Quarterly Communication

technotrans starts the 2021 financial year with revenue and earnings growth
 

• Revenue of € 52.8 million is 1.3 % above pre-Corona 2020 level
• Strategy "Future Ready 2025" shows first successes
• Group operating profit (EBIT) rises by 63.2 % to € 2.9 million
• Board of Management confirms 2021 annual forecast and medium-term targets

Sassenberg, May 4, 2021 - technotrans SE has made a positive start to the 2021 financial year despite the continuing challenges posed by the Corona pandemic. In the first three months, a consolidated turnover of € 52.8 million was achieved. With the increase of 1.3 % compared to the same period of the previous year, this even exceeded the pre-Corona level. Consolidated EBIT increased substantially by 63.2 % and reached € 2.9 million (previous year € 1.8 million). The EBIT margin of the group improved significantly from 3.4% to 5.4%. The Board of Management confirms its forecast for the 2021 financial year of consolidated revenue of € 195 to 205 million with an EBIT margin between 4.5 and 5.5 %.


"With flexibility and innovation, technotrans has found the right answers to the ongoing pandemic-related challenges. We are very satisfied with the business performance in the first quarter under the given general conditions. The structural measures already introduced last year and the strategic realignment 'Future Ready 2025' are having an effect. We are right on schedule," says Michael Finger, Spokesman of the Board of Management of technotrans SE.

Turnover and profitability increased
The technotrans group realised consolidated revenue of € 52.8 million in the first three months of the 2021 financial year, which was 1.3 % up on the previous year's figure of € 52.2 million. Consolidated EBIT reached € 2.9 million in the first quarter (previous year: € 1.8 million). The 63.2 % increase proves the effectiveness of the structural and strategic measures introduced. The EBIT margin developed as expected - also due to the increased fixed cost degression - from 3.4 % to 5.4 %. ROCE has also improved and reached 9.1% at the end of the first quarter, being 1.6 percentage points above the previous year. As at March 31, the group achieved a consolidated net profit of € 1.9 million. The increase of around 67% is reflected in earnings per share of € 0.27 (previous year: € 0.16).

Substantially positive free cash flow
As expected, the asset and financial situation also developed solidly. The equity ratio remained in line with the target at 51.9% despite an extension of the balance sheet as at the reporting date (December 31, 2020: 53.6 %). Net debt decreased by 20.8 % to € 17.1 million in the first quarter. The group was able to meet all its financing requirements for the first quarter from its operating business. Accordingly, technotrans generated a positive free cash flow of € 4.9 million, a sharp improvement on the negative prior-year figure of € -2.1 million.

Profitability generated in both reporting segments
In the Technology segment, revenue of € 38.9 million was almost at the previous year's level. After the pandemic-related slump in the second quarter of the previous year, revenue in this segment has now risen for three quarters in a row. The Technology segment's share of revenue remained almost unchanged at 74% (previous year: 75 %). The segment EBIT developed very positively. Compared to the previous year, it improved by around € 1.0 million to € 0.8 million. This was reflected in a positive segment margin of 2.1% (previous year: -0,5 %). The Services segment generated a turnover of € 13.9 million. Compared to the previous year's value of € 13.1 million, it recorded an increase of 6.2 %. This shows the moderate relaxation of Corona-related travel restrictions. The segment EBIT increased by € 0.1 million to € 2.1 million. Segment return reached 14.9 % (previous year: 15.2 %).

Strategic target markets pick up speed
The target markets according to the group strategy "Future Ready 2025" developed positively in the first quarter, as expected. Healthcare & Analytics realised an increase in revenue of more than 40 %, driven in particular by sales of cooling systems for analytical equipment and baggage scanners. The newly created Energy Management segment (electromobility, high-power charging stations, data centres) generated growth of more than 10 %, especially in rail transport, due to the increasing demand for temperature control devices for traction batteries, so-called Battery Thermal Management Systems (BTMS). As a building block for future growth, technotrans also acquired two significant series orders via BTMS for electric trains in Europe in the period under review, with a medium-term order volume in the seven-figure range. The focus market Plastics also recorded double-digit sales growth of around 10 %. Here the technotrans engineers scored with a newly developed generation of temperature control units. Positive impulses were also generated by the film extrusion business, among other things due to the increased demand for packaging for medical and hygiene products. The Laser & Machine Tool Industry remained an important business area. While revenue of cooling systems for classic laser applications declined, the strategic focus on the project business in the metal and forming industry generated additional revenue potential. Overall, revenue in this area was on a par with the previous year. Revenue of € 16.8 million was achieved with customers in the printing industry, being 13.1% below the previous year. The pandemic-related investment restraint continued and could not be compensated by the moderately increasing service business. In total, the Print segment's share of group revenue fell by 5.3 percentage points to 31.7%.

Outlook
Based on the raised forecasts of leading institutions such as the IMF and VDMA, as well as the positive business performance in the first quarter, the Board of Management also expects an increasing recovery in the further course of the financial year and hopes for a sustained trend reversal in the relevant markets. This assessment assumes that no new setbacks will occur in the pandemic response.

The structural measures already implemented in the previous year showed first successes in the reporting period, both on revenue and profitability side. All other steps initiated on the basis of the "Future Ready 2025" strategy for the 2021 financial year, such as the merger of individual group companies, are on schedule.

The order situation is also encouraging: The book-to-bill ratio of 1.1 at the end of the quarter indicates growth. The Board of Management expects further impetus in the following months, especially from the target markets Plastics, Energy Management and Healthcare & Analytics. Provided the picture in the print sector actually brightens, as forecast by the industry, technotrans' revenue situation will also stabilise here. The Laser & Machine Tool Industry market, on the other hand, remains demanding. technotrans puts the focus on customers with individual requirements in order to make the best possible use of its strength as a competent systems partner.

The Board of Management confirms its forecast of achieving consolidated revenue of between € 195 million and € 205 million in the 2021 financial year with an EBIT margin of between 4.5 and 5.5 %. The forecast is subject to the proviso that the relevant markets continue to recover in the course of the year and that no additional burdens result from the Corona pandemic. Furthermore, the Board of Management confirms the medium-term goals of achieving revenue in a range of € 265 to 285 million in the financial year 2025 with an EBIT margin between 9.0 and 12.0 % to be achieved. Acquisitions are not included in these forecasts.

"Following the positive start to the year for the technotrans group, we are optimistic and confident about the rest of the year. We will continue to consistently drive forward the 'Future Ready 2025' strategy," says Michael Finger.

For further information, visit: www.technotrans.com

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Note

This communication contains statements on the future development of the technotrans group. These reflect the present views of the management of technotrans SE and are based on the corresponding plans, estimates and expectations. We point out that the statements are subject to certain risks and uncertainties which could mean that the actual results differ considerably from those expected