STS Group AG publishes annual report 2023 - Forecast well met thanks to
positive development in all regions

EQS-News: STS Group AG / Key word(s): Annual Report/Annual Results
STS Group AG publishes annual report 2023 - Forecast well met thanks to
positive development in all regions

28.03.2024 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.

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STS Group AG publishes annual report 2023 - Forecast well met thanks to
positive development in all regions

* Sales revenue growth in all regions

* Asia and Europe as key growth drivers

* Sales revenue increased by 18.2% to 277.9 mEUR (2022: 235.1 mEUR)

* EBITDA more than doubled to 20.5 mEUR (2022: 9.6 mEUR)

* EBITDA margin increased to 7.4% (2022: 4.1%)

  * Forecast 2024: high single-digit sales revenue growth with a high
    single-digit EBITDA margin

Hagen, 28 March 2024 - STS Group AG (ISIN: DE000A1TNU68), a global systems
supplier to the automotive industry listed in the General Standard of the
Frankfurt Stock Exchange, today publishes its annual report and audited
consolidated figures for the financial year 2023. The results confirm that
the STS Group AG has well met its annual forecast for sales revenue, EBITDA
and EBITDA margin in the 2023 financial year.

Alberto Buniato, CEO of STS Group AG: "We are on the right track with the
STS Group. Our cost-cutting measures have paid off, and our excellently
positioned products have also enabled us to benefit from the strong market
recovery in the commercial vehicle sector in China, Europe and Mexico. This
is reflected in a very pleasing development in sales revenue and operating
profit. However, despite a solid EBITDA margin, we have not yet been able to
pivot to a positive bottom line. Looking ahead to 2024, business in Europe
will be more challenging due to economic headwinds, but we expect growth to
be fueled in particular by the start of series production at our new plant
in the USA."

Sales revenue development

STS Group AG generated consolidated sales revenue of 277.9 mEUR in the 2023
financial year, compared to 235.1 mEUR in the same period of the previous
year. The strong growth of 18.2% is in line with the annual forecast and was
driven by all three segments. The STS Group benefited in particular from a
significant recovery in the European and especially the Chinese truck
market. This was reflected in rising customer call-offs. Thus, the China
segment increased its sales revenue by 67.5% to 51.0 mEUR (2022: 30.4 mEUR),
also benefiting from the end of the strict zero-Covid policy in China, which
had regularly led to delivery delays or production stoppages in the past.
Sales revenue in the Plastics segment was up 12.9% to 203.1 mEUR (2022:
179.8 mEUR) which was mainly due to significant growth of both the European
activities and at the Mexican plant, the latter also benefitting from the
strong demand from the USA. The Materials segment also recorded a slight
growth in sales revenue of 6.2% to 38.5 mEUR (2022: 36.3 mEUR) mainly driven
by the increased demand for heavy commercial vehicles and SMC products.

Earnings development

The earnings situation of STS Group AG also developed positively. Price
increases on the procurement side, particularly for raw materials, which led
to a significantly higher cost of materials ratio, could only be partially
passed on to customers. However, the efficiency measures introduced in all
regions last year led to an overall increase in profitability and thus
contributed to the improvement in earnings in the financial year. The China
business in particular made a significant contribution to the Group's
positive development with a marked improvement in earnings. Also in Mexico,
the STS Group managed to further increase its profitability, which also had
a positive impact on the Plastics segment as a whole. Earnings before
interest, taxes, depreciation and amortization (EBITDA) more than doubled,
rising by 10.9 mEUR to 20.5 mEUR after 9.6 mEUR in the same period of the
previous year. Accordingly, STS Group's EBITDA margin of 7.4% was also
significantly higher than in the same period of the previous year (4.1%) and
thus reached the upper end of the forecast. As in 2022, there were no
special effects in the financial year 2023, so EBITDA was the same as
adjusted EBITDA. The bottom line was nevertheless negative, mainly due to a
significantly poorer financial result as a result of the rise in market
interest rates and higher income taxes.

Forecast 2024

For the 2024 financial year, the Executive Board is forecasting further
sales revenue growth in the high single-digit percentage range, particularly
due to the production start-up of the new plant in the USA. The EBITDA
margin for the financial year is forecast to be in the high single-digit
percentage range. No relevant extraordinary expenses are planned for the
financial year, thus EBITDA once again corresponds to adjusted EBITDA.

The Annual Report 2023 of STS Group AG will be available for download on
April 11, 2024 at https://www.sts.group/investor-relations/publications.

Key figures for the 2023 financial year

                      in mEUR          2023          2022  Change
                Sales revenue         277.9         235.1   18.2%
             Segment Plastics         203.1         179.9   12.9%
                Segment China          51.0          30.4   67.5%
            Segment Materials          38.5          36.3    6.2%
        Company/Consolidation         -14.7         -11.5  -28.0%
                       EBITDA          20.5           9.6  113.0%
              Adjusted EBITDA          20.5           9.6  113.0%
             Segment Plastics          14.9          12.8   16.0%
                Segment China           7.0          -0.9    n.a.
            Segment Materials           2.1           1.2   77.9%
        Company/Consolidation          -3.4          -3.5   -2.2%
    Adjusted EBITDA margin             7.4%          4.1%   3.3pp
                                 12/31/2023    12/31/2022
    Group equity                       46.6          49.5   -5.9%
    Group equity ratio                17.5%         23.4%  -5.9pp
    Cahs and cash equivalents          39.3          25.6   53.5%
    (freely available)
    Net financial debt                 29.3          15.0   95.3%
    Employees                         1,392         1,422   -2.1%

About STS Group:

STS Group AG, www.sts.group (ISIN: DE000A1TNU68), is a leading systems
supplier for the automotive industry. The group of companies employs 1,392
people worldwide and generated sales of EUR 277.9 million in the 2023
financial year. At its twelve plants and three development centres in
France, Germany, Mexico, China and, in future, the USA, STS Group ("STS")
produces and develops injection-moulded plastics and components made from
sheet moulding compounds (SMC), such as rigid and flexible vehicle and
aerodynamic trim, holistic interior systems, as well as lightweight and
battery components for electric vehicles. STS is a technological leader in
the production of plastic injection moulding and composite components. STS
has a large global footprint with plants on three continents. The customer
portfolio includes leading international manufacturers of commercial
vehicles, passenger cars and electric vehicles.

STS Group AG
Investor Relations
Kabeler Str. 4
58099 Hagen
ir@sts.group
www.sts.group

Press contact
CROSS ALLIANCE communication GmbH
Susan Hoffmeister
Phone: +49 89 125 09 0333
E-Mail: sh@crossalliance.de
www.crossalliance.de


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28.03.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS
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   Language:       English
   Company:        STS Group AG
                   Kabeler Str. 4
                   58099 Hagen
                   Germany
   E-mail:         ir@sts.group
   Internet:       https://sts.group
   ISIN:           DE000A1TNU68
   WKN:            A1TNU6
   Listed:         Regulated Market in Frankfurt (General Standard);
                   Regulated Unofficial Market in Berlin, Dusseldorf,
                   Hamburg, Munich, Stuttgart, Tradegate Exchange
   EQS News ID:    1868667

End of News EQS News Service
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1868667 28.03.2024 CET/CEST