Ringmetall SE / DE000A3E5E55

Group revenues down 15.6 percent to EUR 143.7 million in difficult environment EBITDA of EUR 13.5 million still significantly impacted by one-off deconsolidation effects of EUR -4.6 million from sale of HSM in second quarter Smaller acquisition in the inliner product area made at the end of October; forecast confirmed Munich, 6 November 2023 - Ringmetall SE (ISIN: DE000A3E5E55), a leading international specialist supplier in the packaging industry, was able to hold its ground well in the third quarter in an economic environment that remains recessionary. Although it is now becoming more noticeable that the economic downturn is gaining in breadth, the company nevertheless succeeded in containing the decline in sales in the traditionally weaker third quarter compared to the preceding quarters. "Due to the early cyclical nature of our clamping ring business, we have been preparing for a broader economic downturn since the beginning of the year. Therefore, overall we are coping well with the new environment. Adjusted for effects from the raw material price development and the closure of the Industrial Handling segment, we can be quite satisfied with our business development in the third quarter, considering the circumstances," emphasizes Christoph Petri, Spokesman of the Management Board of Ringmetall SE. "The stabilization of revenue in the third quarter at least gives us some hope that a large part of the downturn may already be behind us. At the same time, there are still no signs of improvement. So the difficult economic environment is likely to keep us on our toes for a while yet." Group revenues in the first nine months of 2023 were 15.6 percent below the previous year at EUR 143.7 million (9M 2022: EUR 170.3 million). The increases from company acquisitions could not fully compensate for the effect of declining raw material prices. Adjusted for the effects of the sale of HSM, the decline in revenues amounts to 13.7 percent. Organic business performance was clearly impacted by the cyclical decline in demand in an increasing number of customer industries, particularly the chemical industry. While the situation in the Rings product area is increasingly stabilizing, the signs of the broader economic downturn are now also perceptible in the order intake of the Inliner product area. At the same time, cost-saving measures were implemented in many areas of the Group and synergy effects achieved via integration steps at acquired subsidiaries. Earnings before interest, taxes, depreciation and amortization (EBITDA) of EUR 13.5 million were 44.1 percent below the previous year (9M 2022: EUR 24.2 million). Adjusted for the one-off deconsolidation effects of EUR -4.6 million from the sale of HSM and the company's earnings contribution in the third quarter of the previous year (EUR 0.5 million), the decline amounts to 23.7 percent. At 9.5 percent, the EBITDA margin in relation to total operating performance was significantly below the well above-average levels of the previous year (9M 2022: 14.0 percent). Adjusted for the effects of the disposal of HSM, the EBITDA margin was 12.7 percent. The key figures for business development in the reporting period are as follows:

IFRS, in TEUR	9M 2023	9M 2022	? [abs.]	? [%]
Revenues	143.694	170.262	-26.568	-15,6%
Total output (GL)	142.857	172.909	-30.053	-17,4%
Gross profit	70.175	73.661	-3.486	-4,7%
Gross profit margin (on GL)	49,1%	42,6%
EBITDA	13.532	24.203	-10.671	-44,1%
EBITDA margin (on GL)	9,5%	14,0%
EBIT	7.566	18.717	-11.151	-59,6%
EBIT margin (on GL)	5,3%	10,8%

In the Industrial Packaging segment, revenues were down 14.5 percent at EUR 135.4 million (9M 2022: EUR 158.3 million). The weakening of demand in the customer industries due to the economic situation, which could already be observed in the Rings product area in the first half of the year, as well as the changes in raw material prices, could also be observed in the third quarter. At the same time, however, revenues stabilized to a certain extent compared with the second quarter, which is a positive development. In the inliner product area, on the other hand - following a comparatively good performance in the first half of the year - the effects of the economic slowdown on order intake were felt for the first time in the third quarter. However, as a result of the acquisitions of Protective Lining and Liner Factory, revenues in this product area increased significantly overall. At EUR 20.7 million, segment EBITDA was down 18.4 percent (9M 2022: EUR 25.4 million), only slightly more than segment sales. Consequently, the EBITDA margin was almost unchanged year-on-year at 15.4 percent (9M 2022: 15.8 percent). In the Industrial Handling segment, revenues were unchanged at EUR 8.3 million (H1 2022: EUR 11.9 million) as a result of the sale of the Group subsidiary HSM and the associated closure of the segment as of 30 June 2023. Segment EBITDA was also unchanged compared to 30 June 2023 at EUR 0.5 million (9M 2022: EUR 1.2 million). In detail, segment performance in the reporting period was as follows:

IFRS, in TEUR	9M 2023	9M 2022	? [abs.]	? [%]
Industrial Packaging
Revenues	135.424	158.314	-22.890	-14,5%
Total output (GL)	134.422	160.199	-25.777	-16,1%
EBITDA	20.700	25.381	-4.681	-18,4%
EBITDA margin (on GL)	15,4%	15,8%
Industrial Handling
Revenues	8.270	11.948	-3.678	-30,8%
Total output (GL)	8.435	12.711	-4.276	-33,6%
EBITDA	548	1.155	-607	-52,5%
EBITDA margin (on GL)	6,5%	9,1%

As the company's performance in the first nine months of 2023 continues to be in line with expectations, the Management Board confirms its outlook for the full year. The company thus continues to expect Group revenues in the range of EUR 175 to 195 million with EBITDA in the range of EUR 13 to 18 million. The outlook is based on unchanged raw material prices and exchange rates compared to 30 September 2023. It does not include effects from acquisitions pursued in the further course of the year, including transaction costs. At the beginning of the fourth quarter, the Management Board took advantage of the currently attractive market environment to make another smaller acquisition. Effective 31 October 2023, the business operations of IDF GmbH & Co. KG, based in Ennepetal, Germany, were acquired as part of an asset deal. The company is a leading supplier of containment solutions, i.e. continuous film systems for filling lines. With the acquisition, Ringmetall Group is also expanding its cleanroom capabilities with certifications for delivery to the chemical and pharmaceutical industries. With revenues in the low single-digit million-euro range, the company generates an EBITDA margin that is above average in a Group comparison. The acquisition will be financed from the company's free cash flow. Against the background of an unchanged good financial starting position, the Ringmetall Group continues to see itself well positioned to take advantage of attractive acquisition opportunities on the market at any time. Details on the business development in the first nine months of 2023 will be discussed by the Management Board today at 11:00 a.m. CET during a conference call for analysts, institutional investors and members of the press. Registration for this can be made by e-mail via Ms. Anja Brabec (brabec@ringmetall.de). Further information on the Ringmetall Group and its subsidiaries can be found at www.ringmetall.de. Contact:
Ingo Middelmenne
Investor Relations
Ringmetall SE
Phone: +49 (0 )89 45 220 98 12
Mobile: +49 (0 )174 90 911 90
Email: middelmenne@ringmetall.de About Ringmetall Group
Ringmetall is a leading international specialty supplier in the packaging industry. The Industrial Packaging division offers high-security closure systems and inner sleeves for industrial drums, primarily for the chemical, pharmaceutical and food processing industries. In addition to the Group headquarters in Munich, Ringmetall is represented by worldwide production and sales subsidiaries in Germany, France, Great Britain, Italy, the Netherlands, Spain, Turkey, as well as China and the USA. Ringmetall generates annual revenues of around EUR 185 million worldwide.