Accelleron reports strong financial performance and lays new foundation for
future prospects

Accelleron Industries AG / Key word(s): Annual Results
Accelleron reports strong financial performance and lays new foundation for
future prospects

27-March-2024 / 06:30 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this announcement.

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AD HOC ANNOUNCEMENT PURSUANT TO ART. 53 LR

Financial results 2023

March 27, 2024

Accelleron reports strong financial performance and lays new foundation for
future prospects

* Successful first full financial year as an independent company

* Standalone process concluded fully according to plan

  * OMT acquisition provides access to fast-developing fuel injection
    market, key for decarbonization

* Revenues at USD 915 million, growing 17.2% (15.5% organic)

* Operational EBITA increases by 16.3% to USD 223 million

* Operational EBITA margin at 24.4%

* Free cash flow conversion significantly improved year-on-year to 99.2%

Continued strong momentum on revenues

Accelleron, a global leader in heavy-duty turbocharging, reports a very
successful 2023 financial year with continued strong momentum: in its first
full year as an independent company, revenues achieved a year-on-year growth
of 17.2% (15.5% organic), reaching USD 915 million.

Revenue growth was supported by a growing demand in merchant marine for
Accelleron's products and services as well as a strong pipeline of
shipbuilding orders driving increased demand for dual-fuel installations.

The energy sector also developed positively, with strong demand for
Accelleron products and services, particularly from gas compression plants
in the US. Demand for Accelleron's products and services also increased in
high-speed power applications, while the service business grew in
medium-speed power applications, without recovery in the corresponding
product business.

Strong operational EBITA achieved against challenges from standalone setup

Operational EBITA grew strongly by 16.3% to reach USD 223 million. The
attractive operational EBITA margin of 24.4% (2022: 24.6%) was achieved in a
challenging inflationary environment and despite supply chain challenges and
the significant full-year impact of additional expenses due to the set-up of
standalone capabilities. Continued cost inflation in materials and labor was
largely offset by price increases.

The build-up of independent functions and systems resulted in one-time costs
of USD 82 million (USD 75.0 million excluding OMT), which was well in line
with guidance and had a significant impact on net income, which was USD
110.0 million or 15.3% below the prior year. Thanks to strong cash
collections and stabilization of inventory levels, Accelleron's highly
cash-generative business model was reflected in a high free cash flow
conversion of 99.2%. Free cash flow generation was USD 109.1 million in
2023, up from USD 99.3 million in the previous year despite strong growth,
higher one-time costs and supply-chain challenges.

High Speed segment

Revenues in the High Speed segment rose by USD 36.1 million, or 16.9%
(+17.8% organically), to USD 249.9 million compared to the previous year.
The segment benefited from a further strengthening demand related to the
gas-compression business in the United States and price increases.

Operational EBITA in the High Speed segment increased by USD 18.3 million,
or 44.6%, to USD 59.3 million compared to the previous year. The increase
was driven by strong operating leverage, pricing measures and a
significantly lower level of warranty costs. These effects more than offset
the additional expenses arising from the standalone setup and cost
inflation. Consequently, the operational EBITA margin increased by 4.5
percentage points to 23.7% in 2023.

Medium & Low Speed segment

Revenues in the Medium & Low Speed segment increased by USD 98.2 million, or
17.3% (+14.6% organic), to USD 664.9 million compared to the previous year.
This increase mainly results from a further strengthening of the demand in
merchant marine, as well as price increases compared to the previous year.
USD 23.5 million were contributed through the acquisition of OMT.

Operational EBITA in the Medium & Low Speed segment increased by USD 12.9
million, or 8.5%, to USD 163.8 million compared to the previous year. The
operational EBITA margin decreased by 2.0 percentage points to 24.6% in 2023
due to additional expenses arising from the standalone setup, inefficiencies
resulting from supply chain challenges and the ongoing cost inflation which
was largely offset by price increases. The acquisition of OMT did not have
any material impact on the profitability of the segment.

OMT acquisition supports growth and innovation strategy, key for
decarbonization

The acquisition of OMT, the market leader in two-stroke fuel injection, was
a major milestone for Accelleron and another highlight in the Company's
first year of independence. This transaction reinforces Accelleron's
position as the partner of choice for OEM engine builders and leading
innovator in the development of technologies for alternative fuel
applications (such as hydrogen, methanol and ammonia) for large marine
engines and other heavy-duty applications. It also expands Accelleron's
technology and services offering, enabling the Company to deliver advanced
solutions for decarbonization and adaptation to new fuels, which will give
an additional boost to the fuel injection market.

Within the 2023 financial year, Accelleron also expanded service and digital
offerings to ensure efficient engine operation and to protect the asset
value of vessels, by providing solutions that are helping to improve IMO
carbon intensity ratings (in short CII) for ships. The focus on emerging
business and technology opportunities, particularly in digital solutions,
has led to valuable collaborations and investments that will fuel
Accelleron's growth and innovation pipeline.

Next-generation turbocharger introduced

Accelleron continued to invest in a strong innovation pipeline with USD 57.4
million dedicated to research and development in 2023. In June, Accelleron
unveiled the next generation of turbochargers for two-stroke main propulsion
engines, the ACCX300-L series. The platform-based concept provides improved
efficiency over the total load range and easy service. It is complemented by
Accelleron's Turbo Insights digital technology, which sets a new benchmark
for turbocharging that will offer ship operators flexibility in responding
to uncertainty around the fuels they will use and the way they will operate
their vessels in the future.

The Company's extended technology portfolio, improved service offerings and
progress in digitalization is expected to have a long-lasting positive
effect on its market penetration. In 2023, Accelleron continued to expand
the coverage of its installed base with service agreements.

Sustainability

Accelleron is committed to being a place where people work together to
strengthen social and environmental impacts and where sustainability
principles play an integral part in the business. In 2023, Accelleron
introduced a company purpose "Accelerating sustainability in marine and
energy industries", placing sustainability at the core of its long-term
direction. In 2023, Accelleron committed to the Science-Based-Targets
initiative (SBTi) and undertook a number of important initiatives to pave
the way towards reaching its 2030 sustainability targets. Accelleron reduced
the carbon footprint of the Company's operations by 8% (scope 1 and 2). In
addition, Accelleron commissioned a photovoltaic system at its headquarters
in Baden, Switzerland, which will produce an estimated 1 GWh per year,
covering 10% of the Company's electricity demand in Baden. Other sites
around the world are in the process of shifting to a higher share of
renewable energy supply. To drive progress in sustainability at every level,
as from 2024 executive incentives are linked to carbon emissions targets,
including some elements of scope 3. Every employee eligible for the global
short-term incentive plan has at least one yearly sustainability target. For
the first time, the Company will publish an annual report including both
financial and sustainability results.

Management confident on outlook, expecting to stay in line with mid-term
guidance in 2024

The Company expects to reach a revenue growth of between 4% and 6% (OMT
contributing with about four percentage points) for the full year. At the
same time, the Company is confident that it will maintain its profitability
(operational EBITA margin) at around 24.5% amid macroeconomic and
geopolitical uncertainties. Due to the continuously improving supply chain,
the free cash flow conversion is expected to be in the range of 90% to 100%
for the full year.

"We made remarkable progress in the 2023 financial year, completing the
transition to a standalone company and further improving our resilience and
operational robustness," says Daniel Bischofberger, Chief Executive Officer
of Accelleron. "This all would not have been possible without our fantastic
and passionate colleagues around the globe. They have not just walked the
extra mile - they have run the extra marathon. With the acquisition of OMT
and focused innovation efforts, we have strengthened our market position and
are increasingly contributing to the decarbonization of the marine and
energy industries. We are well positioned and confident that we will
continue gaining further market shares in our markets."

A dividend of CHF 0.85 per share will be proposed to the Annual General
Meeting on May 7, 2024 (+16.4%; previous year: CHF 0.73 per share).

The 2023 Full Year Annual Report and further information are available on
the website at
https://accelleron-industries.com/content/dam/accelleronind/documents/investors/accelleron-industries-annual-report-2023.pdf.

                            Twelve-month period
                            ended December 31,

(USD in millions) 2023 2022 Change in Organ- +/- % ic1 Revenues 914.9 780.5 17.2% 15.5%

  Gross profit                            385.9    352.8         9.4%
  as % of revenues                        42.2%    45.2%        (3.0)
                                                                 ppts
  Income from Operations                  141.3    157.0      (10.0%)
  Operational EBITA1                      223.1    191.8        16.3%
  as % of revenues                        24.4%    24.6%        (0.2)
                                                                 ppts
  Net income                              110.0    129.8      (15.3%)
  as % of revenues                        12.0%    16.6%        (4.6)
                                                                 ppts

  Cash flow from                          145.2    133.4         8.8%
  operating activities
  Free cash flow1                         109.1     99.3         9.9%
  Free cash flow                          99.2%    76.5%    22.7 ppts
  conversion1
  Basic earnings per                       1.08     1.31      (23.0%)
  share (USD)
  Net leverage1                             1.0      0.6        40.0%

1 Certain alternative performance measures are used by the Company to
evaluate performance. Please refer to the "Supplemental information" section
of the Annual Report for a detailed description.

   Key dates
   2024
   March 27,     Publication of the Annual Report 2023 and Annual Media &
   2024          Investors Conference
   May 7,        Ordinary Annual General Meeting of Shareholders
   2024
   August 27,    Publication of the Half-Year Financial Report 2024 and
   2024          Investor & Analyst Webcast

Accelleron is a global leader in turbocharging technologies and optimization
solutions for 0.5 to 80+ MW engines, helping to provide sustainable,
efficient and reliable power to the marine, energy, rail and off-highway
sectors. Through its innovative product offerings and research leadership,
the Company accelerates the decarbonization of the industries it operates
in. Accelleron has an installed base of approximately 180,000 turbochargers
and a network of more than 100 service stations across 50 countries
worldwide ( www.accelleron-industries.com).

Media information

Images and other digital assets are available at
www.accelleron-industries.com

Accelleron shares
The registered shares of Accelleron Industries AG are listed on SIX Swiss
Exchange, Zurich under ticker symbol "ACLN" (ISIN: CH1169360919/Swiss
security number: 116936091).

Accelleron contacts:

Daniel Bischofberger
Chief Executive Officer
daniel.bischofberger@accelleron-industries.com

Adrian Grossenbacher
Chief Financial Officer
adrian.grossenbacher@accelleron-industries.com

Media contact:
Martin Regnet
Head of External Communications & Public Affairs
media@accelleron-industries.com
Phone: +41 79 627 63 88

Investor contact:
Michael Daiber
Vice President Strategy & Investor Relations
investors@accelleron-industries.com
Phone: +41 79 698 6085

Alternative performance measures:

In this press release, we use certain non-GAAP financial measures and
alternative performance measures that are not required by, or presented in
accordance with, US GAAP. Accelleron presents non-GAAP financial measures
and alternative performance measures because they are used by management in
monitoring the business and because Accelleron believes that these non-GAAP
financial measures and similar measures are frequently used by securities
analysts, investors and other interested parties in evaluating companies in
its industry. This provides better transparency and year-on-year
comparability. A list of the definitions of the non-GAAP financial measures
and alternative performance measures as used by Accelleron in general and in
this press release can be found on
https://accelleron-industries.com/investors/ performance-measures.

Disclaimer

This ad hoc announcement includes forward-looking information and
statements, including statements concerning the outlook for Accellerons
businesses. These statements are based on current expectations, estimates
and projections about the factors that may affect the Companys future
performance, including global economic conditions, and the economic
conditions of the regions and industries that are major markets for
Accelleron. There are numerous risks, uncertainties and other factors, many
of which are beyond Accellerons control, that could cause the Companys
actual results to differ materially from the forward-looking information and
statements made in this announcement and which could affect the Companys
ability to achieve its stated targets. Although Accelleron believes that its
expectations reflected in any such forward-looking statement are based upon
reasonable assumptions, it can give no assurance that those expectations
will be achieved.


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End of Inside Information

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   Language:       English
   Company:        Accelleron Industries AG
                   Bruggerstrasse 71a
                   5401 Baden
                   Switzerland
   E-mail:         info@accelleron-industries.com
   Internet:       https://accelleron-industries.com/
   ISIN:           CH1169360919
   Valor:          116936091
   Listed:         SIX Swiss Exchange
   EQS News ID:    1866887

End of Announcement EQS News Service
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1866887 27-March-2024 CET/CEST