POLYTEC HOLDING AG: Marginal positive EBIT in 2022 financial year - High volume of new orders received in 2022

Hörsching (pta019/27.04.2023/08:58 UTC+2)

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The POLYTEC GROUP's consolidated sales revenues in the 2022 financial year amounted to EUR 601.4 million and were thus 8.2%, or EUR 45.5 million, higher than in the previous year (EUR 555.9 million). The sales revenues include the partial passing on of additional costs, whereby the production volume shrunk and therefore direct comparability is only possible to a limited extent.

The reductions in call-off numbers and repeated cancellations at short notice, as well as the very high price level of materials and energy in particular, have had a seriously detrimental impact upon the earnings situation of the POLYTEC GROUP since March 2022. For although it was still able to generate a positive result in the first quarter of the 2022 financial year, the earnings figures for the following quarters were negative. However, despite such numerous adverse circumstances, the 2022 financial year closed with a marginally positive operating result.

In the medium-term, the POLYTEC GROUP considers itself to be in an extremely solid strategic position with regard to its ability to transform the changes in the automotive sector into increasing economic success for itself. The high volume of new orders received in the 2022 financial year indicates that with its product portfolio, particularly in the area of e-mobility, the POLYTEC GROUP possesses an excellent market standing and can face the future with confidence.

Group business development in 2022

* Group sales revenues amounted to EUR 601.4 million (2021: EUR 555.9 million)

* EBITDA amounted to EUR 33.2 million (2021: EUR 44.8 million)

* EBITDA margin 5.5% (2021: 8.1%)

* EBIT totalled EUR 0.7 million (2021: EUR 12.3 million)

* EBIT margin 0.1% (2021: 2.2%)

* Earnings after tax minus EUR 2.2 million (2021: EUR 7.0 million)

* Earnings per share minus EUR 0.10, proposed dividend per share EUR 0.10 (2021: EUR 0.10)

* Equity ratio was up 1 percentage point at 43.0%

* Net debt amounted to EUR 59.8 million (2021: EUR 79.6 million)

* Employees (FTE incl. leasing personnel, as at 31 December 2022): 3,510

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In the Passenger Cars & Light Commercial Vehicles market area, sales revenues in the 2022 financial year increased significantly, rising by 13.7%, or EUR 53.6 million, to EUR 443.8 million (2021: EUR 390.2 million). As compared to the 2021 financial year the share of this market area, which generates the largest share of POLYTEC GROUP sales, thereby increased by 3.6 percentage points to 73.8% (2021: 70.2%).

On a year-on-year basis, sales revenues in the Commercial Vehicles market area rose by 7.8%, or EUR 7.2 million, to EUR 99.6 million (2001: EUR 92.4 million).

In the 2022 financial year, sales revenues in the Smart Plastic & Industrial Applications market area fell markedly, declining by 20.9%, or EUR 15.3 million, to EUR 58.0 million. From the second quarter of the year onwards, sales to a major customer saw a sizeable reduction.

POLYTEC GROUP EBITDA in the 2022 financial year amounted to EUR 33.2 million (2021: EUR 44.8 million) and as compared to the preceding year, the EBITDA margin was by 2.6 percentage points lower, falling from 8.1% to 5.5%. The reduced call-off volumes and repeated, short-term call-off cancellations, as well as the very high price level of materials and energy in particular, had a markedly negative impact upon the group's earnings situation. Furthermore, apart from these external effects, an internal project also influenced the result. EBITDA includes special one-off expenses of EUR 4.6 million, which are mainly attributable to the introduction of software systems at two major POLYTEC GROUP locations.

In 2022, POLYTEC GROUP EBIT amounted to EUR 0.7 million (2021: EUR 12.3 million) and in comparison to the previous year, the EBIT margin thus declined by 2.1 percentage points from 2.2% to 0.1%.

The POLYTEC GROUP's financial result totalled minus EUR 3.1 million (2021: minus EUR 2.7 million) and the result after taxes amounted to minus EUR 2.2 million (2021: EUR 7.0 million). Earnings per share amounted to EUR 0.10 (previous year: EUR 0.32). The Board of Directors of the POLYTEC Holding AG will propose to the Annual General Meeting that (to be held on 9 June 2023, in Hörsching) a dividend of EUR 0.10 per eligible share be distributed for the 2022 financial year.

As at 31 December 2022, balance sheet total amounted to EUR 551.2 million, a fall of EUR 17.3 million, or 3.0%, as compared to the 2021 balance sheet date. In comparison with the figure on the 31 December 2021 balance sheet date, the equity ratio improved by 1.0 percentage point to 43.0% and therefore remained at the consistently healthy level of past years.

As compared to the balance sheet date of 31 December 2021, net debt fell by 25.0%, or EUR 19.8 million, to EUR 59.8 million. As opposed compared to the figure at the end of 2021, the gearing ratio improved from 0.33 to 0.25.

On the 31 December 2022 balance sheet date, the POLYTEC GROUP employed a workforce of 3,510 (including leasing personnel). The number of employees was therefore 2.6%, or 90, higher than the total of the previous (3,420 employees).

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Outlook 2023 financial year

Subject to the assumption that a slight market recovery, a normalisation of call-off volatility, several new product launches and a stabilisation of the supply chains all occur, in the 2023 financial year the POLYTEC GROUP management anticipates consolidated sales revenues in the range of EUR 650 million to EUR 700 million.

However, the various production bottlenecks resulting from significant delays in the delivery of production equipment, which were already evident at the end of 2022, will continue to cause additional costs in 2023. Furthermore, ongoing cost increases represent a further challenge for the organisation. Nonetheless, the management expects that as compared to 2021, EBIT (earnings before interest and taxes) for the full year will improve significantly.

Even so, achieving this outlook is subject to unpredictability and from a current perspective, the risks associated with the war in Ukraine and high inflation coupled with the possibility of falling consumption constitute the greatest uncertainties for the current financial year.

In the medium-term, the POLYTEC GROUP considers itself to be in an extremely solid strategic position with regard to its ability to transform the changes in the automotive sector into increasing economic success for itself. The high volume of new orders received in the 2022 financial year indicates that with its product portfolio, particularly in the area of e-mobility, the POLYTEC GROUP possesses an excellent market standing and can face the future with confidence.

The annual financial report and annual report of POLYTEC Holding AG as at 31 December 2022 closing date are 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)