HALF-YEAR REPORT 2022

consolidated statement of COMPREHENSIVE INCOME

for the first half of 2022 (January 1 to June 30, 2022)

		1st HY 2022		1st HY 2021
		01/01/-06/30/2022		01/01/-06/30/2021
(unaudited)	Note	in CHF 1 000	in %	in CHF 1 000	in %
Net sales		411 472	100.0	302 620	100.0

Change in finished and semi-finished goods and work in progress		7 391		13 176
Capitalized self-generated assets		819		686
Material expenses		-221 718		-138 882
Personnel expenses		-111 299		-95 084
Other operating expenses		-44 066		-38 272
Other operating income 1)		594		11 095
Earnings before interest, taxes, depreciation and amortization (EBITDA) 2)		43 193	10.5	55 339	18.3

Depreciation and amortization		-28 638		-25 503
Impairment of tangible assets 3)		–		-8 289
Operating profit (EBIT) 4)		14 555	3.5	21 547	7.1

Financial expenses	4	-10 555		-6 665
Financial income	4	8 031		3 656
Earnings before taxes		12 031	2.9	18 538	6.1

Income taxes		-3 490		-5 376
Net income attributable to Feintool Holding shareholders		8 541	2.1	13 162	4.3

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 financial year 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 one 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 of the Notes.

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

		1st HY 2022		1st HY 2021
		01/01/-06/30/2022		01/01/-06/30/2021
(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		-7 310		14 117

Items that may not be reclassified to profit or loss
Reassessment of net defined benefit liability (asset)		12 739		6 973
Income taxes on non recycable items		-2 266		-1 674
Total other comprehensive income		3 162		19 416

Total comprehensive income attributable to Feintool Holding shareholders		11 702		32 578

Net income attributable to Feintool Holding shareholders		8 541		13 162
Total comprehensive income attributable to Feintool Holding shareholders		11 702		32 578

Basic earnings per share (in CHF)		1.11		2.68
Diluted earnings per share (in CHF)		1.11		2.68

Number of employees as of June 30
Number of employees excl. 98 (previous year 75) trainees		3 487		2 545

consolidated balance sheet

for the first half of 2022 (as at June 30, 2022)

		06/30/2022		12/31/2021
(unaudited)	Note	in CHF 1 000	in %	in CHF 1 000	in %
ASSETS
Current assets
Cash and cash equivalents		76 258		51 763
Trade and other receivables		122 794		92 925
Tax receivables		3 664		2 231
Inventories		152 187		98 926
Net contract assets		3 636		3 756
Prepaid expenses and accrued income		6 914		3 452
Total current assets		365 453	38.9	253 053	37.0

Non-current assets
Property, plant and equipment		412 941		331 183
Intangible assets		146 779		85 910
Financial assets		6 181		4 925
Deferred tax assets		8 216		9 326
Total non-current assets		574 117	61.1	431 344	63.0
TOTAL ASSETS		939 570	100.0	684 397	100.0
LIABILITIES
Current liabilities
Financial liabilities	3	17 570		20 703
Trade and other payables		91 325		83 129
Tax liabilities		8 230		6 651
Accrued expenses and deferred income		41 125		30 951
Current provisions		12 380		9 977
Total current liabilities		170 630	18.2	151 411	22.1

Non-current liabilities
Financial liabilities	3	116 003		151 808
Non-current provisions		2 936		2 443
Deferred tax liabilities		32 794		17 485
Employee benefit liabilities		73 342		22 883
Total non-current liabilities		225 075	24.1	194 619	28.4
Total liabilities		395 705	42.1	346 030	50.6

Equity
Share capital	5	147 445		49 148
Capital reserves		214 362		116 729
Retained earnings		236 904		220 348
Treasury shares		-153		-475
Translation differences		-54 693		-47 383
Total equity		543 865	57.9	338 367	49.4
TOTAL EQUITY AND LIABILITIES		939 570	100.0	684 397	100.0

consolidated statement of changes in equity

for the first half of 2022

in CHF 1 000	Share capital	Treasury shares	Capital reserves	Retained earnings	Translation differences	Total equity
January 1, 2021	49 148	-615	116 788	182 720	-54 156	293 885
Translation differences	–	–	–	–	6 773	6 773
Reassessment of net defined benefit liability (asset), net of tax	–	–	–	18 417	–	18 417
Total other comprehensive income	–	–	–	18 417	6 773	25 190
Net income attributable to Feintool Holding shareholders	–	–	–	19 211	–	19 211
Total comprehensive income attributable to Feintool Holding shareholders	–	–	–	37 628	6 773	44 400
Share-based management remuneration 1)	–	806	-59	–	–	747
June 30, 2021	49 148	-475	116 729	220 348	-47 383	338 367

January 1, 2022	49 148	-475	116 729	220 348	-47 383	338 367
Translation differences	–	–	–	–	-7 310	-7 310
Reassessment of net defined benefit liability (asset), net of tax	–	–	–	10 473	–	10 473
Total other comprehensive income	–	–	–	10 472	-7 310	3 162
Net income attributable to Feintool Holding shareholders	–	–	–	8 541	–	8 541
Total comprehensive income attributable to Feintool Holding shareholders	–	–	–	19 013	-7 310	11 702
Capital increase 2)	98 297	–	100 372	–	–	198 669
Dividend 3)	–	–	-2 457	-2 457	–	-4 914
Share-based management remuneration 1)	–	322	-282	–	–	40
June 30, 2022	147 445	-153	214 362	236 904	-54 693	543 865

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

2) On May 13, 2022, 9 829 684 new shares, each with a nominal value of CHF 10, were issued as capital increase.

3) The General Meeting held on April 28, 2022 approved the Board of Directors' proposed dividend distribution of CHF 1.00 per registered share from earnings for the financial year ended December 31, 2021.

consolidated statement of cash flows

for the first half of 2022

		1st HY 2022	1st HY 2021
		01/01/-06/30/2022	01/01/-06/30/2021
	Note	in CHF 1 000	in CHF 1 000
Net income of the Feintool Group		8 541	13 162
Depreciation, amortization and impairment		28 638	33 792
(Gain)/loss on disposal of property, plant and equipment		8	-42
Increase/(decrease) in provisions and valuation allowances 1)		67	3 257
Other non-cash changes		-2 764	-5 086
Income taxes		3 490	5 376
Received / paid Income taxes		-1 783	-292
Financial result		2 525	3 646
Cash flows from operating activities before change in net working capital (NWC)		38 722	53 813

Increase/decrease in:
Accounts receivables		3 000	-4 447
Inventories and net contract assets		-17 677	-23 611
Prepaid and accrued expenses and income		4 659	13 965
Accounts payables		-21 539	-1 513
Other net working capital		–	-3 212
Cash flows from operating activities		7 165	34 995

Investments in property, plant and equipment		-4 142	-21 135
Disposals of property, plant and equipment		428	1 366
Investments in intangible assets		-3 049	-727
Disposals of intangible assets		6	7
Increase in financial assets		-8	-3 000
Decrease in financial assets		148	434
Interest received		120	50
Other financial income		16	–
Purchase of consolidated investments net of cash	2	-52 169	–
Cash flows from investing activities		-58 650	-23 005

Free cash flow 1)		-51 485	11 990

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

		1st HY 2022	1st HY 2021
		01/01/-06/30/2022	01/01/-06/30/2021
	Note	in CHF 1 000	in CHF 1 000
Capital increase	5	198 669	–
Dividends paid	6	-4 914	–
Other changes in equity		-282	-105
Borrowing of interest-bearing liabilities	3	162 508	15 467
Repayment of interest-bearing liabilities	3	-270 040	-14 513
Payment of financial lease liabilities		-7 290	-5 787
Interest paid		-3 280	-3 696
Cash flows from financing activities		75 371	-8 634

Translation differences Cash and cash equivalents		610	1 556

Change in cash and cash equivalents		24 495	4 912

Cash and cash equivalents at the beginning of the period		51 763	61 276
Cash and cash equivalents at the end of the period		76 258	66 188

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

The items Financial result, Interest paid and Interest received were not reported as separate items in the consolidated cash flow statement for the half year 2021. These items are reported separately in the reporting year, with the previous year's figures having been adjusted accordingly within the meaning of IAS 1.41. In this context, it has also been decided that these items will now be reported in cash flows from investing activities (Interest received) and cash flows from financing activities (Interest paid), respectively, instead of cash flows from operating activities as previously. This means that the free cash flow for the half year 2021 has increased by TCHF 1 644 and the cash flows from financing activities has decreased by TCHF 1 644.