ACTIA : SECOND QUARTER 2023 TURNOVER

(1) Unaudited data.

ACTIA's turnover rose by 12.2% to reach €150.5m in the second quarter, following a first quarter of €138.2m, up by 20.8%. All segments showed progress, with the exception of the outsourced Manufacturing Design & Services (MDS) business that slowed down following several very robust quarters. The Group's business remains buoyant despite ongoing difficulties in sourcing certain components, meaning that not all orders placed by customers can be produced. Production delays still amounted to around ten million euros at 30 June 2023. Against this backdrop, consolidated revenue for the first half of 2023 nevertheless reached €288.7m, up by 16.2% compared to the same period 2022.

For the second quarter, the sales of the foreign subsidiaries reached €76.3m, up by 28.4%. With a slight drop of 0.7% to €74.2m, sales of the French companies were stable, absorbing the decrease in the electronics outsourcing business, particularly in the field of home automation, following record growth in 2022. International customers accounted for 65.1% of second quarter sales, as opposed to 63.8% in the same quarter 2022. Indeed, the international business grew by 13.9%, proof of the dynamism in the Group's markets. Over the first half, international customers represented 64.4% of consolidated revenue, with progress in Germany and Brazil offsetting the decline in Egypt with the gradual winding up of deliveries to the SatCom customer.

The Automotive Division generated 84.8% of the Group's quarterly revenue, a total of €127.6m. However, growth of 13.4% remained hampered by the supply difficulties for certain families of components, even if the situation is gradually improving. ACTIA continues to rely on its teams to manage the shortfalls and the production plans in order to limit the impact on its customers. In the second quarter of 2023, this helped to generate growth of 20.1% for the OEM* business, which accounts for 77.4% of the division's turnover, after an 18.5% improvement in the first quarter. These figures also take into account the end of the Volvo Car telematics contract in 2022, resulting in lost sales of €11.7m compared to the first half of 2022. In line with the disposal of the Technical Inspection and Garage Equipment business in April 2022, the Aftermarket^** business experienced a decline of 3.0% in the second quarter, now accounting for no more than 5.2% of the division's revenue, resulting from the Diagnostics and Fleet Management businesses that were retained by the Group. The outsourced electronics or MDS business, at 12.9% of the division's revenue, was down by 16.0% in the second quarter, a reflection of the supply problems making it difficult to support the recovery in the aeronautics sector, and the flattening out of the Home Automation market after 3 years of very significant growth. The Group's historical OEM markets to a large extent offset this trend, particularly the circuit boards for diagnostic tools and onboard computers in the fields of agricultural machinery, trucks and rail. Lastly, "Other", with the ramping up of studies sold as part of the outsourced R&D business, up by 47.5%, reflects ACTIA's expertise and, in the second quarter produced 4.5% of the division's revenue.

The Telecoms Division generated 15.2% of the Group's quarterly revenue. After a first quarter that saw very strong growth of 45.6%, further progress of 6.2% was made in the second quarter. This trend is evidence of the delays experienced for certain deliveries in 2022. Energy and Rail continued to pick up speed with growth of 26.9% and 66.0% respectively over the quarter, even if they remain sensitive to supplies of components. The end of significant shipments for the Egyptian SatCom contract, with the gradual switch to Maintenance in Operational Condition, has affected this segment, down by 24.9% compared to the second quarter 2022.

2023 OUTLOOK

With a slight improvement forecast in the supply of components by the end of the year, which is expected to enable the factories to operate more smoothly, ACTIA maintains its objective of growth in excess of 15%. By addressing inventory levels and setting up factoring for its principal structures in order to better mobilise customer receivables, the Group is taking action to reduce the impact on its WCR during a period of sustained growth.

Reassured by its solid order book and its portfolio of multi-year contracts that continues to grow, ACTIA Group targets revenue in excess of €800m by the end of 2025. This growth will be associated with a new segmentation of the Group's business into 4 Divisions (Mobility, Energy, Aerospace and Engineering) to provide greater clarity and visibility, and, by the same token, a reinforced growth dynamic. These changes will be made over the next 3 years.

* OEM: Original Equipment Manufacturer
** Aftermarket: including repairs and maintenance

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ABOUT ACTIA

ACTIA Group is a mid-market company (ETI) founded in 1986. It is at once family-owned and international and its head office is located in France. The family aspect guarantees the long-term future of the Group and its independence with an ever-present entrepreneurial spirit. ACTIA's business is to design and produce electronics to control systems in the particularly demanding fields of the automotive, rail, aeronautics, space, defence, energy and telecommunications industries.

The commitments made by ACTIA are reflected in the Group's ambitious contributions to addressing societal issues: mobility, connectivity, safety and the environment. Control over the design and production of products bearing the ACTIA signature is a true guarantee of quality. Without exception, all Group employees share this belief in quality in a fully certified environment.

KEY FIGURES

• 2022 turnover: €499.8m.
• Over 3,700 employees around the world, of whom more than 1,200 engineers and technicians working in R&D.
• Present in 16 countries.
• Between 14 and 18% of revenue reinvested every year in R&D.

STOCK EXCHANGES

• Euronext C
• ISIN FR0000076655 - Mnemonic: ATI Reuters: MRSP.PA - Bloomberg: AIELF: FP
• Indices: CAC ALL SHARES - CAC ALL-TRADABLE - CAC INDUSTRIALS - CAC MID&SMALL - CAC SMALL - EN TECH CROISSANCE - GAÏA INDEX

CONTACTS

ACTIA - Catherine Mallet - Tel: [phone] - [e-mail]

CALYPTUS - Marie Calleux - Tel: [phone] - [e-mail]

DATES FOR THE DIARY

H1 2023 results: Tuesday 19 September 2023 (7 am)

Investors meeting: Wednesday 20 September 2023 (3 pm) by video-conference