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, 2020. 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, 2019. 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 2020 were authorized for issue by the Board of Directors on July 27, 2020.

On March 11, 2020, the World Health Organization declared the coronavirus outbreak to be a pandemic in recognition of its rapid spread across the globe, with over 150 countries affected. Many governments are taking increasingly stringent steps to help contain or delay the spread of the virus. Currently, there is significant economic uncertainty which is evidenced, for example, by more volatile asset prices and currency exchange rates.

At present, it is not possible to quantify the potential financial impact of the coronavirus pandemic because it depends on a number of factors (such as the extent and duration of the pandemic, government measures to support the economy or customer behavior) and there is considerable uncertainty regarding these factors. There are several economic relief plans related to the coronavirus pandemic around the world. In the reporting period, Autoneum has benefited from a selection of programs like deferring tax payments and social security payments, income tax rebates, wage subsidies and short-time work programs. Our last updated going concern assessment has not cast any doubt on the Company’s ability to continue nor has the reevaluation of the performance triggered any major impairment charges.

Except as described below, 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, 2019.

In the reporting period, the Group has initially adopted the IFRS 16 amendment “Covid-19-Related Rent Concessions”, issued in May 2020. As a practical expedient, the Group accounts for any change in lease payments resulting from rent concessions the same way it would account for the change applying the standard if the change were not a lease modification. The practical expedient applies only to rent concessions occurring as a direct consequence of the coronavirus pandemic and only if all of the following criteria are met:

In the period under review, Autoneum has applied the practical expedient to all leases that meet the conditions and recognized CHF 0.3 million in profit or loss to reflect changes in lease payments that arise from rent concessions.

There was no change in scope of consolidation in the first half-year 2020.

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 intersegment eliminations. Transactions between the Business Groups are made on the same basis as with independent third parties.

On June 29, 2020, the existing long-term credit agreement with a bank syndicate in the amount of CHF 350 million was amended, among other things, with regards to the financial covenants. The final maturity date remained unchanged at December 31, 2022. The financial covenants were met at all times in the reporting period. At the same time, the two major shareholders have agreed to extend the term of the subordinated shareholder loans of CHF 20 million each, granted in December 2019, in alignment with the credit agreement with the bank syndicate.

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.

There were no events between June 30, 2020 and July 27, 2020 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.