PCC SE: PCC maintains upward momentum in Q3/2022 with increased sales and earnings

PCC Group increases nine-month sales to € 994 million in 2022, already outstripping full-fiscal 2021

Duisburg (pta031/15.11.2022/14:32 UTC+1)

Despite the numerous crises currently prevailing, Duisburg-based investment holding company PCC SE again achieved significant sales and earnings growth in the third quarter of 2022. The PCC Group increased quarterly sales year on year by 28.7 % to € 326.3 million and nine-month sales by 41.7 % to € 994.4 million. As a result, the PCC Group has already generated higher 2022 consolidated sales in the year to September 30 than in fiscal 2021 as a whole (€ 979.6 million). "The main reason for this positive development is that average selling prices have continued to significantly exceed our expectations, particularly in the case of caustic soda and other chlorine derivatives, some of which reached historic highs," explained Ulrike Warnecke, Member of the Executive Board of PCC SE. "And although on the earnings side we did not quite match the record levels of the two previous quarters, we were still able to far exceed the excellent prior-year figures and our high expectations for fiscal 2022 as a whole in the third quarter," Ulrike Warnecke added.

The PCC Group increased earnings before interest/financial result, taxes, depreciation and amortization (EBITDA) to € 53.7 million in the third quarter and to € 196.7 million in the first nine months of 2022, corresponding to year-on-year increases of 33.0 % and 55.4 % respectively. At the operating level, EBIT for the first nine months came in at € 142.0 million, almost double the figure for the previous year. Earnings before taxes (EBT) for the first nine months rose to € 143.6 million, a 189.2 % increase compared to the same prior-year period. As a result, by the end of the third quarter of 2022, EBT within the PCC Group was already 56.5 % higher than the total of € 91.7 million achieved in record year 2021.

Group segment performance highlights

The Chlorine & Derivatives segment was again by far the main sales and earnings generator within the PCC Group in the third quarter of 2022. Selling prices for Chlorine products remained at an exceptionally high level. The Chlorine business unit of PCC Rokita SA, the largest company in the PCC Group, closed the third quarter with an exceptionally successful set of figures showing significant rises versus the previous year. The Surfactants & Derivatives segment also again delivered a very strong performance in the third quarter. This segment's largest affiliate, PCC Exol SA, benefited from significantly higher sales volumes than in the previous year, particularly with regard to its feed stocks for the cleaning and personal care industries. The sales and earnings performance of the Polyols & Derivatives segment exceeded our expectations but weakened compared to the previous two quarters. Shipment volumes and sales revenue in the Silicon & Derivatives segment declined, mainly due to lower demand for silicon from the highly energy-intensive aluminum industry. Due to price pressures on the sales side combined with the very high purchase prices for energy prevailing, some European silicon producers shut down their furnaces in the third quarter. By contrast, production at PCC BakkiSilicon hf. has remained stable at a high level. The site in Iceland offers competitive advantages, at least in terms of electricity purchasing. Despite this, however, this affiliate slipped into the red at the operating level in the third quarter.

Progress update on projects in Malaysia and the USA

The oxyalkylates project in Malaysia is progressing to schedule. It appears likely that the production plant with an annual capacity of 70,000 metric tons, with which PCC SE is aiming to expand its core business into the Asian market, will go on stream as planned in the third quarter of 2023. There are also plans to build a plant for these specialty non-ionic surfactants and polyether polyols in the USA. The project company there was provided with initial funding in the third quarter of 2022, with the final investment decision on this project still pending.

Redemption of maturing bond

On October 1, 2022, PCC SE repaid the 6.00% bullet bond carrying the code ISIN DE000A162AQ4 with a redemption volume of € 24.9 million.

The aforementioned Group financials are unaudited. Quarterly Report 3/2022 for the PCC Group 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. Its Group companies have core competencies in the production of chemical feed stocks and specialty chemicals, silicon and silicon derivatives, and in container logistics. 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 BakkiSilicon hf. operates in Iceland one of the world's most modern and climate-friendly silicon production facilities. 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 € 979.6 million and earnings before interest/financial result, taxes, depreciation and amortization (EBITDA) of € 197.5 million in fiscal 2021, with capital expenditures in the same year amounting to € 110.9 million. For further information on PCC, 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):	DE000A30V2U2 (Bond)
Stock Exchange(s):	Free Market in Frankfurt