DGAP-News

Delticom AG: Turnaround succeeded! Positive net income of € 7 million despite decrease in revenues // Expansion of the Management Board // Continuation of the US business

DGAP-News: Delticom AG / Key word(s): Annual Report/Annual Results Delticom AG: Turnaround succeeded! Positive net income of € 7 million despite decrease in revenues // Expansion of the Management Board // Continuation of the US business 26.03.2021 / 09:41 The issuer is solely responsible for the content of this announcement. Delticom AG: Turnaround succeeded! Positive net income of € 7 million despite decrease in revenues // Expansion of the Management Board // Continuation of the US business

Hanover, March 26, 2021 - Delticom AG (German Securities Code (WKN) 514680, ISIN DE 00005146807, stock market symbol DEX) today published its Annual Report 2020.

• Measures taken across all business units to reduce costs, optimise processes and increase efficiency had a sustained impact
• Significant improvement in EBITDA
• Positive net income in the amount of € 7 million in 2020 - after a loss of € 41 million in 2019
• Clear focus on profitability also in 2021

Market environment. The Corona pandemic and the associated restriction of mobility did not remain without consequences for the demand of replacement tyres last year. According to the German Rubber Industry Association (WdK) and the European Tyre and Rubber Manufacturers' Association (ETRMA), 10.4 % fewer replacement tyres were sold to consumers in Germany last year. Looking at the European replacement tyre market, the ETRMA figures also show a downward trend in sales. In the largest sub-segment by volume, 12.1 % less consumer tyres (passenger, SUV and light truck tyres) were sold over the year as a whole. In absolute terms, this corresponds to a decrease of more than 26 million units.

Revenues. Over the course of 2020, Delticom group generated revenues of € 541.3 million, a decrease of 13.5 % from prior-year's € 625.8 million. The discontinuation of unprofitable business areas led to a decrease in revenues of around € 30 million compared to the previous year. Revenues in the core business in the past financial year are 9 % behind the previous year due to cost-cuttings in marketing and price adjustments. The pandemic-related restrictions at the relevant times of the season in the European core markets in both the summer and winter business and the overall reduced mobility led to a significant decline in demand for replacement tyres in Europe last year. Our business performance is not completely independent of the underlying market development. Notwithstanding this, we assume that those tyre buyers who were unable to postpone the purchase of replacement tyres last year increasingly took advantage of online tyre purchasing. Our focus on profitability last year was accompanied by the objective of generating sufficiently profitable revenues. With regard to the weaker business development in December, the lower end of the forecasted revenues range (€ 550 million) was undercut by 1.6 %. Due to the renewed lockdown measures in Europe and the tightening of the lockdown in Germany at the seasonal peak, which was delayed due to the weather, revenues at the end of the year were somewhat weaker than we had expected.