Hgears Ag · XETR:HGEA
Hgears — FY2023 Earnings Presentation
15 slides from Hgears's earnings presentation, 2024
Slide 1: FY 2023 results
FY 2023 results - the heart of your Ears | performan ce
Slide 2: Disclaimer
Disclaimer This report contains forward-looking statements. These statements are based on current experience, estimates and projections of the Management Board and the information available at the time this report was prepared. They are not guarantees of future performance and results and are subjec
Slide 3: Agenda
Agenda FY 2023 Highlights Financial Review Outlook & Closing Remarks Q&A 3
Slide 4: FY 2023 Highlights
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Slide 5: Resilient full-year 2023 results relative to guidance amid ongoing destocking
Resilient full-year 2023 results relative to guidance amid ongoing destocking; cash preservation, efficiency, and agility key priorities FY 2023 HIGHLIGHTS Resilient full-year 2023 results relative to guidance Ongoing challenging market dynamics, characterized by weak end-market demand, slower- than
Slide 6: Positive results from 2023-implemented countermeasures to preserve profitability
Positive results from 2023-implemented countermeasures to preserve profitability and enhance positioning FY 2023 FY 2024 Development & • Redefined and designed New Product Introduction • Operational start of NPI industrialization (NPI) process • Focus on cost control and faster time-to-market proces
Slide 7: Cost control and constant cash preservation
Cost control and constant cash preservation FY 2023 FY 2024 • Maintaining labor capacity with a flexible approach • FTE reduced by 111 employees to working hours Cost control • Strict approach to new hires • Better talent management (promotions) to foster • Optimization of overhead costs leaner orga
Slide 8: Financial Review
Financial Review the heart of your | lGears | ihestet
Slide 9: Revenue and profitability impacted by lower e-Mobility and e-Tools demand
Revenue and profitability impacted by lower e-Mobility and e-Tools demand Revenue (in EUR million) Gross Profit (in EUR million) Adjusted EBITDA (in EUR million) 69.8 80.0 18.0 135.3 70.0 16.0 15.3 14.0 -18.3% 60.0 51.4 112.5 56.0 12.0 50.0 10.0 -36.0% 40.0 42.0 41.4 8.0 30.0 5.6 26.5 6.0 5.0% 20.0
Slide 10: Cash preservation activities reflected in improved Free Cash Flow
Cash preservation activities reflected in improved Free Cash Flow Free Cash Flow bridge (in EUR million) 0 • Net cash flow from operating activities 2.0 -3.1 – Lower EBITDA due to lower volumes -2 -4 -8.3 0.6 -6 and lack of operational leverage -8 6.0 – Working Capital reduction -10 -3.4 -12 -14 • N
Slide 11: Robust Balance Sheet and sufficient financial manoeuvrability
Robust Balance Sheet and sufficient financial manoeuvrability Net Debt and leverage position (in EUR million) • Net Debt & Liquidity 11.0 10.2 9.7 10.0 4.5 – Net Debt reduction due to 9.0 8.0 3.5 improved free cash flow profile 7.0 6.0 5.0 3.4 2.5 4.0 3.0 1.0x 1.3x – Execution of purchasing option 2
Slide 12: Outlook & Closing Remarks
Outlook & Closing Remarks the ‘of your | ars | perrormance”
Slide 13: 2024 Operational priorities
Mid-term outlook – promising markets to drive growth Current market overview e-Bike: 2024 Operational priorities • In 2024 destocking ongoing, therefore subdued demand 01. Resource management • Strong upside potential – positive long- term prospects unabated [e]-Mobility: 02. Cost control initiative
Slide 14: Guidance 2024 reflects ongoing market uncertainty
Guidance 2024 reflects ongoing market uncertainty 2024 Guidance Mid-term outlook… Revenue Revenue EUR 100 – 110 million EUR 150 - 180 million 200 Adjusted EBITDA 150 EUR 1 – 3 million 100 50 Free Cash Flow 0 neg. EUR 0 – 3 million FY Mid 2024 term 14
Slide 15: Q&A
Q&A the heart of your byGears | Snes of