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KOMAX Holding AG / Key word(s): Forecast
Komax Group mastering challenging market situation
18-Jun-2024 / 07:00 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this announcement.
Dierikon, 18 June 2024
Media release
Ad hoc announcement pursuant to Art. 53 LR
The Komax Group currently finds itself in a market environment shaped by uncertainties and excess capacity in some
places, which is why its customers are investing less and postponing projects. As a consequence, it is witnessing a
significant decline in its revenues. The Komax Group already started to reduce costs at the end of 2023 and continues
to focus intensively on optimizing the structures that arose through the combination with Schleuniger. It expects to
see a slight improvement in the market situation in the second half of 2024.

With the automotive industry beset by a number of uncertainties, the Komax Group has been facing a subdued order intake
since the end of 2023. In Europe and Asia in particular, customers are showing a certain reluctance when it comes to
taking investment decisions, given excess capacities and the strained economic situation. One exception here is the
market development in India, which has been very positive this year to date. Although the Komax Group is seeing signs
that the overall situation will improve slightly in the second half of 2024, visibility in terms of how business will
develop is still low.

The Komax Group entered fiscal 2024 with a solid order backlog (CHF 208.2 million). Over the first few months of the
year, this allowed it to absorb some of the drop in order activity, but this is now no longer possible. Order intake
and revenues were both down 20% on the previous year in the first five months of 2024. The Komax Group anticipates that
the decline in revenues will remain at this level for full-year 2024. Revenues amounted to CHF 752.0 million in 2023.

This decline in revenues is due in large part to lower levels of volume business, which accounts for a
disproportionately large share of operating profit (EBIT). Customers continue to have low levels of automation, leaving
plenty of potential for the Komax Group to increase these levels. This is why the decline in orders for products that
play a part in this increase of automation is noticeably smaller. Even though various projects have been pushed back
this year, customers remain willing to invest in such products. Overall, the Komax Group expects EBIT to be modestly
positive for fiscal 2024.

Cost reduction and structural optimizations
In order to align with the volatile market situation, the Komax Group started to bring down costs early on. This is
achieved, for example, by reducing its headcount - by not replacing staff when they leave and through minor active
downsizing measures. In addition, it has continued to streamline its product portfolio and optimize its distribution
and organizational structures. Part of this involved the discontinuation of production at Komax Testing Bulgaria at the
end of April 2024, alongside the ongoing closure process at the site in Jettingen, Germany.

As well as optimizing structures, the Komax Group is focusing on strengthening its position in the growing Chinese
market. Consequently, it will acquire a 56% stake in the Chinese firm Hosver effective 1 July 2024. Hosver is the
leading manufacturer in China of machines for processing high-voltage cables, which are required in vehicles with
electric drive systems.

The Komax Group is convinced that, with the measures it has undertaken, it will emerge strengthened from the current
phase of weakness. To help it get through this phase, short-time working was introduced for production staff in
Dierikon, Switzerland, in May 2024. Subject to approval from the cantonal authorities, this will be extended to the
entire site as of 1 July 2024 and the site in Cham, Switzerland, will likewise introduce short-time working.



Financial calendar

Half-year results 2024                          13 August 2024 
Investor Day                                    22 November 2024 
Preliminary information on 2024 financial year  21 January 2025 

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Contact Roger Müller Vice President Investor Relations / Corporate Communications Phone +41 41 455 06 16 roger.mueller@komaxgroup.com

Komax is a globally active technology company that focuses on markets in the automation sector. As a leading manufacturer of innovative and high-quality solutions for the wire processing industry, the Komax Group helps its customers implement economical and safe manufacturing processes, especially in the automotive supply sector. The Komax Group employs more than 3400 employees worldwide and provides sales and service support via subsidiaries and independent agents in more than 60 countries.

Komax Stories Topics and insights from the world of automated wire processing: https://www.komaxgroup.com/en/stories

Komax Holding AG, Industriestrasse 6, 6036 Dierikon, Switzerland Phone +41 41 455 04 55, komaxgroup.com

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End of Inside Information

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Language:     English 
Company:      KOMAX Holding AG 

Industriestrasse 6
6036 Dierikon
Switzerland

ISIN:         CH0010702154 
Valor:        907324 
Listed:       SIX Swiss Exchange 
EQS News ID:  1927033 

End of Announcement EQS News Service
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1927033 18-Jun-2024 CET/CEST

Image link: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=show_t_gif&application_id=1927033&application_name=news

END) Dow Jones Newswires

June 18, 2024 01:00 ET (05:00 GMT)