Tornos : Financial Report 2021

Financial Report 2021

Tornos Group

Non-GAAP Financial Measures	4
Tornos Group
Consolidated Financial Statements	7
Notes to the Consolidated	12
Financial Statements
Report of the Statutory Auditor	48
Tornos Holding Ltd.
Financial Statements	55
Notes to the Financial Statements	59
Proposed Appropriation of	64
Available Earnings
Report of the Statutory Auditor	66
Remuneration Report	71
Report of the Statutory Auditor	80
Corporate Governance	83

2 Tornos Key Figures_2021

Key Figures

Tornos Group

	2021	2020	Difference	Difference
In CHF 1 000 1)				in %
Order intake	204 612	97 984	106 628	108.8%
Net sales	171 488	103 388	68 099	65.9%
EBITDA 2)	24 625	-23 576	48 201	n/a
in % of net sales	14.4%	-22.8%
EBIT 2)	20 581	-27 685	48 267	n/a
in % of net sales	12.0%	-26.8%
Net result	20 329	-29 852	50 180	n/a
in % of net sales	11.9%	-28.9%
Cash flow from operating activities	30 285	-3 440	33 725	n/a
Cash flow from investing activities	474	304	170	55.9%
Free cash flow 2)	30 759	-3 136	33 895	n/a
	31.12.2021	31.12.2020
Net cash 2)	26 631	-4 992	31 623	n/a
Total equity	98 768	77 927	20 841	26.7%
in % of total balance sheet	68.2%	60.8%
Total balance sheet	144 914	128 176	16 738	13.1%
Employees (full-time equivalents) 3)	640	603	37	6.1%

1. Unless otherwise stated
2. Non-GAAPfinancial measure, refer to pages 4 and 5
3. Without apprentices

Tornos Financial Report_2021

3

Non-GAAP Financial Measures

Tornos supplements its Swiss GAAP FER results with non-GAAP financial measures. The main non-GAAP financial measures are EBIT, EBITDA, net cash, free cash flow and net working capital.

EBIT and EBITDA

Tornos defines EBITDA as operating result plus non-operating result excluding depreciation on tangible fixed assets and amortization on intangible assets and EBIT as operating result plus non-operating result. Tornos believes that EBITDA and EBIT are important performance indicators because they provide a measure of comparability to other companies with different capital or legal structures, which accordingly may be subject to disparate interest rates and effective tax rates, and to companies which may incur different depreciation and amortization expenses, or impairment charges related to fixed and intangible assets.

In CHF 1 000	2021	2020
Operating result	19 999	-31 063
Non-operating result	582	3 378
EBIT	20 581	-27 685
Depreciation and amortization	4 044	4 109
EBITDA	24 625	-23 576

Free cash flow

Tornos defines free cash flow as cash flow from operating activities plus cash flow from investing activities. Tornos believes that free cash flow is an important information because it represents the cash Tornos is generating after required investment in its asset base are done and therefore can be used to cover financing requirements or be distributed to shareholders.

Net working capital

Tornos defines net working capital as the total of current assets and liabilities without taking into consideration cash and cash equivalents, interest bearing borrowings and provisions. Tornos considers that net working capital is an important information since it shows whether Tornos has sufficient current assets to meet its current liabilities. Changes in net working capital shown in the Consolidated Statement of Cash Flows only include cash-effective changes.

4 Non-GAAP Financial Measures_2021

In CHF 1 000	31.12.2021	31.12.2020
Trade receivables	18 258	12 244
Inventories - net	74 295	69 375
Other short-term receivables	2 153	2 276
Prepayments and accrued income	1 706	1 572
Trade payables	-19 167	-8 722
Current tax liabilities	-347	-43
Other liabilities	-15 667	-9 463
Accrued liabilities and deferred income	-7 005	-5 673
Net working capital	54 226	61 566

Net cash

Tornos defines net cash as cash and cash equivalents less the interest bearing borrowing (current and non-current). Tornos believes that net cash is an important information because it presents the available cash and takes in consideration the shareholder loan.

In CHF 1 000	31.12.2021	31.12.2020
Cash and cash equivalents	26 778	17 329
Interest bearing borrowings (current)	-75	-2 195
Interest bearing borrowings (non-current)	-72	-20 126
Net cash	26 631	-4 992

Non-GAAP Financial Measures_2021 5