SBF AG looks back on a challenging 2023 and sets course for a successful
future

EQS-News: SBF AG / Key word(s): Annual Results
SBF AG looks back on a challenging 2023 and sets course for a successful
future

15.05.2024 / 17:49 CET/CEST
The issuer is solely responsible for the content of this announcement.

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SBF AG looks back on a challenging 2023 and sets course for a successful
future

  * Revenue forecast of EUR 34.0 million achieved, adjusted balanced EBITDA
    below earnings forecast

  * "Rolling Stock" business area: strategic alliances in the pipeline and
    promising major projects started

  * "Public and Industrial Lighting" business area: cost-cutting program
    initiated to increase efficiency

  * Management Board expects significant revenue growth of between EUR 48
    and 50 million in 2024

Leipzig, 15 May 2024 - SBF AG (ISIN: DE000A2AAE22; WKN A2AAE2, "SBF"), a
listed specialist for innovative solutions in the fields of rolling stock,
lighting, electromechanics and sensor technology, yesterday published its
Annual Report 2023. In a challenging market environment, SBF achieved its
revenue forecast and made important strategic decisions. The result was
below the earnings forecast.

Rudolf Witt, Member of the Executive Board of SBF AG says: "We look back on
an extraordinarily challenging 2023. We have used this phase to put SBF in a
good position for the future with targeted measures. With the integration of
AMS Software & Elektronik GmbH and the introduction of an internal program
to increase efficiency, we have taken important steps in this direction.
Even though 2024 is still a year of transition, we believe SBF is in a
promising position for sustainable and profitable growth with interesting
strategic opportunities."

Difficult market environment and special effects characterize financial year
2023
Despite the challenging conditions, Group revenue remained at a high level
of EUR 34.0 million (2022: EUR 34.9 million) and within the target corridor
forecasted on August 24, 2023. Adjusted Group EBITDA achieves a balanced
result and is therefore below the forecast of around EUR 1.0 million. The
decline in earnings is due in particular to the very weak economic
environment, higher procurement prices, increased personnel expenses and
individual project postponements. In addition, the business figures for 2023
are characterized by special effects amounting to EUR 1.0 million - in
particular due to the acquisition of AMS Software & Elektronik GmbH,
extraordinary legal and consulting costs and an extraordinary goodwill
amortization at Lunux Lighting GmbH and property refurbishment costs that
cannot be capitalized. Excluding the special effects, EBITDA amounted to EUR
-1.0 million (2022: EUR 2.3 million).

In the financial year, revenue in the "Rolling Stock" segment fell to EUR
19.0 million (2022: EUR 21.0 million). The business in the 2023 reporting
year was characterized by cost-intensive new launches of major projects.
These will largely take place in 2024 and 2025 and will therefore have an
impact on revenue development in the current and upcoming financial years.
In addition, the gross profit margin in 2023 was lower than expected, as
material procurement costs remained at a high level and the personnel
expense ratio was higher than expected. Segment EBITDA fell accordingly to
EUR 1.5 million (2022: EUR 2.5 million). The aim is to further strengthen
the rolling stock business area. To this end, specific negotiations will be
held this year with market participants to pool resources in order to
strategically strengthen the market presence, as this area is expected to
offer enormous revenue and earnings potential in the future.

Segment revenue in "Public and Industrial Lighting" was comparatively robust
in a volatile environment and rose slightly to EUR 15.7 million (2022: EUR 15.1
million). Nevertheless, the significantly stronger sales growth originally
forecast for the division was not achieved due to the general market
weakness. The capacities geared towards sales growth and the corresponding
cost structure led to a significant decline in earnings, as did impairment
losses on goodwill in the amount of EUR 0.4 million. EBITDA fell accordingly
compared to the previous year to EUR -1.7 million (2022: EUR -0.1 million).
In order to strengthen the segment's profitability, extensive measures have
already been introduced to reduce the cost base in order to be able to
operate profitably even with the current revenue level.

Deepening the value chain and increasing efficiency
The acquisition and ongoing integration of AMS Software & Elektronik GmbH
marked an important milestone in the 2023 financial year and opened up new
growth potential. AMS is a leading specialist for electronics, sensor and
communication technology and OEMs. With the products from AMS, SBF is
significantly expanding its range of products in the fields of electronics
and sensor and communication technology. Due to the consolidation from
January 1, 2024, the new division will be fully included in the financial
figures for the current financial year.

With the deepening of the value chain and the measures introduced to
increase efficiency, SBF is well positioned in the medium and long term. In
a persistently weak economic environment, the Executive Board expects
profitability to remain temporarily weak this year. In the 2024 financial
year, consolidated revenue is expected to be between EUR 48 million and EUR
50 million and the consolidated net loss for the year is expected to be in
the mid six-digit range. The structural measures introduced in all areas
will have their full positive effect from the coming financial year.

The 2023 Annual Report is available on the company's website at
https://www.sbf-ag.com/investor-relations/finanzpublikationen/.

About SBF Group:
The listed SBF Group is a specialist for innovative solutions in the fields
of rolling stock, lighting, electromechanics and sensor technology. In the
group of companies, highly specialized and leading hidden champions in their
fields pool their expertise. With a high-quality and forward-looking product
and service portfolio, SBF benefits from the megatrends of mobility, climate
protection, automation and digitalization.

In the "Rolling Stock" business field, the Tier 1 system supplier and
development partner supplies the world's leading rolling stock manufacturers
with complex interior, ceiling and lighting systems "Made in Germany". The
"Public and Industrial Lighting" business field comprises intelligent and
customized LED systems for efficient lighting for industrial, municipal and
infrastructural projects. In addition, the "Sensor Technology and
Electromechanics" business field develops and produces pioneering components
and software for electromechanical products such as circuit boards, sensors
and communication technology.

For more information, visit https://www.sbf-ag.com.

Company contact:
SBF AG
The Board of Directors
Zaucheweg 4
04316 Leipzig
Tel: +49 (0)341 65235 894
E-mail: info@sbf-ag.com

Press contact:
Kirchhoff Consult GmbH
Alexander Neblung
Borselstraße 20
22765 Hamburg
Tel: +49 (0)40 60 91 86 70
E-mail: sbf@kirchhoff.de


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   Language:       English
   Company:        SBF AG
                   Zaucheweg 4
                   04316 Leipzig
                   Germany
   Phone:          +49 (0)341 65235894
   E-mail:         info@sbf-ag.com
   Internet:       www.sbf-ag.com
   ISIN:           DE000A2AAE22
   WKN:            A2AAE2
   Listed:         Regulated Unofficial Market in Berlin, Frankfurt,
                   Munich (m:access), Stuttgart, Tradegate Exchange
   EQS News ID:    1904241

End of News EQS News Service
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1904241 15.05.2024 CET/CEST