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Delignit AG

Earnings Release Oct 7, 2021

5383_10-q_2021-10-07_76eadfb3-e392-4ee2-8ebc-a3c2426aca23.pdf

Earnings Release

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Contents

Brief portrait of the Delignit Group 3
Delignit Group at a glance 4
Greetings from the Management Board 5
Group management report for the fiscal half-year from
1 January to 30 June 2021 Delignit AG, Blomberg
7
1. General description of the company 7
2. Business and framework conditions 7
3. Market environment of the Delignit Group 8
4. Organisation 9
5. Results of operations, financial position and net assets 11
6. Hedging transactions 12
7. Risk report 13
8. Strategic orientation and opportunities of the Delignit Group 13
9. Sustainability/financial and non-financial performance indicators 15
10. Events after the reporting period 15
11. Other information 15
12. Guidance 16
IFRS interim consolidated statement of financial position of Delignit AG
(unaudited) as at 30 June 2021
18
IFRS interim consolidated statement of comprehensive income (unaudited)
for the fiscal half-year from 1 January to 30 June 2021 of Delignit AG
20
Disclosures on accounting 21
Financial calendar 21
Contact 21

Brief portrait of the Delignit Group

The Delignit Group develops, manufactures and sells ecological, usually hardwood-based, materials and system solutions based on the natural, renewable and CO2-neutral raw material wood.

As a development, project and serial supplier for technology industries, such as the automotive industry, aviation industry and railway industry, business activity today is focused on creating and implementing technological and customised applications and systems.

These applications and systems are used in the form of specific – predominantly ready-to-install – parts, components, system solutions and module solutions. The foundation for this is provided by the Delignit material, which is primarily based on beech wood. Use of Delignit materials as a substitute for applications made of non-renewable raw materials improves the environmental balance of our customers' products and meets their increasing ecological requirements.

The Delignit Group's operating business is divided into two target markets:

Automotive target market:

The Automotive target market is divided into the product groups light commercial vehicles (LCV), motor caravans and passenger cars. The business activity focuses on the manufacture and sale of cargo bay protection systems and security systems (interior) for the LCV class. For example, these systems are used extensively by leading manufacturers of light commercial vehicles as original equipment (OEM) and retrofit equipment (after-sales) as cargo bay floors, walls and partition walls. Interior furnishings, such as cabinet systems, are supplied for the motor caravan sector. In the passenger car sector, for example, trunk covers are used by well-known OEMs.

Technological Applications target market:

The products of the Technological Applications target market are divided into the product groups Building Equipment, Compressed Wood, Railfloor and Special Applications. In the Building Equipment business, for example, flooring solutions for automotive manufacturing plants, and for goods distribution centres and beech multiplex assortments are supplied by the timber trade. The Compressed Wood business consists of highly-compressed and medium-compressed materials that are used for plant construction, machine construction and transformer construction applications. The Railfloor business provides manufacturers of rail vehicles with floor system solutions for fulfilment of international fire protection and sound insulation concepts. The Special business includes various special products for applications, such as model making, musical instruments and sports equipment.

Delignit Group at a glance

Fiscal year (01.01. - 30.06.) 2021 2020 Δ 2021 /
IFRS IFRS 2020
Earnings figures € thousand € thousand %
Revenue 36,327 25,633 41.7 %
Total operating performance 37,776 25,472 48.3 %
Cost of materials -21,918 -14,026 56.3 %
Staff costs -9,330 -7,792 19.7 %
Other operating expenses -3,289 -2,077 58.4 %
EBITDA 3,239 1,577 105.4 %
EBITDA margin 8.6 % 6.2 % 2.4%*
EBIT 2,071 269 669.9 %
EBIT margin 5.5 % 1.1 % 4.4 %*
EBT 2,000 124 1,512.9 %
EBT margin 5.3 % 0.5 % 4.8 %*
Consolidated net income for the
first half of the year 1,411 48 2,839.6 %
Number of shares 8,193,900 8,193,900 0.0 %
EPS in € 0.17 0.01 2,839.6 %
Statement of financial position
figures € thousand € thousand %
Non-current assets 17,294 19,603 -11.8 %
Current assets 22,300 20,930 6.5 %
Cash and cash equivalents contained
therein 2,721 1,103 146.7 %
Subscribed capital (share capital) 8,194 8,194 0.0 %
Other equity 14,643 11,456 27.8 %
Total equity 22,837 19,650 16.2 %
Equity ratio 57.7 % 48.5 % 9.2 %*
Non-current liabilities and provisions 5,721 7,375 -22.4 %
Current liabilities and provisions 11,036 13,508 -18.3 %
Total assets 39,594 40,533 -2.3 %
Net financial debt (net debt (-)/net
cash (+))
-4,185 -11,976 -65.1 %
Employees (reporting d30.06.)
Germany 390 380 2.6 %

*Change in percentage points, differences due to commercial rounding

Greetings from the Management Board

Dear shareholders, Dear employees,

The Delignit Group set a new record for half-year revenue in the first half of 2021 despite a continued difficult market environment. After a drop in revenue on account of the pandemic at the start of last year, the markets began a clear recovery in the second half of 2020 that continued into the first six months of 2021. Consolidated revenue for the first half of the year therefore increased significantly by 41.7 % year-on-year to € 36.3 million. Earnings before interest, taxes, depreciation and amortisation (EBITDA), more than doubled, rising by 105.4 % year-on-year to € 3.2 million.

While last year was dominated by the COVID-19 pandemic, shortages of electronics components and associated plant closures at various OEMs caused corresponding production disruptions at our plants in the first half of 2021. While the supply disruption as a result were moderate compared to the previous year, nonetheless this caused us very particular planning challenges as these interruptions in production typically occur at very short notice and lead to not inconsiderable efficiency losses at our plants. As the demand on our end markets is very high at the same time, the advised call-off figures are at a level which is fulfilled by overtime and component purchases due to short reaction times. These necessary measures, in combination with spontaneous plant closures, are squeezing profitability. While the supply situation on the international semiconductor market is still fraught with considerable uncertainty, our key OEM customers are anticipating a gradual easing in the second half of 2021 and significant backlog effects from prior plant closures.

The development of the serial supply contract for the motor caravan market in particular proved positive and stable in the first six months of fiscal 2021. Driven by consistently strong customer demand, revenue increased significantly compared to the same period of the previous year.

We anticipate further impairments in the remaining fiscal 2021 due to the coronavirus pandemic and the ongoing shortage of electronics components. We are also monitoring developments on the international raw materials markets with all due caution, where a number of raw materials are being hit by steep price increases and supply shortages. Fortunately, the Group's main raw material, beech, is an exception to this development and remains relatively resilient in terms of price and availability. The occasional sharp shortage of freight availability and the associated price increases have also caused us challenges as an export-oriented company.

Overall, on the basis of a positive market environment, a well-filled order book and the expectation of gradual easing on the international semiconductor market, we on the Management Board are optimistic for the future and are still forecasting a significant increase in revenue to more than € 67 million in fiscal 2021. Assuming that increases in raw material prices can be successfully passed on to customers, we, the Management Board, are also committed to retaining the forecast profitability of an EBITDA margin of at least 9 %.

Finally, we would like to thank our staff, who have again stood together in exemplary fashion, sometimes virtually, for our mutual success in these dynamic times. We are delighted to have been able to offer most of our workforce a vaccination, thereby ensuring a high vaccination rate within the Group.

We would also like to thank you, our shareholders, for your confidence in Delignit AG.

Blomberg, August 2021

Kind regards,

CEO CSO

Markus Büscher Thorsten Duray

Group management report for the fiscal half-year from 1 January to 30 June 2021 Delignit AG, Blomberg

1. General description of the company

The Delignit Group develops, produces and sells ecological materials and system solutions made of renewable raw materials under the brand name Delignit. As a recognised development, project and serial supplier of leading automotive groups, the Delignit Group is, among other things, world market leader for supplying the automotive industry with cargo bay protection and cargo securing systems for light commercial vehicles. With a variety of applications and a vertical integration that are unique in its industry, the Delignit Group serves numerous other technology sectors, for example as a worldwide system supplier of reputable rail vehicle manufacturers. Delignit solutions have exceptional technical properties and are also used, among other things, as trunk floors in passenger cars, interior equipment for motor caravans and special floors for factory and logistics buildings and to improve building security standards. Delignit material is predominantly based on European hardwood, is CO2-neutral in its life cycle and therefore ecologically superior to non-regenerative materials. The use of the Delignit material therefore improves the environmental performance of customer products and meets their increasing ecological requirements. The company was founded over 200 years ago. Delignit AG is listed in the Scale Segment of the Frankfurt Stock Exchange under securities number (WKN) A0MZ4B.

2. Business and framework conditions

After a mixed first quarter of 2021 for the economy as a whole, the first signs of recovery in retail, the hospitality sector and tourism, plus the stabilisation of production, became apparent in the months of April, May and June. However, supply shortages slowed production in construction, mechanical engineering and manufacturing especially, thereby weighing on expectations. This includes the automotive industry in particular, which is being brought to a halt by the semiconductor shortage. Its production was down by -7.2 % month-on-month in May 2021, 27.9 % below its pre-crisis level after having returned to a rising trend at the end of 2020. So far, however, there has not been a wave of insolvencies triggered by the pandemic (source: German Federal Statistical Office press release of 13 July 2021).

The ifo Institute's Business Climate Index climbed from 92.5 points in December 2020 to 101.8 points in June 2021. Companies are rating their current business situation considerably better. Optimism for the second half of the year was also on the rise. The German economy seems to be shaking off the coronavirus crisis (source: results of ifo surveys in June 2021).

The special target markets of the Delignit Group, i.e. the markets in the automotive sector and the engineered wood industry, performed positively in the first six months.

The number of new registrations of light commercial vehicles in Europe rose by 49.6 % year-on-year in the first five months of 2021. Increases in registration figures were reported on all European LCV markets. On the biggest European LCV markets, such as France and Spain, new registrations increased by 30.9 % and 89.0 % respectively. The number of new registrations of light commercial vehicles in the Delignit Group's most important market, Germany, rose by 47.7 % year-on-year (source: ACEA).

The number of new registrations of passenger cars in Europe climbed by 29.5 % year-on-year in the first five months of the year. An increase of 37.2 % was reported in Germany (source: ACEA).

Companies in the engineered wood industry increased their revenue by an average of 14.9 % year-on-year in the period from January to April 2021. In April, revenue rose significantly by 41.5 % compared to the same month of the previous year. While domestic revenue was up by 9.3 % year-on-year and 28.2 % as against the same month of the previous year in April, international revenue rose even more significantly by 25.8 % year-on-year and by 71.4 % from April 2020 to April 2021 (source: market data circular of the Association of the German Wood-based Panel Industry of 20 June 2021).

3. Market environment of the Delignit Group

The Delignit Group's revenue rose significantly by 41.7 % in the first half of 2021 after a drop of 20.6 % in the previous year. The revenue generated thus amounted to € 36,327 thousand after € 25,633 thousand in the previous year. In a multi-year comparison, revenue has risen by an average of 9.3 % per year since the first half of 2010 to a new high for the first half of a fiscal year.

Figure I: Half-year revenue of the Delignit Group since 2010 in € thousand

On the Automotive target market, revenue rose by 48.0 % in the first half of 2021 after a decline of 19.6 % in the same period of the previous year. This was largely due to production shutdowns by all major OEM customers in response to the COVID-19 pandemic in the period from March to May 2020. The positive trend in revenue from the second half of 2020 therefore continued.

On the Technological Applications target markets, revenue rose 7.8 % yearon-year in the first half of 2021 (previous year: -25.8 %).

The wood-based products of the Delignit Group are characterised by special technical and mechanical properties (e.g. abrasion and wear resistance, dimensional stability and breaking load), but also by ecological aspects. Wood products are long-term repositories for climate-damaging CO2: One cubic metre of wood absorbs almost one tonne of carbon dioxide.

4. Organisation

a. Supervisory Board

The Supervisory Board of Delignit AG consists of Mr Gert-Maria Freimuth, Mr Anton Breitkopf and Dr Christof Nesemeier. The Supervisory Board was elected in its current composition when the company was founded on 9 July 2007 and was re-elected in its current composition at the General Meetings on 10 July 2012 and 20 June 2017. The Supervisory Board elected Mr Gert-Maria Freimuth as its Chairman and Mr Anton Breitkopf as the Deputy Chairman. The term in office ends at the close of the General Meeting that decides on formal approval of the actions of the members of the Supervisory Board for fiscal 2021.

b. Management Board

The Management Board responsibilities are allocated as follows:

CEO Markus Büscher is responsible for the areas of Strategic Development, Controlling, Human Resources, Legal, Purchasing, IT, Production, R&D and Investor Relations. Thorsten Duray is responsible for Sales and Marketing.

An update to the Rules of Procedure for the Management Board dated 13 July 2007 was adopted by way of resolution of the Supervisory Board on 25 August 2020. The Rules of Procedure define which transactions (e.g. planned investments above a set amount and acquisitions and sales of companies and land above a set amount) require the approval of the Supervisory Board. The Management Board has been appointed for a term that will expire on 30 September 2023.

According to the Articles of Association, the company is legally represented jointly by two members of the Management Board or by one member of the Management Board in conjunction with an authorised signatory. The members of the Management Board are also responsible for management in all Group companies together with the local management of these companies.

c. Shareholdings

As at the end of the reporting period, Delignit AG held direct or indirect interests in the following companies:

Figure II: Organisation chart of the Delignit Group

d. Employees

Thanks to the rise in revenue and the higher operating income, the headcount was increased from 370 employees at the beginning of the year to 390. Furthermore, the number of temporary workers was increased to 60 on a short-term basis.

The companies of the Delignit Group are well-known training companies, which systematically build up their employees' qualifications, including on the basis of a professional quality management system, and integrate them into the continuous improvement process of operational flows. This process was continued with intensive integration of the workforce in the first half of 2021. The companies of the Delignit Group continued to provide training in the first half of 2021 and will also take on this responsibility in subsequent years.

5. Results of operations, financial position and net assets

The Delignit Group experienced a challenging first half of 2021. The primary goal in the first months of the year was to adapt capacity in line with the dynamic rise in demand. This focused on safeguarding the procurement of materials and freight capacity, and on responding to the postponement of revenue caused by customer production shutdowns on account of shortages of electronics components.

Results of operations

The Delignit Group's revenue rose by 41.7 % to € 36,327 thousand in the first half of 2021 (previous year: € 25,633 thousand). Operating income, including other operating income and inventory changes, totalled € 37,776 thousand (previous year: € 25,472 thousand).

The cost of materials amounted to 58.0 % of operating income as against 55.1 % in the previous year, an increase relative to operating income. In the same period of the previous year, the cost of materials was down significantly relative to operating income as a result of the insourcing of purchased services, the reduction of temporary workers in production and an altered product mix, which was essentially shaped by the temporary, almost total loss of OEM business. In the first half of 2021, these effects have been partially reversed again on account of the capacity increase that became necessary at short notice.

Staff costs amounted to € 9,330 thousand after € 7,792 thousand in the previous year. The rise in staff costs is essentially due to the discontinuation of short-time work that was still in effect in the previous year. The staff costs ratio declined from 30.6 % in the previous year to 27.4 %.

Other operating expenses climbed by 58.4 % year-on-year. In the previous year, this was due to lower maintenance expenses as a result of the lower machinery utilisation and a systematic reduction in overheads during the plant shutdowns in the first half of 2020. The other operating expenses ratio rose virtually in proportion to operating income, and is only slightly higher than the 8.2 % for the same period of the previous year at 8.7 %.

EBITDA amounted to € 3,239 thousand (previous year: € 1,577 thousand) and thus rose by 105.4 % year-on-year. The EBITDA margin was 8.6 % after 6.2 % in the previous year.

Depreciation and amortisation declined from € 1,308 thousand in the same period of the previous year to € 1,168 thousand in the first half of 2021. The reduction in depreciation and amortisation in the fiscal year was due to the lower level of investment in machinery and technical equipment in fiscal 2020.

For the stated reasons, EBIT rose to € 2,071 thousand in the reporting period after € 269 thousand in the previous year.

Net assets

Inventories amounted to € 14,518 thousand after € 14,511 thousand in the previous year. Non-current assets amounted to € 16,189 thousand (previous year: € 18,096 thousand) as at 30 June 2021 and essentially included land and machinery. Current provisions were essentially recognised for uncertain liabilities and staff costs. Other current liabilities essentially include liabilities from taxes and from wages and salaries.

The equity of the Delignit Group equity rose to € 22,837 thousand as at 30 June 2021 (previous year: € 19,650 thousand), resulting in an equity ratio of 57.7 % (previous year: 48.5 %) due to the lower total assets.

Figure III: Changes in equity since 2010 in € thousand

Financial position

The Delignit Group's cash and cash equivalents amounted to € 2,721 thousand as at the end of the reporting period (previous year: € 1,103 thousand). In total, current liabilities to banks amounted to € 2,627 thousand and non-current liabilities to banks to € 1,400 thousand. Net debt was down by € 7,791 thousand as against the first half of the previous year at € 4,185 thousand.

The Delignit Group has sufficient lines of credit to finance working capital. In the opinion of the company, the Delignit Group was and is able to meet its financial obligations at all times.

6. Hedging transactions

Transactions within the Group are carried out exclusively on a euro basis. This also applies to Delignit North America Inc., which only settles in a foreign currency for services obtained in the United States. As the net amount of non-hedged foreign currency positions in the Group due to transactions with foreign companies outside the euro area has only been minimal to date, the Delignit Group has not pursued any active exchange rate hedging for other currencies.

7. Risk report

The risks to business development of the Delignit Group are described in detail in the Group management report for fiscal 2020, which can be viewed on Delignit AG's website.

However, incalculable risks have arisen as a result of the global proliferation of mutations of the coronavirus infections and the unforeseeable future course of the pandemic. It is not currently possible to conclusively estimate the influence of the COVID-19 pandemic and its economic repercussions on the Delignit Group.

The global industrial supply shortage of electronics components and bottlenecks on raw materials markets with associated spiralling costs in some cases are growing risks.

8. Strategic orientation and opportunities of the Delignit Group

The corporate strategy continues to be based on megatrends on the technological target markets. The Delignit Group recognises two ecologically-driven trends:

  • Firstly, the endeavour to use renewable raw materials, insofar as these materials are technologically competitive, as a substitute for finite products.
  • Secondly, undiminished pressure to develop system solutions that are as weight-optimised as possible.

The trend in forestry in Europe and Germany, in which mixed forests and fully deciduous forests are being prioritised over coniferous forests, is also viewed as an opportunity in the medium term as it offers a means of securing the supply of round wood.

Furthermore, the Delignit Group is increasingly focused on providing technological answers to urgent user questions, partly resulting from new legislation (e.g. CO2 fleet consumption in the automotive industry), and developing appropriate system solutions. Consequently, the Delignit Group is continuing this successful strategy of combining material, application and system expertise in a targeted manner.

This is being achieved via the methods presented below:

Material development and qualification:

The Delignit material with its special, primarily technical properties is an essential foundation for the successful development of the Delignit Group. The Delignit Group intends to further develop the Delignit material as part of its development activities and to qualify it for special applications and customer requirements. In the current fiscal year, intensive efforts will again be undertaken in product development. Development is always focused on the principle of developing ecological products for technological applications. Therefore, the market opportunities and advantages that feature a renewable raw material rather than finite raw materials must also be exploited and emphasised.

  • Transfer of the business model:
  • Geographical transfer

The product innovations that have been successfully placed in the automotive markets in particular are to be used to further extend the market leadership already achieved in Germany in the sector of cargo bay securing systems for light commercial vehicles and to transfer this expertise into other markets. The successes achieved in internationalisation in recent years are to be continued accordingly.

  • Transfer from the application perspective The multitude of product developments over the past few years is an excellent basis for expansion to additional fields of application. In particular, development work is currently focusing on the target markets of the automotive industry.
  • But the increasing globalisation of the companies and groups and the associated internationalisation are still also being recognised as a trend and driver. As a result, the Procurement organisation has higher standards regarding suppliers' system competence. The good market position as a system supplier in the automotive OEM business is to be exploited in order to acquire additional serial supply orders. The aim is to take advantage of the existing process expertise and good reputation on the market to achieve further market penetration, which will result in increased planning security at the same time.
  • Finally, the raw material advantage of the most sustainable of all materials, namely wood, is to be exploited. The Delignit Group recognises the opportunity to take advantage of the market possibilities through increased emphasis on the ecological factors of "sustainability" and "cascade".
  • The growth strategy is based on diversification in niches on the basis of technological market leadership:

Figure IV: Strategic orientation of the Delignit Group

9. Sustainability/financial and non-financial performance indicators

Sustainability is a central entrepreneurial task. As its main source of raw material is renewable wood, the Delignit Group clearly fulfils both the ecological interpretation of the term and the prospective protection of the resource base in an exemplary manner. To additionally reinforce the future viability of the company, work is constantly being done to improve its economic, ecological and social performance:

  • Innovations and new technologies are an essential component of the strategic evolution of the Group. Work on this is undertaken constantly as part of an existing continuous improvement process.
  • Employees are qualified through intensive training of young people, continuing education in all Group areas, high standards of occupational health and safety and the targeted promotion of future managers.
  • The Management Board has stipulated environmental and climate protection as an important corporate target. In addition to the PEFC standards already implemented, for example, there is an energy management system certified in accordance with DIN ISO 50001 and an environmental management system certified in accordance with DIN ISO 14001.
  • As a future-oriented employer, the Delignit Group is aware of its social, ethical and ecological responsibility. The Group's key corporate values are set out in the Code of Conduct that was introduced in fiscal 2021.
  • It uses revenue and the EBITDA margin as the key financial performance indicators for controlling and performance measurement in the Delignit Group.

10. Events after the reporting period

No events of particular importance occurred after the end of the reporting period.

11. Other information

The issued capital of € 8,193,900.00 is divided into 8,193,900 no-par value bearer shares (shares without a nominal amount), each with a notional share of € 1.00 in the share capital of the company.

The Supervisory Board determines the number of and appoints Management Board members, concludes their employment contracts and revokes the appointments. The Supervisory Board is also authorised to make amendments to the Articles of Association that relate only to wording.

According to the resolution of the General Meeting of 25 August 2020, the Management Board is authorised to increase the share capital of the company with the approval of the Supervisory Board on one or several occasions until 24 August 2025 by up to a total of € 4,096,950 against cash deposits or contributions in kind by issuing new no-par value bearer shares (Authorised Capital 2020).

In addition, the General Meeting of 25 August 2020 authorised the Management Board, with the approval of the Supervisory Board, to issue bearer or registered convertible bonds or warrant bonds with a total amount of up to € 81,939,000.00 and a term of no longer than ten years until 24 August 2025 and to grant the creditors of these bonds conversion rights to new no-par value bearer shares of Delignit AG with a pro rata share in the share capital of up to a total of € 4,096,950.00, subject to the specific conditions of the bonds. Convertible bonds may also include conversion obligations. The bonds may be issued in one or several tranches (Contingent Capital 2020).

No treasury shares had been purchased by 30 June of the current fiscal year.

12. Guidance

Framework conditions

The Delignit Group's revenue rose by 41.7 % year-on-year in the first half of 2021 to a new record for a first half-year. The EBITDA margin rose to 8.6 % of operating income after 6.2 % in the previous year.

Economic environment of the guidance section

The prospects for overall economic development in Europe in 2021 have returned to growth. According to its Spring 2021 Economic Forecast, the European Commission is anticipating that the economy of the EU will grow by 4.2 % in 2021 and 4.4 % in 2022, which means that the economy should return to a pre-crisis level by the end of 2022 (source: European Commission's Spring 2021 Economic Forecast).

However, the European Commission's outlook is still subject to considerable risks. The epidemiological situation and the efficiency and effectiveness of vaccination programmes could develop better or worse than assumed in the central guidance scenario. The timing of the end of political support is another factor. If this is scaled back too quickly, the recovery could be nipped in the bud. However, if it comes too late, this could lead to market distortion and stop unprofitable businesses from being halted. Crises at companies could have a greater impact on the labour market and the financial sector than expected (Source: European Commission's Spring 2021 Economic Forecast).

Overall, the Delignit Group feels that conditions are good for fresh growth in fiscal 2021. However, the unpredictable challenges that lie before the Delignit Group are the uncertainty concerning possible further economic restrictions due to the COVID-19 pandemic and the ongoing development as regards supply shortages of electronics components. Future business performance can therefore hardly be estimated to a sufficient degree of precision.

Subject to a stable economy for all the markets of the Delignit Group, calloff volumes in line with OEM tender agreements, stable supply on procurement markets, further revenue increases for the motor caravan order and expenses from the virtual stock option programme for management as in the previous year, the Delignit Group expects revenue to exceed € 67 million in fiscal 2021. The Group is also committed to retaining by its profitability guidance of an EBITDA margin of at least 9 %, assuming that price increases in raw materials can be successfully passed on to customers.

Blomberg, August 2021

CEO CSO

Markus Büscher Thorsten Duray

IFRS interim consolidated statement of financial position of Delignit AG (unaudited) as at 30 June 2021

A S S E T S 30.06.2021
€ thousand
30.06.2020
€ thousand
A. Current assets
1.
Inventories
14,518 14,511
2.
Trade receivables
4,756 3,774
3.
Due from affiliated companies
1 1
4.
Other current receivables/
assets
304 1,541
5.
Cash and cash equivalents
2,721 1,103
Current assets 22,300 20,930
B. Non-current assets
1.
Goodwill
2,178 2,178
2.
Other intangible assets
1,010 1,221
3.
Property, plant and equipment
13,001 14,697
4.
Other non-current financial
assets
774 1,211
5.
Deferred tax assets
331 296
Non-current assets 17,294 19,603
Assets, total 39,594 40,533
L I A B I L I T I E S 30.06.2021 30.06.2020
€ thousand € thousand
A. Current liabilities
1. Other current provisions 3,103 2,573
2. Current financial liabilities 2,627 7,541
3. Trade payables 3,863 1,983
4. Other current liabilities 1,443 1,411
Current liabilities and provisions 11,036 13,508
B. Non-current liabilities
1. Provisions for pensions 1,100 1,250
2. Other non-current provisions 118 141
3. Deferred tax liabilities 763 975
4. Non-current financial liabilities 1,400 2,028
5. Other non-current liabilities 2,340 2,981
Non-current provisions and liabilities 5,721 7,375
C. Equity
1. Subscribed capital 8,194 8,194
2. Capital reserves 1,063 1,063
3. Revenue reserves 4,000 3,000
4. Amounts recognised directly in equity -594 -601
5. Currency translation reserve -20 7,946
6. Consolidated net income carried forward 10,194 48
Equity 22,837 19,650
Liabilities, total 39,594 40,533

IFRS interim consolidated statement of comprehensive income (unaudited)

for the fiscal half-year from 1 January to 30 June 2021 of Delignit AG

30.06.2021 30.06.2020
€ thousand € thousand
1. Revenue 36,327 25,633
2. Other operating income 80 454
3. Inventory changes 1,369 -615
4. Cost of materials -21,918 -14,026
5. Staff costs -9,330 -7,792
6. Amortisation and depreciation on intangible
assets and property, plant and equipment -1,168 -1,308
7. Other operating expenses -3,289 -2,077
8. Earnings before interest and taxes (EBIT) 2,071 269
9. Interest expenses -71 -145
10. Financial result -71 -145
11. Earnings before tax (EBT) 2,000 124
12. Income taxes -556 -43
13. Other taxes -33 -33
14. Consolidated net income
for the first half of the year
1,411 48
15. Earnings per share in € 0.17 0.01

Disclosures on accounting

The consolidated financial statements as at 30 June 2021 have been voluntarily prepared while exercising the option specified in section 315e of the German Commercial Code (HGB) in accordance with the International Financial Reporting Standards (IFRS) of the International Accounting Standard Board (IASB) valid at the end of the reporting period and as applicable in the EU.

The accounting policies applied are consistent with the IFRS standards and interpretations effective as at 30 June 2021. The half-year financial statements of the companies included in Delignit AG's consolidated financial statements are based on uniform accounting policies. They were prepared as at the same reporting date as these consolidated financial statements. In accordance with IFRS 1.51, the consolidated statement of financial position was structured according to current and non-current assets and liabilities. The income statement is prepared in accordance with the nature of expense method.

Financial calendar

End of the fiscal year

31 December 2021

Hamburg Investor Day

25 August 2021

German Equity Forum 2021

22 - 24 November 2021

Annual report 2021:

April 2022

Contact

Investor Relations

Delignit AG Königswinkel 2-6 32825 Blomberg, Germany Tel.: +49-5235-966-100 Fax: +49-5235-966-105 e-mail: [email protected] www.delignit.com

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