Waberer's - Slow recovery continued in Q1/21

Waberer's posted a net income of EUR 2.7mn at Group level for Q1/21 (no one-offs
incurred). The recovery continued at a slow pace, in line with our expectation. EBIT grew by
EUR 1.0mn QoQ to EUR 4.5mn. It is disappointing that 40% of this gain derived from the
Insurance arm, and only 60% of that from the transportation segments (RCL deteriorated
QoQ, ITS improved QoQ).
 Key positives: (1) Financial results continued to improve in Q1/21 despite the challenging
macro environment at Group level. After 3 years of losses, Waberer’s reported a positive
net income. (2) Thanks to the better operating results and shrinking fleet size, net leverage
ratio decreased to 2.1x from 2.2x. (3) The Management is confident that the gradual
improvement is sustainable.
 Key negatives: (1) ITS EBITDA is far from the desired level. Gross margin grew +1.2%pt
QoQ or +3.3%pt YoY to 17.2%, but we don’t yet know how much of the gain comes from
Link, which was temporarily hit hard by Brexit in Q4/20. Before 2018, the measure was
above 20%. (2) Revenue growth stalled, while EBITDA dropped QoQ in the RCL segment
in Q1/21. This downturn, if persists, may make it difficult to achieve EBITDA covenants by
the year-end and then. However, we think that this was in part due to seasonality. (3) Cash
liquidity dropped by EUR 8.6mn due to the negative effect of the change in Working
Capital.