POLYTEC HOLDING AG: Results 1. Half-year 2022

Hörsching (pta012/10.08.2022/08:47 UTC+2)

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Production in the international automotive industry remains exposed to the adverse effects emanating from the interference to global supply chains and logistics capacities, regional and temporary Covid lockdowns and material supply shortages, etc. Moreover, to some extent these problems have worsened owing to both the war in Ukraine, which has been raging since the end of February 2022, and an enormous increase in energy prices.

Reduced volumes and repeated, extremely short-term cancellations with regard to call-offs, as well as excessively high price levels for materials and energy in particular, had a more significant impact upon the results of the POLYTEC GROUP from March 2022 onwards. For although the POLYTEC GROUP was still able to generate a positive result in the first quarter of the 2022 financial year, the earnings figures for the second quarter were negative. Overall, the first half of 2022 was closed with a marginally positive result.

Key figures H1 2022

* Group sales revenues amounted to EUR 285.0 million (H1 2021: EUR 291.7 million)

* EBITDA amounted to EUR 17.7 million (H1 2021: EUR 24.2 million)

* EBITDA margin 6.2% (H1 2021: 8.3%)

* EBIT totalled EUR 1.4 million (H1 2021: EUR 10.1 million)

* EBIT margin 0.5% (H1 2021: 3.5%)

* Earnings after tax reached EUR 0.1 million (H1 2021: EUR 6.8 million)

* Earnings per share EUR 0.00 (H1 2021: EUR 0.30)

* Equity ratio 44.0% (31.12.2021: 42.0%)

* Net debt amounted to EUR 114.4 million (31.12.2021: EUR 79.6 million)

* Employees (FTE incl. leasing personnel) as at 30.06.2022: 3,457 (30.06.2021: 3,708)

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In the first six months of 2022, consolidated POLYTEC GROUP sales revenues amounted to EUR 285.0 million and were therefore 2.3% below the level of the previous year (H1 2021: EUR 291.7 million). Sales revenues include the partial passing on of additional costs, whereby the production volume has decreased by around ten percent. Direct comparability is therefore only possible to a limited extent.

In the Passenger Cars & Light Commercial Vehicles market area, which with 74.0% (H1 2021: 73.7%) is the POLYTEC GROUP's strongest in terms of sales, revenues of EUR 210.8 million were generated in the first half of 2022 and at minus 2.0% were slightly below the comparable figure for the previous year (H1 2021: EUR 215.2 million).

As compared to the first half of 2021, sales revenues in the Commercial Vehicles market area (share 16.3%; H1 2021: 16.9%) were 5.3% down and thus fell from EUR 49.2 million to EUR 46.6 million.

At EUR 27.6 million, the sales revenues of the Smart Plastics & Industrial Applications market area in the first six months of 2022 remained at roughly the level of the previous year (H1 2021: EUR 27.3 million), while its share of POLYTEC GROUP's consolidated sales rose slightly to 9.7% (H1 2021: 9.4%). However, the second quarter of 2022 saw a marked reduction in sales to a major customer.

In the first half of 2022, POLYTEC GROUP EBITDA totalled EUR 17.7 million (H1 2021: EUR 24.1 million) and as compared to the same period of 2021, the EBITDA margin thus declined by 2.1 percentage points from 8.3% to 6.2%.

Group EBIT for the period from January to June 2022 totalled EUR 1.4 million (H1 2021: EUR 10.1 million). As compared to the first half of 2021, the EBIT margin fell by 3.0 percentage points from 3.5% to 0.5%.

The financial result for the first six months of 2022 amounted to minus EUR 1.2 million (H1 2021: minus EUR 1.4 million). The POLYTEC GROUP tax ratio in the period from January to June 2022 was 23.8% (H1 2021: 21.7%). The consolidated net profit for the first half of 2022 totalled EUR 0.1 million (H1 2021: EUR 6.8 million), which corresponded to earnings per share of EUR 0.00 (H1 2021: EUR 0.30).

In comparison to 31 December 2021, on 30 June 2022, the group's balance sheet total was EUR 27.4 million lower at EUR 541.1 million. This was due mainly to the repayment of promissory note loans of EUR 21.0 million at the end of the first quarter. As opposed to the annual reporting date, the equity ratio fell by 2.0 percentage points to stand at 44.0% and thus remained at a healthy level.

By comparison with the 31 December 2021 reporting date, net debt rose by 43.7%, or EUR 34.8 million, to EUR 114.4 million. This increase was caused mainly by the marked rise in net working capital.

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Outlook 2022 financial year

The POLYTEC GROUP management already suspended its forecast for the 2022 financial year in April. Moreover, as even at present the future development of the economic framework conditions with respect to the company cannot be assessed in a qualified manner, within the context of the publication of the 2022 half-year financial report, the management has decided not to issue a forecast for the entire 2022 financial year.

The major sources of uncertainty remain the persistent economic upheavals, the disruptions to the international supply chains, high raw material and material prices, and in particular the rising energy costs derived from the war in Ukraine. In addition, the possible negative economic impact of any reduced or rationed gas supplies cannot yet be estimated in detail.

All of these factors could influence the sales revenue and earnings development of the POLYTEC GROUP in the 2022 financial year. Therefore, in view of the considerable imponderables regarding the current and future course of business, from a current perspective a well-founded assessment of the expectations related to sales revenues and earnings in the second half of 2022 is out of the question.

As previously, the POLYTEC GROUP management continues to react flexibly and promptly to the ongoing changes in the economic environment and is liaising closely with the group's customers and suppliers in order to jointly overcome the current challenges.

The half-year interim report of POLYTEC Holding AG as at 30 June 2022 closing date is available for downloading on the 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:	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)