SBF AG publishes half-year report 2023 with an updated forecast 2023 and is confident about the further business development

Leipzig, 25 August 2023 – SBF AG (ISIN: DE000A2AAE22; WKN A2AAE2, "SBF"), a listed supplier of LED lighting systems for rolling stock, municipalities, railways and industry, has published its financial report for the first half of 2023. The company's performance was stable in a decidedly challenging market environment. SBF achieved sales at a continued high level, whereby the earnings were affected by disproportionately high expense items compared to the previous year. Therefore, the Executive Board is updating its revenue and earnings forecast for the 2023 financial year. The company expects revenue of between EUR 34 million and EUR 35 million and EBITDA of approximately EUR 1 million for 2023 as a whole.

Rudolf Witt, Member of the Executive Board of SBF AG: "We look back on an eventful first half-year in a difficult environment. In this market situation we have taken the opportunity to set the strategic course and make the SBF Group more robust and to broaden the depth of value creation and the product portfolio for the times ahead. Due to the challenging market conditions, we had to adjust our revenue and earnings forecast for the current financial year. However, the prospects in our markets remain extremely promising. We have positioned ourselves very well to seize opportunities that may arise and remain positive about the future."

Growth investments characterise 2023 half-year figures
In spite of the challenging environment, Group revenues for the first half of 2023 remained at a high level of EUR 16.9 million (H1-2022: EUR 17.7 million). Without considering one-off effects of acquisition and integration costs, EBITDA amounted to EUR 0.4 million (H1-2022: EUR 2.0 million). EBITDA was burdened in particular by a continued significantly higher cost level for material purchasing since the corona and supply chain crisis and by increased personnel expenses as a result of current project launches and project postponements by customers.

In this environment, the business field "Rolling Stock" proved to be resilient despite reduced earning power. Since the increased procurement costs can only be partially passed on to customers over the following years with a time lag, there is a negative effect on earnings for the first half of the year. Driven by the political initiatives to promote rail transport, however, the perspectives of the segment remain extremely positive. This is reflected not least in the development of the order backlog. This increased significantly by 48.1 % to EUR 42.5 million (30.06.2022: EUR 28.7 million). In addition, the strategic inventory was further expanded by 8.5 % to EUR 12.8 million (30.06.2022: EUR 11.8 million). This allows SBF to act flexibly and efficiently exploit market opportunities as they arise.

The development potential for the "Public and Industrial Lighting" business segment remains good. On one hand, municipalities are under increasing pressure to invest in modern, energy-efficient lighting systems as a result of the energy transition. On the other hand, SBF has positioned itself even better with the integration of Nordeon Lighting Solutions and the successful acquisition of AMS Software & Elektronik GmbH, a promising specialist in electronics manufacturing. The scheduled investments in machinery and equipment for innovative powder and wet paint coating will further increase the depth of added value. With these steps, SBF is positioning itself more broadly, strengthening the increasingly important local content value creation and reducing risks on the procurement side.

Well-positioned for the medium and long term with strategic decisions
With the above-mentioned investments, well-filled order books and the expansion of the depth of value creation, SBF has positioned itself strategically ideally for the medium and long term. Due to the persistently challenging general conditions, the company expects a temporary slowdown in growth momentum. As a result, the 2023 forecast for the SBF Group has been adjusted to revenue of between EUR 34 million and EUR 35 million and EBITDA of approximately EUR 1 million.

These target figures are below the previously communicated forecast of significant revenue growth to more than EUR 40 million and a rising EBITDA. While revenues in the "Rolling Stock" segment are developing as planned, temporary effects are evident in the "Public and Industrial Lighting" segment. These are based in particular on a weaker order situation due to the generally restrained market development caused by the economic situation, project delays and postponements of investment decisions. These factors lead to lower capacity utilisation in the short term and thus to a currently declining profit margin.

The 2023 half-year report is available on the company's website at https://www.sbf-ag.com/investor-relations/finanzpublikationen/.

About SBF Group:
SBF is a listed supplier of LED lighting systems for rail vehicles, municipalities, railways and industry. With its focus on energy-efficient LED lighting, SBF benefits from the megatrends of mobility and climate protection as well as urbanisation and expects double-digit growth rates in the coming years.

In the business segment "Rolling Stock", SBF is a Tier 1 system supplier of complex ceiling and lighting systems for the world's leading rail vehicle manufacturers. Strong technological competence, high vertical integration and customised customer solutions are the basis for a leading market position. In the business segment "Public and Industrial Lighting", SBF offers modern and smart LED systems for the efficient lighting of industrial facilities and infrastructure such as roads and railway stations.

For more information, visit https://www.sbf-ag.com.

Company contact:

SBF AG
The Board of Directors
Zaucheweg 4
04316 Leipzig
Tel: +49 (0)341 65235 894
E-mail: [email protected]

Press contact:

Kirchhoff Consult AG
Alexander Neblung
Borselstrasse 20
22765 Hamburg
Tel: +49 (0)40 60 91 86 70
E-Mail: [email protected]