Polytec : ANNUAL REPORT 2024 (INCL. CORPORATE NEWS)

About this update from Polytec Holding Ag

MAG 24 ANNUAL REPORT 2024 NAVIGATING CHANGE. UNLOCKING POTENTIAL. AT 0000 A00XX9 THE EQUITY STORY OF THE POLYTEC GROUP SUSTAINABLE STRATEGY • Comprehensive strategy for the future with a focus on innovation, maximum customer­ benefits and permanent­ efficiency enhancement­ • Clearly defined roadmap for carbon-neutral production by 2035 BROAD TECHNOLOGY PORTFOLIO Bundling know-how and technologies across the group for the development of excellent product solutions Customised solutions for individual and diverse­ requirements­ of a market ­ undergoing transformation • Securing competitiveness through ­ continuous innovation­ as part of the ­ POLYTEC SOLUTION FORCE Specialist for highly complex plastic solutions STABLE ECONOMIC POSITION Long-standing customer relationships with renowned­ automotive manufacturers Balance between cost pass-through, new acquisitions­ and forward-looking investments Solid equity ratio and reliable dividend policy HIGH ADAPTABILITY Proactive transformation of the product­ portfolio towards e-mobility and new forms of mobility Open-mindedness towards future-oriented market segments such as energy and logistics Successful crisis management KEY FIGURES Key figures from the consolidated income statement Unit 2024 2023 2022 2021 2020 Sales revenues EUR million 677.8 636.0 601.4 555.9 522.0 thereof passenger cars & light commercial vehicles EUR million 494.5 470.6 443.8 390.2 328.7 thereof commercial vehicles EUR million 92.3 109.5 99.6 92.4 118.3 thereof smart plastic & industrial applications EUR million 91.0 55.9 58.0 73.3 75.0 EBITDA EUR million 35.7 26.6 33.2 44.8 48.3 EBITDA margin (EBITDA/sales revenues) % 5.3 4.2 5.5 8.1 9.3 EBIT EUR million 3.9 -6.7 0.7 12.3 13.0 EBIT margin (EBIT/sales revenues) % 0.6 -1.1 0.1 2.2 2.5 Earnings after tax EUR million -6.9 -14.1 -2.2 7.0 9.5 Earnings per share EUR -0.29 -0.64 -0.10 0.32 0.29 Balance sheet key figures Unit 2024 2023 2022 2021 2020 Balance sheet total EUR million 507.5 533.0 551.2 568.5 568.9 Equity ratio (equity/balance sheet total) % 41.7 41.4 43.0 42.0 41.3 Investments in fixed assets EUR million 25.2 22.4 24.0 36.0 14.2 Net working capital EUR million 23.0 64.0 53.6 65.4 53.0 Net working capital/sales revenues % 3.4 10.1 8.9 11.8 10.1 Average capital employed EUR million 288.1 312.5 326.3 330.7 348.8 ROCE before tax (EBIT/average capital employed) % 1.3 -2.2 0.2 3.7 3.7 Net debt (+)/assets (-) EUR million 42.4 79.5 59.8 79.6 66.0 Net debt (+)/assets (-)/EBITDA Years 1.19 2.98 1.80 1.78 1.37 Gearing (net debt (+)/assets (-)/equity) - 0.20 0.36 0.25 0.33 0.28 Consolidated cash flow key figures Unit 2024 2023 2022 2021 2020 Cash flow from operating activities EUR million 68.3 33.4 33.7 25.4 45.8 Cash flow from investing activities EUR million 0.6 -21.1 -21.4 -25.0 12.1 Cash flow from financing activities EUR million -52.7 -17.7 -26.8 -21.0 -22.8 Change in cash and cash equivalents EUR million 16.2 -5.3 -14.6 -20.5 35.0 Closing balance of cash and cash equivalents EUR million 66.0 49.6 55.1 69.7 90.4 Personnel key figures Unit 2024 2023 2022 2021 2020 Employees on annual average FTE 1) 3,877 3,884 3,536 3,585 3,939 Employees as of 31 December FTE 1) 3,678 3,835 3,510 3,420 3,636 Sales revenues per employee EUR k 174.8 163.7 170.1 155.1 132.5 FTE: full-time equivalents incl. leasing personnel Non-financial key figures Unit 2024 2023 2022 2021 2020 Revenue - taxonomy-eligible (A.1 + A.2) % 36.2 28.8 28.8 32.7 - Revenue - taxonomy-aligned (A.1) % 22.4 11.4 9.0 - - Capital expenditure (CapEx) - taxonomy-eligible (A.1 + A.2) % 11.2 15.3 17.1 30.7 - Capital expenditure (CapEx) - taxonomy-aligned (A.1) % 6.7 6.9 3.6 - - Operating expenses (OpEx) - taxonomy-eligible (A.1 + A.2) % 38.1 29.1 28.0 27.0 - Operating expenses (OpEx) - taxonomy-aligned (A.1) % 22.1 11.5 7.0 - - CO 2 emissions Scope 1 Tonnes 14,220 15,673 15,850 17,955 CO 2 emissions Scope 2 (market-based) Tonnes 10,230 8,549 7,672 7,828 46,537 CO 2 emissions Scope 2 (location-based) Tonnes 39,904 - - - CO 2 emissions Scope 3 Tonnes 2,784,180 - - - - Energy use Tonnes 180,509 184,740 180,303 189,015 195,303 Material use Tonnes 81,979 74,895 64,383 74,689 70,420 Water use m 3 126,765 125,973 105,323 96,300 - Waste volumes Tonnes 9,085 10,165 8,494 8,424 8,690 POLYTEC share (AT0000A00XX9) Unit 2024 2023 2022 2021 2020 Year-end closing price EUR 2.00 3.51 4.60 6.87 7.51 Highest closing price during the year (on 10 January 2024) EUR 3.82 5.28 8.30 12.56 8.93 Average closing price during the year EUR 3.15 4.46 6.03 9.43 5.92 Lowest closing price during the year EUR 2.00 3.40 4.30 6.65 3.21 (on 30 December 2024) Market capitalisation at year-end EUR million 44.7 78.3 102.7 153.4 167.7 Share turnover (daily average, double counting) Shares 43,598 37,484 54,065 86,439 68,925 Earnings per share EUR -0.29 -0.64 -0.10 0.32 0.29 Proposed dividend per share EUR 0.00 0.00 0.10 0.10 0.30 Dividend yield on the basis of the average closing price % 0.00 0.00 1.70 1.10 5.10 SALES REVENUES, EBIT MARGIN 555.9 601.4 636.0 677.8 2.2% 0.1% 0.6% -1.1% 2021 2022 2023 2024 Sales revenues EBIT margin EBITDA, EBITDA MARGIN, EBIT 44.8 33.2 26.6 35.7 8.1% 5.5% 4.2% 5.3% 12.3 0.7 3.9 -6.7 2021 2022 2023 2024 EBITDA EBITDA margin EBIT EQUITY, EQUITY RATIO 238.9 237.1 220.5 211.7 42.0% 43.0% 41.4% 41.7% 2021 2022 2023 2024 Equity Equity ratio POLYTEC 2024 | CONTENTS 36 SUSTAINABILITY Role model for CO 2 reduction: ­Organisational measures and ­greater efficiency led to a ­significant reduction in gas consumption­ at two POLYTEC locations. CONTENTS EDITORIAL 3 Change as an opportunity THE WORLD OF POLYTEC 4 Navigating change. Unlocking potential. INTERVIEW WITH THE BOARD OF DIRECTORS 10 "We have prepared our organisation even better for future challenges." COMPANY 22 Product Lines: Solutions by POLYTEC 26 Locations 28 Stay on track, use the leeway: The strategy of the POLYTEC GROUP INNOVATION 30 Driver for sustainable and efficient solutions 10 INTERVIEW In a persistently difficult economic environment, POLYTEC achieved solid ­revenue growth in the 2024 financial­ year. The company­ is also setting new strategic priorities for a successful­ future. SUSTAINABILITY 36 Plastics and the future: turning sustainability into a strength at POLYTEC 38 Go Neutral 2035: The POLYTEC GROUP's path to decarbonisation 40 Measures in all focus fields SHARE & CORPORATE GOVERNANCE Share & Investor Relations Corporate Governance Report of the Supervisory Board FINANCIALS 2023 63 Group management report 136 Consolidated financial­statements 142 Notes to the consolidated financial­statements 182 Declaration of all legal representatives 183 ­ Audit­ ­certificate 187 Glossary 189 Service/Imprint 2 POLYTEC 2024 | EDITORIAL CHANGE AS AN OPPORTUNITY In times of great challenges and radical­ change, POLYTEC managed an important trend reversal in 2024: we increased EBIT by roughly EUR 10 million, thus achieving the operational turnaround, and continued to improve our balance 30 sheet structure by significantly reduc- ing our net debt. Once again, we also increased our revenue. A significant contribution came from the non-auto­ motive segment, which is becoming INNOVATION an increasingly important pillar of the POLYTEC GROUP. power of our company. We have already proven in the past that we are SMC recycling: How POLYTEC wants to make thermoset fibre composites recyclable with a newly developed process. However, the past year also held a number of challenges in store for us: the European economy - and, conse- quently, the automotive industry - is stagnating, which is reflected in both lower production figures and high volatility in call-offs by our customers. In addition, we are confronted with cost increases due to inflation, and high pressure on prices. Moreover, two of our plants were facing operational difficulties. However, the countermeasures implemented immediately have not only largely resolved the problems that arose. The knowledge gained in the process now also provides the basis for improvements for the entire POLYTEC GROUP. The fact that we successfully overcame all these challenges once again demonstrates the adaptability and the able to respond flexibly and quickly to changes in our environment and deliver what we have always stood for since the foundation of our company, even under difficult circumstances: innovation and quality at the highest level. Therefore, we are headed for the future with optimism: supported by a sound balance sheet, a broad product and technology portfolio - from classic combustion vehicles to e-mobility and a wide range of non-automotive applications - and an excellent market position, our business model rests on solid foundations. This is a good basis for capturing the high potential in our company as well as in our markets in a decisive and target-oriented manner. Yours sincerely, Markus Huemer 3 POLYTEC 2024 | THE WORLD OF POLYTEC POLYTEC GROUP NAVIGATING CHANGE. UNLOCKING POTENTIAL. 4 POLYTEC 2024 | THE WORLD OF POLYTEC POLYTEC excels in the exceptional ability to adapt to ­changing market­ dynamics through organisational and technological flexibility­ . The company has proven this strength time and again in the past and successfully held its ground even in economically difficult times. Despite this high level of flexibility, POLYTEC does not remain unaffected by the current economic trend. Especially the weakness of the automotive industry, still the company's central market, is evident: vehicle production in Europe declined by roughly seven percent in 2024 compared to the previous year and is expected to stagnate at around 15 to 16 million vehicles produced in the medium term. For ref- erence: European vehicle production peaked at approximately 21 million in 2017, with no sign of recovery in sight. On a positive note, however, POLYTEC is still able to generate solid revenue in this market as an established partner of the European automotive industry even when growth is stagnating. A wide range of challenges Nevertheless, the automotive industry is currently facing multiple challeng- es. Electromobility, whose revenues recently fell significantly short of ex- pectations, and extended life cycles of vehicles with combustion engines underline the uncertainty that currently dominates the industry. Over the past years, POLYTEC had added innovative solutions, in particular components for thermal management and around the battery, to its product portfolio for electric vehicles. Some of these prod- ucts, however, have not been sold in large quantities so far due to early production phase-outs as well as the withdrawal or postponement of contracts by OEMs. This is due to the general uncertainty in the market, which makes planning significantly more difficult for all market players. Additional factors, such as excess production capacities in the entire sector, general delays in awarding contracts in 2024, and persisting price pressure, have further increased strain on the indus- try. Against this backdrop, POLYTEC is currently benefitting from the fact that it also enjoys a good positioning for conventional combustion vehicles with its products, and its portfolio therefore comprises attractive products for both electric and conventional vehicles. In addition to the primarily domestic challenges of the European industry, external factors might further aggravate the situation in the medium term. The Trump Administration's announcements of imposing tariffs on European goods are expected to have an additional impact on the already strained automotive industry. Protectionist measures like these could substantially­ impair European manufacturers'­ competitiveness in the important US market and give rise to further uncertainty. It remains to be seen to what extent the measures will be permanent. However,­ making investment decisions on the basis of unpredictable economic policy conditions is certainly a challenge. At the same time, these developments illustrate why POLYTEC, with its 5 POLYTEC 2024 | THE WORLD OF POLYTEC POLYTEC is positioning itself in future markets­ with innovative solutions for ­thermal ­management in electric cars. technological­ breadth and market-oriented flexibility, is able to respond to such challenges in a more targeted manner than many competitors. Technological diversity as a key to success Based on a wide range of technologies and materials as well as a solution-oriented market approach, POLYTEC pursues a strategy that allows serving customer needs efficiently. Launched in 2020, the POLYTEC SOLUTION FORCE is central to this technology-independent approach, which POLYTEC successfully applies in both the automotive industry and other sectors. Over the past years, it has helped the company to establish itself as a valued supplier of high-quality and innovative plastic solutions, increasingly also in non-automotive seg- ments. The basis for this is the focus on proactive product development and flexibility, which the company builds on in the targeted expansion of both its product and customer portfolios. Rather than concentrating on materials and technologies alone, the POLYTEC SOLUTION FORCE focuses on applica- tions and specific customer benefits, thus expanding POLYTEC's prospects in the automotive market, on the one hand. Requirements for vehicles are changing significantly and POLYTEC can advance into new application areas with its innovative plastic solutions. On the other hand, the company is opening up access to completely new industry and market segments with the POLYTEC SOLUTION FORCE. This is to contribute to further increasing the share of the non-automotive business in revenue in the coming years, thus reducing dependence on the automotive business in the long term. Future-proof business areas This new concentration on future-oriented segments aside from the automotive industry is an important part of POLYTEC's portfolio strategy, summarised under the title "Smart Plastics Applications". Addressing a broad spectrum of plastic solutions ranging from reusable containers and autonomous mobility solutions to energy storage and charging infrastructure, this product segment opens up new opportunities beyond the classic automotive business. In 2024, this segment saw a very positive development; in the coming years, its share in the group's revenue is expected to increase to a realistic 20 percent. Reusable packaging solu- tions, a product segment that POLYTEC has been engaged in for many years, offers special potential in this context. In 2024, an average of more than one logistics box per second rolled off the production line at the Ebensee plant. 6

View stock analysis, news, and events for Polytec Holding Ag