Schoeller-Bleckmann Oilfield Equipment AG

Earnings Release • May 19, 2021

Q1 2021 Quarterly Highlights

LIQUID FUNDS _______	MEUR	326
31.12.2020	MEUR	314
SALES _______	MEUR	59
1-3/2020	MEUR	109
EBIT ___	MEUR	4
1-3/2020	MEUR	12
PROFIT AFTER TAX____	MEUR	1
1-3/2020	MEUR	9

HIGHLIGHTS Q1 2021

Positive results in Q1 2021 confirm recovery

SCHOELLER-BLECKMANN OILFIELD EQUIPMENT Aktiengesell-

schaft (SBO), listed on the ATX leading index of the Vienna Stock Exchange, recorded a positive first quarter of 2021. The upward trend compared to the previous quarter was evident across all regional markets and in all key figures. As a result, the gradual recovery of the global economy is also reflected in the company's key performance indicators. SBO's sales for the first three months of the year were MEUR 59.3, EBIT was clearly positive at MEUR 3.6, and profit after tax arrived at MEUR 1.0. Net liquidity increased to MEUR 21.8, and gearing improved further to minus 7.1 %. The book-to-bill ratio, which is a ratio of bookings to sales and an indicator of medium-term development, was now slightly above 1 again for the first time.

Gerald Grohmann, CEO of SBO:

"We started 2021 on a positive momentum, as we achieved an increase in bookings both in the North American markets and internationally. Provided there is no new unexpected slump of the global economy, the current slight growth should even accelerate in the second half of the year."

In addition, SBO is holding on to its FUTURE-ORIENTED INITIATIVES and pushing ahead with the "Diversified Markets" strategy, it has launched, which involves the use of SBO products across various industry sectors. The structural improvement of energy efficiency and reduction of carbon emissions is part of our ESG strategy.

BUSINESS DEVELOPMENT ___

SALES AND EARNINGS

As the impact of the COVID-19 pandemic started to play out only at the end of the first quarter of 2020, any year-on-year comparison is of limited significance. The crisis bottomed out in the third quarter of 2020. Since then a moderate recovery has set in, which has led to a positive result in the first quarter of 2021.

In the first three months of 2021, bookings at SBO were MEUR 60.0 (1-3/2020: MEUR 101.2). Sales arrived at MEUR 59.3 (1-3/2020: MEUR 108.9). The order backlog stood at MEUR 63.8 at the end of March (31 December 2020: MEUR 65.2).

Earnings before interest, taxes, depreciation, and amortization (EBITDA) went from MEUR 23.4 in the first quarter of 2020 to MEUR 11.6 in 2021, while the EBITDA margin came to 19.5 % (1-3/2020: 21.5 %). Profit from operations (EBIT) arrived at MEUR 3.6 (1-3/2020: MEUR 12.1). SBO's profit before tax was MEUR 2.4 (1-3/2020: MEUR 11.6), profit after tax stood at MEUR 1.0 (1-3/2020: MEUR 8.6). Earnings per share in the first quarter of 2021 amounted to EUR 0.06 (1-3/2020: EUR 0.54).

"Every crisis has its own characteristics and is subject to a variety of influences. In 2020, the industry experienced the deepest downturn since World War II. It is one of our strengths to react very promptly to different circumstances, and we are already pro-actively taking measures to meet the forthcoming upswing."

SEGMENTS

SBO's business is divided into two segments, Advanced Manufacturing & Services (AMS) and Oilfield Equipment (OE). Sales in the AMS segment were MEUR 29.8 in the first quarter (1-3/2020: MEUR 58.4), profit from operations (EBIT) came to MEUR minus 0.4 (1-3/2020: before restructuring measures MEUR 7.9). Sales in the OE segment arrived at MEUR 29.5 (1-3/2020: MEUR 50.6), while EBIT stood at MEUR 2.3 (1-3/2020: MEUR 6.4).

KEY BALANCE SHEET FIGURES

SBO's equity was rising to MEUR 306.9 during the first quarter of 2021 (31 December 2020: MEUR 287.0), while the company's equity ratio increased to 38.1 % (31 December 2020: 36.9 %). Net liquidity again improved from year-end 2020 to MEUR 21.8 (31 December 2020: MEUR 9.5). Gearing went down further to minus 7.1 % (31 December 2020:

minus 3.3 %). Liquid funds stood at MEUR 326.1 (31 December 2020: MEUR 314.0). Cashflow from operating activities in the first quarter of 2021 arrived at MEUR 5.2 (1-3/2020: MEUR 14.3). Capital expenditure for property, plant and equipment (CAPEX) stood at MEUR 4.3 (1-3/2020: MEUR 6.3).

SBO'S KEY PERFORMANCE INDICATORS AT A GLANCE

	UNIT	1-3/2021	1-3/2020
Sales	MEUR	59.3	108.9
Earnings before interest, taxes, depreciation and amortization (EBITDA)	MEUR	11.6	23.4
EBITDA margin	%	19.5	21.5
Profit from operations (EBIT)	MEUR	3.6	12.1
EBIT margin	%	6.0	11.1
Profit before tax	MEUR	2.4	11.6
Profit after tax	MEUR	1.0	8.6
Earnings per share	EUR	0.06	0.54
Cashflow from operating activities	MEUR	5.2	14.3
Liquid funds as of 31 March 2021 / 31 December 2020	MEUR	326.1	314.0
Headcount as of 31 March 2021 / 31 December 2020		1,155	1,131

MARKET ENVIRONMENT ___

In the first quarter of 2021, the positive upward trend seen in the fourth quarter of 2020 continued. Despite delivery problems and bottlenecks in vaccine supply, COVID-19 vaccination programs were launched in many regions of the world, stirring new optimism among the global population. The International Monetary Fund (IMF) expects the global economy to grow by 6.0 % in 2021, following a decline of 3.3 % in 2020. Significant economic growth should begin in all regions of the world in the second half of the year at the latest.1

This is also reflected in global energy demand, including demand for oil and gas. Following a historic slump in 2020, oil demand rose to 93.1 million barrels per day (mb/d) in the first quarter of 2021 (compared to 91.0 mb/d in full-year 2020). Global oil production arrived at 92.3 mb/d. Non-OPEC production volumes were 62.0 mb/d (1-3/2020: 66.7 mb/d). OPEC crude oil production came to 30.4 mb/d, significantly lower than in the same period last year (1-3/2020: 33.5 mb/d).2 The global rig count stood at 1,231 rigs at the end of March 2021. While the global rig count decreased year-on-year by 733 rigs, or 37.3 % (March 2020: 1,964 rigs), it went up by 127 rigs compared to the previous quarter (December 2020: 1,104 rigs). Growth was recorded across all regions, as the rig count increased by 50 rigs internationally (March 2021: 715 rigs), by 69 rigs in the United States (March 2021: 408 rigs) and 8 rigs in Canada (March 2021: 108 rigs).

Oil prices continued to rise as demand recovered. European Brent crude started 2021 at USD 51.80 per barrel and stood at USD 63.54 on the last trading day of the first quarter, an increase of 22.7 %. In the same period, the price of WTI rose from USD 48.52 per barrel to USD 59.16 (a plus of 21.9 %).3

¹ IMF, World Economic Outlook, April 2021.

• ² IEA Oil Market Report, April 2021.
• ³ Bloomberg, CO1 Brent Crude (ICE) and CL1 WTI Crude (Nymex).

OUTLOOK ___

The International Monetary Fund (IMF) forecasts economic growth to arrive at 5.1 % in developed countries and 6.7 % in emerging markets in 2021. The positive projections are mainly based on the continued implementation of COVID-19 vaccination campaigns. Overall global economic growth is projected to come to 4.4 % in 2022.4

The expected economic upturn will also have an impact on energy demand. A significant catch-up effect is expected on the oil and gas markets, starting primarily in the second half of 2021. To support oil prices, the OPEC+ countries have agreed on monthly meetings aimed at gradually adjusting production to the demand situation. Overall, global exploration and production spending is expected to increase by 6.8 % in 2021, thereof 5.1 % in North America and 7.2 % internationally.5

The restrictive capital spending measures observed before and during the COVID-19 pandemic could even produce a significant catch-up effect, which should once again accelerate demand for SBO products. The long-term assessment that oil and gas will have to cover more than 50 % of primary energy demand in the next two decades remains unchanged. With its high-quality products and their constant development, the SBO Group ensures that the supply of energy is more efficient and thus more environmentally friendly. Furthermore, as part of its sustainable growth strategy, SBO aim at increasingly offer its technologies to various industrial sectors.

"The rise in oil prices is setting the direction for our industry. Although climate policy goals have great importance, the supply of the world's population with the fossil fuels oil and gas must be secured. We are aware of this responsibility and are actively meeting these challenges," says CEO Gerald Grohmann and adds: "Taking advantage of opportunities in a dynamic environment is our strength. This is our daily practice and what we are comfortable with."

⁴ IMF, World Economic Outlook, April 2021. 5 Evercore ISI Research, The 2021 Evercore ISI Global E&P Spending Outlook, December 2020.

ABOUT SBO

SBO AT A GLANCE ___

SCHOELLER-BLECKMANN OILFIELD EQUIPMENT Aktiengesellschaft (SBO) is the global market leader in the production of high-precision components made of non-magnetic, high-alloy stainless steels manufactured to customer specifications. The Group is equally recognized worldwide for its high-efficiency drilling tools and equipment for the oil and gas industry.

With its patented materials and processes, including the innovative Direct Metal Laser Sintering (DMLS) 3D printing technology, SBO is expanding its leading position in the oil and gas industry alongside other sectors. The Group employs a workforce of more than 1,100 worldwide and is successfully positioned in technologically demanding, profitable niches. Information on the "Quality First"-based growth strategy and sustainable management (ESG) is available in the annual report at https://www.sbo.at/publikationen.

THE SBO SHARE ___

The share of Schoeller-Bleckmann Oilfield Equipment AG is listed in the Prime Market of the Vienna Stock Exchange and is part of the leading Austrian ATX index. In total, 16,000,000 par value shares with a par value of EUR 1.00 each have been issued.

The SBO share started the year at a price of EUR 31.10 on 4 January 2021 and closed at EUR 38.25 on 31 March 2021, more than doubling on its 2020 low of EUR 15.74 on 17 March 2020. The OSX rose by 21.1 % in the first quarter of 2021, while the Austrian leading index ATX increased by 13.6 %. Brent crude rose by 22.7 % and North American crude WTI by 21.9 %.

Market capitalization as of 31 March 2021 was MEUR 612. 67 % of the shares were in free float as of that key date.

EUR 31.10	EUR 38.25	MEUR 612
4 January 2021	31 March 2021	MARKET CAPITALIZATION – 31 March 2021

FINANCIAL CALENDAR 2021

DATE	EVENT
19 May 2021	Q1 2021
19 August 2021	HY 2021
25 November 2021	Q3 2021

CONTACT AND LEGAL NOTICE

Further information about SBO is available on www.sbo.at. If you have any questions regarding the company or would like to be included in SBO's Investor Relations Information Service (IRIS), please send an e-mail to investor\_relations@sbo.co.at.

DISCLAIMER

Note on quarterly reporting:

This quarterly report is also available in the German language. In the event of discrepancies, the German version shall prevail.

FORWARD-LOOKING STATEMENTS AND FORECASTS:

This corporate publication contains information with forward-looking statements. Parts of those statements contain forecasts regarding the future development of SBO, SBO group companies, relevant industries and the markets. All these statements as well as any other information contained in this corporate publication are for information only and do not substitute professional financial advice. As such, this information must not be understood as a recommendation or offer to buy or sell SBO shares, and SBO cannot be held liable therefrom.

CONSOLIDATED PROFIT AND LOSS STATEMENT ___

Q1 2021

1-3/2020	1-3/2021	IN TEUR
108,919	59,337	Sales
-76,569	-46,445	Cost of goods sold
32,350	12,892	Gross profit
-7,628	-4,522	Selling expenses
-10,536	-7,352	General and administrative expenses
-6,656	-2,950	Other operating expenses
4,824	5,495	Other operating income
12,354	3,563	Profit from operations before restructuring measures
-237	0	Restructuring expenses
12,117	3,563	Profit from operations after restructuring measures
690	127	Interest income
-1,179	-1,305	Interest expenses
0	12	Other financial income
-489	-1,166	Financial result
11,628	2,397	Profit before tax
-3,017	-1,408	Income taxes
8,611	989	Profit after tax
15,938,682	15,723,665	Average number of shares outstanding

(BASIC = DILUTED)	0.06	0.54

CONSOLIDATED BALANCE SHEET ___

IN TEUR
	31.03.2021	31.12.2020
Current assets
Cash and cash equivalents	326,092	313,950
Trade receivables	60,157	54,252
Other receivables and other assets	8,765	8,089
Assets held for sale	71	2,215
Inventories	116,787	114,015
Total current assets	511,872	492,521
Non-current assets
Property, plant and equipment	122,749	121,362
Goodwill	122,917	117,708
Other intangible assets	14,160	14,463
Long-term receivables and assets	4,108	3,930
Deferred tax assets	29,755	27,903
Total non-current assets	293,689	285,366
TOTAL ASSETS	805,561	777,887

LIABILITIES AND EQUITY

IN TEUR	31.03.2021	31.12.2020
Current liabilities
Liabilities to banks	37,012	33,938
Current portion of long-term loans	21,667	25,236
Lease liabilities	2,036	2,222
Trade payables	15,385	17,072
Government grants	215	215
Income tax payable	2,757	1,191
Other liabilities	145,977	138,415
Other provisions	7,286	6,562
Total current liabilities	232,335	224,851
Non-current liabilities
Long-term loans	245,616	245,312
Lease liabilities	5,376	5,125
Government grants	89	89
Provisions for employee benefits	6,919	6,859
Other liabilities	8,277	8,484
Deferred tax liabilities	96	129
Total non-current liabilities	266,373	265,998
Equity
Share capital	15,729	15,723
Capital reserve	62,861	62,780
Legal reserve	785	785
Other reserves	19	19
Currency translation reserve	14,992	-3,747
Retained earnings	212,467	211,478
Total equity	306,853	287,038
TOTAL LIABILITIES AND EQUITY	805,561	777,887

CONSOLIDATED CASHFLOW STATEMENT ___

IN TEUR
	1-3/2021	1-3/2020
OPERATING ACTIVITIES
Profit after tax	989	8,611
Depreciation, amortization and impairments	8,027	11,255
Other non-cash expenses and revenues	-5,306	-886
Cashflow from profit	3,710	18,980
Change in working capital	1,470	-4,691
Cashflow from operating activities	5,180	14,289
INVESTING ACTIVITIES
Expenditures for property, plant and equipment and intangible assets	-4,298	-6,279
Other activities	391	1,058
Cashflow from investing activities	-3,907	-5,221
FREE CASHFLOW	1,273	9,068
FINANCING ACTIVITIES
Change in financial liabilities	-55	-29,776
Cashflow from financing activities	-55	-29,776
Change in cash and cash equivalents	1,218	-20,708
Cash and cash equivalents at the beginning of the period	313,950	265,211
Effects of exchange rate changes on cash and cash equivalents	10,924	3,011
Cash and cash equivalents at the end of the period	326,092	247,514

SEGMENT REPORTING ___

1-3/2021

IN TEUR	ADVANCED MANUFACTURING & SERVICES	OILFIELD EQUIPMENT	SBO-HOLDING & CONSOLIDATION	GROUP
External sales	29,808	29,529	0	59,337
Intercompany sales	10,976	5,214	-16,190	0
Total sales	40,784	34,743	-16,190	59,337
Profit from operations (EBIT) before restructuring measures	-442	2,302	1,703	3,563
Profit / loss before tax	-197	2,138	456	2,397

1-3/2020

IN TEUR	ADVANCED MANUFACTURING & SERVICES	OILFIELD EQUIPMENT	SBO-HOLDING & CONSOLIDATION	GROUP
External sales	58,359	50,560	0	108,919
Intercompany sales	15,588	7,840	-23,428	0
Total sales	73,947	58,400	-23,428	108,919
Profit from operations (EBIT) before restructuring measures	7,859	6,379	-1,884	12,354
Profit / loss before tax	7,932	6,236	-2,540	11,628