CORPORATE NEWS

Daldrup & Söhne AG operationally back in the profit zone

- Total output of 44.9 million euros remains at a high level

- EBIT at +1.5 million euros in the upper part of the forecast range

- Forecast 2022: Total output of 43 million euros, EBIT margin raised significantly to 4 % to 6 %

Oberhaching / Ascheberg, 1 June 2022 - Drilling technology and geothermal specialist Daldrup & Söhne AG (ISIN DE0007830572) tripled its consolidated sales to EUR 78.1 million (previous year EUR 26.2 million) in the financial year 2021 (1 January-31 December). Continued brisk demand for drilling services contributed to this jump in turnover, as did the invoicing of several major geothermal energy contracts. In the year under review, these included projects for the customers Stadtwerke München, Energieversorgung Schwerin, a research contract in the Munich area for the Ruhr University Bochum, and special deep drilling for the German Federal Company for Final Disposal (BGE) and the Swiss Nagra (National Cooperative for the Disposal of Radioactive Waste in Switzerland). Consequently, partially completed work decreased by 33.2 million euros, so that the company reported a total operating performance of 44.9 million euros (47.5 million euros). The Group's operating result before interest and taxes (EBIT), calculated according to the German Commercial Code (HGB), amounted to a pleasing EUR 1.5 million (EUR 1.9 million). Daldrup & Söhne AG thus exceeded the 2021 forecast for total operating performance (around 43 million euros) and achieved the EBIT result in the upper part of the range (0.9 to 1.7 million euros).

For the first time in many years, the Group reports a surplus of 0.8 million euros (loss of 5.2 million euros) for 2021. Earnings per share (EPS) thus amount to 0.13 euros (previous year's loss 0.87 euros).

Debt further reduced as planned
The equity ratio in the Group is a comfortable 49.3 % of the balance sheet total (previous year 47.3 %). The debt reduction of the Daldrup Group was consistently continued in the reporting year and liabilities were reduced to 18.4 million euros (previous year 19.0 million euros). As of the balance sheet date, receivables from customers and cash and cash equivalents remained almost unchanged at EUR 4.1 million (EUR 4.0 million) and EUR 3.0 million (previous year EUR 3.0 million) respectively. Trade payables also remained at a constant level compared to the previous year at 5.2 million euros.

Business model benefits from decarbonisation of heat generation
The Corona pandemic and the economic consequences of Russia's war against Ukraine have made it clear that the business model of Daldrup & Söhne AG is largely independent of economic cycles and is characterised by a long-term order environment for the provision of public services. The war in Ukraine has significantly increased public awareness of the need for an energy supply that is independent of fossil fuels, both for geostrategic and climate protection reasons.

The potential of geothermal energy as a renewable, base-load energy for the heating sector is enormous - so far geothermal energy covers only 1.5 percent of the total heat demand in Germany. In a study published at the end of April 2022, the Leibniz Institute for Applied Geophysics concludes that "Geothermal energy, consisting of near-surface geothermal energy with the use of ground-coupled heat pumps as well as deep geothermal energy, ... using established technologies, (can) cover up to 42 percent of the eco-heat for space heating and hot water in the future." Geothermal energy is one of the most efficient heating technologies. Moreover, it is available almost everywhere, whether as near-surface or deep geothermal energy, and is thus very well suited for a decentralised and base-load-capable heat supply.

Management Board confident for the business year 2022
In the reporting year, Daldrup & Söhne AG successfully continued on its path of financial and operational consolidation. Efficiency improvements in business operations were implemented and used to strengthen resources in the drilling business with investments in new drilling equipment. The demand for heating projects has been increasing noticeably since March 2022 - coming from an already high level. And not only in Germany but also in the other traditional markets in the Netherlands, Belgium and Switzerland. This applies to both shallow geothermal energy and deep geothermal energy projects for public utilities, municipalities and industrial clients.

Around Munich and in the eastern Molasse region, interest in larger deep geothermal projects for electricity and heat supply remains high. Municipalities and public utilities in northern Germany also want to expand their local and district heating networks with geothermal energy. Against this background, the Management Board of Daldrup & Söhne AG is confident that, if business progresses according to plan, it will generate a consolidated total output of around 42 million euros in the current year 2022 and achieve an EBIT margin of between 4 percent and 6 percent of total output resulting from the operating business. Despite the overall pleasing corporate development and the positive outlook, the Executive Board cannot rule out the possibility that the possible effects of a continuing or worsening Corona pandemic or a further intensification of the consequences of Russia's war against Ukraine in the current year will have a negative impact on the development of turnover and earnings.

Note
The Annual Report 2021 is available for download at https://daldrup.eu/de/ir/ under Corporate Reports 2022.

About Daldrup & Söhne AG
Daldrup & Söhne AG (ISIN: DE0007830572, WKN: 783057) with a corporate history spanning more than 75 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 6000 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 (sub-segment in the open market of the Frankfurt Stock Exchange).

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
Fax +49 (0)2593-9593-60
Bajuwarenring 17a [email protected]
82041 Oberhaching www.daldrup.eu