STS Group AG

Quarterly Report • Nov 6, 2019

Interim Statement 2019

January 1 to September 30

HIGHLIGHTS 9M 2019

AT A GLANCE

RESULTS OF OPERATIONS

in mEUR	9M/2019	9M/2018	Q3/2019	Q3/2018
Revenues	276.3	309.2	82.5	91.0
Segment Acoustics	87.5	96.5	27.4	27.9
Segment Plastics	131.6	154.8	37.5	47.6
Segment China	33.3	35.5	10.3	9.5
Segment Materials	30.8	30.6	9.5	8.7
Corporate/Consolidation	–6.9	–8.2	–2.2	–2.7
EBITDA	13.2	10.2	3.1	3.3
Adjusted EBITDA	14.1	21.1	4.0	4.6
Reconciliation to Adjusted EBITDA
EBITDA	13.2	10.2	3.1	3.3
Adjusted for non-recurring effects	0.9	10.9	0.9	1.3
Adjusted EBITDA	14.1	21.1	4.0	4.6

BALANCE SHEET KEY FIGURES

in mEUR	September 30, 2019	December 31, 2018
Equity	76.3	82.4
Capital ratio	26.4%	30.1%
Total assets	288.9	273.8
Cash and cash equivalents (unrestricted)	21.5	31.2
Net Financial Debt 1	30.8	27.9

1 Net Financial Debt = Bank Loans + Third Party Loans + Recourse Factoring – Cash and cash equivalents

STS Group AG, www.sts.group (ISIN: DE000A1TNU68), is a globally leading supplier of components and systems to the commercial vehicle and automotive industry. The Group, with its tradition and expertise dating back to 1934, has more than 2,500 employees worldwide and generated revenues of 401.2 mEUR in 2018. The STS Group ("STS", the "Group") has a strong geographical footprint with a total of 17 plants and four development centers in France, Italy, Germany, Poland, Mexico, Brazil and China. STS produces paneling and acoustic components, which enhance both interior and exterior vehicle design, offer convenient interior storage features and ensure a pleasant soundscape. STS components also make an essential contribution to reducing weight and win plaudits thanks to their impressive durability. STS leads the field in manufacturing plastic injection molding parts, special acoustic products and composite components (sheet molding compound, SMC).

CONTENT

1	BUSINESS PERFORMANCE AND POSITION	03
	SEGMENT PERFORMANCE	04
	RESULTS OF OPERATIONS BY SEGMENT	04
	FINANCIAL POSITION	06
	NET ASSETS AND CAPITAL STRUCTURE	07
	OUTLOOK	08
2	FINANCIAL INFORMATION	09
	CONSOLIDATED INCOME STATEMENT	09
	CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME	09
	CONSOLIDATED STATEMENT OF FINANCIAL POSITION	10
	CONSOLIDATED STATEMENT OF CHANGES IN EQUITY	12
	CONSOLIDATED STATEMENT OF CASH FLOWS	13
	SEGMENT REPORT	14
3	FURTHER INFORMATION	15

BUSINESS PERFORMANCE AND POSITION

Financial information

3

Further information

2

INTERIM STATEMENT ON BUSINESS POSITION AS OF SEPTEMBER 30, 2019

STS GROUP AG (ISIN: DE000A1TNU68), a global system supplier to the automotive industry focusing on the commercial vehicle sector and listed in the Prime Standard of the Frankfurt Stock Exchange, today publishes notes on its business performance and significant events as part of its interim statement for the period from January 1 to September 30, 2019.

BUSINESS PERFORMANCE AND POSITION

The Group reported a positive order trend in the reporting period. Especially in China, large-scale orders were acquired as well as several strategic projects in the e-mobility sector.

The Group generated revenues of 276.3 mEUR in the period January 1 to September 30, 2019 (9M/2018: 309.2 mEUR), representing a 10.6% year-on-year decline. The reduction in revenue primarily reflected the European automotive market, a continuing weak automotive market in China, and the planned expiry of a major order in the Plastics segment at the end of the first half of the previous year.

Earnings before interest, taxes, depreciation and amortization (EBITDA) rose by 3.0 mEUR to 13.2 mEUR in the reporting period (9M/2018: 10.2 mEUR).

Extraordinary expenses of 0.9 mEUR were incurred in the reporting period for reorganization measures. In the prior-year period, extraordinary expenses of 10.9 mEUR were incurred primarily for the integration of the acquired companies and costs for the IPO.

Adjusted EBITDA, by contrast, reduced by 7.0 mEUR to 14.1 mEUR in the reporting period, compared with 21.1 mEUR in the prior-year period. The decline in adjusted EBITDA reflects the lower business volume. The efficiency improvements achieved in production only partially offset the volume-related negative earnings effects. Effects from the first-time application of IFRS 16 as of January 1, 2019 at an amount of around 3.6 mEUR made a positive contribution to earnings.

276.3 mEUR

of revenues were generated in the first nine months 2019

SEGMENT PERFORMANCE

Revenue and earnings for the reporting period in the STS Group's operating segments were as follows compared with the prior year:

in mEUR	9M/2019	9M/2018	Q3/2019	Q3/2018
Revenue	276.3	309.2	82.5	91.0
Segment Acoustics	87.5	96.5	27.4	27.9
Segment Plastics	131.6	154.8	37.5	47.6
Segment China	33.3	35.5	10.3	9.5
Segment Materials	30.8	30.6	9.5	8.7
Corporate/Consolidation	–6.9	–8.2	–2.2	–2.7
EBITDA	13.2	10.2	3.1	3.3
Segment Acoustics	0.9	–1.2	0.2	–1.3
Segment Plastics	9.9	10.0	2.3	3.1
Segment China	4.3	6.0	1.3	2.2
Segment Materials	1.5	1.4	0.6	0.2
Corporate/Consolidation	–3.4	–6.0	–1.3	–0.9
EBITDA (in % of revenue)	4.8%	3.3%	3.8%	3.6%
Adjusted EBITDA	14.1	21.1	4.0	4.6
Segment Acoustics	0.9	0.3	0.2	–0.7
Segment Plastics	9.9	14.7	2.3	3.6
Segment China	4.6	7.0	1.6	2.5
Segment Materials	1.5	1.5	0.6	0.2
Corporate/Consolidation	–2.8	–2.4	–0.7	–1.0
Adjusted EBITDA (in % of revenue)	5.1%	6.8%	4.8%	5.1%

RESULTS OF OPERATIONS BY SEGMENT

Acoustics segment

87.5 mEUR

of revenues were generated in the Acoustics segment during the reporting period

In the Acoustics segment, revenues in the first nine months of the current financial year amounted to 87.5 mEUR. Reporting a 9.3% reduction, revenues were significantly below the previous year's level (9M/2018: 96.5 mEUR), whereby revenues in the third quarter were almost at the previous year's level. The decrease in revenues during the first nine months of 2019 is primarily attributable to a lower level of customer call-offs in the relevant passenger car market in Italy. In the reporting period, the EBITDA of this segment rose to 0.9 mEUR (9M/2018: –1.2 mEUR). No extraordinary items arose during the first nine months of the current financial year (9M/2018: 1.5 mEUR). The Acoustics segment's adjusted EBITDA consequently amounted to 0.9 mEUR in the reporting period (9M/2018: 0.3 mEUR). Despite the lower business volume, adjusted EBITDA increased in the reporting period thanks to the measures taken to adjust the cost of materials and personnel expenses, as well as the positive effects of the first-time application of IFRS 16 in the amount of approximately 1.3 mEUR. The Polish plant continued to contribute a significantly negative EBITDA, even though its results of operations have already improved considerably, especially thanks to the cost-efficiency enhancement measures that have been introduced.

2 Financial information 3 Further information

Plastics segment

Revenue in the Plastics segment amounted to 131.6 mEUR in the first nine months of the current financial year compared with 154.8 mEUR in the prior year (–15.0%). The reduction especially reflects lower customer call-offs as well as a major order that expired in the previous year. This segment's EBITDA reduced slightly to 9.9 mEUR in the reporting period (9M/2018: 10.0 mEUR). The previous year's result was burdened by extraordinary expenses of 4.7 mEUR. In the first half of 2019, adjusted EBITDA totaled 9.9 mEUR (9M/2018: 14.7 mEUR). The improvements achieved in plant productivity as well as positive effects from the first-time application of IFRS 16 of around 1.3 mEUR only partially offset the revenue-related negative earnings effects.

China segment

In the first nine months of the current financial year, the China segment generated revenues of 33.3 mEUR in a significantly declining Chinese automotive market, compared with 35.5 mEUR in the same period of the previous year. This corresponds to a reduction in revenues of 6.2%. In the reporting period, the EBITDA of this segment decreased to 4.3 mEUR compared with the prior-year period (9M/2018: 6.0 mEUR). Earnings were burdened by extraordinary expenses of 0.3 mEUR in the reporting period (9M/2018: 1.0 mEUR). Adjusted EBITDA amounted to 4.6 mEUR in the reporting period (9M/2018: 7.0 mEUR). The decline in the adjusted EBITDA is attributable to the lower revenue volume and the start-up costs for the new production site in Shiyan, which commenced operations at the beginning of 2019. The positive effect from the first-time application of IFRS 16 of around 0.8 mEUR had only little impact on the adjusted EBITDA in the China segment.

Materials segment

The Materials segment recorded a slight increase in revenues of 0.7% in the first nine months of the current financial year. Revenues amounted to 30.8 mEUR compared with 30.6 mEUR in the prior year. EBITDA for the current reporting period grew year-on-year from 1.4 mEUR to 1.5 mEUR. No extraordinary effects arose in the reporting period (9M/2018: –0.1 mEUR). Adjusted EBITDA of 1.5 mEUR in the reporting period is at the level of the previous year (9M/2018: 1.5 mEUR).

131.6 mEUR of revenues were generated in the Plastics segment in the reporting period

Significant downturn in automotive market reduces earnings

revenues in the Materials segment

FINANCIAL POSITION

Statement of cash flows

in mEUR	9M/2019	9M/2018
Net cash flow from operating activities	12.8	0.8
Net cash flow from investing activities	–10.0	–11.5
Net cash flow from financing activities	–12.5	23.8
Effect of currency translation on cash and cash equivalents	0.1	–0.1
Net increase/decrease in cash and cash equivalents	–9.6	13.0

In the first nine months of the current financial year, STS Group generated a positive net cash flow from operating activities of 12.8 mEUR (9M/2018: 0.8 mEUR). This increase is mainly thanks to the change in net working capital. The net working capital change led to a cash outflow of 0.3 mEUR (9M/2018: cash outflow of 9.3 mEUR) in the reporting period, which includes cash outflows of 3.0 mEUR for the increase in inventories of customer tools for new projects (less advance payments made by customers). The first-time application of IFRS 16 also contributed to the improvement, as payments for leases are no longer recognized in operating cash flow, but rather in cash flow from financing activities.

Cash flow from investing activities amounted to –10.0 mEUR in the reporting period (9M/2018: cash outflow 11.5 mEUR). The cash outflow was mainly related to payments for investments in property, plant and equipment. Investments were realized in new projects for customers, capacity increases at the plants in China and Poland, and efficiency measures.

As part of financing activities, a cash outflow of 12.5 mEUR was incurred in the reporting period (9M/2018: cash inflow of 23.8 mEUR). The previous year's figure mainly includes proceeds from the IPO and a capital increase carried out against cash contributions.

Cash and cash equivalents

Cash and cash equivalents amounted to 21.5 mEUR as of September 30, 2019 (December 31, 2018: 31.2 mEUR) and primarily comprised bank balances.

Net financial debt

The Group's net financial debt ¹ increased by 2.9 mEUR to reach 30.8 mEUR as of September 30, 2019 (December 31, 2018: 27.9 mEUR) but was lower than as of March 31, 2019 (33.3 mEUR) and June 30, 2019 (33.4 mEUR).

1 Net Financial Debt = Bank Loans + Third Party Loans + Recourse Factoring – Cash and cash equivalents

2 Financial information 3 Further information

NET ASSETS AND CAPITAL STRUCTURE

in mEUR	September 30, 2019	December 31, 2018
Non-current assets	136.3	115.6
Current assets	152.6	158.2
Total assets	288.9	273.8
Total equity	76.3	82.4
Non-current liabilities	58.9	39.2
Current liabilities	153.8	152.2
Total equity and liabilities	288.9	273.8

Total assets increased to 288.9 mEUR as of September 30, 2019, up 15.1 mEUR compared with December 31, 2018 (December 31, 2018: 273.8 mEUR). The increase in total assets mainly reflects the first-time recognition of previously unrecognized operating lease assets.

Non-current assets rose by 20.7 mEUR to 136.3 mEUR (December 31, 2018: 115.6 mEUR). This was due to the recognition of rights of use as a consequence of the change in lessee accounting, which led to an increase in property, plant and equipment.

Current assets decreased by 5.6 mEUR to 152.6 mEUR (December 31, 2018: 158.2 mEUR). The decline is mainly due to lower receivables and cash and cash equivalents. The increase in inventories had the opposite effect. The rise in inventories chiefly reflects a higher inventory of customer tools for new projects, which are generally remunerated by customers in the form of milestone payments.

Equity reduced by 6.1 mEUR to 76.3 mEUR compared with December 31, 2018 (December 31, 2018: 82.4 mEUR). The consolidated net profit and the remeasurement of pension obligations were the main factors that led to the decrease in equity. The equity ratio declined to 26.4% as of September 30, 2019 (December 31, 2018: 30.1%). Besides the reduction in equity, this is primarily due to the increase in total assets as a consequence of the new lease accounting in accordance with IFRS 16.

Non-current liabilities were up by 19.7 mEUR to 58.9 mEUR as of September 30, 2019 (December 31, 2018: 39.2 mEUR). The increase in non-current liabilities is mainly attributable to the recognition of lease liabilities in connection with the first-time application of IFRS 16, which rose by 17.7 mEUR to 20.2 mEUR as of September 30, 2019 (December 31, 2018: 2.5 mEUR).

Current liabilities reported a slight increase of 1.6 mEUR to 153.8 mEUR as of September 30, 2019 (December 31, 2018: 152.2 mEUR). Contractual liabilities in accordance with IFRS 15 and leasing obligations (first-time application of IFRS 16) rose. This was offset by a lower level of factoring liabilities.

OUTLOOK

As communicated on August 2, 2019, the company continues to expect a decrease in revenues of 4.5 to 9.5%, and an adjusted EBITDA margin of between 4.6 and 5.3% for the 2019 financial year. Given the currently challenging situation in the European commercial vehicle market and a related reduction in customer call-offs, the STS Group anticipates that both revenue and the profit margin will lie at the lower range of the aforementioned bandwidth.

2 Financial information 3 Further information

FINANCIAL INFORMATION

CONSOLIDATED INCOME STATEMENT

FOR THE NINE MONTHS ENDING PERIOD ON SEPTEMBER 30, 2019

in kEUR	9M/2019	9M/2018
Revenues	276,333	309,238
Increase (+) or decrease (–) of finished goods and work in progress	7,051	702
Other operating income	3,458	3,199
Material expenses	–161,564	–176,642
Personnel expenses	–77,034	–78,833
Other operating expenses	–35,093	–47,433
Earnings from operations before depreciation and amortization expenses (EBITDA)	13,151	10,231
Depreciation and amortization expenses	–13,882	–9,911
Earnings before interest and income taxes (EBIT)	–731	320
Interest and similar income	61	88
Interest and similar expenses	–2,280	–1,654
Earnings before income taxes	–2,950	–1,246
Income taxes	–1,988	–1,637
Net income	–4,938	–2,883
Thereof attributable to owners of STS Group AG	–4,938	–2,883
Earnings per share in EUR (undiluted)	–0.83	–0.87
Earnings per share in EUR (diluted)	–0.83	–0.87

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE NINE MONTHS ENDING PERIOD ON SEPTEMBER 30, 2019

in kEUR	9M/2019	9M/2018
Net income	–4,938	–2,883
Currency translation differences	644	–1,312
Items that may be reclassified subsequently to profit or loss	644	–1,312
Remeasurements of defined benefit plans, net of tax	–1,460	124
Items that will not be reclassified to profit or loss	–1,460	124
Other comprehensive income	–816	–1,188
Total comprehensive income	–5,754	–4,071
Thereof attributable to owners of STS Group AG	–5,754	–4,071

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS OF SEPTEMBER 30, 2019

	ASSETS

in kEUR	September 30, 2019	December 31, 2018
Intangible assets	24,355	25,565
Property, plant and equipment	101,677	78,664
Contract assets	0	91
Other financial assets	308	246
Income tax receivables	24	97
Other non-financial assets	2,716	3,008
Deferred tax assets	7,260	7,953
Non-current assets	136,340	115,624
Inventories	37,707	29,934
Contract assets	6,439	5,014
Trade and other receivables	75,505	81,050
Other financial assets	1,192	1,242
Income tax receivables	760	1,162
Other non-financial assets	7,478	6,649
Cash and cash equivalents	21,528	31,169
Restricted cash	2,000	2,000
Current assets	152,609	158,220
Total assets	288,949	273,844

2 Financial information 3 Further information

EQUITY AND LIABILITIES

in kEUR	September 30, 2019	December 31, 2018
Share capital	6,000	6,000
Capital reserve	22,250	22,193
Retained earnings	50,328	55,266
Other reserves	–1,807	–991
Own shares at acquisition cost	–505	–59
Equity attributable to owners of STS Group AG	76,266	82,409
Total equity	76,266	82,409
Liabilities to banks	4,762	4,901
Third party loans	4,601	5,733
Liabilities from leases	20,193	2,471
Other financial liabilities	53	46
Contract liabilities	2,498	1,120
Trade and other payables	956	768
Provisions	22,355	20,133
Deferred tax liabilities	3,489	3,999
Non-current liabilities	58,907	39,171
Liabilities to banks	9,249	9,040
Liabilities from factoring	30,379	36,211
Third party loans	3,260	3,222
Liabilities from leases	4,645	723
Other financial liabilities	17	29
Contract liabilities	7,706	4,669
Trade and other payables	70,397	69,963
Provisions	70	1,129
Income tax liabilities	17	143
Other non-financial liabilities	28,036	27,135
Current liabilities	153,776	152,264
Total equity and liabilities	288,949	273,844

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE NINE MONTHS ENDING PERIOD ON SEPTEMBER 30, 2019

	Equity attributable to owners of STS Group AG
	Number of shares	Share capital	Capital reserves	Retained earnings	Other reserves			Treasury shares, at cost	Total
in kEUR					Remeasur ing gains/ losses	Foreign currency translation	Total
Balance at January 1, 2018 before adjustments IFRS 9 and IFRS 15	50,000	50	1,615	59,802	–190	–610	–801	0	60,666
Adjustments IFRS 9	0	0	0	–74	0	0	0	0	–74
Adjustments IFRS 15	0	0	0	438	0	0	0	0	438
Balance at January 1, 2018	50,000	50	1,615	60,166	–190	–610	–801	0	61,030
Capital increase, cash based	4,950,000	4,950	23,000	0	0	0	0	0	27,950
Capital increase from retained earnings	1,000,000	1,000	–1,000	0	0	0	0	0	0
Costs of capital procurement	0	0	–1,480	0	0	0	0	0	–1,480
Equity-settled share-based payment	0	0	28	0	0	0	0	0	28
Income after income tax expense	0	0	0	–2,883	0	0	0	0	–2,883
Other comprehensive income	0	0	0	0	124	–1,312	–1,188	0	–1,188
Balance at September 30, 2018	6,000,000	6,000	22,164	57,282	–66	–1,922	–1,989	0	83,457
Balance at January 1, 2019	5,995,237	6,000	22,193	55,266	300	–1,289	–991	–59	82,409
Acquisition of treasury shares	–45,237	0	0	0	0	0	0	–446	–446
Equity-settled share-based payment	0	0	57	0	0	0	0	0	57
Income after income tax expense	0	0	0	–4,938	0	0	0	0	–4,938
Other comprehensive income	0	0	0	0	–1,460	644	–816	0	–816
Balance at September 30, 2019	5,950,000	6,000	22,250	50,328	–1,160	–645	–1,807	–505	76,266

2 Financial information 3 Further information

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE NINE MONTHS ENDING PERIOD ON SEPTEMBER 30, 2019

in kEUR	9M / 2019	9M / 2018
Net income	–4,938	–2,883
Income taxes	1,988	1,637
Net interest expense	2,219	1,566
Depreciation of property, plant and equipment	10,861	7,347
Amortization of intangible assets	3,021	2,564
Gain (+)/loss (–) on disposal of property, plant and equipment	–76	4
Other non-cash income (+) and expenses (–)	–118	193
Change in net working capital	–313	–9,305
Inventories	–7,773	–1,413
Contract assets	–1,425	–1,284
Trade and other receivables	5,414	8,701
Contract liabilities	3,037	0
Trade and other payables	434	–15,309
Other receivables	–458	5,582
Other liabilities	2,467	–55
Provisions	–861	–2,252
Income tax receivables and liabilities	–970	–3,593
Net cash flow from operating activities	12,822	805
Proceeds from sale of property, plant and equipment	87	49
Disbursements for investments in property, plant and equipment	–8,764	–6,723
Disbursements for investments in intangible assets	–1,300	–2,818
Disbursements for cash deposits	0	–2,000
Net cash flow from investing activities	–9,977	–11,492
Proceeds from capital increase	0	27,950
Costs of capital procurement	0	–1,480
Proceeds from share premium services	–446	0
Proceeds from borrowings	3,241	6,496
Proceeds from repayment of loans	–4,521	–6,416
Repayments of lease liabilities	–3,468	0
Proceeds from factoring (+)/disbursements for factoring (–)	–6,200	–2,000
Interest paid	–1,150	–780
Net cash flow from financing activities	–12,544	23,770
Effect of currency translation on cash and cash equivalents	58	–49
Net increase/decrease in cash and cash equivalents	–9,641	13,033
Cash and cash equivalents at the begining of the period	31,169	15,836
Cash and cash equivalents at the end of the period	21,528	28,869

SEGMENT REPORT

Acoustics		Plastics		China		Materials		Corporate/ Consolidation		Group
in kEUR	9M/2019	9M/2018	9M/2019	9M/2018	9M/2019	9M/2018	9M/2019	9M/2018	9M/2019	9M/2018	9M/2019	9M/2018
Revenue – third parties	87,470	96,460	131,386	154,814	33,319	35,468	24,158	22,496	0	0	276,333	309,238
Revenue – inter-segment	0	0	168	2	0	0	6,665	8,068	–6,833	–8,070	0	0
Revenue segment	87,470	96,460	131,554	154,816	33,319	35,468	30,823	30,564	–6,833	–8,070	276,333	309,238
EBITDA	862	–1,179	9,893	10,044	4,271	6,045	1,494	1,360	–3,369	–6,039	13,151	10,231
EBITDA in % of revenue	1.0%	–1.2%	7.5%	6.5%	12.8%	17.0%	4.8%	4.4%	49.3%	74.8%	4.8%	3.3%
Adjusted EBITDA	862	270	9,893	14,663	4,598	7,027	1,494	1,537	–2,698	–2,431	14,149	21,067
Adjusted EBITDA in % of revenue	1.0%	0.3%	7.5%	9.5%	13.8%	19.8%	4.8%	5.0%	39.5%	30.1%	5.1%	6.8%
Depreciation and amortization	–3,288	–2,330	–6,552	–5,070	–2,642	–1,538	–1,083	–959	–317	–14	–13,882	–9,911
EBIT	–2,426	–3,509	3,341	4,974	1,629	4,507	411	401	–3,686	–6,053	–731	320
CAPEX	3,721	2,336	2,880	3,829	3,172	2,369	225	318	66	689	10,064	9,541

2 Financial information 3 Further information

FURTHER INFORMATION

BASIS OF REPORTING

This document is a quarterly statement pursuant to Section 53 of the Exchange Rules of the Frankfurt Stock Exchange (as of January 28, 2019), and does not constitute an interim report according to International Accounting Standard (IAS) 34. This quarterly statement should be read in conjunction with the Annual Report for the 2018 financial year and the additional information about the company that this includes.

The 2018 Annual Report is available at https://ir.sts.group/websites/stsgroup/English/3100/financial-reports.html

The accounting policies applied in this quarterly statement are based on those applied in the consolidated financial statements for the 2018 financial year. The only exception is the following International Financial Reporting Standard.

NEW INTERNATIONAL FINANCIAL REPORTING STANDARDS

The STS Group has applied the IFRS 16 "Leases" accounting standard since January 1, 2019. Due to the transition option selected, prior-period data have not been restated. Detailed information concerning the first-time application of this standard is presented in the Annual Report 2018. Any effects on the comparison between the first nine months of 2019 and 2018 are explained in the respective sections of this quarterly statement.

FINANCIAL CALENDAR 2019

November 13, 2019 Roadshow, Madrid

November 25 – 27, 2019 German Equity Forum 2019, Frankfurt am Main, Germany April 2, 2020 Publication of 2019 Annual Report May 13, 2020 Publication of Quarterly Report (QI) May 15, 2020 Annual General Meeting

IMPRINT

STS Group AG Zeppelinstr. 4 85399 Hallbergmoos Germany Phone: +49 (0)811 12 44 94-0 Fax: +49 (0)811 12 44 94-99

Responsible: STS Group AG Editing: STS Group AG/CROSS ALLIANCE communication GmbH Concept and design: Anzinger und Rasp, Munich