DELFINGEN Industry — Earnings Release 2020

Aug 7, 2020

DELFINGEN, a global leader in protection and routing solutions for electric and fluid on-board networks.

Press release

Net sales for 1st semester 2020

DELFINGEN demonstrates its ability to adapt to rapid changes in the automotive market and extreme economic conditions

In this period of crisis with the virtual halt in global automotive production in April and May, DELFINGEN has prioritized: - the absolute protection of its collaborators,

• the confirmation of its strategic orientations for a more ecological and autonomous mobility,
• the securing of its liquidity position, the adaptation of its cost structure and the control of its debts.

In the first half of 2020, DELFINGEN recorded a revenue of €84 million, a decrease of 27 % compared to the first half of 2019.

Consolidated sales at the end of June 2020

In million euros	2020*	2019	Published	Exchange rates Organic impact
Net sales	84.0	114.5	- 26.6 %	- 27.3 % 0.7 %
In million euros	2020*	2019	Published	Exchange rates Organic impact
Automotive	66.5	91.6	- 27.4 %	- 28.0 % 0.6 %
Industrial Market	17.6	22.9	- 23.2 %	- 24.7 % 1.5 %

* Unaudited

Automotive market: outperformance of the market by 7 points**

Net sales at constant exchange rates are down by 28 % at the end of June 2020 (- 27.4 % in published data), while the global automotive production decreased by 35 %**.

The impact of the exchange rates on - Automotive - sales at the end of June was favorable by €0.5 million, mainly due to the parity (€/\$).

All businesses outperformed the automotive market, with the exception of the Interior Trim Fastening business, which was mainly impacted by the sharp decline in the Indian market.

In million euros	2020	2019	Published	Organic	Exchange rates impact
Protection systems	47.5	66.9	- 28.9 %	- 29.4 %	0.5 %
Fluid Transfer Tubing	13.3	17.0	- 22.0 %	- 23.6 %	1.6 %
Assembly and Logistic Services	4.2	5.1	- 17.5 %	- 17.5 %	0.0 %
Interior Trim Fastening	1.5	2.6	- 43.2 %	- 41.3 %	- 1.9 %

By business

All regions have been affected at the same level by the crisis.

In million euros	2020	2019	Published	Organic	Exchange rates impact
Americas	32.7	45.2	- 27.7 %	- 29.1 %	1.4 %
Europe - Africa	23.9	32.6	- 26.7 %	- 26.4 %	- 0.3 %
Asia	9.9	13.8	- 28.3 %	- 28.0 %	- 0.3 %

In the Americas and Europe - Africa regions, which account for 85 % of its automotive sales, DELFINGEN clearly outperformed the market.

In million euros	Published	Automotive Market	Outperformance
Americas	- 27.7 %	- 40.0 %	12.3 pts
Europe - Africa	- 26.7 %	- 40.0 %	13.3 pts
Asia	- 28.3 %	- 28.0 %	- 0.3 pt

Industrial Market

By region

Industrial Market sales decreased by 24.7% at constant exchange rates (- 23.2 % in published data).

At constant exchange rates,

• Drossbach North America sales went down by 25.3 % (- 23.4 % in published data),
• The "Electrical and thermal insulation" business went down by 15.9 % (- 13.9 % in published data),
• The "Belts and straps" business went down by 29.5 %.

The impact of the exchange rates on - Industrial market - sales was favorable of €0.3 million - at the end of June mainly due to the parity (€/\$).

Perspectives

After historic declines in April and May, activity began to recover in June. The recovery was confirmed in July.

In view of the uncertainty on the markets, DELFINGEN has suspended its growth and profitability forecasts for the year 2020.

In its last press release issued on July 17th, DELFINGEN announced that it had entered into exclusive negotiations for the acquisition of SCHLEMMER's Europe - Africa perimeter.

EURONEXT GROWTH Paris ISIN Code: FR 0000054132 Mnemonic: ALDEL

Next press release: September 4th, 2020 - 2020 1st Half-year Results Contact: Mr. Christophe CLERC : +33 (0)3.81.90.73.00