InTiCa Systems SE: Interim Report for 9M 2023 published - Significant rise
in volatility and price pressure in recent months

EQS-News: InTiCa Systems SE / Key word(s): 9 Month figures
InTiCa Systems SE: Interim Report for 9M 2023 published - Significant rise
in volatility and price pressure in recent months

15.11.2023 / 07:45 CET/CEST
The issuer is solely responsible for the content of this announcement.

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InTiCa Systems SE: Interim Report for 9M 2023 published - Significant rise
in volatility and price pressure in recent months

Group sales amount to EUR 67.5 million (9M 2022: EUR 71.2 million)

Strong growth in the Industry & Infrastructure segment (+19.8%)

Margins under pressure, EBIT margin of 0.5% (9M 2022: 3.0%)

Orders on hand remain high at EUR 106 million (9M 2022: EUR 107 million)


Passau, November 15, 2023 - InTiCa Systems SE (Prime Standard, ISIN
DE0005874846, ticker IS7) today published the interim report for the first
nine months of 2023. In the main, the development registered in spring and
summer continued in the third quarter. Thanks to continued high demand in
the Industry & Infrastructure segment, the drop in sales was held in check
at Group level. In the Automotive segment, by contrast, the weakness of
German OEMs in the e-solutions area affected supply chains and thus InTiCa's
sales and margins.

"Overall, sales were in line with present market conditions at the end of
the first nine months despite the obstacles. Demand for some product groups
such as inverters and stator coils for mild-hybrid applications was higher
than had been planned, while we are clearly noticing the problems of OEMs in
demand for other products such as onboard chargers. German manufacturers in
particular are battling with massive competitive pressure from Asia. The
price pressure has increased significantly. As rising wages and interest
rates are also having an impact, the margin situation will not become any
easier in the short term. Growth and stability are promised, among other
things, by the new programs for charging infrastructure in the Industry &
Infrastructure segment. Initial orders have already been shipped. Summing
up, we find ourselves in a very challenging market phase characterized by
crises and technological transformation", comments Dr. Gregor Wasle, CEO of
InTiCa Systems SE the business development.


Earnings, asset and financial position

Group sales declined by 5.1% year-on-year to EUR 67.5 million in the first
nine months of 2023 (9M 2022: EUR 71.2 million). In the Automotive segment,
sales dropped 12.6% year-on-year to EUR 47.7 million (9M 2022: EUR 54.6
million) while sales in the Industry & Infrastructure segment increased
considerably, by 19.8%, to EUR 19.8 million (9M 2022: EUR 16.6 million).

At 62.4%, the ratio of material costs to total output in the reporting
period was slightly below the prior-year level (9M 2022: 63.2%). Alongside
optimization of production workflows, this was mainly due to a less
material-intensive product mix. By contrast, the personnel expense ratio
(including agency staff) increased significantly from 22.2% to 24.6% due to
wage rises.

EBITDA (earnings before interest, taxes, depreciation and amortization)
decreased to EUR 4.8 million (9M 2022: EUR 6.6 million), with the EBITDA
margin amounting to 7.2% (9M 2022: 9.3%). At EUR 0.3 million, EBIT (earnings
before interest and taxes) remained positive (9M 2022: EUR 2.1 million),
giving an EBIT margin of 0.5% (9M 2022: 3.0%). At segment level, Automotive
reported EBIT of minus EUR 0.7 million in the first nine months of 2023 (9M
2022: positive EBIT of EUR 1.8 million) and the Industry & Infrastructure
segment reported EBIT of EUR 1.0 million (9M 2022: EUR 0.3 million).

The financial result was minus EUR 1.0 million in the reporting period (9M
2022: minus EUR 0.4 million), with the increased use of overdraft facilities
and higher interest expenses both having an impact. Tax income of EUR 6
thousand was recorded in the reporting period (9M 2022: tax expense of EUR
0.5 million). Group net income therefore amounted to minus EUR 0.7 million
in the first nine months (9M 2022: positive net income of EUR 1.2 million).
Earnings per share were minus EUR 0.16 (9M 2022: EUR 0.28).

As a result of the negative interim result and the increase in receivables
and inventories as of the reporting date, the cash flow from operating
activities was negative in the first nine months of 2023. Due to continued
investment activity, this applies to an even greater extent for the overall
cash flow. The equity ratio slipped slightly in the reporting period but
remains at a solid level.

Outlook

The geopolitical uncertainty and the transformation of the industrial
landscape are bringing changes that InTiCa cannot escape. As a consequence,
considerably higher volatility of order offtake is visible again in both
segments. Customers often make changes at very short notice, so the quality
of planning by OEMs is no longer as stable as in the past. Although orders
on hand remained high at EUR 106 million at the end of the quarter
(September 30, 2022: EUR 107 million), despite ongoing intensive contact
there is a risk of further cancellations of order offtake by manufacturers
in the final quarter or postponement until 2024.

Since a realistic estimate of the level is not possible, it is necessary to
maintain high flexibility in terms of production personnel and the supply of
materials. Taking into account the associated additional liquidity and cost
burden as well as ongoing high uncertainty and knowledge of customers'
current offtake situation, the Board of Directors has therefore reviewed its
guidance for the full year 2023. So far, it was assumed that the Group would
report sales of between EUR 85.0 million and EUR 100.0 million and an EBIT
margin most likely at the lower end of the 2.5% to 3.5% range. Now the
anticipated sales range is put at between EUR 85 million and EUR 90 million
and the range for the expected EBIT margin has been revised to between -1.0%
and +0.5%.

On a medium-term view, however, InTiCa's viable product and technology
strategy remains promising. The project for a cross-platform chassis system
has been extended with a considerable increase in volumes. Moreover, in the
market for mild-hybrid stator coils, InTiCa has acquired substantial orders
this year. These will be ramped up in the coming years. In parallel with
this, intensive work is carried out on further projects in the areas of
power electronics and EMC filter technology. The installation and start-up
of the necessary production lines is proceeding on schedule in most cases.


The complete interim report for 9M 2023 is available for download from the
Investor Relations section of InTiCa Systems' website at
www.intica-systems.com.

InTiCa Systems SE

The Board of Directors

CONTACT Dr. Gregor Wasle | CEO

TEL +49 (0) 851 - 966 92 - 0

FAX +49 (0) 851 - 966 92 - 15

EMAIL investor.relations@intica-systems.com

About InTiCa Systems

InTiCa Systems is a European leader in the development, manufacture and
commercialization of inductive components, passive analogue switching
technology and mechatronic assemblies. It operates in the Automotive and
Industry & Infrastructure segments and has about 850 employees at its sites
in Passau (Germany), Prachatice (Czech Republic), Silao (Mexico) and Bila
Tserkva (Ukraine).

The Automotive segment focuses on innovative products that raise the comfort
and safety of cars, improve the performance of electric and hybrid vehicles
and reduce carbon emissions. InTiCa Systems' Industry & Infrastructure
segment develops and manufactures mechatronic assemblies for the solar
industry and other industrial applications.

Forward-looking statements and predictions

This press release contains statements and forecasts referring to the future
development of InTiCa Systems SE which are based on current assumptions and
estimates by the management that are made using information currently
available to them. If the underlying assumptions do not materialize, the
actual figures may differ substantially from such estimates. Future
developments and results are in fact dependent on a large number of factors;
they contain different risks and imponderables and are based on assumptions
that may not be accurate. We neither intend nor assume any obligation to
update forward-looking statements on an ongoing basis as these are based
exclusively on the circumstances prevailing on the date of publication.


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   Language:       English
   Company:        InTiCa Systems SE
                   Spitalhofstraße 94
                   94032 Passau
                   Germany
   Phone:          0851 / 96692 0
   Fax:            0851 / 96692 15
   E-mail:         investor.relations@intica-systems.com
   Internet:       www.intica-systems.com
   ISIN:           DE0005874846
   WKN:            587484
   Listed:         Regulated Market in Frankfurt (Prime Standard);
                   Regulated Unofficial Market in Berlin, Dusseldorf,
                   Hamburg, Munich, Stuttgart, Tradegate Exchange
   EQS News ID:    1773253

End of News EQS News Service
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1773253 15.11.2023 CET/CEST