AUSTRIACARD HOLDINGS AG ANNOUNCES 2022 RESULTS AND THE COMMENCEMENT OF TRADING OF ITS SHARES ON THE VIENNA AND ATHENS STOCK EXCHANGES

EQS-Media / 23.03.2023 / 20:47 CET/CEST
   March 23, 2023: AUSTRIACARD HOLDINGS AG, an Austrian Group with an
   international presence and one of the leading providers of Secure Digital
   Technology Solutions in Europe and internationally, announced today its
   2022 results:

   • 2022 revenues reached €314.7m, increasing by 76.9% compared to 2021,
   with Payment Products and Services segment growth driven by strong demand
   in all markets, and especially, Challenger banks, USA, Türkiye, as well as
   the first-time consolidation of TAG Systems UK. The Information Technology
   segment grew by expanding its digital transformation business in SEE and
   implementing significant security printing projects in Africa.

   • Adjusted EBITDA reached €39.4m, growing by 80.5%, with input cost
   pressure mitigated by operating efficiency improvements and cost saving
   initiatives.

   • Cash Flow from operations increased by 211.5% reaching €40.9mm, while
   capital expenditure (ex-M&A) stood at €21.6m, double compared to 2021.

   • Cards sold reached 127.7mn compared to 88.8mn in 2021 increasing by
   43.8%, positioning the Group in the European top tier providers of
   EMV-based smart cards and personalization services

   • Effecting as of today AUSTRIACARD HOLDING AG shares are trading on the
   Vienna (VSE) and Athens stock exchanges (ATHEX) with the Symbol (ACAG)

   CEO COMMENTARY

   AUSTRIACARD HOLDINGS AG CEO, Panagiotis Spyropoulos noted:

   “During 2022 we delivered a strong set of results, nearly doubling our
   financial performance compared to 2021, surpassing our targets. I want to
   thank all our employees at our 7 production facilities in  Andorra,
   Austria, Romania, Greece, UK, at our 8 personalization centres in Austria,
   Greece, Poland, Romania Spain, Türkiye,  UK and the USA, and at our sales
   offices across the globe, for their hard work and dedication to the Group.
   At the same time, I want to thank our expanding international client base
   for their trust.

   We are progressing fast towards our target to build a world class company
   through organic growth and potentially selected acquisitions that can
   enrich our product offering and geographical footprint. We are growing
   further our market shares in payment and banking solutions in CEE, the
   Nordics and within Challenger Banks, while also expanding in new
   geographical areas such as the US, Middle East and Africa . We aim to be
   the secure data solutions provider of choice to our clients. At the same
   time, in the Information Technology segment we are enhancing our digital
   transformation portfolio.”

   SIGNIFICANT EVENTS DURING 2022

   Business developments

   During 2022 AUSTRIACARD HOLDINGS AG (the “Company”) had a strong
   performance, growing its business across the board in all geographic and
   products areas. Payment products and services offering benefited from
   increased customer demand in nearly all sectors and especially with
   customers in USA, Turkiye and Challenger Banks in Western Europe after the
   COVID-19 affected years of 2020 and 2021.

   Dealing with the global shortage of semiconductors and the global supply
   chain bottlenecks, our operations and sourcing teams have proven their
   resourcefulness and have managed to achieve a significant growth in
   production output of payment cards and thus a strong growth in revenues.
   Additionally we had a very successful implementation of a major security
   printing project related to the August 2022 Kenya elections. The Company
   continues on its path to become a partner of choice for digital
   transformation solutions in CEE increasing the contribution of these
   solutions in the total portfolio offered to its customers.

   As expected, we have been affected by price increases by suppliers and
   higher energy costs. To mitigate these costs pressure the Company has
   implemented measures to improve operating efficiency as well as new cost
   saving initiatives. In addition, the Company has proceeded to selective
   price increases for its products and services.

   Group reorganization and dual listing

   During 2022 the decision was taken to merge INFORM Lykos Holding SA with
   AUSTRIACARD Holding AG and to apply for listing of AUSTRIACARD Holding AG
   on the Vienna and Athens stock exchange. This process has been completed
   today with the commencement of trading of the Company’s shares on the
   Athens (ATHEX) and Vienna (VSE) Stock Exchanges.

   This consolidation will:

   •   Align the interests of all shareholders of the Company.

   •   Facilitate access to international financial markets and investors,
   resulting from the  

       increased transparency and visibility derived by trading in two
   European stock exchanges.

   •   Increase the liquidity of Company shares with a higher market
   capitalization

   •   Contribute to a more efficient operating structure with increased
   geographical and product

        reach, broader cross-selling opportunities and economies of scale.

    

   2022 BUSINESS PERFORMANCE

    

   Key performance indicators        2022        2021   D '22-'21 D '22-'21 %
   Revenue                    314,720,360 177,954,895 136,765,465       76.9%
   Gross profit I             140,147,283  80,737,674  59,409,609       73.6%
   Gross profit I margin            44.5%       45.4%       -0.8%         n/a
   OPEX excluding
   depreciation and           100,048,672  62,426,262  37,622,411       60.3%
   impairment
   OPEX excluding
   depreciation and                 31.8%       35.1%       -3.3%         n/a
   impairment as % on sales
   Gross profit II             74,013,851  40,900,230  33,113,621       81.0%
   Gross profit II margin           23.5%       23.0%        0.5%         n/a
                                                                             
   adjusted EBITDA             39,379,589  21,813,680  17,565,909       80.5%
   adjusted EBITDA margin           12.5%       12.3%        0.3%         n/a
   adjusted EBIT               24,971,333   9,845,893  15,125,440      153.6%
   adjusted EBIT margin              7.9%        5.5%        2.4%         n/a
   adjusted Profit before tax  20,668,525   7,133,715  13,534,810      189.7%
   adjusted Profit before tax        6.6%        4.0%        2.6%         n/a
   margin
   adjusted Profit after tax   17,105,331   4,887,315  12,218,017      250.0%
   adjusted Profit after tax         5.4%        2.7%        2.7%         n/a
   margin
   Profit after tax             5,534,793  10,040,519 (4,505,725)      -44.9%
   Net Equity / Total Assets        31.0%       30.2%        0.8%         n/a
   Operating Cash Flow         40,874,498  13,122,048  27,752,450      211.5%
   Operating Cash Flow as %         13.0%        7.4%        5.6%            
   on sales
   Net Working Capital         24,445,716  28,203,482 (3,757,767)      -13.3%
   Net Working Capital as %          7.8%       15.8%       -8.0%  
   on sales
   Net Debt / adjusted EBITDA         1.9         3.9       (2.0)  
   Total Liabilities / Net            2.2         2.3       (0.1)  
   Equity
   Net interest expenses        3,483,343   2,215,148   1,268,195       57.3%
   adjusted EBITDA / Net             11.3         9.8         1.5  
   interest expenses

    

   Business performance

   AUSTRIACARD HOLDINGS AG revenues reached € 314.7m increasing by € 136.8m
   or 76.9% compared to 2021. The main drivers of this revenue increase are
   attributed to the strong growth of payment products and solutions, the
   provision of security printing forms and ballots for the elections in
   Kenya and the first time consolidation of TAG Systems UK (formerly
   Nitecrest ltd. and Tag Nitecrest ltd.). From regional perspective, this
   increase is due to good business development in the core markets in Europe
   and Türkiye as well as to our expansion in the US market.

   Gross profit I increased by € 59.4m or 73.6% to € 140.1m in 2022 as a
   result of the strong increase in revenues while the Gross margin I
   decreased by 0.8 percentage points to 44.5% due mainly to a change in
   sales mix. Gross profit II increased by € 33.1m or 81.0% to € 74.0m in
   2022 and Gross margin II increased by 0.5 percentage points to 23.5% due
   to revenue growth and economies of scale.

   Operating expenses excluding depreciation, amortization and impairment
   (OPEX) were higher by € 37.6m or 60.3% from € 62.4m to € 100.0m in 2022 as
   the OPEX increased due to higher business activity as well as due to the
   investment related to the expansion in the US market. Additionally we have
   the first time consolidation effect of TAG Systems UK and the costs
   related to the group reorganization and stock exchange listing. More
   specifically this increase in OPEX is attributable mostly to higher
   personnel expenses related to a higher number of employees (first time
   consolidation effect of TAG Systems UK and expansion in the USA market),
   transportation costs mostly related to the election project in Kenya,
   third party services and a price-driven increase in energy costs. As
   percentage of revenues Operating expenses reduced from 35.1% to 31.8% in
   2022.

   Adjusted EBITDA increased by € 17.6m or 80.5% from € 21.8m to € 39.4m in
   2022 essentially as a result of the strong operating performance and the
   first time consolidation of TAG Systems UK (previously Nitecrest ltd. and
   TAG Nitecrest ltd, UK) with an effect of approx. € 4m.

   Adjusted EBIT surged by € 15.1m or 153.6% as the increase in adjusted
   EBITDA was partially compensated by higher depreciation & amortization
   mainly related to acquired customer contracts (€ +1.0m). Adjusted Profit
   before tax increased by € 13.5m or 189.7% as the surge in adjusted EBIT
   was partially offset by higher interest expenses related to the higher
   average balance of outstanding loans and borrowings. 

   As a result of the strong operating performance adjusted Profit after tax
   increased by € 12.2m or 250% from € 4.9m to € 17.1m.

   Profit after tax decreased by € 4.5m or 44.9% from € 10.0 million to €
   5.5m mainly due to a negative balance of Adjustments amounting to € -11.6m
   in 2022 compared to a positive balance of € 5.2m in 2021. In 2022 the
   balance of Adjustments essentially relates to non-cash expenses for
   management participation plan, expenses due to the revaluation of put
   options for shares in a subsidiary, negative effects of hyperinflation
   accounting for the subsidiary in Turkey and foreign exchange losses.

   Financial position

   Total assets increased by € 43.8m from € 226.4m to € 270.2m as of 31
   December 2022 which is mainly related to increases in current assets and
   liabilities, additions to property, plant and equipment as well as to the
   positive fair value of interest rate swaps for hedging purposes. The
   reduction in non-current liabilities relates mainly to the usual maturing
   of long-term loans and the derecognition of put option liabilities for
   shares in a subsidiary which was partially offset by the increase in
   long-term liabilities for management participation plan. As a result of
   the generated Profit and the increase in Total assets, the Group’s equity
   ratio increased from 30.2% to 31.0% as of 31 December 2022. 

   As of 31 December 2022, Net working capital decreased by € 3.8m or 13.3%
   to € 24.4 million due to the high level of Trade payables, Deferred income
   and Contract liabilities which more than compensated the increase in
   Inventory and Trade receivables. Net working capital requirements as a
   percentage of revenues decreased from 15.8% to 7.8% as of 31 December
   2022.

   The Group’s cash flow from operating activities increased by € 27.8m or
   211.5% from € 13.1m to € 40.9m in 2022. This increase is essentially
   linked to the improvement of the operating result as well as to the
   stabilization of Net working capital.

   Net Debt decreased by € 8.5 million from € 85.1 million as of 31 December
   2021 to € 76.6 million as of 31 December 2022 due to the positive
   cash-flow and the resulting increase in cash and cash equivalents. The
   increase in loans and borrowings is mostly due to the increase of lease
   liabilities in connection with right-of-use assets. The net debt /
   adjusted EBITDA ratio decreased from 3.9x in 2021 to 1.9x as of 31
   December 2022.

   The 2022 Annual Financial Report of AUSTRIACARD HOLDINGS GROUP is
   available at:
   https://www.austriacard.com/investor-relations-ac/financial-reporting-ac/

    

   ABOUT AUSTRIACARD HOLDINGS AG

   AUSTRIACARD HOLDINGS AG, headquartered in Vienna, with an international
   presence and one of the leading providers of Secure Digital Technology
   Solutions in Europe.

   AUSTRIACARD HOLDINGS AG is the one of the leading B2B providers of secure
   data, smart cards and payment solutions in Austria, Scandinavia, Central
   and Eastern Europe and South Eastern Europe, while also having significant
   market share in many other European countries and Türkiye. The Group is
   expanding fast in geographical areas outside Europe, such as the USA where
   it has established a new personalization center, and the Middle East &
   Africa where sales units have been developed that have already drawn
   significant new business. In addition, the Company has become a payment
   products and solutions partner of choice for Challenger Banks/Neo Banks, a
   growing market segment world-wide.

   The Company has a strong pan-European operational footprint, reaching from
   the United Kingdom to Greece and Türkiye, with seven production facilities
   and seven personalization centres in Europe, as well as an additional
   personalization centre in USA. It also has sales offices in Norway, Czech
   Republic, Germany, Croatia, Serbia, Jordan, the UAE and a network of
   partners and selling agencies around the world. This footprint enables the
   provision of a high service level to our customers, confirmed by the very
   long lasting relationships we have with our customers. The Group’s
   international customer base benefits from a complementary product and
   service offering ranging from bill printing, direct mailing and document
   processing to payment, transit and ID cards increasingly bundled with
   online, mobile and digitalization transformation solutions.

    

   Contact person: Mag. Markus Kirchmayr

   Tel.:                   +43 1 61065 - 384

   E-Mail:              markus.kirchmayr@austriacard.at

   Website:            www.austriacard.com

   Symbol:             ACAG

   ISIN:                  AT0000A325L0

   Stock Exchanges:  Vienna Prime Market, Athens Main Market

   End of Media Release

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   Issuer: AUSTRIACARD HOLDINGS AG
   Key word(s): Enterprise

   23.03.2023 CET/CEST This Press Release was distributed by EQS Group AG.
   www.eqs.com

   ══════════════════════════════════════════════════════════════════════════

   Language:    English
   Company:     AUSTRIACARD HOLDINGS AG
                Lamezanstraße 4-8
                1230 Vienna
                Austria
   E-mail:      ac.contact@austriacard.com
   Internet:    https://www.austriacard.com/
   ISIN:        AT0000A325L0
   WKN:         A3D5BK
   Listed:      Vienna Stock Exchange (Official Market)
   EQS News ID: 1591077

   Notierung vorgesehen, intended to be listed;

    
   End of News EQS Media


   1591077  23.03.2023 CET/CEST

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