Economic development
OVERALL DEVELOPMENT 2020
In 2020, the global firefighting industry held its own in a declining economic environment and is even expected to have achieved slight growth. Against this backdrop, Rosenbauer was once again able to expand its business volume. The Middle East, Central and Eastern Europe, and North America in particular recorded higher deliveries than in the previous year. By contrast, business in Asia was down sharply due to the COVID-19 pandemic and the standstill in China, the largest single market. There was also restraint on the markets in South America and Africa.
Incoming orders in 2020 were very dynamic, closing at € 1,007.7 million, the same level as the previous year. There were increases in procurement figures in the CEEU (Central and Eastern Europe) and NOMA (North and South America) areas, while they declined slightly in the NISA (Northern Europe, Iberia, South America and Africa) area and sharply in the APAC (Asia, Pacific, Australia, China) area. The MENA area was relatively stable compared with 2019. The order backlog of € 1,072.1 million as of December 31, 2020 (2019: € 1,149.5 million) was on a par with annual Group revenues.
The global orders for the RT (Revolutionary Technology), Rosenbauer’s first firefighting vehicle with electric drive, were a particular highlight. The Berlin Fire Department had already made a start in this regard in 2019, followed in the reporting year by the Los Angeles Fire Department, Brandweer Amsterdam, the Dubai Civil Defense, the ACT (Australian Capital Territory) Emergency Services Agency, and a number of other well-known customers.
Consolidated revenues/EBIT (in € million)
DEVELOPMENT OF REVENUES AND EARNINGS
Revenue development
Revenues reached a new record level of € 1,044.2 million in 2020 (2019: € 978.1 million). The MENA, CEEU, and NOMA areas recorded revenue increases, while the NISA area remained at the previous year’s level, and the APAC area recorded a drop. NISA and APAC were most affected by the travel restrictions and supply difficulties caused by the COVID-19 pandemic. Although attempts were made in the first half of the year to counteract this with virtual vehicle handovers or vehicle training and handovers by authorized local partners, a number of planned deliveries had to be postponed.
The Group’s strongest product segment in terms of revenues was Vehicles at 78% (2019: 78%). This was followed by the Fire & Safety Equipment segment, which accounted for 8% (2019: 9%) of total revenues at € 86.3 million (2019: € 85.1 million). Customer Service contributed 7% (2019: 7%) and the Other Revenues segment 4% (2019: 4%). Preventive Fire Protection generated revenues of € 29.1 million (2019: € 21.6 million), contributing 3% (2019: 2%) to consolidated revenues.
By far the largest share of revenues was contributed by the parent company Rosenbauer International AG at € 525.9 million (2019: € 507.0 million). With an export ratio of 91% (2019: 88%) and deliveries to more than 120 countries, Rosenbauer has the largest international presence in the firefighting industry.
BUSINESS SEGMENTS (BY AREA) ROSENBAUER
Revenues by areas in 2020
Cost development
Operating performance (revenues including changes in inventories, capitalized development costs and other expenses) decreased year-on-year from € 1,096.5 million in 2019 to € 1,026.1 million in 2020. As a result, the cost of materials and other operating expenses also decreased.
The cost of materials amounted to € 592.8 million (2019: € 674.6 million), while other expenses totaled € 97.6 million (2019: € 103.8 million). Other operating expenses were additionally reduced by lower travel and trade show costs as a result of the pandemic. The ratio of the cost of materials to operating performance was 57.8% (previous year: 61.5%), while other expenses accounted for 9.5% of operating performance (2019: 9.5%).
The lower operating performance caused by the COVID-19 pandemic could not be fully mitigated by the reduction in staff costs. Government measures to safeguard jobs were not sufficient for this. Instead, staff costs increased to € 250.9 million (2019: € 243.4 million) as a result of a higher headcount and the general increase in wages. The ratio of staff costs to operating performance increased to 24.4% (2019: 22.6%).
The capitalized research and development costs, which were reported in the income statement in 2020, fell from € 7.0 million to € 6.6 million.
Depreciation and amortization expenses on property, plant and equipment and intangible assets increased by 14% from € 23.7 million to € 27.0 million in the reporting year.
Result of operations
The Rosenbauer Group is reporting EBIT of € 57.9 million for the 2020 financial year (2019: € 51.9 million). The bulk of this, namely € 32.5 million, was generated in the fourth quarter. The significant increase in earnings is therefore particularly attributable to the increased volume and lower operating expenses.
The financial result was negative at € -6.4 million and was therefore at the level of the previous year (2019: € -6.3 million). In the year under review, the lower shares of joint ventures were offset by lower interest expenses.
Earnings before taxes (EBT) amounted to € 51.5 million in the reporting period (2019: € 45.5 million). The reported tax expense was € 10.3 million (2019: € 10.9 million); the tax rate was 20% (2019: 24%). After deducting income taxes, the profit for the period was € 41.1 million (2019: € 34.6 million).
The non-controlling interests held by the partners in Rosenbauer America, Rosenbauer Española, Rosenbauer Slovenia, Rosenbauer UK, Rosenbauer South Africa, Eskay Rosenbauer Brunei and Rosenbauer Saudi Arabia amounted to € 12.2 million in the reporting year (2019: € 9.2 million).
Orders
The Rosenbauer Group reported incoming orders of € 1,007.7 million in the past year (2019: € 1,073.7 million). Orders particularly increased in the CEEU and NOMA areas. In the MENA area orders remained roughly level, but decreased in the NISA and APAC areas.
Momentum increased and the order books filled up at the end of the fourth quarter. The orders from the German Federal Ministry of the Interior for 61 disaster control vehicles and from Mecklenburg-Vorpommern (Germany) for 265 fire engines with portable pumps, as well as the order for 22 PANTHERS from the Spanish airport operator Aena are worthy of mention here.
At € 1,072.1 million as of December 31, 2020 (2019: € 1,149.5 million), the order backlog was on a par with consolidated revenues for the year.
Incoming orders/order backlog as of Dec. 31 (in € million)
Vehicle revenue by category in 2020
Vehicles delivered
