Interim report
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Q1 | Group Interim Report on the 1st quarter 2024/2025 01 Group Interim Report Q1 Fiscal 2024/2025 1st October 2024 until 31th December 2024 The first quarter at a glance 01/10/2024 - 31/12/2024 Change compared to previous year 01/10/2023 - 31/12/2023 Consolidated Statements of Operations in % T otal revenues (EUR million) 266.451 -13.6 308.398 EBIT (EUR million) -2.143 - 13.456 Margin (%) -0.8% - 4.4% Segments Digital Engineering T otal revenues (EUR million)1 138.458 -6.9 148.709 EBIT (EUR million) -0.812 - 7.413 Physical Engineering T otal revenues (EUR million)1 55.441 -20.5 69.732 EBIT (EUR million) -7.076 - -2.635 Electrics/Electronics T otal revenues (EUR million)1 97.266 -14.6 113.866 EBIT (EUR million) 5.746 -33.8 8.678 Cash flow Cash flow from operating activities (EUR million) 40.155 21.1 33.169 Cash flow from investing activities (EUR million) -1.917 - -3.927 Free cash flow (EUR million) 38.238 30.8 29.242 Balance sheet Balance sheet total (EUR million) 854.535 -9.7 945.957 Equity (EUR million) 361.460 -21.7 461.650 Equity ratio (%) 42.3 - 48.8 Cash and cash equivalents (EUR million) 138.127 0.1 137.955 Employees Number of employees at the end of the reporting period 13,605 -5.5 14,401 Q1 1Previous year’s figures adjusted to gross values before reconciliation from consolidation effects. Dieses Farbfeld dient der Verlängerung des „b“ in den Anschnitt und ist nur bei Print-Anwendungen erforderlich
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Q1 | Group Interim Report on the 1st quarter 2024/2025 02 Q1 Market development and material events Macroeconomic environment The first quarter of 2024/2025 was characterised by challenging macroeconomic conditions. This applied to both regional and sectoral development. While the overall economic situation in large Asian coun - tries such as China and India as well as in the euro - zone and especially in Germany was disappointing according to the International Monetary Fund (IMF), the economy in the USA proved to be robust. The economists at M.M.Warburg & CO also determine a striking divergence between a weak manufacturing industry and a relatively strong service sector. The economists at the IMF and M.M.Warburg & CO do not expect the heterogeneous macroeconomic environment to change in the coming months of the 2024/2025 financial year. In its latest outlook, the IMF has significantly raised its GDP forecast for the US by 0.5 percentage points to 2.7% (2025), while lowering it for the eurozone by 0.2 percentage points to 1.0% (2025). The adjustment particularly affects Germany, where the latest forecasts predict continued weak GDP growth of 0.3% in 2025. Situation in the automotive industry According to an analysis by the ifo Institute in Decem- ber 2024, the index for the business climate in the German automotive industry deteriorated again at the end of 2024. The decline was due in particular to significantly more pessimistic expectations, while the current situation was assessed slightly better. Against this backdrop, the German Association of the Automotive Industry (VDA) is calling for compre- hensive economic reforms to make Germany interna- tionally competitive again. The current gloomy market sentiment in the auto - motive industry and uncertainties, particularly with regard to the further development of end customer demand for passenger cars with electrified drive systems, also led some car manufacturers to review their fundamental corporate strategies in this report- ing period and therefore to continue to be hesitant in awarding research and development projects for new model developments. Nevertheless, the market for development services will remain attractive in the medium to long term. In a new analysis, the VDA anticipates cumulative research and development investments totalling EUR 320 billion or EUR 64 billion annually in the period from 2025 to 2029. This figure corresponds to a noticeable increase compared to the VDA forecast of a cumulative EUR 280 billion or EUR 56 billion annually for the period from 2024 to 2028. However, according to the VDA, the majority of these invest - ments are attributable to commitments by German companies abroad. Looking ahead to the full year 2025, the VDA is con- fident that an economic turnaround in Germany can succeed if political change once again promotes increased innovation “Made in Germany”. This will also create opportunities for development service providers such as Bertrandt to benefit from a market recovery in the further course.
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Q1 | Group Interim Report on the 1st quarter 2024/2025 03 Q1 Business performance, earnings and financial position Overall performance The product and project postponements observed at some of our customers since spring 2024 also led to reduced capacity call-offs in the reporting period. Against this backdrop, the “Fit for Future” earnings optimisation programme initiated in the previous financial year 2023/2024 continued to be systemat - ically implemented. The expected significant annual savings of around EUR 70-90 million should take full effect from the 2025/2026 financial year and then lead to an improvement in the EBIT margin to 6-9%. Given the general environment described above, total sales in the first quarter of 2024/2025 amounted to EUR 266.451 million (Q1 2023/2024: EUR 308.398 million). This development reflects the lower demand for capacity in the market compared to the same period of the previous year as well as the countermeasures introduced, such as short-time work and staff reductions. The headcount fell from 14,401 on 31 December 2023 by 796 employees to 13,605 on 31 December 2024. T otal sales were pos- itively influenced by growing international business in the reporting period, while revenues in Germany declined by around 20%. The number of working days in the first quarter of 2024/2025 was almost unchanged compared to the same period of the pre- vious year. Expense ratios The use of external services was reduced on a project-related basis as a result of the decline in total sales, meaning that the cost of materials in the reporting period amounted to EUR 31.010 million and was therefore below the previous year’s figure (EUR 39.173 million). The cost of materials ratio fell from 12.7% (Q1 2023/2024) to 11.6% in Q1 2024/2025. Personnel expenses were reduced in the course of capacity adjustments from EUR 217.994 million in Q1 2023/2024 to EUR 202.661 million. However, the personnel expenses ratio increased to 76.1% (Q1 2023/2024: 70.7%), as the necessary use of short-time work had a negative impact on value creation. Other operating expenses fell from EUR 24.577 million (Q1 2023/2024) to EUR 23.806 million. This number includes a write-off of a cus - tomer receivable totalling EUR -1.900 million in the reporting period. The reduction of other operating expenses realised without this effect is related to the general cost-saving measures introduced as part of the “Fit for Future” programme. Results EBIT in the Bertrandt Group totalled EUR -2.143 mil- lion in the first three months of the 2024/2025 financial year (Q1 2023/2024: EUR 13.456 million). The noticeable decline reflects the lower capacity utilisation compared to the still decent market envi- ronment in the same period of the previous year. At the same time, the earnings trend in Q1 2024/2025 was positively influenced by the initial effects of the “Fit for Future” earnings optimisation programme compared to the two previous quarters. The financial result of EUR -2.140 million was stable compared to the same period of the previous year (EUR -2.089 million). Income taxes in the amount of EUR 1.475 million (same period of the previous year: EUR -2.755 million) were influenced in the report - ing period by the loss situation in Germany and the resulting deferred taxes recognised on loss carry - forwards. Against this backdrop, post-tax earnings totalled EUR -3.666 million (Q1 2023/2024: EUR 7.923 million), which corresponds to earnings per share of EUR -0.36 (Q1 2023/2024: EUR 0.78).
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Q1 | Group Interim Report on the 1st quarter 2024/2025 04 Q1 Financial calendar Annual General Meeting FY 2023/2024 19 February 2025, Sindelfingen City Hall Report on the 2nd quarter 2024/2025 15 May 2025 Capital Market Day 15 May 2025 Report on the 3rd quarter 2024/2025 4 August 2025 Annual report 2024/2025 Annual press and analysts’ conference 18 December 2025 Credits Published and edited by Bertrandt AG, Birkensee 1, 71139 Ehningen T elephone +49 7034 656-0 T elefax +49 7034 656-10001 www. bertrandt.com info@ bertrandt.com HRB 245259 Local court Stuttgart Male pronouns are used in this text for the sake of simplicity and legibility. They are intended to refer to people of all genders. Forecast change report The statements made in the forecast report in the 2023/2024 Annual Report (pages 117 to 121) remain unchanged. Assuming that the economic and geopolitical con - ditions do not deteriorate, our customers invest in research and development of new technologies on a sustained and normalized basis, development ser - vices continue to be outsourced to service provid - ers, regulatory requirements do not lead to a change in customer behaviour and qualified personnel are available, Bertrandt expects the most important per- formance indicators to develop as follows in fiscal year 2024/2025. In addition, based on the current implementation status of the “Fit for Future” earn - ings optimization programme, Bertrandt currently expects significant annual savings of around EUR 70-90 million in order to achieve the EBIT margin corridor of 6-9% from fiscal 2025/2026. Forecast 2024/2025 T otal revenues Moderate decline EBIT Significant increase to a positive earnings level Cash flow from operating activities Significant decline in the positive range Investitionen No significant KPI Segments Digital Engineering T otal revenues Moderate decline EBIT significant increase Physical Engineering T otal revenues Significant decline EBIT significant increase Electrics/Electronics T otal revenues Moderate decline EBIT moderate increase Definition: – Moderate change +/-0% to +/-10% – Significant change over +/-10%
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Q1 | Group Interim Report on the 1st quarter 2024/2025 05 Q1 Consolidated income statement and statement of comprehensive income EUR million1 01/10 to 31/12 Q1 Q1 2024/2025 2023/2024 I. Income statement Revenues 266.242 308.292 Other internally generated assets 0.209 0.106 T otal revenues 266.451 308.398 Other operating income 2.798 0.948 Raw materials and consumables used -31.010 -39.173 Personnel expenses -202.661 -217.994 Depreciation -13.915 -14.146 Other operating expenses -23.806 -24.577 EBIT -2.143 13.456 Share of profit in associates 0.173 0.162 Interest income 0.807 0.992 Financial expenses -3.103 -3.226 Other financial result -0.018 -0.017 Net finance income -2.140 -2.089 Profit from ordinary activities -4.283 11.367 Other taxes -0.857 -0.689 Earnings before tax -5.140 10.678 Income taxes 1.475 -2.755 Post-tax earnings -3.666 7.923 – attributable to shareholders of Bertrandt AG -3.666 7.923 Number of shares (million) – diluted/basic, average weighting 10.106 10.106 Earnings per share (EUR) – diluted/basic -0.36 0.78 II. Statement of comprehensive income Post-tax earnings -3.666 7.923 Differences from currency translation and hedging reserve 2 1.377 -0.206 Tax effects on the hedging reserve2 0 0.043 Remeasurement of pension obligations and plan assets 3 0.013 -1.028 Tax effects on the remeasurement of pension obligations and plan assets 3 -0.003 0.291 Other comrehensive income after taxes 1.387 -0.900 T otal comprehensive income -2.278 7.023 of which total comprehensive income attributable to Bertrandt AG shareholders -2.278 7.023 1Rounding differences of EUR 0.001-0.002 million may occur in the presentation of fig - ures due the system used 2Components of other comprehen- sive income that will be reclassi - fied to the income statement in future periods. 3Components of other compre - hensive income that will not be reclassified to the income state - ment in future periods. CI-1496-01.25-A