R&S Group increases guidance for 2024 and beyond

R&S Group Holding AG / Key word(s): Profit Hike
R&S Group increases guidance for 2024 and beyond

17-May-2024 / 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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Ad hoc announcement pursuant to Art. 53 LR

R&S Group increases guidance for 2024 and beyond

* Revenue growth above 12%, higher than the previous guidance range

* Full-year 2024 EBIT margin of around 20%, up from 16-18%

  * Free cash flow margin guidance raised to mid-teens double-digit as
    percent of net sales
    from mid to high-single digit

* Mid-term outlook also increased accordingly above the previous guidance

Sissach/BL, Switzerland, 17 May 2024 - R&S Group Holding AG (SIX: RSGN)
revised its guidance for the full-year 2024 (FY2024) that was published on
24 January 2024 and now expects net sales to grow above 12%, elevated from
the upper end of the previous guidance range of 9-12%, and an increased EBIT
margin of around 20% (previous guidance 16-18%). Thanks to strong cash
conversion, the free cash flow margin guidance is also raised to mid-teens
double-digit as percent of net sales.

The strong order backlog per end of April of over CHF 200 million and a
book-to-bill ratio of 1.3x reflect a favorable medium-term outlook. The
higher expected net sales growth, economies of scale and the measures
implemented to protect the gross margin and improve operational performance
are showing a much higher impact on margin expansion than initially
anticipated.

Dynamics in the transformer markets in Central and Eastern Europe, where R&S
Group maintains high market shares in its focus markets, as well as in new
target markets such as the Nordics, the Baltics and Germany remain
favorable. As such, the Executive Committee expects good volume growth for
2024 and beyond. In the mid-term, R&S Group aims for net sales growth of
around 12% per annum (previously around 10%), an EBIT margin of around 20%
(before mid-teens) and a free cash flow margin in the mid-teens double-digit
as percent of net sales, up from around 10% previously.

The good start into the year confirms that R&S Group is well on track to
achieve the newly updated guidance.

More detailed information on the performance in the first half year of 2024
will be provided on 24 July 2024 on occasion of the publication of the
trading update.

Calendar 2024

     28 May          Annual General Meeting
     24 July         Trading update
     11 September    2024 half-year results
     31 October      Capital Markets Day

Contacts

     Investor Relations                  Media
     Doris Rudischhauser                 Nicolas Weidmann
     Phone: +41 79 410 81 88             Phone: +41 79 372 29 81
     Email: investors@the-rsgroup.com    Email: media@the-rsgroup.com

About R&S Group

R&S Group Holding AG ("R&S Group", the "company") is headquartered in
Sissach/BL, Switzerland. With six manufacturing facilities in Switzerland,
Italy, Poland and the Middle East, R&S Group serves its domestic and various
European export markets with small and medium power and distribution
transformers in the utility, infrastructure and industrial sectors. The
company has been successfully positioned to benefit from the accelerating
demand for energy production and distribution, driven by the global trend
towards decarbonization. R&S Group has been listed on SIX Swiss Exchange on
13 December 2023 under the ticker symbol RSGN following its successful
business combination with VT5 Acquisition AG, a previously Swiss-listed
Special Purpose Acquisition Company (SPAC).

Further information about the R&S Group can be found at www.the-rsgroup.com.


Disclaimer

This communication expressly or implicitly contains certain forward-looking
statements concerning R&S Group Holding AG and its business. Such statements
involve certain known and unknown risks, uncertainties and other factors,
which could cause the actual results, financial condition, performance or
achievements of R&S Group Holding AG to be materially different from any
future results, performance or achievements expressed or implied by such
forward-looking statements. R&S Group Holding AG is providing this
communication as of this date and does not undertake to update any
forward-looking statements contained herein as a result of new information,
future events or otherwise.

Additional features:


File: https://eqs-cockpit.com/c/fncls.ssp?u=37ad6d109c98a9eea7b3bdd5b8f0357c
File description: R&S Group increases guidance for 2024 and beyond

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End of Inside Information

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   Language:       English
   Company:        R&S Group Holding AG
                   Churerstrasse 25
                   8808 Pfäffikon SZ
                   Switzerland
   E-mail:         investors@the-rsgroup.com
   Internet:       www.the-rsgroup.com
   ISIN:           CH1107979838, CH1108008082
   Listed:         SIX Swiss Exchange
   EQS News ID:    1905319

End of Announcement EQS News Service
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1905319 17-May-2024 CET/CEST