PWO Group reports successful business performance in first half of 2023

PWO Group reports successful business performance in first half of 2023

 Carlo Lazzarini (CEO): “We are systematically continuing our profitable growth strategy and thereby separating ourselves from the current economic cycle. We are shaping the mobility of the future with our business model, which is entirely independent of internal combustion engines, and with our high innovative strength."

• Gratifying revenue growth
• Determined and ongoing expansion of market position
• Risk positions reduced
• Forecasts for EBIT before currency effects and life-time volume of new business in fiscal 2023 adjusted upwards as communicated on July 26, 2023
   

Oberkirch / Valašské Meziříčí / Kragujevac / Kitchener / Puebla / Suzhou /

August 8, 2023 – The business performance of the PWO Group has exceeded expectations in the first half of 2023. The high level of new business in recent years is now resulting in a stream of new series production start-ups and ramp-ups that visibly exceed phase-outs. Thus, the ongoing expansion of our market position for several years is now also being reflected in our revenue figures.

EBIT before currency effects was below the prior-year figure on account of several negotiations with customers regarding the massive cost increases across a broad front that have not yet been finalized. We feel that these talks are making good progress and we firmly believe that they can be concluded with a fair result for all parties.

The high level of new business again in the reporting period will mostly begin production in fiscals 2024 and 2025 and will safeguard the Group’s ongoing growth. Our innovative solutions for climate-friendly lightweight components at the very frontiers of what is technologically possible are sought after the world over. Customers put their faith in our high capacity for innovation and the reputation for delivery reliability and quality that we have built over decades.

The PWO Group’s key performance indicators in the first half of 2023 are as follows:

• Revenue: EUR 280.5 million (PY: EUR 258.1 million)
• EBIT before currency effects: EUR 14.9 million (PY: EUR 16.9 million)
• EBIT including currency effects: EUR 14.2 million (PY: EUR 17.0 million) 
• Profit for the period: EUR 8.5 million (PY: EUR 10.7 million)
• Capital expenditure: EUR 5.4 million (PY: EUR 10.4 million)
• Free cash flow: EUR 10.9 million (PY: EUR -8.1 million)
• Equity ratio: 37.6% (December 31, 2022: 37.8%)
• Lifetime volume of new business: around EUR 415 million (previous year: around EUR 465 million)
   

On the basis of the successful performance in the first half of 2023 in view of the current market situation, our positive assessment of ongoing business developments and reduced risk positions, we raised our forecast for EBIT before currency effects to between EUR 23 million and EUR 26 million in an ad hoc disclosure on July 26, 2023. After having already achieved the lower end of our previous forecast range for the lifetime volume in new business in fiscal 2023 in the first 6 months, we raised our new business forecast to between around EUR 700 million and EUR 800 million in the same disclosure.

We are confirming our other forecasts for our financial performance indicators. To ensure the start-ups and ramp-ups of new series production operations planned for the coming years and in anticipation of the ongoing expansion of our activities in Eastern Europe, we intend to invest around EUR 40 million in fiscal 2023. Much of this relates to land that will be purchased once the local authorities in Eastern Europe have issued the construction permits. This may take place after the end of the fiscal year in the first quarter of 2024, which would have a positive effect on free cash flow in the reporting year and the accounting ratios as of the end of fiscal 2023.

Our expectations for fiscal 2023 are still based on the assumptions that there will be no major disruptions to supply chains in 2023, for example due to pandemic-related restrictions or economic sanctions, that energy will be available in sufficient quantities and that there will be no significant deviations from the anticipated price developments.

The half-year report will be published on PWO’s website at https://www.pwo-group.com/en/investors-press/news-publications/reports/.

PWO AG
The Executive Board

Contact:
Charlotte Frenzel
Investor Relations & Corporate Communications
T. +49 179 6904 237
M. charlotte.frenzel.ext.ma@pwo-group.com