EQS Group-Ad-hoc: Swiss Steel Holding AG / Key word(s): Quarter Results 
Swiss Steel Group develops distinctly positive in the first quarter and is on track with its transformation 
05-May-2021 / 07:00 CET/CEST 
Release of an ad hoc announcement pursuant to Art. 53 KR 
The issuer is solely responsible for the content of this announcement. 
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  . Sales volume in Q1 2021 of 510 kilotons up by 11.6 % compared with Q1 2020 457 kilotons, thanks to ongoing demand 
    in the automotive industry 
  . Order backlog in Q1 2021 of 684 kilotons with 58.7 % significantly higher than in Q1 2020, rise of 20.8 % on Q4 
    2020 with clear signs of recovery in mechanical and plant engineering 
  . Average sales price per ton in Q1 2021 down to EUR 1,475.8 from EUR 1,541.6 in Q1 2020, which is significantly 
    higher than in Q4 2020 at EUR 1,358.4 
  . Adjusted EBITDA in Q1 2021 raised significantly to EUR 44.5 million, compared with EUR 
    -6.1 million in Q1 2020, driven by the recovery on the markets accompanied by measures to cut costs and enhance 
    efficiency 
  . Free cash flow of EUR - 86.3 million in Q1 2021, slightly below the prior-year level of EUR - 87.6 million, due to 
    an increase in commodity prices coupled with a demand-driven rise in production volumes 
  . Net debt in Q1 2020 cut from EUR 639.9 million to EUR 522.5 million due to the capital increase; equity ratio 
    stabilized at 20.4 % 
  . Transformation program on schedule; integration of the Swiss Business Units progressing well 
  . The complaints and allegations of a former employee announced in the media release of March 8, 20201 proved to be 
    unfounded after forensic investigations by a renowned external auditing firm 
Outlook for fiscal year 2021: Given the improved order situation in the first half of the year, and depending on the 
further course of the COVID-19 pandemic, Swiss Steel Group expects to arrive at an adjusted EBITDA of more than EUR 100 
million. 
CFO & interim CEO Dr. Markus Böning commented: 'The cautiously optimistic trend in the automotive industry over the 
course of the fourth quarter of 2020 continued in the first quarter of 2021. In spite of foreseeable interruptions to 
production on the part of certain automotive manufacturers due to the shortage of semiconductors, demand remained 
positive. The lockdown measures imposed in some sales markets in response to COVID-19 also had only a negligible 
impact. We are now seeing the anticipated recovery in mechanical and plant engineering, which is leading to improved 
sales and order volumes overall in our two main customer segments. While demand in the energy sector, especially for 
oil and gas, remains sluggish, positive signs are nevertheless emerging in this segment, accompanied by an uptick in 
requests for proposals. To address the increasing demand, we have decided to ramp up production. Price levels remain 
challenging, especially on the resource side. However, we have been able to negotiate price increases that will allow 
us to offset the rise in commodity prices. Short-time work has been reduced in almost all production areas, and we are 
making only sporadic use of this for specific product categories and production areas. Labor productivity rose year on 
year. With the ongoing implementation of our transformation program, we were also able to further improve our cost 
position, achieving significantly improved adjusted EBITDA as a result. With the completion of the capital increase in 
March 2021, we were able to significantly strengthen the capital structure and are now focusing on the execution of our 
transformation program, supported by a broader-based market recovery. The focus remains on liquidity and cost 
efficiency, but we will also support selective market opportunities with appropriate funding. For 2021, we expect to 
arrive at an adjusted EBITDA of more than EUR 100 million.' 
Key financial figures 
Swiss Steel Group                   Unit        Q1 2021     Q1 2020       ? in % 
 
Sales volume                        kilotons    510         457           11.6 
Revenue                             million EUR 751.6       704.5         6.7 
Average sales price                 EUR/t       1,475.8     1,541.6       - 4.3 
Adjusted EBITDA ^1)                 million EUR 44.5        - 6.1         - 
EBITDA                              million EUR 41.9        - 7.6         - 
Adjusted EBITDA margin              %           5.9         - 0.9         - 
EBITDA margin                       %           5.6         - 1.1         - 
EBIT                                million EUR 20.3        - 31.7        - 
Earnings before taxes               million EUR 9.6         - 43.7        - 
Group result                        million EUR 4.8         - 42.3        - 
Investments                         million EUR 13.9        14.6          - 4.8 
Free cash flow                      million EUR - 86.3      - 87.6        1.5 
                                    Unit        31.3.2021   31.12.2020    ? in % 
 
Net debt                            million EUR 522.5       639.9         - 18.3 
Shareholders' equity                million EUR 417.9       166.1         - 
Gearing                             %           125.0       385.2         - 
Net debt/adj. EBITDA LTM (leverage) x           n/a         n/a           - 
Balance sheet total                 million EUR 2,047.5     1,715.7       19.3 
Equity ratio                        %           20.4        9.7           - 
Employees as of closing date        Positions   9,929       9,950         - 0.2 
Capital employed                    million EUR 1,339.6     1,218.0       10.0 
                                    Unit        Q1 2021     Q1 2020       ? in % 
 
Earnings/share^ 2)                  EUR/CHF     0.00/0.00   - 0.02/- 0.02 - 
Shareholders' equity/share ^3)      EUR/CHF     0.14/0.15   0.08/0.09     - 
Share price high/low                CHF         0.286/0.234 0.340/0.126   -

^1) For the reconciliation from adjusted EBITDA to EBITDA, please refer to the Interim report 1st quarter 2021, page 14

^2) Earnings per share are based on the result of the Group after deduction of the portions attributable to non-controlling interests.

^3) As of March 31, 2021 and as of December 31, 2020

Lucerne, May 5, 2021 - The economic recovery that began at the end of the fiscal year 2020 continued in the first quarter of 2021. The rise in demand is reflected in significantly improved order and sales volumes. Accompanied by ongoing measures to cut costs and enhance efficiency, adjusted EBITDA rose markedly on the same quarter of the previous year, at EUR 44.5 million. The capital increase also bolstered the Group's capital structure and reduced net debt by 18.3 %. Business performance in the first quarter of 2021

At 510 kilotons, 11.6 % more steel was sold in the first quarter of 2021 than in the same quarter in the previous year (Q1 2020: 457 kilotons). This was mainly attributable to the 17.5 % increase in sales volumes of quality & engineering steel. Recovery in demand from the automotive industry is reflected in this product group. Sales volumes for tool steel also rose compared with the same quarter in the previous year. This uptrend was supported among other things by the positive development of crude oil prices.

Even though demand in the stainless steel product group likewise picked up compared with previous quarters, it still fell short of the sales volume in the same quarter in the previous year.

The average sales price per ton of steel was EUR 1,475.8 in the first quarter of 2021 and therefore fell short of the average price achieved in the same quarter in the previous year (Q1 2020: EUR 1,541.6 per ton). The price drop can be attributed primarily to the changed product mix, where quality & engineering steel now represents a higher share also but has a lower average sales price. At product group level, the sales prices of both quality & engineering steel and stainless steel were up compared with the same quarter in the previous year. This is caused by the rise in commodity prices, which led to higher prices due to the widespread use of surcharge mechanisms. In the tool steel product group, by contrast, prices fell compared with the previous quarter, which is primarily attributable to the changed product mix within this product category.

Given the lower average sales prices overall, revenue grew at a weaker pace than sales in the first quarter compared with the same quarter in the previous year. Revenue of EUR 751.6 million in the first quarter of 2021 represented a rise of 6.7 %. While revenue in the quality & engineering steel product group rose by 21.6 %, revenue for stainless steel fell by 5.5 % and revenue for tool steel by 3.7 %, despite higher sales volumes. By region, revenue in Europe increased by 8.1 % and revenue in Asia Pacific/Africa by 23.7 % versus the same quarter in the previous year. In these regions, especially in Italy and China, measures to mitigate the COVID-19 pandemic were introduced in the same quarter of the previous year at an earlier stage than in other regions. This had an adverse effect on the revenue in the same quarter of the previous year. The higher revenues in the first quarter of 2021 are primarily a reflection of the recovery in demand in the automotive industry. The America region failed to match the revenue achieved in the same quarter of the previous year, in spite of the emerging pickup in demand from the oil and gas industry.

Adjusted EBITDA was up significantly compared with the prior-year quarter, at EUR 44.5 million for the first quarter of 2021 (Q1 2020: EUR - 6.1 million). One-time effects amounted to EUR 2.6 million, attributable - among other things - to personnel-related one-time payments as well as to costs for the efficiency improvement program. Including these one-time effects, EBITDA amounted to EUR 41.9 million (Q1 2020: EUR - 7.6 million).

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