Delignit AG adjusts guidance for fiscal year 2019

Blomberg, 29 August 2019. Delignit AG (ISIN DE000A0MZ4B0), leading manufacturer of ecological, hardwood-based products and system solutions, has adjusted its revenue and earnings guidance for fiscal year 2019. As things stand, consolidated revenue is expected to increase by only around 6 % to over EUR 64 million, after the original guidance assumed revenue of EUR 70 million. The EBITDA margin is now forecast at between 6 % and 7 % (after originally 9.3 %).

In the Automotive target market, especially in the commercial vehicle and motor caravan industries, the markets appear relatively stable and the newly acquired OEM contracts continue to offer Delignit AG good conditions for further revenue growth. However, the revenue volume forecast for the fiscal year was reduced by special call offs that were originally advised but not made in the announced volume. In Technological Applications, Delignit AG is seeing a recovery in enquiries from the currently low level.

In addition to the volume effects described, earnings were reduced in the first half of the year in particular by the newly acquired serial supply contract from Delignit AG's new motor caravan market. This was and is characterised by high start-up investments and unplanned additional expenses from short-notice order changes. Against the backdrop of the growth momentum from special call offs originally expected in the Automotive target market, capacity adjustments were also made whose follow-up costs will likewise adversely affect earnings over the entirety of fiscal year 2019.

Thanks to an initially strong start to the year, Delignit AG has achieved the highest half-year revenue in the company's history at EUR 32.3 million (previous year: EUR 29.4 million). The margin of earnings before interest, taxes, depreciation and amortisation (EBITDA margin) is 6.9 %, down on the previous year's 9.9 %. Not including the loss from the motor caravan business, the EBITDA margin would have been around 9 %. In the first half of 2019, EBITDA therefore amounted to EUR 2.4 million after EUR 2.9 million in the previous year. Delignit AG generated earnings of EUR 0.10 per share in the first half of 2019, after EUR 0.17 in the same period of the previous year.

The full half-year report will be published on 30 August 2019, when it will be available from the Investor Relations section of the company's website at www.delignit.com.

Further information is available online at www.delignit.com.

Contact:
Delignit AG
Königswinkel 2-6
32825 Blomberg
Germany
Tel. +49 5235 966-156
Fax +49 5235 966-351
E-mail: [email protected]