Schlatter increases net sales and earnings in 2023 financial year

Schlatter Industries AG / Key word(s): Annual Results
Schlatter increases net sales and earnings in 2023 financial year

28-March-2024 / 06:00 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this announcement.

---------------------------------------------------------------------------

SCHLATTER INDUSTRIES AG - SIX SWISS EXCHANGE: STRN - ISIN: CH0002277314


Ad hoc announcement pursuant to article 53 LR

S c h l i e r e n, 28 March 2023. In the 2023 financial year, the Schlatter
Group generated net sales of CHF 128.6 million (2022: CHF 110.5 million) and
order intake of CHF 113.1 million (2022: CHF 128.1 million). The order
backlog as at 31.12.2023 stood at CHF 73.9 million (31.12.2022: CHF 89.4
million). The operating result (EBIT) for the period under review was
positive at CHF 7.1 million (2022: CHF 5.5 million). Consolidated net profit
stood at CHF 5.1 million (2022: CHF 3.5 million).

Demand for Schlatter products normalized in the 2023 financial year. In
particular, demand for reinforcing mesh production systems and weaving
machinery for the paper industry dropped following a period of market
overheating. By contrast, after-sales volumes continued to grow, while the
number of industrial mesh production systems and rail welding systems sold
increased significantly. Suppliers' delivery problems eased in the second
half of the year, but the resulting backlogs weighed on productivity and
gave rise to substantial additional costs. Prices of sourced materials
largely stabilized at a higher level, while further appreciation of the
Swiss franc put additional pressure on earnings.

Net sales were 16.4% higher year on year and the operating result (EBIT) was
also higher at CHF 7.1 million (financial year 2022: CHF 5.5 million). The
Schlatter Group closed the 2023 financial year with a high order backlog,
with the result that capacities in the 2024 financial year will largely be
utilized.

Welding segment 2023

In the 2023 financial year, the welding segment achieved order intake of CHF
95.0 million (2022: CHF 99.9 million) and net sales of CHF 100.8 million
(2022: CHF 96.0 million). The order backlog as at 31.12.2023 stood at CHF
56.7 million (31.12.2022: CHF 62.5 million).

The segment recorded lower yet satisfactory order intake on a year-on-year
basis. The fall-off in orders for reinforcing mesh production systems was
sufficiently offset by good order intake in rail welding machinery as well
as industrial mesh production systems. Given the current order backlog,
existing capacities in the 2024 financial year are already well utilized.
The welding segment should contribute to a further increase in net earnings
for the financial year.

Weaving segment

The weaving segment recorded order intake of CHF 18.1 million (2022: CHF
28.2 million) and net sales of CHF 27.8 million (2022: CHF 14.5 million).
The order backlog as at 31.12.2023 stood at CHF 17.2 million (31.12.2022:
CHF 26.9 million).

The above-average level of demand in previous periods was driven by orders
from China. The Chinese market is now in a saturation phase, and incoming
orders have returned to normal. Despite significantly higher material costs
and increases in official wage rates, the Münster site increased its sales
and earnings in the 2023 financial year. The Münster site is already
operating at full capacity for the 2024 financial year. To boost
productivity, a comprehensive package of measures was devised.

Outlook for the Schlatter Group

The Schlatter Group has successfully launched product innovations, stepped
up its marketing effort and expanded its service business. The Group expects
net sales to be slightly lower in the 2024 financial year. On the other
hand, Schlatter aims to increase its operating result (EBIT).

At the annual general meeting on 7 May 2024, the Board of Directors will
propose the payment of capital reserves of CHF 1.00 per share for the 2023
financial year, instead of a dividend (previous year: dividend of CHF 0.50).

The full 2023 Annual Report can be downloaded from the Schlatter Group
website:

http://www.schlattergroup.com/de/investor-relations/geschaefts-_und_semesterberichte

Further information

Schlatter Industries AG

Werner Schmidli

Chief Executive Officer

Mobile +41 79 343 62 62

werner.schmidli@schlattergroup.com

Agenda

   28.03.2024    Publication of the detailed annual result for 2023 by an
                 ad hoc announcement and publication of the annual report
                 on the company's website
   07.05.2024    Annual General Meeting
   16.08.2024    Publication of half-year report 2024

Schlatter Group Key figures
===========================

                                                       2023       2022
  Net sales                               CHF million  128.6      110.5
  Change compared to previous year        %            16.4       16.7
  Operating result (EBIT)                 CHF million  7.1        5.5
  in % of net sales                       %            5.5        5.0
  Net result (incl. minority interests)   CHF million  5.1        3.5
  in % of net sales                       %            4.0        3.1
  Net result (excl. minority interests)   CHF million  5.9        3.4
  in % of net sales                       %            4.6        3.1

  Order intake                            CHF million  113.1      128.1
  Order backlog                           CHF million  73.9       89.4

  Headcount as at December 31             FTEs         368        357
  Annual average                          FTEs         366        338

  Interest-bearing liabilities            CHF million  5.4        7.2
  Net financial position (debt)1          CHF million  8.0        1.7
  Gearing2                                %            0.0        0.0
  Free cash flow3                         CHF million  6.8        -6.5

  Current assets                          CHF million  65.8       61.7
  Non-current assets                      CHF million  18.4       19.1
  Liabilities                             CHF million  48.7       49.5
  Equity (incl. minority interests)       CHF million  35.4       31.3
  Equity (excl. minority interests)       CHF million  35.9       31.2
  Equity ratio (incl. minorities)         %            42.7       38.5

Return on equity (ROE)4 % 15.3 11.6

  Key share figures
  Share capital as at December 31         CHF 1000     17 675     17 675
  Total registered shares                 Number       1 104 704  1 104 704
  Of which entitled to dividend payments  Number       1 104 704  1 104 704
  Net result per registered share5        CHF          5.33       3.10
  Equity per registered share5            CHF          32.57      28.20
  Dividend per registered share6          CHF          1.00       0.50
  Payout ratio6                           %            18.75      16.11

  Share price development
  High                                    CHF          26.00      30.60
  Low                                     CHF          21.00      20.20
  Year-end                                CHF          25.80      25.00

  Market capitalization
  High                                    CHF million  28.7       33.8
  Low                                     CHF million  23.2       22.3
  Year-end                                CHF million  28.5       27.6

1 Net financial position (debt): cash and cash equivalents less
interest-bearing liabilities

2 Gearing: net debt divided by equity

3 Cash flow from operations less purchases of tangible assets and intangible
assets plus sale of tangible assets
and intangible assets

4 Net result divided by average equity

5 Determined on the basis of dividend-entitled shares

6 Instead of a dividend, the Board of Directors will propose a capital
reduction at the Annual General Meeting
on 7 May 2024 with the release of funds for the distribution of capital
reserves.

Schlatter Group (www.schlattergroup.com)
The Schlatter Group is one of the leading specialists in plant engineering
for resistance welding systems as well as weaving and finishing equipment
for the production of paper machine clothing, wire fabrics and wire mesh.
Thanks to its many years of experience in the field of plant technology, its
innovative strength and its reliable service, the Schlatter Group - which is
listed on the Swiss Reporting Standard of SIX Swiss Exchange - guarantees
its customers a range of powerful and high-quality production equipment.

This media information contains certain forward-looking statements, e.g.
statements using the words 'believes,' 'assumes,' 'anticipates,' or
formulations of a similar nature. Such forward-looking statements involve
known and unknown risks, uncertainties and other factors which could lead to
substantial differences between the actual future results, the financial
situation, the development or performance of the Company and those either
expressed or implied by such statements. Such factors include, among other
things: competition from other companies, the effects and risks of new
technologies, the Company's continuing capital requirements, financing
costs, delays in the integration of acquisitions, changes in the operating
expenses, the Company's ability to recruit and retain qualified employees,
unfavorable changes in the applicable tax laws, and other factors identified
in this communication. In view of these uncertainties, readers are cautioned
not to place undue reliance on such forward-looking statements. The Company
accepts no obligation to continue to report or update such forward-looking
statements or adjust them to future events or developments.

------------------------------
This information can be downloaded as a PDF from the following link:
Ad hoc announcement pursuant to article 53 LR

If you no longer wish to receive information from Schlatter Industries AG,
please send a message to: pascale.lehmann@lehmanncom.ch


---------------------------------------------------------------------------

End of Inside Information

---------------------------------------------------------------------------

   Language:       English
   Company:        Schlatter Industries AG
                   Brandstrasse 24
                   8952 Schlieren
                   Switzerland
   Phone:          +41 44 732 71 11
   E-mail:         info@schlattergroup.com
   Internet:       www.schlattergroup.com
   ISIN:           CH0002277314
   Listed:         SIX Swiss Exchange
   EQS News ID:    1869317

End of Announcement EQS News Service
---------------------------------------------------------------------------

1869317 28-March-2024 CET/CEST