the basis of these business segments that the Group prepares segment information for the management. Management is responsible for assigning resources to the segments, as well as for holding the segments accountable for their performance.
The Axle Segment encompasses the production and sale of axles, axle parts and axle components, the Vehicle Segment is responsible for the manufacturing of truck and bus chassis and the related components, as well as for the assembly and sale of vehicles, while the Automotive Components Segment is responsible for the production of vehicle components, seat frames, pressed structures, as well as truck chassis and for the sewing of seat covers and for the sale of these products.
Segment results, segment assets and segment liabilities include items that can be directly attributed to the given segment. General overhead items include the revenues, expenditures, assets and liabilities of the holding headquarters.
Capital expenditures of the segment include the total expenditures during the period expended upon real estate, machinery and equipment, as well as intangible assets.
17
Q1-Q3 2019 | Q3 2019 | |||||||||||
Inter- | Inter- | |||||||||||
Axles IFRS | Vehicles IFRS | Components IFRS | General overhead | segment | Consolidated | Axles IFRS | Vehicles IFRS | Components IFRS | General overhead | segment | Consolidated | |
filters | filters | |||||||||||
Revenues | 17 147 763 | 8 545 298 | 12 037 596 | 191 817 | 0 | 37 922 473 | 5 051 177 | 1 906 494 | 3 259 136 | 67 283 | 0 | 10 284 090 |
Inter-segment revenues | 572 038 | 257 767 | 690 624 | 1 001 097 | -2 521 527 | 0 | 154 444 | 76 225 | 167 842 | 303 017 | -701 528 | 0 |
Total revenue from sales | 17 719 801 | 8 803 065 | 12 728 220 | 1 192 915 | -2 521 527 | 37 922 473 | 5 205 621 | 1 982 720 | 3 426 978 | 370 300 | -701 528 | 10 284 090 |
Direct cost of sales | -14 557 008 | -7 089 140 | -10 714 064 | -286 641 | 1 905 636 | -30 741 217 | -4 290 366 | -1 735 820 | -2 944 923 | -97 360 | 495 920 | -8 572 549 |
GROSS PROFIT | 3 162 793 | 1 713 925 | 2 014 156 | 906 273 | -615 891 | 7 181 256 | 915 255 | 246 900 | 482 054 | 272 939 | -205 608 | 1 711 541 |
Sales and marketing costs ** | -232 155 | -334 342 | -24 923 | -26 320 | 0 | -617 740 | -61 119 | -128 589 | -5 496 | -3 741 | 0 | -198 945 |
General overhead costs ** | -2 688 335 | -916 140 | -1 506 176 | -815 772 | 616 249 | -5 310 173 | -846 679 | -257 919 | -367 589 | -255 368 | 205 767 | -1 521 786 |
Other revenues | 296 478 | 76 181 | 62 104 | 216 730 | -213 796 | 437 697 | 98 068 | 34 852 | 22 841 | 3 619 | -533 | 158 846 |
Other expenditures* | -205 472 | -35 441 | -73 534 | -187 190 | 2 768 | -498 869 | -12 394 | -23 721 | -22 733 | -127 876 | 533 | -186 190 |
TOTAL OTHER OPERATING EXPENDITURES | -2 829 484 | -1 209 742 | -1 542 529 | -812 552 | 405 221 | -5 989 085 | -822 123 | -375 376 | -372 977 | -383 367 | 205 767 | -1 748 074 |
REVENUE FROM OPERATIONS | 333 309 | 504 183 | 471 627 | 93 721 | -210 671 | 1 192 171 | 93 132 | -128 475 | 109 078 | -110 428 | 159 | -36 533 |
Interest income | 738 | 10 750 | 690 | 6 702 | -18 870 | 10 | 102 | 3 739 | 33 | 2 926 | -6 799 | 1 |
Interest expenditure | -37 900 | -16 001 | -12 018 | -18 400 | 18 870 | -65 450 | -13 005 | -5 091 | -3 720 | -7 408 | 6 799 | -22 425 |
Profit tax expenditure | -90 165 | -58 635 | -127 538 | -8 969 | 0 | -285 307 | -4 967 | 25 671 | -28 895 | 3 759 | 0 | -4 432 |
Assets | ||||||||||||
Real estate, machinery and equipment | 13 446 724 | 2 053 569 | 3 468 181 | 6 009 868 | 10 010 | 24 988 351 | 5 144 727 | 19 656 | -98 263 | -10 327 | 159 | 5 055 953 |
Intangible assets | 80 638 | 41 428 | 17 872 | 14 701 | 0 | 154 639 | 3 881 | 138 | -2 949 | -1 419 | 0 | -349 |
Real estate for investment | 0 | 0 | 0 | 338 217 | 0 | 338 217 | 0 | 0 | 0 | 0 | 0 | 0 |
Other long-term assets | 128 541 | 11 565 | 8 175 | 1 503 882 | -1 373 483 | 278 680 | -15 335 | -1 403 | -991 | 0 | 0 | -17 729 |
Inventories | 6 101 142 | 1 761 862 | 2 116 213 | 9 242 | -33 781 | 9 954 679 | -135 936 | -233 215 | 143 058 | 765 | 0 | -225 327 |
Receivables | 4 781 495 | 4 734 190 | 1 800 791 | 3 392 460 | -7 118 197 | 7 590 740 | -4 380 369 | -110 489 | -291 321 | 1 552 561 | -2 076 406 | -5 306 024 |
Cash and cash equivalent | 266 959 | 3 111 | 3 156 | 11 737 | -1 | 284 962 | 45 430 | -5 949 | -321 | -323 375 | 0 | -284 217 |
Liabilities | ||||||||||||
Provisions | 33 398 | 155 889 | 30 254 | 223 489 | 3 | 443 033 | 0 | 100 | 0 | 88 751 | 0 | 88 851 |
Liabilities* | 8 190 474 | 2 295 877 | 3 560 696 | 4 014 257 | -7 118 196 | 10 943 109 | 635 751 | -138 710 | -275 847 | 566 712 | -2 076 406 | -1 288 499 |
Capital expenditures | 6 449 075 | 553 938 | 464 132 | 107 563 | 0 | 7 574 708 | 6 081 663 | 142 939 | 179 192 | -38 272 | 0 | 6 365 523 |
Depreciation | 814 988 | 199 548 | 372 756 | 167 453 | -358 | 1 554 387 | 249 271 | 72 448 | 129 779 | 56 234 | -159 | 507 573 |
- In Q1-Q3 of 2019, innovation supplement is under other expenditures, from the end of 2019, it is moved to profit taxes
- In Q1-Q3 of 2019, innovation supplement is under liabilities
- As from 01. 01. 2020, the classification of sales and marketing costs and general overhead and administration costs has been specified at group level. The effect of the reclassification in Q1-Q3 of 2019 is HUF 232 million net.
RÁBA Plc's consolidated report for Q1-Q3 of 2020 in accordance with the IFRS
Q1-Q3 2020 | Q3 2020 | |||||||||||||||||||||||
Vehicles | Inter- | Inter- | ||||||||||||||||||||||
Axles IFRS | Components IFRS | General overhead | segment | Consolidated | Axles IFRS | Vehicles IFRS | Components IFRS | General overhead | segment | Consolidated | ||||||||||||||
IFRS | ||||||||||||||||||||||||
filters | filters | |||||||||||||||||||||||
Revenues | 14 754 | 4 194 442 | 8 298 268 | 516 387 | 0 | 27 763 839 | 4 232 837 | 1 186 580 | 2 949 171 | 181 259 | 0 | 8 549 847 | ||||||||||||
742 | ||||||||||||||||||||||||
Inter-segment revenues | 285 681 | 130 550 | 390 821 | 937 160 | -1 744 212 | -1 | 75 135 | 43 607 | 74 625 | 327 136 | -520 503 | 0 | ||||||||||||
Total revenue from sales | 15 040 423 | 4 324 992 | 8 689 089 | 1 453 546 | -1 744 212 | 27 763 838 | 4 307 972 | 1 230 187 | 3 023 796 | 508 394 | -520 503 | 8 549 847 | ||||||||||||
Direct cost of sales | -12 365 762 | -3 749 622 | -7 452 518 | -292 598 | 1 237 514 | -22 622 987 | -3 527 817 | -1 061 549 | -2 467 009 | -91 099 | 336 176 | -6 811 297 | ||||||||||||
GROSS PROFIT | 2 674 661 | 575 370 | 1 236 571 | 1 160 948 | -506 698 | 5 140 851 | 780 155 | 168 639 | 556 787 | 417 296 | -184 327 | 1 738 549 | ||||||||||||
Sales and marketing costs | -211 684 | -98 046 | -101 174 | -382 | 94 365 | -316 921 | -47 120 | -23 693 | -30 437 | 0 | 28 671 | -72 579 | ||||||||||||
General overhead costs | -2 689 011 | -638 602 | -1 363 834 | -900 715 | 403 062 | -5 189 099 | -719 549 | -91 406 | -419 561 | -304 424 | 155 831 | -1 379 109 | ||||||||||||
Other revenues | 136 482 | 40 172 | 21 179 | 129 714 | -57 913 | 269 634 | 47 419 | 13 744 | 1 581 | 79 021 | -48 202 | 93 562 | ||||||||||||
Other expenditures | -196 828 | -309 947 | -240 171 | -195 042 | 360 | -941 628 | -34 703 | -2 493 | -175 965 | -102 558 | 202 | -315 517 | ||||||||||||
TOTAL OTHER OPERATING | -2 961 041 | -1 006 422 | -1 684 000 | -966 425 | 439 874 | -6 178 015 | -753 952 | -103 848 | -624 382 | -327 962 | 136 501 | -1 673 643 | ||||||||||||
EXPENDITURES | ||||||||||||||||||||||||
REVENUE FROM OPERATIONS | -286 380 | -431 053 | -447 429 | 194 523 | -66 824 | -1 037 164 | 26 202 | 64 791 | -67 595 | 89 334 | -47 826 | 64 906 | ||||||||||||
Interest income | 959 | 14 749 | 4 444 | 15 372 | -30 163 | 5 360 | 31 | 4 865 | 1 759 | 4 316 | -9 167 | 1 804 | ||||||||||||
Interest expenditure | -37 740 | -15 809 | -11 847 | -32 900 | 30 163 | -68 132 | -14 261 | -5 200 | -4 419 | -10 905 | 9 167 | -25 618 | ||||||||||||
Profit tax expenditure | -96 111 | -41 475 | -84 006 | -18 087 | 0 | -239 679 | -31 069 | -10 196 | -32 513 | -2 547 | 0 | -76 325 | ||||||||||||
Assets | ||||||||||||||||||||||||
Real estate, machinery and equipment | 14 989 612 | 1 952 199 | 2 286 758 | 7 031 804 | 10 708 | 26 271 080 | 281 930 | 32 773 | -92 668 | 1 327 | 174 | 223 536 | ||||||||||||
Intangible assets | 56 448 | 29 526 | 5 427 | 9 119 | 0 | 100 520 | -7 715 | -2 975 | -5 004 | -1 392 | 0 | -17 085 | ||||||||||||
Real estate for investment | 0 | 0 | 0 | 808 648 | 0 | 808 648 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||
Other long-term assets | 72 313 | 6 421 | 4 544 | 1 417 635 | -1 414 417 | 86 495 | -15 335 | -1 403 | -991 | -2 615 | 0 | -20 344 | ||||||||||||
Inventories | 4 423 768 | 853 206 | 1 367 931 | 11 807 | -35 530 | 6 621 182 | 45 235 | -87 006 | -477 047 | 3 649 | 0 | -515 169 | ||||||||||||
Receivables | 4 382 810 | 4 219 853 | 2 385 959 | 2 902 401 | -7 128 168 | 6 762 854 | -4 583 | -138 965 | 1 053 483 | -1 129 827 | 615 349 | 395 456 | ||||||||||||
Cash and cash equivalent | 661 421 | 4 084 | 4 167 | 1 547 919 | -1 | 2 217 590 | 79 481 | -137 | -734 | 808 224 | 0 | 886 834 | ||||||||||||
Liabilities | ||||||||||||||||||||||||
Provisions | 71 393 | 160 127 | 55 290 | 0 | 3 | 469 864 | 0 | 0 | 45 000 | 0 | 0 | 103 600 | ||||||||||||
Liabilities | 8 521 103 | 1 291 877 | 2 767 947 | 5 082 393 | -7 128 167 | 10 535 154 | -1 147 535 | -219 471 | 570 424 | 596 871 | 615 349 | 415 639 | ||||||||||||
Capital expenditures | ||||||||||||||||||||||||
Depreciation | 920 162 | 254 483 | 353 752 | 208 853 | 1 710 | 1 738 961 | 314 881 | 84 292 | 117 219 | 71 590 | -174 | 587 808 | ||||||||||||
- As from 01. 01. 2020, the classification of sales and marketing costs and general overhead and administration costs has been specified at group level. The effect of the reclassification in Q1-Q3 of 2019 is HUF 232 million net.
19
PK1. General information pertaining to the financial data | |||||||
Yes | No | ||||||
Audited | |||||||
X | |||||||
Consolidated | |||||||
X | |||||||
Accounting | Hungarian | IFRS | Other | ||||
X | |||||||
principles | |||||||
Other: ………………….. |
Declaration of liability
We, the undersigned, authorised signatories of the Company, hereby declare that the data and statements contained in the quarterly report are true and accurate. The report reflects the true and fair value of the Company's assets, liabilities, financial position, profit and loss, as well as of the situation, development and performance of the business and also describes the main risks and factors of uncertainty. The Company does not conceal any fact that is important for assessing its financial and economic position.
Győr, 11 November, 2020
István Pintér | Béla Balog |
Chairman - Chief Executive Officer | Chief Financial Officer |
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Disclaimer
RÁBA Jarmuipari Holding Nyrt. published this content on 11 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 November 2020 16:52:04 UTC