HALF-YEAR REPORT 2019

consolidated statement of comprehensive income

for the first half of 2019 (January 1 to June 30, 2019)

1st HY 2019

1st HY 2018

01/01/-06/30/2019

01/01/-06/30/2018

(unaudited)

Note

in CHF 1 000

in %

in CHF 1 000

in %

Net sales

331 855

100.0

337 259

100.0

Change in finished and semi-finished goods and work in progress

-8 381

2 497

Capitalized self-generated assets

1 553

1 556

Material cost

-149 574

-157 025

Personnel expenses

-102 406

-97 605

Other operating expenses

-39 988

-42 545

Other operating income

1 756

1 261

Earnings before interest, taxes, depreciation and amortization (EBITDA) 1)

34 815

10.5

45 398

13.5

Depreciation and amortization

-24 274

-19 692

Operating profit (EBIT) 2)

10 541

3.2

25 706

7.6

Financial expenses

2

-17 333

-12 132

Financial income

2

13 715

10 472

Earnings before taxes

6 923

2.1

24 046

7.1

Income taxes

-2 263

-7 192

Net income attributable to Feintool Holding shareholders

4 660

1.4

16 854

5.0

1) Includes the operating result before depreciation and amortization, (net) financial income and income tax.

2) Includes the operating result before (net) financial income and income tax.

1st HY 2019

1st HY 2018

01/01/-06/30/2019

01/01/-06/30/2018

(unaudited)

Note

in CHF 1 000

in %

in CHF 1 000

in %

Other comprehensive income

Items that may be reclassified to profit or loss

Translation differences

-3 210

1 407

Income taxes on recycable items

249

–

Items that may not be reclassified to profit or loss

Reassessment of net defined benefit liability (asset)

-7 181

2 600

Income taxes on non recycable items

1 618

-597

Total other comprehensive income

-8 524

3 410

Total comprehensive income attributable to Feintool Holding shareholders

-3 864

20 264

Net income attributable to Feintool Holding shareholders

4 660

16 854

Total comprehensive income attributable to Feintool Holding shareholders

-3 864

20 264

Basic earnings per share (in CHF)

0.95

3.78

Diluted earnings per share (in CHF)

0.95

3.78

Number of employees

Number of employees excl. 90 (previous year 68) trainees

2 725

2 604

consolidated balance sheet

for the first half of 2019 (as at June 30, 2019)

06/30/2019

12/31/2018

(unaudited)

Note

in CHF 1 000

in %

in CHF 1 000

in %

ASSETS

Current assets

Cash and cash equivalents

34 158

30 872

Trade and other receivables

104 874

101 029

Tax receivables

774

288

Inventories

91 218

93 421

Net contract assets

12 110

6 424

Prepaid expenses and accrued income

6 711

6 779

Total current assets

249 845

34.4

238 813

33.9

Non-current assets

Property, plant and equipment

355 387

347 016

Intangible assets

99 000

101 249

Financial assets

1 782

1 750

Deferred tax assets

19 380

16 452

Total non-current assets

475 549

65.6

466 467

66.1

TOTAL ASSETS

725 394

100.0

705 280

100.0

LIABILITIES

Current liabilities

Financial liabilities

102 649

73 790

Trade and other payables

63 338

72 062

Tax liabilities

1 469

6 165

Accrued expenses and deferred income

45 611

37 079

Current provisions

11 130

8 114

Total current liabilities

224 197

30.9

197 210

28.0

Non-current liabilities

Financial liabilities

106 265

104 950

Non-current provisions

2 362

2 379

Deferred tax liabilities

18 867

20 931

Employee benefit liabilities

66 436

59 049

Total non-current liabilities

193 930

26.7

187 309

26.7

Total liabilities

418 127

57.6

384 519

54.5

Equity

Share capital

3

49 148

49 148

Capital reserves

117 120

127 269

Retained earnings

175 947

176 601

Treasury shares

-1 261

-1 780

Translation differences

-33 687

-30 477

Total equity

307 267

42.4

320 761

45.5

TOTAL EQUITY AND LIABILITIES

725 394

100.0

705 280

100.0

consolidated statement of changes in equity

for the first half of 2019

in CHF 1 000 (unaudited)

Share capital

Treasury shares

Capital reserves

Retained earnings

Translation differences

Total equity

January 1, 2018

44 630

-703

90 929

145 643

-25 277

255 222

Translation differences

–

–

–

–

1 407

1 407

Reassessment of net defined benefit liability (asset), net of tax

–

–

–

1 989

–

1 989

Other line items

–

–

–

12

–

12

Total other comprehensive income

–

–

–

2 001

1 407

3 408

Net income attributable to Feintool Holding shareholders

–

–

–

16 854

16 854

Total comprehensive income attributable to Feintool Holding shareholders

–

–

–

18 855

1 407

20 262

Dividend 1)

–

–

-8 924

–

–

-8 924

Share-based management remuneration 2)

–

600

-228

–

–

372

June 30, 2018

44 630

-103

81 777

164 498

-23 870

266 932

January 1, 2019

49 148

-1 780

127 269

176 601

-30 477

320 761

Translation differences

–

–

–

–

-3 210

-3 210

Reassessment of net defined benefit liability (asset), net of tax

–

–

–

-5 563

–

-5 563

Other line items

–

–

–

249

–

249

Total other comprehensive income

–

–

–

-5 314

-3 210

-8 524

Net income attributable to Feintool Holding shareholders

–

–

–

4 660

–

4 660

Total comprehensive income attributable to Feintool Holding shareholders

–

–

–

-654

-3 210

-3 864

Dividend 3)

–

–

-9 805

–

–

-9 805

Share-based management remuneration 2)

–

519

-344

–

–

175

June 30, 2019

49 148

-1 261

117 120

175 947

-33 687

307 267

1) The General Meeting held on April 24, 2018 approved the Board of Directors' proposed dividend distribution of CHF 2.00 per registered share from earnings for the financial year ended December 31, 2017.

2) The share based management remuneration involves payment of part of the salary in shares.

3) The General Meeting held on April 30, 2019 approved the Board of Directors' proposed dividend distribution of CHF 2.00 per registered share from earnings for the financial year ended December 31, 2018.

consolidated statement of cash flows

for the first half of 2019

1st HY 2019

1st HY 2018

01/01/-06/30/2019

01/01/-06/30/2018

(unaudited)

in CHF 1 000

in CHF 1 000

Net income of the Feintool Group

4 660

16 854

Depreciation and amortization

24 274

19 692

(Gain)/loss on disposal of property, plant and equipment

199

-393

Increase/(decrease) in provisions and valuation allowances

3 840

4 252

(Increase)/decrease in deferred taxes

-4 885

12

Other non-cash changes

1 866

-684

Income taxes

2 263

7 192

Cash flows from operating activities before change in net working capital (NWC)

32 217

46 925

Increase/decrease in:

Accounts receivables

-4 469

-10 226

Inventories and net contract assets

-5 609

-6 692

Prepaid and accrued expenses and income

8 788

3 627

Accounts payables

-8 428

-1 492

Other net working capital (NWC)

2 043

-600

Income taxes paid

-7 450

-6 685

Cash flows from operating activities

17 092

24 857

Investments in property, plant and equipment

-22 372

-52 730

Disposals of property, plant and equipment

636

3 793

Investments in intangible assets

-1 270

-1 641

Disposals of intangible assets

1

–

Decrease in financial assets

450

476

Cash flows from investing activities

-22 555

-50 102

Free cash flow

-5 463

-25 245

1st HY 2019

1st HY 2018

01/01/-06/30/2019

01/01/-06/30/2018

(unaudited)

Note

in CHF 1 000

in CHF 1 000

Dividends paid

4

-9 805

-8 924

Sale of treasury shares

519

599

Borrowing of interest-bearing liabilities

29 483

35 636

Repayment of financial lease liabilities

-8 688

-5 426

Repayment of interest-bearing liabilities

-1 251

-11 372

Cash flows from financing activities

10 258

10 513

Increase/(decrease) in cash and cash equivalents

3 286

-15 087

Cash and cash equivalents at the beginning of the period

30 872

52 384

Translation differences

-1 509

-355

Cash and cash equivalents at the end of the period

34 158

37 297

Interest paid

-1 196

-938

Interest received

77

31