30 November 2021
Virala Acquisition Company Plc Stock Exchange Release 30 November 2021 at 9:30am EET
Virala Acquisition Company Plc Stock Exchange Release 30 November 2021 at 9:30am EET
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, HONG KONG, JAPAN, NEW ZEALAND, SINGAPORE, SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE THE RELEASE, PUBLICATION OR DISTRIBUTION WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION. FOR FURTHER INFORMATION, PLEASE SEE THE “IMPORTANT INFORMATION” BELOW.
As a part of preparations for the completion of the merger of Virala Acquisition Company Plc (“VAC”) and Purmo Group Ltd (“Purmo Group”), including the preparation of a merger and listing prospectus (the “Prospectus”), Purmo Group has prepared an unaudited interim report for the nine months ended 30 September 2021 (“Interim Financial Information”). Having received the Interim Financial Information from Purmo Group, VAC hereby announces a summary of Purmo Group’s Interim Financial Information. All information disclosed herein is derived from the Prospectus to be published on 30 November 2021.
Adjusted EBITDA improved strongly by 33 per cent in January-September 2021 driven by strong market demand and operational efficiency
Purmo Group’s net sales increased significantly in the first nine months of 2021 compared to the previous year. The strong sales were supported by strong market demand for Purmo Group’s products and successful supply chain management despite shortage of certain raw materials and components. Sales growth was also driven by necessary sales price increases following rapidly increasing raw material costs, most notably steel. The continued improved profitability was supported by the operational excellence program PGUp, replacing the 2020 temporary cost measures with EUR 20 million of recurring run-rate savings implemented from September 2020 until June 2021.
January-September 2021 highlights
- Net sales improved by 28 per cent to EUR 621.0 million (485.1)
- Adjusted EBITDA increased by 33 per cent to EUR 81.3 million (61.2)
- EBIT increased by 37 per cent to EUR 45.3 million (33.1)
- Cash flow from operating activities decreased by 90 per cent to EUR 3.2 million (30.5)
- Adjusted operating cash flow for the last 12 months was EUR 58.0 million (78.9)
- Acquisition of a majority share in Evrorad completed, giving access to local radiator production in Russia.
- VAC and Purmo Group announced a contemplated merger, whereby Purmo Group will become listed on the official list of Nasdaq Helsinki.
Unless otherwise stated, the comparison figures in parentheses refer to the corresponding period in 2020. All figures for the nine months ended 30 September 2021 and 2020 are unaudited. The consolidated financial statements for year 2020 have been audited. Key financial indicators defined by Purmo Group are not audited.
Updated 2021 financial outlook
In this announcement, concerning Purmo Group’s financial results for the nine months ended 30 September 2021, Purmo Group is updating its financial outlook for the financial year 2021. The company now expects the adjusted EBITDA for the financial year 2021 to be above EUR 97 million.
On 8 September 2021, Purmo Group announced its preliminary outlook for the financial year 2021. According to the preliminary outlook, the adjusted EBITDA for the financial year 2021 was expected to be slightly above EUR 90 million.
The basis of the financial outlook and factors of uncertainty affecting it is presented below.
Key figures and financial performance January-September 2021
| EUR million | 1-9/2021 | 1-9/2020 | Change, % | 2020 |
| Net sales | 621.0 | 485.1 | 28% | 671.2 |
| Adjusted EBITDA1 | 81.3 | 61.2 | 33% | 85.1 |
| Adjusted EBITDA margin, % | 13.1% | 12.6% | 12.7% | |
| EBIT | 45.3 | 33.1 | 37% | 42.0 |
| EBIT margin, % | 7.3% | 6.8% | 6.3% | |
| Profit for the period | 27.9 | 17.9 | 55% | 25.3 |
| Cash flow from operating activities | 3.2 | 30.5 | -90% | 68.9 |
| Adjusted operating cash flow, last 12 months2 | 58.0 | 78.9 | -26% | 94.2 |
| Cash conversion %, last 12 months3 | 55.2% | 99.8% | 110.7% | |
| Operative capital employed4 | 291.4 | 267.0 | 9% | 235.6 |
| Return on operative capital employed, %5 | 18.6% | 15.6% | 17.8% |
1) EBITDA before comparability adjustments (as defined in the Appendix).
2) Adjusted EBITDA on a rolling 12-month basis deducted by the change in net working capital and capex on a rolling 12-month basis.
3) Adjusted operating cash flow divided by Adjusted EBITDA, both on a rolling 12-month basis.
4) Net working capital, other intangible assets, property, plant and equipment, and right-of-use assets.
5) EBIT based on a rolling twelve-month calculation divided by operative capital employed.
CEO review
January to September 2021 was exceptional for the heating, ventilation and air-conditioning (HVAC) markets and therefore for Purmo Group. The European construction market (and most of our key markets outside of Europe) saw strong recovery, during which our total net sales grew by 28 per cent to EUR 621.0 million, while adjusted EBITDA improved by 33 per cent to EUR 81.3 million. This happened against the backdrop of a global shortage of raw materials and increase in the price of steel, used in our panel radiators, which rose well above historical levels.
Purmo Group’s periods of formation and globalisation began before my time as CEO, but the events that accelerated us towards a stock-listing began in mid-2020 with an ambitious operational excellence programme called PGUp. Its targets included: a step-change in operational excellence, improvements in cost competitiveness, and a better approach to agility in transformation. These qualities would be needed to support growth and future investments. It also aimed to replace, with recurring savings, the temporary cost measures taken to deal with the impact of COVID-19. In June 2021, when implementation of the programme concluded, PGUp had exceeded its targets by generating recurring cost savings of approximately EUR 20 million. We will continue to deploy cost efficiency measures as part of our normal management activities.
In April, we increased our market share in Russia with the acquisition of a majority share in Evrorad and its radiator-production capability in Engels. The acquisition strengthened our cost competitiveness in Russia and reduced the local costs of manufacturing, transportation, labour and steel as well as customs duties compared to serving the country from our facilities in Poland.
Our mission is to be the global leader in sustainable indoor climate comfort solutions.
Our strategy focuses on three things. The first is increasing the proportion of solution-selling – providing complete solutions instead of just parts of them. In that respect, there is plenty of white-space to be captured in underpenetrated markets. The second part is the launching of ‘smart’ products, which are more intelligent, more sustainable and more aesthetic. The third part focuses on growth markets and capturing the biggest opportunities outside of our current markets. This strategy is supported by continuous improvement in operational excellence and our investment in people and culture. We also keep an eye open for opportunities in consolidation, expansion and diversification through M&A.
During the second half of 2021, we have been working on the merger with VAC and the listing on Nasdaq Helsinki in January 2022 which will bring us new resources to support our strategy, growth plans and M&A agenda. We are very aware that it will be achieved through the excellence of our people and so we are also investing in leadership, culture and organisation.
Overall, our way forward focuses on a leading market position expressed in terms of sustainability – the biggest of all global issues – quoting our vision that “perfect indoor climates should not cost the planet’s climate”. To match this, we have sustainability at the centre of our vision and growth strategy.
As we approach the end of 2021 and more than 50 years of private ownership, I want to thank Rettig Group for their support this far. We are proud of what we have achieved and we have the courage and ambition for what lies ahead. We have made changes that matter and we will continue to do so.
I am particularly impressed by the professionalism, dedication and loyalty of our customers, employees and business partners, who are essential in our future and in our mission to be the global leader in sustainable indoor climate comfort solutions.
Financial review January-September 2021
Net sales
Net sales grew by 28 per cent to EUR 621.0 million (485.1) during the first nine months of 2021. The strong sales development was supported primarily by strong demand and successful supply chain management despite global shortage of certain raw materials and components.
To compensate for the very strong increase in raw material prices, well above historical levels, Purmo Group introduced several sales price increases, which also contributed to the sales growth. The sales growth was strong in both Radiators and ICS divisions. The Radiators division’s net sales amounted to EUR 363.4 million (284.2) and ICS division’s net sales amounted to EUR 257.6 million (200.9). Despite general raw material shortages, both divisions were able to fulfil customer orders throughout the period. The comparison period in 2020 includes an exceptional second quarter of 2020, when the most extensive COVID-19 related restrictions were in place, resulting in temporarily weaker demand and operational disturbances.
Profitability
Adjusted EBITDA improved by 33 per cent to EUR 81.3 million (61.2) during the first nine months of 2021, and the adjusted EBITDA margin increased slightly to 13.1 per cent (12.6). The adjusted EBITDA of the Radiators division amounted to EUR 50.7 million (46.3) and of the ICS division to EUR 34.1 (18.3).
The good performance in adjusted EBITDA was mainly driven by the strong development of net sales resulting from increased sales volumes and the sales prices increases that offset the majority of raw material price increases. Furthermore, permanent cost reductions achieved through the PGUp operational excellence program, which was implemented at the end of 2020 and the beginning of 2021, replaced the temporary savings in raw materials and salaries related to the COVID-19 pandemic.
The adjusted EBITDA margin was slightly weaker towards the end of the period, due to a slight delay in the implementation of Radiators sales price increases.
The comparability adjustments in January-September 2021 were EUR 12.5 million (6.0), comprising mainly of EUR 8.6 million restructuring and EUR 2.9 million of merger and standalone preparation costs.
Included in the EUR 8.6 million restructuring cost was a EUR 4.5 million restructuring provision relating to plant relocation. In September 2021, it was agreed that Purmo Group’s brass production facility in Newcastle West, Ireland, will be relocated to other existing sites, in Italy and Sweden, and outsourced. The restructuring actions are expected to bring efficiency gains from consolidation of production and selective outsourcing. The estimated future capital expenditure for the relocation is EUR 1.3 million. The entire investment will be financed with Purmo Group’s own cash flow. The investment project is estimated to be completed by the end of the first half of 2022.
EBIT improved by 37 per cent to EUR 45.3 million (33.1) during January-September 2021.
Cash flow
Cash flow from operating activities was EUR 3.2 million (30.5) for the nine months ended 30 September 2021. The decrease of 90 per cent was mainly due to an unfavourable change in net working capital driven by higher sales volumes as well as sharply increasing raw material costs and sales prices increasing net working capital balances. September net working capital balances were seasonally high, causing unfavourable change in cash flow from the beginning of the financial year. The cash flow used in investing activities was EUR 11.8 million (7.3) and consisted mainly of property, plant and equipment capital expenditure (EUR 8.0 million) and the acquisition of a majority share in Evrorad (EUR 4.5 million), which were partially offset by proceeds from a warehouse building sale of EUR 0.7 million.
The inventories, trade receivables and payables increased significantly from the 31 December 2020 level caused by higher sales volumes, higher sales prices and higher raw material and component prices in the nine months ended 30 September 2021. Due to this, the change in net working capital had a negative effect on the cash flow from operating activities for the nine months ended 30 September 2021. The level of net working capital towards the end of year 2020 was abnormally low caused by lower sales volumes and COVID-19 related savings and reorganisation measures due to which the level of inventory was lower than normally.
For the last 12 months until September 2021, adjusted operating cash flow decreased by 26 per cent to EUR 58.0 million (78.9). The decrease was driven mainly by an unfavourable change in net working capital of EUR -34.9 million (16.7). This was partly offset by an improved adjusted EBITDA of EUR 105.2 million (79.0) and lower capex of EUR 12.3 million (16.9) for the last 12 months until September 2021. The cash conversion ratio was 55 per cent for the last 12 months until September 2021 (100).
Long-term financial targets and dividend policy
Purmo Group has set the following financial targets and dividend policy that will apply to the combined company of VAC and Purmo Group (the “Combined Company”) as of completion of the Merger:
Growth:
- Purmo Group targets organic net sales growth in excess of market growth. In addition, Purmo Group aims for notable inorganic growth through acquisitions.
Profitability:
- Purmo Group targets an Adjusted EBITDA margin above 15% in the medium- to long-term.
Leverage:
- The leverage ratio is targeted not to exceed 3.0x, measured as interest bearing net debt / Adjusted EBITDA on a rolling twelve-month basis. However, leverage may temporarily exceed the target level, for example in conjunction with acquisitions or restructuring actions
Dividend:
- Purmo Group’s aim is to distribute at least 40% of annual net profit as dividends or return of capital, intended to be paid out bi-annually after considering earnings trends for the group, its financial position and future growth potential
The statements set forth in this section include forward-looking statements and are not guarantees of the Combined Company’s financial performance. The Combined Company’s actual results of operations and financial position could differ materially from the results of operations or financial position presented in or implied by such forward-looking statements as a result of many factors. These forward-looking statements should be treated with caution.
Basis of the financial outlook and factors of uncertainty affecting it
Purmo Group’s updated financial outlook is based on the estimates and assumptions made by the company’s management regarding the development of the company’s net sales, adjusted EBITDA, and operating environment. The outlook is based on the management’s best estimate of the development of the company’s customer demand, competitive situation, the development of significant cost items, such as raw materials and energy, and operative capabilities including its supply chain.
The updated outlook implies that adjusted EBITDA will be below previous year in the fourth quarter of 2021. This is because the previous year benefited from temporary low raw material prices in the last quarter of 2020 and partially the first quarter of 2021, whereas current raw material prices are at an exceptionally high level. The latest outlook presented above is based on the company’s financial performance during the third quarter, in particular towards the end of the quarter, as well as the start of the fourth quarter. Purmo Group has so far successfully mitigated the effects of the global supply chain challenges to its own business. In addition, Purmo Group has been able to reduce the impact of the delay in the realisation of Radiator division’s sales price increases, which were announced to mitigate increasing raw material prices during 2021. Both aforementioned factors were highlighted as material risks for the full-year financial performance in the merger announcement on 8 September 2021.
The seasonality of demand may continue to differ from a typical year also towards the end of 2021. For the Radiators division, the order book is normalising from very high levels earlier in 2021, due to improving availability of product supply and without anticipation of further increasing of raw material prices. For the ICS division, customers may seek to secure the availability of products by pulling orders forward from the first quarter of 2022 into the fourth quarter of 2021. In addition, there are ongoing challenges in global supply chains as well as raw material and energy price inflation, requiring further sales price increases. While the company has managed to mitigate the effects of these factors, they continue to pose a risk.
The COVID-19 pandemic causes significant uncertainty on the above-mentioned factors, and especially an economic downturn in the construction industry could affect Purmo Group’s profit expectations negatively. Purmo Group’s financial guidance has been drafted and prepared on a basis which is comparable to Purmo Group’s historical financial information and which is consistent with Purmo Group’s accounting policies.
Capital Markets Day on Thursday 2 December at 9:00-13:00 (EET)
Analysts, investors and media are invited to Purmo Group’s Capital Markets Day on 2 December, 2021 at 9:00-13:00 (EET) at Miltton House, Sörnäisten Rantatie 15, FI-00530 Helsinki, Finland.
During the event, the management team of Purmo Group will present Purmo Group’s January-September 2021 Interim Financial Information and give an update on the future of the company’s business including its strategy and targets, its Radiator and Indoor Climate Systems (ICS) divisions, as well as its outlook.
Due to the prevailing circumstances and restrictions relating to the COVID-19 pandemic, Purmo Group recommends participants to follow the Capital Markets Day online via webcast. Online participants will be able to access the event unregistered through a webcast at https://worksup.com/vacpurmoevent. Participants, who would like to attend the event at Miltton House on Sörnäisten Rantatie 15, are kindly asked to register for the event in advance through https://www.lyyti.fi/reg/PurmoCMD.
The event, including the Q&A sessions, will be held in English. The presentation material and a recording of the webcast will be available after the event on the website of VAC at https://www.virala.fi/en/de-spac/.
Further information:
Virala Acquisition Company:
Johannes Schulman, CEO of VAC: Tel. +358 50 321 7447
Purmo Group:
John Peter Leesi, CEO of Purmo Group: Tel. +44 7444 152 123
Josefina Tallqvist, Investor Relations (interim), Purmo Group: Tel. +358 40 745 5276
Distribution:
Nasdaq Helsinki Ltd.
Principal media
www.virala.fi
Purmo Group is a leader in sustainable indoor climate comfort solutions in Europe. We provide complete heating and cooling solutions to residential and non-residential buildings, including radiators, towel warmers, underfloor heating, convectors, valves and controls. Our mission is to be the global leader in sustainable indoor climate comfort solutions. Our 3,500 employees operate through 46 locations in 21 countries, manufacturing and distributing top quality products and solutions to customers in more than 100 countries globally. www.purmogroup.com
Virala Acquisition Company Plc (VAC) is a Finnish acquisition company, tailored to the Finnish capital markets. The goal of VAC is to identify and execute one or more acquisitions that aim to create significant value for both the shareholders and the target company, as well as complement the Finnish capital markets. VAC seeks one or more companies and/or businesses with an estimated enterprise value ranging from approximately EUR 50 to EUR 500 million. The founding shareholder of VAC is the industrial enterprise Virala which has committed to act as a long-term anchor owner and developer of the companies to be acquired. www.virala.fi/en
Important information
The distribution of this release may be restricted by law and persons into whose possession any document or other information referred to herein comes should inform themselves about and observe any such restrictions. The information contained herein is not for publication or distribution, in whole or in part, directly or indirectly, in or into United States, Australia, Canada, Hong Kong, Japan, New Zealand, Singapore, South Africa or any other jurisdiction where such publication or distribution would violate applicable laws or rules or would require additional documents to be completed or registered or require any measure to be undertaken in addition to the requirements under Finnish law. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction. This release is not directed to, and is not intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction.
This release is not an offer of merger consideration shares in the United States and it is not intended for distribution in or into the United States or in any other jurisdiction in which such distribution would be prohibited by applicable law. The merger consideration shares have not been and will not be registered under the U.S. Securities Act of 1933 (the “Securities Act”), and may not be offered, sold or delivered within or into the United States, except pursuant to an applicable exemption of, or in a transaction not subject to, the Securities Act.
This release is for information purposes only and does not constitute an offer of or an invitation by or on behalf of, VAC, Rettig Group or Purmo Group, or any other person, to purchase any securities.
This release does not constitute a notice to an EGM or a prospectus. Any decision with respect to the proposed statutory absorption merger of Purmo Group into VAC should be made solely on the basis of information to be contained in the actual notices to the EGM of VAC and the Prospectus related to the merger as well as on an independent analysis of the information contained therein. You should consult the Prospectus for more complete information about VAC, Purmo Group, their respective subsidiaries, their respective securities and the merger. No part of this release, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. The information contained in this release has not been independently verified, does not purport to be full or complete and may be subject to change. No representation, warranty or undertaking, expressed or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or the opinions contained herein. Neither VAC, Rettig Group or Purmo Group, nor any of their respective affiliates, advisors or representatives or any other person, shall have any liability whatsoever (in negligence or otherwise) for any loss however arising from any use of this release or its contents or otherwise arising in connection with this release. Each person must rely on their own examination and analysis of VAC, Purmo Group, their respective securities and the merger, including the merits and risks involved. The transaction may have tax consequences for Purmo Group shareholders, who should seek their own tax advice.
This release includes “forward-looking statements” that are based on present plans, estimates, projections and expectations and are not guarantees of future performance. They are based on certain expectations and assumptions, which, even though they seem to be reasonable at present, may turn out to be incorrect. Shareholders should not rely on these forward-looking statements. Numerous factors may cause the actual results of operations or financial condition of the Combined Company to differ materially from those expressed or implied in the forward-looking statements. Neither VAC nor Purmo Group, nor any of their respective affiliates, advisors or representatives or any other person undertakes any obligation to review or confirm or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise after the date of this release. Further, there can be no certainty that the merger will be completed in the manner and timeframe described in this release, or at all.
This release contains financial information regarding the businesses and assets of VAC and Purmo Group and their consolidated subsidiaries. Such financial information may not have been audited, reviewed or verified by any independent accounting firm. Certain financial data included in this release consists of “alternative performance measures.” These alternative performance measures, as defined by VAC and Purmo Group, may not be comparable to similarly titled measures as presented by other companies, nor should they be considered as an alternative to the historical financial results or other indicators of VAC’s and Purmo Group’s cash flows based on IFRS. Even though the alternative performance measures are used by the management of VAC and Purmo Group to assess the financial position, financial results and liquidity and these types of measures are commonly used by investors, they have important limitations as analytical tools and should not be considered in isolation or as substitutes for analysis of VAC’s and Purmo Group’s financial position or results of operations as reported under IFRS.
Nordea and SEB are acting as financial advisers to VAC on certain matters outside of the United States and no one else in connection with the matters referred to herein, and will not be responsible to anyone other than VAC for providing the protections afforded to clients of Nordea and SEB, or for giving advice in connection with the transaction or any matter or arrangement referred to in this release.
APPENDIX – Selected Consolidated Financial Information of Purmo Group
The selected consolidated financial information provided herein have been extracted from Purmo Group’s audited consolidated financial statements prepared in accordance with IFRS as at and for the years ended 31 December 2020 and 31 December 2019, for the financial period from 9 April 2018 to 31 December 2018 prepared in accordance with FAS and unaudited condensed interim financial information as at and for the nine months ended 30 September 2021 including the comparatives prepared in accordance with IAS 34 and from financial key figures which are all included in the Prospectus published on 30 November 2021, available on https://www.virala.fi/en/de-spac/.
Consolidated Income Statement
| 1 January to 30 September | For the year ended 31 December | 9 April to 31 December | |||
| In EUR thousand, unless otherwise indicated | 2021 | 2020 | 2020 | 2019 | 2018 |
| IFRS | IFRS | FAS | |||
| (unaudited) | (audited) | (audited) | |||
| Net sales | 620,981 | 485,123 | 671,178 | 696,797 | 405,746 |
| Cost of sales | -470,272 | -359,549 | -498,374 | -524,860 | -312,808 |
| Gross profit | 150,709 | 125,574 | 172,804 | 171,937 | 92,938 |
| Sales and marketing expenses | -56,065 | -52,360 | -75,169 | -83,168 | -46,896 |
| Administrative expenses | -33,319 | -31,333 | -38,767 | -44,187 | -29,855 |
| Research and development expenses | -4,423 | -3,881 | -5,238 | -6,113 | -3,778 |
| Other income | 1,505 | 1,081 | 1,618 | 2,027 | 2,026 |
| Other expenses | -13,064 | -6,024 | -13,220 | -12,600 | -13,493 |
| EBIT | 45,344 | 33,056 | 42,028 | 27,896 | 942 |
| Finance income | 842 | 1,453 | 2,555 | 2,107 | 1,407 |
| Finance expenses | -6,696 | -9,768 | -12,661 | -14,080 | -18,993 |
| Net financial items | -5,855 | -8,315 | -10,107 | -11,974 | -17,587 |
| Profit before tax | 39,489 | 24,742 | 31,921 | 15,923 | -16,645 |
| Group contributions | 11,552 | ||||
| Income tax expense | -11,633 | -6,818 | -6,645 | -2,049 | -5,658 |
| Non-controlling interest | – | – | – | – | -1 |
| Profit for the period | 27,856 | 17,924 | 25,276 | 13,874 | -10,751 |
| Profit for the period attributable to: | |||||
| Owners of the Company | 27,400 | 17,655 | 24,854 | 13,750 | – |
| Non-controlling interests | 456 | 269 | 422 | 124 | – |
| Earnings per share for profit attributable to the ordinary equity holders of the parent company: |
|||||
| Earnings per share, EUR | 2.48 | 1.59 | 2.25 | 1.36 | – |
| Diluted earnings per share, EUR | 2.46 | 1.58 | 2.23 | 1.35 | – |
Consolidated Statement of Comprehensive Income
| 1 January to 30 September | For the year ended 31 December | |||
| In EUR thousand | 2021 | 2020 | 2020 | 2019 |
| IFRS | IFRS | |||
| (unaudited) | (audited) | |||
| Profit for the period | 27,856 | 17,924 | 25,276 | 13,874 |
| Other comprehensive income | ||||
| Items that will never be reclassified to profit or loss | ||||
| Re-measurements of defined benefit liability (asset) | 9,023 | -2,334 | -3,247 | 374 |
| Related income tax | -1,805 | 467 | 91 | 205 |
| Items that are or may be reclassified to profit or loss | ||||
| Foreign operations – foreign currency translation differences | 1,351 | -7,567 | -8,026 | 424 |
| Cash flow hedges – effective portion of changes in fair value | -1,076 | – | -796 | – |
| Cash flow hedges – reclassified to profit or loss | 825 | – | 412 | – |
| Related income tax | 50 | – | 77 | – |
| Other comprehensive income, net of tax | 8,368 | -9,434 | 11,489 | 1,003 |
| Total comprehensive income for the period | 36,224 | 8,490 | 13,787 | 14,877 |
Consolidated Balance Sheet
| As at 30 September | As at 31 December | As at 1 January | |||
| In EUR thousand | 2021 | 2020 | 2020 | 2019 | 2019 |
| IFRS | IFRS | IFRS | |||
| (unaudited) | (audited) | (audited) | |||
| ASSETS | |||||
| Goodwill | 369,194 | 365,228 | 365,392 | 365,105 | 365,163 |
| Other intangible assets | 36,232 | 38,389 | 37,990 | 39,648 | 2,510 |
| Property, plant and equipment | 127,400 | 134,943 | 133,292 | 148,395 | 135,774 |
| Right-of-use assets | 31,689 | 32,510 | 30,870 | 35,793 | 34,726 |
| Other receivables | 983 | 1,347 | 993 | 1,652 | 1,328 |
| Deferred tax assets | 20,190 | 20,712 | 25,463 | 19,467 | 14,023 |
| Defined benefit asset | 6,598 | 2,178 | 2,129 | 1,539 | 523 |
| Non-current assets | 592,285 | 595,306 | 596,130 | 611,599 | 554,047 |
| Inventories | 143,560 | 111,913 | 105,296 | 114,389 | 111,207 |
| Trade receivables | 142,598 | 95,902 | 53,061 | 67,255 | 90,743 |
| Related party vendor note and other receivables | 30,590 | 96,615 | 24,980 | 81,484 | 103,504 |
| Derivative assets | 463 | 911 | 1,173 | 304 | 533 |
| Current tax assets | 6,770 | 234 | 499 | 989 | 1,799 |
| Cash and cash equivalents | 32,167 | 11,862 | 55,012 | 12,642 | 14,488 |
| Current assets | 356,148 | 317,437 | 240,020 | 277,064 | 322,273 |
| TOTAL ASSETS | 948,433 | 912,743 | 836,151 | 888,662 | 876,318 |
| EQUITY AND LIABILITIES | |||||
| Equity | |||||
| Share capital | 3 | 3 | 3 | 3 | 3 |
| Fund of invested unrestricted equity | 482,850 | 498,690 | 497,505 | 513,964 | 491,613 |
| Other reserves | -4,566 | -7,128 | -7,032 | -609 | -1,483 |
| Retained earnings | 32,274 | 1,492 | 201 | -10,391 | -14,491 |
| Net profit for the period | 27,400 | 17,655 | 24,854 | 13,749 | – |
| Equity attributable to owners of the Company | 537,961 | 510,712 | 515,532 | 516,716 | 475,641 |
| Non-controlling interests | 1,761 | 1,602 | 1,755 | 1,333 | 1,659 |
| Total equity | 539,722 | 512,314 | 517,287 | 518,050 | 477,300 |
| Liabilities | |||||
| Loans and borrowings | 7,791 | 40,159 | – | 30,191 | 62,949 |
| Lease liabilities | 34,782 | 34,622 | 29,729 | 33,517 | 31,118 |
| Defined benefit liabilities | 23,156 | 27,859 | 28,528 | 26,057 | 26,282 |
| Other payables | 1,175 | 1,270 | 1,248 | 1,423 | 1,489 |
| Provisions | 6,709 | 3,021 | 7,315 | 4,609 | 5,556 |
| Deferred tax liabilities | 5,482 | 2,545 | 3,869 | 3,991 | 6,228 |
| Total non-current liabilities | 79,095 | 109,476 | 70,689 | 99,788 | 133,621 |
| Loans and borrowings | 100,138 | 115,975 | 94,487 | 110,131 | 98,985 |
| Lease liabilities | 2,079 | 1,803 | 5,943 | 6,029 | 5,031 |
| Trade and other payables | 212,856 | 164,487 | 141,627 | 148,089 | 158,830 |
| Derivative liabilities | 1,213 | 1,262 | 972 | 662 | 712 |
| Provisions | 6,264 | 2,840 | 1,177 | 2,452 | 472 |
| Current tax liabilities | 7,066 | 4,587 | 3,968 | 3,464 | 1,368 |
| Total current liabilities | 329,616 | 290,953 | 248,175 | 270,826 | 265,397 |
| Total liabilities | 408,711 | 400,430 | 318,864 | 370,614 | 399,018 |
| TOTAL EQUITY AND LIABILITIES | 948,433 | 912,743 | 836,151 | 888,662 | 876,318 |
Consolidated Statement of Cash Flows
| 1 January to 30 September | For the year ended 31 December | |||
| In EUR thousand | 2021 | 2020 | 2020 | 2019 |
| IFRS | IFRS | |||
| (unaudited) | (audited) | |||
| Cash Flow from operating activities | ||||
| Profit for the period | 27,856 | 17,924 | 25,276 | 13,874 |
| Adjustments: | ||||
| Depreciation, amortisation and impairment losses | 23,438 | 22,168 | 29,688 | 26,336 |
| Gain on sale of property plant and equipment | -456 | -46 | -134 | -351 |
| Share-based payments | 1,118 | 1,048 | 2,137 | 417 |
| Finance income and expenses | 5,855 | 8,315 | 10,107 | 11,754 |
| Income tax expenses | 11,633 | 3,504 | 6,650 | 2,049 |
| Other non-cash expenses | -2,502 | 2,801 | – | -124 |
| Cash flow before change in net working capital | 66,942 | 55,714 | 73,724 | 53,955 |
| Changes in net working capital: | ||||
| Inventories | -35,296 | -57 | 4,941 | -2,082 |
| Trade and other receivables | -89,378 | -32,531 | 9,350 | 34,480 |
| Trade and other payables | 70,222 | 22,175 | 2,886 | -16,161 |
| Provisions and employee benefits | 6,192 | – | -1,118 | -107 |
| Interest paid | -6,135 | -10,568 | -12,507 | -12,562 |
| Interest received | 281 | 2,252 | 1,619 | 1,841 |
| Income taxes paid, net | -9,658 | -6,471 | -9,963 | -8,315 |
| Net cash from operating activities | 3,170 | 30,514 | 68,931 | 51,049 |
| Cash flow from investing activities | ||||
| Proceeds from sale of property plant and equipment | 702 | – | 705 | 1,441 |
| Purchases of property, plant and equipment | -7,982 | -7,281 | -11,604 | -31,163 |
| Payment of deferred consideration for business acquisition | -4,510 | – | – | -3 430 |
| Net cash from (used in) investing activities | -11,790 | -7,281 | -10,899 | -33,152 |
| Cash flow from financing activities | ||||
| Proceeds from long-term borrowings from related party | – | – | – | 15,816 |
| Repayment of long-term borrowings to related party | – | – | -30,192 | -33,757 |
| Increase of equity | 308 | – | – | 472 |
| Repayment of lease liabilities | -7,316 | -7,029 | -9,445 | -8,559 |
| Dividends and group contributions paid to related party | -15,413 | -14,976 | -14,976 | -4,151 |
| Proceeds from short-term borrowings | – | – | 1,226 | – |
| Repayment of the short-term loans | -2,350 | – | – | – |
| Proceeds from long-term borrowings from related party | 10,191 | – | 89,000 | 10,386 |
| Repayments of short-term borrowings to related party | – | -1,569 | -50,128 | – |
| Net cash from (used in) financing activities | -14,580 | -23,574 | -14,515 | -19,793 |
| Net increase/decrease in cash and cash equivalents | -23,201 | -341 | 43,517 | -1,898 |
| Cash and cash equivalents as at 1 January | 55,012 | 12,642 | 12,642 | 14,488 |
| Cash movement | -23,201 | -341 | 43,517 | -1,898 |
| Impact of change in exchange rates | 356 | -439 | -1,147 | 51 |
| Cash and cash equivalents at end of the period | 32,167 | 11,862 | 55,012 | 12,642 |
| 9 April to 31 December | |
| In EUR thousand | 2018 |
| FAS | |
| (audited) | |
| Cash flow from operating activities | |
| Result for the period | -10,751 |
| Adjustments: | |
| Business transactions with no cash flow, as well as transfers to other cash flows | |
| Depreciation, amortisation and impairment | 21,372 |
| Other | -466 |
| Non-cash transactions and transfers to cash flow from other activities, total | 20,906 |
| Interest and other financial income and expense | 17,584 |
| Taxes | 5,658 |
| Changes in net working capital: | |
| Change in long-term other receivables | -693 |
| Change in trade receivables | 43,140 |
| Change in inventories | 18,965 |
| Change in trade payables | -11,328 |
| Change in other receivables | -12,889 |
| Change in other liabilities | -409 |
| Received interests | 1,162 |
| Paid interests | -7,237 |
| Other financial items, net | -451 |
| Paid income taxes | -4,660 |
| Net cash flow from operating activities | 58,997 |
| Cash flow from investing activities | |
| Purchases of property, plant and equipment | -19,083 |
| Purchases of intangible assets | -635 |
| Proceeds from sale of property, plant and equipment | -19 |
| Acquired shares in subsidiaries and related parties | -5,993 |
| Divestments of other investments | 2,035 |
| Net cash from investing activities | -23,695 |
| Cash flow from financing activities | |
| Proceeds from loans and borrowings | 3,809 |
| Net change in current loans and borrowings | -16,244 |
| Net change in cash pool | -19,253 |
| Issue of shares | 1,490 |
| Payments of finance lease liabilities | -533 |
| Net cash from financing activities | -30,730 |
| Net change in cash and cash equivalents | 4,571 |
| Cash and cash equivalents at the beginning of the financial year | 7,287 |
| Effect of exchange rates on cash and cash equivalents | 2,629 |
| Cash and cash equivalents at the end of the financial year | 14,488 |
| Financial key figures | As at and for the nine months ended 30 September | As at and for the year ended 31 December | As at 1 January and for the period 9 April to 31 December | ||
| In EUR thousand unless otherwise indicated | 2021 | 2020 | 2020 | 2019 | 2018 |
| IFRS | IFRS | FAS/IFRS2) | |||
| (unaudited) | (unaudited, unless otherwise indicated) | ||||
| Net sales | 620,981 | 485,123 | 671,178 1) | 696,797 1) | 405,746 1) |
| Net sales growth | 28.0 % | -5.6 % | -3.7 % | n/a | n/a |
| EBIT | 45,344 | 33,056 | 42,028 1) | 27,896 1) | 942 1) |
| EBIT margin | 7.3 % | 6.8 % | 6.3 % | 4.0 % | 0.2 % |
| EBITDA | 68,781 | 55,225 | 71,938 | 54,232 | 22,315 |
| EBITDA margin | 11.1 % | 11.4 % | 10.7 % | 7.8 % | 5,5 % |
| Adjusted EBITDA | 81,296 | 61,211 | 85,120 | 65,409 | 34,017 |
| Adjusted EBITDA margin | 13.1 % | 12.6 % | 12.7 % | 9.4 % | 8.4 % |
| EBITA | 47,529 | 35,196 | 44,944 | 29,217 | 12,564 |
| EBITA margin | 7.7 % | 7.3 % | 6.7 % | 4.2 % | 3.1 % |
| Adjusted EBITA | 60,043 | 41,183 | 58,126 | 40,394 | 24,266 |
| Adjusted EBITA margin | 9.7 % | 8.5 % | 8.7 % | 5.8 % | 6.0 % |
| Profit before tax | 39,489 | 24,742 | 31,921 1) | 15,923 1) | -16,645 1) |
| Profit for the period | 27,856 | 17,924 | 25,276 1) | 13,874 1) | -10,751 1) |
| Earnings per share, EUR | 2.48 | 1.59 | 2.25 1) | 1.36 1) | n/a |
| Cash flow from operating activities | 3,170 | 30,514 | 68,931 1) | 51,049 1) | 58,997 1) |
| Net working capital | 96,061 | 61,206 | 33,464 | 54,149 | 74,952 |
| Capex | 7,982 | 7,281 | 11,604 | 34,593 | 19,718 |
| Acquisitions (M&A) | -4,510 | – | – | -3,430 | 5,993 |
| Adjusted operating cash flow for the last 12 months | 58,045 | 78,869 | 94,201 | 55,049 | n/a |
| Cash conversion | 55.2 % | 99.8 % | 110.7 % | 84.2 % | n/a |
| Cash and cash equivalents | 32,167 | 11,862 | 55,012 1) | 12,642 1) | 14,488 1) |
| Operative capital employed | 291,382 | 267,047 | 235,616 | 277,985 | 247,962 |
| Return on operative capital employed | 18.6 % | 15.6 % | 17.8 % | 10.0 % | 0.4 % |
| Net debt | 112,623 | 180,697 | 75,148 | 167,226 | 183,557 |
| Net debt/Adjusted EBITDA | 1.1 | 2.3 | 0.9 | 2.6 | n/a |
| Equity/Asset ratio | 56.7 % | 56.0 % | 61.7 % | 58.1 % | 54.3 % |
| Return on equity | 6.6 % | 4.6 % | 4.8 % | 2.8 % | n/a |
| ____________________________ 1) Audited 2) Purmo Group was incorporated on 9 April 2018, and the Group was formed on 1 June 2018 when Purmo Group acquired from Rettig Group the shares in Rettig ICC B.V. that owned the Purmo business, and as such, Purmo Group’s consolidated FAS financial statements for the financial period from 9 April 2018 to 31 December 2018 include Purmo Group’s business operations for a seven-month period from the date of acquisition to year-end 2018. The consolidated income statement information for the financial period from 9 April 2018 to 31 December 2018 presented in this Prospectus has been derived from Purmo Group’s audited consolidated financial statements prepared in accordance with Finnish accounting standards. Balance sheet information is based on the opening IFRS balance sheet as at 1 January 2019 reported under IFRS. |
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The definitions and reasons for the use of Financial Key Indicators:
| Key figure | Definition | Reason for the use |
| EBIT | Profit before tax and net financial items (Operating profit). | EBIT is used to measure profitability generated by operating activities of the Group. |
| EBIT margin | EBIT as per centage of net sales. | |
| EBITDA | Operating profit before depreciation, amortisation and impairment. | EBITDA is an indicator to measure the operating performance of the Group, before depreciation, amortisation and impairment. |
| EBITDA margin | EBITDA as per centage of net sales. | |
| EBITA | Operating profit before the amortisation of intangibles including trademarks. | EBITA is an indicator to measure the operating performance of the Group, before amortisation of intangibles including trademarks. |
| EBITA margin | EBITA as per centage of net sales. | |
| Gross profit | Net sales less cost of sales. | – |
| Comparability adjustments | Comparability adjustments comprise of direct transaction and integration costs on M&A activities, restructuring costs and costs incurred in connection with performance improvement programmes, costs that have been incurred in connection with the formation of Purmo Group and costs incurred to achieve stand-alone readiness which will not continue post-Merger as well as costs incurred as a result of Rettig Group’s ownership comprising of management fees and Rettig Group’s legacy incentive plans in addition to other one-off costs such as legal claims or significant out-of-period adjustments and exceptional gains and losses on sale of fixed assets. | Comparability adjustments account for items that have been adjusted due to specific events that otherwise affect comparability between different periods. Provides a better understanding to management and investors of the comparable operating activities.Adjusted EBITDA, adjusted EBITDA margin, Adjusted EBITA and Adjusted EBITA margin are presented in addition to EBIT, EBITDA and EBITA to reflect the underlying business performance by adjusting for items that the Group considers to impact comparability (“Comparability adjustments”). |
| Adjusted EBITDA | EBITDA before comparability adjustments | |
| Adjusted EBITDA margin | Adjusted EBITDA as per centage of net sales | |
| Adjusted EBITA | EBITA before comparability adjustments | |
| Adjusted EBITA margin | Adjusted EBITA as per centage of net sales | |
| Net working capital | Purmo Group’s inventories, operative receivables less trade and other operative liabilities. | Net working capital is a useful measure to monitor the level of direct net working capital tied to the operations and changes therein. |
| Capex | Capex is a measure of capital expenditure for the period which comprises the Group’s investments in property, plant and equipment and intangible assets derived from the consolidated cash flow statement for each financial period. | Capex is an indicator of the Group’s investments in property, plant and equipment and intangible assets |
| Acquisitions (M&A) | Acquisitions of subsidiaries and investments in associates derived from the consolidated cash flow statement for the period. | Acquisitions capex is an indicator for investments in acquisition of businesses that are intended to grow the Group’s product or service offering, assets or technologies, productive capacity or performance |
| Adjusted operating cash flow for the last 12 months | Adjusted EBITDA on a rolling twelve-month basis deducted with the change in net working capital and capex on a rolling twelve-month basis. | Adjusted operating cash flow provides information on the Group’s operating cash flow on an annualised basis, excluding adjusting items. |
| Cash conversion | Adjusted operating cash flow divided by Adjusted EBITDA based on a rolling twelve-month calculation. | Cash conversion is used to assess Purmo Group’s efficiency to convert its operating results into cash. The ratio indicates the Group’s capacity to pay dividends and / or generate funds for acquisitions or other transactions. |
| Operative capital employed | Net working capital, other intangible assets, property, plant and equipment, and right-of-use assets. | Capital employed presents the total investment in the Group’s business operations. |
| Return on operative capital employed | EBIT based on a rolling twelve-month calculation divided by operative capital employed. | Measures the return on the capital tied up in the business. |
| Net debt | Non-current and current borrowings (including shareholder loan) and non-current and current lease liabilities less cash and cash equivalents. | To show the net of interest bearing assets and interest bearing liabilities |
| Net debt/Adjusted EBITDA | Net debt divided by Adjusted EBITDA based on a rolling twelve-month calculation | The ratio indicates how fast the Group can repay its net debt using adjusted EBITDA (expressed in years), and it is a useful measure to monitor the level of the Group’s indebtedness. |
| Equity to Asset ratio | Total equity attributed to the owners of the company divided by total assets derived from the IFRS consolidated financial statements. | The ratio is a useful indicator to measure how much of the Group’s assets are funded by issuing shares rather than through external borrowings. |
| Return on equity | Group’s profit for the period attributable to the owners of the Parent based on a rolling twelve-month calculation divided by the average total equity attributable to owners of the Company. | Shows owners the return on their invested capital |
Reconciliation of Alternative Performance Measures
Reconciliation of EBITA, Adjusted EBITA, EBITDA and Adjusted EBITDA:
| For the nine months ended 30 September | For the year ended 31 December | For the period 9 April to 31 December | |||
| In EUR thousand | 2021 | 2020 | 2020 | 2019 | 2018 |
| IFRS | IFRS | FAS | |||
| (unaudited) | (unaudited, unless otherwise indicated) | ||||
| EBIT | 45,344 | 33,056 | 42,028 1) | 27,896 1) | 942 1) |
| EBIT margin | 7.3 % | 6.8 % | 6.3 % | 4.0 % | 0.2 % |
| Amortisation | 2,185 | 2,140 | 2,916 1) | 1,321 1) | 11,622 1) |
| EBITA | 47,529 | 35,196 | 44,944 | 29,217 | 12,564 |
| EBITA margin | 7.7 % | 7.3 % | 6.7 % | 4.2 % | 3.1 % |
| Depreciation | 21,252 | 20,029 | 26,994 1) | 25,015 1) | 9,751 1) |
| EBITDA | 68,781 | 55,225 | 71,938 | 54,232 | 22,315 |
| EBITDA margin | 11.1 % | 11.4 % | 10.7 % | 7.8 % | 5,5 % |
| Comparability adjustments | |||||
| M&A related transaction and integration costs | 22 | 172 | 382 | 1,495 | 730 |
| Restructuring costs and one-off costs related to efficiency programmes |
8,609 | 3,150 | 7,813 | 3,770 | 4,238 |
| Formation of Purmo Group and standalone preparations | 2,868 | 1,046 | 1,978 | 1,271 | – |
| Management fee to owners and legacy Rettig Group incentive plans |
1,365 | 1,619 | 2,873 | 4,593 | 5,157 |
| Other | -350 | – | 136 | 48 | 1,577 |
| Total adjustments | 12,514 | 5,987 | 13,182 | 11,177 | 11,702 |
| Adjusted EBITDA | 81,296 | 61,211 | 85,120 | 65,409 | 34,017 |
| Adjusted EBITDA margin | 13.1 % | 12.6 % | 12.7 % | 9.4 % | 8.4 % |
| Depreciation | 21,252 | 20,029 | 26,994 1) | 25,015 1) | 9,751 1) |
| Adjusted EBITA | 60,043 | 41,183 | 58 126 | 40,394 | 24,266 |
| Adjusted EBITA margin | 9.7 % | 8.5 % | 8.7 % | 5.8 % | 6.0 % |
| ____________________________ 1) Audited |
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Reconciliation of Adjusted Operating Cash Flow for the last 12 months and Cash Conversion:
| As at and for the nine months ended 30 September | As at and for the year ended 31 December | |||
| In EUR thousand | 2021 | 2020 | 2020 | 2019 |
| IFRS | IFRS | |||
| (unaudited) | (unaudited, unless otherwise indicated) | |||
| Adjusted EBITDA for the last 12 months | 105,204 | 79,020 | 85,120 | 65,409 |
| Change in net working capital compared to previous year same period |
-34,855 | 16,729 | 20,685 | 20,803 |
| Capex for the last 12 months | -12,305 | -16,880 | -11,604 | -31,163 |
| Adjusted operating cash flow for the last 12 months | 58,045 | 78,869 | 94,201 | 55,049 |
| Cash conversion | 55.2 % | 99.8 % | 110.7 % | 84.2 % |
Reconciliation of Net working capital, operative capital employed and return on capital employed:
| As at 30 September | As at 31 December | |||
| In EUR thousand | 2021 | 2020 | 2020 | 2019 |
| IFRS | IFRS | |||
| (unaudited) | (unaudited, unless otherwise indicated) | |||
| Inventories | 143,560 | 111,913 | 105,296 1) | 114,389 1) |
| Operative receivables2) | 164,217 | 113,409 | 70,681 | 84,966 |
| Operative liabilities3) | 211,717 | 164,116 | 142,513 | 145,206 |
| Net working capital | 96,061 | 61,206 | 33,464 | 54,149 |
| Other intangible assets | 36,232 | 38,389 | 37,990 1) | 39,648 1) |
| Property, plant and equipment | 127,400 | 134,943 | 133,292 1) | 148,395 1) |
| Right-of-use assets | 31,689 | 32,510 | 30,870 1) | 35,793 1) |
| Operative capital employed | 291,382 | 267,047 | 235,616 | 277,985 |
| EBIT for the last 12 months | 54,315 | 41,034 4) | 42,028 | 27,896 |
| Return on operative capital employed | 18.6 % | 15.4 % | 17.8 % | 10.0 % |
| ____________________________ 1)Audited 2) On 30 September 2021, operative receivables include trade receivables and EUR 21,143 thousand (30 September 2020: EUR 17,005 thousand, 2020: EUR 17,134 thousand, 2019: 17,169 thousand) other current operative receivables included in related party vendor note and other receivables and EUR 476 thousand (30 September 2020: 502 thousand, 2020: EUR 487 thousand, 2019: 543 thousand) non-current in other receivables. 3)On 30 September 2021, operative liabilities include EUR 210,543 thousand (30 September 2020: EUR 162,842 thousand, 2020: EUR 141,266 thousand, 2019: 143,783 thousand) operative liabilities included in trade and other payables and EUR: 1,174 thousand (30 September 2020: 1,274 thousand, 2020: EUR 1,247 thousand, 2019: 1,423 thousand) non-current operative liabilities included in other payables. 4) The cumulative EBIT for the last 12 months as at 30 September 2020 includes EUR 7,978 thousand of EBIT for the last quarter of 2019. |
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Reconciliation of Net debt:
| As at 30 September | As at 31 December | As at 1 January |
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| In EUR thousand | 2021 | 2020 | 2020 | 2019 | 2019 |
| IFRS | IFRS | IFRS | |||
| (unaudited) | (audited unless otherwise indicated) | ||||
| Loans and borrowings (non-current) | 7,791 | 40,159 | – | 30,191 | 62,949 |
| Loans and borrowings (current) | 100,138 | 115,975 | 94,487 | 110,131 | 98,947 |
| Lease liabilities (non-current) | 34,782 | 34,622 | 29,729 | 33,517 | 31,118 |
| Lease liabilities (current) | 2,079 | 1,803 | 5,943 | 6,029 | 5,031 |
| Cash and cash equivalents | -32,167 | -11,862 | -55,012 | -12,642 | -14,488 |
| Net debt | 112,623 | 180,697 | 75,148 1) | 167,226 1) | 183,557 1) |
| ____________________________ 1) Unaudited |
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Reconciliation of Net debt / Adjusted EBITDA:
| As at and for the nine months ended 30 September | As at and for the year ended 31 December | |||
| In EUR thousand | 2021 | 2020 | 2020 | 2019 |
| IFRS | IFRS | |||
| (unaudited) | (unaudited) | |||
| Net debt | 112,623 | 180,697 | 75,148 | 167,226 |
| Adjusted EBITDA for the last 12 months | 105,204 | 79,020 1) | 85,120 | 65,409 |
| Net debt/Adjusted EBITDA | 1.1 | 2.3 | 0.9 | 2.6 |
| ____________________________ 1) The cumulative Adjusted EBITDA for the last 12 months as at 30 September 2020 includes EUR 17,809 thousand of Adjusted EBITDA for the last quarter of 2019. |
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Reconciliation of Equity/Asset ratio:
| As at 30 September | As at 31 December | As at 1 January | |||
| In EUR thousand | 2021 | 2020 | 2020 | 2019 | 2019 |
| IFRS | IFRS | IFRS | |||
| (unaudited) | (audited, unless otherwise indicated) | ||||
| Equity attributable to owners of the Company | 537,961 | 510,712 | 515,532 | 516,716 | 475,703 |
| Total assets | 948,433 | 912,743 | 836,151 | 888,662 | 877,014 |
| Equity/Asset ratio | 56.7% 1) | 56.0% 1) | 61.7% 1) | 58.1% 1) | 54.2% 1) |
| ____________________________ 1) Unaudited |
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Reconciliation of Return on Equity:
| As at and for the nine months ended 30 September | As at and for the year ended 31 December | |||
| In EUR thousand | 2021 | 2020 | 2020 | 2019 |
| IFRS | IFRS | |||
| (unaudited) | (audited, unless otherwise indicated) | |||
| The cumulative last 12 month profit attributable to owners of the Company2) |
34,600 | 23,461 | 24,854 | 13,750 |
| Equity attributable to owners of the Company beginning of period |
515,532 | 516,716 | 516,716 | 475,641 |
| Equity attributable to owners of the Company end of period | 537,961 | 510,712 | 515,532 | 516,716 |
| Equity attributable to owners of the Company average | 526,746 1) | 513,713 1) | 516,123 1) | 496,179 1) |
| Return on equity | 6.6% 1) | 4.6% 1) | 4.8% 1) | 2.8% 1) |
| ____________________________ 1) Unaudited 2) Cumulative last 12 month profit for the period attributed owners of the Company as at 30 September 2021 includes EUR 5,806 thousand profit for the period attributed to owners of the Company for the last quarter of 2019. |
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