Corporate News from 30 September 2022

HMS Bergbau AG: Earnings jump in the first half of 2022

• Sales 1HY 2022: + EUR 239.8 million to EUR 404.7 million
• EBITDA 1HY 2022: EUR 5,420 thousand (PY: EUR 944 thousand)  
• Net profit 1HY 2022: EUR 3,034 thousand (PY: EUR 381 thousand)  
• Liquidity equalled EUR 42.7 million as of 30 June 2022 (as of 31 December 2021: EUR 26.0 million)
• Outlook 2022: Sales and earnings expected to be significantly above the record year of 2021 / positive outlook overall

Berlin, 30 September 2022: HMS Bergbau AG, one of the leading independent raw materials trading and marketing companies in Germany, today published its half-year report 2022.

Business performance in the first half of 2022 was dominated by Russia's attack on Ukraine. The sanctions against Russia and the resulting energy crisis were the main drivers of a steady overall rise in commodity prices. Amid this difficult-to-forecast market environment, the demand for coal has been and continues to be particularly strong due to the higher competitiveness of coal in some markets compared to other energy sources.

As an international raw materials trader, HMS Bergbau AG traded coal next to other commodities such as ores (e.g. chrome, lithium and manganese), beryllium, cement and fertilisers in line with its internationalisation strategy. In addition, we successfully strengthened our trading business in Asia and Africa. As part of the further global expansion strategy, we established a subsidiary in Dubai, which is one of the world's most important trading centres for raw materials.

In the first six months of the current 2022 financial year, HMS Bergbau AG came close to achieving the record level of results achieved in the 2021 financial year. As of 30 June 2022, the Group had generated sales of EUR 404.7 million, corresponding to a year-on-year increase of almost 150 per cent. The sharp increase in sales of EUR 239.8 million, resulting primarily from price increases, also led to a significant improvement in earnings. EBITDA amounted to EUR 5,420 thousand in the first half of 2022, compared to EUR 944 thousand in the first half of 2021. Net profit reached EUR 3,034 thousand as of 30 June 2022, compared to EUR 381 thousand as of 30 June 2021. Liquidity as of the 30 June 2022 reporting date equalled EUR 42.7 million (31 December 2021: EUR 26.0 million), giving HMS Bergbau AG added room to manoeuvre as it continues to develop into a responsible, international vertically and horizontally positioned commodity trader.

Despite the global political turmoil, the management of HMS Bergbau AG continues to have a positive assessment of the medium-term operating outlook. This statement is supported by the increase in energy demand worldwide, which will continue to be met by coal-fired power generation, particularly in developing countries, as well as in many industrialised nations. The Group considers itself well positioned in this respect, above all due to its international trade relations and its local representative offices. Accordingly, the Group is also aiming to achieve clearly positive results in the years ahead.

With regard to short-term global developments, the assumption must be made that there will be further potentially significant changes in energy and raw material prices as well as in global supply chains. It is not currently possible for management to make any reliable forecasts with respect to short-term business performance.

For 2022, however, sales and earnings are expected to be significantly above the record levels achieved in 2021.

The Management Board

About HMS Bergbau AG:

HMS Bergbau AG, Berlin, is one of the leading independent commodity trading and marketing companies in Germany. Its core business is the international buying and selling of coal and raw materials such as ores, fertilizers and cement products. Customers include renowned international power producers and industrial consumers, to whom raw materials are delivered in-time worldwide. HMS Bergbau AG, which is primarily active in Asia, Africa and Europe, also develops first-class commodity reserves. Furthermore, the Company provides complex transport solutions for its customers. Founded in 1995, HMS Bergbau AG is listed on the Basic Board of the Frankfurt Stock Exchange.