technotrans sets course for profitability and confirms forecasts for 2024 and 2025

• Decline in revenue in Q1 due to general economic conditions - Group revenue at € 56.0 million
  (previous year: € 68.3 million)
• EBIT margin reaches 0.7 % (previous year: 5.2 %) with EBIT being at € 0.4 million
  (previous year: € 3.5 million)
• ttSprint efficiency program progressing according to plan
• First restructuring expenses included in Q1 result - adjusted EBIT margin amounts to 2.0%
• Energy Management with 38% revenue increase
• Major orders in the areas of liquid-cooling for data centers and e-mobility

Sassenberg, May 14, 2024 - As expected, due to the weak economic environment the technotrans Group made a muted start into the 2024 financial year. In the first 3 months, the thermal management specialist generated consolidated revenue of € 56.0 million (previous year: € 68.3 million). Consolidated EBIT amounted to € 0.4 million (previous year: € 3.5 million). First restructuring expenses of € 0.7 million in connection with the ttSprint efficiency program were already included in the EBIT.  The EBIT margin was 0.7 % (previous year: 5.2 %), the adjusted EBIT margin reached 2.0 % accordingly. Return on capital employed (ROCE) amounted to 10.3 % (previous year: 13.0 %). The technotrans Board of Management expects business to pick up in the second half of 2024. technotrans already paved the way for an increase in profitability at the start of the year with major orders in key future technologies and the launch of the ttSprint efficiency program. The Board of Management confirms the forecast for the current financial year and continues to expect revenue between € 245 and 270 million with an EBIT margin between 5.5 % and 7.5 %. The mid-term targets for the 2025 financial year are also confirmed.

"As expected, we were not able to escape the weak economic trend, particularly in Germany. 2024 is the year of transformation for us. With our ttSprint efficiency program, we are structurally transforming technotrans into a market-oriented, lean and powerful company. With our efficiency program and successes in important future markets, we are setting the course for higher profitability and expect the first contributions to earnings as early as this year," says Michael Finger, CEO of technotrans SE.

Weak economy impacts performance in the first quarter
The technotrans Group generated revenue of € 56.0 million in the first quarter of 2024 (previous year: € 68.3 million). Reductions and postponements of larger orders to the second half of 2024 led to a significant temporary burden. The focus markets accounted for 95 % of Group revenue. The Energy Management focus market in particular achieved strong revenue growth of around 38% due to major orders in the field of electromobility. As expected, EBIT fell to € 0.4 million (previous year: € 3.5 million) and the EBIT margin to 0.7 % (previous year: 5.2 %). EBIT includes one-off expenses of € 0.7 million related to the ttSprint efficiency program. The adjusted EBIT margin therefore amounted to 2.0 %. ROCE amounted to 10.3 % (previous year: 13.0 %).

The revenue and earnings performance in the first quarter of 2024 is attributable in particular to the persistently weak economic environment in Germany and  the high interest rates. As expected, the lower revenue volume combined with unfavourable cost degression and initial expenses for the organizational transformation of the technotrans Group had an impact on consolidated EBIT and ROCE in the first three months.

Significant major orders generated, product portfolio expanded
Despite the decline in revenues, the course in the first quarter of 2024 was set for future growth. Of particular note is a follow-up order in the high single-digit million range for the cooling of battery storage fast-charging stations from the manufacturer ADS-TEC Energy. Further major orders for mobile and stationary cooling systems for rail and road transportation are also currently being implemented.

As part of another major order for liquid-cooling systems for high-performance servers in the USA, technotrans has developed a new retrofit solution. This represents a decisive expansion of the product portfolio: The thermal management specialist now offers cooling solutions both for the initial equipment of new data centers and for retrofitting existing data center structures. This enables technotrans to tap into significant additional growth potential.

Efficiency program as a comprehensive Group transformation
technotrans has launched the ttSprint efficiency program to support the 2024 and 2025 earnings targets. In addition to a stronger customer focus and greater speed, this program is intended in particular to increase the company's profitability. The specific measures include a decentralized, market-oriented organization in line with technotrans' focus markets and a focus on profitable growth markets and products. Other instruments such as greater modularization and the reduction of complexity in product development are intended to help the Group to achieve greater cost efficiency. The company's cost structure will be adjusted accordingly. The project is progressing according to plan. The first contributions to earnings are expected this year. The full effect will be seen in 2025.

Board of Management confirms forecast
In view of the increasing importance of intelligent thermal management for the global megatrends of decarbonization, digitalization and electrification as well as the consistent strategic focus, technotrans Board of Management is confident about the future development of the company despite the difficult economic conditions. For 2024, it expects revenue between € 245 and 270 million with an EBIT margin between 5.5 and 7.5 %. ROCE is forecasted between 14.0 and 16.0 %. The mid-term targets for the 2025 financial year remain unchanged: revenue between € 265 million and € 285 million and an EBIT margin between 9.0 and 12.0 %. ROCE is expected to exceed 15.0 %. M & A transactions are not included in this figure.

"We will consistently implement our Future Ready 2025 strategy with the ttSprint efficiency program," emphasizes Michael Finger. "This will pave the way for profitability and make us more resilient to external influences."

Further information at: www.technotrans.com

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Note

This press release contains statements on the future development of the technotrans Group. They reflect the current views of the management of technotrans SE and are based on corresponding plans, estimates and expectations. Please note that the statements contain certain risks and uncertainties that could cause actual results to differ materially from those anticipated.