CORPORATE NEWS

Daldrup & Söhne AG profitable with drilling services business in H1 2019 - Group loss drastically reduced

- Total operating performance of 22 million euros at previous year's level

- Drilling services business generates EBIT of EUR +0.4 million

- Order situation remains good, order backlog at EUR 43 million

- Group realignment to be driven forward

- Forecast 2019 AG: approx. 39 million euros total output, EBIT margin 2% to 5%

- Forecast 2019 Group: approx. 40 million euros total output, balanced EBIT result

Grünwald / Ascheberg, October 1, 2019 - The drilling technology and geothermal specialist Daldrup & Söhne AG (ISIN DE0007830572) achieved a total output of EUR 22.0 million at Group level in the first half of 2019 (previous year: EUR 22.0 million). The Daldrup Group's 2019 half-year result before interest, taxes, depreciation and amortization (EBITDA) amounted to EUR 0.8 million (EUR 3.1 million). The Daldrup Group achieved an operating result (EBIT) of EUR - 1.0 million (EUR + 1.2 million). The half-year loss in the Group (EAT) amounted to EUR 2.1 million (EUR +0.1 million) as of 30 June 2019. The loss at Group level in the first six months of 2019 was primarily attributable to the Geysir Group with an EBIT loss of around EUR 1.2 million. The Group's power plant activities are bundled in the Geysir Group.

Drilling services business with positive earnings contribution
It should be noted here that the result from the drilling services business in the AG has been significantly improved and the AG is operationally profitable. The EBIT of Daldrup & Söhne AG amounts to approx. 0.4 million Euro. Earnings after taxes amounted to around EUR 0.5 million. The effects of the 2018 financial year, which had contributed to the weak 2018 annual result, are no longer present.

Order backlog at 43 million Euro
The order situation in all business areas of Daldrup & Söhne AG remains good. The order books are well filled: By the end of August 2019, the order backlog had reached around 43 million euros, and the order pipeline - defined as contract potential assessed with probabilities of occurrence and currently under negotiation - reflects a value of around 89 million euros. This indicates continued high demand for geothermal drilling.

Negotiations on power plant shareholdings underway
In the first half of fiscal 2019, the power plant in Landau produced electricity to the planned, generally satisfactory extent. As already published on 19 July 2019, the wholly-owned subsidiary of Daldrup & Söhne AG, D & S Geothermie GmbH, sold around 49 % of the shares in Geysir Europe GmbH, Grünwald. The shareholdings in the Taufkirchen power plant held by the subsidiaries of Geysir Europe GmbH were excluded from this contractually. Talks with investors, the outcome of which also has an influence on the valuation of the assets of Daldrup & Söhne AG, have not yet been concluded. It is also planned that funds will be used to complete and commission the power plant in the 2020 financial year. These changes in the Geysir Group will turn the 2019 financial year and probably parts of the 2020 financial year into transition years at Group level.

Management Board realigns company
The Executive Board continues to work on adjusting the business model and work processes. In addition, the Group's organizational structure, order controlling, management, risk recognition and reporting tools and the principles of the business model are being adapted in order to lead the Group reliably into the future. The first steps have already been taken. In addition, the operational and financial risks are to be reduced and adapted to the medium-sized orientation of the Daldrup & Söhne Group.

The Management Board is convinced that the strategic realignment, the strengthening of corporate structures and procedural changes will transform Daldrup & Söhne AG back into a profitable company.

Management Board substantiates forecast for 2019 financial year
For the financial years 2019 and 2020, the Executive Board expects satisfactory operating results at the AG level. With the current good order situation and the capacity utilisation of teams and drilling rigs, the Management Board assumes - despite the economic downturn - that Daldrup & Söhne AG will be able to present a significantly better result in the 2019 financial year than in the previous year with a total operating performance of at least EUR 39 million and an EBIT margin of 2 % to 5 %, with a major order invoiced as planned.

For the Group's 2019 financial year, the Management Board anticipates a total performance of around EUR 40 million and a balanced operating EBIT result.

Further details can be found in the published Group half-year report, which can be downloaded from www.daldrup.eu under Investor Relations.

About Daldrup & Söhne AG
Daldrup & Söhne AG (ISIN: DE0007830572, WKN: 783057) with a corporate history spanning more than 70 years is a specialist provider of drilling and environmental services and ranks as one of the leading companies in Germany. Its activities are divided into the business divisions Geothermics, Raw Materials & Exploration, Water Extraction as well as Environment, Development & Services (EDS). The Geothermics business division provides drilling services for near-surface geothermics (especially geothermal probes of heat pumps), along with drilling services for deep geothermics up to 6000 m, in order to utilise the geothermal energy accessible in this way for electricity and/or heat generation. In the Raw Materials and Exploration business division, the bores made by Daldrup & Söhne AG serve for exploring and developing fossil fuel deposits (especially coal and gas) as well as mineral resources and ores (e.g. copper and gold). The Water Extraction business division comprises well construction for the extraction of drinking, service, curative, mineral, boiler-feed or cooling water as well thermal brine. The Environment, Development & Services (EDS) business division comprises special environmental engineering services such as the hydraulic clean-up of contaminated sites, the drilling of gas extraction wells for recovering waste dump gas, the provision of groundwater quality measuring points or the installation of water purification plants.

The stake in Geysir Europe GmbH also gives the Daldrup Group its own fields of experience in the exploration of geothermal energy in the Bavarian Molasse Basin and in the Upper Rhine Plain. The existing project management and power station expertise means that all stages of value creation can be covered for a deep geothermics project.

The shares of Daldrup & Söhne AG are listed in the Scale (sub-segment in the open market of the Frankfurt Stock Exchange).

Disclaimer
This publication represents neither an offer for sale nor a call to submit a tender for the purchase or underwriting of securities. This publication and the information it contains is not intended for direct or indirect dissemination in or within the United States of America ("USA"), Canada, Australia or Japan.

Press & Investor Relations-Contact:

Daldrup & Söhne AG
Falk v. Kriegsheim
Fon +49 (0)2593-9593-29
Fax +49 (0)2593-9593-60
[email protected]

Bavariafilmplatz 7
82031 Grünwald/Geiselgasteig
www.daldrup.eu

Contact:
Daldrup & Söhne AG
Falk v. Kriegsheim
Fon +49 (0)2593-9593-29
[email protected]
www.daldrup.eu

Bavariafilmplatz 7
82031 Grünwald/Geiselgasteig