PRESS RELEASE : SMT Scharf AG: Revenue and earnings in 2020 significantly impacted by coronavirus and one-off effects

DGAP-News: SMT Scharf AG / Key word(s): Preliminary Results 
SMT Scharf AG: Revenue and earnings in 2020 significantly impacted by coronavirus and one-off effects 
2021-03-01 / 19:06 
The issuer is solely responsible for the content of this announcement. 
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SMT Scharf AG: Revenue and earnings in 2020 significantly impacted by coronavirus and one-off effects 
  . Group revenue of EUR 50.2 million in FY 2020 
  . Operating result (EBIT) negative at prospectively EUR -8.1 million due to impairment charges and China III 
Hamm, March 1, 2021 - SMT Scharf AG (WKN 575198, ISIN DE0005751986), one of the world's leading suppliers of customised 
transport solutions and logistics systems for underground mining, reports revenue of EUR 50.2 million for the 2020 
fiscal year on the basis of preliminary figures (2019: EUR 75.4 million). The significant decrease in revenue of 33.4% 
is mainly due to the considerably negative impact on business activities of the coronavirus pandemic and its economic 
consequences. At the same time, the approval of China III machines in the Chinese market was delayed, so that machines 
delivered to Chinese mining companies could not yet be recognised as revenue in accordance with IAS 18. 
Based on preliminary figures, the operating result (EBIT) dropped into negative territory and is expected to amount to 
EUR -8.1 million (2019: EUR 6.8 million). This is mainly due to the impairment charges of EUR 6.6 million recognised in 
the third quarter. As part of the repositioning of the Canadian subsidiary RDH Mining Equipment Ltd., inventories were 
also reviewed and, in some cases, classified as impaired in terms of their value. The revaluation of assets leads to an 
impairment charge of some EUR 5.1 million. In addition, impairment charges totalling EUR 1.5 million were recognised in 
relation to internally generated intangible assets for a total of three development projects. Furthermore, due to the 
still outstanding China III approval of machines delivered to Chinese mining companies, these could not yet be 
recognised as revenue in accordance with IAS 18. This also had a negative effect on the earnings trend and will lead to 
a further deterioration in EBIT compared with the most recently forecast EBIT in the range between EUR -6.0 million and 
EUR -6.5 million. 
Hans Joachim Theiss, CEO of SMT Scharf AG, comments on the current business situation: "Given the pandemic, demand in 
the global mining equipment market is expected to be further negatively affected in 2021. We anticipate growth drivers 
this year to derive especially from the Chinese market. We currently expect final approval for the China III machines 
to be granted in the first half of the year. We are maintaining an ongoing dialogue with the Chinese authorities to 
this end. In light of our high order book position, we consequently anticipate corresponding catch-up effects in the 
Chinese market over the course of the year." 
The complete report for the 2020 fiscal year will be published on March 31, 2021, in the Investor Relations area of 
www.smtscharf.de. 
Company profile 
The SMT Scharf Group develops, manufactures and services transportation equipment for underground mining as well as for 
tunnel construction. Its main products include captivated railway systems that are deployed worldwide, primarily in 
hard coal mines, as well as in mines for gold, platinum and other metals. Such systems are required in order to 
transport material and personnel with payloads of up to 48 tonnes and on gradients of up to 30 degrees. SMT Scharf also 
supplies the mining sector with chairlifts. Since 2018, SMT Scharf's diverse portfolio has also included rubber-wheeled 
diesel and electric vehicles for mining and tunnelling, including loaders, scissor lifts and underground trucks. As 
part of the further diversification of the business, the product range has been successfully expanded since 2019 to 
include electronic components and control systems for mining and other industries. Overall, the SMT Scharf Group is 
active with subsidiaries in eight countries, as well as commercial agencies worldwide. SMT Scharf generates a large 
share of its revenue in growing foreign markets such as China, Russia, Poland and South Africa. 
Contact 
Investor Relations 
cometis AG 
Thorben Burbach 
Phone: [phone] 
Fax: [phone] 
Email: [e-mail] 
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2021-03-01 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. 
The issuer is solely responsible for the content of this announcement. 
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Language:     English 
Company:      SMT Scharf AG 
              Römerstrasse 104 
              59075 Hamm 
              Germany 
Phone:        [phone] 
Fax:          [phone] 
E-mail:       [e-mail] 
Internet:     www.smtscharf.com 
ISIN:         DE0005751986 
WKN:          575198 
Listed:       Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, 
              Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange 
EQS News ID:  1172185 
 
End of News   DGAP News Service 
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1172185 2021-03-01

(END) Dow Jones Newswires

March 01, 2021 13:08 ET (18:08 GMT)