Financial Report - Notes to the income statement

overview back back overview

Notes to the Consolidated Statement of Income

(29) Sales

2020	Process Technologies	Environmental ‎ Technologies	Evolving Technologies	Non-Core Business	Recon- ‎ciliation	Total
Total segment sales	50,883	110,312	104,935	43,645	-2,774	307,001
Intercompany sales	185	2	2,369	218	-2,774	0
Sales with external customers	50,698	110,310	102,566	43,427	0	307,001
Timing of revenue recognition
At a certain time	32,057	73,011	24,663	16,267	0	145,998
Over a period of time	18,641	37,300	77,903	27,159	0	161,003
Timing of revenue recognition
Germany	20,660	10,767	47,572	6,440	0	85,439
Other EU countries	14,725	34,405	13,636	13,221	0	75,987
North America	5,585	47,966	24,480	3,346	0	81,377
China	6,645	0	4,495	13,460	0	24,600
Rest of the world	3,083	17,172	12,383	6,960	0	39,598
Intercompany sales	185	2	2,369	218	-2,774	0

2019	Process Technologies	Environ- ‎mental Technologies	Evolving Technologies	Non-Core Business	Recon- ‎ciliation	Total
Total segment sales	73,377	127,637	136,213	89,806	-1,546	425,488
Intercompany sales	54	4	1,296	199	-1,552	0
Sales with external customers	73,323	127,633	134,918	89,608	6	425,488
Timing of revenue recognition
At a certain time	54,443	74,818	47,990	42,813	6	220,070
Over a period of time	18,880	52,815	86,927	46,795	0	205,417
Timing of revenue recognition
Germany	26,739	21,618	92,752	15,574	6	156,689
Other EU countries	20,321	39,277	22,184	34,569	0	116,351
North America	10,863	56,990	4,648	-932	0	71,569
China	12,080	0	1,394	-4,068	0	9,406
Rest of the world	3,321	9,748	13,939	44,464	0	71,472
Intercompany sales	54	4	1,296	199	-1,552	0

(30) Other operating income

in kEUR	2020	2019
Income from the release of provisions	3,536	3,623
Income from the reduction of value adjustments	2,750	1,090
Income from the intended use of personnel-related liabilities	1,578	751
Income from currency differences	1,795	668
Income from grants	851	0
Income from damages	438	141
Income from the derecognition of liabilities	435	0
Income from the disposal of property, plant and equipment	115	185
Other	2,595	4,665
Total	14,094	11,123

The item Other amounting to TEUR 2,595 (previous year: TEUR 4,665) includes benefits in kind amounting to TEUR 741 (previous year: TEUR 739).

(31) Cost of materials

in kEUR	2020	2019
Cost of goods purchased	109,138	154,679
Cost of services purchased	27,741	48,026
Total	136,880	202,705

(32) Personnel expenses

in kEUR	2020	2019
Salaries and wages	102,155	118,078
Social security contributions	19,063	21,047
- of which expenses for pensions and benefits	913	1,177
Summe	121,218	139,125

In financial year 2019, wages and salaries included expenses that were incurred in connection with the shutdown of IWM Automation Bodensee GmbH. This includes the following itemized expenses: kEUR 4,277 for severance payments, kEUR 2,761 for the transfer company for employees, and kEUR 500 for so-called value time. The wages and salaries include expenses of kEUR 1,700 (previous year: kEUR 69) that were incurred for remuneration of the management within the framework of IFRS 2 (Share-based Payment). In addition, severance payments of TEUR 1,173 (previous year:TEUR 232) were included in personnel expenses in the financial year.

Average number of employees excluding trainees	2020	2019
Wage-earners	501	645
Salaried employees	1,160	1,170
Total	1,661	1,815

(33) Depreciation, amortization and write-downs

in kEUR	2020	2019
On intangible assets	6,634	4,116
On right-of-use assets	6,341	3,834
On other property, plant and equipment	3,277	2,976
On goodwill	7,628	2,676
On buildings, leasehold improvements and outside facilities	1,269	1,307
- in the above write-downs from purchase price allocations	349	1,189
Total	25,150	14,908

The amortization of goodwill is an impairment of the goodwill of ELWEMA Automotive GmbH and iNDAT Robotics GmbH.

Amortization of intangible assets includes impairment losses of kEUR 4,721 (previous year: kEUR 208) , of which impairment losses of kEUR 1,776 (previous year: kEUR 0) were attributable to right-of-use assets. Depreciation of property, plant and equipment includes impairment losses of kEUR 355 (previous year: kEUR 0). Further information on impairment losses can be found in the chapters on the respective categories of fixed assets.

(34) Other operating expenses

in kEUR	2020	2019
Legal and consultancy fees	6,955	10,209
Outbound freight expenses	3,592	4,232
Travel expenses	3,501	6,850
Maintenance expenses	3,235	4,314
Postage, telephone and IT expenses	2,645	2,859
Expenses from currency effects	2,199	1,249
Personnel expenses (incl. training)	2,086	3,942
Expenses for individual and general bad-debt allowances	1,851	988
Insurance expenses	1,705	1,446
Utility expenses	1,691	1,680
Advertising expenses	1,593	1,792
Sales commissions	1,533	1,937
Warranty expenses	1,457	5,205
Contributions and fees	972	420
Packaging material	731	1,153
Tools	672	877
Other miscellaneous expenses	12,048	20,292
Total	48,466	69,444

Other operating expenses decreased by TEUR -20,978 to TEUR 48,466 (previous year: TEUR 69,444). The change is mainly due to the decrease in warranty expenses by TEUR -3,748 and the decrease in travel expenses by kEUR -3,350 due to the COVID-19 pandemic. Furthermore, legal and consulting costs decreased by TEUR -3,254.

(35) Financial result

in kEUR	2020	2019
Interest income	354	744
Depreciation on loans	-1,617	-9,867
Other financial expenses	0	-4,538
Interest expense	-7,775	-4,451
Interest result	-9,038	-18,111

The depreciation on loans includes the value adjustment of a loan related to the sale of ESSERT GmbH.

Write-downs on loans include the valuation allowance of kEUR 4,999 for a loan to the equity investment MAX Automation (Asia Pacific) Co. Ltd. as well as the valuation allowance of kEUR 650 for a receivable from the sale of the former Group company Finnah Packtec GmbH (previously: NSM Packtec GmbH).

In the previous year, other financial expenses related to the utilization of a bank guarantee for MAX Automation (Shanghai) Co. Ltd. in the amount of TEUR 4,538.

Interest expense mainly comprises expenditures incurred for the syndicated loan. In addition, interest expense includes TEUR 425 (previous year: TEUR 382) for interest in connection with lease liabilities.

The financial result includes expenses from the compounding of non-current provisions in the amount of TEUR 32 (previous year: TEUR 30) and income from the discounting of non-current provisions in the amount of TEUR 3 (previous year: TEUR 2).

The financial result above results exclusively from financial assets and financial liabilities not measured at fair value through profit or loss.

The following table shows the net gains or net losses on financial instruments included in the Consolidated Statement of Comprehensive Income which are not reported under net interest:

in kEUR	2020	2019
Financial assets and liabilities measured at fair value through profit and loss	187	55
Loans, receivables and payables	-35	-939

The net gains or net losses on financial assets and liabilities measured at fair value through profit or loss include not only the results from the market shift but also the current expenses and income from these financial instruments.

Besides current income/expenses, the net gains or net losses on loans, receivables and liabilities include write-ups and impairment losses on trade receivables, write-ups and impairment losses on contractual assets and income from write-offs of trade payables.

(36) Income taxes

Earnings before income taxes amounted to TEUR -28,531 (previous year: kEUR -42,760).

in kEUR	2020	2019
Current income taxes	-3,194	-3,108
Taxes relating to other periods	-32	373
Deferred taxes	5,423	1,581
– thereof taxes from losses carried forward	2,129	-4,481
Total	2,197	-1,154

The actual and deferred taxes are calculated with reference to the income tax rates applicable in the respective country. The domestic income tax rates change primarily as a result of the allocation of the trade tax within the fiscal unity entities as well as adjustments to the assessment rates in the municipalities. The effects of changes in tax rates were recognized through profit or loss in tax expense unless they related to items previously recognized directly in equity.

The substantial recognition procedures for deferred taxes are explained in Note 8 “Deferred taxes.”

The expected income tax expense is calculated by multiplying the annual result before income taxes by the Group income tax rate. This is derived from the tax rates of the companies included. The effective tax rate for 2020 has been significantly reduced due to various special items. Besides write-downs on goodwill of kEUR 2,252 (previous year: kEUR 808), non-deductible business expenses include write-downs of kEUR 618 in connection with equity investments (previous year: kEUR 4,764) as well as an interest barrier of kEUR 2,033 (previous year: kEUR 0).

Further information on deferred taxes can be found in Note 8 “Deferred taxes.”

The reconciliation of the calculated income tax expense to the income taxes recognized in the Group is shown in the following table:

in kEUR	2020	2019
Earnings before taxes	-28,531	-34,323
Group income tax rate	31.17%	28.08%
Calculated income tax expense	-8,893	-10,361
Differences from tax rates	-181	-14
Divergent tax burdens (country-specific features)	19	123
Tax Credits	-254	-357
Deductable income taxes	424	-132
Impairment of goodwill	2,252	808
Deviations in tax base (tax balance sheets)	51	-311
Tax-free income	-405	-100
Non-deductable expenses	2,990	5,060
Impairment / Non-recognition of deferred tax assets for losses carried forward	1,290	6,641
Usage of losses carried forward	150	-204
Impairment / Non-recognition of deferred tax assets	25	74
Taxes relating to other periods / Adjustment of prior years' deferred taxes	118	-288
Non-recognition of deferred taxes related to IFRS 16	351	39
Taxes to be borne by third parties	-25	-2
Differences in current year's tax calculation	-53	76
Consolidation effects	0	115
Others	-57	-12
Income taxes	2,197	-1,154
Effective tax rate	-7.70 %	3.36 %

Income tax items are assessed regularly in particular against the backdrop of various changes in tax laws, tax regulations, case law and ongoing tax audits. The MAX Group counters this situation in particular by applying IFRIC 23 with a continuous identification and evaluation of the tax framework and the resulting effects. The latest findings are then incorporated into the estimation parameters required for evaluating tax liabilities. Any associated potential interest effects are also evaluated and assessed accordingly. They are shown in separate items.

overview back