Delignit : Half-year Report 2023 Delignit AG

Contents

Brief portrait of the Delignit Group	3
Delignit Group at a glance	4
Greetings from the Management Board	5
Group management report for the fiscal half-year from
1 January to 30 June 2023 Delignit AG, Blomberg	6
1.	General description of the company	6
2.	Business and general conditions	6
3.	Market environment of the Delignit Group	7
4.	Organisation	8
5.	Results of operations, financial position and net assets	9
6.	Hedging transactions	11
7.	Risk report	11
8.	Strategic orientation and opportunities of the Delignit Group	11
9.	Sustainability/financial and non-financial performance
indicators	12
10. Events after the reporting period	12
11. Other information	12
12. Report on expected developments	14
IFRS interim consolidated statement of financial position of
Delignit AG (unaudited) as at 30 June 2023	15
IFRS interim consolidated statement of comprehensive income
(unaudited) for the fiscal half-year from 1 January to
30 June 2023 of Delignit AG	17
Disclosures on accounting	18
Financial calendar	18
Contact	18

Page 2 of 18 pages

Brief portrait of the Delignit Group

The Delignit Group develops, manufactures and sells ecological, usually hardwood-based, materials and system solutions based on the natural, renewable and carbon-neutral raw material wood.

As a development, project and serial supplier for technology industries, such as the automotive industry, aviation industry and railway industry, business activity today is focused on creating and implementing technological and customized applications and systems.

These applications and systems are used in the form of specific

• predominantly ready-to-install - parts, components, system solutions and module solutions. The foundation for this is provided by Delignit material, which is essentially based on beech wood. The use of Delignit materials as a substitute for applications made of non-renewable raw materials improves the environmental balance of our customers' products and meets their increasing ecological requirements.

The Delignit Group's operating business is divided into two target markets:

Automotive target market:

The Automotive target market is divided into the product groups light commercial vehicles (LCV), motor caravans and passenger cars. The business activity focuses on the manufacture and sale of cargo bay protection systems and security systems (interior) for the light commercial vehicle (LCV) class. For example, these systems are used extensively by leading manufacturers of light commercial vehicles as original equipment (OEM) and retrofit equipment (after-sales) as cargo bay floors, walls and partition walls. Interior furnishings, such as cabinet systems, are supplied for the motor caravan sector. In the passenger car sector, for example, trunk covers are used by well-known OEMs.

Technological Applications target market:

The products of the Technological Applications target market are divided into the product groups Building Equipment, Compressed Wood, Railfloor and Special Applications. In the Building Equipment business, for example, flooring solutions for automotive manufacturing plants, and for goods distribution centres and beech multiplex assortments are supplied by the timber trade. The Compressed Wood business consists of highly-compressed and medium-compressed materials that are used for plant construction, machine construction and transformer construction applications. The Railfloor business provides manufacturers of rail vehicles with floor system solutions for fulfilment of international fire protection and sound insulation concepts. The Special business includes various special products for applications, such as model making and musical instruments.

Page 3 of 18 pages

Delignit Group at a glance

Fiscal year (01/01 to 30/06)	2023	2022	∆ 2023 vs.
	IFRS	IFRS	2022
Earnings figures	€ thousand	€ thousand	%
Revenue	48,210	32,134	50.0 %
Total operating revenue	48,849	31,659	54.3 %
Cost of materials	-30,451	-18,529	64.3 %
Personnel costs	-10,137	-8,750	15.8 %
Other operating expenses	-3,799	-2,497	52.2 %
EBITDA	4,461	1,883	136.9 %
EBITDA margin	9.1 %	5.9 %	3.2 %*
EBIT	3,286	716	359.1 %
EBIT margin	6.7 %	2.3 %	4.5 %*
EBT	3,181	624	410.0 %
EBT margin	6.5 %	2.0 %	4.5 %*
Consolidated net income	2,178	356	512.1 %
Number of shares	8,193,900	8,193,900	0.0 %
EPS in €	0.27	0.04	512.1 %
Statement of financial position
figures	€ thousand	€ thousand	%
Non-current assets	17,054	17,175	-0.7 %
Current assets	29,742	26,306	13.1 %
Cash and cash equivalents
contained therein	916	747	22.6 %
Issued capital (share capital)	8,194	8,194	0.0 %
Other equity	20,637	16,079	28.3 %
Total equity	28,831	24,273	18.8 %
Equity ratio	61.6 %	55.8 %	5.8 %*
Non-current liabilities and
provisions	5,430	4,422	22.8 %
Current liabilities and provisions	12,535	14,785	-15.2 %
Total assets	46,796	43,481	7.6 %
Net financial debt
(net debt (-)/net cash (+))	-6,019	-8,435	-28.6 %
Employees (as at 30/06)
Germany	461	396	16.4 %

*Change in percentage points, differences due to commercial rounding

Page 4 of 18 pages

Greetings from the Management Board

Dear shareholders,

Dear employees,

The first half of 2023 was remarkably dynamic. We saw a significant upturn in demand over the six-month period, with high call-offs in our serial supply business.

Financial results in the first half of 2023 were very positive, in line with this high demand. With revenue of around € 48.2 million, we generated a noticeable 50 % year-on-year increase. EBITDA in this period came to around € 4.5 million, which translates into an EBITDA margin of 9.1 % and an impressive rise of 137 % compared to the previous year.

As we are operating at full capacity, which required increased purchases of components and services particularly from the end of the first half of the year onwards, we are working on an efficiency and capacity programme. This programme is intended to help us handle the increased call-off volumes effectively and cost efficiently.

To secure this sustained positive revenue development and our future growth targets, investment is to be stepped up accordingly in the next few years. We will specifically invest the funds from our recent capital increase in expanding and automating our production capacity while maintaining our sound capital structure.

Despite persistent economic and geopolitical uncertainties, we are optimistic about the future. Our strong performance in the first half of the year and our stable order book corroborate our guidance for 2023 as a whole. We are still aiming to achieve significant consolidated revenue growth to € 88 million accompanied by EBITDA at the prior-year level (8.7 %).

Our success would not be possible without the support of our dedicated employees, valued customers and reliable suppliers and partners, and we would like to take this opportunity to thank them.

Of course, we would also like to thank you, our valued shareholders, for the trust and confidence you have placed in Delignit AG. We look forward to continuing to work together.

Blomberg, August 2023

Kind regards,

Markus Büscher	Thorsten Duray
CEO	CSO

Page 5 of 18 pages