EQS-News: PWO AG / Key word(s): Half Year Report
PWO Group reports successful business performance in first half of 2023
08.08.2023 / 08:00 CET/CEST
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PWO Group reports successful business performance in first half of 2023

Carlo Lazzarini (CEO):“We are systematically continuing our profitable growth strategy and thereby separating ourselves from the current economic cycle. We are shaping the mobility of the future with our business model, which is entirely independent of internal combustion engines, and with our high innovative strength."

• Gratifying revenue growth
• Determined and ongoing expansion of market position
• Risk positions reduced
• Forecasts for EBIT before currency effects and life-time volume of new business in fiscal 2023 adjusted upwards as communicated on July
  26,
  2023
  
  

Oberkirch / Valašské Meziříčí / Kragujevac / Kitchener / Puebla / Suzhou /

August
8,
2023 – The business performance of the PWO Group has exceeded expectations in the first half of 2023. The high level of new business in recent years is now resulting in a stream of new series production start-ups and ramp-ups that visibly exceed phase-outs. Thus, the ongoing expansion of our market position for several years is now also being reflected in our revenue figures.

EBIT before currency effects was below the prior-year figure on account of several negotiations with customers regarding the massive cost increases across a broad front that have not yet been finalized. We feel that these talks are making good progress and we firmly believe that they can be concluded with a fair result for all parties.

The high level of new business again in the reporting period will mostly begin production in fiscals 2024 and 2025 and will safeguard the Group's ongoing growth. Our innovative solutions for climate-friendly lightweight components at the very frontiers of what is technologically possible are sought after the world over. Customers put their faith in our high capacity for innovation and the reputation for delivery reliability and quality that we have built over decades.

The PWO Group's key performance indicators in the first half of 2023 are as follows:

• Revenue: EUR
  280.5
  million (PY: EUR
  258.1
  million)
• EBIT before currency effects: EUR
  14.9
  million (PY: EUR
  16.9
  million)
• EBIT including currency effects: EUR
  14.2
  million (PY: EUR
  17.0
  million)
  
• Profit for the period: EUR
  8.5
  million (PY: EUR
  10.7
  million)
• Capital expenditure: EUR
  5.4
  million (PY: EUR
  10.4
  million)
• Free cash flow: EUR
  10.9
  million (PY: EUR
  -8.1
  million)
• Equity ratio: 37.6% (December
  31,
  2022: 37.8%)
• Lifetime volume of new business: around EUR
  415
  million (previous year: around EUR
  465
  million)
  
  

On the basis of the successful performance in the first half of 2023 in view of the current market situation, our positive assessment of ongoing business developments and reduced risk positions, we raised our forecast for EBIT before currency effects to between EUR
23
million and EUR
26
million in an ad hoc disclosure on July
26,
2023. After having already achieved the lower end of our previous forecast range for the lifetime volume in new business in fiscal 2023 in the first 6 months, we raised our new business forecast to between around EUR
700
million and EUR
800
million in the same disclosure.

We are confirming our other forecasts for our financial performance indicators. To ensure the start-ups and ramp-ups of new series production operations planned for the coming years and in anticipation of the ongoing expansion of our activities in Eastern Europe, we intend to invest around EUR
40
million in fiscal 2023. Much of this relates to land that will be purchased once the local authorities in Eastern Europe have issued the construction permits. This may take place after the end of the fiscal year in the first quarter of 2024, which would have a positive effect on free cash flow in the reporting year and the accounting ratios as of the end of fiscal 2023.

Our expectations for fiscal 2023 are still based on the assumptions that there will be no major disruptions to supply chains in 2023, for example due to pandemic-related restrictions or economic sanctions, that energy will be available in sufficient quantities and that there will be no significant deviations from the anticipated price developments.

The half-year report will be published on PWO's website at .

PWO AG
The Executive Board

Contact:
Charlotte Frenzel
Investor Relations & Corporate Communications
T. +49 179 6904 237
M.

PWO Group profile
We are a global company in the mobility industry that takes the lead in shaping the environmentally friendly mobility of the future through innovations and is entirely independent of combustion engines.
With our expertise in climate-friendly lightweight construction, we are technology leaders and combine economic efficiency with sustainability. We develop and produce sophisticated metal components and complex subsystems at the frontiers of what is technologically possible.
As a serious employer with informal structures at a global level, we are home to 3,000 employees at 9 locations on 3 continents.
Our actions are driven by inner motivation and conviction, which is why sustainability is one of the core values of our Group.
We meet the challenges of our time with innovative and sustainable concepts. But most of all, we aim to take the related opportunities.
Our corporate strategy is summed up by the slogan PEOPLE. PLANET. PROGRESS.