DGAP-News: R. STAHL: In the second quarter of 2022, R. STAHL again increases order intake (+18%) and sales (+5%)

In the second quarter of 2022, R. STAHL again increases order intake (+18%) and sales (+5%) EBITDA pre exceptionals remains under pressure at 3.9 million due to procurement bottlenecks Forecast for full-year 2022 specified

• Order intake increases by 17.8% to 76.9 million
• Second-quarter sales of 67.7 million up 4.9% year-on-year
• EBITDA pre exceptionals of 3.9 million 0.6 million below prior year, EBITDA margin pre exceptionals at 5.8%
• Net profit improves to -0.9 million (+27.8%)
• Forecast for full-year 2022 specified: Sales corridor between 270 - 275 million, EBITDA pre exceptionals of between 18 - 21 million expected

Waldenburg, 11 August 2022- R. STAHL today publishes its preliminary business figu­res for the second quarter of 2022. Development of demand showed a significant impro­vement despite the Russia-Ukraine conflict and ongoing procurement bottlenecks. Although as was already the case in previous quarters disrupted and partially inter­rupted supply chains, particularly for semiconductors and electronic components, continue 4.9% to 67.7 million (Q2 2021: 64.5 million) compared to the prior-year quarter.

Order intake also continued to develop very encouragingly, climbing by 17.8% year-on-year to 76.9 million in the second quarter (Q2 2021: 65.2 million). The upswing in demand spans all regions and segments and also confirms R. STAHL's excellent market position.

Sales growth led to EBITDA pre exceptionals of 3.9 million in the second quarter (Q2 2021: 4.5 million), which is 0.6 million lower than in the prior-year quarter, amid rising cost items. The EBITDA margin pre exceptionals was therefore 5.8% (Q2 2021: 7.0%). Net profit increased by 27.8% year-on-year to -0.9 million (Q2 2021: 1.2 million). This corresponds to earnings per share of -0.13 (Q2 2021: -0.19).

R. STAHL has specified its forecast for 2022, which was issued for the first time in April. We are, on the one hand, receiving positive signals from our international markets. These signals show a stable and healthy order intake in particular. But on the other hand, the general conditions remain uncertain as a result of the Russia-Ukraine conflict and disrupted supply chains. Under these circumstances, we have now specified the forecast we issued in spring for full-year 2022: Accordingly, we expect Group sales between 270 and 275 million with EBITDA pre exceptionals between 18 and 21 million, said Dr. Mathias Hallmann, Chief Executive Officer of R. STAHL AG.

Business development in the second quarter

Positive sales development spans all regions with the exception of the Asia/Pacific region, where sales declined by 14.9% compared to the prior-year quarter. This is attribute­able to the restrictions that continue to prevail in large parts of Asia, triggered by the COVID-19 pandemic. In Germany, an increase of 8.7% to 17.8 million was generated driven by continued good demand from the chemical industry and a recovery in orders from the mechanical engineering sector. In the Central region (Africa and Europe exclu­ding Germany), too, customers from the chemical industry in particular helped generate quarterly sales of 29.1 million (+2.2%). The sustained momentum in the oil and gas markets ensured above-average growth of 61.9% to 8.5 million in the Americas region.

Order intake grew disproportionately in relation to sales across all regions by 17.8% to 76.9 million, and the order backlog as of 30 June 2022 increased as a result to 95.1 million (30 June 2021: 67.9 million).

Development of financial position and performance in the second quarter

The small year-on-year reduction in finished and unfinished goods of -1.5 million (Q2 2021: -2.6 million), with own work capitalized remaining virtually unchanged, resulted in a 6.5% increase in total operating performance in the second quarter of 2022 to 67.3 million (Q2 2021: 63.2 million). As a result of price increases, the cost of materials rose by 11.9% to -23.2 million (Q2 2021: 20.7 million), while the cost of materials ratio increased to 34.5% of total operating performance (Q2 2021: 32.8%). Personnel expenses climbed by 4.9% to -31.7 million in the second quarter (Q2 2021: -30.2 million), mainly due to negative effects resulting from the difficult supply situation.

The balance of other operating income and other operating expenses increased by 0.7 million to -8.9 million in the reporting quarter (Q2 2021: -8.2 million). While other operating expenses of -12.2 million were 2.3 million higher than in the previous year, other operating income increased by 1.7 million to 3.3 million (Q2 2021: 1.6 million), mainly due to higher exchange rate gains.

Amortization of intangible assets and depreciation of property, plant and equipment amounted to -4.1 million in the second quarter of 2022, which was almost on a par with the prior-year period (Q1 2021: -4.2 million).

EBIT fell by 0.4 million to -0.6 million in the reporting period (Q2 2021: -0.2 million).

Equity improved by 11.3 million year-on- year to 61.0 million (31 December 2021: 49.8 million).  The negative net result was offset by positive equity effects due to lower provisions. This resulted in an equity ratio of 23.5% compared with 20.2% as of 31 Decem­ber 2021.

Net debt (excluding pension provisions and lease liabilities) increased by 4.9 million to 23.2 million as of June 30, 2022, compared with the figure as of 31 December 2021, due to the higher financial liabilities.

Business and earnings development in the first half of 2022

From a half-year perspective, R. STAHL also generated a sales increase of 4.9% and achieved sales 128.7 million, largely due to the strong second quarter of 2022. Order intake in the first half of the year totaled 152.0 million, an increase of 17.7%, which means that the positive development from the first quarter continued unabated.

In the first six months of 2022, EBITDA pre exceptionals decreased by 0.2 million to 7.0 million (6M 2021: 7.2 million). This corresponds to an EBITDA margin pre exception­nals of 5.4% (6M 2021: 5.9%). Exceptionals of -0.6 million were at the level of the prior year. Net profit declined from -3.7 million in the prior-year period to -6.3 million, earnings per share were -0.97 (6M 2021: -0.58).

Forecast for the 2022 financial year

The forecast of low double-digit percentage growth in sales and EBITDA pre excep­tionals announced for the first time with the publication of the annual financial statements for 2021 and confirmed in the first quarterly report for 2022 has been specified. Uncertain­ties remain with regard to the disrupted supply chains and the resulting developments in material prices. Similarly, the impact of the Russia-Ukraine conflict on global economic development and thus also on R. STAHL and the 25% stake in the Russian ZAVOD Goreltex remains difficult to predict.

Assuming a secure gas supply in Europe, the progressive easing of global supply chains and the ability to consistently pass on further cost increases, R. STAHL expects full-year sales of between 270 and 275 million in 2022. The forecast corridor for EBITDA pre exceptionals is between 18 and 21 million. Furthermore, the company expects a signify­cantly improved equity ratio compared to 2021 and a continuing high liquidity requirement.

Key figures of the R. STAHL Group for the second quarter of 2022 in accordance with IFRS

Rounding differences and rates of change
Percentages and figures in this report may include rounding differences. The signs used to indicate rates of change are based on mathematic aspects. Rates of change >+100% are shown as >+100%, rates of change <-100% as n/a (not applicable).

Note
The interim report Q2 2022 is available for download under the following link: https://r-stahl.com/en/global/corporate/investor-relations/ir-news-and-publications/financial-reports.

Investors and analysts conference call of R. STAHL AG for Q2 2022

Chief Executive Officer of R. STAHL AG, Dr. Mathias Hallmann, will explain the results of Q2 2022, present an outlook for the current year and will be available for questions afterwards. The conference call will be held in English language

today at 10:00 CET

Please dial one of the following numbers to join the call and provide the PIN as well as your full name and companys name when prompted:

DE: +49 89 2030 35529

UK: +44 (0)330 165 4006

US: +1 323 994 2131

PIN: 3094855

Along with the conference call, we will provide an online presentation via the internet. Please log on as a participant on the following website (no password required):

https://www.webcast-eqs.com/rstahl20220811/no-audio

A replay of the audio webcast will be available shortly after the conference call has ended on the companys website under the following link:

https://r-stahl.com/en/global/corporate/investor-relations/ir-news-and-publications/events-and-presentations

We look forward to talking to you.

Financial calendar 2022

10 November  Interim report Q3 2022

28/29 November German Equity Forum, Frankfurt/Main

About R. STAHL www.r-stahl.com
R. STAHL is the world's leading supplier of electrical and electronic products and systems for explosion protection. These products and systems prevent explosions in hazardous areas and contribute to the safety of people, machines and the environment. The portfolio ranges from products used in switching/distributing, installing, operating/monitoring, lighting and signalling/alarming up to automation.

Typical customers are the chemical and pharmaceutical industry, the oil & gas industry - including LNG applications - as well as the food and beverage industry. Most of the R. STAHL products are also approved for use with hydrogen. In 2021 global sales amounting to around 248 million were generated by 1,672 employees. The shares of R. STAHL AG are traded on the Regulated Market/Prime Standard of Deutsche Boerse (ISIN DE000A1PHBB5).

Forward-looking statements
This release contains forward-looking statements based on assumptions and estimates of R. STAHLs management. Although we assume that the expectations of these forward-looking statements are realistic, we cannot guarantee that these expectations will prove to be correct. The assumptions may involve risks and uncertainties that could cause the actual results to differ materially from the forward-looking statements. Factors that may cause such discrepancies include: changes in the macroeconomic and business environment, exchange rate and interest rate fluctuations, the roll-out of competing products, a lack of acceptance of new products or services, and changes in business strategy. R. STAHL does not plan to update these forward-looking statements nor does it accept any obligation to do so.