DGAP-Ad-hoc: Leoni AG / Key word(s): Preliminary Results
Leoni AG: Sales, free cash flow and EBIT before exceptional items as well as before VALUE 21 costs significantly above
market expectations in Q1; Increased outlook for sales and earnings in 2021
03-May-2021 / 13:33 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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Sales, free cash flow and EBIT before exceptional items as well as before VALUE 21 costs significantly above market
expectations in Q1; Increased outlook for sales and earnings in 2021
Nuremberg, 3 May 2021 - Based on preliminary figures of Leoni AG, Nuremberg (ISIN: DE0005408884 / WKN: 540888) sales in
the first quarter of the current financial year amounted to EUR 1.35 billion (Q1 2020: EUR 1.13 billion), EBIT before
exceptional items as well as before VALUE 21 costs was EUR 39 million (Q1 2020: EUR -17 million) and free cash flow was
EUR -100 million (Q1 2020: EUR 0 million, among other things due to a positive effect from sale-and-leaseback
transactions amounting to EUR 70 million). These key figures are significantly above current market expectations. In
addition, the Board of Directors is raising its outlook for sales and earnings for the 2021 financial year.
Leoni will continue to face multiple challenges during the financial year. These include in particular the ongoing
Covid-19 pandemic and continued constraints in global supply chains impacting the availability of critical parts,
semiconductor components and raw materials.
Nevertheless, in its current assessment for 2021, the Board of Directors now expects a significant year-on-year
increase in Group sales (2020: EUR 4.1 billion) (previously: only in the low double-digit percentage range). This is
based on the stronger than previously expected continuation of the recovery in demand in the automotive and industrial
sectors and the significantly higher copper price, which will not have a significant impact on earnings.
From today's perspective, Group EBIT before exceptional items as well as VALUE 21 costs is expected to improve
significantly compared to the previous year (2020: EUR -59 million) and should at least reach break-even. The key
positive factors here are the higher than previously expected increase in sales as well as positive effects from the
VALUE 21 programme and the restructuring concept.
The Board of Directors continues to expect free cashflow to decrease significantly compared to the previous year (2020:
EUR -69 million) and this key figure will continue to be closely monitored. Among the reasons for this expected free
cashflow development are the increase in net working capital due to the stronger than expected sales recovery and also
that some exceptional items in connection with the restructuring concept were already booked in 2020 but will become
cash-effective in 2021. An example in that context are the restructuring provisions booked for the restructuring at the
Stolberg site. Effects from possible further divestments or acquisitions are not included in the outlook.
The final results of the first quarter of 2021 will be published on 12 May 2021 as planned.
***
This announcement contains certain forward-looking statements that are based on the current assumptions and forecasts
of Leoni AG's management. Various known and unknown risks, uncertainties and other factors could cause Leoni's actual
results, its financial position, growth or performance to differ materially from the estimates presented herein. Leoni
assumes no responsibility whatsoever to update such forward-looking statements or to conform them to future events or
developments. Explanations and reconciliations of key financial figures used can be found in the 2020 Annual Report of
Leoni AG (available at https://publications.leoni.com/fileadmin/corporate/publications/reports/2021/
leoni-annual-report-2020.pdf?1615935127), in particular on pages 56, and 102ff..
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03-May-2021 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and
Press Releases.
Archive at www.dgap.de
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Language: English
Company: Leoni AG
Marienstraße 7
90402 Nuremberg
Germany
Phone: +49 (0)911 20 23-234
Fax: +49 (0)911 20 23-382
E-mail: veroeffentlichung@leoni.com
Internet: www.leoni.com
ISIN: DE0005408884
WKN: 540888
Indices: SDAX
Listed: Regulated Market in Berlin, Dusseldorf, Frankfurt (Prime Standard), Hamburg, Hanover, Munich, Stuttgart;
Regulated Unofficial Market in Tradegate Exchange; Madrid
EQS News ID: 1191786
End of Announcement DGAP News Service
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1191786 03-May-2021 CET/CEST
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https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=show_t_gif&application_id=1191786&application_name=news
(END) Dow Jones Newswires
May 03, 2021 07:40 ET (11:40 GMT)