Niederwangen, April 27, 2021, 7.00 a.m. - With net profit of CHF 4.3 million and EBIT¹⁾ of CHF 6.7 million, the Adval Tech Group performed quite well in the exceptionally difficult 2020 financial year. As already stated on March 26, 2021, the group posted total income¹⁾ of CHF 140.8 million in 2020 (previous year: CHF 178.9 million) and EBITDA¹⁾ of CHF 15.2 million (previous year: CHF 18.4 million). Adval Tech is well equipped to successfully manage the high number of production start-ups in 2021 at the various sites, also under more difficult conditions. At the Annual General Meeting on May 20, 2021, the Board of Directors will propose a dividend of CHF 1.35 per share.

With targeted measures, the Adval Tech Group 2020 succeeded in achieving a positive result for the year even under the very difficult circumstances and in securing liquidity at all times. Adval Tech managed all newly acquired projects in the required quality, within the agreed time and within the calculated costs. In addition, the Group also won new orders from the automotive industry and at the same time drove the technology business (sale of high-speed presses) and the components business for related applications in the consumer goods industry and medical technology.

Total income¹⁾
In 2020, the Adval Tech Group posted total income¹⁾ of CHF 140.8 million (previous year: CHF 178.9 million, -21.3%). Adjusted for currency effects, total income¹⁾ for 2020 was some 17% below the previous year.    

Adval Tech was able to compensate the decrease in sales from the sale of components for the automotive industry to some extent with new orders from the technology business of Adval Tech (Switzerland) AG. The sales trend at Adval Tech (Grenchen) AG, which manufactures components for the medical technology and consumer goods sectors, was also encouraging. This also applies to Adval Tech (Malaysia) Sdn. Bhd., which likewise operates in the consumer goods industry.

Profitability
EBITDA¹⁾ (earnings before interest, taxes, depreciation and amortization) amounted to CHF 15.2 million in the year under review (previous year: CHF 18.4 million). The EBITDA margin was 10.8% (2019: 10.3%). EBIT¹⁾ (earnings before interest and taxes) amounted to CHF 6.7 million (previous year: CHF 10.3 million), corresponding to an EBIT margin of 4.8% (2019: 5.8%). The largest contribution to the operating result were made by Adval Tech (Switzerland) AG, Niederwangen, Adval Tech (Grenchen) AG and Adval Tech (Malaysia) Sdn. Bhd. Net profit for the Group came to CHF 4.3 million (2019: CHF 8.7 million).

Investments and net current assets
In 2020 the Adval Tech Group invested CHF 3.4 million in property, plant and equipment (2019: CHF 8.1 million), for example for injection molding machines in Mexico, stamping presses in Germany and assembly equipment for new orders in Hungary. Cash flow from operating activities amounted to CHF 6.1 million in 2020 (2019: CHF 4.2 million). The operative free cash flow¹) was CHF 3.6 million (2019: CHF -3.8 million). This marked increase - despite the coronavirus pandemic - is mainly due to the higher cash flow from operating activities, consistent cost management and lower investments in property, plant and equipment.

Equity ratio and dividend payout
The Adval Tech Group's equity ratio remained at the previous year's high level of 77.8% at the end of 2020. At the Annual General Meeting on May 20, 2021, the Board of Directors will propose a dividend of CHF 1.35 per share.

Outlook
In view of the major uncertainties associated with the coronavirus pandemic and the extensive upheavals in the automotive industry, the outlook for 2021 is extremely difficult. Adval Tech does not expect the pandemic to end quickly and assumes that the economic environment will remain difficult. The transformation in the automotive industry will continue despite the coronavirus pandemic. Adval Tech has the competencies and resources to actively participate in shaping this change. The Group has taken all necessary measures to cushion the impact of the crisis as much as possible, and it is well equipped to successfully manage the high number of production start-ups in 2021, under the more difficult conditions and at the respective sites. The Adval Tech Group is not giving specific guidance on total income and EBIT in 2021.

          ¹⁾ Alternative Performance Measure, see Annual Report 2020, page 79
          ²⁾ Proposed by the Board of Directors

Background information about the Adval Tech Group
Adding value through innovation - that's what Adval Tech stands for. The Adval Tech Group is a global industrial supplier of technologically sophisticated components and subassemblies made of metal and plastic. It focuses on selected activities, especially in its main target market, the automotive industry. As a supplier and value-adding partner, Adval Tech covers the entire value chain from product development to prototyping, to mold and tool development, and through to component production and assembly.

Download media release
www.advaltech.com/en/group/investors/company-news/ad-hoc-notices 

Contact
Markus Reber, CFO, phone +41 31 980 82 70, markus.reber@advaltech.com
Valeria Poretti, Head Corporate HR/Communication, phone +41 31 980 82 66, valeria.poretti@advaltech.com

Download annual report
www.advaltech.com/en/group/investors/reports

Agenda
May 20, 2021, General Meeting of Shareholders 2021 (limited attendance)
End of August 2021, announcement of semi-annual results 2021

Except for the historical information contained herein, the statements in this media release are forward-looking statements that involve risks and uncertainties.