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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
2024-03-28 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.
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% 

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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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2024-03-28 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.eqs-news.com

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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 2024-03-28 CET/CEST

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March 28, 2024 02:30 ET (06:30 GMT)