EQS-News: STS Group AG publishes annual report 2022 - Positive sales revenue and earnings situation of the Plastics and Materials segments

STS Group AG publishes annual report 2022 - Positive sales revenue and earnings situation of the Plastics and Materials segments

• Significant sales revenue growth in Europe partially compensates the slowdown in China
• Slight decrease in Group revenue by 2.9% to 235.1 mEUR (2021: 242.0 mEUR) in line with expectations
• EBITDA declines to 9.6 mEUR (2021: 19.1 mEUR) due to delay in material price increase compensations from customers in Europe and lower volumes in China
• Expansion of North America business in focus for 2023
• Forecast 2023: slight sales revenue growth compared to previous year and significant increase in EBITDA and adjusted EBITDA expected

Hagen, 20 April 2023 STS Group AG (ISIN: DE000A1TNU68), a global systems supplier for the automotive industry listed on the General Standard of the Frankfurt Stock Exchange, today publishes its annual report and audited consolidated figures for the financial year 2022.

The STS Group achieved sales revenue of 235.1 mEUR in the financial year 2022, compared to 242.0 mEUR in the previous year, which leads to a slight decline of 2.9%. Revenue in China fell by 57.6% to 30.4 mEUR in the reporting year (2021: 71.8 mEUR), which is purely related to the restrictive zero-covid policy and the associated lockdowns. The Plastics segment, on the other hand, benefited from a revival of demand in the commercial vehicle sector with an 18.6% increase in sales revenue to 179.8 mEUR in 2022 (2021: 151,7 mEUR). The Materials segment also recorded a significant increase in sales revenue of 44% to 36.3 mEUR (2021: 25.2 mEUR) due to a rise in demand for commercial vehicles and SMC products. In addition, some of the increases in energy costs and material prices could be passed on to the customer in the financial year 2022, which is also reflected in the sales revenue. Overall, however, the pleasing sales revenue growth in Europe in the Plastics and Materials segments could not compensate for the market-related decline in other regions. As a result, demand at the Group level has not yet fully returned to the pre-Corona level.

The above mentioned effects had also impacted the earnings situation of the STS Group. The operating result before interest, taxes, depreciation and amortisation (EBITDA) fell from 19.1 mEUR in the previous year to 9.6 mEUR in the reporting year. This was beside the sales decrease in China, also due to delays in customer compensations for material price increases as also some costs that occurred for the implementation of cost reduction measures. There were no special effects in the financial year, so adjusted EBITDA in the 2022 financial year was the same as EBITDA (2021: 19.9 mEUR). The adjusted EBITDA margin was 4.1% in the reporting year after 8.2% in the previous year. For the financial year 2022, STS Group AG reported a consolidated result of -9.9 mEUR (2021: 1.8 mEUR).

Alberto Buniato, CEO of STS Group AG: "We can draw an extremely positive balance for our European business in the Plastics and Materials segments with a significant market recovery for 2022. In addition, the implemented restructuring measures in both segments contributed to an improved segment margin, which should also be visible at Group level in the current year. The positive development of our site in Mexico also made a significant contribution to growth in the Plastics segment. On the other hand, the strict zero-covid strategy had a significant negative impact on demand in China. Nevertheless, we continue to see China as a clear growth driver for the automotive industry and as an important core market for the STS Group, because the long-term growth trend is intact, regardless of the now significantly relaxed political covid measures. Overall, the further expansion in Europe and China, but especially of the North America business is and remains the focus for the current financial year and beyond."

Pietro Lardini, member of the Supervisory Board and representative of the majority shareholder Adler Pelzer Group: We strongly believe in our investment in the STS Group. Especially in regard to the upcoming ramp-up of the new Plant in the USA and the continuous recovery of the overall markets. Those effects combined with the further increase of profitability in Europe and Mexico will contribute positively to the future performance of the Group.

Forecast 2023

For the 2023 financial year, the Executive Board expects a slight increase in revenue compared to the previous year. As the Chinese commercial vehicle market is expected to pick up again, the Executive Board anticipates a significant increase in adjusted EBITDA in the 2023 financial year. Relevant extraordinary expenses are not planned for the financial year, therefore adjusted EBITDA corresponds to EBITDA.

The Annual Report 2022 of STS Group AG will be available for download on April 28, 2023 at https://www.sts.group/investor-relations/publications.

Key figures financial year 2022

About STS Group:

STS Group AG, www.sts.group (ISIN: DE000A1TNU68), is a leading system supplier to the automotive industry. It employs more than 1,400 people worldwide and generated sales of 235.1 mEUR in the financial year 2022. STS Group ("STS") produces and develops at its twelve plants and three development centers in France, Germany, Mexico, China and, in the future, also in the USA plastic injection moulding and components made of composite materials (Sheet Molding Compound - SMC), such as solid and flexible vehicle and aerodynamic trim, entire interior systems, as well as lightweight construction and battery components for electric vehicles. STS is considered as a technology leader in the manufacture of plastic injection moulding and components made of composite materials. STS has a large global footprint with plants in three continents. The customer portfolio comprises leading international manufacturers of commercial vehicles, passenger cars and electric vehicles.

STS Group AG
Investor Relations
Kabeler Str. 4
58099 Hagen
ir@sts.group
www.sts.group