D'IETEREN : HALF-YEAR 2023 RESULTS

7 September 2023 - Results

D'Ieteren Group reports strong H1-23 results and revises its 2023 guidance slightly upwards.

- This is an abstract. For further details, please refer to the full press release -

Half-year 2023 highlights

D'Ieteren Group pursued its growth path during the first semester, driven by a generally strong operational performance and the consolidation of PHE. The Group's key performance indicator (KPI) - the adjusted consolidated profit before tax, Group's share - reached €548.9m, up by 46.5% compared to H1-22 (restated at €374.8m, see below) including PHE, and with Belron at 50.07% for both periods. On a like-for-like basis, excluding PHE, the KPI grew by 25.6% YoY.

• Belron'sadjusted profit before tax, Group's share improved by 34.8% YoY to €286.8m, reflecting solid top-line evolution and strong fall-through with a significant adjusted operating margin improvement at 21.9% primarily reflecting higher sales and strong cost control.

• D'Ieteren Automotive, boosted by the upturn in car production levels at the VW Group, market share gains, a positive price / mix effect and other mobility activities, posted a 42.1% growth in adjusted profit before tax, Group's share to €143.2m. The Belgian new car market was up by 34.8% YoY.

• PHE, consolidated since August 2022, contributed for €78.0m to the adjusted profit before tax, Group's share. This solid contribution stems from positive top-line developments, including pricing initiatives to mitigate inflationary pressure, as well as profitability improvement in recently acquired entities.

• TVH recorded an adjusted profit before tax, Group's share of €36.9m, down by -33.6% YoY, the decrease being essentially due to the effect of the cyberattack incurred on March 19^th which led to a significant temporary interruption of activity.

• Moleskine was impacted by a more cautious inventory management by retail and online accounts, especially in the first quarter. Revenues for H1-23 declined by -6.0% YoY, while adjusted operating result increased by 22.6% thanks to significant cost control initiatives. These were more than offset at the adjusted profit before tax, Group's share level, which came in at -€4.6m in H1-23 due to higher non-cash financial charges related to the shareholder loan.

• Corporate & Unallocated (including corporate and real estate activities) reported an adjusted profit before tax, Group's share of €8.6m compared to €5.0m in H1-22, largely thanks to financial income. The net cash position of the segment at the end of June 2023 stands at €934.9m (€612.0m excluding inter-segment loans).

• Free cash flow Group's share reached €186.1m, primarily driven by Belron and the sale of Mondial Pare-Brise at PHE, as well as positive operational developments, and despite a significant increase in working capital at D'Ieteren Automotive due to bottlenecks in delivering new cars to end-customers.

Outlook 2023

Following a strong H1-23, D'Ieteren Group revises its guidance slightly upwards, now expecting its adjusted profit before tax, Group's share to be above €960m including the additional interest costs linked to Belron's term loan issuance in April 2023. This upgrade takes into account a good operational performance of its businesses, as well as the reclassification of share-based payment expenses and other long-term incentive plans as adjusting items at D'Ieteren Automotive, Moleskine, TVH, PHE and Corporate & Unallocated segments (€31.1m in H1-23 and c.€50m expected for the full-year).

It assumes average foreign exchange rates that are in line with the rates that prevailed at the end of H1-23 and a 50.01% stake in Belron.

The operational changes pertain to the following elements:

• At Belron, FY-23 margin should improve by more than 200bps compared to FY-22.
• D'Ieteren Automotive expects the Belgian market to record 480,000 new registrations in 2023, and D'Ieteren Automotive's volumes will remain high, though constrained by the capacity to deliver the vehicles. The inventory impact related to the bottlenecks in deliveries should persist until the first quarter 2024.
• TVH's results will reflect a lower volume growth environment and a decline in operating profit margin for the full year.
• Moleskine, having experienced, especially in the first quarter and in the US, a cautious inventory management by retail and online accounts, expects to gradually recover in the coming quarters, leading to a low FY-23 sales growth.

- End of abstract -

Contact

Francis Deprez, Chief Executive Officer
Edouard Janssen, Chief Financial Officer

Stéphanie Voisin, Investor Relations - Tel: + 32 (0)2 536.54.39
E-mail: [e-mail] - Website: www.dieterengroup.com