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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 
Gearing^2                               %           0.0       0.0 
Free cash flow^3                        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 share^5       CHF         5.33      3.10 
Equity per registered share^5           CHF         32.57     28.20 
Dividend per registered share^6         CHF         1.00      0.50 
Payout ratio^6                          %           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 

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^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

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