Bertrandt AG: Prel. figures Q3/9M 2023/2024 deviate from consensus, forecast for FY 2023/2024 changed; mid-term margin target 6-9%

Ehningen (pta021/26.07.2024/14:25 UTC+2)

The Management Board of Bertrandt AG today noted a deviation of the preliminary, unaudited figures for the third quarter and the nine-month period in fiscal 2023/2024 compared to market expectations.

• The Bertrandt Group's total revenues reached around EUR 294 million in the third quarter of 2023/2024 (consensus*: EUR 299 million, previous year Q3 EUR 285.1 million). In the first nine months of 2023/2024, total revenues amounted to around EUR 921 million (consensus*: EUR 926 million, previous year nine months EUR 858.2 million).
• EBIT amounted to around EUR -7 million in the third quarter of 2023/2024 (consensus*: EUR 5.0 million, previous year Q3: EUR 8.7 million). In the first nine months of 2023/2024, EBIT amounted to around EUR 15 million (consensus*: EUR 27 million, previous year nine months EUR 32.7 million).

Free cash flow amounted to around EUR 25 million after nine months in the 2023/2024 financial year (previous year: EUR -13.968 million).

The temporary reduction in capacity demand from some customers observed since the beginning of the second quarter of 2023/2024, which contrary to our previous assumption has recently gained further momentum, is leading to lower capacity utilization in the Group than expected. Against this backdrop, the Management Board of Bertrandt AG today reviewed and partially revised the forecast for fiscal 2023/2024 last published in the report on the first half of fiscal 2023/2024 (p. 16 in the Group management report) on May 15, 2024:

• After previously forecasting growth in total revenues of EUR 70 million to EUR 110 million, a specific range is no longer forecast for this financial year, but a moderate** increase in total revenues (previous year EUR 1,157 million) is now expected.
• After previously forecasting an EBIT margin (EBIT in relation to total operating performance) of between 5% and 7%, a specific margin range is no longer forecast for this financial year, but EBIT is now expected to be significantly** below the previous year's figure (EUR 50.1 million)
• The other elements of the previous forecast are confirmed.

The technical and strategic challenges faced by some customers are leading to short-term product and project postponements as well as reduced capacity call-offs. Nevertheless, Bertrandt expects capacity call-offs to normalize in the short to medium term based on a high offer volume and concrete project planning, although it is currently not possible to make an exact estimate of the timing. Against this backdrop, Bertrandt refrains from forecasting ranges for total revenues and EBIT margin until further notice and therefore changes its forecasting system.

Bertrandt is countering the current market trend with a cost optimization program that includes portfolio measures as well as structural and infrastructure adjustments. In this connection, extraordinary expenses in a cumulative low to mid double-digit million euro amount are expected in this and the coming fiscal years. The aim of the program is to save a double-digit million euro amount as early as the coming financial year 2024/2025 and to achieve an EBIT margin of 6-9% in the mid-term**.

The quarterly statement for the third quarter of 2023/2024 will be published on August 5, 2024.

*Consensus: Analyst consensus compiled by the company as of July 26, 2024, which is available at the following link: https://www.bertrandt.com/unternehmen/investor-relations/kennzahlen

**Definitions for the forecast:

Total output

- Moderate change 0% to 10%

- Significant change Above 10%

EBIT

- Moderate change 0% to 10%

- Significant change Above 10%

-"Medium-term": within the next three fiscal years

The terms "total revenues", "EBIT" and "free cash flow" are explained on page 221 of the Bertrandt Annual Report 2022/2023.

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Emitter:	Bertrandt AG Birkensee 1 71139 Ehningen Germany
Contact Person:	Björn Voss
Phone:	0703465613076
E-Mail:	bjoern.voss@bertrandt.com
Website:	www.bertrandt.com
ISIN(s):	DE0005232805 (Share)
Stock Exchange(s):	Regulated Market in Frankfurt; Free Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate