DGAP-News: Nanogate Benefits From Dynamic Order Development

Nanogate Benefits From Dynamic Order Development

- Sales increased by around 28 percent to EUR 239.2 million in 2018

- EBITDA rose to EUR 24.2 million in 2018

- Dividend proposal of EUR 0.11 per share

- Implementation of the future-oriented NXI program successfully launched

Göttelborn, Germany, April 30, 2019. Nanogate SE, a leading global technology company for design-oriented, multifunctional components and surfaces, continued its dynamic business development in the previous fiscal year. The Group exceeded its sales forecast and achieved its EBITDA target. With dynamic order development in the first few months of the new fiscal year, Nanogate has confirmed the forecast for 2019 as well as the medium-term targets for 2025.

Ralf Zastrau, CEO of Nanogate SE: "In 2018, we strengthened Nanogate's market position and sales potential, while tapping into additional markets, significantly expanding our design and engineering expertise, and implementing our innovation offensive. The Group achieved important strategic, financial and operational objectives and recorded satisfactory overall business development."

Order Base of Over EUR 600 Million

The order base expanded once again in 2018 and in the first few months of the new year, and it exceeded EUR 600 million in April 2019, based solely on the current and next two years. Sales in 2018 increased during the reporting period by roughly 28.4 percent to EUR 239.2 million (previous year: EUR 186.2 million). The export rate rose to 69 percent (previous year: 60 percent). The overall performance (sales, changes in inventories, own work capitalized, other operating income) increased to EUR 251.2 million (previous year: EUR 190.9 million).

Despite incurring some particularly high costs in the fiscal year - resulting, for example, from the innovation offensive and start-up costs for new major orders as well as transaction and integration costs - the operating result (EBITDA) increased to roughly EUR 24.2 million (previous year: EUR 21.6 million). The investments, purchase price allocations and innovation offensive are reflected in increased amortization and own work capitalized. The EBITA amounted to EUR 10.8 million (previous year: EUR 10.6 million), while the EBIT totaled EUR 6.8 million (previous year: EUR 7.3 million). The consolidated net income was EUR 1.4 million (previous year: EUR 2.8 million), with earnings per share of EUR 0.29 (previous year: EUR 0.64).

The course of expansion also shaped the Group's financial position as planned. The operating cash flow amounted to EUR 18.4 million (previous year: EUR 14.9 million) and was marked by factors including the expansion of working capital for the preparation for new orders. In this context, high-quality production resources (tools) were commissioned by Nanogate in 2018 for which the customer pays at a later date. This had a significant impact on the working capital in 2018. Cash flow from investing activities totaled EUR -40.9 million (previous year: EUR -51.4 million). The balance sheet total increased to EUR 338.4 million (previous year: EUR 235.1 million) due in part to the new sites. The equity ratio was 33.2 percent (previous year: 39.9 percent).

Future-oriented Program Launched

Since the beginning of the year, Nanogate has been implementing the future-oriented Nanogate Excellence International (NXI) program, the goal of which is to make the Group more efficient, generate synergies and strengthen internationality. With the far-reaching measures from the future-oriented NXI program, additional international market development, the strong order base and the broad technology portfolio, the Group intends to increase the operating result and free cash flow significantly more than sales - which should grow to more than EUR 500 million by 2025 - in the medium term following high initial costs. In the process, Nanogate would also like to expand the industrial business to a much higher degree to EUR 200 million. In parallel, the operating result (EBITDA) should increase to at least EUR 75 million, which would raise the EBITDA margin to 15 percent. Nanogate also expects an increase in free cash flow in the same period.

Outlook for 2019

For 2019, Nanogate is expecting a transitional year and an organic increase in sales to more than EUR 250 million in a challenging market. In view of increasing start-up costs for numerous new major orders and the implementation of the future-oriented NXI program as well as potential noncash expenses, a consolidated net loss in the low single-digit million range is expected. The operating result (EBITDA) should, however, remain stable at the previous year's level. As of 2020, the Group would like to reach a clearly profitable growth course again, and expects significant improvement in the operating result (EBITDA) as well as a positive consolidated net income.

"In this transitional year, we are organizing the Group more efficiently with a variety of measures. Starting in 2020, the strong order situation and the measures from our future-oriented NXI program will begin to pay off in the form of increasing profitability. As a leading global technology company for design-oriented, multifunctional components and surfaces, we believe Nanogate is in a strong position. We focus on promising growth markets such as artificial metals based on metallized plastics, new mobility and intelligent surfaces. Thanks to an outstanding order base, we have a good overview of the course of business," explains CEO Zastrau.

Contact
Christian Dose
Financial Press and Investors
WMP Finanzkommunikation GmbH
Tel. +49 69 57 70 300 21
nanogate@wmp-ag.de
 
Juliane Wernet
Nanogate SE
Zum Schacht 3
66287 Göttelborn | Germany
Tel. +49 6825 9591 223
juliane.wernet@nanogate.com

www.nanogate.com
twitter.com/nanogate_se

Nanogate SE

Nanogate (ISIN DE000A0JKHC9) is a leading global technology company for design-oriented, multifunctional components and surfaces. The Group employs around 1,700 people. Nanogate develops and produces design-oriented surfaces and components and enhances them with additional properties (e.g. nonstick, scratchproof, anticorrosive). The Group has first-class references (e.g. Airbus, Audi, August Brötje, BMW, BSH Hausgeräte, Daimler, FILA, Ford, Fresenius, GM, Jaguar, Junghans, Porsche and Volkswagen). Several hundred mass production projects for customers have already been implemented successfully. The Nanogate Group is represented on both sides of the Atlantic with its own production facilities.

True to its slogan "A world of new surfaces," Nanogate is a long-standing innovation partner who opens up the diverse possibilities offered by new materials to companies in a wide range of industries. It aims to improve customers' products and processes and to provide environmental benefits by using multifunctional surfaces, such as those made of plastic or metal, and innovative plastic components. The Group focuses on attractive applications, primarily for the mobility, aviation, home appliances, interior, leisure, and medical sectors - its target industries. As a systems provider, Nanogate broadly covers the value chain: design and engineering, materials development for surface systems, series coating of various different substrates as well as the production and enhancement of complete plastic components. The main value drivers are the opening up of international markets and the development of new applications, particularly for the strategic areas of glass-like (N-Glaze) and metallized surfaces (N-Metals).

Disclaimer

This publication constitutes neither an offer to sell nor an invitation to buy securities. The shares in Nanogate SE (the "Shares") may not be offered or sold in the United States or to or for the account or benefit of "U.S. persons" (as such term is defined in Regulation S under the U.S. Securities Act of 1933, as amended (the "Securities Act")). No offer or sale of transferable securities is being made to the public.