Schaltbau Holding AG remains on course for profitable growth

"The focus of our Strategy 2026 is very clearly on profitable growth," said Dr Jürgen Brandes, CEO of Schaltbau Holding AG. "At Bode, profitability improved substantially, despite reporting lower revenue. The high-margin service business grew by 25% and the expansion of our business with DC components and applications in new, high-growth markets such as New Energy and e-Mobility is becoming increasingly dynamic."

Core rail market - moderate revenue with greatly improved profitability

With revenue of EUR 52.8 million (9M 2020: EUR 53.9 million), results for the Pintsch segment (rail infrastructure) were not far short of those recorded one year earlier, despite a number of customer-related delays in the awarding of projects. At the end of the nine-month period, EBIT totalled EUR 1.1 million (9M 2020: EUR 3.8 million) and the EBIT margin came in at 2.1% (9M 2020: 7.1%), in line with expectations. In addition, the first nine months of the fiscal year 2020 were positively impacted by one-off effects.

Order intake grew by 10% year on year to EUR 63.3 million (9M 2020: EUR 57.6 million), primarily driven by brisk demand for level crossing systems. Pintsch benefited in particular from the current "Digital Rail for Germany" investment programme. The Schaltbau Group's "Zwieseler Spinne" pilot project, which involves the installation of digital interlocking technology on some 50 km of railway network, continues to move forward on schedule.

Due to the typical seasonality with above-average revenue in the final three-month period and the current high level of order intake, Schaltbau expects the Pintsch segment to perform strongly in the fourth quarter.

In the Bode segment (rolling stock), revenue totalled EUR 180.3 million (9M 2020: EUR 191.6 million) and was therefore almost 6% down on the previous year's nine-month period due to a number of market-related project delays and material bottlenecks. EBIT, however, tripled to EUR 6.7 million (9M 2020: EUR 2.1 million) during the same period. The EBIT margin thus improved by 2.6 percentage points, coming in at 3.7% (9M 2020: 1.1%). The sharp increase in profitability is above all attributable to the strong 25% growth in the high-margin after sales business, productivity gains in production and logistics, and the cost savings achieved with regards to the overhead. At the end of the third quarter, order intake was cumulatively some 21% below the same period of the previous year, mainly due to project shifts and customer-related delays in the awarding of projects. Here, too, Schaltbau expects to see catch-up effects in the fourth quarter 2021.

DC Power: High pace of growth continues on New Energy / New Industry and e-Mobility markets

The SBRS segment benefited from brisk demand for fast-charging solutions, especially for e-buses, in the first nine months of the current fiscal year. Revenue in the e-Mobility Charging line of business grew strongly by 83%, while order intake in this field increased by 24%. Furthermore, a large-scale refurbishment project helped drive up revenue by 74.9% to EUR 36.4 million (9M 2020: EUR 20.8 million). EBIT rose by 6.3% to EUR 2.3 million (9M 2020: EUR 2.2 million); the EBIT margin, however, dropped to 6.4% (9M 2020: 10.3%) due to the high percentage of revenue earned from the large-scale project. Without the large-scale project, the EBIT margin would have been at the same level as one year earlier.

In the Schaltbau segment, supply bottlenecks for primary products held down the high pace of growth, evident from the level of order intake, which grew by 18.3% to EUR 123.5 million (9M 2020: EUR 104.4 million). Revenue increased by 6.8% to EUR 111.7 million (9M 2020: EUR 104.6 million). EBIT totalled EUR 17.9 million (9M 2020: EUR 19.0 million), while at 15.9% (9M 2020: 18.0%) the EBIT margin remained high, despite a sharp increase in material and transport costs due to inflation. Furthermore, one-time effects in the same period of the previous year had a positive impact. Growth in the new markets was particularly impressive. Revenue recorded for the New Energy / New Industry markets increased by 38% and order intake rose by as much as 48%. In addition, Schaltbau was nominated as supplier to a second e-automotive manufacturer and reports a strong rise in the number of sample deliveries in the e-Mobility Automotive market. The construction of the NExT Factory, which Schaltbau intends to leverage to significantly expand its production capacities as of autumn 2022, is progressing on schedule.

Outlook confirmed

Despite the increased risks for delivery bottlenecks in the material supply chain and the expected transaction costs from the takeover of Schaltbau Holding AG by Voltage BidCo GmbH (Carlyle), Schaltbau Holding confirms its outlook of order intake between EUR 550 and EUR 580 million, revenue between EUR 520 and EUR 540 million and an EBIT margin of approximately 5%.

"As of 30 September 2021, we have significantly improved our key financial indicators compared to the same period one year earlier. Our equity ratio stands at 37.6% and the debt-equity ratio has fallen to 1.1. We are financing major investments such as the construction of the NeXT Factory primarily out of operating cash flow," explained Steffen Munz, CFO of Schaltbau Holding AG. "Together with the growth financing pledged by Carlyle, we are well equipped to implement our Strategy 2026 according to plan and to continue driving profitable growth."

The complete quarterly statement of Schaltbau Holding AG as of 30 September 2021 is available on the website www.schaltbaugroup.com in the Investor Relations section.

Carlyle currently holds around 78% of the shares - delisting announced

After completion of the voluntary public takeover offer, Voltage BidCo GmbH (Carlyle) holds around 78% of the Company's outstanding shares. The transaction was completed with the transfer of the tendered shares on 25 October 2021 after all conditions had been met. Moreover, Voltage BidCo GmbH had already announced the publication of a delisting offer on 8 October 2021. After publication of the offer, shareholders will have another four weeks to tender their shares at the price of EUR 53.50 before the Company is expected to be delisted at the end of 2021 or the beginning of 2022.

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 cars and commercial vehicles. As one of the few specialists for smart DC-based energy concepts, the Schaltbau Group is also a driver of innovation in 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
T +49 89 93005-209
investor@schaltbau.de