InTiCa Systems AG: Interim Report for 3M 2021 published - Pent-up demand and new orders for serial production catalysts for the highest quarterly sales in the company's history

57.5% rise in Group sales

EBIT margin improved to 4.7% (3M 2020: 3.1%)

High order backlog but uncertainties due to unsteadiness of supply chains and corona pandemic

Passau, May 20, 2021 - InTiCa Systems AG (Prime Standard, ISIN DE0005874846, ticker IS7) today published the interim report for the first three months of 2021. Compared with the prior-year period, which was hardly affected by the coronavirus pandemic, Group sales grew by an impressive 57.5% to almost EUR 29 million. At the same time, the operating result more than doubled and the EBIT margin improved significantly to 4.7%.

"Following a strong end to 2020, the tailwind continued into the new financial year. Orders on hand, order call-offs and capacity utilization remained high in the first three months of 2021 and were the catalysts for the highest quarterly sales in the company's history. As well as some outstanding order call-offs from the previous year, the positive development in the first quarter was driven chiefly by a rise in new orders for serial production and samples. In response to the increase in applications for our products and the increasing industrialization of the Group, in the reporting period we decided to rename the Automotive Technology and Industrial Electronics segments "Automotive" and "Industry & Infrastructure". This has not affected the allocation of Group sales between the segments", comments Dr. Gregor Wasle, CEO of InTiCa Systems AG the business development.

Earnings, asset and financial position

Group sales increased by 57.5% year-on-year to EUR 28.8 million in the first three months of 2021 (3M 2020: EUR 18.3 million). In the Automotive (previously Automotive Technology) segment, sales rose 50.0% year-on-year to EUR 21.2 million (3M 2020: EUR 14.1 million) while sales in the Industry & Infrastructure (previously Industrial Electronics) segment increased by 83.6% to EUR 7.5 million (3M 2020: EUR 4.1 million).

While the ratio of material costs to total output at 64.8% was clearly higher than in the previous year as a consequence of a shift in the product mix towards more material-intensive products and tense supply chains, the personnel expense ratio (including agency staff) dropped considerably from 22.9% to 19.0%.

EBITDA (earnings before interest, taxes, depreciation and amortization) increased by 38.1% to EUR 2.8 million (3M 2020: EUR 2.0 million), with the EBITDA margin slightly below the previous year's level at 9.6% (3M 2020: 10.9%). EBIT (earnings before interest and taxes) rose by 140.8% to EUR 1.3 million (3M 2020: EUR 0.6 million), so the EBIT margin improved from 3.1% to 4.7%. At segment level, Automotive reported EBIT of EUR 0.9 million in the first three months of 2021 (3M 2020: EUR 0.4 million) and the Industry & Infrastructure segment reported EBIT of EUR 0.4 million (3M 2020: EUR 0.2 million).

The financial result was minus EUR 0.1 million in the reporting period (3M 2020: minus EUR 0.2 million), and tax expense was EUR 0.2 million (3M 2020: EUR 0.1 million). Group net income therefore amounted to EUR 1.0 million in the first three months (3M 2020: EUR 0.3 million). Earnings per share were EUR 0.23 (3M 2020: EUR 0.08).

The cash flow from operating activities was also slightly positive in the first three months of 2021 at EUR 16 thousand (3M 2020: minus EUR 22 thousand). Due to investments and scheduled repayments, the total cash flow in the reporting period was negative at minus EUR 1.7 million (3M 2020: minus EUR 1.6 million). The equity ratio decreased slightly to 31.2% in the reporting period (December 31, 2020: 31.7%).

Outlook

At the end of the first quarter of 2021, orders on hand were slightly above the very strong prior-year level at EUR 113.3 million (March 31, 2020: EUR 112.5 million). 80% of orders were for the Automotive segment (3M 2020: 76%). In the reporting period, the volume of order call-offs was very high due to pent-up demand. Given the heightened uncertainty about the development of the coronavirus pandemic, it is not possible to make a definitive assessment as to whether orders will be called off customers on this scale in the remainder of the year.

"The series solutions already offered by InTiCa Systems add credibility to our mission of becoming a provider of e-solutions technology. Both segments are benefiting equally from this. While e-mobility has long been a focus of attention as a future technology, end-to-end electrification, digitalization and automation are now becoming more significant for industry and infrastructure. The use of modern plastics technologies, advanced winding processes and connection technologies, fully automated product tests and innovative assembly and automation technologies have given us a solid foundation on which we can build through targeted investment in development, technology and manufacturing", comments Günther Kneidinger, Member of the Management Board.

Taking into account the particular challenges of 2021 and assuming that the economic environment is stable and the development of the pandemic is moderate, at the present time the Board of Directors still expects Group sales rise to between EUR 85.0 million to EUR 100.0 million in 2021, while the EBIT margin should be between 3.5% and 4.5%. Depending on the product portfolio, the material cost ratio should be optimized further in both segments and the equity ratio should remain stable. However, uncertainty remains high and unforeseeable negative effects of the unsteadiness of global supply chains as well as the pandemic could affect suppliers, have a direct impact on InTiCa Systems, or affect its customers, resulting in an inability to meet expectations.

The complete interim report for 3M 2021 is available for download from the Investor Relations section of InTiCa Systems' website at www.intica-systems.com.

InTiCa Systems AG

The Board of Directors

CONTACT Dr. Gregor Wasle | CEO
TEL +49 (0) 851 - 966 92 - 0
FAX +49 (0) 851 - 966 92 - 15
EMAIL [email protected]

About InTiCa Systems:

InTiCa Systems is a European leader in the development, manufacture and commercialization of inductive components, passive analogue switching technology and mechatronic assemblies. It operates in the Automotive Technology and Industrial Technology segments and has about 950 employees at its sites in Passau (Germany), Prachatice (Czech Republic) and Silao (Mexico).

The Automotive Technology segment focuses on innovative products that raise the comfort and safety of cars, improve the performance of electric and hybrid vehicles and reduce carbon emissions. InTiCa Systems' Industrial Electronics segment develops and manufactures mechatronic assemblies for the solar industry and other industrial applications.

Forward-looking statements and predictions

This press release contains statements and forecasts referring to the future development of InTiCa Systems AG which are based on current assumptions and estimates by the management that are made using information currently available to them. If the underlying assumptions do not materialize, the actual figures may differ substantially from such estimates. Future developments and results are in fact dependent on a large number of factors; they contain different risks and imponderables and are based on assumptions that may not be accurate. We neither intend nor assume any obligation to update forward-looking statements on an ongoing basis as these are based exclusively on the circumstances prevailing on the date of publication.