Wielton S A : Q1-Q3 2021 results

Results 1-3Q 2021

Wielton Group

November 2021

P U O R G N O T L E I W

Leading European player

• Manufacturer of trailers. semi-trailersand vehicle bodies for road transport and agriculture.
• One of the youngest and most dynamic companies in the sector- 25 years of operating.
• Multibrand - the Group based on strong local brands.
• Own, modern research and development facilities - in Poland, Germany and France.
• Extensive product portfolio produktowe - 12 of vehicle group, 800 configurations based on customer needs.
• International service network - 557 points in 30 countries
• Experienced staff of over 3,3 thousand people in the Group

2

Top 3

in Europe

Top 10

in the world

Pescara, IT

5 2 4

Commercial	Assembly	Production
companies	plants	centres

P U O R G N O T L E I W

Key events 1-3Q 2021

01.		The modernisation and investments carried out during lockdown in 2020 and continued in 2021 allow for the
	successive building of sales volumes (up 43.0%) and revenues (up 48.1%). The Group recorded double-digit
		sales increases in all key markets.
		However, the return to dynamic growth remains affected by record increases in raw material prices and
02.
	disruptions in the liquidity of component supplies, as well as lower availability of workers, particularly in France
		and the UK.
		Record and very rapid increases in raw material and component prices are putting pressure on margins, as it is
03.		very difficult to translate them into costs for customers in the short term due to the high value of the backlog.
	Despite this, the Group generated an EBITDA margin of 6.2% after the three quarters (although the margin is
		below the Management Board's expectations).
		Continue to mitigate the negative impact of the market environment on financial performance:
04.		• management of raw material supply contracts, including conclusion of long-term contracts when justified by
	expected market developments, intensification of activities aimed at supply diversification, purchases in

advance through spot transactions.

• cyclical increases in product prices, renegotiation of already concluded contracts with customers in selected markets.

05. Safe net debt to EBITDA ratio of 2.57 (vs. 3.8 at the end of 2020).

P U O R G N O T L E I W

3

Key data for 1-3Q 2021

O T L E I W

		Volume
		[units]
	16 426	+43,0%	16 011
		1-3Q
Q3	4 425		5 101
		11 199
		+24,1%
		3Q
Q2	6 234	4 112
	5 667
		2 926
Q1	5 767	4 161	5 243
	1-3Q 2019	1-3Q 2020	1-3Q 2021

Revenues

[PLN mn]

1 837,6	+48,1%	1 929,2
	1-3Q
511,4	1 302,7		620,8
		+27,2%
	488,1	3Q
686,3		675,4
	342,1
639,9	472,5		633,0
1-3Q 2019	1-3Q 2020		1-3Q 2021

EBITDA

[PLN mn]

119,3		120,2
33,9	+108,3%	28,6
	1-3Q
43,3	57,7	47,8
	-15,6%
	3Q
	33,9
42,1	6,1	43,8
	17,7
1-3Q 2019	1-3Q 2020	1-3Q 2021

P U O R G N

The Group generated record sales volumes and revenue in 3Q2021, helped by capacity strengthening and modernizations in 2020 and 2021. Margins were under pressure from industry-wide raw material and component price increases as well as availability constraints. A significant issue was the limited availability of human resources affecting production capacity particularly in the UK and France.

4

Key market factors putting pressure on margins

L E I W

Increases in raw material and component prices

• Record pace of price increases.
• Record steel prices - up 140% in 2021.
• Increases in prices of steel-based products up to 40% depending on the assortment.
• Record LME aluminum prices and premium ticket, up Q1 2021 to Q1 2022 by 67%.
• Increase in sea freight prices.

ACTIONS TAKEN

• Supplier diversification.
• Active analysis of contracting methods depending on quotations.
• Monitoring and negotiation of price increases and the moment of their implementation.
• Spot purchasing.

P U O R G N O T

Availability of components

• Restrictions on component availability.

•	Regulated quantities and availability of sheets.	•	Increasing supplier diversification.
•	Limited capacity of aluminium producers (transfer of production from Asia to Europe).	•	Increasing inventory.

• Delivery delays affecting the production of sub-suppliers.
• Pressure on early payments from suppliers.

Desychronizing sales price changes vs. component purchase price changes

• Component price increase dynamics higher than ability to immediately pass on prices to end customers.
• High backlog of orders - difficult to quickly translate price increases into product prices.
• High inertia in the process of introducing product price changes.

Restrictions on workers' availability - UK and France

• Cyclical increases in product prices.
• Renegotiation of existing contracts with customers in selected markets.
• Activate ways to recruit permanent and temporary employees.

5