R. STAHL order situation recovers in 2021 - sales and earnings development impacted by Corona pandemic and supply bottlenecks

- 2021 sales increase by €1.6 million or 0.7% to €248.1 million

- EBITDA pre exceptionals declines slightly by €1.1 million to €17.9 million - margin decreases to 7.2%

- Net profit down €1.4 million to €-4.9 million

- Continued sound financial position with net debt of €18.3 million

- Order intake increases by 5.4% to €261.3 million - Order backlog at the end of the year at €72.2 million

- Outlook for 2022: Sales and EBITDA pre exceptionals expected to grow in a low double-digit percentage

Waldenburg, 13 April 2022 _ R. STAHL today publishes audited business figures for financial year 2021. As previously reported, sales increased by 0.7% (or €1.6 million) to €248.1 million and were thus within the adjusted forecast corridor. The recovery emerging over the course of the year is particularly noticeable in terms of order intake and order backlog, with order intake up by 5.4% year-on-year to €261.3 million and order backlog of €72.2 million was 11.8% above the prior-year figure at the end of the year. Continued strict cost and margin control only partially offset a decline in earnings figures due to the ongoing impact of the Corona pandemic. As a result, EBITDA pre exceptionals was down 5.6% year-on-year to €17.9 million, while net income fell to €-4.9 million from €-3.5 million in the previous year.

"2021 was once again strongly impacted by the Corona pandemic; hopes for a decline in the incidence of infection and thus a revival of the global economy, boosted R. STAHL's order and sales situation, especially in the first half of the year. In the second half of the year, business was overshadowed by supply bottlenecks and, as a result, rising raw material prices. Delays in transport and acceptance of goods on the customer side also had an increasingly noticeable impact. The strategy we have consistently pursued in recent years and the strict cost control it entails are strengthening our resilience and mitigating the impact on the earnings side," says Dr. Mathias Hallmann, CEO of R. STAHL.
 

Sales development 2021

In the course of the year, the order situation was predominantly characterized by replacement and maintenance requirements. A positive effect on sales development, especially from the second quarter onwards, was the optimism that we had found the means to combat the pandemic. As a result, there was a noticeable increase in investment activity and, in particular, a revival of major projects. There were, however, distinct regional differences. In Germany, where R. STAHL traditionally benefits from a good market position in the chemical and pharmaceutical industries, sales increased by 7.2% to €67.1 million over the year as a whole. The Asia/Pacific region also closed out the year with a sales increase of 5.2%. In regions with a high share in the oil and gas industry, such as the Americas (-6.4%) or the Central Region (-3.5%) with a large share from Northern Europe, however, R. STAHL recorded declines in sales. On the one hand, this reflects the continuing high degree of uncertainty and thus the reluctance of the fossil energy industries to invest. On the other hand, the chemical and pharmaceutical industries are only slightly impacted by the Corona pandemic.

The Group's order intake increased by 5.4% over the year as a whole to €261.3 million. The fourth quarter in particular stood out with an increase of 29.3% over the prior-year quarter.

Development of the financial position and performance 2021

The impact of the stable but weak sales performance over the course of the year on the financial position and performance was held in check by cost adjustments.

Declining other operating income and expenses of €1.7 million as a result of lower service and consulting fees and reduced exchange rate losses had a positive impact on earnings. An unchanged strong cost of materials ratio of 33.8% (2020: 33.7%) in relation to total performance and stable personnel expenses of €116.2 million (2020: €115.6 million) led to a moderate overall decline in EBITDA pre exceptionals to €17.9 million (2020: €19.0 million). Net profit decreased by €1.4 million to €-4.9 million (2020: €-3.5 million) and earnings per share to €-0.76 (2020: €-0.54). Alongside net income, higher investments, particularly in development projects and the long-term investment of cash and cash equivalents, resulted in negative free cash flow of €-6.3 million (2020: €5.7 million). Consequently, net debt (excluding lease liabilities) as of 31 December 2021 increased to €18.3 million (2020: €5.8 million). In contrast to the negative consolidated net income, the equity ratio as of 31 December 2021 increased to 20.2% (31 December 2020: 18.8%) due to a higher interest rate for the measurement of pension obligations.

Outlook for financial year 2022

Buoyed by strong order intake in the fourth quarter of 2021 across all regions and industries, especially in terms of demand for advanced LED and automation solutions, we expect sales growth in the low double-digit range in 2022. The delivery of orders and thus the development of
sales will depend to a large extent on the availability of electronic components. We expect EBITDA pre exceptionals to also increase in the low double-digit percentage range. Strict cost control and margin protection will help to limit procurement risks. For 2022, we anticipate a slightly negative free cash flow and slightly higher net debt due to increasing investments in research & development and property, plant and equipment. There is currently considerable uncertainty regarding the recoverability of our 25% shareholding in ZAVOD Goreltex, Russia, which will likely have to be partially written off at the quarterly reporting date of 31 March 2022. As a consequence, this could lead to negative consolidated earnings in the mid to high single-digit million range.

Key figures of R. STAHL Group for FY 2021 pursuant to IFRS

¹⁾ Exceptionals: restructuring charges, unscheduled depreciation and amortization, charges for designing and implementing IT projects, M&A costs as well as profit and loss from the disposal of assets no longer required for business operations
²⁾ Payments for investments in intangible assets and property, plant & equipment
³⁾ excl. pension provisions and without lease liabilities
⁴⁾ excl. apprentices

Percentages and figures in may include rounding differences. The signs used to indicate rates of changes are based on mathematical aspects. Rates of changes > +100% are shown as >+100%, rates of change <-100% as "n.a." (not applicable).

Note
The Annual Report 2021 as well as the magazine for the Annual Report 2021 are available for download under the following link: https://r-stahl.com/en/global/corporate/investor-relations/ir-news-and-publications/financial-reports.

Investors' and analysts' conference call of R. STAHL AG for FY 2021

Chief Executive Officer of R. STAHL AG, Dr. Mathias Hallmann, will explain the results of FY 2021 and will present an outlook for the current year

today at 10:00 CET.

Afterwards he will be available for questions. The conference call will be held in English language.

Please dial one of the following numbers to join the call and provide the PIN as well as your full name and company when prompted:

DE: +49 89 2030 35529
UK: +44 (0)330 165 4006
US: +1 323 994 2131

PIN: 3094855

Along with the conference call, we will provide an online presentation via the internet. Please log on as a participant on the following website (no password required):
https://www.webcast-eqs.com/rstahl20220413/no-audio

A replay of the audio webcast will be available shortly after the conference call has ended on the company's website under the following link:
https://r-stahl.com/en/global/corporate/investor-relations/ir-news-and-publications/events-and-presentations

Financial calendar 2022

12 May Interim Report Q1 2022
13 July 29th Annual General Meeting
11 August Interim Report H1 2022
10 November Interim Report Q3 2022

About R. STAHL - www.r-stahl.com
R. STAHL is the world's leading supplier of electrical and electronic products and systems for explosion protection. These products and systems prevent explosions in hazardous areas and contribute to the safety of people, machines and the environment. The portfolio ranges from products used in switching/distributing, installing, operating/monitoring, lighting and signalling/alarming up to automation. Typical customers are the chemical and pharmaceutical industry, the oil & gas industry and the food industry as well as the shipbuilding industry in particular LNG carriers. In 2021 global sales amounting to around €248 million were generated by 1,672 employees. The shares of R. STAHL AG are traded on the Regulated Market/Prime Standard of Deutsche Boerse (ISIN DE000A1PHBB5).

Forward-looking statements
This release contains forward-looking statements based on assumptions and estimates of R. STAHL's management. Although we assume that the expectations of these forward-looking statements are realistic, we cannot guarantee that these expectations will prove to be correct. The assumptions may involve risks and uncertainties that could cause the actual results to differ materially from the forward-looking statements. Factors that may cause such discrepancies include: changes in the macroeconomic and business environment, exchange rate and interest rate fluctuations, the roll-out of competing products, a lack of acceptance of new products or services, and changes in business strategy. R. STAHL does not plan to update these forward-looking statements nor does it accept any obligation to do so.