Precia Molen — Interim / Quarterly Report 2022

Sep 26, 2022

Privas, 26 September 2022, 6PM

First semester 2022 Consolidated Results : Continual growth of 8.4% with a slight decrease in EBITDA(*) margin

(in K€)	2022 S1	2021 S1	2020
Net consolidated sales	78 328	72 277	135 949
EBITDA(*)	10 643	10 306	19 135
In % of net sales	13.6%	14,3%	14,1%
Operational result	5 213	6 539	12 692
In % of net sales	6.7%	9,0%	9,30%
Net result Groupe share	2 984	4 118	7 061
In % of net sales	3.8%	5,7%	5,2%
Net income per share to date (in Euros)	0.55	0,76	1,31

Yearly forecast confirmed between 160 and 165 M€

These accounts were subject to a limited review by the auditors and were approved by the Group's Supervisory Board on September 26, 2022. (*) EBITDA is equal to the operating profit less depreciation and provisions (for risks and charges, post-employment benefits and working capital assets).

Increase in turnover up to €78.3 million

The Precia Molen Group achieved a turnover of € 78,3 million during the first half of 2022. This figure is up 8.4% compared to the same period in 2021. On a like-for-like basis, organic growth amounts to 7.1% consequently to an improved commercial presence on all our markets. Acquisitions made during the period had a 0.5% impact on sales (€ 0.4 million) and corresponds mainly to companies Vaucelle Nouvelles Technologies, CAPI Sénégal and Scaletec purchased during the quarter. Currency effects amount to +0.8%, driven by the decreasing value of Euro.

Turnover in France grew by 8.2%. In Europe, the Group experienced a slight decline in turnover of -0.7% despite very good performances by Precia Polska (+49.4%) and PM UK (+15.6%).

Revenue from other countries increased by 24% , especially in Asia Pacific with a very strong contribution from PM India (+50.6%) but also from Brazil (+75%) and the United States (+351%).

EBITDA margin maintained above 13%

EBITDA reached €10.6 million compared to €10.3 million last year, or 13.6% of revenue. This slight decrease in the EBITDA rate limited to 0.7% is explained by the operational difficulties encountered in the supply of materials and components, as well as their price levels which impact on our margin levels on sales of goods.

Operating income for the period amounted to €5.2 million and 6.7% of the turnover after taking into account a risk related to a quality problem that is now limited for which a guarantee provision of €1.15 million was recorded.

PMS (Precia Molen Service, in France) with €3.7 million in Operating Income (down very slightly) remains the Group's largest contributor. Precia Molen India's growth was also accompanied by record profitability.

The confirmed profitability of PM Brazil and PM North America also contributed to the EBITDA margin level. Milviteka in Lithuania suffered from a very high 2021 comparison base in a context impacted by the war in Ukraine while Australia remains a point of attention.

After taking into account a negative net financial result of € 94 K, positive currency effects of € 60 K and a tax expense of € 1.6 million, net income group share for the half-year reached € 3.0 million (-27.5%), representing 3.8% of turnover, compared to 5.7% in the first half of 2021. This level of profit also takes into account minority interests up to € 0.6 million.

Earnings per share amounted to €0.55 per share compared to €0.76 in the first half of 2021.

Cash: Working capital up (13% of turnover), impact of shortages of components and raw materials

The net cash flow generated by the activity (after tax) amounted to € 4.1 million compared to € 11.3 million in the first half of 2021 despite a stable EBITDA in value. Working capital requirements returned to their level at the end of 2020 at € 20.4 million (or 13.0% of revenue), inventory levels are up due to supply difficulties incurred over the half-year. Investments in the production tool remained high (net investments of €4.0 million) and significant acquisitions (€1.4 million).

As a result, cash net of financial debts (including lease debts for € 8.7 million) stood at € 7.1 million compared to €11.3 million 6 months ago.

Cash (cash and cash equivalents) amounted to € 31.9 million compared to € 36.8 million a year earlier.

Outlook and forecasts 2022 :

The level of order intake remained excellent during the first half of the year with an order book that continued to grow strongly but also difficulties that are currently unresolved on the supply of raw materials and components that weigh on our profitability.

In this context, the group expects a decrease of approximately 2% (2 points) in the operating profit rate over the year, which is explained by the performance of the first half of the year and in particular the provision for guarantee mentioned above.

In this context, the group's objectives for 2022 are consolidated revenue of between €160 million and €165 million and a stable EBITDA margin level over the year.

Release of half year financial report

The half-year financial report as of June 30, 2022 will be available from September 30, 2022 on the company's website: http://www.preciamolen.com/informations-reglementees/ (FR only)

The Chairman of the Executive Board Frédéric MEY

Contacts : PRECIA MOLEN BP 106 – 07001 PRIVAS CEDEX Tél. : +33 4 75 66 46 77 E-mail pmcontact@preciamolen.com

About Precia Molen

PRECIA MOLEN designs and manufactures, sells and maintains systems and solutions of industrial and commercial static weighing and of continuous weighing and dosing equipment. Main clients are heavy industries (mines, quarries, steel, environment, energy…) and light industries (food, chemicals, transportation and logistics…) and also public sectors (posts, local authorities…).

From design to after sales service, PRECIA-MOLEN is able to provide total weighing solutions for all businesses Precia Molen is present in 42 countries, with 22 commercial subsidiaries and a large network of selling agents. It has nine production plants (France, The Netherlands, India, the United Kingdom, Morocco, Australia, Poland and Lithuania) and three assembly sites (Brazil, USA, Malaysia). The Group pursues a large research and innovation program, and has been granted an "Innovating Company" status by French authority Oseo.

Precia Molen is listed on NYSE Euronext's C compartment in Paris (code ISIN FR0000060832 - Mnemo: PREC). - More information on

www.preciamolen.com