DGAP-Adhoc

Progress-Werk Oberkirch AG: PWO reports preliminary figures for the first nine-months of 2020 and publishes a new fiscal year forecast

DGAP-Ad-hoc: Progress-Werk Oberkirch AG / Key word(s): Quarterly / Interim Statement Progress-Werk Oberkirch AG: PWO reports preliminary figures for the first nine-months of 2020 and publishes a new fiscal year forecast 27-Oct-2020 / 10:30 CET/CEST Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement.

- Visible business upturn in the third quarter
- EBIT before currency effects and provisions for personnel adjustments clearly positive in the third quarter
- Full-year forecast continues to be affected by considerable uncertainty

Oberkirch, October 27, 2020 - Based on preliminary figures, PWO's business performance in the first nine months of 2020 was as anticipated significantly lower than in the same period in the prior year. The impact of the corona-pandemic contributed mainly to this development. As already communicated, provisions for personnel adjustments at the Oberkirch site in the amount of EUR 10.0 million were also recognized in the third quarter.

PWO's business picked up significantly in the third quarter. Revenue was down slightly more than 8 percent year-on-year, compared to a decline of more than 25 percent for the nine-month period. Revenue in the third quarter amounted to EUR 99.2 million (p/y: EUR 108.5 million). EBIT before currency effects decreased to EUR -4.0 million (p/y: EUR 3.5 million) as a result of the aforementioned provisions. Revenue in the nine-month period reached EUR 257.4 million (p/y: EUR 345.3 million), and EBIT before currency effects amounted to EUR -2.9 million (p/y: EUR 14.3 million).

All international locations achieved a satisfactory positive EBIT before currency effects in the third quarter. Particularly worth noting was the solid earnings momentum recorded by the China location. At the Oberkirch location, EBIT before currency effects and provisions for personnel adjustments was at break-even.

Net debt also developed favorably and fell to EUR 111.2 million as of the September 30, 2020 reporting date, compared to EUR 132.5 million at the end of the previous fiscal year. The equity ratio as of September 30, 2020 declined to 28.2 percent compared to 30.1 percent as of December 31, 2019. Free cash flow was positive in the third quarter, as well as in the first half and second quarter of 2020, and at EUR 22.0 million for the nine-month period (p/y: EUR 14.2 million), significantly exceeded the level in the prior year.