Improved results with stable sales development

V-ZUG Holding AG / Key word(s): Half Year Results
Improved results with stable sales development

21-Jul-2023 / 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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Zug, 21 July 2023

MEDIA / INVESTOR RELEASE

Ad hoc announcement pursuant to Art. 53 LR

Consistent cost management in response to difficult market situation

In the first half of 2023, V-ZUG generated net sales of CHF 298.2 million,
1.6 % lower than in the previous year's period (H1 2022: CHF 303.0 million).
Operating profit (EBIT) amounted to CHF 5.1 million (H1 2022: CHF 4.3
million). There were no more supply shortages in the first half of the year,
however, purchase prices remained high. To address market-related declining
volumes, additional measures to increase sales as well as cost-saving
initiatives are being implemented. V-ZUG remains committed to its
medium-term targets.

Sales volumes under pressure - stable net sales

Net sales of the V-ZUG Group decreased slightly by 1.6 % to CHF 298.2
million in the first half of 2023 (H1 2022: CHF 303.0 million; currency
adjusted - 1.0 %). This development was due to lower volumes in Switzerland,
sales growth in International Markets and effects from sales price
increases. The restrained market development in Switzerland mainly affected
new buildings and renovations, each accounting for around a third of
appliance sales. Replacement investments, as well as customer service
remained on a good level. Our customers' inventories were still well
stocked, which put further pressure on volumes. The performance of
International Markets varied across regions. International Markets' share of
net sales in this period amounted to 20.4 % (H1 2022: 17.8%).

Operating result improved

With the help of sales price increases implemented in stages in the previous
year and in February 2023, the company was able to counter the high purchase
prices. EBIT increased to CHF 5.1 million (H1 2022: CHF 4.3 million); the
EBIT margin was 1.7 % (H1 2022: 1.4 %). To improve profitability, various
measures to increase sales and to reduce costs are being implemented:
procurement costs are continuously being addressed, the number of temporary
jobs reduced, vacancies only selectively filled, and recruitment activities
by and large suspended. Projects have been reprioritised and expenditures
cut back. V-ZUG adjusts its structural cost base successively to remain
agile.

Cash Flow from operating activities was CHF 17.9 million in the first half
of 2023 (H1 2022: CHF -25.2 million) compared to previous year due to
deviations within trade receivables and inventory. As in the previous year,
cash flow from investing activities was mainly influenced by the site
transformation; it amounted to CHF - 25.4 million (H1 2022 CHF - 24.0
million). Free cash flow was CHF -7.5 million (H1 2022: CHF - 49.2 million).
As of 30 June 2023, the balance sheet remained strong with an equity ratio
of 75.4 % (31 December 2022: 74.8 %) and cash and cash equivalents including
securities of CHF 56.4 million (31 December 2022: CHF 64.5 million).

Attractive growth in International Markets

In International Markets, V-ZUG's total sales saw an increase of 13.0 % to
CHF 60.8 million; sales development varied across regions. Order intake was
affected to some extent by global uncertainties and cautious consumer
behaviour. V-ZUG systematically invests in the growth of carefully selected
international markets and metropolitan areas.

Special edition to mark Adora's 65th anniversary

The Adora washing machine was developed in 1958 with sustainability in mind
and has been produced in Switzerland since 1959. Today's production process
is CO2-neutral. In terms of laundry performance, it is second to none.
Thanks to using less water, energy and detergent, the appliance also washes
in a resource-efficient way. To celebrate Adora's anniversary, a special
edition is being launched. Among other improvements, the AdoraWaschen V4000
OptiDos and AdoraTrocknen V4000 models are being enhanced with functional
upgrades to provide additional fabric care benefits at unparalleled value
for money.

Success through sustainability

The company released its 2022 Sustainability Report on 29 March 2023. It
provides comprehensive details of numerous accomplishments and initiatives.
These include reducing carbon emissions, improving the energy-efficiency
ratings of appliances and aligning the company's operations with the
circular economy, to name just a few. The next sustainability report will be
included in the V-ZUG Annual Report 2023 and be released on 13 March 2024.

Key Figures

  in CHF million                                    H1      H1      Change
                                                    2023    2022
  Group
  Net sales                                         298.2   303.0   - 1.6 %
  Currency adjusted                                                 - 1.0 %
  EBITDA                                            21.4    19.2    11.4 %
  EBITDA in % of net sales                          7.2 %   6.3 %   90 bp
  Operating result (EBIT)                           5.1     4.3     20.0 %
  EBIT in % of net sales                            1.7 %   1.4 %   30 bp
  Group net result                                  4.3     3.8     14.9 %
  Group net result in % of net sales                1.5 %   1.2 %   30 bp
  Cash flow from operating and investing            - 7.5   - 49.2  84.7 %
  activities
  Cash and cash equivalents including securities    56.4    68.0    - 17.1
                                                                    %
  Total assets                                      605.7   619.9   - 2.3 %
  Shareholders' equity                              456.4   452.8   0.8 %
  Equity in % of total assets                       75.4 %  73.0 %  240 bp
  Number of employees (FTE) as of 30 June           2,114   2,145   - 1.4 %

  Segments
  Household Appliances
  Net sales                                         298.2   303.0   - 1.6 %
  Currency adjusted                                                 - 1.0 %
  Operating result (EBIT)                           3.1     1.8     72.9 %
  EBIT in % of net sales                            1.0 %   0.6 %   40 bp
  Real Estate
  Operating result (EBIT)                           2.9     3.1     - 6.9 %

EBITDA: Operating result (EBIT) before depreciation, amortisation and
impairment.

Equity ratio: Proportion of a company's assets is financed with equity. It
is defined as equity expressed as a percentage of total equity and
liabilities.

This ad hoc announcement is available at
https://vzug.com/gb/en/investor-relations-news and the 2023 Half-Year Report
at https://wwww.zug.com/gb/en/financial-reports.

Further information

     Adrian Ineichen            Gabriele Weiher
     CFO                        Head of Investor Relations
     Tel.: + 41 58 767 60 03    Tel.: +41 58 767 86 19

Key dates

     13 March 2024    Publication of the annual results 2023
     23 April 2024    Annual General Meeting
     19 July 2024     Publication of the 2024 mid-year results

Media release (PDF)

About the V-ZUG Group

"Bringing simplicity into your home and creativity into your kitchen."

V-ZUG is Switzerland's leading brand in household appliances and markets its
products in selected premium markets abroad. V-ZUG has been developing and
manufacturing kitchen and laundry appliances in Switzerland for 110 years
and offers a comprehensive service in all its markets. The SIBIRGroup AG,
which focuses on the Swiss-wide provision of all-brand servicing and the
retail of household appliances, is also part of the V-ZUG Group. The V-ZUG
Group currently employs around 2,100 people.

V-ZUG Holding AG is listed in the Swiss Reporting Standard of SIX Swiss
Exchange in Zurich and represented in the Swiss Performance Index (SPI)
(securities number 54 248 374, ISIN CH0542483745, ticker symbol VZUG).



Legal notes

The expectations expressed in this ad hoc announcement/media/investor
release are based on assumptions. Actual results may deviate from these
assumptions. This ad hoc announcement is published in German and English.
The German version is binding. V-ZUG Holding AG processes personal data in
accordance with its privacy statement, which is available at
https://www.vzug.com/gb/en/privacy-statement.


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End of Inside Information

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1685089 21-Jul-2023 CET/CEST