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Ladies and gentlemen, a warm welcome from my side. It's a pleasure to have with me today Jürgen Linhard, our group CFO, who will lead you through our presentation in a minute. The slide deck is also available under the Investor Relations section of our website, www.r-stahl.com. Before we begin, allow me to point you to our safe harbor statement, which you will find at the beginning of the slide deck. And with this, I hand the call right over to Mr. Linhard.
Thank you for the introduction. Ladies and gentlemen, good morning. I welcome you to today's conference call, where we talk about the Q2 2020 result of the STAHL Group. I want to start with the agenda at Slide #3. So first of all, I will give you a summary about the most important statements. Then we will dive a little deeper in the financials, Q2 2020. And last but not least, I will give you an outlook to the year-end and to our forecast 2020. And then I will be open to answer your questions. What we have prepared as well is an appendix, where you can see the half year results for those who are interested. And they can have a look on this. So coming to the most important facts at a glance. First of all, in general, we have to say the COVID-19 pandemic weighted significantly our sales, too. But what we can do is to compensate something with our cost control program, which limited the impact on the profitability. Let's have a look on the sales. Concerning the sales, we fell by EUR 5.8 million year-on-year, this is an 8.8% effect, to an absolute number of EUR 59.7 million. So the coronavirus pandemic even weights especially the day-to-day business. The cost control damped the impact on the profitability, so that the EBITDA pre is moderately down by EUR 1.5 million to an absolute number of EUR 3.9 million. The exceptionals dropped from EUR 1.2 million last year to a minus -- or to EUR 0.3 million. This was expected, that we could lower this. And the earnings per share stand at a minus of EUR 3.1 (sic) [ EUR 0.31 ].Order backlog is still on a reasonable level with EUR 79.7 million, relatively robust. What we see are some delayed shipments because of the missing demand of our customers. So -- and they led to a temporary increase in the working capital and in the net debt as well. And what we did, we pre-sized now the corridor of our sales for the year-end. So we narrowed the sales to EUR 260 million to EUR 265 million, and the EBITDA is still expected at a low double-digit million euro number. Coming to the financials at Page #6, starting with the sales. So in total, sales was EUR 59.7 million. As I already said, this is a drop of 8.8% in Q2 2020 compared with last year. So on the right-hand side, you see the share of the country, of the regions. What we can see is that in Germany, we are relatively flat, as you know, from the explanations in the past. So last year, we lost some sales in Germany in order to gain higher margins. So now situation seems to become more stable. In the central region, we lost 5% of sales. And then you see the biggest hit of roundly 1/3 of our sales, where we dropped in the Americas, and this is due to the high exposure to the oil and gas industry. And we see also a drop, a bigger drop in Asia Pacific of around about 16%. Having a look on our share in terms of sales. Then you can see on the left-hand side, so the German business is around about 25%. And the central region is another 48%. So that you can say, in total, the central region, which is Europe and Africa, excluding Germany and the German business, is round about 3/4 out of our total business. Compared to last year, it was 68%. So this business becomes more important. Having a look on the Asia Pacific. It's 18% right now. It was in the past last year, 19%, so the share is more flat. And then you see the drop in the Americas from 13% last year now to a 9% share. Having a look on the order intake, respectively, on the order backlog in the Q1 -- from Q1 2019 through Q2 2020. You see that the order intake was, in the second quarter 2020, very weak, mainly due to the day-to-day business, which is very much down. Same picture as we see it for the sales. The order backlog is still on a reasonable level with EUR 80 million, with also a good margin. And what you can see here, in comparison Q1 2020 to Q2 2020, that we are still at a level of EUR 80 million, and this shows the missing demand in the second quarter from our customers. So we are even here behind, we have here as well a backlog, and this is a slightly positive sign for the second half of the year. What we also see are first cautious signs of recovery since June. So that we see in May, our [ expectation ] is in May, we saw the bottom. Coming to Page #8 and the P&L statement. As already said, cost containment measures damped the impact of the softer demand on profitability. Sales stands at EUR 59.7 million. Then we see, if we have a look on the other operating income and the other operating expenses, here the balance of both are up to minus EUR 8 million, EUR 8 million cost in comparison to last year, EUR 8.8 million, driven by higher exceptionals as well as received insurance payments related to the recall of luminaires in June 29 (sic) [ June 2019 ].We see also a reduction in the cost of material, which declined in line with the lower sales. But what we can also see, that the material ratio is slightly better than in the last year. Personnel costs were successfully adjusted by EUR 2 million. Main driver is the adjusted bonus provision and which reduced also some claims of special tariff payments, the German so-called [indiscernible]. That means we change some payments into holidays, which we already have -- our people have already taken in May and June. And we have also some lower severance payments. This led us to an unfortunately negative EBIT of EUR 0.7 million. Then we have the financial result, which is supported by the contribution of Goreltex, which end stands at an EBT of EUR 1.1 million negative. And then we have some taxes. Roughly, you can say 50% of the taxes are deferred and another 50% are effective, EUR 0.9 million, and this comes to a net profit of minus EUR 2 million. And this means earnings per share is minus EUR 3.1 (sic) [ EUR 0.31 ] and the EBITDA stands at EUR 3.6 million; EBITDA pre, EUR 3.9 million. And the difference between both, you will find in the reconciliation on the next slide. So EBITDA, EUR 3.9 million. Exceptional, EUR 300,000. And EUR 200,000 of them are severance payments, much lower than in the last year. And especially the legal and consulting costs could be lowered by a reasonable amount of EUR 600,000. And here, you can see the majority of our efficiency program in both numbers. So having a look on the cash flow statement. As mentioned, the net profit was at minus EUR 2 million. Then the cash flow is supported by the depreciation and amortization and the changes in deferred taxes, which is in sum round about EUR 4.7 million. So this led us to a positive cash flow of EUR 2.6 million. This cash flow is burdened by the negative changes in working capital, and this is mainly due to the increase of finished goods and inventories as well or in some inventories. Cash flow from operating activities is EUR 1.5 million. Then cash flow from investing activities, minus EUR 2.3 million. This is mainly tools and also capitalization of R&D costs, which led us to a free cash flow of minus EUR 0.8 million. So cash and cash equivalents stand at EUR 18.7 million, which is an increase of EUR 0.1 million. Unfortunately, also the net debt increases by EUR 7 million. So this was my explanation for the second quarter. Now coming to our outlook. So the outlook we gave in April was, in terms of sales, EUR 260 million to EUR 275 million. Now we become more pre-sized. We see the sales more on the lower end. So we said now sales will be EUR 260 million to EUR 265 million, which also means that we see higher sales in the second half of the year. The reasons are that we see some slight increases in our day-to-day business. And what I also mentioned is that our finished goods and our WIP increased by EUR 5 million. And for that, we see the potential and we are convinced that we can now charge this to the customer in the second half of the year, which makes us confident to see higher sales in average month-by-month compared with the first half of the year. The EBITDA, we still stick to our statements from April that the EBITDA pre will be at a low double-digit million euro level. So thank you very much for listening. And now this was my explanation, and I will be pleased to answer your questions.
And the first question received is from Igor Kim of Bankhaus Lampe.
This is Igor Kim from Bankhaus Lampe. I've got a couple of questions. So the first one, you have confirmed your outlook. For the top line, I think it looks fairly justifiable. For the EBITDA, you said you still expect low double-digit figure for the full year. But in the first half of the year, you already have made EUR 8.6 million of EBITDA, which means that in the half -- in the second half of the year, you don't have to -- you just have to make half of it. But at the same time, you expect the top line to recover in the second half of the year. Does it mean that the margin should decline in the second half of the year deeper than we have seen in the second quarter? Or there are some costs that you expect that we should take into account? A little color would be helpful for that.
Yes. So what we don't see for the moment is the margin decline. So even if we perform better in terms of EBIT than we did in the first half of the year, the statement is still valid to say EBITDA pre at double-digit million euro. So we have our cost-saving program. We did the so-called [indiscernible], which we can't repeat once again. So times are very uncertain. And for that, we could not increase and be more precise. But definitely, what you ask me is that we do not see any lower margin.
Okay. Okay. And the second question is on your personnel costs. I think at EUR 29 million in the second quarter, is it something we should assume for the run rate in the second half of the year, for the third and the fourth quarter?
It really depends on the output and on the demand. So I guess if the sales will be higher than in the first half of the year and also in the second quarter, then also the personnel cost will become a little higher. So -- but we try to keep the level, and the personnel cost should only increase in line with the sales development.
[Operator Instructions] And we received a further question from Ulrich Sachse of UniCredit.
It's Ulrich Sachse from UniCredit. Just one short question regarding the late shipments in second quarter. Could you please outline the top line effect of those delayed shipments and which of the shipments are done in July?
So as I mentioned, we have round about EUR 5 million increase in finished goods and WIP. So depending on the margin, it's something between or close to -- from EUR 8 million to EUR 12 million in sales, I would even say, which we are missing right now. And in July, there was no big extent to catch this up.
[Operator Instructions]
Operator?
We received no further questions, so I hand back to Dr. Kornek.
Thank you. Ladies and gentlemen, thank you for joining our today's conference call. We look very much forward to staying in touch with you. And as a reminder, our next event will be the third quarter earnings release 2020 on November 12. Have a great day, and stay healthy. Goodbye.