Progress-Werk Oberkirch AG: PWO reports figures for the first 9 months of 2022 and raises forecasts for the current fiscal year  

Oberkirch/Valašské Meziříčí/Kitchener/Puebla/Suzhou/ November 3, 2022 – The PWO Group is currently preparing its financial statements for the third quarter and the first 9 months of 2022 and is updating its planning for the current fiscal year. With business-development figures now firmed up to a sufficient extent, the Group now publishes figures for the first 9 months and raises forecasts for fiscal 2022, which have so far been characterized by a high degree of caution due to the difficult underlying conditions.

We successfully overcame the major challenges of the current macroeconomic situation once again in the third quarter.

New series productions as well as the current cost reduction program were key factors here. In addition, we reached mutually agreed-upon solutions with our customers on price adjustments due to rising material costs, which in part could only be booked retroactively in the 3rd quarter. The weakening of the euro also had a positive effect. By contrast, depreciation of non-current assets and allocations to contingency reserves had a negative impact.

Once again, new orders showed particularly pleasing progress due to compelling solutions that we were able to offer our customers. The lifetime volume of new business increased in 5 consecutive quarters, reaching its highest-ever level in a single quarter in the third quarter of 2022. This shows that we have established ourselves as a growth stock.

The PWO Group achieved the following KPIs in the first 9 months of 2022:

• Revenue: EUR 395.2 million (previous year: EUR 308.8 million)
• EBIT before currency effects*: EUR 23.0 million (previous year: EUR 17.3 million)
• Capital expenditure: EUR 13.9 million (previous year: EUR 10.8 million)
• Free cash flow: EUR -6.4 million (previous year: EUR 0.4 million)
• Equity ratio: 36.4% (December 31, 2021: 33.6%)
• Leverage ratio: 2.1 years (December 31, 2021: 2.2 years)
• Lifetime volume of new business: Around EUR 730 million (previous year: around EUR 405 million)

^* Conversion of the foreign-currency financial statements of our subsidiaries to the Group currency, the euro, results in translation effects. These are not included in adjusted EBIT.

Based on the successful performance in the first 9 months, we are raising our forecasts for fiscal 2022. As before, the forecasts are based on the firm assumption that the negative economic impacts of the war in Ukraine will not worsen, and the measures to curb the coronavirus pandemic in China will not cause any additional significant decrease in growth and/or major supply-chain interruptions. The dynamic interest rate development is expected to continue and may have a further impact on the operating result in the 4th quarter due to revaluations required as of the balance sheet date December 31, 2022, and also on the financial result.

In terms of revenue, we envisage growth from EUR 404.3 million in the previous year to around EUR 500 million in the reporting year (previous forecast: around EUR 480 million), mainly as a result of price adjustments to reflect the use of materials for our products and price increases applied by our suppliers.

EBIT before currency effects is expected to achieve the range of EUR 23 million to EUR 26 million (previous forecast: around EUR 19 million to EUR 22 million). We achieved EUR 22.1 million in the previous year. In line with a safety-oriented liquidity management of the PWO Group, we aim to limit capital expenditure to around EUR 22 million (previous forecast: around EUR 30 million; previous year: EUR 16.2 million). This approach is likely to result in an at least balanced free cash flow (previous forecast: balanced free cash flow; previous year: EUR 4.9 million), a leverage ratio of below 2.5 years (previous forecast: 2.5 to 3.0 years; previous year: 2.2 years), and an equity ratio of around 36% (previous forecast: sideways development; previous year: 33.6%).

In view of the high order intake in the 3rd quarter, which was not expected to be of this magnitude, we are increasing our forecast for the expected lifetime volume of new business in the reporting year for the second time this fiscal year and now aim to generate around EUR 800 million (previous forecast: nearly EUR 600 million; previous year: around EUR 570 million).

The 9-month report will be published on PWO's website at https://www.pwo-group.com/en/investors-press/news-publications/reports/ on November 9, 2022.

Progress-Werk Oberkirch AG

The Executive Board

End of ad hoc disclosure

Contact:
Charlotte Frenzel
Investor Relations & Corporate Communications
T. +49 179 / 6904 237
E. charlotte.frenzel.ext.ma@progress-werk.de