EQS-News: KATEK SE: EBITDA increased by 83% to almost EUR 33 million – “Phase Two” of the strategy has begun: Utilize achieved size to increase earnings

KATEK SE: EBITDA increased by 83% to almost EUR 33 million – “Phase Two” of the strategy has begun: Utilize achieved size to increase earnings

• Revenues increase after three quarters +18.6% compared to the previous year
• Gross margin (as a percentage of revenues) increased to over 30% again
• EBITDA after Q3 at EUR 32.7 million (+83.0%) and operating result (EBITDA adjusted) at EUR 28.0 million
• Solar - the largest business in the Systems & Products segment grew by 34% to over EUR 90 million
• Sales and earnings forecast for 2023 confirmed
• “Phase Two” of the KATEK strategy launched: transforming the size achieved into sustainable profitability

Munich, November 14th, 2023 – KATEK SE continues to grow strongly in the third quarter of 2023 and, at EUR 587.9 million, recorded revenues growth of 18.6% in the first three quarters compared to the same period of the previous year. With a gross margin (as a percentage of revenues) that has now improved to over 30% and another positive operating cash flow, KATEK is therefore fully within the target corridor. The strongest growth impetus came from the Systems & Products segment with almost 21% - in particular Solar - with 34% compared to the same period last year. The Electronics segment grew by around 16%, partly due to the recent acquisition in Alabama/USA.

The result of systematic material price negotiations following the easing of the materials crisis and consistent price enforcement with customers is reflected as planned in the gross margin, which increased by around 3.3 percentage points year-on-year to 30.5%. EBITDA (reported) even increased by 83% compared to the same period last year to EUR 32.7 million.

In addition to the strong operating business, the accounting treatment of the acquisition of US-based Nextek Inc. contributed to this: Based on the preliminary purchase price allocation, the purchase price in the course of the acquisition was EUR 7.7 million below the assets to be recognized, which led to a positive effect on earnings in the same amount. This is further evidence of the increases in value that KATEK has already achieved on several occasions as part of its acquisition strategy. The operating result (EBITDA adjusted) - which excludes this positive effect, among others - amounted to EUR 28.0 million in the first three quarters.

The working capital management program is also showing its effect: inventories were reduced by 13.1% compared to the previous year - adjusted for M&A effects. This makes a significant contribution to the strong operating cash flow of EUR 26.8 million. The reduction of inventories is therefore proceeding according to plan and will be continued systematically.

KATEK is Top 5 in Europe and is aiming for at least three quarters of a billion in revenues

KATEK's strategic goal of creating a significant player in the European electronics market has been successfully achieved. With its successful growth strategy, KATEK was able to secure second place in Germany and become one of the Top 5 electronics companies in Europe. Thanks to its local-for-local approach, the Group can serve customers on three continents - in Europe as well as in Asia and North America. KATEK covers the entire value chain from prototyping and co-development to the construction of complete end products.

From this strong starting position, “Phase Two” of the KATEK strategy now begins: The KATEK Group is sustainably converting the economies of scale it has achieved into above-average profitability through an excellent market reputation, degressive fixed costs and purchasing power. With revenues expected to reach three quarters of a billion in 2023 and a significant easing of the material crisis, all the prerequisites are in place. The management team's focus is now on raising economies of scale and converting them into profitability and cash flow.

The focus is on increasing operational efficiency in all areas. These include increased automation/robotization, a significant increase in added value in the above-average efficient locations, the use of artificial intelligence - as already in the self-developed BI software PCM (Predictive Cost Management) and an increase in the revenues share of the Systems & Products segment almost a quarter today to a third and more in the next few years. The start of production of the market standard-setting wallbox ghostONE in Leipzig and Malaysia, planned for 2024, will also contribute to this, for which there are already orders and framework agreements with major European OEMs in the eCharging sector.

Considering all relevant factors, the high operational capacity utilization regarding existing orders and the successful implementation of measures on the price and cost side, the management fully confirms the forecast given in the consolidated financial statements for 2022.

The complete quarterly statement as of September 30, 2023, is published on the KATEK SE website in the Investor Relations section.

Contact

KATEK Investor Relations
Ramona Kasper
Group Head Marketing & Communications
ir@katek-group.com
+ 49 160 970 88 676

About KATEK

KATEK Group, headquartered in Munich, is one of the fastest growing electronics companies in Europe and aims to make a decisive contribution to the "electronification of the world". KATEK is an end-to-end service provider for high-value electronics. The range of services covers the entire product life cycle. From the development of software and hardware, through rapid prototyping of electronic assemblies and production, to subsequent support of the process at the customer's premises, including logistics, after-sales and service activities.

3,700 employees at locations in Germany, Eastern Europe, North America and Asia produce the megatrends of the future. With its local-to-local approach, KATEK ensures proximity to the customer and at the same time paves the way to the global market. Market leaders from the fastest-growing industries - from electromobility to renewable energies to medical technology - rely on this strategy.

CEO & Co-Founder is Rainer Koppitz and CFO is Dr. Johannes Fues. For more information about KATEK, please visit https://katek-group.com.

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Forward-looking statements are based on current expectations and involve a number of known and unknown risks, uncertainties and other factors that may cause the actual results, levels of utilization, performance or achievements of the Group or the industries in which it operates to be materially different from those expressed or implied by such statements. Undue reliance should not be placed on forward-looking statements. The Group will not update or revise any forward-looking statements contained herein as a result of new information, future events or otherwise.