Financial Report

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Explanatory notes on the consolidated statement of financial position

Assets

(1) Intangible assets

The following tables show the development and breakdown of intangible assets.

kEUR	Concessions, industrial property rights and similar rights and assets, and licenses to such rights and assets	Internally intangible assets	Advances paid	Total
Acquisition or production cost
01.01.2020	33,113	11,780	180	45,073
Changes in scope of consolidation	0	0	0	0
Currency differences	-114	0	0	-114
Additions	1,360	325	1,378	3,063
Disposals	-3,096	-244	-41	-3,381
Reclassification to assets held for sale	-4	0	0	-4
Repostings	438	0	-413	26
31.12.2020	31,697	11,861	1,104	44,662
Accumulated amortization
01.01.2020	30,537	7,698	51	38,286
Changes in scope of consolidation	0	0	0	0
Currency differences	-107	0	0	-107
Additions	1,374	539	0	1,913
Impairment	461	3,518	742	4,721
Disposals	-3,058	-242	0	-3,300
Reclassification to assets held for sale	-4	0	0	-4
Repostings	3	0	-1	2
31.12.2020	29,206	11,513	792	41,511
Carrying amount
31.12.2020	2,492	348	311	3,152

kEUR	Concessions, industrial property rights and similar rights and assets, and licenses to such rights and assets	Internally intangible assets	Advances paid	Gesamt
Acquisition or production cost
01.01.2019	41,243	13,288	235	54,765
Changes in scope of consolidation	-7,956	0	0	-7,956
Currency differences	369	0	1	370
Additions	879	1,381	106	2,366
Disposals	-1,742	-2,730	0	-4,472
Repostings	320	-159	-161	0
31.12.2019	33,113	11,780	180	45,073
Accumulated amortization
01.01.2019	31,658	8,910	50	40,618
Changes in scope of consolidation	-2,185	0	0	-2,185
Currency differences	120	0	0	120
Additions	2,598	1,518	1	4,117
Disposals	-1,654	-2,730	0	-4,384
Repostings	0	0	0	0
31.12.2019	30,537	7,698	51	38,286
Carrying amount
31.12.2019	2,576	4,082	129	14,148

Intangible assets include licenses, computer software, technologies, development projects, websites, trademarks and customer relationships. The internally produced intangible assets are primarily capitalized development costs of the Group companies.

In the financial year, impairment losses of kEUR 4,721 were recorded for intangible assets, which essentially result from the need for impairment determined in the goodwill impairment test on ELWEMA Automotive GmbH. The impaired assets are software licenses, internally developed software and capitalized development costs.

(2) Right-of-use Assets

With regard to the rights of use arising from leases, additional information on leases can be found in the chapter on lease liabilities.

kEUR	Right-of-use Assets
Cost
01/01/2020	21,045
Changes in scope of consolidation	0
Currency differences	-158
Additions	3,912
Disposals	-1,099
Reclassifications	0
31/12/2020	23,700
Accumulated amortization
01/01/2020	3,813
Changes in scope of consolidation	0
Currency differences	-47
Impairment	1,776
Additions	4,565
Disposals	-1,046
Reclassifications	0
31/12/2020	9,061
Carrying amount
31/12/2020	14,639

kEUR	Right-of-use Assets
Cost
01/01/2019	0
Changes in scope of consolidation	0
Currency differences	4
Additions	19,315
Disposals	-53
Reclassifications	1,779
31/12/2019	21,045
Accumulated amortization
01/01/2019	0
Changes in scope of consolidation	0
Currency differences	-1
Additions	3,834
Disposals	-20
Reclassifications	0
31/12/2019	3,813
Carrying amount
31/12/2019	17,232

The following table shows the carrying amounts of the rights of use for each class of underlying assets:

in kEUR	31/12/2020	31/12/2019
Land and buildings	11,299	13,903
Technical equipment and machinery	1,440	381
Other plant and office equipment (vehicles - passenger cars)	1,445	1,800
Other plant and office equipment (industrial vehicles)	38	117
Other plant and office equipment (others)	416	1,030
Total right-of-Use Assets	14,639	17,232

The following table shows depreciation in connection with rights of use per class of underlying assets:

in kEUR	2020	2019
Depreciation of land and buildings	3,724	2,105
Depreciation of technical equipment and machinery	417	167
Depreciation of other plant and office equipment (vehicles - passenger cars)	1,481	1,004
Depreciation of other plant and office equipment (industrial vehicles)	79	97
Depreciation of other plant and office equipment (others)	640	508
Depreciation of right-of-use-assets	6,341	3,880

Impairments of kEUR 1,777 were made in the financial year. Of this, kEUR 1,378 related to the right of use of the property of IWM Automation Polska Sp.z.o.o. The impairment of the right of use of this property was made because the company is intended to close in 2021 and thus the right to use the property is no longer of any value to the Company. In addition, impairments of kEUR 447 were made on rights of use of the Group company ELWEMA Automotive GmbH. The latter result from the need for impairment in the impairment test of ELWEMA Automotive GmbH and relate to rights of use for operating and office equipment (vehicles – cars / other). Both companies belong to the Non-Core segment .

The following table shows the additions and disposals of usage rights per class of underlying assets:

in kEUR	2020	2019
Additions land and buildings	1,216	6,823
Additions technical equipment and machinery	1,495	347
Additions other plant and office equipment (vehicles - passenger cars)	1,164	1,698
Additions other plant and office equipment (industrial vehicles)	0	0
Additions other plant and office equipment (others)	36	940
Disposals land and buildings	182	0
Disposals technical equipment and machinery	201	0
Disposals other plant and office equipment (vehicles - passenger cars)	548	53
Disposals other plant and office equipment (industrial vehicles)	88	0
Disposals other plant and office equipment (others)	82	0

The disposal of rights of use resulted in a book profit of kEUR 33 (previous year: book loss of kEUR 33). The disposals result from the premature termination of leases in the Non-Core segment.

(3) Goodwill

The disclosed goodwill figures break down in detail as follows:

kEUR	Goodwill	Total
Cost
01.01.2020	63,058	63,058
Changes in scope of consolidation	0	0
Currency differences	-37	-37
Additions	3,000	3,000
Disposals	0	0
Reclassifications	0	0
31.12.2020	63,024	63,024
Accumulated amortization
01.01.2020	16,818	16,818
Changes in scope of consolidation	0	0
Currency differences	-5	-5
Additions	7,628	7,628
Disposals	0	0
Reclassifications	0	0
31.12.2020	24,442	24,442
Carrying amount
31.12.2020	38,582	38,582

kEUR	Goodwill	Total
Cost
01.01.2019	68,838	68,838
Changes in scope of consolidation	-6,039	-6,039
Currency differences	259	259
Additions	0	0
Disposals	0	0
Reclassifications	0	0
31.12.2019	63,058	63,058
Accumulated amortization
01.01.2019	19,424	19,424
Changes in scope of consolidation	-5,512	-5,512
Currency differences	231	231
Additions	2,676	2,676
Disposals	0	0
Reclassifications	0	0
31.12.2019	16,818	16,818
Carrying amount
31.12.2019	46,239	46,239

Goodwill fell to TEUR 38,582 in the financial year (previous year: TEUR 46,239). This decrease results from impairments of the goodwill of ELWEMA Automotive GmbH in the amount of kEUR 4,165 and iNDAT Robotics GmbH in the amount of kEUR 3,463. In addition, there is a decrease of kEUR 42 from currency translation in the Environmental Technologies subgroup and an addition from the first-time consolidation of MA Life Science GmbH in the amount of kEUR 3.

in kEUR	31/12/2020	31/12/2019
Goodwill	38,582	46,239
Process Technologies	6,163	6,163
- thereof bdtronic group	6,163	6,163
Evolving Technologies	26,052	29,512
- thereof NSM Magnettechnik	12,124	12,124
- thereof MA micro automation GmbH group	11,664	11,661
- thereof iNDAT Robotics GmbH	0	3,463
- thereof Mess- und Regeltechnik Jücker GmbH	1,403	1,403
- thereof AIM Micro Systems GmbH	860	860
Environmental Technologies	6,367	6,399
- thereof Vecoplan group	6,367	6,399
Non-Core		4,165
- thereof ELWEMA Automotive GmbH	0	4,165

(4) Property, plant and equipment

Due to the intended sale of the property and the building of IWM Automation GmbH as well as the related operating and office equipment, a reclassification to assets held for sale in the amount of kEUR 2,720 took place in the reporting year.

The impairments in the amount of kEUR 355 essentially result from the impairment test of ELWEMA Automotive GmbH and the need for impairment determined there.

No revaluations have been carried out since the first application of the revaluation method for land and buildings in the MAX Group on 31 December 2019. If the acquisition cost model had continued to be used, the carrying amount of the land and buildings as of 31 December 2020 would have been kEUR 17,661.

kEUR	Land and buildings	Technical equipment and machinery	Other equipment, operating and office equipment	Assets under construction	Prepayments made	Total
Cost
01.01.2020	39,380	18,549	23,305	1,557	0	82,791
Change in the scope of consolidation	0	0	0	0	0	0
Currency differences	-272	-70	-266	0	0	-608
Additions	635	4,411	1,744	523	104	7,417
Disposals	0	-2,463	-1,927	-58	0	-4,448
Reclassification to assets held for sale	-2,760	0	-247	0	0	-3,007
Repostings	-223	1,688	46	-1,536	0	-25
31.12.2020	36,760	22,115	22,656	486	104	82,121
Accumulated depreciation
01.01.2020	5,257	14,269	16,928	0	0	36,454
Change in the scope of consolidation	0	0	0	0	0	0
Currency differences	-7	-62	-184	0	0	-253
Additions	1,161	1,329	1,701	0	0	4,191
Impairment	0	56	299	0	0	355
Disposals	0	-710	-1,680	0	0	-2,390
Reclassification to assets held for sale	-66	0	-221	0	0	-287
Repostings	-125	127	-4	0	0	-2
31.12.2020	6,220	15,009	16,839	0	0	38,068
Carrying amount
31.12.2020	30,540	7,105	5,817	486	104	44,054

kEUR	Land and buildings	Technical equipment and machinery	Other equipment, operating and office equipment	Assets under construction	Prepayments made	Total
Cost
01.01.2019	46,807	19,560	21,170	100	42	87,679
Change in the scope of consolidation	-365	-206	-369	0	-44	-984
Currency differences	62	21	69	0	2	154
Additions	93	1,602	2,996	1,487	0	6,177
Additions from revaluation	2,187	0	0	0	0	2,187
Disposals	-2	-2,428	-561	-30	0	-3,021
Disposals from revaluation	-6,852	0	0	0	0	-6,852
Repostings	-2,550	0	0	0	0	-2,550
31.12.2019	39,380	18,549	23,305	1,557	0	82,791
Accumulated depreciation
01.01.2019	21,649	15,505	15,686	0	0	52,839
Change in the scope of consolidation	-100	-84	-221	0	0	-405
Currency differences	26	14	47	0	0	87
Additions	1,346	1,016	1,921	0	0	4,283
Disposals	0	-2,183	-504	0	0	-2,687
Disposals from revaluation	-17,664	0	0	0	0	-17,664
Repostings	0	0	0	0	0	0
31.12.2019	5,257	14,269	16,928	0	0	36,454
Carrying amount
31.12.2019	34,123	4,280	6,378	1,557	0	46,338

(5) Investment property

The investment property item essentially includes the lease for the leased property on Kesselbachstrasse in Bermatingen. As a result of the closure of the operating business of IWM Automation Bodensee GmbH, this property has been classified as an investment property since 30 June 2019 due to the intention to let the property. Rental income of kEUR 138 (previous year: EUR 0) was achieved in the financial year. The second property in Dettenhausen did not generate rental income in either the current or the previous year.

Based on the current rental agreements, rental income of kEUR 121 is expected for financial year 2021. In the years from 2022 to 2024 like-for-like KEUR 124 per year. Taking into account the basic rental period of the contracts, rental income of kEUR 55 will be achieved in financial year 2025, and kEUR 2 in financial year 2026. All leases automatically self-renew at the end of the base lease term if they are not terminated.

Impairment losses of kEUR 1,097 resulted from fair value adjustments in the Consolidated Statement of Comprehensive Income in the financial year.

As part of the fair value assessment of the Kesselbachstraße property, which is based on a leasing relationship in accordance with IFRS 16, various scenarios were determined on the basis of a market value appraisal with regard to the further development of the property's rental capacity. The lease has a term until 2041. The most likely development from the management’s point of view has been included in the assessment. In general, the fair value of the property will decrease to zero by the end of the rental period. The fair value adjustments are offset by rental income.

The Dettenhausen property was appraised mainly on the basis of the land values determined by the appraisal committee of the municipality of Dettenhausen.

In the financial year, kEUR 64 (previous year: kEUR 39) was incurred for the maintenance of the investment property, whereby kEUR 46 (previous year: kEUR 39) were attributable to the Kesselbachstraße property and kEUR 18 (previous year: kEUR 0) to the Dettenhausen property. The development of the property held as a financial investment can be seen in the following table and follows the classic representation of a schedule of assets:

kEUR	Investment properties
01.01.2020	7,454
Changes in the scope of consolidation	0
Additions	0
Disposals	0
Impairment	-1,097
Transfer from being an owner-occupied property	0
Adjustment of the fair value through the revaluation reserve	0
31.12.2020	6,357

kEUR	Investment properties
01.01.2019	1,254
Changes in the scope of consolidation	0
Additions	0
Disposals	0
Transfer from being an owner-occupied property	3,372
Net gain (loss) from fair value adjustments	2,828
31.12.2019	7,454

(6) Financial assets accounted for using the equity method

The transitional consolidation from full consolidation to equity method accounting for MAX Automation (Asia Pacific) Co. Ltd., Hong Kong, in which MAX Automation SE has a 51% equity interest, took place on 30 April 2019. The transitional consolidation had no effect on earnings. MAX Automation (Asia Pacific) Co. Ltd., Hong Kong, in turn holds a 100% share in MAX Automation (Shanghai) Co., Ltd. The transition to the equity method took place in accordance with the provisions of IFRS 10 due to the loss of control over the company.

The net profit for the period of the associated company accounted for using the equity method in 2020 amounted to TEUR 0 (previous year: TEUR -411). The investment carrying amount of MAX Automation (Asia Pacific) Co. Ltd., Hong Kong, measured at equity amounted to kEUR 0 as of 31 December 2020.

(7) Other financial assets

Other financial assets in the amount of TEUR 1,924 (previous year: kEUR 6,692) include, among other items, two seller loans in the amount of kEUR 650 (previous year: kEUR 827) in connection with the management buy-out of altmayerBTD GmbH & Co. KG in 2015. The only silent participation (previous year: kEUR 800) was repaid in full in December 2020.

They also include a seller loan in the amount of kEUR 522 (previous year: kEUR 4,589) that was made available in 2019 as part of the sale of ESSERT GmbH for the transitional financing of the company and the purchase price deferral. With a notarial deed dated 13 May 2020, repayments totaling kEUR 2,463 were agreed. The purchase price deferral was made interest-free in the amount of kEUR 603 for 10 years and discounted accordingly. The remaining amount was written off.

Furthermore, there is a tenant loan of kEUR 573 (previous year: kEUR 449) and security deposits of kEUR 179 (previous year: kEUR 28).

(8) Deferred taxes

Deferred taxes are attributable to the following Consolidated Statement of Financial Position items as they arise:

in kEUR		31/12/2020		31/12/2019
		Deferred tax assets	Deferred tax liabilities	Deferred tax assets	Deferred tax liabilities
Long-term balance sheet items
A.	Non-current assets	30,417	6,798	24,506	8,161
I.	Intangible assets	523	345	167	1,862
II.	Property, plant and equipment	454	6,395	225	6,241
III.	Non-current financial assets	24	58	0	58
IV.	Deferred tax assets for tax losses carried forward	29,416	0	24,114	0
B.	Non-current liabilities	950	24	1,258	0

Short-term balance sheet items
C.	Current assets	2,968	1,258	1,842	2,747
I.	Inventories and trade payables	2,968	1,258	1,842	2,747
II.	Current financial assets	0	0	0	0
D.	Current liabilities	725	143	1,517	4

Subtotal		35,060	8,223	29,123	10,912
Value adjustments on losses carried forward		-15,834	0	-12,655	0
Netting		-6,170	0	-6,085	0
Total		13,056	8,223	10,383	10,912

The deferred tax assets and liabilities resulting from production orders were netted, as were deferred tax assets and liabilities within the Group entities.

Domestic trade tax losses of kEUR 22,339 (previous year: kEUR 11,597) were carried forward at the parent company of the Group with deferred tax assets of kEUR 3,177 (previous year: kEUR 1,568), and domestic corporation tax losses of kEUR 23,032 (previous year: kEUR 11,803) were carried forward with deferred tax assets of kEUR 3,646 (previous year: kEUR 1,868) and loss carryforwards from Section 4h EStG (interest barrier) in the amount of kEUR 4,095 (previous year: kEUR 0) with deferred tax assets of kEUR 1,085.

In addition, there are domestic trade tax loss carryforwards of kEUR 68,405 (previous year: kEUR 68,319) and corporation tax loss carryforwards of kEUR 70,600 (previous year: kEUR 70,114) as well as loss carryforwards from Section 4h EStG (interest barrier) of kEUR 2,832 (previous year: EUR 0) with deferred tax assets totaling kEUR 20,426 (previous year: kEUR 19,685).

The domestic loss carryforwards including the interest carryforward of kEUR 14,915 (previous year: kEUR 11,811) were not (no longer) capitalized.

Foreign losses carried forward amount to kEUR 5,055 (previous year: kEUR 4,686) and the resulting deferred tax assets of kEUR 1,083 (previous year: kEUR 993) were written down by kEUR 918 (previous year: kEUR 845).

Minimum taxation must be observed in Germany when assessing the recoverability of the losses carried forward. Loss carryforwards can be offset indefinitely against positive results in subsequent years up to kEUR 1,000, and beyond this up to 60%.

The recoverability of the deferred tax assets on loss carryforwards has been reviewed and realization thereof was found to be sufficiently certain.

Of the deferred tax assets on loss carryforwards amounting to kEUR 13,582 (previous year: kEUR 11,459), kEUR 8,975 (previous year: kEUR 7,634) is covered by deferred tax liabilities. Deferred tax assets on loss carryforwards that are not covered by deferred tax liabilities and that occurred in connection with losses recorded in previous periods amount to kEUR 4,607 (previous year: kEUR 3,824). Measures geared to the short-term exploitation of losses have been and will be put in place. With notarial certification on 27 October 2020, the shares in Vecoplan AG, Bad Marienberg, were transferred to MAX Management GmbH, Düsseldorf, at their carrying amount in order to use tax loss carryforwards of MAX Management GmbH after the conclusion of a profit and loss transfer agreement.

The following amounts are reported in the Consolidated Statement of Financial Position:

in kEUR	31/12/2020	31/12/2019
Deferred tax assets:
- from deductible differences	5,644	5,009
- from tax losses carried forward	13,582	11,459
- Netting with deferred tax liabilities	-6,170	-6,085
Total deferred tax assets	13,056	10,383
Deferred tax liabilities:
- from taxable temporary differences	8,223	10,912

Deferred tax liabilities on temporary differences in shares in subsidiaries of kEUR 1,460 (previous year: kEUR 1,409) were not recognized since it is not probable that they will reverse in the foreseeable future.

Deferred taxes of kEUR 4,472 (previous year: kEUR 4,389) were recognized in the Consolidated Statement of Financial Position as a reduction in equity relating to income and expenses recognized directly in equity. Of this amount, kEUR 3,745 (previous year: kEUR 3,704) related to the revaluation of property, plant and equipment, kEUR 784 (previous year: kEUR 784) to the change in use of property, and kEUR 57 (previous year: kEUR 40) to actuarial gains and losses from employee benefits with a resulting increase in equity, and kEUR 59 (previous year: kEUR 59) to the delimitation of IPO expenses with a resulting increase in equity.

(9) Other non-current assets

Other non-current assets in the amount of TEUR 151 (previous year: TEUR 286) mainly consist of non-current trade receivables of kEUR 148 (previous year: kEUR 283).

(10) Inventories

in kEUR	31.12.2020	31.12.2019
Raw materials and supplies	18,316	20,086
Unfinished goods and services	13,296	22,843
Finished goods and services	6,160	7,333
Advance payments made	5,505	3,767
Inventories	43,277	54,029

Compared to the previous year, there was a change in inventories of finished goods and work in progress of TEUR -9,990 (previous year: TEUR -28,542) that is reported in the Consolidated Statement of Comprehensive Income. Deviations from the respective Consolidated Statement of Financial Position items result from exchange rate-related changes in the value of inventories of foreign Group companies.

Inventories include valuation allowances of kEUR 8,527 (previous year: kEUR 7,281). This includes the cancellation of a major order from ELWEMA, for which inventories in the amount of kEUR 966 had already been prepared, as a value-enhancing event.

(11) Contractual assets and trade receivables

in kEUR	31/12/2020	31/12/2019
Contract assets	33,671	41,044
thereof receivables from construction contracts	155,810	165,966
thereof advances received for construction contracts	-122,139	-124,922
Trade receivables	28,673	48,098
specific loss allowance	-1,536	-2,629
expected credit losses	-183	-125
Total	60,625	86,388

The decline in contractual assets and trade receivables was primarily attributable to the MAX Gruppe’s withdrawal from the area of special-purpose machine construction for the automotive sector; the operational business of the companies concerned has been reduced significantly accordingly.

The decrease in trade receivables is also due to the withdrawal from the area of special-purpose machine construction for the automotive sector. In addition, more intensive receivable management in the MAX Group led to a lower level of receivables.

The development of contractual assets is presented in detail below:

Contract assets	in kEUR
31/12/2019	40,987
Transfers from contract assets to trade receivables	-24,980
Changes due to the adjustment of progress	78,762
Impairment of contract assets	-145
Changes due to received prepayments	-61,052
31/12/2020	33,572

(13) Prepayments and accrued income, and other current assets

in kEUR	31.12.2020	31.12.2019
Claims against tax authorities	2,229	7,106
Prepaid expenses	1,827	1,691
Creditors with debit balances	319	356
Security deposits	223	19
Receivables from short-time allowances	211	0
Receivables from employees	154	239
Other receivables	536	557
Total	5,500	9,968

(14) Cash and cash equivalents

Cash and cash equivalents of TEUR 47,736 (previous year: TEUR 40,596) include cash in hand, checks and deposits with banks.

(14) Assets held for sale

Assets held for sale include the property and buildings as well as various operating and office equipment of the Non-Core company IWM Automation GmbH in the amount of TEUR 2,719. The value is essentially based on the property and building in the amount of kEUR 2,694. The operating and office equipment is related to the building.

The property and building as well as the operating and office equipment will no longer be required due to the closure of the company. A corresponding purchase contract was notarized on 19 November 2020. The real completion of the sale is expected in the first quarter of 2021, once all conditions have been met.

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