S&T AG: Strong 3rd quarter - forecast raised

Thursday, 5th November 2020

Austria

Revenue growth in Q3 of 6.5% to EUR 297.7 million (previous year: EUR 279.4 million)
EBITDA increase in Q3 of around 16% to EUR 31.7 million (previous year: EUR 27.4 million)
Operating cash flow improved in Q3 by 40% to EUR 22.8 million (previous year: EUR 16.2 million)
2020 forecast increased from EUR 115 million EBITDA to at least EUR 122 million

The technology group S&T AG (ISIN: AT0000A0E9W5, WKN: A0X9EJ, stock exchange symbol: SANT) continues to grow in Q3 - despite the global corona crisis and the accompanying economic crisis due to COVID-19. S&T is diversified with over 3,000 customers in a wide range of markets in more than 30 countries. Growth in the medical technology sector, for example, has more than compensated for the downturn in the aviation industry. Overall, S&T has therefore not been affected by the COVID-19 pandemic so far. Revenues in Q3 increased by 6.5% compared to the same quarter of the previous year and by as much as 11% to EUR 297.7 million compared to Q2 of 2020. EBITDA grew disproportionately by 16% compared to Q3 of 2019 and by 18% compared to the previous quarter of 2020 to more than EUR 31.7 million. The measures implemented in the PEC programme led to a further improvement in operating cash flow, which increased by 40% to EUR 22.8 million in Q3 of 2020 (previous year: 16.2 million). In the first nine months of the year, cash flow from operating activities was thus around EUR 45 million higher than in the previous year (EUR 4.5 million) at around EUR 50 million. As in previous quarters, the “IoT Solutions Europe” sector generated the highest growth in revenue with 14.8% in Q3. The “IoT Solutions America” sector achieved an EBITDA margin of over 14.4% in Q3 2020 and therefore, restructuring has been successfully completed.

Due to the good results, S&T plans to use half (previously 25%) of the net profit for 2020 for dividends and share buybacks. With EUR 254 million in cash and a strong operating cash flow of EUR 50 million after the first nine months of the current financial year, S&T is well equipped to meet its growth targets and acquisitions within the framework of Agenda 2023, as well as further share buybacks, from its own resources. The outlook is positive despite renewed global lockdowns. Despite the ongoing pandemic, the order book is full and at EUR 891 million is EUR 50 million better off than at the beginning of the year. In addition, following the approval of the antitrust authorities in September 2020, the Iskratel Group will bring S&T added strength from October, 1st 2020.

Hannes Niederhauser, CEO: "Based on these strong figures, we are raising our previous forecast for the 2020 financial year from EUR 115 million EBITDA and EUR 1.15 billion in revenue to at least EUR 122 million EBITDA and EUR 1.2 billion in revenue. Providing the effects of the new lockdowns are not too critical, these figures could be exceeded even further. We also reaffirm our medium-term target for 2023 of EUR 2 billion in revenue with an EBITDA of EUR 220 million.”