EQS-Adhoc

Leoni AG prelim figures Q3: EBIT adjusted significantly impacted by volatile customer call-offs and provisions to cover contingent losses, primarily by further expected cost inflation; outlook FY 2022

EQS-Ad-hoc: Leoni AG / Key word(s): Preliminary Results/Forecast Leoni AG prelim figures Q3: EBIT adjusted significantly impacted by volatile customer call-offs and provisions to cover contingent losses, primarily by further expected cost inflation; outlook FY 2022 02-Nov-2022 / 19:12 CET/CEST Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by EQS News - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement.

---

Leoni AG publishes preliminary figures for Q3: EBIT before exceptional items significantly impacted by volatile customer call-offs and provisions to cover contingent losses, triggered primarily by further expected cost inflation; Specification of the outlook for FY 2022

Nuremberg, 2 November 2022 – According to preliminary figures for the third quarter of 2022, Leoni AG, Nuremberg (ISIN: DE0005408884 / WKN: 540888) expects Group sales from continuing operations⁽¹⁾ of around EUR 955 million  (Q3 2021: EUR 893 million), EBIT before exceptional items⁽²⁾ from continuing operations of around EUR -56 million  (Q3 2021: EUR -3 million), reported EBIT from continuing operations of around EUR -71 million (Q3 2021: EUR -20 million) and free cash flow (FCF) from continuing operations of around EUR -63 million  (Q3 2021: EUR -85 million).⁽³⁾

Group sales in the third quarter of 2022 were around 7% higher than in the previous year. This was due to significant revenue growth in the Wiring Systems Division (WSD) due to organic growth, positive effects from copper price increases, FX and compensation payments made by customers for additional volatility costs and inflation-driven cost increases. This was offset by a significant decline in sales from continuing operations in the Wire & Cable Solutions Division due to consolidation effects.

In the third quarter, the highly volatile product call-offs resulting from ongoing supply chain disruptions on the customer side as well as higher raw material and logistics costs again had a significant impact on earnings. This negative impact on earnings was partially offset in the third quarter by agreements reached with customers over contributions to the cost increases incurred in previous quarters.  A one-off earnings effect of around EUR  -7 million also resulted from the change in FX positions as part of the carve-out of discontinued operations.