3-month report 2017ircenter.handelsblatt.com/download/companies... · 31/03/16 30/06/16 30/09/16...

3-MONTH REPORT 2017

2SMT Scharf | Business trends | Management report | Financial statements | Notes

KEY SHARE DATA

Ticker / ISINS4A /

DE0005751986

Number of shares 4,200,000

Closing price (March 31, 2017)*

EUR 13.71

Price high/low*EUR 14.42/ EUR 10.10

Share price performance (LTM on March 31, 2017)

28 %

SDAX performance (LTM on March 31, 2017)

15 %

Peer group portfolio performance (LTM on March 31, 2017)

60 %

Market capitalisation, excluding treasury shares (March 31, 2016)**

EUR 56.904 million

*Closing prices of XETRA order book system

SHARE PRICE CHART

12

8

(EUR)

31/03/16 30/06/16 30/09/16 31/12/16 31/03/17

16

20

4

SMT Scharf SDAX Peer Group

SHAREHOLDER STRUCTURE

Shareholder pool Shareholder Value Beteiligungen AG /Share value Stiftung/Christiane Weispfenning

Free float

Axxion S.A.

Overseas Asset Management (Cayman), LTD

BNY Mellon Service Kapital-anlage-Gesellschaft GmbH

First Eagle Investment Management

Treasury shares

15.09%

5.57%

5.15%

5.14%3.59%

1.18%

64.28%

Free fl oat according to Deutsche Börse defi nition (all interests of less than 5 % excluding treasury shares): 67.63 %

FINANCIAL CALENDAR

August 14, 2017 2017 6M report

November 13, 2017 2017 9M report

December 31, 2017 Fiscal year-end

LETTER TO SHAREHOLDERS

Dear shareholders,

It is gratifying that the recovery in SMT Scharf‘s new order intake and revenue positions that was evident last year has continued during the new fi scal year. The company has already started on its new fi scal year with a high order book position, and the order book position by the end of the fi rst quarter has tripled compared with the previous year‘s reporting date thanks to dynamic growth in new order intake in the fi rst quarter of 2017. This forms a fi rm foundation for SMT Scharf‘s business growth over the coming months. Although revenue of EUR 10.6 million during the fi rst three months was slightly below the revenue achieved in the previous year‘s corresponding quarter (Q1/2016: EUR 11.4 million), last year‘s fi gure was affected positively by a number of special effects.

The profi t from operating activities (EBIT) of EUR 816 thousand has also decreased compared with the corresponding previous year‘s result (Q1/2016: EUR 1,478 thousand). This reduction is chiefl y attributable to lower other operating income of EUR 624 thousand (Q1/2016: EUR 1,327 thousand), which in the previous year was also impacted positively by special effects. Items during this reporting period included the release of provisions that had been formed in 2015 as part of risk provisioning.

An analysis in terms of core markets shows that Russia was the main sales revenue driver in the reporting period, where a signifi cantly growing number of orders were acquired and processed in the rail systems area. The proportional revenue in this market was up by 5.7 % compared with the previous year‘s quarter. In terms of total sales revenue in the reporting period, 42 % was attributable to Russia as a consequence. Markets in Africa also performed particularly well, while sales revenues in China recorded a marked reduction of almost one third (-31.9 %). Although Asia‘s most important economy has picked up again, consolidation and market rationalisation among mine operators continues to progress. This situation is leading to friction in the market short-term. Long-term, however, it is expected that SMT Scharf will benefi t from this trend, as a small number of dominant participants will remain at the end of the rationalisation process that will be dependent on the expertise of premium providers such as SMT Scharf due to their size and the structure of their production sites.

We would like to take this opportunity to thank you for your confi dence placed in us and the constructive cooperation. We would be pleased if you continued to share this journey with us.

Kind regards

Hans Joachim Theiß Rolf F. Oberhaus Wolfgang Embert

KEY GROUP DATA2015 2016 Q1/2016 Q1/2017

RevenueEUR

thousand50.303 42.565 11.396 10.606

Total operating revenue

EUR thousand

50.016 42.241 11.148 11.648

EBITEUR

thousand2.263 2.473 1.478 816

EBIT margin on total operating revenue

% 4,5 5,9 13,3 7,0

Group net profi t/lossEUR

thousand1.472 1.873 1.379 826

EquityEUR

thousand37.025 39.297 37.214 40.706

Equity ratio % 63,2 66,1 62,9 67,1

FTE (full-time employees)

on reporting

date281 308 290 304


BUSINESS TRENDS

New order intake in the fi rst quarter of 2017 of EUR 10,290 thousand represented a doubling year-on-year (Q1/2016: EUR 5,147 thousand). The order book position as of March 31, 2017 stood at EUR 15,484 thousand, refl ecting a tripling compared with the previous year‘s reporting date (March 31, 2016: EUR 5,051 thousand). In terms of operating segments, the largest revenue share – 83 % – continued to be attributable to the Coal area (Q1/2016: 89 %). Signifi cant revenues had not yet been achieved in the new business area of Tunnel Logistics in the reporting period. The Service businesses continued to account for a stably high share of 66 % (Q1/2016: 62 %).

Earnings per share were unchanged at EUR 0.20 per share (Q1/2016: EUR 0.20).

The number of individuals employed within the corporate Group association (on an FTE basis) was up year-on-year to 304 as of March 31, 2017 (March 31, 2016: 290 FTEs). Of these, 25 FTE work in the „Non-Coalmining“ segment, 277 FTE in the „Coalmining“ segment, and 2 FTE in the “Tunnel” segment.

Revenue share by segment

11%

Q1/2016 Q1/2017

89%

17%0%

0%

83%

Coal Non-Coal Tunnel

EUR million

1.2

11.4

10.2

1.8

10.6

8.8

Revenue share by region

9%

Q1/2016 Q1/2017

9%14%11%

20%

37%

6%8%

10%17%

17%

42%

Russia Poland ChinaAfrica Germany Other

EUR million

1.011.4

1.01.61.2

2.3

4.2

0.6

10,6

1.8

4.4

1.81.10.9

Revenue share by business type

38%

Q1/2016 Q1/2017

62%

34%

66%

Service New systems

EUR million

4.3

11.4

7.1

3.6

10.6

7.0


• Net working capital defined as the sum of inventories, trade receivables and other assets, less current provisions, trade payables, current bank borrowings and other liabilities and advance payments as of the respective reporting date.

• Average net working capital of EUR 25,809 thousand for the last twelve months as of the March 31, 2017 reporting date (LTM, calculated from quarterly figures) in relationship to the last twelve months‘ (LTM) rolling consolidated revenue as of the reporting date of EUR 41,774 thousand equivalent to net working capital intensity of 61.7 %.

• New order intake in the first quarter of 2017 of EUR 10,290 thousand doubled year-on-year (Q1/2016: EUR 5,147 thousand).

• Order book position as of March 31, 2017 at EUR 15,484 thousand reflects a tripling compared with the previous year‘s reporting date (March 31, 2016: EUR 5,051 thousand).

• EBIT in the first quarter of 2017 at a reduced level of EUR 816 thousand (Q1/2016: EUR 1,478 thousand), mainly reflecting lower other operating income of EUR 624 thousand (Q1/2016: EUR 1,327 thousand).

• EBIT margin (based on total operating revenue) at 7.0 % in the first quarter of 2017 (Q1/2016: 13.3 %).

• Last twelve months‘ (LTM) rolling EBIT of EUR 1,812 thousand as of the March 31, 2017 reporting date.

• Reduction in consolidated revenue compared with the previous year‘s quarter of 6.9 % to EUR 10,606 thousand (Q1/2016: EUR 11,396 thousand). Orders with a total volume exceeding EUR 5 million from the 2015 year-end led to corresponding revenues only at the start of 2016 - the previous year‘s figure is increased accordingly.

• Last twelve months‘ (LTM) rolling consolidated revenue of EUR 41,774 thousand as of March 31, 2017 reporting date.

Group revenue

Q1/2016 Q2/2016 Q3/2016 Q4/2016 Q1/2017

EUR million

7.711.4

15.9

7.610.6

Operating result (EBIT)

EUR million

0.1

1.5

0.9

0.0

0.8

Q1/2016 Q2/2016 Q3/2016 Q4/2016 Q1/2017

New order intake

Q1/2016 Q2/2016 Q3/2016 Q4/2016 Q1/2017

EUR million

12.9

5.1

19.4

9.7 10.3

Net working capital (Ø LTM) / Group revenue LTM

Q1/2016 Q2/2016 Q3/2016 Q4/2016 Q1/2017

Consulidated revenue LTM Net working capital (Ø LTM)Net working capital (Ø LTM)/Consulidated revenue LTM

EUR million %

50

60

40

30

20

10

50

60

40

30

20

10

ECONOMIC AND BUSINESS REPORT


EVENTS AFTER THE BALANCE SHEET DATE

Following the end of the first three months of 2017, no further events occurred that have a significant effect on the financial position and performance.

OUTLOOK

Risks to the global economy have reduced over the past months. As a consequence, the prospects are good that although the global economy will report moderate growth up until next year, such growth will nevertheless be stable – according to the International Monetary Fund – with recovery in emerging economies advancing. For this reason, raw materials production will resume its long-term growth, and recovery in the worldwide market for mining equipment is anticipated.

Consequently, the SMT Scharf Managing Board envisages revenue in its existing planning for the full 2017 fiscal year in a range between at least EUR 40 million and up to EUR 44 million and EBIT between EUR 2.2 million and to over EUR 3.0 million. If the positive business trend based on current quarterly figures continues unabated, the company‘s management is confident that revenue of EUR 42.3 million and EBIT of EUR 2.75 million is realistically achievable on a full-year basis. This forecast will be updated in the middle of the year once visibility improves.


EUR thousand 31/03/2017 31/03/2016 31/12/2016

Assets

Intangible assets 1,348 2,220 1,373

Property, plant and equipment 4,716 5,187 4,656

Participating interests 3,736 3,525 3,743

Deferred tax assets 3,265 2,508 3,259

Other non-current receivables / assets 742 980 733

Non-current assets 13,807 14,420 13,764

Inventories 15,758 13,888 13,009

Trade receivables 23,047 23,263 23,374

Other current receivables / assets 2,980 1,971 2,627

Cash and cash equivalents 5,081 5,612 6,638

Current assets 46,866 44,734 45,648

Total assets 60,673 59,154 59,412

CONSOLIDATED BALANCE SHEET

EUR 31/03/2017 31/03/2016 31/12/2016

Equity and liabilities

Subscribed share capital 4,151 4,141 4,151

Share premium 11.642 11,615 11,642

Profit brought forward 27.577 25,792 26,751

Currency translation difference -2.666 -4,334 -3,247

Equity 40,706 37,214 39,297

Provisions for pensions 3,593 3,293 3,590

Other non-current provisions 332 391 349

Deferred tax liabilities 93 802 96

Non-current financial liabilities 1,243 1,976 1,313

Other non-current liabilities 0 144 0

Non-current provisions and liabilities 5,261 6,606 5,348

Current income tax 1,198 480 1,441

Other current provisions 5,559 6,536 5,107

Advance payments received 522 1,062 477

Trade payables 4,153 2,956 4,058

Current financial liabilities 1,837 3,142 2,183

Other current liabilities 1,437 1,158 1,501

Current provisions and liabilities 14,706 15,334 14,767

Total equity and liabilities 60,673 59,154 59,412


CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

EUR thousand Q1/2017 Q1/2016

Revenue 10,606 11,396

Changes in inventories 1,042 -248

Total operating revenue (100 %) 11,648 11,148

Other operating income 624 1,327

Cost of materials 5,972 5,123

Personnel expenses 3,111 2,929

Depreciation, amortisation and impairment losses 307 415

Other operating expenses 2,066 2,530

Profit/loss from operating activities (EBIT) 816 1,478

Income from participating interests 46 312

Interest income 39 16

Interest expenses 15 54

Financial result 70 274

Profit before tax 886 1,752

Income taxes 60 373

Group net profit/loss 826 1,379

Currency difference from translation of foreign financial statements 581 -510

Total comprehensive income 1,407 869

Earnings per share (in EUR)

Basic 0.20 0.33

Diluted 0.20 0.33

Average number of shares 4,150,523 4,140,523


EUR thousand Q1/2017 Q1/2016

Group net profit 826 1,379

- Income from interests accounted at equity -46 -312

+ Depreciation and amortisation of long-term assets 307 415

+ Loss on the disposal of assets 0 12

+/- Increase/decrease of provisions 437 118

-/+ increase/decrease of inventories, trade receivables and other assets not attributable to investing or financing activities

-1,853 -1,039

+/- Increase/decrease of trade liabilities and other liabilities not attributable to investing or financing activities

-374 -422

+/- booked income taxes 226 373

+/- booked financial expenses -25 38

-/+ income taxes paid/received -499 -58

Net cash flows from operating activities -1,001 504

+ Payments from the disposal of property, plant and equipment 42 0

- Payments for investments in property, plant and equipment -269 -333

+ Payments from the disposal of intangible assets 3 0

- Payments for investments in intangible assets -65 -6

+ Interest received 33 16

Net cash flows used in investing activities -256 -323

+ Deposits from the raising of financial loans 0 253

- Repayments of financial loans -70 0

- Interest paid -25 -34

-/+ Change in hardship and social funds -68 2

Net cash flows from/used in financing activities -163 221

Change in net financial position -1,420 402

Effect of changes in exchange rates and Group composition 296 15

Net financial position at start of period 4,098 4,708

Net financial position at end of period 2,974 5,125

CONSOLIDATED CASH FLOW STATEMENT


SELECTED NOTES TO THE FINANCIAL STATEMENTS

Coalmining Non-coalmining Tunnel logistics Not allocated SMT Scharf Group

EUR thousandQ1/

2017Q1/

2016Q1/

2017Q1/

2016Q1/

2017Q1/

2016Q1/

2017Q1/

2016Q1/

2017Q1/

2016

Revenue 8.840 10.174 1.765 1.222 1 - - - 10.606 11.396

Operating result (EBIT) 665 1.338 233 140 -82 - - - 816 1.478

Earnings from equity accounted investments 46 312 - - - - - - 46 312

Segment assets 52.706 52.701 4.474 3.945 228 - 3.265 2.508 60.673 59.154

Segment liabilities 18.595 20.622 1.209 516 69 - 93 802 19.666 21.940

Segment investments 328 339 6 5 - - - - 334 344

Interests in equity accounted investments - 3.525 - - - - - - - 3.525

Depreciation and amortisation 293 403 13 12 1 - - - 307 415

FTE 277 259 25 31 2 - - - 304 290

Segment report

The new segment „Tunnel“ was founded as part of the acquisition of Nowilan GmbH. Since then, the business of the SMT Scharf Group has been divided into three operating segments. Intersegment revenues and inputs are of minor significance, and are not reported separately.

Inventories

Inventories are composed as follows:

EUR thousand 31/03/2017 31/03/2016 31/12/2016

Raw materials, consumables and supplies 2,992 2,637 2,894

Work in progress 8,213 7,238 5,251

Finished goods and merchandise 4,553 4,013 4,864

Carrying amount 15,758 13,888 13,009


IMPRINT

Publisher

SMT Scharf AG Römerstraße 104 59075 Hamm Germany Tel.: +49 (0) 2381-960 – 212 Fax: +49 (0) 2381-960 – 311

E-Mail: [email protected] www.smtscharf.com

Investor relations contact

cometis AG Henryk Deter / Maximilian Breuer Unter den Eichen 7 65195 Wiesbaden Germany Tel.: +49 611 20 58 55 – 22 Fax: +49 611 20 58 55 – 66

E-Mail: [email protected] www.cometis.de

Konzept, Redaktion, Layout & Satz

cometis AG

DISCLAIMER

The Report of the first quarter is also available in English. In case of differences the German version prevails. The digital version of the Annual Report and the Interim Reports can be downloaded at www.smtscharf.com in the category “Investor Realations / Publications / Financial reports”.

3-month report 2017ircenter.handelsblatt.com/download/companies... · 31/03/16 30/06/16 30/09/16...

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