RATIONAL AG, DE0007010803

RATIONAL AG, DE0007010803

03.11.2021 - 07:04:36

Rational AG generates record new orders in the first nine months - supply bottleneck has adverse effect on deliveries

Landsberg am Lech, 3. November 2021

New orders at record high - 17 percent up on 2019 The order situation has continued to improve since March 2021. In the third quarter of 2021, Rational achieved an increase in orders of 70 percent compared with 2020 and of 40 percent compared with the pre-crisis year of 2019. In the nine-month period, the rise in new orders was just above 50 percent as against 2020; compared with 2019, new orders were up by around 17 percent.

"All regions contributed to this excellent performance. Especially Asia and the German-speaking region were very successful, with growth rates of more than 20 percent on 2019," explains CEO Dr. Peter Stadelmann.

Sales revenues of 207 million euros in the third quarter of 2021 - year-on-year growth of 23 percent Due to the current supply difficulties, Rational was unable to fulfil its high level of orders on hand. Despite these restrictions, the company generated sales revenues of 206.9 million euros in the third quarter of 2021, therefore almost matching sales revenue levels seen in the third quarter of 2019 (2019: 213.2 million euros). When compared to the prior-year quarter, which had still been affected by coronavirus- related reductions, Rational recorded growth in sales revenue of 23 percent (2020: 168.2 million euros).

After nine months, this resulted in sales revenues expanding by 26 percent to 586.3 million euros. Regional growth rates compared with the crisis year of 2020 ranged from about 20 percent in Europe to about 30 percent in Asia. In the nine-month period of the current fiscal year, changes in exchange rates slowed sales revenue growth by about one percentage point.iCombi and iVario - the new standards in cooking technology In May and June 2020, Rational launched two new appliance generations, the iCombi and the iVario, which have since set new standards in the market. Their competitive advantages are a major reason for the pleasing order intake. In the iCombi product group, sales revenues were up 25 percent year-on-year in the first nine months of 2021, at 526.3 million euros (2020: 421.3 million euros). In the iVario product group, sales revenues rose by as much as 34 percent to 60.0 million euros (2020: 44.9 million euros).56 percent gross margin in the first nine months of 2021 - 55 percent in the third quarter Cost of sales increased slightly more slowly than sales revenues in the first nine months, by around 23 percent, to 258.1 million euros (2020: 209.2 million euros). As a result, the gross margin improved to 56.0 percent in this period of 2021 (2020: 55.1 percent). In the current year, the production process benefited from a major improvement in productivity about one year after the production launch of the new appliance generation.

The - in some cases - significant rise in commodity and component costs began to have a tangible impact on production costs in the third quarter, causing these costs to increase slightly faster than sales revenues. For this reason, the gross margin for this period was half a percentage point down on the prior-year quarter, or one percentage point when adjusted for changes in exchange rates. Compared with the second quarter of 2021, the resulting decline was slightly higher than one percentage point.23 percent EBIT margin after nine months EBIT (earnings before financial result and taxes) in the first nine months of the current fiscal year was 134.1 million euros, up threefold on the first nine months of 2020 (2020: 64.4 million euros). The EBIT margin was 22.9 percent (2020: 13.8 percent). This year's EBIT margin in the first nine months benefited from the healthy sales revenue performance in combination with continuing lower cost levels. While sales revenues rose by 26 percent year-on-year, operating costs were only 7 percent above the prior-year level. Total operating costs amounted to 197.6 million euros in the first nine months of 2021 (2020: 184.9 million euros). One reason for this is that sales events such as trade shows but also business trips were still limited due to contact and travel restrictions.

Adjusted for all currency effects, the EBIT margin after nine months in 2021 was 22.7 percent.

145 million euros in operating cash flow In the first nine months of the current fiscal year, the cash flow from operating activities was 145.1 million euros (2020: 45.7 million euros). This significant rise was largely attributable to the higher profit before taxes. Another significant effect arose from changes in provisions. Last year, a significant decline in the business volume prompted reductions in provisions, especially for taxes as well as for variable remuneration and dealer bonuses. In 2021, provisions for many of these items were increased again, in some cases significantly so, due to the good sales revenue and earnings performance.

Cash flow from investing activities includes investments in property, plant and equipment and intangible assets. In the first nine months of 2021, these investments amounted to 16.4 million euros (2020: 21.9 million euros). This is mainly due to investments in the construction of the new logistics centre, which was completed in spring of this year, in expanding the Wittenheim location, where work started in spring, and in modernising the machinery installed at the Landsberg am Lech location.

The cash flow from financing activities of -62.4 million euros mainly reflects the dividend payment (-54.6 million euros), the repayment of bank loans (-1.2 million euros) and the repayment of and payments for lease liabilities in accordance with IFRS 16 (-6.4 million euros).Employees As a socially responsible company, Rational had made only minimal adjustments to the size of its workforce during the crisis. In line with the improving market prospects, the number of employees has increased since the second quarter for the first time since the start of the coronavirus crisis. At the end of September 2021, the Rational Group employed 2,216 people worldwide. Of these, 1,257 were employed in Germany.Outlook 2021 In view of the encouraging recovery of industrial kitchen markets, the lifting of coronavirus restrictions in a growing number of countries and, above all, the high level of customer satisfaction, the Executive Board of Rational AG assumes that the current positive trend will continue in the medium term.

The coming fourth quarter will be characterised by uncertainty about the global supply shortages and logistics constraints. "We described these factors as a possible risk scenario in our July forecast. These factors have intensified in recent weeks, in some cases significantly", says CFO J?rg Walter, describing the current situation. As the trends change daily, the short-term consequences are hard to predict.

Due to the countermeasures initiated, Rational currently sees itself well positioned to master these challenges. In the more optimistic forecast scenario, we consider sales revenue growth of 15 to 20 percent and an EBIT margin of around 20 percent to be realistic.

Peter Stadelmann explains, "Should the already tense situation be exacerbated by additional bottlenecks in materials procurement, longer delays or supply chain disruptions, the Executive Board expects a corresponding negative effect on sales revenues and earnings. In this case, sales revenues would grow in the high single digits in percentage terms and the EBIT margin could be slightly below the forecast 20 percent."

Contact:

Rational Aktiengesellschaft Stefan Arnold / Head of Investor Relations Tel. +49 (0)8191 327-2209 Fax +49 (0)8191 327-72 2209

E-mail: ir@rational-online.comwww.rational-online.com

Editorial note:

The Rational Group is the global market and technology leader for thermal preparation of food in professional kitchens. Founded in 1973, the company employs around 2,200 people, over 1,200 of whom are in Germany. Rational was floated in the Prime Standard of the German stock market in 2000 and is currently represented in the MDAX.

The company's principal objective is to always offer maximum customer benefit. Rational is committed to the principle of sustainability, which is expressed in its corporate policies on environmental protection, leadership, job security and social responsibility. Numerous international awards bear witness to the high quality of the work done by Rational's employees year for year.

Editorial closing date: 29. October 2021

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? ? ? ? Percentage change ? Q3 2021 Q3 2020 Q3 2019 2021 vs. 2020 2021 vs. 2019 Sales revenues (m EUR) 206,9 168,2 213,2 +23 -3 EBIT (m EUR) 49,7 36,8 61,3 +35 -19 EBIT margin (percent) 24,0 21,9 28,8 - - Earnings after taxes (m EUR) 37,8 28,5 47,6 +33 -21 EPS (EUR) 3,33 2,50 4,18 +33 -21 ?

? ? ? ? Percentage change ? 9M 2021 9M 2020 9M 2019 2021 vs. 2020 2021 vs. 2019 Sales revenues (m EUR) 568,3 466,3 612,6 +26 -7 EBIT (m EUR) 134,1 64,4 159,5 +108 -16 EBIT margin (percent) 22,9 13,8 26 - - Earnings after taxes (m EUR) 102,0 46,4 124,2 +120 -18 EPS (EUR) 8,97 4,08 10,92 +120 -18

Additional features:File: RATIONAL AG - Statement on the first nine months of 2021

03.11.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.Archive at www.dgap.de

Language: English Company: RATIONAL AG Siegfried-Meister-Stra?e 1 86899 Landsberg am Lech

Germany Phone: 0049 8191 327 2209 Fax: 0049 8191 327 722209 E-mail: ir@rational-online.com Internet: www.rational-online.com ISIN: DE0007010803 WKN: 701080 Indices: MDAX Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart, Tradegate Exchange EQS News ID: 1245545 ? End of News DGAP News Service

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