Progress-Werk Oberkirch AG expects positive development in fiscal year 2021

Ad hoc announcement pursuant to Article 17 MAR

PWO expects positive development in fiscal year 2021

- Rapid expansion of market position and further strengthening of locations to be focus

- Significant improvement in key financial ratios expected

Oberkirch, March 22, 2021 - The Executive Board of PWO AG today submitted its expectations for the development of the 2021 fiscal year. These expectations were formed against the backdrop of a continued worsening of the corona pandemic and are still subject to a high degree of uncertainty.

Despite the continuing major challenges, the Executive Board expects an improvement in the Group's earnings situation in 2021. Based on expected revenue of over EUR 380 million (2020 preliminary figure: EUR 371.2 million), EBIT before currency effects is expected to be clearly positive again, as the high charges and negative extraordinary items in connection with restructuring measures that occurred in the 2020 fiscal year are not expected to occur to this degree in 2021. EBIT of over EUR 10.0 million is expected (2020 preliminary figure: EUR -8.1 million). The prior-year figures stated also below relate to the preliminary figures for 2020 communicated on February 24, 2021.

The further rapid expansion of our market position will be at the center of our efforts in the new fiscal year. Based on the current tenders and the high number of new customer inquiries, we expect a significant increase in new business in the direction of a lifetime volume of EUR 500 million (2020 preliminary figure: around EUR 400 million). With planned investments of around EUR 20 million (2020 preliminary figure: EUR 13.8 million), we intend to further increase the efficiency of the production processes at all our locations and, at the same time, prepare for new series start-ups.

To secure the future viability of the Oberkirch location, we will implement the personnel adjustments already announced, for which corresponding provisions have been recognized in 2020. These however will lead to negative free cash flow in 2021. We expect the equity ratio to be flat year-on-year (2020 preliminary figure: 28.7 percent). The dynamic leverage ratio is expected to improve significantly to less than 4 years (2020 preliminary figure: 4.8 years).

In 2021, we will continue to be in a position to successfully counter possible negative developments in the market based on our close management of all operational processes.

The lifetime volume of new business, EBIT before currency effects, free cash flow and the dynamic leverage ratio are not performance measures under IFRS. Information on how these figures are derived can be found on pages 16, 19 and 24 of the 2019 Annual Report, which is available on the Company's website at https://www.progress-werk.de/en/investors-press/news-publications/reports/annual-report-2019/.

Progress-Werk Oberkirch AG
The Executive Board

End of ad hoc announcement