Adval Tech : defies difficult conditions and achieves a clearly positive annual result in 2020

Niederwangen, March 26, 2021, 7:00 a.m.-Under very difficult conditions, the Adval Tech Group has held up excellently in the coronavirus year 2020 and achieved an EBIT margin of 4.8% (previous year: 5.8%). It achieved total income¹⁾ of CHF 140.8 million (previous year: CHF 178.9 million, -21.3%), EBITDA²⁾ of CHF 15.2 million (previous year: CHF 18.4 million, - 17.7%) and EBIT³⁾ of CHF 6.7 million (previous year: CHF 10.3 million, -34.4%). Net profit for 2020 was CHF 4.3 million (previous year: CHF 8.7 million, -50.3%). The significant improvement at all levels in the second half of 2020 makes Adval Tech particularly confident.

The coronavirus pandemic has dealt a major blow to the automotive and automotive supply industries. And this at a time when they are undergoing a difficult transforma­tion process. Technical, social and economic developments have fundamentally af­fected demand and the buying behavior of market participants.

Adval Tech had set itself the following objectives for 2020: to maintain its financial room for maneuver, to complete the newly acquired projects in the required quality, within the agreed time and within the calculated costs, to maintain supply capacity and flexibility vis-à-vis customers, to win new orders from the automotive industry and to drive forward business with high-speed presses and components outside the automotive industry. Adval Tech met all these targets in this exceptional year.

Market development and market success
Despite a difficult environment, Adval Tech succeeded in acquiring new, promising orders also last year. In the metals sector, the cooperation with a leading European premium automotive manufacturer launched in spring 2018 was further expanded. In the year under review, Adval Tech received additional orders for structural components that are scheduled to go into production in 2022. At its sites in Germany and Hungary, for example, Adval Tech will produce metal parts for an electric sports car and an electric sedan from 2022.

Adval Tech has also achieved acquisition successes in the plastics sector in recent years, which will keep individual sites busy for years. Examples include the production of radiator shutters for various automotive manufacturers in Hungary as well as several orders for production in Mexico. However, due to the dramatic developments in the market, several production starts that were scheduled for the first half of 2020 have been postponed. Sales efforts, which were intensified even further during this difficult period, resulted in further new orders despite the coronavirus pandemic. In Mexico and China, for example, Adval Tech will manufacture additional safety-relevant subassemblies made of plastic for vehicle interiors.

Cash flow
The Adval Tech Group's cash flow from operating activities amounted to CHF 6.1 million in 2020 (2019: CHF 4.2 million). Operating free cash flow⁴⁾ was CHF 3.6 million (2019: CHF -3.8 million). This marked increase - despite the coronavirus pandemic - is mainly due to higher cash flow from operating activities, consistent cost management and lower investments in property, plant and equipment.

Outlook
The economy continues to be severely impacted by the coronavirus in many sectors worldwide. This applies in particular to the automotive industry. The medium- and long-term impact of this crisis cannot yet be assessed. The Adval Tech Group refrains from making concrete forecasts for total income and EBIT in 2021.

Media and financial analysts' conference
The media and financial analysts' conference scheduled for April 27, 2021 will not take place due to the current coronavirus situation. The Adval Tech Group's Annual Report 2020 will be available for download from the website www.advaltech.com from 7 a.m. on April 27, 2021. The associated media release will also be sent out at 7 a.m. Group Executive Management will be available for one-on-one meetings with interested financial analysts and media representatives from 9 a.m. onwards.

Annual General Meeting
The Annual General Meeting of Adval Tech Holding Ltd on May 20, 2021 will be held at the headquarters of Adval Tech Holding AG in Niederwangen. Attendance will be restricted to the Board of Directors, employees of the Adval Tech Group designated by the Board of Directors, the independent proxy and a representative of the auditors. Shareholders are requested to delegate their votes to the independent proxy.

Key figures	2020	2019	Change
Total income (CHF millions)1)	140.8	178.9	-21.3%
Net turnover (CHF millions)	134.9	173.6	-22.3%
Operating earnings before depreciation EBITDA (CHF millions)2)	15.2	18.4	-17.7%
Operating earnings EBIT (CHF millions)3)	6.7	10.3	-34.4%
Net profit (CHF millions)	4.3	8.7	-50.3%
Cash flow from operations (CHF millions)	6.1	4.2	44.1%
Number of employees on December 31	1105	1179	-74

Alternative Performance Measures:
¹⁾ Total income: Net turnover, plus or minus change in inventories of finished and semi-finished goods, plus capitalized internally produced assets, plus other operating income.
²⁾ EBITDA: Total income less cost of goods sold and outsourced services, payroll and other operating expenses.
³⁾ EBIT: EBITDA less depreciation and amortization.
⁴⁾ Sum of cash flow from operating activities and cash flow from investing activities.

Background information about the Adval Tech Group
Adding value through innovation - that's what Adval Tech stands for. The Adval Tech Group is a global industrial supplier of technologically sophisticated components and subassemblies made of metal and plastic. It focuses on selected activities, especially in its main target market, the automotive industry. As a supplier and value-adding partner, Adval Tech covers the entire value chain from product development to prototyping, to mold and tool development, and through to component production and assembly.

Download media release
www.advaltech.com/en/group/investors/company-news/ad-hoc-notices

Contact
Markus Reber, CFO, phone [phone], [e-mail]
Valeria Poretti, Head Corporate HR/Communication, phone [phone], [e-mail]

Agenda

April 27, 2021, publication of the 2020 Annual Report (media and financial analysts' conference cancelled)
May 20, 2021, General Meeting of Shareholders 2021 (limited attendance)
End of August 2021, announcement of semi-annual results 2021

Except for the historical information contained herein, the statements in this media release are forward-looking statements that involve risks and uncertainties.

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