2021 annual financial statements Adval Tech posts significantly higher total income and improved profitability

Ad hoc announcement pursuant to Art. 53 LR

Niederwangen, March 25, 2022, 7.00 a.m. - In the 2021 financial year, the Adval Tech Group significantly improved its key figures compared with the previous year. Adval Tech achieved total income¹⁾ of CHF 170.8 million (2020: CHF 140.8 million, +21.3%). EBITDA¹⁾ came to CHF 17.0 million (2020: CHF 15.2 million, +12.2%), EBIT¹⁾ to CHF 9.2 million (2020: CHF 6.7 million, +37.3%) and net profit to CHF 5.9 million (2020: CHF 4.3 million, +36.8%). Adval Tech increased its EBIT margin from 4.8% in 2020 to 5.4%.

Despite the drastic regulatory measures and restrictions associated with the global coronavirus pandemic, the Group again secured various new orders from existing and new customers and launched innovative new projects at all its sites.

Market development
While demand in the automotive industry continued to recover significantly, the industry was nevertheless faced with shortages of raw materials and certain vendor parts, as well as the related sharp price increases and supply bottlenecks. For example, the shortage of microelectronic components such as semiconductors caused many car manufacturers to scale back production, which particularly affected Adval Tech's sites in Hungary and Mexico. In Brazil, Adval Tech had to accept several price increases for steel, and in Switzerland and Germany, the Group was forced to place a strain on its net current assets in order to ensure the availability of raw materials and vendor parts. Under these circumstances, the Adval Tech Group's results for the year are particularly pleasing.

Market success
In the metal sector, in the year under review Adval Tech was able to further expand its cooperation with a leading European premium automotive manufacturer, which was first launched in spring 2018. This included, amongst other things, a follow-up order for brake disk covers to be mass-produced in Germany from 2022 to 2032, additional structural parts for production in Hungary, and an order for the manufacture of gasoline high-pressure pumps in Switzerland.

In the plastics sector, the Adval Tech Group has expanded its plant in Querétaro, Mexico, doubling the production area from around 3300 square meters to around 6600 square meters. Adval Tech's local workforce is expected to grow from around 70 to between 150 and 200 here in the next few years. Adval Tech has been nominated for extensive new orders from existing and new customers, not only for Mexico, but also for the sites in Hungary and China. In the field of related applications, Adval Tech acquired additional orders for the site in Malaysia in 2021 and started production of blood analysis cards at the Swiss site in Grenchen.

In addition, Adval Tech received several orders for high-speed presses again in 2021.

Outlook
It is very difficult to provide an outlook also for 2022. The major uncertainties associated with the coronavirus pandemic and the availability of vendor parts and raw materials, particularly in the automotive industry, remain. The war in Ukraine has again significantly aggravated the situation and extended the corresponding risks to various other areas. Over the coming months, car manufacturers will be forced to deal with scenarios in which they have to curb production or even close it down temporarily. Despite the good order situation, in many cases this also means planning uncertainty and the threat of interruptions in production for the Adval Tech Group. The Group is therefore refraining from issuing a specific outlook for 2022 and will continue to exercise restraint with regard to costs and capital expenditure. It will continue to focus on implementing the acquired projects right first time.

Media and financial analysts' conference
The media and financial analysts' conference scheduled for April 27, 2022, will not take place due to the current coronavirus situation. The Adval Tech Group's Annual Report 2021 will be available for download from the website www.advaltech.com from 7 a.m. on April 27, 2022. The associated media release will also be sent out at 7 a.m. Group Executive Management will be available for one-on-one meetings with interested financial analysts and media representatives from 9 a.m. onwards.  

Annual General Meeting
The Annual General Meeting of Adval Tech Holding Ltd on May 19, 2022, will be held at the headquarters of Adval Tech Holding AG in Niederwangen. Attendance will be restricted to the Board of Directors, employees of the Adval Tech Group designated by the Board of Directors, the independent proxy and a representative of the auditors. Shareholders are requested to delegate their votes to the independent proxy. At the Annual General Meeting on May 19, 2022, the Board of Directors will propose a distribution of CHF 2.00 per share.

1) Alternative Performance Measure: see Note 3 on page 79 of the Annual Report 2020

Contact
Markus Reber, CFO, phone +41 31 980 82 70, markus.reber@advaltech.com
Valeria Poretti, Head Corporate HR/Communication, phone +41 31 980 82 66, valeria.poretti@advaltech.com

Background information about the Adval Tech Group
Adding value through innovation - that's what Adval Tech stands for. The Adval Tech Group is a global industrial supplier of technologically sophisticated components and subassemblies made of metal and plastic. It focuses on selected activities, especially in its main target market, the automotive industry. As a supplier and value-adding partner, Adval Tech covers the entire value chain from product development to prototyping, to mold and tool development, and through to component production and assembly. Headquartered in Switzerland, the Adval Tech Group operates a total of nine production plants. These are located in Switzerland, Germany, Hungary, China, Malaysia, Mexico and Brazil.

Download ad hoc announcement pursuant to Art. 53 LR
www.advaltech.com/en/group/investors/company-news/ad-hoc-notices

Agenda
April 27, 2022 - Publication of the 2021 Annual Report (media and financial analysts' conference cancelled)
May 19, 2022 - General Meeting of Shareholders 2022 (without presence)
End of August 2022, announcement of semi-annual results 2022

Except for the historical information contained herein, the statements in this media release are forward-looking statements that involve risks and uncertainties.