EQS-Media / 29.08.2024 / 19:15 CET/CEST AUSTRIACARD HOLDINGS AG ANNOUNCES H1 2024 RESULTS August 29^th, 2024: AUSTRIACARD HOLDINGS AG (ACAG) revenues and profitability growth accelerates in H1 2024 driven by technology segment expansion. • H1 2024 Group Revenues increase by 7.0% vs H1 2023 reaching € 192.0m, driven by a near quadrupling of Digital Transformation Technologies’ revenues and good growth in the Document Lifecycle Management segment. • From a geographic cluster point, Central Eastern Europe & DACH Revenues grow by 14.2% to € 121.6m and Türkiye, Middle East and Africa Revenues grow by 24.5% to € 37.5m, driving the Group’s revenues. • Improved sales mix leads to a 10.1% gross profit increase to € 48.8m and a gross profit margin of 25.4% vs 24.7% in same period LY • Sales mix composition with much higher technology component, together with contained OPEX, significantly enhance operating profitability, leading to a 11.2% Adj. EBITDA increase, to € 28.8m, and a margin of 15.0%. • Net Profit after Tax reached € 11.2m, and the margin stood at 5.9%. • On track to reach or exceed 2024 guidance CEO COMMENTARY AUSTRIACARD HOLDINGS AG Group Vice-Chairman and CEO, Manolis Kontos, noted: “Consistent with the potential we had highlighted in the first quarter of 2024, growth accelerated significantly in the second quarter driven by an approx. 13% increase in revenues, leading H1 2024 to 7% revenues increase and an even stronger EBITDA growth of 11.2%. Our strategy to transition the company into a technology solutions provider is already materializing, with the revenues of that segment increasing 4 times to € 16.3m compared to € 4.4m in H1 2023. Growth was also achieved in the Document Lifecycle Management segment, while Secure Chip & Payment Solutions recorded a slight decrease on a reported level due to the discontinuation of low margin wholesale chip module sales business, resulting from our decision to focus on selling complete smart card solutions. We continue expanding in Türkiye, Middle East and Africa, a geographical cluster from which we have high expectations for growth, while retaining our commanding presence in all markets that we operate, as well as the Challenger/Neo Banks, where more sophisticated products like metal cards prove to be a strong marketing tool for our B2B clients that are looking for innovation in their offering. We are on track to meet or exceeded our guidance of 10% revenue growth and a higher percentage EBITDA growth, resulting from enhanced operating synergies and an improved sales mix more skewed towards Digital Transformation Technologies.” GROUP BUSINESS PERFORMANCE Business performance of AUSTRIACARD HOLDINGS Group as monitored by Management The following analysis is based on the business performance as monitored by Group management excluding effects of IAS 29 Hyperinflation accounting and with a separate presentation of Special Items (e.g. Management participation programs etc.) below adjusted Profit (Loss) before tax. Business performance H1 2024 H1 2023 D '24-'23 D '24-'23 % Q2 2024 Q2 2023 D '24-'23 % in € million Revenues 192.0 179.5 12.5 7.0% 102.3 91.1 12.4% Costs of material & mailing (104.3) (101.5) (2.8) 2.8% (56.7) (50.8) 11.7% Gross profit I 87.7 78.1 9.7 12.4% 45.7 40.3 13.2% Gross margin I 45.7% 43.5% 2.2% 44.6% 44.3% Production costs (38.9) (33.7) (5.2) 15.4% (19.4) (17.9) 8.5% Gross profit II 48.8 44.3 4.5 10.1% 26.3 22.5 17.0% Gross margin II 25.4% 24.7% 0.7% 25.7% 24.7% Other income 2.0 2.0 0.0 0.7% 1.1 1.4 -20.0% Selling and distribution (11.8) (11.5) (0.4) 3.1% (6.2) (6.0) 3.0% expenses Administrative expenses (14.3) (12.5) (1.8) 14.1% (8.2) (6.9) 18.0% Research and development (3.5) (3.5) (0.1) 2.3% (1.8) (1.8) 1.7% expenses Other expenses (0.6) (0.6) (0.0) 5.1% (0.3) (0.5) -31.4% + Depreciation, amortization and 8.2 7.6 0.6 8.3% 4.2 3.9 9.7% impairment adjusted EBITDA 28.8 25.9 2.9 11.2% 15.1 12.5 20.8% adjusted EBITDA margin 15.0% 14.4% 0.6% 14.8% 13.7% - Depreciation, amortization and (8.2) (7.6) (0.6) 8.3% (4.2) (3.9) 9.7% impairment adjusted EBIT 20.5 18.3 2.3 12.4% 10.9 8.6 25.8% Financial income 0.2 0.1 0.1 116.5% 0.2 0.1 84.1% Financial expenses (3.9) (3.0) (1.0) 32.4% (1.9) (1.5) 25.6% Result from associated 0.1 0.0 0.1 n/a 0.1 0.0 n/a companies Net finance costs (3.6) (2.9) (0.7) 24.8% (1.7) (1.5) 13.4% adjusted Profit (Loss) 17.0 15.4 1.6 10.1% 9.2 7.2 28.3% before tax Special items (2.1) (0.7) (1.4) 191.1% (0.7) 1.2 -160.1% Profit (Loss) before tax 14.9 14.7 0.2 1.2% 8.5 8.4 0.9% Income tax expense (3.6) (2.7) (0.9) 34.5% (2.2) (1.2) 82.2% Profit (Loss) 11.2 12.0 (0.7) -6.2% 6.2 7.2 -13.0% In H1 2024 AUSTRIACARD HOLDINGS Group’s Revenues reached € 192.0m increasing by € 12.5m or 7.0% compared to the same period in 2023. The growth was mainly driven by Digital Transformation Technologies, which increased by € 11.9m and nearly quadrupled their revenues compared to last year. This is the result of the focus given by the Group in this solution category. The main contributors to this stage are public sector digitalization projects in Greece as well as continued growth of this solution category in the Romanian market. Document Lifecycle Management also contributed to the growth, increasing by € 2.8m or 5.1%, mainly driven from the Romanian market. Revenues by solution category H1 2024 H1 2023 D '24-'23 D '24-'23 % in € million Secure Chip & Payment Solutions 118.7 120.8 (2.2) -1.8% Document Lifecycle Management 57.0 54.3 2.8 5.1% Digital Transformation Technologies 16.3 4.4 11.9 271.7% Total 192.0 179.5 12.5 7.0% Secure Chip & Payment Solutions are slightly lower vs last year by € -2.2m or -1.8%. However, if we exclude from the comparative period the impact of our strategic decision to de-prioritize wholesale chip module sales and focus in selling complete smart card solutions (with total effect amounting to € 15.5m), the like-for-like organic growth of the Secure Chip & Payment category recorded is € 13.4m or 12.8%. The growth is coming from both regular banking cards sales as well as high end metal cards offered to our clients which have a significantly higher selling price per card and are accompanied by increased revenue from personalization and fulfilment services. Revenues by Segments H1 2024 H1 2023 D '24-'23 D '24-'23 % in € million Western Europe, Nordics, Americas 64.9 67.3 (2.4) -3.6% Central Eastern Europe & DACH 121.6 106.5 15.1 14.2% Türkiye / Middle East and Africa 37.5 30.1 7.4 24.5% Eliminations & Corporate (31.9) (24.3) (7.6) 31.1% Total 192.0 179.5 12.5 7.0% From a geographical segment perspective, revenue growth was driven by CEE and MEA with revenue increases of € 15.1m or 14.2% and € 7.4m or 24.5% respectively being mainly attributable to digitalization projects in the CEE segment and to Secure Chip & Payment solutions in the MEA segment. The WEST segment lagged compared to 2023 by € 2.4m or -3.6% mainly due to the above-described de-prioritization of wholesale chip module sales totalling € 13.9m in this segment. Excluding this impact, like-for-like revenues from WEST increased by € 11.5m or 21.7% with metal payment cards, personalization & fulfilment services being the main driver of this strong growth. The increase of Eliminations & Corporate mainly reflects the increase in intra-segment revenues between the CEE and the MEA segment related to payment card deliveries to the Turkish market. Gross profit I increased by € 9.7m or 12.4% reaching € 87.7m as a result of revenue and margin growth. Gross margin I improved from 43.5% to 45.7%, mainly due to a higher proportion of service revenues without associated material costs. Gross profit II grew by € 4.5m or 10.2%, reaching € 48.8m. Gross margin II improved by 0.7 percentage points and reached 25.4% mainly as a result of a different sales mix having higher contribution from Digital Services. Operating expenses (OPEX) H1 2024 H1 2023 D '24-'23 D '24-'23 % in € million Production Costs (38.9) (33.7) (5.2) 15.4% Selling and distribution expenses (11.8) (11.5) (0.4) 3.1% Administrative expenses (14.3) (12.5) (1.8) 14.1% Research and development expenses (3.5) (3.5) (0.1) 2.3% + Depreciation & amortization 8.2 7.6 0.6 8.3% Total (60.4) (53.6) (6.8) 12.6% Operating expenses as a percentage of Sales 31.4% 29.8% 1.5% Operating expenses (OPEX) excluding depreciation, amortization and impairment increased by € 6.8m, or 12.6% totalling to € 60.4m. A significant part of the Production costs increase (€ 3.0m) relates to the consolidation of Pink Post in Romania (company offering distribution & postal services enabling us to provide end to end services in that market), which was first consolidated in the Group post the majority stake acquisition in March 2023. Administrative expenses increased by € 1.8m as a result of the strengthening of the Group management team following the Group’s listing and reorganization in H1 2023. In addition, OPEX also increased due to adjustments on salaries and other costs due to inflation. As a proportion of revenues, OPEX increased by 1.5 percentage points to 31.4%, compared to 29.8% in the first six months of 2023. Adjusted EBITDA increased by € 2.9m, or 11.2%, from € 25.9m to € 28.8m, due to revenue and gross margin growth. The adjusted EBITDA margin increased by 0.6 percentage points from 14.4% to 15.0% in H1 2024. Adjusted EBIT improved by € 2.3m, or 12.4% and reached € 20.5m, fully offsetting the € 0.6m increase in depreciation & amortization, related to machinery and equipment added in the previous year to support business expansion. Adjusted profit before tax increased by € 1.6m or 10.1% reaching € 17.0m as the growth in EBIT was partially offset by the increase in net finance costs amounting to € 0.7m resulting from the hike in interest rates and the higher average outstanding financial debt. Special items included in H1 2024 H1 2023 D '24-'23 D '24-'23 % in € million Management participation programs EBITDA (2.1) (0.6) (1.4) 228.5% Expense from financial assets and liabilities at fair value through Profit before tax (0.0) (0.1) 0.1 -69.5% profit or loss Total (2.1) (0.7) (1.4) 191.1% Profit decreased by € 0.7m or 6.2% and reached € 11.2m which is mainly attributable to the normalization of the expenses for management participation programs (€ +1.4m) which in H1 2023 had been positively affected by a provision release and higher corporate income tax expenses (€ +0.9m), resulting from a change in tax rules in Romania and the United Kingdom. In more detail, expenses for management participation programs (SOP) amounted to € 2.1m in H1 2024 compared to only € 0.6m in H1 2023. Effect of IAS 29 Hyperinflation As presented in the table below, the application of IAS 29 Hyperinflation with respect to our Türkiye-based operations, hyperinflation accounting led to increased Revenues by € 3.3m reaching € 195.4m in 1-6 2024 compared to an increase of € 1.6m to € 181.2m in 1-6 2023. Hyperinflation accounting also increased Operating expenses (OPEX) and adjusted EBITDA in the IFRS Income statement compared to the Management Income statement by € 0.2m compared to € 0.1m in 1-6 2023. Also adjusted EBIT increased by € 0.2m (2023: € 0.0m) and adjusted Profit before tax by € 0.3m (2023: € 0.0m) due to Hyperinflation accounting. With respect to Profit before tax and Profit in 2024, Hyperinflation accounting led to only minor differences as both the IFRS Income statement and the Management Income Statement showed € 14.9m and € 11.2m respectively. 1-6 2024 1-6 2023 Impact of IAS 29 Hyperinflation IAS29 in € million IFRS IAS29 Effect MGMT IFRS Effect MGMT Revenues 195.4 3.3 192.0 181.2 1.6 179.5 Gross Profit I 88.2 0.5 87.7 78.3 0.3 78.1 Gross Profit II 49.1 0.3 48.8 44.3 0.1 44.3 OPEX (60.6) (0.2) (60.4) (53.7) (0.1) (53.6) adjusted EBITDA 29.0 0.2 28.8 26.0 0.1 25.9 adjusted EBIT 20.8 0.2 20.5 18.3 0.0 18.3 adjusted Profit before tax 17.2 0.3 17.0 15.4 0.0 15.4 Profit before tax 14.9 (0.0) 14.9 15.0 0.3 14.7 Profit 11.2 (0.1) 11.2 12.3 0.3 12.0 FINANCIAL POSITION Total assets increased by € 18.4m from € 321.7m on 31 December 2023, to € 340.1m on 30 June 2024 as a result of higher current assets (€ +10.3) and non-current assets (€ +8.1m). The increase in non-current assets relates to the acquisition of new subsidiaries resulting in additional goodwill amounting to € 3.8m as well as regular investing activities. The increase in non-current liabilities is related to the increase in financial liabilities (€ +5.4m) as well as to contingent purchase price liabilities in connection with M&A activity (€ +1.7m). As a result of the profits generated and share-option expense recognized in the relevant reserve in equity, Total Equity increased by € 13.7m to € 120.8m. The Equity ratio of the AUSTRIACARD Group improved from 33.3% on 31 December 2023 to 35.5% on 30 June 2024. Consolidated statement of financial position 30/06/2024 31/12/2023 D '24-'23 D '24-'23 % in € million Non-current assets 164.9 156.8 8.1 5.2% Current assets 175.2 164.9 10.3 6.3% Total assets 340.1 321.7 18.4 5.7% Equity 120.8 107.2 13.7 12.8% Non-current liabilities 122.7 115.2 7.5 6.5% Current Liabilities 96.6 99.3 (2.7) -2.8% Total Equity and Liabilities 340.1 321.7 18.4 5.7% Net Working Capital increased by € 15.9m or 27.3%, from € 58.2m as of 31 December 2023 to € 74.1m on 30 June 2024. This increase is due to higher inventory levels (€ +11.5m), especially of raw materials (chips), and higher trade receivables (€ +3.9m) related to increase in revenues. As percentage of revenues (12 months rolling), net working capital increased from 16.6% to 20.4% in line with Q1 2024 as well as close to the industry benchmarks but significantly above the comparative as of 30 June 2023 when stock levels were still significantly affected by Covid-19-related supply chain issues. Working Capital 30/06/2024 31/12/2023 D '24-'23 D '24-'23 % in € million Inventories 69.6 58.2 11.5 19.7% Contract assets 18.9 20.4 (1.5) -7.4% Current income tax assets 0.9 0.8 0.1 14.1% Trade receivables 48.6 44.7 3.9 8.8% Other receivables 16.3 17.1 (0.7) -4.3% 154.4 141.1 13.3 9.4% Current income tax liabilities (4.2) (3.0) (1.2) 40.7% Trade payables (45.8) (43.6) (2.2) 5.0% Other payables (18.0) (18.3) 0.3 -1.8% Contract liabilities (10.9) (17.4) 6.6 -37.8% Deferred income (1.4) (0.5) (0.9) 176.9% (80.2) (82.9) 2.7 -3.2% Net Working Capital 74.1 58.2 15.9 27.3% The Group’s Cash flow from operating activities increased by € 5.7m in the first half of 2024 from € 2.5m in 2023 to € 8.3m in 2024 as a result of the strong operating performance which was partially offset in cash-flow terms in the increase in the Net working capital. The Cash flow from investing activities came in at a net outflow of € 10.3m and related to M&A activity (€ 1.3m net of cash received), € 2.2m for upgrading our digital security printing capabilities in order to be able to implement new business opportunities for the African markets and regular investments in plant and equipment, inhouse development of software and similar operating investments. Cash from financing activities had a net outflow of € 0.9m compared to an inflow of € 0.3m in the same period in 2023. This outflow primarily relates to interest (€ 3.5m) and lease payments (€ 1.8m) as well as loan repayments (€ 6.5m) which were mostly offset by taking out new loans (€ 10.6m). Statement of cash flows H1 2024 H1 2023 D '24-'23 D '24-'23% in € million Cash flows from operating activities 8.3 2.5 5.7 226.6% Cash flows from investing activities (10.3) (7.7) (2.6) 33.8% Cash flows from financing activities (0.9) 0.3 (1.1) -436.7% Net decrease in cash and cash equivalents (2.9) (4.9) 2.0 -40.6% Capital expenditure incl. ROU, excl. M&A (CAPEX) (11.8) (9.9) (1.9) 19.5% Net Debt increased by € 8.3m from € 95.0m as of 31 December 2023 to € 103.3m as of 30 June 2024 due to the increase in Net working capital. Net Debt / Adjusted EBITDA (rolling 12 months) essentially remained stable near 2.0x (1.9x). Net Debt 30/06/2024 31/12/2023 D '24-'23 D '24-'23 % in € million Cash and cash equivalents (20.9) (23.8) 2.9 -12.3% Loans and borrowings 124.2 118.9 5.4 4.5% Net Debt 103.3 95.0 8.3 8.7% Financial performance indicators Key performance indicators H1 2024 H1 2023 D '24-'23 D '24-'23 % in € million Revenue 192.0 179.5 12.5 7.0% Gross profit I 87.7 78.1 9.7 12.4% Gross profit I margin 45.7% 43.5% 2.2% n/a Gross profit II 48.8 44.3 4.5 10.1% Gross profit II margin 25.4% 24.7% 0.7% n/a Total OPEX excluding depreciation (60.4) (53.6) (6.8) 12.6% Total OPEX excluding depreciation as % on sales -31.4% -29.8% -1.6% n/a adjusted EBITDA 28.8 25.9 2.9 11.2% adjusted EBITDA margin 14.97% 14.40% 0.57% n/a adjusted EBIT 20.5 18.3 2.3 12.4% adjusted EBIT margin 10.7% 10.2% 0.5% n/a adjusted Profit before tax 17.0 15.4 1.6 10.1% adjusted Profit before tax margin 8.8% 8.6% 0.3% n/a adjusted Profit after tax 13.3 12.7 0.6 4.9% adjusted Profit after tax margin 6.9% 7.1% -0.1% n/a Profit after Tax 11.2 12.0 (0.7) -6.2% Profit after Tax margin 5.9% 6.7% -0.8% n/a Operating Cash Flow 8.3 2.5 5.7 226.6% Operating Cash Flow as % on sales 4.3% 1.4% 2.9% n/a Net Equity / Total Assets (30 June vs. 31 December) 35.5% 33.3% 2.2% n/a Net Working Capital as of 30 June 74.1 43.9 30.2 68.9% Working Capital as % on sales (12 months) 20.4% 12.4% 7.9% n/a Net Debt as of 30 June 103.3 87.1 16.3 18.7% Net Debt / Adjusted EBITDA (12 months) 2.0 1.9 0,0 n/a REPORT ON SEGMENTS Western Europe, Nordics, Americas Business performance H1 2024 H1 2023 D '24-'23 D '24-'23 % in € million Revenues 64.9 67.3 (2.4) -3.6% Costs of material & mailing (35.9) (38.3) 2.3 -6.1% Gross profit I 28.9 29.0 (0.1) -0.2% Gross margin I 44.6% 43.1% 1.5% Production costs (11.3) (10.7) (0.6) 5.8% Gross profit II 17.6 18.3 (0.7) -3.7% Gross margin II 27.1% 27.2% -0.1% Other income 0.1 0.5 (0.4) -85.3% Selling and distribution expenses (4.4) (4.6) 0.2 -4.4% Administrative expenses (4.3) (4.4) 0.1 -2.6% Research and development expenses (0.5) (0.4) (0.1) 37.0% Other expenses (0.0) (0.1) 0.0 -38.1% + Depreciation, amortization & impairment 3.0 2.7 0.3 11.2% adjusted EBITDA 11.5 12.1 (0.6) -5.1% adjusted EBITDA margin 17.7% 18.0% -0.3% - Depreciation, amortization & impairment (3.0) (2.7) (0.3) 11.2% adjusted EBIT 8.5 9.4 (0.9) -9.8% The Western Europe, Nordics and Americas (WEST) segment reported Revenues of € 64.9m in the first half of 2024, down by € 2.4m or 3.6% compared to H1 2023. However, if we exclude from the comparative period the impact of the de-prioritization of chip module sales, resulting from our focus in selling complete smart card solutions, which amounted to € 13.9m in this segment, the organic like-for-like growth of this solution category amounts to € 11.5m or 21.7%. The growth is coming from both regular banking cards sales as well as high end metal cards offered to our clients which have a significantly higher selling price per card and are accompanied by increased revenue from personalization and fulfilment services. Gross profit I essentially stayed stable at € 28.9m despite lower revenues as gross margin I increased by 1.5 percentage points to 44.6%. This margin improvement is mainly due to the reduction of revenues from sale of chip wafers which was partially compensated by the increase in sales of metal payment cards. Gross profit II decreased by € 0.7m or 3.7% from € 18.3m to € 17.6m due to the inflation related increase in production costs, personnel costs and higher depreciation charges. Gross margin II essentially stayed stable at 27.1%. Operating expenses excl. D, A&I (OPEX) H1 2024 H1 2023 D '24-'23 D '24-'23 % in € million Production costs (11.3) (10.7) (0.6) 5.8% Selling and distribution expenses (4.4) (4.6) 0.2 -4.4% Administrative expenses (4.3) (4.4) 0.1 -2.6% Research and development expenses (0.5) (0.4) (0.1) 37.0% + Depreciation, amortization & impairment 3.0 2.7 0.3 11.2% Total (17.5) (17.3) (0.1) 0.7% Operating expenses as a percentage of revenues 26.9% 25.8% -5.3% OPEX came in at € 17.5m in the first six months of 2024 increasing slightly by € 0.1m or 0.7% as increased costs due to inflation related salary increases were mostly compensated by savings with other operating expenses and utility and maintenance expenses. As a percentage of revenues, OPEX increased from 25.8% to 26.9% in H1 2024 due to the decrease in revenues. Adjusted EBITDA reached € 11.5m decreasing by € 0.6m or 5.1% compared to H1 2023 while adjusted EBITDA margin came in at 17.7% decreasing by 0.3 percentage points. This decrease in adjusted EBITDA is mainly due to the reversal of an allowance for doubtful receivables in the US market which increased Other income by € 0.5m in 2023. Adjusted EBIT came in at € 8.5m decreasing by € 0.9m or 9.8% mainly as a result of lower Other income and higher depreciation & amortization. Central Eastern Europe & DACH Business performance H1 2024 H1 2023 D '24-'23 D '24-'23 % in € million Revenues 121.6 106.5 15.1 14.2% Costs of material & mailing (67.8) (62.4) (5.4) 8.6% Gross profit I 53.8 44.0 9.7 22.1% Gross margin I 44.2% 41.4% 2.9% Production costs (25.2) (20.9) (4.2) 20.3% Gross profit II 28.6 23.1 5.5 23.7% Gross margin II 23.5% 21.7% 1.8% Other income 1.9 1.5 0.4 28.7% Selling and distribution expenses (6.6) (6.3) (0.3) 4.8% Administrative expenses (9.2) (7.3) (1.9) 26.3% Research and development expenses (2.9) (2.9) (0.0) 1.1% Other expenses (0.5) (0.4) (0.1) 29.5% + Depreciation, amortization & impairment 5.0 4.7 0.3 6.0% adjusted EBITDA 16.2 12.4 3.8 31.0% adjusted EBITDA margin 13.3% 11.6% 1.7% - Depreciation, amortization & impairment (5.0) (4.7) (0.3) 6.0% adjusted EBIT 11.2 7.6 3.5 46.4% The Central Eastern Europe & DACH (CEE) segment reported Revenues of € 121.6m increasing by € 15.1m or 14.2% compared to the first half of 2023. This revenue increase was mainly driven by the start of the implementation of public digitalization projects in Greece and growth in the Digital Transformation Technologies business in general which contributed € 11.9m additional revenue. The Secure Chip & Payment Solutions business of the CEE segment grew by € 2.7m mainly as a result of higher payment card deliveries to the MEA segment. Gross profit I increased by € 9.7m, or 22.1%, as a result of revenue and gross margin growth. Gross margin I improved by 2.9 percentage points from 41.4% to 44.2%. This improvement was mainly due to a higher share of service-related revenues and lower third-party mailing costs. Gross profit II increased by € 5.5m or 23.7% from € 23.1m to € 28.6m mainly as a result of revenues growth and economies of scale as the increase of Production costs only partially compensated the growth in additional gross margin. The Gross Margin II thus improved by 1.8 percentage points to 23.5%. Operating expenses excl. D, A&I (OPEX) H1 2024 H1 2023 D '24-'23 D '24-'23 % in € million Production costs (25.2) (20.9) (4.2) 20.3% Selling and distribution expenses (6.6) (6.3) (0.3) 4.8% Administrative expenses (9.2) (7.3) (1.9) 26.3% Research and development expenses (2.9) (2.9) (0.0) 1.1% + Depreciation, amortization & impairment 5.0 4.7 0.3 6.0% Total (39.0) (32.8) (6.2) 18.9% Operating expenses as a percentage of revenues 32.1% 30.8% 41.2% OPEX increased by € 6.2m or 18.9% to € 39.0m mainly as a result of the addition of the Pink Post business in Romania which increased Production costs by € 3m and to higher central cost allocations included in Administrative expenses as well as due to inflation related salary increases. As percentage of revenues Operating expenses increased from 30.8% to 32.1% in H1 2024. Adjusted EBITDA increased by € 3.8m or 31.0% to € 16.2m as a result of revenue and gross margin growth being complimented by economies of scale. Adjusted EBITDA margin thus improved by 1.7 percentage points to 13.3%. Adjusted EBIT increased by € 3.5m or 46.4% from € 7.6m to € 11.2m essentially in parallel with EBITDA growth. Türkiye / Middle East and Africa Business performance H1 2024 H1 2023 D '24-'23 D '24-'23 % in € million Revenues 37.5 30.1 7.4 24.5% Costs of material & mailing (30.8) (24.4) (6.5) 26.5% Gross profit I 6.7 5.8 0.9 16.1% Gross margin I 17.8% 19.1% -1.3% Production costs (2.4) (2.1) (0.3) 13.9% Gross profit II 4.2 3.6 0.6 17.4% Gross margin II 11.3% 12.0% -0.7% Other income 0.0 0.0 0.0 n/a Selling and distribution expenses (0.8) (0.5) (0.2) 47.5% Administrative expenses (0.4) (0.3) (0.1) 38.0% Research and development expenses 0.0 0.0 0.0 n/a Other expenses (0.0) (0.1) 0.1 -78.2% + Depreciation, amortization & impairment 0.2 0.2 0.1 34.4% adjusted EBITDA 3.2 2.8 0.4 15.2% adjusted EBITDA margin 8.6% 9.3% -0.7% - Depreciation, amortization & impairment (0.2) (0.2) (0.1) 34.4% adjusted EBIT 3.0 2.7 0.4 14.1% The Türkiye, Middle East and Africa (MEA) segment reported Revenues of € 37.5m increasing by € 7.4m or 24.5% compared to H1 2023. This growth was driven by strong performance of payment card sales in the Turkish market. Gross profit I increased by € 0.9m due to higher revenues, but the Gross margin I decreased by 1.3 percentage points, from 19.1% to 17.8%, mainly due to a lower share of personalizing and fulfilment revenues with no associated material costs. Gross profit II increased by € 0.6m, or 17.4%, from € 3.6m to € 4.2m, as the Gross margin increase was partially offset by higher Production costs. Gross margin II decreased by 0.7 percentage points to 11.3%, largely due to a lower share of personalization and fulfilment revenues. Operating expenses excl. D, A&I (OPEX) H1 2024 H1 2023 D '24-'23 D '24-'23 % in € million Production costs (2.4) (2.1) (0.3) 13.9% Selling and distribution expenses (0.8) (0.5) (0.2) 47.5% Administrative expenses (0.4) (0.3) (0.1) 38.0% Research and development expenses 0.0 0.0 0.0 n/a + Depreciation, amortization & impairment 0.2 0.2 0.1 34.4% Total (3.4) (2.8) (0.6) 21.6% Operating expenses as a percentage of revenues 9.1% 9.4% 8.2% Operating expenses (OPEX) increased by € 0.6m or 21.6% reaching € 3.4m. This increase was mainly due to higher production costs and selling and distribution expenses to support further growth in the MEA region. As a percentage of revenues, OPEX decreased from 9.4% to 9.1% in H1 2024. Adjusted EBITDA grew by € 0.4m or 15.2% to € 3.2m while the adjusted EBITDA margin came in at 8.6% decreasing by 0.7 percentage points. Adjusted EBIT increased by € 0.4m or 14.1% to € 3.0m in parallel with adjusted EBITDA. The full INTERIM FINANCIAL REPORT of AUSTRIACARD HOLDINGS GROUP AG for the period from January 1 to June 30, 2024, excerpts of which were used in this H1 2024 Results Press Release, is available in the Company’s website: https://www.austriacard.com/investor-relations-ac/ ABOUT AUSTRIACARD HOLDINGS AG AUSTRIACARD HOLDINGS AG leverages over 130 years of experience in information management, printing, and communications to deliver secure and transparent experiences for its customers. They offer a comprehensive suite of products and services, including payment solutions, identification solutions, smart cards, card personalization, digitization solutions, and secure data management. ACAG employs a global workforce of 2,700 people and is publicly traded on both the Athens and Vienna Stock Exchanges under the symbol ACAG. Contact person: Mr. Dimitrios Tzelepis, Executive Director, Capital Markets, M&A and IR Tel.: +43 1 61065 - 357 E-Mail: d.tzelepis@austriacard.com Website: www.austriacard.com Symbol: ACAG ISIN: AT0000A325L0 Stock Exchanges: Vienna Prime Market, Athens Main Market APPENDIX A. PRIMARY FINANCIAL STATEMENTS Consolidated statement of financial position in € thousand 30 June 2024 31 December 2023 Assets Property, plant and equipment and right of use assets 99,815 96,275 Intangible assets and goodwill 59,784 55,526 Equity-accounted investees 453 324 Other receivables 2,391 2,386 Other long-term assets 45 136 Deferred tax assets 2,389 2,116 Non-current assets 164,877 156,764 Inventories 69,621 58,164 Contract assets 18,879 20,386 Current income tax assets 902 791 Trade receivables 48,611 44,677 Other receivables 16,347 17,082 Cash and cash equivalents 20,886 23,825 Current assets 175,247 164,924 Total assets 340,124 321,688 Equity Share capital 36,354 36,354 Share premium 32,749 32,749 Own shares (498) 0 Other reserves 18,791 17,303 Retained earnings 32,177 19,995 Equity attributable to owners of the Company 119,573 106,401 Non-controlling interests 1,276 753 Total Equity 120,849 107,154 Liabilities Loans and borrowings 107,874 102,432 Employee benefits 4,022 4,207 Other payables 1,669 81 Deferred tax liabilities 9,139 8,497 Non-current liabilities 122,703 115,217 Current tax liabilities 4,177 2,968 Loans and borrowings 16,354 16,440 Trade payables 45,817 43,649 Other payables 17,985 18,317 Contract liabilities 10,851 17,442 Deferred income 1,388 501 Current Liabilities 93,571 99,317 Total Liabilities 219,275 214,534 Total Equity and Liabilities 340,124 321,688 Consolidated income statement in € thousand H1 2024 H1 2023 Q2 2024 Q2 2023 Revenues 195,374 181,166 103,609 91,358 Cost of sales (146,278) (136,780) (77,238) (69,064) Gross profit 49,096 44,386 26,371 22,294 Other income 1,985 1,973 1,093 1,439 Selling and distribution expenses (11,851) (11,490) (6,164) (5,991) Administrative expenses (16,372) (13,150) (9,049) (5,718) Research and development expenses (3,539) (3,460) (1,846) (1,815) Other expenses (620) (594) (321) (469) + Depreciation, amortization and impairment 8,228 7,706 4,233 3,967 EBITDA 26,928 25,370 14,317 13,708 - Depreciation, amortization and impairment (8,228) (7,706) (4,233) (3,967) EBIT 18,700 17,665 10,084 9,741 Financial income 248 365 74 338 Financial expenses (4,224) (3,041) (2,038) (1,374) Result from associated companies 129 0 129 0 Net finance costs (3,846) (2,675) (1,835) (1,036) Profit (Loss) before tax 14,854 14,990 8,248 8,705 Income tax expense (3,674) (2,731) (2,244) (1,247) Profit (Loss) 11,180 12,259 6,005 7,458 Profit (Loss) attributable to: Owners of the Company 10,633 11,790 5,555 7,424 Non-controlling interests 546 469 450 34 Profit (Loss) 11,180 12,259 6,005 7,458 Earnings (loss) per share[1][1] basic 0.29 0.33 0.15 0.20 diluted 0.27 0.33 0.14 0.20 Consolidated statement of cash flows in € thousand H1 2024 H1 2023 Cash flows from operating activities Profit (Loss) before tax 14,854 14,990 Adjustments for: -Depreciation, amortization and impairment 8,228 7,706 -Net finance costs 3,846 2,675 -Other non-cash transactions 1,110 (327) 28,039 25,043 Changes in: -Inventories (11,457) (10,108) -Contract assets 1,507 (3,831) -Trade receivables and other receivables (3,200) (3,006) -Contract liabilities (6,591) (2,513) -Trade payables and other payables 2,218 (541) -Taxes paid (2,262) (2,517) Net cash from (used in) operating activities 8,255 2,527 Cash flows from investment activities Interest received 248 110 Acquisition of subsidiary, net of cash acquired (1,297) 0 Payments for acquisition of property, plant and equipment & intangible assets (9,242) (7,801) Net cash from (used in) investing activities (10,291) (7,691) Cash flows from financing activities Interest paid (3,511) (2,576) Proceeds from loans and borrowings 10,561 15,250 Repayment of borrowings (6,103) (10,679) Payment of lease liabilities (1,824) (1,734) Net cash from (used in) financing activities (877) 260 Net increase (decrease) in cash and cash equivalents (2,913) (4,904) Cash and cash equivalents at 1 January 23,825 21,628 Effect of movements in exchange rates on cash held (26) (414) Cash and cash equivalents at 30 June 20,886 16,311 B. SEGMENT REPORTING Reportable Segments MEA Total H1 2024 excl. excl. in € thousand WEST CEE IAS 29 Corporate Elimi-nations IAS 29 IAS 29 Total Revenues 61,431 93,147 37,470 0 0 192,049 3,325 195,374 Intersegment 3,448 28,433 33 1,477 (33,389) 0 0 0 revenues Segment 64,879 121,580 37,503 1,477 (33,389) 192,049 3,325 195,374 revenues Costs of material & (35,950) (67,808) (30,818) 0 30,272 (104,303) (2,843) (107,146) mailing Gross profit I 28,929 53,772 6,685 1,477 (3,118) 87,745 483 88,228 Production (11,325) (25,183) (2,441) 0 4 (38,944) (188) (39,132) costs Gross profit 17,605 28,590 4,244 1,477 (3,114) 48,801 295 49,096 II Other income 77 1,922 3 (17) 0 1,985 0 1,985 Selling and distribution (4,416) (6,647) (768) 0 0 (11,831) (20) (11,851) expenses Administrative (4,265) (9,222) (423) (3,477) 3,114 (14,274) (29) (14,303) expenses Research and development (495) (2,942) 0 (101) 0 (3,539) 0 (3,539) expenses Other expenses (35) (514) (29) (38) 0 (617) (3) (619) + Depreciation, 3,025 4,996 206 2 0 8,228 0 8,228 amortization and impairment adjusted 11,494 16,182 3,234 (2,156) 0 28,754 244 28,998 EBITDA - Depreciation, (3,025) (4,996) (206) (2) 0 (8,228) 0 (8,228) amortization and impairment adjusted EBIT 8,470 11,186 3,027 (2,157) 0 20,526 244 20,770 Financial 226 22 248 income Financial (3,919) (7) (3,927) expenses Result from associated 129 0 129 companies Net finance (3,564) 15 (3,549) costs adjusted Profit (Loss) 16,962 259 17,221 before tax Special items (2,094) (273) (2,367) Profit (Loss) 14,868 (14) 14,854 before tax Income tax (3,622) (52) (3,674) expense Profit (Loss) 11,246 (66) 11,180 Reportable Segments MEA Total H1 2023 * excl. excl. in € thousand WEST CEE IAS 29 Corporate Elimi-nations IAS 29 IAS 29 Total Revenues 65,465 83,984 30,097 0 0 179,546 1,619 181,166 Intersegment 1,811 22,504 21 254 (24,591) 0 0 0 revenues Segment 67,276 106,489 30,119 254 (24,591) 179,546 1,619 181,166 revenues Costs of material & (38,278) (62,446) (24,359) 0 23,595 (101,488) (1,352) (102,840) mailing Gross profit I 28,998 44,043 5,759 254 (996) 78,058 267 78,326 Production (10,708) (20,940) (2,144) 0 55 (33,736) (204) (33,940) costs Gross profit 18,290 23,103 3,616 254 (940) 44,322 63 44,386 II Other income 523 1,493 0 66 (110) 1,972 0 1,972 Selling and distribution (4,619) (6,344) (520) 0 6 (11,476) (13) (11,490) expenses Administrative (4,380) (7,303) (307) (1,553) 1,036 (12,508) (12) (12,520) expenses Research and development (362) (2,910) 0 (188) 0 (3,460) 0 (3,460) expenses Other expenses (57) (397) (135) (6) 9 (587) (7) (594) + Depreciation, 2,719 4,712 154 14 0 7,598 107 7,706 amortization and impairment adjusted 12,114 12,353 2,807 (1,413) 0 25,861 139 25,999 EBITDA - Depreciation, (2,719) (4,712) (154) (14) 0 (7,598) (107) (7,706) amortization and impairment adjusted EBIT 9,395 7,642 2,653 (1,427) 0 18,263 31 18,294 Financial 105 5 110 income Financial (2,961) 0 (2,961) expenses Result from associated 0 0 0 companies Net finance (2,857) 5 (2,851) costs adjusted Profit (Loss) 15,406 37 15,443 before tax Special items (719) 266 (453) Profit (Loss) 14,687 303 14,990 before tax Income tax (2,694) (37) (2,731) expense Profit (Loss) 11,993 266 12,259 * For comparative purposes segment reporting for H1 2023 was adjusted to be in line with the calculation of segment results as presented in the consolidated financial statements for the financial year 2023. This adjustment was necessary since the calculation of the segment results was revised subsequent to the publication of the H1 2023 results in 2023. [2]^[1] Earnings per share for H1 2023 were calculated considering retrospectively as per IAS 33.64 the issuance of bonus shares with a ratio of 1:1 which had been implemented in August 2023. End of Media Release ═════════════════════════════════════════════════════════════════════════════════════════════ Issuer: AUSTRIACARD HOLDINGS AG Key word(s): Enterprise 29.08.2024 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: 1978079 End of News EQS Media 1978079 29.08.2024 CET/CEST References Visible links 1. file:///appl/crsred1/tmp/HTML-FormatExternal-81xJot.html#_ftn1 2. file:///appl/crsred1/tmp/HTML-FormatExternal-81xJot.html#_ftnref1
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