• 2022 revenues reached €314.7m, increasing by 76.9% compared to 2021, with Payment Products and Services segment growth driven by strong demand in all markets, and especially, Challenger banks, USA, Türkiye, as well as the first-time consolidation of TAG Systems UK. The Information Technology segment grew by expanding its digital transformation business in SEE and implementing significant security printing projects in Africa.

• Adjusted EBITDA reached €39.4m, growing by 80.5%, with input cost pressure mitigated by operating efficiency improvements and cost saving initiatives.

• Cash Flow from operations increased by 211.5% reaching €40.9mm, while capital expenditure (ex-M&A) stood at €21.6m, double compared to 2021.

• Cards sold reached 127.7mn compared to 88.8mn in 2021 increasing by 43.8%, positioning the Group in the European top tier providers of EMV-based smart cards and personalization services

• Effecting as of today AUSTRIACARD HOLDING AG shares are trading on the Vienna (VSE) and Athens stock exchanges (ATHEX) with the Symbol (ACAG)

CEO COMMENTARY

AUSTRIACARD HOLDINGS AG CEO, Panagiotis Spyropoulos noted:

“During 2022 we delivered a strong set of results, nearly doubling our financial performance compared to 2021, surpassing our targets. I want to thank all our employees at our 7 production facilities in  Andorra, Austria, Romania, Greece, UK, at our 8 personalization centres in Austria, Greece, Poland, Romania Spain, Türkiye,  UK and the USA, and at our sales offices across the globe, for their hard work and dedication to the Group. At the same time, I want to thank our expanding international client base for their trust.

We are progressing fast towards our target to build a world class company through organic growth and potentially selected acquisitions that can enrich our product offering and geographical footprint. We are growing further our market shares in payment and banking solutions in CEE, the Nordics and within Challenger Banks, while also expanding in new geographical areas such as the US, Middle East and Africa . We aim to be the secure data solutions provider of choice to our clients. At the same time, in the Information Technology segment we are enhancing our digital transformation portfolio.”

SIGNIFICANT EVENTS DURING 2022

Business developments

During 2022 AUSTRIACARD HOLDINGS AG (the “Company”) had a strong performance, growing its business across the board in all geographic and products areas. Payment products and services offering benefited from increased customer demand in nearly all sectors and especially with customers in USA, Turkiye and Challenger Banks in Western Europe after the COVID-19 affected years of 2020 and 2021.

Dealing with the global shortage of semiconductors and the global supply chain bottlenecks, our operations and sourcing teams have proven their resourcefulness and have managed to achieve a significant growth in production output of payment cards and thus a strong growth in revenues. Additionally we had a very successful implementation of a major security printing project related to the August 2022 Kenya elections. The Company continues on its path to become a partner of choice for digital transformation solutions in CEE increasing the contribution of these solutions in the total portfolio offered to its customers.

As expected, we have been affected by price increases by suppliers and higher energy costs. To mitigate these costs pressure the Company has implemented measures to improve operating efficiency as well as new cost saving initiatives. In addition, the Company has proceeded to selective price increases for its products and services.

Group reorganization and dual listing

During 2022 the decision was taken to merge INFORM Lykos Holding SA with AUSTRIACARD Holding AG and to apply for listing of AUSTRIACARD Holding AG on the Vienna and Athens stock exchange. This process has been completed today with the commencement of trading of the Company’s shares on the Athens (ATHEX) and Vienna (VSE) Stock Exchanges.

This consolidation will:

•   Align the interests of all shareholders of the Company.

•   Facilitate access to international financial markets and investors, resulting from the  

    increased transparency and visibility derived by trading in two European stock exchanges.

•   Increase the liquidity of Company shares with a higher market capitalization

•   Contribute to a more efficient operating structure with increased geographical and product

     reach, broader cross-selling opportunities and economies of scale.

2022 BUSINESS PERFORMANCE

Business performance

AUSTRIACARD HOLDINGS AG revenues reached € 314.7m increasing by € 136.8m or 76.9% compared to 2021. The main drivers of this revenue increase are attributed to the strong growth of payment products and solutions, the provision of security printing forms and ballots for the elections in Kenya and the first time consolidation of TAG Systems UK (formerly Nitecrest ltd. and Tag Nitecrest ltd.). From regional perspective, this increase is due to good business development in the core markets in Europe and Türkiye as well as to our expansion in the US market.

Gross profit I increased by € 59.4m or 73.6% to € 140.1m in 2022 as a result of the strong increase in revenues while the Gross margin I decreased by 0.8 percentage points to 44.5% due mainly to a change in sales mix. Gross profit II increased by € 33.1m or 81.0% to € 74.0m in 2022 and Gross margin II increased by 0.5 percentage points to 23.5% due to revenue growth and economies of scale.

Operating expenses excluding depreciation, amortization and impairment (OPEX) were higher by € 37.6m or 60.3% from € 62.4m to € 100.0m in 2022 as the OPEX increased due to higher business activity as well as due to the investment related to the expansion in the US market. Additionally we have the first time consolidation effect of TAG Systems UK and the costs related to the group reorganization and stock exchange listing. More specifically this increase in OPEX is attributable mostly to higher personnel expenses related to a higher number of employees (first time consolidation effect of TAG Systems UK and expansion in the USA market), transportation costs mostly related to the election project in Kenya, third party services and a price-driven increase in energy costs. As percentage of revenues Operating expenses reduced from 35.1% to 31.8% in 2022.

Adjusted EBITDA increased by € 17.6m or 80.5% from € 21.8m to € 39.4m in 2022 essentially as a result of the strong operating performance and the first time consolidation of TAG Systems UK (previously Nitecrest ltd. and TAG Nitecrest ltd, UK) with an effect of approx. € 4m.

Adjusted EBIT surged by € 15.1m or 153.6% as the increase in adjusted EBITDA was partially compensated by higher depreciation & amortization mainly related to acquired customer contracts (€ +1.0m). Adjusted Profit before tax increased by € 13.5m or 189.7% as the surge in adjusted EBIT was partially offset by higher interest expenses related to the higher average balance of outstanding loans and borrowings. 

As a result of the strong operating performance adjusted Profit after tax increased by € 12.2m or 250% from € 4.9m to € 17.1m.

Profit after tax decreased by € 4.5m or 44.9% from € 10.0 million to € 5.5m mainly due to a negative balance of Adjustments amounting to € -11.6m in 2022 compared to a positive balance of € 5.2m in 2021. In 2022 the balance of Adjustments essentially relates to non-cash expenses for management participation plan, expenses due to the revaluation of put options for shares in a subsidiary, negative effects of hyperinflation accounting for the subsidiary in Turkey and foreign exchange losses.

Financial position

Total assets increased by € 43.8m from € 226.4m to € 270.2m as of 31 December 2022 which is mainly related to increases in current assets and liabilities, additions to property, plant and equipment as well as to the positive fair value of interest rate swaps for hedging purposes. The reduction in non-current liabilities relates mainly to the usual maturing of long-term loans and the derecognition of put option liabilities for shares in a subsidiary which was partially offset by the increase in long-term liabilities for management participation plan. As a result of the generated Profit and the increase in Total assets, the Group’s equity ratio increased from 30.2% to 31.0% as of 31 December 2022. 

As of 31 December 2022, Net working capital decreased by € 3.8m or 13.3% to € 24.4 million due to the high level of Trade payables, Deferred income and Contract liabilities which more than compensated the increase in Inventory and Trade receivables. Net working capital requirements as a percentage of revenues decreased from 15.8% to 7.8% as of 31 December 2022.

The Group’s cash flow from operating activities increased by € 27.8m or 211.5% from € 13.1m to € 40.9m in 2022. This increase is essentially linked to the improvement of the operating result as well as to the stabilization of Net working capital.

Net Debt decreased by € 8.5 million from € 85.1 million as of 31 December 2021 to € 76.6 million as of 31 December 2022 due to the positive cash-flow and the resulting increase in cash and cash equivalents. The increase in loans and borrowings is mostly due to the increase of lease liabilities in connection with right-of-use assets. The net debt / adjusted EBITDA ratio decreased from 3.9x in 2021 to 1.9x as of 31 December 2022.

The 2022 Annual Financial Report of AUSTRIACARD HOLDINGS GROUP is available at: https://www.austriacard.com/investor-relations-ac/financial-reporting-ac/

ABOUT AUSTRIACARD HOLDINGS AG

AUSTRIACARD HOLDINGS AG, headquartered in Vienna, with an international presence and one of the leading providers of Secure Digital Technology Solutions in Europe.

AUSTRIACARD HOLDINGS AG is the one of the leading B2B providers of secure data, smart cards and payment solutions in Austria, Scandinavia, Central and Eastern Europe and South Eastern Europe, while also having significant market share in many other European countries and Türkiye. The Group is expanding fast in geographical areas outside Europe, such as the USA where it has established a new personalization center, and the Middle East & Africa where sales units have been developed that have already drawn significant new business. In addition, the Company has become a payment products and solutions partner of choice for Challenger Banks/Neo Banks, a growing market segment world-wide.

The Company has a strong pan-European operational footprint, reaching from the United Kingdom to Greece and Türkiye, with seven production facilities and seven personalization centres in Europe, as well as an additional personalization centre in USA. It also has sales offices in Norway, Czech Republic, Germany, Croatia, Serbia, Jordan, the UAE and a network of partners and selling agencies around the world. This footprint enables the provision of a high service level to our customers, confirmed by the very long lasting relationships we have with our customers. The Group’s international customer base benefits from a complementary product and service offering ranging from bill printing, direct mailing and document processing to payment, transit and ID cards increasingly bundled with online, mobile and digitalization transformation solutions.

Contact person: Mag. Markus Kirchmayr

Tel.:                   +43 1 61065 - 384

E-Mail:              markus.kirchmayr@austriacard.at

Website:            www.austriacard.com

Symbol:             ACAG

ISIN:                  AT0000A325L0

Stock Exchanges:  Vienna Prime Market, Athens Main Market