POLYTEC HOLDING AG: Results 1. half-year 2021

Hörsching (pta011/12.08.2021/07:37 UTC+2) .
* Sales revenues EUR 291.7 million (H1 2020: EUR 242.3 million)
* EBITDA EUR 24.2 million (H1 2020: EUR 10.7 million)
* EBITDA margin 8.3% (H1 2020: 4.4%)
* EBIT EUR 10.1 million (H1 2020: EUR -7.0 million)
* EBIT margin 3.5% (H1 2020: -2.9%)
* Earnings after tax EUR 6.8 million (H1 2020: EUR -8.9 million)
* Earnings per share EUR 0.30 (H1 2020: EUR -0.42)
* Equity ratio 44.2% (H1 2020: 40.0%)
* Net debt EUR 121.2 million (H1 2020: EUR 153.4 million)
* Closing balance of cash as at 30.06.2021 EUR 72.1 million (30.06.2020: EUR 66.1 million)
* Employees (FTE incl. leasing personnel) as at 30.06.2021 3,708 (30.06.2020: 3,870)

In the first six months of 2021, consolidated POLYTEC GROUP sales revenues amounted to EUR 291.7 million and in spite of the lower comparative basis owing to COVID-19, were thus markedly higher than in the same period of the previous year (H1 2020: EUR 242.3 million). This increase in sales revenues is due primarily to the sharp rise in demand in the Passenger Cars & Light Commercial Vehicles market area. Sales revenues from the Commercial Vehicles market area were slightly below the level of the previous year, while the lower sales revenues in the Smart Plastics & Industrial Applications market area can be traced to the deconsolidation of the "Industrial" business area, which was completed in December 2020.

Owing to the disruptions in the international raw materials markets, the second quarter of 2021 witnessed a sudden, massive increase in purchasing prices. Whilst in the first three months of the year, as expected material costs demonstrated a pattern in line with previous periods, the raw material price rises in the second quarter resulted in material costs that were significantly over-budget. The material ratio in the first quarter of 2021 stood at 49.1%, but in the second quarter amounted to 52.5% and was thus 3.4 percentage points higher.

In the first six months of 2021, POLYTEC GROUP EBITDA totalled EUR 24.1 million (H1 2020: EUR 10.7 million) and in the same period the EBITDA margin amounted to 8.3%. In particular, the turbulent developments in the raw materials markets had a tangible negative impact upon results. In addition, during the first half of 2021, results continued to be burdened by the large number of production transfers to other POLYTEC plants, which emanated from the comprehensive restructuring measures and capacity adjustments of the preceding year (plant closures). Depreciation in the first half of 2021 fell by EUR 3.7 million to EUR 14.1 million as a result of both the capacity adjustments, the deconsolidation of the "Industrial" business area and the low investment ratio of the previous year.

Group EBIT in the months from January to June 2021 totalled EUR 10.1 million (H1 2020: minus EUR 7.0 million), which corresponded with an EBIT margin of 3.5% (H1 2020: minus 2.9%).

The financial result for the first six months of 2021 totalled minus EUR 1.4 million (H1 2020: minus EUR 1.7 million). The group net profit for the first half of 2021 amounted to EUR 6.8 million (H1 2020: minus EUR 8.9 million), which correlated with earnings per share of EUR 0.30 (H1 2020: minus EUR 0.42).

As compared to 31 December 2020, on 30 June 2021 the level of the group's balance sheet total was virtually unchanged at EUR 581.1 million. As opposed to the annual reporting date, the equity ratio improved by 1.6 percentage points to stand at 44.2% and thus remained at a healthy level.

By comparison with the 31 December 2020 reporting date, net debt increased by EUR 15.3 million to EUR 121.1 million. The key figure for the fictive debt repayment duration fell from 2.19 to 1.96 years. The gearing ratio was slightly higher at 0.47 and thus remained at the 2020 year-end level. On the 30 June 2021 reporting date, the POLYTEC GROUP disposed over cash and cash equivalents totalling EUR 72.1 million.

Outlook 2021 financial year
The POLYTEC GROUP management continues to anticipate consolidated sales revenues of about EUR 575 million for the 2021 financial year. On the basis of a reassessment of current risks, EBIT is likely to amount to around EUR 30 million.

Nonetheless, the realisation of this outlook is prone to a number of significant uncertainties. In particular, the drastic increases in raw material prices, which already had a considerable impact upon the result for the second quarter, will again constitute a considerable risk to profitability in the second half-year. In this connection, the current negotiations with customers regarding compensation for the price rises are of vital importance to the realisation of the outlook forecasts. A continuation of the short-term reductions in automotive call-offs beyond the summer months, shortages of raw materials - in particular electronic chips - as well as the repeated disruptions to production, would also have an additional impact upon results.

In addition, the possible negative effects of the corona epidemic on consolidated sales revenues and the operative result further complicate the outlook.

The interim half-year report of POLYTEC Holding AG as at the 30 June 2021 reporting date can be downloaded from Investor Relations, publications section of the Group's website.
https://www.polytec-group.com/en/investor-relations/publications

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Emitter:	POLYTEC HOLDING AG Polytec-Straße 1 4063 Hörsching Austria
Contact Person:	Mag. Paul Rettenbacher
Phone:	+43 7221 701 292
E-Mail:	paul.rettenbacher@polytec-group.com
Website:	www.polytec-group.com
ISIN(s):	AT0000A00XX9 (Share)
Stock Exchange(s):	Vienna Stock Exchange (Official Trade)