EQS-News: Semperit holds its ground in a difficult market environment and has completed its repositioning as an elastomers specialist

EQS-News: Semperit AG Holding / Key word(s): 9 Month figures/Quarterly /
   Interim Statement
   Semperit holds its ground in a difficult market environment and has
   completed its repositioning as an elastomers specialist

   08.11.2023 / 07:34 CET/CEST
   The issuer is solely responsible for the content of this announcement.

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   Semperit holds its ground in a difficult market environment and has
   completed its repositioning as an elastomers specialist

     • As expected, revenue in continued operations of EUR 547.6 million
       (–7.7%) and EBITDA of EUR 56.8 million (–28.8%) below the previous
       year’s level
     • Cost reductions with a run rate of more than EUR 10 million being
       implemented, of which EUR 2.7 million are already recognised in profit
       or loss in Q1-3/2023
     • EBITDA outlook for the full year confirmed at the lower end of the
       original range at around EUR 70 million
     • Earnings after tax still burdened by the now sold medical business

    

   Vienna, 8 November 2023 – In the first three quarters of 2023, the
   Semperit Group performed solidly in a challenging market environment
   characterised by high inflation and a weak economy. Revenue of EUR 547.6
   million was generated, which was 7.7% below the previous year’s figure.
   EBITDA from continued operations amounted to EUR 56.8 million (1-9 2022:
   EUR 79.8 million), which included one-time effects of around EUR 6.6
   million from the transaction costs for the acquisition of the Rico Group,
   from profits recognised in advance in the purchase price allocation and
   from one-time severance payments for changes to the Executive Board and
   for reductions in headcount. At EUR 15.7 million, earnings after tax from
   continued operations were positive, while earnings from the discontinued
   and now sold Sempermed segment developed negatively, as expected. Total
   earnings after tax thus amounted to EUR -26.8 million (1-9 2022: EUR -34.6
   million).

   “Our business in the first three quarters was characterised by
   increasingly strong economic headwinds, in which we held our ground
   solidly and countered with measures to reduce costs and increase
   efficiency. At the same time, we successfully realised our transformation
   into an industrial rubber and elastomers specialist with the disposal of
   the medical business and took an important step towards growth with the
   acquisition of the Rico Group. In addition, our new, streamlined
   organisation with two powerful divisions enables us to optimally scale our
   business for further profitable growth,” says Semperit CEO Karl Haider.

   Earnings development in detail:

   In the first nine months of 2023, continued operations of the Semperit
   Group recorded revenue of EUR 547.6 million (–7.7%). The two divisions, in
   which the former Industrial Sector has been reorganised, developed
   differently. While the economic market environment led to a decline in
   revenue of –24.2% to EUR 264.5 million in the Semperit Industrial
   Applications division (SIA, including Hoses and Profiles), the Semperit
   Engineered Applications division (SEA, including Form, Belting and Rico)
   benefited above all from the continued strong special economic situation
   for mining products and the related demand for conveyor belts as well as
   the demand for specialty products in the business unit Form. Revenue in
   the SEA division thus increased by 21.8% to EUR 254.9 million, of which
   EUR 16.0 million was attributable to Rico (for the months of August and
   September 2023). In the Surgical Operations business (production of
   surgical gloves in Wimpassing including packaging in Sopron), revenue
   decreased by 25,1% to EUR 31.0 million as expected.

   Cost reductions being implemented

   Total expenses fell by 8.8% to EUR 491.1 million. Savings in cost of
   materials (–20.4%), primarily as a result of lower production volumes,
   were partly offset by higher personnel expenses (+9.1%) and other
   operating expenses (+5.5%), which resulted from one-time effects (in
   particular the transaction costs of the Rico acquisition and one-time
   severance payments in connection with the changes to the Executive Board
   and the reduction in overheads in the personnel area), among other things.
   The cost-cutting programmes introduced have already cut down expenses by a
   total of EUR 2.7 million, of which around 85% was attributable to
   personnel expenses and the remainder to other operating expenses.

   EBITDA in continued operations amounted to EUR 56.8 million (–28.8%),
   while the EBITDA margin was 10.4% (1-9 2022: 13.5%). Rico’s operating
   contribution to EBITDA totalled around EUR 3.6 million. However, the
   recognition of anticipated profits of EUR 1.1 million in the first two
   months as part of the purchase price allocation and the transaction costs
   of EUR 3.0 million initially reduced this contribution to around EUR –0.5
   million.

   EBIT in continued operations totalled EUR 30.9 million (1-9 2022: EUR 48.5
   million), while earnings after tax from continued operations were EUR 15.7
   million (1-9 2022: EUR 30.7 million). Earnings after tax from discontinued
   operations were clearly negative at –42.4 million (1-9 2022: EUR –65.3
   million). However, they included a reclassification of historical currency
   translation differences of EUR –23.5 million due to deconsolidation. Total
   earnings after tax (from continued and discontinued operations) amounted
   to EUR –26.8 million (1-9 2022: EUR –34.6 million).

   Free cash flow before strategic growth investments is the net cash flow
   available for strategic growth investments and debt and equity servicing.
   It amounted to EUR 111.0 million for the first nine months of 2023, driven
   primarily by the proceeds from the sale of the medical business, and was
   used mainly for strategic growth investments in property, plant and
   equipment totalling EUR 17.5 million (expansion investments for the DH5
   plant in Odry and the Rico expansion in Thalheim), the acquisition of the
   Rico Group and the payment of dividends.

   Outlook

   After a solid performance in continued operations in the first three
   quarters of 2023, the Executive Board of the Semperit Group expects the
   market environment to remain challenging in the coming months. For SIA, no
   significant recovery in demand is expected in the short term, as the
   reduction of increased customer inventories will extend into the first
   half of 2024, and the leading indicators for the construction industry
   (e.g.building permits in Germany) continue to decline. For SEA, the good
   demand from the mining industry, healthcare and food sectors as well as
   the railway sector should continue, while demand for products linked to
   the construction industry and related sectors will be lower.

   In anticipation of this development, countermeasures have already been
   introduced. These include improvements to the product mix, cost reduction
   programmes and a streamlining of processes, accompanied by an increase in
   operating efficiency. Defined and already established measures for savings
   include a run-rate of more than EUR 10 million. Against this backdrop, the
   outlook for the 2023 financial year is confirmed, with EBITDA from
   continued operations expected at the lower end of the original guidance
   range at around EUR 70 million.

   Overview of the main financial figures of the first 9 months of 2023:

   Key performance figures of the Semperit Group,
   in EUR million                                 1-9 2023    Change 1-9 2022
   Revenue                                           547.6   – 7.7 %    593.4
   EBITDA                                             56.8   –28.8 %     79.8
   EBITDA margin                                    10.4 %  – 3.1 PP   13.5 %
   EBIT                                               30.9  – 36.3 %     48.5
   EBIT margin                                       5.6 %  – 2.5 PP    8.2 %
   Earnings after tax                               – 26.8  - 22.7 %   – 34.6
   Earnings per share, in EUR                       – 1.29    -23.5%   – 1.68
   Gross cash flow                                    14.8  – 66.2 %     43.8
   Free cash flow before strategic growth
   investments                                       111.0      n.a.    -19.6

    

   Balance sheet key figures, in EUR million
   (at balance sheet date)                     30.09.2023   Change 31.12.2022
   Balance sheet total                              986.2  +17.0 %      842.9
   Equity                                           414.5  –20.1 %      518.2
   Equity ratio                                    42.0 % –19.5 PP     61.5 %
   Net debt (+) / Net cash (-)                       98.5     n.a.     – 54.2

    

   ESG                               30.09.2023 Change 31.12.2022
   Employees (at balance sheet date)      4,594 +7.6%       4,269

    

   Segment key figures Industrial, in EUR
   million                                        1-9 2023    Change 1-9 2022
   Semperit Industrial Applications
   division                               Revenue    264.5  – 24.2 %    349.1
                                           EBITDA     42.7  – 43.4 %     75.4
                                             EBIT     29.5  – 50.6 %     59.8
   Semperit Engineered Applications
   division                               Revenue    254.9   +21.8 %    209.2
                                           EBITDA     36.4   +46.1 %     24.9
                                             EBIT     25.8   +40.9 %     18.3

    

   For further details please see the Semperit Group’s financial report on
   the first three quarters of 2023:
   [1]https://www.semperitgroup.com/en/investor-relations/

    

   Contact:

   Bettina Schragl                         Judit Helenyi
   Director Group Communications, IR       Director Investor Relations
   and                                      
   Brands / Spokeswoman                    +43 676 8715 8310
   +43 676 8715 8257                       [3]judit.helenyi@semperitgroup.com
   [2]bettina.schragl@semperitgroup.com

    

   [4]www.semperitgroup.com

   [5]www.linkedin.com/company/semperit-ag

    

   About Semperit
    

   The publicly listed Semperit AG Holding is an internationally oriented
   group of companies that develops and manufactures polymer products and
   sells them in over 100 countries worldwide with its two divisions,
   Semperit Industrial Applications and Semperit Engineered Applications. The
   Semperit Industrial Applications division focuses on industrial
   applications with highly efficient production and cost leadership; they
   include hydraulic and industrial hoses as well as profiles. The Semperit
   Engineered Applications division comprises the production of escalator
   handrails, conveyor belts, cable car rings, other engineered elastomer
   products, as well as the Rico Group, and focuses on customised technical
   solutions. The traditional Austrian company was founded in 1824 and is
   headquartered in Vienna. The Semperit Group employs around 4,600 people
   worldwide in its continued operations. The Semperit Group has 16
   production sites worldwide and numerous sales offices in Europe, Asia,
   Australia and America. In the 2022 financial year, the Group generated
   revenue of EUR 779.8 million and EBITDA of EUR 100.5 million with its
   continued operations.

    

    

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   08.11.2023 CET/CEST This Corporate News was distributed by EQS Group AG.
   www.eqs.com

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   Language:    English
   Company:     Semperit AG Holding
                Am Belvedere 10
                1100 Wien
                Austria
   Phone:       +43 1 79 777-310
   Fax:         +43 1 79 777-602
   E-mail:      judit.helenyi@semperitgroup.com
   Internet:    www.semperitgroup.com
   ISIN:        AT0000785555
   Listed:      Vienna Stock Exchange (Official Market)
   EQS News ID: 1767607


    
   End of News EQS News Service


   1767607  08.11.2023 CET/CEST

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