HALF-YEAR REPORT 2021

consolidated statement of COMPREHENSIVE INCOME

for the first half of 2021 (January 1 to June 30, 2021)

		1st HY 2021		1st HY 2020
		01/01/–06/30/2021		01/01/–06/30/2020
(unaudited)	Note	in CHF 1 000	in %	in CHF 1 000	in %
Net sales		302 620	100.0	212 263	100.0

Change in finished and semi-finished goods and work in progress		13 176		-6 896
Capitalized self-generated assets		686		935
Material expenses		-138 882		-90 898
Personnel expenses		-95 084		-77 438
Other operating expenses		-38 272		-30 627
Other operating income 1)		11 095		658
Earnings before interest, taxes, depreciation and amortization (EBITDA) 2)		55 339	18.3	7 997	3.8

Depreciation and amortization		-25 503		-25 418
Impairment of tangible assets 3)		-8 289		–
Operating profit (EBIT) 4)		21 547	7.1	-17 421	-8.2

Financial expenses	2	-6 665		-8 816
Financial income	2	3 656		6 288
Earnings before taxes		18 538	6.1	-19 949	-9.4

Income taxes		-5 376		2 422
Net income attributable to Feintool Holding shareholders		13 162	4.3	-17 527	-8.3

1) In the 2020 financial year, Feintool received a loan of USD 8.4 million under the PPP program in the United States to mitigate the impact of the COVID-19 pandemic. In the first half of 2021, the government assured the company that this loan would not have to be repaid. Feintool also received CHF 3.0 million in immediate aid from the Swiss government in the first half of 2021 to mitigate the effects of the COVID-19 pandemic. In addition, please refer to section 1 of the Notes.

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

3) Due to capacities no longer required at a plant, an impairment loss on manufacturing equipment totaling CHF 8.3 million was recognized in the first half of 2021. In addition, please refer to section 1, footnote 3 of the Notes.

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

		1st HY 2021		1st HY 2020
		01/01/–06/30/2021		01/01/–06/30/2020
(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		14 117		-7 285
Income taxes on recycable items		–		-799

Items that may not be reclassified to profit or loss
Reassessment of net defined benefit liability (asset)		6 973		-2 136
Income taxes on non recycable items		-1 674		447
Total other comprehensive income		19 416		-9 773

Total comprehensive income attributable to Feintool Holding shareholders		32 578		-27 300

Net income attributable to Feintool Holding shareholders		13 162		-17 527
Total comprehensive income attributable to Feintool Holding shareholders		32 578		-27 300

Basic earnings per share (in CHF)		2.68		-3.57
Diluted earnings per share (in CHF)		2.68		-3.57

Number of employees as of June 30
Number of employees excl. 75 (previous year 78) trainees		2 545		2 363

consolidated balance sheet

for the first half of 2021 (as at June 30, 2021)

		06/30/2021		12/31/2020
(unaudited)	Note	in CHF 1 000	in %	in CHF 1 000	in %
ASSETS
Current assets
Cash and cash equivalents		66 188		61 276
Trade and other receivables		89 129		82 107
Tax receivables		4 891		2 301
Inventories		90 072		69 515
Net contract assets		9 125		8 441
Prepaid expenses and accrued income		5 984		8 225
Total current assets		265 389	37.3	231 865	34.2

Non-current assets
Property, plant and equipment		335 108		334 857
Intangible assets		91 714		91 462
Financial assets		6 399		4 234
Deferred tax assets		13 747		14 633
Total non-current assets		446 968	62.7	445 186	65.8
TOTAL ASSETS		712 357	100.0	677 051	100.0
LIABILITIES
Current liabilities
Financial liabilities		63 298		66 990
Trade and other payables		64 919		64 742
Tax liabilities		9 020		3 852
Accrued expenses and deferred income		43 147		30 813
Current provisions		6 618		6 179
Total current liabilities		187 002	26.3	172 576	25.5

Non-current liabilities
Financial liabilities		134 424		141 225
Non-current provisions		2 461		2 388
Deferred tax liabilities		18 699		16 878
Employee benefit liabilities		43 158		50 099
Total non-current liabilities		198 742	27.9	210 590	31.1
Total liabilities		385 744	54.2	383 166	56.6

Equity
Share capital	3	49 148		49 148
Capital reserves		116 636		116 788
Retained earnings		201 180		182 720
Treasury shares		-313		-615
Translation differences		-40 038		-54 156
Total equity		326 613	45.8	293 885	43.4
TOTAL EQUITY AND LIABILITIES		712 357	100.0	677 051	100.0

consolidated statement of changes in equity

for the first half of 2021

in CHF 1 000	Share capital	Treasury shares	Capital reserves	Retained earnings	Translation differences	Total equity
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
Dividend 1)	–	–	–	–	–	–
Share-based management remuneration 2)	–	439	-264	–	–	175
June 30, 2020	49 148	-413	116 744	163 388	-46 091	282 776

January 1, 2021	49 148	-615	116 788	182 720	-54 156	293 885
Translation differences	–	–	–	–	14 117	14 117
Reassessment of net defined benefit liability (asset), net of tax	–	–	–	5 299	–	5 299
Total other comprehensive income	–	–	–	5 299	14 117	19 416
Net income attributable to Feintool Holding shareholders	–	–	–	13 162	–	13 162
Total comprehensive income attributable to Feintool Holding shareholders	–	–	–	18 461	14 117	32 578
Share-based management remuneration 2)	–	302	-152	–	–	150
June 30, 2021	49 148	-313	116 636	201 181	-40 039	326 613

1) Contrary to the originally planned dividend distribution of CHF 1.00 per registered share, no dividend was distributed from the earnings in the financial year that ended on December 31, 2019.

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 2021

		1st HY 2021	1st HY 2020
		01/01/–06/30/2021	01/01/–06/30/2020
	Note	in CHF 1 000	in CHF 1 000
Net income of the Feintool Group		13 162	-17 527
Depreciation, amortization and impairment		33 792	25 418
(Gain)/loss on disposal of property, plant and equipment		-42	67
Increase/(decrease) in provisions and valuation allowances 1)		3 257	1 131
(Increase)/decrease in deferred taxes		2 380	–
Other non-cash changes		-7 466	-517
Income taxes		5 376	-2 422
Cash flows from operating activities before change in net working capital (NWC)		50 459	6 150

Increase/decrease in:
Accounts receivables		-4 447	19 000
Inventories and net contract assets		-23 611	4 371
Prepaid and accrued expenses and income		13 965	1 501
Accounts payables		-1 513	-38 019
Other net working capital (NWC)		-3 212	6 417
Income taxes paid		-292	979
Cash flows from operating activities		31 349	399

Investments in property, plant and equipment		-21 135	-19 122
Disposals of property, plant and equipment		1 366	238
Investments in intangible assets		-727	-667
Disposals of intangible assets		7	1
Increase in financial assets		-3 000	–
Decrease in financial assets		434	194
Cash flows from investing activities		-23 055	-19 356

Free cash flow 2)		8 294	-18 957

1) Provisions and valuation allowances during the reporting period primarily encompass expenses from the revaluation of the net liability from defined benefit pension plans.

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

		1st HY 2021	1st HY 2020
		01/01/–06/30/2021	01/01/–06/30/2020
	Note	in CHF 1 000	in CHF 1 000
Purchase of treasury shares		–	–
Borrowing of interest-bearing liabilities		15 467	54 179
Repayment of financial lease liabilities		-5 787	-5 894
Repayment of interest-bearing liabilities		-14 513	-6 470
Cash flows from financing activities		-4 833	41 815

Translation differences Cash and cash equivalents		1 556	-3 460

Increase in cash and cash equivalents		5 017	19 398

Cash and cash equivalents at the beginning of the period		61 276	43 476
Cash and cash equivalents at the end of the period		66 188	62 874

Interest paid		-1 658	-1 608
Interest received		14	22

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.