SBF AG increases revenues by around 50 % in the first half of 2021

• Revenues increase significantly to 15.2 million euros
• Order backlog reaches new high of more than 37 million euros
• Supply chain bottlenecks and COVID 19 pandemic slow down operational development
• Significant increase in revenues and earnings expected in the coming years

Leipzig, August 19, 2021 - SBF AG (ISIN: DE000A2AAE22; WKN A2AAE2, "SBF"), a listed supplier of LED lighting systems for rolling stock and industry, successfully continues its growth course in a challenging market environment. According to preliminary figures for the first half of 2021, revenues increased significantly. In addition, the order backlog grew strongly. Thus, SBF expects continued growth in the coming years.

SBF generated consolidated revenues of EUR 15.2 million in the first half of the year (H1 2020: EUR 10.0 million). The significant increase in revenue is particularly characterized by the first-time consolidation of Lunux Lighting GmbH in the new "Industrial Lighting" business area. The new business area contributed EUR 4.0 million to consolidated revenues in the first half of the year. In addition, revenues in the "Rolling Stock" business area (SBF Spezialleuchten GmbH) rose organically to EUR 11.2 million (H1 2020: EUR 10.0 million) due to strong demand.

Rudolf Witt, Member of the Management Board of SBF AG comments: "The demand for modern, energy-saving LED lighting systems remains persistently high. In the first half of the year, we grew significantly both organically and through a successful acquisition. However, temporary material bottlenecks in particular slowed down our dynamic performance. Our full order book gives us momentum for sustainable and profitable growth in the coming years."

The "Rolling Stock" business area reported EBITDA of EUR 2.8 million in the first half of 2021, with an EBITDA margin of 25.1%. This corresponds to a slight year-on-year decline in earnings due to the investments made for the future - in particular for increasing personnel and inventories to cope with the good order situation. Earnings were also impacted by higher material prices and the costs of the capital increase carried out in June.

The "Industrial Lighting" business area was still impacted in the first half of 2021 by the COVID 19 pandemic and its effects on reduced personnel capacities due to quarantine, as well as by supply bottlenecks, particularly for electronic components and aluminum products. The production plant in Budweis, Czech Republic, was therefore at times only able to produce at greatly reduced capacity despite high demand. In the first half of the year, SBF set up a new plant for LED lighting systems in Leipzig. The ramp-up phase began in March 2021, and production will soon be transferred to regular operation. SBF is thus significantly expanding production capacity to meet the high demand expected in the medium term.

On the procurement side, the first half of 2021 was characterized by a global shortage of semi-finished products and raw materials. The low supply of basic components led to production bottlenecks at SBF manufacturing sites, particularly in the "Industrial Lighting" business area. As a result, the high customer demand could not be fully met in the first half of the year. Following the successful acquisition of Lunux Lighting in fall 2020, SBF is also currently optimizing its purchasing processes in order to optimally counter future bottlenecks in the supply of materials. With comparatively long order lead times, the "Rolling Stock" business area was less affected by bottlenecks in the supply chain. In the case of new orders, supply chain bottlenecks have a much greater impact in the form of delayed start-ups and higher costs.

Outlook: Significant increase in revenues and earnings in the coming years
The order backlog developed encouragingly. As of June 30, 2021, the order backlog of the two business areas totaled a new high of EUR 37.2 million through 2025, significantly higher than the prior-year figure of EUR 31 million. A large part of the order backlog falls into the years 2021 and 2022.

Based on the preliminary half-year figures, SBF expects sales of more than EUR 33 million for the fiscal year 2021. The consolidated result will be burdened by the temporary charges in the new business field "Industrial Lighting". Nevertheless, SBF is confident to achieve the communicated forecast for the full year 2021.

The medium-term outlook remains very positive for SBF. The risk of material shortages and COVID-19 impacts is present and will affect 2021 and 2022. There are currently no indications for plant closures. Thus, SBF expects a significant increase in revenues and earnings in the coming years.

About SBF Group:
SBF is a listed supplier of LED lighting systems for rolling stock and industry. With its focus on energy-efficient LED lighting, SBF is benefiting from the megatrends of climate protection and urbanization and expects double-digit growth rates in the coming years.

In the "Rolling Stock" business area, SBF is a tier 1 supplier of complex ceiling and lighting systems for the world's leading rolling stock manufacturers. Strong technological competence, high vertical integration and customized customer solutions are the basis for a leading market position. In the "Industrial Lighting" business area, SBF offers modern and smart LED systems for efficient lighting of roads, railroad stations and industrial plants.

For more information, visit https://www.sbf-ag.com.

Company contact:
SBF AG
Management Board
Zaucheweg 4
04316 Leipzig
Germany
Phone: +49 (0)341 65235 894
Mail: info@sbf-ag.com

Press contact:
Kirchhoff Consult AG
Alexander Neblung
Borselstraße 20
22765 Hamburg
Germany
Phone: +49 (0)40 60 91 86 70
Mail: sbf@kirchhoff.de