POLYTEC HOLDING AG: Results 1. Half-year 2023

Hörsching (pta014/10.08.2023/07:51 UTC+2)

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Key figures H1 2023

* Group sales revenues EUR 339.6 million (H1 2022: EUR 285.0 million)

* EBITDA EUR 17.0 million (H1 2022: EUR 17.7 million)

* EBITDA margin 5.0% (H1 2022: 6.2%)

* EBIT EUR 0.3 million (H1 2022: EUR 1.4 million)

* EBIT margin 0.1% (H1 2022: 0.5%)

* Earnings after tax minus EUR 3.7 million (H1 2022: EUR 0.1 million)

* Earnings per share minus EUR 0.18 (H1 2022: EUR 0.00)

* Equity ratio 42.0% (31.12.2022: 43.0%)

* Net debt EUR 72.0 million (H1 2022: EUR 114.4 million)

* Employees as at 30.06.2023 (incl. leasing personnel, FTE) 3,933 (30.06.2022: 3,457)

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The POLYTEC Group's consolidated sales revenues in the first half-year of 2023 totalled EUR 339.6 million and were therefore 19.2% higher than in the same period of the previous year (H1 2022: EUR 285.0 million). Over the course of 2023, customer call-offs have improved significantly. The market recovery and several new product launches led to considerably higher sales figures compared to the previous year.

In the Passenger Cars & Light Commercial Vehicles market area, which with 74.0% (H1 2022: 74.0%) is the POLYTEC GROUP's strongest in terms of sales, revenues of EUR 251.4 million were generated in the months January to June 2023. This figure was 19.3%, or EUR 40.6 million, higher than the comparable value for the preceding year (H1 2022: EUR 210.8 million).

On a year-on-year basis, sales revenues in the Commercial Vehicles market area (share of total sales: 17.6%; H1 2022: 16.3%) rose by 28.1% from EUR 46.6 million to EUR 59.7 million.

At EUR 28.5 million, sales revenues in the Smart Plastic & Industrial Applications market area remained at the low level of the first half of the previous year (H1 2022: EUR 27.6 million). Call-offs from a major customer had fallen short of expectations in both quarters of 2023. At 8.4%, the share of the Smart Plastic & Industrial Applications market area in the POLYTEC GROUP's consolidated sales was 1.3 percentage points below the previous year's figure (H1 2022: 9.7%).

The POLYTEC GROUP's EBITDA amounted to EUR 17.0 million in the first half of 2023 (H1 2022: EUR 17.7 million). The EBITDA margin decreased by 1.2 percentage points year-on-year, from 6.2% to 5.0%. Delivery delays for urgently needed new production facilities, which were either delayed or not yet delivered, affected internal production processes, and continued to have a significant impact on the Group's earnings situation in the second quarter of 2023. Selective plant bottlenecks and a high density of new project launches led to additional shifts and an increased number of employees.

Group EBIT in the months January to June 2023 totalled EUR 0.3 million (H1 2022: EUR 1.4 million). As opposed to the same period of 2022, the EBIT margin was 0.4 percentage points lower, coming from 0.5% to 0.1%.

The financial result for the first half of 2023 totalled minus EUR 3.6 million (H1 2022: minus EUR 1.2 million). The consolidated net profit for the first half-year of 2023 amounted to minus EUR 3.7 million (H1 2022: EUR 0.1 million), which corresponded to earnings per share of minus EUR 0.18 (H1 2022: EUR 0.00).

In comparison to 31 December 2022, on 30 June 2023, the group's balance sheet total was EUR 1.6 million lower at EUR 549.6 million. The equity ratio was 1.0 percentage point lower than on the annual reporting date at 42.0%. The distribution of the dividend and the net loss for the year were the reasons for the reduction. At over 40%, equity has been at a healthy level for years.

Net debt amounted to EUR 72.0 million as of 30 June 2023, an increase of EUR 12.2 million compared to the balance sheet date of 31 December 2022 (EUR 59.8 million). The gearing ratio increased from 0.25 as of the last balance sheet date to 0.31 as of 30 June 2023. On the 30 June 2023 reporting date, the POLYTEC GROUP disposed over cash and cash equivalents of EUR 38.0 million (H1 2022: EUR 20.8 million).

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Outlook 2023 financial year

From the current perspective, the management of the POLYTEC GROUP expects consolidated sales revenues of around EUR 650 million and positive EBIT (earnings before interest and taxes) for the 2023 financial year.

The sales figures reflect the slight recovery in customer call-offs. At the same time, the successful order acquisitions of previous years lead to selective aggregation of new product launches. These, together with delivery delays for urgently needed new production facilities, continue to burden the operational efficiency.

It is assumed that the additional costs due to extra shifts, increased workforce numbers and other special expenses will continue to affect the Group's earnings in the third quarter of the current fiscal year. An improvement in the previously described influences is expected from the fourth quarter of 2023.

However, the achievement of this outlook is subject to uncertainties. The high level of interest rates and the still high inflation are having an impact on numerous sectors of the economy, including the automotive industry.

In the medium and long term, the POLYTEC GROUP considers itself strategically very well positioned to be able to transform the change in the automotive sector into increasing economic success. The very good market position of the POLYTEC GROUP, especially in the area of growing e-mobility, is underlined by the high level of new orders received in the 2022 financial year and suggests a good future development.

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The half-year interim report of POLYTEC Holding AG as at 30 June 2023 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)