• Solid first half year
• Incoming orders below previous year's level
• International expansion progresses
• Sales and Group earnings confirmed at the lower end

Prime Standard-listed GESCO SE, an industrial group of medium-sized market- and technology-leading companies, today published its half-year report 2023. In view of the gloomy business environment, GESCO Group performed well overall in the first half of 2023, even though the key business figures of the previous year were only partially achieved: The slight increase in Group sales to € 292.1 million could not fully compensate for the effects of higher personnel costs, volatile material prices and continued high energy costs. EBITDA fell by 9.1 % to € 31.7 million in the reporting period, EBIT by 11.7 % to € 22.8 million and net income after minority interests by 14.9 % to € 14.3 million.

GESCO Group is not unprepared for the gloomy economic conditions in Germany. GESCO is continuing to pursue its internationalisation strategy in a focused manner in order to meet its goal of expanding its international market share. As the general conditions in the USA in particular have improved in recent years, the focus continues to be on expanding the Group's activities in the USA. An example of this is the recent acquisition of Tremblay Tool Steels, LLC from Ohio by the largest subsidiary Dörrenberg. With the acquisition of this supplier of special steel, Dörrenberg is significantly expanding its presence in the USA.

Outlook 2023: Sales and Group earnings expected at the lower end

When presenting the forecast for the current business year for the first time, the Executive Board was only cautiously optimistic against the backdrop of the many challenges that loomed for the 2023 business year. The current development of the business figures confirms this assessment. It is characterised by increasing customer restraint in the face of an impending recession in Germany. In addition, important customers purchased more than they needed last year in order to protect themselves from supply bottlenecks. In the current year, these customers are now gradually reducing their high inventory levels. Both influences led to a decline in orders at individual subsidiaries in the first half of 2023 compared to the strong prior-year period. Whether the situation will improve noticeably in the further course of this business year is not yet foreseeable.

Despite the high agility of GESCO subsidiaries and their ability to adapt quickly to changing conditions, as well as the positive effects from the efficiency programmes, some companies cannot escape these adverse market conditions. Therefore, the Executive Board continues to expect growth in Group sales for the full year 2023, but to a much lesser extent than in recent financial years. The communicated range of € 600 - 620 million for Group sales and the range of € 32.0 - 34.0 million for Group earnings remain valid, as an improvement in all key business indicators is planned for the second half of the year. As things stand today, the values will be in the lower range of the bandwidths due to declining prices and at the same time declining volumes.

The complete semi-annual report 2023 is available at www.gesco.de/en/investor-relations/financial-reports.

¹⁾ After minority interests²⁾ XETRA closing price as of the balance sheet date³⁾  Number as of the balance sheet date

About GESCO:

GESCO SE is an industrial group with market- and technology-leading companies in the capital goods industry with a focus on process, resource and healthcare and infrastructure technology. As a company listed in the Prime Standard, GESCO SE gives private and institutional investors access to a portfolio of hidden champions in the industrial SME sector.

Contact:
Peter Alex
Head of Investor Relations
Tel. +49 (0) 202 24820-18
Fax +49 (0) 202 24820-49
E-mail: ir@gesco.de
Internet: www.gesco.de