Schaltbau Holding AG: Half-year results 2021 underpin profitable growth path

"We are rigorously implementing the measures defined in our Strategy 2023 designed to boost financial performance. The benefits can already be seen in improved earnings for the first six-month period," said Dr Jürgen Brandes, CEO of Schaltbau Holding AG. "Good progress has been made, in particular the higher level of profitability at BODE, the growth of service business in our Rail core market and the expansion of our business into the new, fast-growing New Energy / New Industry and e-Mobility markets. We see our first nomination as a supplier for the e-commercial vehicles platform of a leading manufacturer as ample proof of the technological sophistication of our products."

Rail: Pintsch reports strong growth in order intake - Bode significantly improves profitability

While revenue generated in the Pintsch segment (Rail Infrastructure) remained flat at EUR 34.6 million (6M 2020: EUR 34.8 million) and subject to the usual seasonal fluctuations, segment order intake grew sharply. Driven mainly by demand for level crossing technology, at EUR 49.7 million, order intake was 18% up on the same period one year earlier (6M 2020: EUR 42.2 million). EBIT amounted to EUR 0.8 million (6M 2020: EUR 2.1 million), while the EBIT margin came in at 2.4% (6M 2020: 6.1%). One year earlier, the EBIT figure was positively impacted by one-time effects due to the completion of a project. The Group's large-scale "Zwieseler Spinne" project, which involves the installation of digital interlocking technology on approximately 50 km of railway network by the autumn 2023, continues to move ahead on schedule.

In the Bode segment (Rolling Stock), order intake totalled EUR 124.5 million (6M 2020: EUR 135.3 million) and revenue was just slightly below the previous year's figure at EUR 121.4 million (6M 2020: EUR 124.7 million). The main underlying reason is the phasing out of production for a bus manufacturer, whereas order intake and revenue for train boarding systems remained stable. Vigorous growth in the service business, which offers attractive margins, partially compensated for the lower revenue generated in the Bus and Automotive lines of business and, apart from increased productivity and leaner overheads, also had a highly positive impact on segment profitability. EBIT improved significantly to EUR 4.1 million (6M 2020: EUR 0.2 million), as a result of which the EBIT margin rose by 3.2 percentage points to 3.4% (6M 2020: 0.2%).

DC Power: SBRS growing with charging infrastructure solutions for e-buses - Schaltbau benefiting from strong demand in New Energy / New Industry sectors

In the SBRS segment, order intake increased by 10.8% year on year to EUR 23.1 million (6M 2020: EUR 20.9 million). Revenue jumped strongly by almost 77% to EUR 20.8 million (6M 2020: EUR 11.8 million). Both order intake and revenue benefited above all from the unbroken high demand for charging infrastructure in the E-Mobility (Charging) line of business - specifically for high-performance fast charging stations for e-buses. Segment EBIT amounted to EUR 1.3 million and was similar to the previous year's period (6M 2020: EUR 1.3 million), while the EBIT margin stood at 6.0% due to the one-off impact in the first quarter 2021 of writing off receivables relating to a legacy project (6M 2020: 10.5%).

The Schaltbau segment also profited considerably from the continued dynamic growth rate in the New Energy / New Industry markets. Order intake went up by 14% to EUR 82.2 million (6M 2020: EUR 72.1 million), largely on the back of higher demand mainly coming from the New Energy / New Industry lines of business, where order intake grew by 49% year on year. Revenue increased by 12.2% to EUR 76.4 million (6M 2020: EUR 68.1 million). Here, too, revenue generated with New Energy / New Industry business grew very strongly by 36%. EBIT totalled EUR 12.7 million, 6.7% up on the same period one year earlier (6M 2020: 11.9%). The EBIT margin remained high at 16.4% (6M 2020: 17.3%).

The construction of the NExT Factory, with which Schaltbau intends to substantially expand its production capacity, is progressing on schedule. Production at the new facility is due to begin in autumn 2022. An initial milestone has been reached in the field of e-Mobility Automotive with Schaltbau's nomination as supplier for the e-commercial vehicles platform of a leading manufacturer, with production set to begin in 2023.

Growth financing secured - balance sheet structure improved - outlook for 2021 confirmed

The Mandatory Convertible Bond issued in the first half of 2021 with a volume of EUR 60 million, which will principally be used to finance the construction of the NExT Factory as well as smaller acquisitions aimed at strengthening the Group's core Rail business, has also significantly bolstered the Schaltbau Group's balance sheet structure. At 30 June 2021, the equity ratio stood at 38.0% (31 December 2020: 22.0%). The financial leverage was reduced to 0.7 (31 December 2020: 1.9).

"The secured growth financing, significantly improved profitability, a strong operating cash flow and highly dynamic growth in the new markets of New Energy / New Industry are enabling us to continue treading the path of profitable growth. That is a sure sign that we are on the right track with the implementation of Strategy 2023," said Steffen Munz, CFO of Schaltbau Holding AG. "We reaffirm our outlook for the fiscal year 2021."

About the Schaltbau Group
Schaltbau Holding AG (ISIN: DE000A2NBTL2) is listed in the Prime Standard segment of the regulated market of Deutsche Börse AG in Frankfurt am Main. With annual Group revenue in the region of EUR 500 million and around 3,000 employees, Schaltbau is an internationally leading supplier of systems and components in the field of transportation technology and the capital goods industry. With Pintsch, Bode, Schaltbau and SBRS as their core brands, Schaltbau Group companies develop a wide range of high-quality technologies and customer-specific technological solutions for rail infrastructure, rolling stock, passenger and commercial vehicles. As one of the few specialists for smart DC energy concepts, the Schaltbau Group is also a driver of innovation for the fast-growing markets of tomorrow such as New Energy / New Industry and E-Mobility.
To find out more about the Schaltbau Group, go to: https://schaltbaugroup.com

Contact

Investor relations
Schaltbau Holding AG
Hollerithstraße 5
81829 Munich
Germany
T +49 89 93005-209
investor@schaltbau.de