Satisfactory business development in 2022

Outlook for the fiscal year 2023 further specified

Carlo Lazzarini (CEO): "2022 was a successful year for us. Several of our locations exceeded key revenue thresholds. For the first time, the PWO Group realized revenues of more than EUR 500 million. And with the highest volume of new business in the company's history, we underscored the strength of our market position. Innovations in metal forming at the limits of what is technologically possible - this is what PWO stands for."

Oberkirch / Valašské Meziříčí / Kitchener / Puebla / Suzhou Oberkirch, March 7, 2023 - The PWO Group was able to realize a satisfactory business development in fiscal year 2022 and exceed its forecasts, as already reported for key figures in an ad hoc announcement on February 23, 2023.

We now publish the preliminary and unaudited figures for 2022 as follows:

•  Revenue: EUR 530.8 million (PY EUR 404.3 million)
•  EBIT before currency effects: EUR 27.5 million (PY EUR 22.1 million)
•  Capital expenditure: EUR 19.8 million (PY EUR 16.2 million)
•  Free cash flow: EUR -5.8 million (PY EUR 4.9 million)
•  Equity ratio: 37.8 percent (December 31, 2021: 33.6 percent)
•  Net leverage ratio: 2.3 years (December 31, 2021: 2.2 years)
•  Lifetime new business volume: around EUR 890 million (PY around EUR 570 million)

Increase in revenue and further growth investments planned for 2023

Furthermore, we specify the outlook already published on February 23, 2023 for key figures as follows:
 

• Revenue: around EUR 550 million (PY EUR 530.8 million)
• EBIT before currency effects: EUR 20 to 23 million (PY EUR 27.5 million)
• Capital expenditure: around EUR 40 million (PY EUR 19.8 million)
• Free cash flow: negative in the mid single-digit million euro range (PY EUR -5.8 million)
• Equity ratio: flat (December 31,2022: 37.8 percent)
• Net leverage ratio: below 3.0 years (December 21, 2022: 2.3 years)
• Lifetime new business volume: EUR 400 to 500 million (around EUR 890 million)

New start-up and ramp-up of series production are expected to drive the PWO Group's growth in fiscal year 2023. As already reported, EBIT before currency effects will probably not reach the previous year's level because significantly increased purchase prices, some of which will be effective for a full twelve-month period for the first time, as well as higher personnel and energy costs, especially in Germany, will burden the earnings situation. Irrespective of this, we plan to press ahead with the expansion of our international locations.

The forecast for new business in 2023 is lower due to the high volume achieved in 2022. This is partly because we have already received orders expected for 2023 in 2022 and our customers will therefore have fewer high-volume orders to place in 2023. Therefore, the years 2022 and 2023 have to be considered in total. This still significantly exceeds the targets in the medium-term plan for this period.  

For reasons of prudence, we will continue to manage our investments strictly in the future and, depending on further global political and economic developments, regularly review our growth strategy for the coming years and realign it accordingly if necessary.

Our forecast is based on the assumptions that there will be no major disruptions in the supply chains in 2023, for example due to pandemic-related restrictions or economic sanctions, that energy will be available in sufficient quantities, and that there will be no significant deviations from the anticipated price developments.

Progress-Werk Oberkirch AG

The Executive Board

Contact:
Charlotte Frenzel

Investor Relations & Corporate Communications
T. +49 179 / 6904 237
M. [email protected]

PWO Group profile