PCC SE: PCC Group closes 2021 as one of the best fiscal years in the company’s history

PCC Group EBITDA rises 137 % in 2021 year on year to just short of € 200 million

Duisburg (pta029/17.03.2022/15:39 UTC+1)

The fourth quarter of 2021 saw Duisburg-based investment holding company PCC SE once again significantly surpass its already highly successful performance of previous periods in terms of PCC Group sales and earnings. "Taken as a whole, 2021 was one of the truly exceptional fiscal years in our 28-year company history," commented Ulrike Warnecke, member of the executive board of PCC SE.

Consolidated sales of the PCC Group rose by 54 % year on year to € 277.7 million for the fourth quarter and by 37 % to € 979.7 million for the year as a whole. Revenues for fiscal 2021 were thus well above our expectations. PCC likewise significantly exceeded both the previous year's pandemic-impacted earnings and the targets set for the past financial year. Earnings before interest/financial result, taxes, depreciation and amortization (EBITDA) increased to € 72.2 million in the fourth quarter, about two and a half times the figure from the prior-year period. And for the year as a whole, PCC generated EBITDA of € 198.8 million, an increase of 137 % year over year. Operating profit (EBIT) for the full fiscal year rose to € 127.0 million, far outstripping the € 11.3 million recorded in 2020. Earnings before taxes (EBT) amounted to € 44.8 million in the fourth quarter, accumulating to € 94.4 million for full fiscal 2021 versus the loss made in the previous year. Operating cash flow also improved significantly to € 147.3 million (2020: € 114.0 million).

As in previous quarters, this trend was supported by continued high commodity price levels and reduced import volumes from China, as in the case of caustic soda and silicon metal, for example.

Chemicals and Logistics divisions continue excellent performance

The Chemicals division achieved sales in the fourth quarter of € 215.3 million and of € 797.8 million as of year-end. PCC’s largest division by far, it thus surpassed both the previous year's revenue total of € 578.2 million and our expectations. The earnings figures followed a similar pattern. All segments in the division contributed to these developments with the exception of Consumer Products. The Polyols segment increased full-year sales to € 235.4 million, up 61 % on 2020. The Surfactants, Chlorine and Specialty Chemicals segments once again clearly outperformed their already excellent respective previous quarters. The Logistics division, meanwhile, generated sales of € 33.7 million in the fourth quarter, thus exceeding the record figure of € 30.1 million from the previous quarter.

Silicon metal plant in Iceland closes 2021 with positive EBITDA

Silicon metal production at PCC BakkiSilicon hf. in Iceland ran at a very stable high level in the fourth quarter. Prices were at times several times higher than in the previous year due to reduced imports from China; PCC BakkiSilicon hf. even sold some volumes to Asia. The affiliate generated a positive operating result in the fourth quarter and closed fiscal 2021 with a positive EBITDA.

Investment project in Malaysia proceeding to plan with commencement of construction

October 2021 saw the official start of construction of the production plant at the Kertih site for specialty non-ionic surfactants and polyether polyols planned together with our Malaysian joint venture partner, PETRONAS Chemicals Group Berhad (PCG). We also rebranded the joint project company to PCG PCC Oxyalkylates Sdn. Bhd. The construction of the plant with a total capacity of 70,000 metric tons is proceeding to plan, with completion scheduled for the third quarter of 2023.

Redemption of maturing bonds

On December 1, 2021, PCC SE repaid on maturity the 2.00 % bond carrying the code ISIN DE000A2YPFD5 issued in October 2019. The redemption amount was € 4.6 million. On February 1, 2022, PCC SE also redeemed the 3.00 % bullet bond carrying the code ISIN DE000A2G9HY2 issued in 2018, with a repayment amount of € 9.6 million.

The aforementioned Group financials are unaudited. The quarterly report is available online at https://www.pcc-financialdata.eu.

Profile of PCC SE

Headquartered in Duisburg, Germany, PCC SE is the parent and investment holding company of the globally active PCC Group with its more than 3,300 employees. The Group companies of PCC SE have core competencies in the production of chemical feedstocks and specialties, with container logistics forming a further strong pillar in the investment portfolio. An investor committed to the longer term, PCC SE concentrates on continuously increasing the enterprise value of its portfolio companies through sustainable investments and the ongoing creation of new value. The largest chemical producers of the PCC Group are PCC Rokita SA, a major chlorine manufacturer and Eastern Europe's leading producer of polyols, and PCC Exol SA, one of Europe's most advanced surfactant manufacturers. PCC was founded in 1993 by Waldemar Preussner, sole shareholder of PCC SE, who today holds the position of Chairman of the Supervisory Board. The PCC Group generated consolidated sales of around € 980 million in fiscal 2021, with its capital expenditures totaling some € 110 million. For further information, go to: https://www.pcc.eu

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Emitter:	PCC SE Moerser Straße 149 47198 Duisburg Germany
Contact Person:	Susanne Biskamp, PCC Head of Marketing & PR
Phone:	+49 2066 2019-35
E-Mail:	susanne.biskamp@pcc.eu
Website:	www.pcc.eu
ISIN(s):	DE000A3MQEM0 (Bond) DE000A3MQEN8 (Bond) DE000A3QMA80 (Bond)
Stock Exchange(s):	Free Market in Frankfurt