HALF-YEAR REPORT 2020

consolidated statement of COMPREHENSIVE INCOME

for the first half of 2020 (January 1 to June 30, 2020)

		1st HY 2020		1st HY 2019
		01/01/–06/30/2020		01/01/–06/30/2019
(unaudited)	Note	in CHF 1 000	in %	in CHF 1 000	in %
Net sales		212 263	100.0	331 855	100.0

Change in finished and semi-finished goods and work in progress		-6 896		-8 381
Capitalized self-generated assets		935		1 553
Material cost		-90 898		-149 574
Personnel expenses		-77 438		-102 406
Other operating expenses		-30 627		-39 988
Other operating income		658		1 756
Earnings before interest, taxes, depreciation and amortization (EBITDA) 1)		7 997	3.8	34 815	10.5

Depreciation and amortization		-25 418		-24 274
Operating profit (EBIT) 2)		-17 421	-8.2	10 541	3.2

Financial expenses	2	-8 816		-17 333
Financial income	2	6 288		13 715
Earnings before taxes		-19 949	-9.4	6 923	2.1

Income taxes	3	2 422		-2 263
Net income attributable to Feintool Holding shareholders		-17 527	-8.3	4 660	1.4

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 2020		1st HY 2019
		01/01/–06/30/2020		01/01/–06/30/2019
(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		-7 285		-3 210
Income taxes on recycable items		-799		249

Items that may not be reclassified to profit or loss
Reassessment of net defined benefit liability (asset)		-2 136		-7 181
Income taxes on non recycable items		447		1 618

Total other comprehensive income		-9 773		-8 524

Total comprehensive income attributable to Feintool Holding shareholders		-27 300		-3 864

Net income attributable to Feintool Holding shareholders		-17 527		4 660
Total comprehensive income attributable to Feintool Holding shareholders		-27 300		-3 864

Basic earnings per share (in CHF)		-3.57		0.95
Diluted earnings per share (in CHF)		-3.57		0.95

Number of employees
Number of employees excl. 78 (previous year 90) trainees		2 363		2 725

consolidated balance sheet

for the first half of 2020 (as at June 30, 2020)

		06/30/2020		12/31/2019
(unaudited)	Note	in CHF 1 000	in %	in CHF 1 000	in %
ASSETS
Current assets
Cash and cash equivalents		62 874		43 476
Trade and other receivables		64 828		84 980
Tax receivables		1 150		4 422
Inventories		78 058		85 239
Net contract assets		9 104		8 918
Prepaid expenses and accrued income		9 198		6 109
Total current assets		225 212	32.8	233 144	33.0

Non-current assets
Property, plant and equipment		346 778		357 892
Intangible assets		92 044		95 843
Financial assets		2 645		2 339
Deferred tax assets		19 465		17 061
Total non-current assets		460 932	67.2	473 135	67.0
TOTAL ASSETS		686 144	100.0	706 279	100.0
LIABILITIES
Current liabilities
Financial liabilities		52 149		39 919
Trade and other payables		43 377		82 605
Tax liabilities		64		714
Accrued expenses and deferred income		37 954		33 603
Current provisions		8 723		8 746
Total current liabilities		142 267	20.7	165 587	23.4

Non-current liabilities
Financial liabilities		173 215		144 322
Non-current provisions		2 273		2 437
Deferred tax liabilities		18 924		18 921
Employee benefit liabilities		66 689		65 111
Total non-current liabilities		261 101	38.1	230 791	32.8
Total liabilities		403 368	58.8	396 378	56.1

Equity
Share capital	4	49 148		49 148
Capital reserves		116 744		117 008
Retained earnings		163 388		183 403
Treasury shares		-413		-852
Translation differences		-46 091		-38 806
Total equity		282 776	41.2	309 901	43.9
TOTAL EQUITY AND LIABILITIES		686 144	100.0	706 279	100.0

consolidated statement of changes in equity

for the first half of 2020

in CHF 1 000 (unaudited)	Share capital	Treasury shares	Capital reserves	Retained earnings	Translation differences	Total equity
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 1)	–	–	-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

January 1, 2020	49 148	-852	117 008	183 403	-38 806	309 901
Translation differences	–	–	–	–	-7 285	-7 285
Reassessment of net defined benefit liability (asset), net of tax	–	–	–	-1 689	–	-1 689
Other line items	–	–	–	-799	–	-799
Total other comprehensive income	–	–	–	-2 488	-7 285	-9 773
Net income attributable to Feintool Holding shareholders	–	–	–	-17 527	–	-17 527
Total comprehensive income attributable to Feintool Holding shareholders	–	–	–	-20 015	-7 285	-27 300
Share-based management remuneration 2)	–	439	-264	–	–	175
June 30, 2020	49 148	-413	116 744	163 388	-46 091	282 776

1) 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.

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

consolidated statement of cash flows

for the first half of 2020

	1st HY 2020	1st HY 2019
	01/01/–06/30/2020	01/01/–06/30/2019
(unaudited)	in CHF 1 000	in CHF 1 000
Net income of the Feintool Group	-17 527	4 660
Depreciation and amortization	25 418	24 274
(Gain)/loss on disposal of property, plant and equipment	67	199
Increase/(decrease) in provisions and valuation allowances	1 131	3 840
Other non-cash changes	-517	-2 500
Income taxes	-2 422	2 263
Cash flows from operating activities before change in net working capital (NWC)	6 150	32 736

Increase/decrease in:
Accounts receivables	19 000	-4 469
Inventories and net contract assets	4 371	-5 609
Prepaid and accrued expenses and income	1 501	8 788
Accounts payables	-38 019	-8 428
Other net working capital (NWC)	6 417	2 043
Income taxes paid	979	-7 450
Cash flows from operating activities	399	17 611

Investments in property, plant and equipment	-19 122	-22 372
Disposals of property, plant and equipment	238	636
Investments in intangible assets	-667	-1 270
Disposals of intangible assets	1	1
Decrease in financial assets	194	450
Cash flows from investing activities	-19 356	-22 555

Free cash flow 1)	-18 957	-4 944

1) Includes the cash flows from operating activities and the cash flows from investing activities

		1st HY 2020	1st HY 2019
		01/01/–06/30/2020	01/01/–06/30/2019
(unaudited)	Note	in CHF 1 000	in CHF 1 000
Dividends paid	5	–	-9 805
Borrowing of interest-bearing liabilities		54 179	29 483
Repayment of financial lease liabilities		-5 894	-8 688
Repayment of interest-bearing liabilities		-6 470	-1 251
Cash flows from financing activities		41 815	9 739

Translation differences Cash and cash equivalents		-3 460	-1 509

Increase in cash and cash equivalents		19 398	3 286

Cash and cash equivalents at the beginning of the period		43 476	30 872
Cash and cash equivalents at the end of the period		62 874	34 158

Interest paid		-1 608	-1 196
Interest received		22	77

Lease payments are classified as follows on the statement of cash flows:

Cash payments for the amortization portion are recognized as financing activities.

Cash payments for the interest portion are recognized in cash flow from operating activities.

Cash payments for non-capitalized leases are recognized in cash flow from operating activities.