Notes to the condensed consolidated semi-annual financial statements
1 Basis of preparation
The unaudited condensed consolidated semi-annual financial statements have been prepared in accordance with IAS 34 “Interim Financial Reporting”. They are based on the financial statements of the individual Group companies drawn up according to uniform accounting policies as of June 30, 2022. The condensed consolidated semi-annual financial statements are not subject to the same requirements as the consolidated annual financial statements. It is recommended to read the condensed consolidated semi-annual financial statements in conjunction with the consolidated financial statements as of December 31, 2021. The condensed consolidated semi-annual financial statements are published exclusively in English. The financial information disclosed in this report may not add up precisely to the disclosed totals due to rounding. Ratios and variances are calculated using the exact underlying amount and not the disclosed rounded amount. Autoneum’s business activities are not subject to pronounced seasonal fluctuations. The condensed consolidated semi-annual financial statements 2022 were authorized for issue by the Board of Directors on July 26, 2022.
2 Changes in accounting policies
The accounting policies applied in these condensed consolidated semi-annual financial statements are the same as those applied in the consolidated financial statements as of December 31, 2021. In the reporting period, the Group implemented various minor amendments to existing standards and interpretations, which have no material impact on the Group’s overall results and financial position.
3 Accounting implications of the Russian invasion of Ukraine
Since the outbreak of war in Ukraine, new bottlenecks in global supply chains have impacted vehicle manufacturers’ production volumes and thus dampened earnings and revenue development for the automotive supply industry, especially in Europe. Current developments are accompanied by accelerated inflation and significant price increases in the commodities markets, which the war in Ukraine has further exacerbated. The Group has been impacted by rising material, energy and transport costs.
In the first half-year 2022, Russia, Ukraine and Belarus represented approximately 0.1% of the Group’s net revenue (first half-year 2021: 0.3%), while assets in Russia accounted for approximately 0.4% of total assets of the Group (December 31, 2021: 0.3%). Currently, the Group’s activities within Russia continue with the existing contracts. The current management assessment has not resulted in an impairment loss.
4 Hyperinflation accounting
The Turkish economy has been declared to be hyperinflationary after exceeding 100 inflation points in the last 36 months, based on the Türkiye consumer price index (CPI). Following IAS 29 “Financial Reporting in Hyperinflationary Economies”, the semi-annual financial statements 2022 of the Turkish subsidiary have been restated into the current purchasing power before being translated and included in the consolidated financial statements of the Group.
5 Change in scope of consolidation and significant transactions
There was neither a change in scope of consolidation nor significant transactions in the first half-year 2022.
6 Segment information
Segment information is based on Autoneum Group’s internal organization and management structure as well as on the internal financial reporting to the Group Executive Board and the Board of Directors. Chief operating decision maker is the CEO.
Autoneum is the globally leading automobile supplier in acoustic and thermal management for vehicles. Autoneum develops and produces multifunctional and lightweight components and systems for noise and heat protection and thereby enhances vehicle comfort.
The reporting is based on the following four reportable segments (Business Groups/BG): BG Europe, BG North America, BG Asia and BG SAMEA (South America, Middle East and Africa). “Corporate and elimination” includes Autoneum Holding Ltd and the corporate center with its respective legal entities, an operation that produces parts for Autoneum’s manufacturing lines, investments in associated companies and inter-segment eliminations. Transactions between the Business Groups are made on the same basis as with independent third parties.
- 1 Assets in “Corporate and elimination” include investments in associated companies in the amount of CHF 21.6 million. In the first half-year 2022, Autoneum did not increase its investments in associated companies.
- 2 Full-time equivalents including temporary employees.
- 1 Assets in “Corporate and elimination” include investments in associated companies in the amount of CHF 21.1 million. In the first half-year 2021, Autoneum did not increase its investments in associated companies.
- 2 Full-time equivalents including temporary employees.
- 1 Revenue is disclosed by location of customers.
- 2 Domicile of Autoneum Holding Ltd.
7 Financial instruments
Neither significant changes in the fair value hierarchy nor in the fair value measurement assumptions of financial instruments occurred in the period under review. The Group neither issued, repurchased nor repaid Autoneum bonds in the reporting period.
Autoneum maintains a long-term credit agreement with a bank syndicate in the amount of CHF 350.0 million, whereof CHF 151.6 million was drawn at June 30, 2022 (December 31, 2021: CHF 131.4 million). The long-term credit agreement has a final maturity date at December 31, 2022. The refinancing of this agreement is currently in progress and closing is expected in the third quarter 2022.
8 Exchange rates for currency translation
9 Events after the balance sheet date
There were no events between June 30, 2022 and July 26, 2022 which would necessitate adjustments to the book value of the Group’s assets or liabilities, or which require additional disclosure in the condensed consolidated semi-annual financial statements.