Manz AG makes non-cash impairment in solar business and publishes 2022 forecast

03/08/2022 13:55:00 CET

Publication of inside information pursuant to Article 17 (1) of Regulation (EU) 596/2014 on market abuse (Market Abuse Regulation)

Based on the ongoing discussions with the Chinese customer Chongqing Shenhua Thin Film Solar Technology Co., Ltd. regarding the completion of the large-scale solar project CIGSfab as well as the continuation of the business relationship, the Managing Board of Manz AG, Reutlingen, (ISIN: DE000A0JQ5U3), has again discussed and analyzed the situation and possible effects on the consolidated financial statements 2021 and the planning 2022. As a continuation of the business relationship with the customer remains uncertain, the Managing Board has decided in the course of preparing the consolidated financial statements, to make impairments of EUR 21.6 million on goodwill and a brand name in the financial statements for the 2021 financial year. The resulting non-cash one-time effect is attributable to acquisitions made prior to the 2012 financial year. This has no negative impact on Manz AG's liquidity. However, the company will not achieve its earnings forecast for the 2021 financial year due to this one-time effect.

Since an agreement with the contractual partner on the completion of the CIGSfab project is also not yet apparent before the finalization of the 2021 consolidated financial statements, with corresponding effects on the company's revenue development in the 2021 financial year, the company will also miss its revenue target.

As a result, on a preliminary basis, revenues for financial year 2021 will amount to EUR 227.6 million (2020: EUR 236.8 million), earnings before interest, taxes, depreciation and amortization (EBITDA) to EUR 18.9 million (2020: EUR 19.4 million) and earnings before interest and taxes (EBIT) to EUR
-15.5 million (2020: EUR 7.2 million). Measured against revenues, this results in an EBITDA margin of 8.3% and an EBIT margin of -6.8% for the financial year 2021. Originally, the Managing Board had expected a low to moderate increase in revenues for the financial year 2021 compared to 2020, an EBITDA margin in the upper positive single-digit percentage range and an EBIT margin in the low to mid positive single-digit percentage range.

For financial year 2022, the Managing Board expects a significant increase in revenues in the mid double-digit percentage range, an EBIT margin in the low to mid positive single-digit percentage range, and an EBITDA margin in the mid to upper positive single-digit percentage range. An agreement with the contractual partner on the completion of the CIGSfab project is not yet included in this forecast and could have a positive impact on Manz AG's revenue and earnings growth.

Manz AG will publish the preliminary key financial figures at segment level on March 10. Manz AG will publish the complete financial report for the 2021 financial year on March 31, 2022, as scheduled.


Additional information:

Securities identification number: A0JQ5U

Stock exchange abbreviation: M5Z
Market segment: Regulated Market (Prime Standard) of the Frankfurt Stock Exchange

Manz AG
Steigäckerstraße 5
72768 Reutlingen


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