STS Group

Nov 13, 2023

EBITDA more than doubled to 14.7 mEUR (9M/2022: 7.0 mEUR) EBITDA margin increases significantly to 7.0% (9M/2022: 4.1%) Figures presented underpin growth story – full-year targets specified accordingly Hagen, November 13, 2023 - STS Group AG (ISIN: DE000A1TNU68), a global systems supplier for the automotive industry listed on the General Standard of the Frankfurt Stock Exchange, today publishes its nine-month figures for 2023. Alberto Buniato, CEO of STS Group AG: "The pleasing business development of the first half of the year has continued in the third quarter of 2023, notwithstanding the geopolitical uncertainties. Our sites in Europe and Mexico continue to develop positively and have consolidated their growth in the reporting period. We are also benefiting from the strong market recovery in the important China business. We intend to use this momentum to leverage additional growth potential and further expand our market position. The opening of our first plant in the USA in spring is an important step in this direction, enabling us to make better use of existing market opportunities. We will start series production there in the course of the first half of 2024, thus powerfully driving the targeted expansion of our North American business." Sales revenue development In the period from January 1 to September 30, 2023, STS Group AG generated sales revenue of 210.2 mEUR, compared with 172.1 mEUR in the same period of the previous year. The continued strong growth of 22.2% was driven by all three segments. The STS Group benefited from a significant recovery in the European, Mexican and, in particular, Chinese truck markets. This was reflected in rising customer call-offs and an improvement in margins. In addition, the efficiency measures introduced last year led to increased profitability overall. Earnings development Accordingly, the earnings situation of STS Group AG also developed positively. The China business, in particular, made a significant contribution to the Group's positive overall result with further improvements in earnings. Earnings before interest, taxes, depreciation and amortization (EBITDA) more than doubled in the first nine months, rising by 7.7 mEUR to 14.7 mEUR, compared with 7.0 mEUR in the same period of the previous year. As a result, the STS Group's EBITDA margin of 7.0% was also significantly higher than in the same period of the previous year (4.1%). Forecast 2023 specified STS Group's business performance in the first nine months of 2023 continued to be very positive, thus emphatically underlining the growth prospects communicated in the Annual Report 2022. As expected, the Chinese commercial vehicle market in particular recorded a significant recovery, which is reflected in the current sales and earnings performance. Against this backdrop and in consideration of the existing geopolitical uncertainties, the Executive Board has specified its forecast for the year accordingly. Thus, STS Group is expected to generate sales revenue growth in the low double-digit percentage range (previously: slight sales growth) for the financial year 2023. EBITDA is still expected to increase significantly – the corresponding EBITDA margin is expected to be between 6.5% and 7.5%. Key figures in the first nine months of 2023 in mEUR