CORPORATE NEWS

Daldrup & Söhne AG significantly increases earnings with successful drilling services business in H1 2020

- Total output of 23 million EUR 5.5 % above previous year

- EBIT of TEUR 550 (previous year TEUR -977) generated

- Order situation satisfactory, orders on hand at EUR 27 million

- Realignment of the Group bears first fruits

- Equity ratio of 51.7 % (previous year 37.9 %)

- Group forecast 2020: at least EUR 40 million total output,
EBIT margin 2% to 4%

Oberhaching / Ascheberg, October 2, 2020 - The drilling technology and geothermal specialist Daldrup & Söhne AG (ISIN DE0007830572) achieved a total output of EUR 23.2 million (previous year EUR 22.0 million) in the first half of 2020 at group level. This represents a pleasing increase of 5.5 percent. The Group improved half-year earnings before interest, taxes, depreciation and amortization (EBITDA) as at June 30, 2020 by 116 percent from EUR 0.8 million in the previous year to EUR 1.7 million. At the operating level, the Group achieved a positive result (EBIT) of EUR 550 thousand (EUR -977 thousand). Consolidated net income for the first half year (EAT) was EUR 129 thousand (EUR -2.1 million).

The positive development in the Group in the first half of 2020 is on the one hand the result of a lively drilling business in all business units and well-filled order books. On the other hand, the sale of the Geysir Europe Group, which was completed in mid-January 2020, significantly relieves the Daldrup Group. The debt has been significantly reduced, cash outflows to the Geysir Group and to the geothermal power plants no longer occur, and the company is re-focusing its operating resources - with visible and measurable success - entirely on its core business.

Andreas Tönies, Spokesman of the Executive Board, comments on the half-year results: "With the positive earnings figures from the drilling business, we are showing that the sale of the Geysir Group was the right step. We have regained operational and financial leeway. We will continue to rapidly modernize and strengthen the company organization. For the next few years we are confident that we will be able to re-establish Daldrup & Söhne AG as a profitable competitor in the structural growth market within the heat energy transformation as part of the energy system transformation".

Order backlog of 27 million EUR ensures capacity utilization well into 2021
The order situation in all business areas of Daldrup & Söhne AG remains satisfactory. The order books are well filled: At the end of September 2020 the order backlog reached 27.3 million EUR (45.9 million EUR). The order pipeline - defined as contract potential assessed with probability of occurrence and currently under negotiation - reflects a value of around 119 million EUR (89 million EUR). The high demand comes from Germany, Switzerland and the Benelux countries, both from municipal authorities and private investors and companies. Major existing drilling contracts include Nagra in Switzerland, Luttelgeest in the Netherlands and a heating project in northern Germany. A large proportion of the work is expected to be completed by the end of 2020 and can therefore be booked in the 2020 financial year in terms of sales and earnings. The Raw Materials & Exploration, EDS and Water Collection business units are well equipped with contracts. This means that the drilling business will be at capacity until well into 2021.

So far no negative impact from Covid-19 pandemic
To date, Daldrup has not experienced any significant negative impact from the corona pandemic. There have not been any cancellations of orders to date. Daldrup operates in a market characterized by investment decisions made one to three years before the start of a project. Thus, Daldrup & Söhne AG operates within the framework of secured budgets. In addition, investment decisions in energy supply for municipalities and private investors are guided by long-term considerations and are often part of services of general interest.

Profit and asset situation significantly strengthened
The income statement of the Daldrup Group as of the half-year reporting date is significantly affected by the sale of the Geysir Europe Group. Both scheduled depreciation and amortization as well as interest expenses of EUR 0.4 million (EUR 1.3 million) in the Daldrup Group have decreased significantly. The cost of materials ratio rose to 52.6 % (50.7 %) as a result of projects. The personnel expenses ratio fell to 18.3 % (20.8 %), partly because the number of employees was reduced in the course of the sale. Other operating expenses remained almost constant at 5.8 million EUR (5.9 million EUR). Cash on hand at the end of June 2020 was EUR 3.3 million (EUR 2.7 million). The equity ratio reached a comfortable 51.7 % of total assets. Daldrup reduced its liabilities to banks to 7.7 million EUR (8.7 million EUR) as of June 30, 2020.

Management Board confirms forecast for fiscal year 2020
Assuming that the Covid 19 pandemic does not worsen again in the markets relevant to Daldrup & Söhne AG and that supply bottlenecks or construction site closures do not occur and that the ongoing deep wells can be invoiced according to plan by the end of the year, the Management Board confirms the Group forecast for the 2020 financial year. Given the current order situation and continued capacity utilization of crews and drilling rigs, the Management Board assumes that at least a total output of EUR 40 million with an operating EBIT margin of between 2% and 4%.

Further details can be found in the published consolidated interim report as of June 30, 2020, which is available for download at www.daldrup.eu under Investor Relations / Company Reports / 2020.

About Daldrup & Söhne AG
Daldrup & Söhne AG (ISIN: DE0007830572, WKN: 783057) with a corporate history spanning more than 70 years is a specialist provider of drilling and environmental services and ranks as one of the leading companies in Germany. Its activities are divided into the business divisions Geothermics, Raw Materials & Exploration, Water Extraction as well as Environment, Development & Services (EDS). The Geothermics business division provides drilling services for near-surface geothermics (especially geothermal probes of heat pumps), along with drilling services for deep geothermics up to 6,000 m, in order to utilise the geothermal energy accessible in this way for electricity and/or heat generation. In the Raw Materials and Exploration business division, the bores made by Daldrup & Söhne AG serve for exploring and developing fossil fuel deposits (especially coal and gas) as well as mineral resources and ores (e.g. copper and gold). The Water Extraction business division comprises well construction for the extraction of drinking, service, curative, mineral, boiler-feed or cooling water as well thermal brine. The Environment, Development & Services (EDS) business division comprises special environmental engineering services such as the hydraulic clean-up of contaminated sites, the drilling of gas extraction wells for recovering waste dump gas, the provision of groundwater quality measuring points or the installation of water purification plants.

The shares of Daldrup & Söhne AG are listed in the Scale segment of the Frankfurt Stock Exchange (sub-segment in the open market).

Disclaimer
This publication represents neither an offer for sale nor a call to submit a tender for the purchase or underwriting of securities. This publication and the information it contains is not intended for direct or indirect dissemination in or within the United States of America ("USA"), Canada, Australia or Japan.

Press & Investor Relations contact
Daldrup & Söhne AG
Falk v. Kriegsheim
Fon +49 (0)2593-9593-29

Bajuwarenring 17a [email protected]
82041 Oberhaching www.daldrup.eu