Notes to the interim consolidated financial statements
1 Principles of consolidated accounting
Accounting
The unaudited interim consolidated financial statements as of June 30, 2019, conform to the existing guidelines of Swiss GAAP FER in general and Swiss GAAP FER 31 “Supplementary recommendation for listed companies“ in particular.
The interim consolidated financial statements should be read in conjunction with the consolidated financial statements as of December 31, 2018, because they do not include all the information contained in the consolidated financial statements.
The interim consolidated financial statements relate to the period from January 1, 2019, to June 30, 2019, and were approved for publication by the Board of Directors on August 8, 2019.
Consolidation
The interim consolidated financial statements include Conzzeta AG and the companies directly or indirectly controlled by Conzzeta AG, through investments with more than 50% of the votes, directly or indirectly, or by another means, and uniformly managed. These investments are fully consolidated. The share of the minority shareholders in the net assets and Group result is disclosed separately. Intragroup receivables and payables as well as expenses and income are offset against each other, and intragroup profits have been eliminated. The assets and liabilities of companies included in consolidation for the first time are measured at fair value. Goodwill arising from this revaluation is offset against equity. First-time consolidations are included from the date on which control is acquired; deconsolidations from the date on which control is relinquished. Investments in associates (at least 20%, but less than 50% of the voting rights) are accounted for under the equity method. Securities held as fixed assets are valued at acquisition cost, less any necessary value adjustments.
Significant estimates made by management
In preparing the interim consolidated financial statements, certain assumptions must be made which affect the accounting basis to be used and the amounts reported as assets, liabilities, income and expenses and the presentation of these amounts. Management did not make any material assumptions or estimates in the interim consolidated financial statements that were new compared to those made in the consolidated financial statements as of December 31, 2018.
2 Segment information
CHF million |
Net revenue |
Total revenue |
Operating result (EBIT) |
|
||||||||
January – June |
2019 |
|
2018 |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sheet Metal Processing |
448.6 |
|
477.3 |
|
461.9 |
|
500.1 |
|
57.8 |
|
62.6 |
|
Chemical Specialties |
181.4 |
|
202.8 |
|
180.2 |
|
201.4 |
|
8.6 |
|
9.2 |
|
Outdoor |
117.9 |
|
111.1 |
|
117.9 |
|
111.1 |
|
–5.3 |
|
–6.4 |
|
Discontinued operations (Glass Processing) |
22.4 |
|
62.4 |
|
27.8 |
|
63.5 |
|
31.8 |
|
2.9 |
|
Total as per segment reporting |
770.3 |
|
853.6 |
|
787.9 |
|
876.1 |
|
92.9 |
|
68.3 |
|
Other |
–0.2 |
|
–0.3 |
|
–0.2 |
|
–0.3 |
|
–2.3 |
|
–2.0 |
|
Total as per income statement |
770.1 |
|
853.3 |
|
787.7 |
|
875.8 |
|
90.5 |
|
66.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHF million |
NOA |
Employees |
|
|
|
|
|
|||||
June 30, |
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sheet Metal Processing |
239.7 |
|
177.6 |
|
3’003 |
|
2’687 |
|
|
|
|
|
Chemical Specialties |
165.8 |
|
188.3 |
|
1’122 |
|
1’122 |
|
|
|
|
|
Outdoor |
134.6 |
|
115.3 |
|
861 |
|
774 |
|
|
|
|
|
Discontinued operations (Glass Processing) |
|
|
22.7 |
|
|
|
445 |
|
|
|
|
|
Total as per balance sheet |
540.1 |
|
503.9 |
|
4’986 |
|
5’028 |
|
|
|
|
|
Other |
2.8 |
|
–2.6 |
|
28 |
|
28 |
|
|
|
|
|
Total as per balance sheet |
542.9 |
|
501.3 |
|
5’014 |
|
5’056 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations
The Glass Processing segment, which was sold with effect as of April 1, 2019, is shown under discontinued operations in the segment reporting. Its net revenue, total revenue and operating result for 2019 comprise a 3-month period, whereas the comparison period comprises a 6-month period.
Definition of net operating assets
Net operating assets (NOA) include the operating current and fixed assets (not including cash, cash equivalents and securities, non-operating financial assets and deferred tax assets) less operating liabilities (not including financial liabilities and deferred tax liabilities).
3 Changes in the scope of consolidation
Conzzeta sold the Glass Processing segment to the Finnish company Glaston Corporation effective as of April 1, 2019.
The Business Unit Schmid Rhyner acquired a 100% stake in ISAtec GmbH, Wohlenschwil, Switzerland, effective March 23, 2018, and the Business Unit Bystronic took over 100% of TTM Laser S.p.A. Cazzago San Martino, Italy, effective April 12, 2018.
The sale of the segment Glass Processing in 2019 and the acquisitions of the two companies in 2018 resulted in a negative impact of CHF 24.4 million on net revenue for the first half of 2019. In the first half of 2018, the acquired companies contributed a total of CHF 4.5 million to net revenue.
3.1 Sale of the Glass Processing segment
The transaction gave rise to a tax-free gain from disposal of CHF 30.6 million, which is reported under “Other operating income“.
|
|
|
CHF million |
April 1, 2019 |
|
|
|
|
Current assets |
57.2 |
|
Non-current assets |
9.3 |
|
Assets |
66.4 |
|
Short-term liabilities |
51.1 |
|
Long-term liabilities |
1.0 |
|
Liabilities |
52.0 |
|
Net assets divested |
14.4 |
|
|
|
|
Consideration |
63.5 |
|
Net assets divested |
–14.4 |
|
Transaction costs |
–3.8 |
|
Recycling of currency translation adjustments |
–14.7 |
|
Gain on disposal |
30.6 |
|
|
|
|
Consideration |
63.5 |
|
Transaction costs already paid |
–2.7 |
|
Cash and cash equivalents disposed of |
–5.7 |
|
Settlement intercompany receivable/debt |
19.6 |
|
Net cash inflow |
74.7 |
|
|
|
|
3.2 Additional information on continuing and discontinued operations
The following table shows the income statement divided into continuing and discontinued operations. The discontinued operations include the Glass Processing segment until the closing of the transaction effective April 1, 2019, as well as the gain from disposal of CHF 30.6 million that was recorded in the first half of 2019 under “Other operating income“.
CHF million |
Continuing operations |
|
Discontinued operations |
|
Total Group |
|
||||||
January – June |
2019 |
|
2018 |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue |
747.8 |
|
790.9 |
|
22.4 |
|
62.4 |
|
770.1 |
|
853.3 |
|
Changes in inventories of finished goods, work in progress and own work capitalized |
12.1 |
|
21.5 |
|
5.5 |
|
1.1 |
|
17.6 |
|
22.5 |
|
Total revenue |
759.9 |
|
812.3 |
|
27.8 |
|
63.5 |
|
787.7 |
|
875.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other operating income |
5.6 |
|
4.2 |
|
31.0 |
|
0.3 |
|
36.6 |
|
4.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Material expenses |
–353.0 |
|
–415.2 |
|
–12.9 |
|
–28.9 |
|
–365.8 |
|
–444.1 |
|
Personnel expenses |
–187.8 |
|
–173.1 |
|
–10.5 |
|
–20.8 |
|
–198.3 |
|
–193.9 |
|
Other operating expenses |
–147.7 |
|
–148.7 |
|
–3.4 |
|
–10.5 |
|
–151.0 |
|
–159.3 |
|
Depreciation/impairments on property, plant and equipment |
–14.7 |
|
–13.5 |
|
–0.3 |
|
–0.6 |
|
–15.0 |
|
–14.1 |
|
Depreciation/impairments on intangible assets |
–3.6 |
|
–2.6 |
|
|
|
|
|
–3.6 |
|
–2.6 |
|
Operating result (EBIT) |
58.8 |
|
63.3 |
|
31.8 |
|
2.9 |
|
90.5 |
|
66.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial result |
1.4 |
|
0.6 |
|
|
|
–0.5 |
|
1.4 |
|
0.1 |
|
Result before taxes |
60.1 |
|
64.0 |
|
31.8 |
|
2.4 |
|
91.9 |
|
66.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes |
–13.2 |
|
–14.9 |
|
–0.5 |
|
–0.4 |
|
–13.7 |
|
–15.3 |
|
Group result |
46.9 |
|
49.1 |
|
31.3 |
|
2.1 |
|
78.2 |
|
51.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4 Seasonality
Due to the fact that business is strong in the winter season, the Outdoor segment usually reports higher revenue and higher margins in the second half of the year than in the first half. The other segments are not subject to any regular seasonal influences.
5 Dividends
At the Annual General Meeting on April 16, 2019, a resolution was adopted to pay a dividend of CHF 18.00 for each class A registered share and a dividend of CHF 3.60 for each class B registered share. This distribution was made only in respect of outstanding shares and totaled CHF 37,2 million.
6 Events after the balance sheet date
In May 2019, Bystronic Laser AG, Niederönz, Switzerland, exercised an option to purchase an additional 19% share in the capital of Shenzhen DNE Laser Science and Technology Co. Ltd., Shenzen, China. The closing of the transaction is scheduled for the third quarter of 2019 and will lead to an increase in the capital share from 51% to 70%.
7 Currency translation rates
CHF |
|
|
|
Half-year-end exchange rates 2019 |
|
Year-end exchange rates 2018 |
|
Half-year average rates 2019 |
|
Half-year average rates 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Euro area |
1 |
EUR |
|
1.11 |
|
1.13 |
|
1.13 |
|
1.17 |
|
USA |
1 |
USD |
|
0.98 |
|
0.98 |
|
1.00 |
|
0.96 |
|
Great Britain |
1 |
GBP |
|
1.24 |
|
1.26 |
|
1.30 |
|
1.33 |
|
Sweden |
100 |
SEK |
|
10.51 |
|
10.99 |
|
10.77 |
|
11.54 |
|
China |
100 |
CNY |
|
14.20 |
|
14.31 |
|
14.76 |
|
15.13 |
|
South Korea |
100 |
KRW |
|
0.08 |
|
0.09 |
|
0.09 |
|
0.09 |
|
Japan |
100 |
JPY |
|
0.91 |
|
0.90 |
|
0.91 |
|
0.89 |
|
|
|
|
|
|
|
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