EQS-News: Manz AG still affected by market environment in the first half of 2024 – implementation of efficiency program begins

Manz AG still affected by market environment in the first half of 2024 – implementation of efficiency program begins

• Revenue of EUR 98.6 million, 30.6% below the level of the previous year
• Multi-stage efficiency program aims to improve operating performance and expand strategic focus
• E-mobility and battery business remain important strategic pillars

Reutlingen, August 6, 2024 – Manz AG, a global high-tech equipment manufacturer with an extensive technology portfolio, has generated Group revenues of EUR 98.6 million in the first six months of 2024 after EUR 142.1 million in the same period of the previous year. The decline of 30.6% reflects the current extremely challenging market environment, particularly in the battery sector, and the associated reluctance of customers to invest. Earnings before interest, taxes, depreciation and amortization (EBITDA) were at EUR -1.3 million, below the previous year's level of EUR 17.2 million. Earnings before interest and taxes (EBIT) totalled EUR -6.5 million, compared to EUR 11.3 million in the same period of the previous year. It should be noted that in the previous year, a positive one-off effect of EUR 5.7 million from the share swap of shares in Customcells Tübingen GmbH for shares in Customcells Holding GmbH increased the result.

Dr. Ulrich Brahms, member of the Managing Board and future CEO of Manz AG, comments: “As a recognized driver of innovation, we are working hard to improve the current situation. It is therefore all the more important to put all our efforts into implementing our multi-stage efficiency program. We are looking ahead and reviewing our business strategy and product portfolio. E-mobility and the battery market will remain important pillars. With our core competencies in automation, laser processing, inspection systems, digital printing and wet chemistry, we aim to broaden our customer base in a targeted manner. We see interesting prospects for Manz in the chip industry in Asia, which are already materializing more and more in the form of increasing enquiries." Manz has a clear objective: to increase its competitiveness in a difficult market environment and to lay the foundations for profitable growth.

Manfred Hochleitner, CFO of Manz AG, explains: "By implementing the efficiency program, we aim to sustainably improve our operating performance and reduce our costs. In the financial area, strengthening liquidity in the wake of the reduced business volume remains an additional focus."

After the end of the reporting period, Manz AG realized a significant cash inflow of EUR 19.3 million. Several measures contributed to this development. For example, Manz AG completed the sale of its Hungarian subsidiary Manz Hungary Kft, Debrecen, to Harro Höfliger Verpackungsmaschinen GmbH, Allmersbach, as planned. At the end of July, Manz AG received EUR 8 million in cash from the transaction, which is not reported in the half-year figures. In addition, Manz won an arbitration case with its customer Chonqqing Shenhua Thin Film Solar Technology Co., Ltd., which resulted in the release of EUR 4.1 million of previously blocked funds being. Finally, in July 2024, Manz AG received approximately EUR 7.2 million as part of the IPCEI funding for various projects.

In the Mobility & Battery Solutions segment, revenues decreased by 51.4% to EUR 28.5 million in the first half of 2024 (previous year: EUR 58.6 million). At EUR -8.5 million, segment EBIT was below the previous year's level of EUR 6.3 million. It should be noted that the previous year's figure included a positive one-off effect of EUR 5.7 million from the share swap. Order intake in this segment in the first six months was 19.5% down on the previous year. The electromobility markets remain to be an attractive sales market for Manz, which invested in their development and expansion at an early stage and where customers of Manz in Europe and North America can count on innovative production equipment for cell and module factories.

In the first half of the year, revenues in the Industry Solutions segment declined less sharply by 16.0% to EUR 70.1 million (previous year: EUR 83.4 million). At EUR 1.9 million, segment EBIT was below the previous year's level of EUR 5.0 million, but still clearly in positive range. Order intake also developed positively with an increase of 6.5% compared to last year. Manz performs very well in production lines for inverters and the electric drive train. A particular focus is on intensifying entry into the semiconductor market, which is based among other things on in-house developments in advanced packaging technology for the production of redistribution layers using Manz equipment. Due to the ever-increasing chip sizes of manufacturers (e.g. NVIDIA AI), panel solutions are groundbreaking for reducing costs and scaling throughput in production.

Manfred Hochleitner, CFO of Manz AG: "From today's perspective, we do not expect the market environment to improve in the coming months, nor do we expect to be able to compensate for the weak order intake so far this year – even if we are seeing a slight upward trend in our sales pipeline compared to the beginning of the year." The order backlog as of 30. June 2024 amounts to EUR 157.2 million (Dec. 31, 2023: EUR 186.5 million). Accordingly, the Management Board is maintaining the guidance for the full year 2024, which was adjusted on 27. June 2024, according to which revenues and earnings will be significantly below the previous year's level. The Management Board does not expect to see a general improvement in the order situation and customers' investment decisions until 2025 at the earliest.

Sales, EBITDA and EBIT in the first half of 2024 compared to the previous year:

* Due to a reclassification in the disclosure of bank commissions, the previous year's figures for 2023 were adjusted accordingly.

The 6-month report 2024 is available at www.manz.com in the Investor Relations section.
About Manz AG

As a high-tech mechanical engineering company, Manz AG develops best-in-class production solutions for lithium-ion batteries as well as for electronic components and devices for its customers. This makes Manz an innovative pioneer for the global megatrends of electromobility and digitalization.

Manz covers the entire range of modern production solutions: from customer-specific individual machines for laboratory production or pilot and small-series production to standardized modules and systems to turnkey lines for efficient mass production. Customers benefit from high resource efficiency with higher throughput and shorter time-to-market.

With currently around 1,200 employees, the Manz Group develops and produces in Germany, Slovakia, Italy, China and Taiwan. There are also sales and service subsidiaries in the USA and India.

Manz AG was founded in 1987 and generated consolidated sales of 249.2 million euros in the 2023 financial year with the two segments Mobility & Battery Solutions and Industry Solutions. The shares (ISIN: DE000A0JQ5U3) are listed on the Regulated Market of the Frankfurt Stock Exchange (Prime Standard).
Contact:

Manz AG
Katrin Neuffer
Tel.: +49 (0)7121 9000-395
E-Mail: investor-relations@manz.com

Kirchhoff Consult AG
Michael Werneke
Tel.: +49 (0)40 609 186 68
E-Mail: manz@kirchhoff.de