PWO reports encouraging first quarter of 2021 and raises full-year guidance

Ad hoc announcement pursuant to Art. 17 MAR

PWO reports encouraging first quarter of 2021 and raises full-year guidance

- Continued positive development of our international locations

- Forecast raised for revenue and EBIT before currency effects

Oberkirch, April 23, 2021 - PWO's preliminary figures for the first quarter of 2021 have exceeded our expectations. The locations in Mexico and China, in particular, were able to achieve a significant increase in revenue and EBIT before currency effects.

The Czech location also contributed to the Group's positive development with higher revenue. Despite expenses for the location's expansion, EBIT before currency effects remained at a high level. At the German and Canadian locations, revenue and EBIT before currency effects were lower in the first quarter compared to the previous year. In Germany, we are vigorously continuing our measures for adjustments at this production location. In Canada, the planned series start-ups of some follow-on and new projects have been slightly postponed by customers. However, an improvement in the current situation is already foreseeable.

In total, the Group generated revenues of EUR 110.2 million (previous year: EUR 108.8 million) and EBIT including currency effects of EUR 5.9 million (previous year: EUR 6.1 million) in the first quarter of 2021. EBIT before currency effects amounted to EUR 5.7 million (previous year: EUR 6.8 million). The first quarter of the previous year was essentially unaffected by the corona pandemic. The quality of the balance sheet remains stable, with net debt of EUR 102.7 million at the same level as of the end of the 2020 financial year (EUR 102.5 million). The equity ratio improved from 28.7 percent to 29.1 percent.

We were also successful in generating new business in the first quarter, once again underscoring our outstanding expertise in sought-after solutions in the areas of electrification, safety & comfort for the mobility of the future. The lifetime volume of new business, including associated tool volumes, reached around EUR 135 million. Larger orders concerned air suspension components for premium vehicles as well as instrument panel carriers, including those for an all-electric touring sedan of a renowned manufacturer who has purchased instrument panel carriers from us for the first time.

The Executive Board has taken the encouraging figures for the first quarter and the updated outlook for further development this year as an opportunity to review the forecast for fiscal year 2021. We now expect revenue to grow to EUR 400 - 410 million (previous forecast: around EUR 380 million; p/y: EUR 371.2 million) and EBIT before currency effects of EUR 15 - 18 million (previous forecast: positive in the low double-digit million range; p/y: EUR -8.1 million). In terms of new business, the strong performance in the first quarter has provided us with a solid basis for achieving our forecast for an increase of the volume in the direction of EUR 500 million.

We cannot rule out, however, that the corona pandemic will have a negative impact on sales figures in our industry, particularly in Europe. In addition, our customers are still faced with supply risks for computer chips, and our industry as a whole is confronted with risks regarding steel supply. The new forecast is therefore subject to the condition that the pandemic will not lead to new lockdowns and supply problems will not result in further disruptions to the supply chains in our industry.

The quarterly statement for the first quarter of 2021, including the full quarterly financial statements, will be published on May 10, 2021. EBIT before currency effects is not a performance measure under IFRS. Information on the calculation of these figures can be found on page 44 of the Annual Report 2020, which is available on the Company's website at https://www.progress-werk.de/en/investors-press/news-publications/reports/annual-report-2020/.

Progress-Werk Oberkirch AG
The Executive Board

End of the ad hoc announcement