EQS-News: Vossloh Aktiengesellschaft: Vossloh with very successful third quarter

Vossloh with very successful third quarter. After nine months sales, orders received and order backlog significantly above previous year. Profitability at a strong 7.3 percent.

• Sales revenues increased by 8.3 percent year on year to 756.2 million
• Orders received at 962.0 million (+44.2 percent vs. previous year), order backlog at 814.6 million (+46.8 percent vs. previous year)
• EBIT margin of 7.3 percent (Q3: 9.3 percent) underpins latest outlook for 2022
• Net income increases to 38.8 million (+14.7 percent vs. previous year)

Werdohl, October 27, 2022. Vossloh continues its positive business development impressively in the third quarter of 2022. The order situation continues to improve significantly compared to the previous year: In the first nine months of 2022, orders received amount to 962.0 million, exceeding the previous year's figure by 294.7 million or 44.2 percent. The increase in the order backlog is even more pronounced, reaching 814.6 million at the end of the reporting period on September 30, 2022, up by 46.8 percent on the prior-year level of 554.9 million. The book-to-bill ratio, which reflects the ratio of orders received to sales revenues, reaches the outstanding level of 1.27 during the reporting period (previous year: 0.96). This remarkable development is in particular due to two orders from China and another from Egypt for rail fastening systems for the construction of new high-speed lines with a total volume of about 130 million. In addition, demand is increasing comprehensively, especially in Europe. Particularly noteworthy in terms of its strategic relevance is the significant expansion of the existing framework agreement on preventive rail maintenance with DB Netz AG, the rail infrastructure manager of Deutsche Bahn AG. In 2023, Vossloh will maintain at least 12,000 kilometers using smart HSG (high-speed grinding) technology.

Following a high sales contribution of 279.8 million in the third quarter (prior-year quarter: 235.8 million), Group sales reach 756.2 million in the first nine months of the current financial year, thus exceeding the previous year's level by 8.3 percent (698.4 million). All business units contribute to this positive development, with each of them recording an increase in sales compared to the same period of the previous year. Growth is particularly pronounced in the Lifecycle Solutions (+19.7 percent) and Customized Modules (+13.6 percent) divisions, while sales at Core Components increased moderately by +2.2 percent.

With a strong EBIT contribution of 26.1 million in the third quarter of 2022 (prior-year quarter: 19.8 million), EBIT for the nine-month period of 2022 reaches 55.0 million. Although this means that EBIT is still below the previous year's figure of 62.2 million, the shortfall has almost been halved compared with the half-year reporting. Given the massive rise in procurement prices, especially for materials and energy, and typical fluctuations in project business with rail fastening systems in China, this is a remarkable result. Accordingly, Vossloh achieves a significantly higher EBIT margin of 9.3 percent in Q3 2022 than in the previous year (8.4 percent). Over the first nine months, the Vossloh Group's EBIT margin is at 7.3 percent (previous year: 8.9 percent).

With regard to its net assets and financial position, the Vossloh Group is also in a good shape: equity as of September 30, 2022, amounts to 625.0 million. The increase of 37.1 million compared with year-end 2021 is primarily attributable to the positive net income of 38.8 million (previous year: 33.8 million). At 43.6 percent, the equity ratio also remains at a high level. The Vossloh Group's net financial debt including lease liabilities increased by 60.9 million compared with the figure at the end of the first nine months of 2021, reaching 292.6 million. This was in particular due to a noticeable increase in working capital. In view of the uncertainties on the procurement markets, a substantial portion of the buildup is attributable to higher stockpiling and increased purchase prices. As of year-end 2022, Vossloh expects a significantly lower level of debt.

"Against the backdrop of persistently difficult conditions due to disrupted supply chains, increased prices on the procurement side, and massive global political uncertainty, the results achieved by Vossloh are extremely remarkable. At the same time, they prove once again that we are excellently positioned in the rail infrastructure market, a key market of the future," emphasizes Oliver Schuster, CEO of Vossloh AG, adding: "We are enabling green mobility and thus bridging the gap between a steadily growing global demand for transport capacity and the maxim of sustainable action. Around the globe, infrastructure programs worth billions are being launched to shift passenger and freight traffic to rail. As a leading provider of rail infrastructure, we benefit from this - today and in the future."

Order situation in the Core Components division at a new record level
At 439.4 million, orders received in the Core Components division in the first nine months of 2022 are significantly higher than the figure for the prior-year period of 276.7 million. This huge increase is mainly due to the significantly higher order intake at the Fastening Systems business unit. The volume of new orders increases from 181.8 million in the prior-year period to 325.1 million. In Core Components' second business unit Vossloh Tie Technologies orders received climb from 98.7 million a year ago to 129.2 million. The order backlog of the Core Components division as of September 30, 2022 amounts to 311.8 million and is thus significantly higher than

in the previous year (September 30, 2021: 177.5 million). Sales of the division reach 346.7 million in the reporting period, exceeding the previous year's level of 339.3 million. Sales at the Fastening Systems business unit increase noticeably year on year to 244.1 million (previous year: 232.7 million). Sales in the Tie Technologies business unit reach 113.1 million (previous year: 111.4 million). In the first nine months of the current year, the Core Components division's EBIT of 31.1 million fell short of the previous year's level of 45.4 million. The main reasons for this were a significant year-on-year increase in procurement costs, particularly for materials and energy, and typical fluctuations in project business. As a result, the EBIT margin fell from 13.4 percent in the previous year to 9.0 percent.

Customized Modules increases orders received, sales and EBIT

Orders received in the Customized Modules division increase by 30.7 percent and reach 403.9 million (previous year: 309.0 million). At 455.4 million, the order backlog as of September 30, 2022 also significantly exceeds the previous year's level (354.6 million). Sales in the Customized Modules division increase by 13.6 percent to 332.4 million during the reporting period (previous year: 292.6 million). In France, Scandinavia and Portugal in particular, the division achieves higher sales contributions compared with the previous year. EBIT rises to 26.2 million (previous year: 23.7 million) despite the impact of higher material and energy prices, while the EBIT margin remains virtually stable at 7.9 percent (previous year: 8.1 percent). The increase in earnings and profitability is partly due to higher earnings contributions from the sites in France, Sweden and Australia.

Lifecycle Solutions increases orders received, sales and EBIT margin
At 137.5 million, orders received in the Lifecycle Solutions division in the first nine months of 2022 significantly exceed the previous year's figure of 96.5 million. The increase is mainly attributable to the major order from DB Netz AG for preventive rail maintenance using smart HSG technology. The order backlog of 55.9 million at September 30, 2022 is also significantly higher than the 26.7 million at the prior-year reporting date. Sales of the Lifecycle Solutions division also increase significantly during the 2022 reporting period to 94.1 million (previous year: 78.6 million). The sales growth is mainly attributable to the Dutch company Vossloh ETS and the milling business. The division's EBIT of 5.2 million also exceeds the previous years 4.1 million. The EBIT margin amounts to 5.6 percent in the first nine months of 2022 after 5.2 percent in the prior-year period.

Employees

As of September 30, 2022, the Vossloh Group employed 3,792 people worldwide. The number of employees has thus risen by 211 or 5.9 percent in the past twelve months. The increase is largely attributable to the first-time full consolidation of a Portuguese company in the Customized Modules division.

Outlook for the year 2022

On October 17, 2022, Vossloh AG's Executive Board specified the sales and earnings forecast for the year 2022. Accordingly, the Executive Board expects sales between 1.0 billion and 1.05 billion. The most recently communicated expectation was in a corridor between 0.95 billion and 1.05 billion. With a view to profitability, Vossloh is raising the lower end of the guidance range by a full percentage point and is now forecasting an EBIT margin for the full year between 7.0 and 7.5 percent. Most recently, an EBIT margin between 6.0 and 8.0 percent was forecast. The reason for the EBIT forecast being above the mean values of the previous forecast corridors is a lower overall burden from rising material and energy costs and lower increases of other inflation-related costs.

Contact details for the media:
Andreas Friedemann (Kirchhoff Consult AG)
Phone: +49 (0) 2392 52-608
E-mail: Presse@vossloh.com 

Contact details for investors:
Dr. Daniel Gavranovic
Phone: +49 (0) 2392 52-609
E-Mail: Investor.relations@vossloh.com

Vossloh is a global technology group that has stood for quality, safety, customer orientation, reliability and innovative strength for over 135 years. With its comprehensive range of rail-related products and services, Vossloh is one of the world market leaders in this sector. Vossloh offers a uniquely broad range of products and services under one roof: Rail fastening systems, concrete sleepers, switch systems and crossings as well as innovative and increasingly digital-based services for the entire life cycle of rails and switches. Vossloh uses its systemic understanding of the track to address the central customer need of "availability of the rail track".

Vossloh products and services are used in more than 100 countries. With some 80 group companies in around 30 countries and over 35 production locations, Vossloh is active on the ground worldwide. Vossloh is committed to sustainable corporate governance and climate protection and with its products and services makes an important contribution to the sustainable mobility of people and goods.

The Group's activities are divided into three divisions: Core Components, Customized Modules and Lifecycle Solutions. In fiscal 2021, Vossloh generated sales of 942.8 million with around 3,600 employees.

Vossloh AG Vosslohstrasse 4 58791 Werdohl, Germany Telephone +49 (0) 239 252-0 Fax +49 (0) 239 252-538 www.vossloh.com
Company headquarters: Werdohl, Germany Commercial register: Local court of Iserlohn HRB 5292
Chairman of the Supervisory Board: Prof. Dr. Rüdiger Grube
Executive Board: Oliver Schuster (CEO) Dr. Thomas Triska Jan Furnivall