SIMONA 2023: Strong profitability - Marked decline in sales volume and
revenue

EQS-News: SIMONA Aktiengesellschaft / Key word(s): Annual Report/Quarterly /
Interim Statement
SIMONA 2023: Strong profitability - Marked decline in sales volume and
revenue

24.04.2024 / 15:57 CET/CEST
The issuer is solely responsible for the content of this announcement.

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EBIT close to prior-year record - Group revenue down 16% on the back of
sluggish global economy - Muted start to 2024

Kirn, 24 April 2024. In what proved to be a dynamic year, the SIMONA Group
recorded solid earnings against the backdrop of difficult global economic
conditions. Group revenue fell by 15.7 per cent to EUR600.0 million amid weak
demand. However, at EUR52.9 million, earnings before interest and taxes (EBIT)
were only just below the record level posted in the previous year (EUR54.1
million). The EBIT margin rose to 8.8 per cent (previous year: 7.6 per
cent). SIMONA's endeavours in the first three months of 2024 fell short of
the strong performance seen in the same quarter of the previous year.
Despite this, the Group's outlook for 2024 as a whole remains positive.

Revenue by region
At EUR600.0 million, SIMONA fell just short of its revenue guidance of
EUR610-630 million presented in the first-half report. An anaemic global
economy left its mark on sales volumes and revenues in all regions served by
the Group. In the EMEA region, the economic downturn affected the majority
of markets, prompting an above-average decline in revenue of 19.2 per cent
to EUR369.3 million (previous year: EUR456.9 million). In the Americas, SIMONA
was able to exploit the global surge in travel to boost its aircraft
interiors business, while sales in the industrial, construction and leisure
sectors suffered. Overall, revenue in the Americas fell by 13.4 per cent to
EUR179.3 million (previous year: EUR207.1 million). The Asia-Pacific region
recorded growth in revenue driven by a strong performance in China and
India. Revenue from sales in this region rose by 6.9 per cent from EUR48.1
million to EUR51.4 million.

Revenue by business line
Almost all business lines saw a downturn in revenue in 2023, with the
exception of the Mobility business line. It grew by 10.3 per cent to EUR77.9
million (previous year: EUR70.6 million) thanks to greater buoyancy within the
aviation business and the first large-scale orders relating to train
interiors and battery enclosures for electric buses, which are new markets
for SIMONA. The Industry business line was impacted by a sluggish
performance of the global chemicals business, with growth limited to the
Semicon market segment. In total, the Industry business line generated
revenue of EUR 227.5 million (previous year: EUR266.0 million), which
corresponds to a year-on-year decline in revenue of 14.5 per cent. The
Infrastructure business line, whose core market is pipeline rehabilitation
and cable protection in the EMEA region, experienced a lack of project
business due to restrained public-sector spending. Revenue in the
Infrastructure business line fell by 15.8 per cent to EUR103.0 million
(previous year: EUR122.3 million). The downturn within the Advertising &
Building business line was attributable to waning activity in the
construction sector, with revenue totalling EUR87.8 million (previous year:
EUR111.3 million). This corresponds to a decline of 21.2 per cent. "Others"
encompasses SIMONA's trading and aquaculture business, among other things.
Having lost momentum in the months leading up to the end of 2023 due to the
proposal of a special tax to be levied in Norway, the market for equipment
used in fish farms is now picking up speed again. Overall, revenue generated
in "Others totalled EUR103.9 million (previous year: EUR141.8 million).

Sustainability
SIMONA took a determined approach to implementing its sustainability
strategy. This included the launch of a sustainable product line featuring
bio-based, biocircular or recycled raw materials under the "EcoPlastIQ"
brand. SIMONA's "Commitment" status relating to the Science-Based Targets
initiative underpins the Group's ambitions for reducing CO2 emissions. By
sourcing wind power, the plastics processing company will be able to cover
up to 50 per cent of its electricity requirements at its German sites as
from 2025.

The SIMONA Group is very satisfied with its earnings performance in the
financial year just ended. In nominal terms, EBIT fell just slightly by 2.1
per cent from EUR54.1 million to EUR52.9 million. The EBIT margin stood at 8.8
per cent, which is above the previous year's figure (7.6 per cent) and above
the Group's guidance (6-8 per cent). Against the backdrop of a significant
decline in revenue, the Group's solid earnings performance was driven by an
improved cost-of-materials ratio and lower variable expenses. Thus, the
dividend proposal to be submitted to the Annual General Meeting remains
unchanged year on year at EUR1.85 per share.

The headcount totalled 1,757 at the end of the year (previous year: 1,734).
Staffing levels were up slightly in the Asia-Pacific region due to the
expansion of production, while they trended downwards in EMEA.

SIMONA anticipates that Group revenue for the 2024 financial year will be
between EUR620 and 640 million, while the EBIT margin is expected to be
between 6 and 8 per cent and the EBITDA margin between 10 and 12 per cent.
The revenue forecast takes into account projected growth in sales volumes in
conjunction with price declines due to persistently weak demand,
particularly in Europe's industrial sector.

Despite a recovery in order intake - particularly in EMEA - the SIMONA Group
had to contend with a further decline in revenue and earnings in the first
quarter of 2024. This was attributable to a change in the product mix, lower
sales prices and pressure on margins. Revenue declined by 11.6 per cent to
EUR145.9 million (previous year: EUR165.0 million). EBIT fell by 28.6 per cent
to EUR9.4 million (previous year: EUR13.2 million). The EBIT margin stood at 6.4
per cent, compared to 8.0 per cent in the same period of the previous year.

"Overall, 2023 proved to be another particularly dynamic year in which,
encouragingly, we were able to build on the successes of previous annual
periods. We managed to keep sales prices stable over the course of the year.
While this contributed to healthy profitability, it had an adverse effect on
overall volume and therefore also on revenue. We succeeded in achieving our
strategic goals. When it comes to sustainability, we have established
ourselves as a global thought leader within our industry. By expanding our
plant in China, we have almost doubled our production capacity and extended
our portfolio as a system provider for customers within the industrial
sector. Our strategic approach centred around diversification and a clear
focus on applications is underscored by the solid performance displayed by
our most recent acquirees, SIMONA PEAK Pipe System in the UK and SIMONA
PLASTECH in Türkiye," said Matthias Schönberg, CEO of SIMONA.


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24.04.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS
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   Language:       English
   Company:        SIMONA Aktiengesellschaft
                   Teichweg 16
                   55606 Kirn an der Nahe
                   Germany
   Phone:          06752-14-997
   Fax:            06752-14-738
   E-mail:         eric.schoenel@simona-group.com
   Internet:       www.simona.de
   ISIN:           DE000A3E5CP0
   WKN:            A3E5CP
   Listed:         Regulated Market in Frankfurt (General Standard);
                   Regulated Unofficial Market in Berlin, Munich,
                   Stuttgart
   EQS News ID:    1888569

End of News EQS News Service
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1888569 24.04.2024 CET/CEST