DGAP-Adhoc

LEONI generates EBIT before exceptional items as well as before VALUE 21 costs and FCF significantly above market expectations in 2nd quarter of 2021 and raises outlook for sales & earnings for 2021

DGAP-Ad-hoc: Leoni AG / Key word(s): Preliminary Results LEONI generates EBIT before exceptional items as well as before VALUE 21 costs and FCF significantly above market expectations in 2nd quarter of 2021 and raises outlook for sales & earnings for 2021 29-Jul-2021 / 21:21 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.

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LEONI generates an EBIT before exceptional items as well as before VALUE 21 costs and a free cash flow significantly above market expectations in the second quarter of 2021 and raises outlook for sales and earnings for 2021

Nuremberg, 29 July 2021 - Based on preliminary figures for the second quarter of 2021, sales of Leoni AG, Nuremberg (ISIN: DE0005408884 / WKN: 540888), amounted to EUR 1.30 billion (Q2 2020: EUR 673 million), EBIT before exceptional items as well as before VALUE 21 costs was EUR 48 million (Q2 2020: EUR -96 million) and reported EBIT was EUR 27 million (Q2 2020: EUR -129 million). The free cash flow amounted to EUR -10 million (Q2 2020: EUR -244 million). The earnings figures and free cash flow for the second quarter of 2021 are significantly above current market expectations*. Against this background, the Board of Directors today decided to raise its outlook for sales and earnings for the full year 2021. It now expects a significant year-on-year increase (2020: EUR 4.1 billion) in Group sales to at least EUR 5 billion and a significant year-on-year increase (2020: EUR -59 million) in EBIT before exceptional items as well as before VALUE 21 costs to at least EUR 100 million for the full year 2021.

The positive earnings development in the second quarter of 2021 is based on the continuation of the recovery in demand in the automotive and industrial sectors, volume and mix effects as well as positive effects from the VALUE 21 programme and the restructuring concept. The positive free cash flow development mainly results from higher earnings and increased factoring volumes.

Leoni expects to face a variety of challenges during the remainder of the year. These include, among others, the ongoing Covid 19 pandemic and the continuing bottlenecks in global supply chains, which are impacting the availability of critical components and materials and could lead to production disruptions of automotive manufacturers and at Leoni in the coming months.