S&T AG: Profit (EBITDA) to exceed 10% in 2020 for the first time

Wednesday, 22nd January 2020

Austria

Increased EBITDA guidance for 2019
EBITDA to exceed 10% for the first time in 2020
Medium-term goal Agenda 2023: Increase of the EBITDA target from EUR 200 million to EUR 220 million

Linz, 22.01.2020. S&T AG (www.snt.at) plans to continue its strong growth in the 2020 financial year and has announced its ambitious targets for the current year: Revenues are expected to reach at least EUR 1.250 billion and profitability around EUR 130 million EBITDA, which corresponds to an increase in the EBITDA guidance of around 25% compared to financial year 2019. This means that for the first time in S&T's history and already in 2020, the EBITDA margin target of 10%, formulated in the original Agenda 2023, will be exceeded.

S&T AG's annual targets for 2020 are based on the successfully completed 2019 financial year. The company's preliminary figures indicate an EBITDA of around EUR 105 million, exceeding the originally communicated EBITDA target of EUR 100 million for the year with revenues of around EUR 1,145 billion.

Due to the good order development, the company also confirms the Agenda 2023 targets of EUR 2,000 million revenues and an increased profitability from the original EUR 200 million to EUR 220 million EBITDA. Earnings per share (EPS) are also expected to grow disproportionately to more than EUR 1.75 by 2023, which corresponds to an increase of around 150% compared to 2018 financial year's EUR 0.70.

The profitability driver continues to be the high-margin business segment "IoT Solutions Europe", whereby an improvement is also expected for the IoT business in North America in the segment "IoT Solutions America" in 2020. The "PEC program" successfully launched in 2019 will be continued in the 2020 financial year and will also contribute to increasing profitability and effectiveness in the company. The PEC program has already enabled operating cash flow in the 2019 financial year to be significantly increased compared with 2018.

The Annual Report 2019 of S&T AG will be published on March 26, 2020.