Progress-Werk Oberkirch AG: PWO reports on successful first quarter of 2022

- Revenue and EBIT before currency effects up significantly year-on-year
- Strong new business, including a first contract for fuel cell components

Oberkirch, May 13, 2022 – PWO AG has had a good start to the new fiscal year. Revenue and EBIT before currency effects increased positively as against the previous year in the first quarter of 2022. This is as a result of both cost reductions and amicable solutions with our customers on price adjustments due to increased costs of materials. With the exception of China, all locations contributed to the positive performance. On the other hand, the 2 locations in China were keenly affected by the measures taken by the Chinese government to curb the coronavirus pandemic and thus lost some earnings momentum in the first quarter. The German location in Oberkirch has taken a first visible step towards improving its competitive capability and is still working intensively to boost its earnings power. The Group’s key performance indicators are as follows:

- Revenue: EUR 130.8 million (PY: EUR 110.2 million)

- EBIT before currency effects: EUR 7.8 million (PY: EUR 5.7 million)

- EBIT including currency effects: EUR 7.8 million (PY: EUR 5.9 million)

- Profit for the period: EUR 5.2 million (PY: EUR 4.1 million)

- Capital expenditure: EUR 2.6 million (PY: EUR 2.1 million)

- Free cash flow: EUR -8.3 million (PY: EUR 0.7 million)

- Equity ratio: 35.1% (December 31, 2021: 33.6%)

We are particularly pleased once again by the high lifetime volume of new business in the first quarter of around EUR 210 million, around EUR 10 million of which for the associated tooling volumes. A significant amount of the current new business was accounted for by our German location in Oberkirch. Among other things, we have highlighted the application of our expertise in shaping the mobility of the future with a contract for state-of-the-art electrohydraulic system components for brake servos. Furthermore, moving forward we will be providing the housing for an on-board charger for one of our customers. This is a key part of the vehicle’s fast-charging system and thus its electrification.

After the end of the reporting period, we also secured a prototype contract for various fuel cell components. This is another key step in a new sales market. 2022 will be defined by the transformation of all our business processes towards sustainability, as illustrated by this contract.

Thanks to our performance in the first quarter of 2022, we are well on our way to achieving our forecast for fiscal 2022 as a whole. Having carefully analyzed the risks and rewards foreseeable at this time, we therefore confirmed this forecast at our Annual General Meeting on May 10, 2022. It is subject to the express proviso that, in particular, the negative economic repercussions stemming from the Ukraine conflict do not escalate any further and that the measures taken to curb the coronavirus pandemic in China do not cause any significant declines in growth or massive supply chain disruption.

The report on the first quarter of 2022 can be found on PWO’s website at https://www.progress-werk.de/en/investors-press/news-publications/reports/.

Progress-Werk Oberkirch AG
The Executive Board

PWO corporate profile
With our innovative, climate-friendly lightweight solutions, we are the preferred partner of the global mobility industry. As an engineering house, we are constantly driving forward the development and production of sophisticated metal components and complex subsystems.

In line with our slogan – “People, Planet, Progress” – we put our technology leadership on the frontiers of what is technologically possible in shaping and connecting metals at the service of our customers and business partners. Responsibility is at the heart of what we do. We see our business as a “force for good”, as our contribution to a positive development in the future for the benefit of our customers, employees and shareholders as well as for our environment. To this end, we are focusing on digitalizing all of our processes using the tools of the 4th industrial revolution.

We focus on the 3 future areas of mobility: electrification, safety and comfort. We are already independent of the combustion engine today. Around 3,000 employees at 8 locations on 3 continents ensure maximum delivery reliability and quality.