From the Sector

• Low impact of Ukraine war on business performance in 1st quarter
• 12.2% increase in sales to €270.9 million based on growth in all four business units
• Adjusted EBITDA improves by 11.5% to €36.8 million

SGL Carbon generated consolidated sales of €270.9 million in Q1 2022 (Q1 2021: €241.5 million). This corresponds to an increase of €29.4 million or 12.2% compared to the same period of the prior year. All four business units contributed to the pleasing increase in sales. In parallel, adjusted EBITDA improved by 11.5% to €36.8 million in the reporting period.

Sales development
In the first three months of fiscal 2022, the sales increase of €29.4 million was driven by all four operating business units: Graphite Solutions (+€11.3 million), Carbon Fibers (+€6.6 million), Composite Solutions (+€7.2 million) and Process Technology (+€6.0 million).
In particular, sales to customers in the automotive and semiconductor industries and a significant recovery in the industrial applications segment were key factors in the increase in sales. Sales of the Process Technology business unit to customers in the chemical industry also developed pleasingly. The effects of the war in Ukraine, which has been ongoing since the end of February 2022, had only a little impact on SGL Carbon's sales performance in the 1st quarter.

Earnings development
Despite the increasingly difficult market environment in the course of Q1 2022, associated with temporary supply and production bottlenecks at their customers, temporarily interrupted transport routes, and significantly higher energy prices, SGL Carbon was able to keep the adjusted EBITDA margin almost stable year-on-year at 13.6%.  
Adjusted EBITDA increased by 11.5% to €36.8 million in the reporting period. Higher capacity utilization in the business units and product mix effects contributed to the improvement in earnings, together with the cost savings achieved as a result of the transformation. By contrast, higher raw material, energy and logistics costs as of end of February 2022 had a negative impact on earnings. The Carbon Fibers business unit was particularly affected by the energy price increases. One-time expenses of €9.2 million in conjunction with energy transactions burdened the Carbon Fibers business unit in the 1st quarter of 2022.  
To secure our production and delivery capabilities, around 85% of the energy requirements of the entire SGL Carbon for 2022 are price-hedged.
Adjusted EBITDA and EBIT do not include in total positive one-time effects and special items of €8.5 million, among other things from the termination of a heritable building right to a site no longer in use. Taking into account the one-time effects and special items presented as well as depreciation and amortization of €14.1 million, reported EBIT increased by 83.5% to €31.2 million (Q1 2021: €17.0 million). The net profit for the period developed correspondingly and more than tripled from €6.1 million to €21.4 million in a quarter-on-quarter comparison.

Outlook
The sales and earnings figures for the 1st quarter 2022 confirm the stable demand from different market segments. Price increases and volatility in the availability of raw materials, transportation services and energy were largely offset by savings from the transformation program and pricing initiatives at the customers.
For 2022, SGL Carbon continues to expect volatile raw material and energy prices, which were included in their forecast for 2022 at the time of planning. However, there are uncertainties about the extent and duration to which SGL Carbon and the customers will be affected by the impact of the war in Ukraine or temporary supply chain disruptions due to the lockdowns in China. Therefore, SGL Carbon's outlook for fiscal 2022 does not include supply and/or production interruptions at customers or the impact of a possible energy embargo that cannot be estimated at this time.  
SGL Carbon's forecast also implies that factor cost increases can be at least partially passed on to the customers through pricing initiatives. SGL Carbon has also included the revenue and earnings impact from the expiry of a supply contract with a major automobile manufacturer at the end of June 2022 in our forecast.

• Indorama Ventures completes acquisition of Brazil-based Oxiteno, extending growth profile into attractive surfactant markets

Indorama Ventures Public Company Limited (IVL), a global sustainable chemical company, today completed its acquisition of 100% of Brazil-based Oxiteno S.A. Indústria e Comércio, becoming a leading global supplier in high-value surfactant markets.

The acquisition of Oxiteno, formerly a subsidiary of Ultrapar Participações S.A., was announced in August 2021 and is effective from 1 April 2022 after the transaction was approved by Brazil’s Administrative Council for Economic Defense (CADE). Through the acquisition, IVL extends its growth profile into highly attractive markets in Latin America and the U.S., becoming the leading surfactants producer in the Americas, with additional potential to expand in Europe and Asia.

Oxiteno becomes part of IVL’s Integrated Oxides and Derivatives (IOD) business segment, which IVL formed in 2020 with the purchase of assets from U.S.-based Huntsman (Spindletop transaction). IOD is a high-margin growth driver alongside IVL’s traditional Combined PET (CPET) necessities segment and its Fibers segment. Together, IVL’s three segments create a stronger and more resilient integrated platform along the company’s petrochemicals value chain.

The Oxiteno acquisition includes 11 manufacturing plants in Latin America and the U.S., 5 R&D centers, an experienced management team, a strong environmental governance record, and expertise in green chemistry innovation. Through Oxiteno, IOD assumes a leading position in technologies catering to innovation-led, high-value-add (HVA) surfactant solutions in attractive home & personal care, crop solutions, and coating & resources markets. This diversity increases IOD’s earnings stability and resilience. The surfactants market has seen consistent growth over the last decade, driven by trends in population growth, urbanization and increasing hygiene awareness amid the global pandemic.

The shareholders of Autoneum Holding Ltd approved all proposals of the Board of Directors at today’s Annual General Meeting and agreed to the proposed dividend of CHF 1.50 per share. Norbert Indlekofer becomes a new member of the Compensation Committee following the previously announced departure of This E. Schneider.

In accordance with Ordinance 3 on Measures to Combat the Coronavirus (COVID-19), the Board of Directors of Autoneum Holding Ltd decided to hold the 2022 Annual General Meeting without the physical presence of the shareholders. For this reason, the Company asked them in advance to exercise their rights exclusively through the independent voting proxy. He represented 66.9% of a total of 4 672 363 shares.

The shareholders approved the Annual Report, the Annual Financial Statements and the Consolidated Financial Statements for 2021 as well as the proposed appropriation of available earnings. A dividend of CHF 1.50 per registered share will be paid out as of March 29, 2022. This corresponds to a distribution of around CHF 7 million, or around 30% of the consolidated profit attributable to Autoneum shareholders.

Hans-Peter Schwald, Chairman of the Board of Directors, emphasized in his video message that the return to profitability and the distribution of a dividend are to be viewed as a positive sign and a success, especially given the challenging environment. CEO Matthias Holzammer, for his part, indicated how important the corporate strategy is for the ongoing and future success of the Company and how it was implemented last year. In addition, he highlighted that through its own strengths Autoneum had managed to improve its operating result in all four regions and to position itself well for the future.

Chairman Hans-Peter Schwald and the other members of the Board of Directors Rainer Schmückle, Liane Hirner, Norbert Indlekofer, Michael Pieper, Oliver Streuli and Ferdinand Stutz were confirmed in office for another year. Hans-Peter Schwald, Ferdinand Stutz and Oliver Streuli were re-elected to the Compensation Committee. Newly elected to the Compensation Committee was Norbert Indlekofer.

• Order intake of CHF 2 225.7 million at record level
• Sales of CHF 969.2 million despite bottlenecks in the supply chains
• EBIT margin of 4.9% and net profit of 3.3% of sales
• Milestones achieved in strategy implementation
• Dividend of CHF 4.00 per share proposed
• Outlook

The 2021 financial year was characterized by a rapid market recovery. As market and technology leader, Rieter succeeded in this environment in posting a record order intake, significantly increased sales compared with the previous year despite the bottlenecks in the supply chains, and generated an EBIT margin of 4.9%. This success is based on the investments in innovation and competitiveness of Rieter in recent years. Crisis management in the 2020 pandemic year, which aimed at benefiting from the expected market recovery after the pandemic, was also a contributing factor. With the acquisition of three businesses from the Saurer Group, a further milestone in the implementation of the strategy has been achieved. The acquisition strengthens Rieter’s market position by completing the ring and compact-spinning system. With the laying of the foundation stone for the Rieter CAMPUS in September 2021, an important prerequisite for the expansion of the company’s technology leadership has been created.

Order Intake and Sales
At the end of 2021, the company had an order backlog of around CHF 1 840 million (December 31, 2020: around CHF 560 million). Rieter closed the 2021 financial year with sales of CHF 969.2 million, which corresponds to an increase of 69% compared to the previous year (2020: CHF 573.0 million).

EBIT, Net Profit and Free Cash Flow
The profit at the EBIT level in the 2021 financial year was CHF 47.6 million, which represents 4.9% of sales. At the net profit level, a profit of CHF 31.7 million accrued, which corresponds to 3.3% in relation to sales. Free cash flow at CHF 128.1 million is a result of the positive developments in earnings and net working capital. The acquisition of three businesses from the Saurer Group for a purchase price of CHF 321.4 million resulted in net debt of CHF 161.9 million; as of December 31, 2020, net liquidity amounted to CHF 41.3 million. At December 31, 2021, liquid funds amounted to CHF 249.4 million (2020: CHF 283.2 million). The equity ratio as of December 31, 2021, was 27.6% (previous year’s reporting date: 36.4%).

Sales by Region
Sales increased in all regions, with the exception of Africa. The highest growth of CHF 126.0 million compared to CHF 50.8 million in the previous year was achieved in India, followed by North and South America with CHF 149.9 million in 2021 compared to CHF 66.4 million in the previous period, and the Asian countries excluding China, India and Turkey with CHF 318.7 million (2020: CHF 184.8 million). In Turkey, Rieter increased sales to CHF 182.3 million (2020: CHF 122.0 million), in China to CHF 135.3 million (2020: CHF 92.8 million) and in Europe to 43.3 million (2020: CHF 38.4 million). In Africa, sales were below the prior-year level at CHF 13.7 million (2020: CHF 17.8 million).

Business Groups
Despite the well-known challenges in the supply chain, the Business Group Machines & Systems posted an order intake of CHF 1 708.6 million (2020: CHF 363.9 million) and achieved sales of CHF 590.3 million, double the previous year’s figure (2020: CHF 295.8 million). Ring and compact-spinning systems, on whose customer benefits Rieter has worked intensively in recent years, were particularly in demand.
The order intake of the Business Group Components was CHF 296.0 million, 75% above the previous year’s level (2020: CHF 169.1 million). Against the backdrop of successful strategy implementation and good capacity utilization at spinning mills worldwide, sales increased to CHF 231.5 million (2020: CHF 174.3 million). The Business Group After Sales recorded an order intake of CHF 221.1 million, 106% higher than the previous year (2020: CHF 107.2 million). Sales reached a level of CHF 147.4 million (2020: CHF 102.9 million). The positive evolution of the Business Group After Sales was also significantly influenced by successful strategy implementation and good capacity utilization at spinning mills around the world.

Acquisition of three Saurer businesses
Effective from December 1, 2021, Rieter is consolidating the components businesses acquired from Saurer. With the acquisition of Accotex (elastomer components for spinning machines) and Temco (bearing solutions for filament machines), Rieter is strengthening its market position in the components business. The acquisition of the third business from Saurer (automatic winder) completes and thus considerably increases the attractiveness of Rieter’s ring and compact-spinning system. This acquisition marks an important milestone in the implementation of the company’s strategy as an innovative systems supplier. The transaction is expected to be finalized in the first half of 2022.

Rieter CAMPUS
On September 8, 2021, at the Winterthur location, the foundation stone was laid for the Rieter CAMPUS, which includes a customer and technology center as well as an administration building. With the Rieter CAMPUS, the company is creating a state-of-the-art and creative working environment, ensuring access to cutting-edge European technology and enhancing its ability to attract young talent. Thus, the Rieter CAMPUS will make an important contribution to the implementation of the innovation strategy and to the enhancement of the company’s technology leadership position.

Dividend
In view of the profit of CHF 31.7 million at the net profit level in the 2021 financial year, the Board of Directors proposes to the shareholders for 2021 the distribution of a dividend of CHF 4.00 per share. This corresponds to a payout ratio of 57%.

Changes to the Group Executive Committee
With effect from March 1, 2021, the Board of Directors of Rieter Holding AG appointed Roger Albrecht as Head of the Business Group Machines & Systems and a member of the Group Executive Committee.

Board of Directors and Annual General Meeting
At the 130th Annual General Meeting held on April 15, 2021, the shareholders approved all motions proposed by the Board of Directors. The Chairman of the Board Bernhard Jucker and the Directors This E. Schneider, Hans-Peter Schwald, Peter Spuhler, Roger Baillod, Carl Illi and Luc Tack were confirmed for a further one-year term of office. Stefaan Haspeslagh was newly elected to the Board of Directors for a one-year term of office. This E. Schneider, Hans-Peter Schwald and Bernhard Jucker, the members of the Remuneration Committee who were standing for election, were also each re-elected for a one-year term of office.

Changes to the Board of Directors
The two members of the Board of Directors, Luc Tack and Stefaan Haspeslagh, resigned from Rieter’s Board of Directors with effect from August 30, 2021.

Outlook
Rieter anticipates a gradual normalization of the demand for new systems in the coming months. The company expects demand for wear and spare parts to remain at a good level due to high capacity utilization at spinning mills. For the full year 2022, due to the high order backlog and the consolidation of the businesses acquired from Saurer, Rieter anticipates sales of around CHF 1 500 million. Sales in the second half of 2022 are expected to be higher than in the first half of the year. The realization of sales from the order backlog continues to be associated with risks in relation to the well-known bottlenecks in the supply chains, the ongoing pandemic and the geopolitical uncertainties. Despite the price increases already implemented, the rise in global costs poses a risk to the development of profitability.

All four Business Groups contributed to the significant improvement of the Group’s EBIT, which more than doubled by CHF 29.7 million to CHF 57.5 million, corresponding to an EBIT margin of 3.4%. This was achieved despite a slight decline in consolidated revenue to CHF 1.7 billion. Net profit amounted to CHF 30.1 million. In line with Autoneum’s longstanding dividend policy, the Board of Directors proposes a dividend of CHF 1.50 per share for the 2021 financial year.

We saw a number of global challenges again in 2021. The worldwide shortage of semiconductors dampened market development in the automobile industry. Although production volumes were almost the same in 2021, the year was more challenging from an operational perspective than 2020 was; supply chain bottlenecks led to short-term and unplanned production downtime at automotive manufacturers throughout the year. This resulted in frequent interruptions in production at Autoneum as well because of closely connected manufacturing processes. Rising costs for raw materials, energy, and transport presented additional challenges. Despite the challenging environment and weak global production volumes, Autoneum managed to return to profitability in 2021, generating a positive net result. Thanks to further operational improvements and optimization measures in all organizational areas, earnings were improved in all four Business Groups.

• Revenue development influenced by semiconductor shortage
• Operating profit and positive group net result thanks to improvements in all segments
• Net profit and positive free cash flow enable an increase in equity ratio and a further reduction of net debt
• Board of Directors proposes a dividend of CHF 1.50
• Personnel change on the Board of Directors
• Business Groups
• Innovation Leadership for a safe journey towards a climate-friendly future
• 10 years of Autoneum

Outlook
According to market forecasts1), global automotive production will increase by around 9% year-onyear in 2022. The semiconductor shortage is likely to continue for some time into 2023; however, we anticipate that the situation will increasingly stabilize over the course of the financial year 2022 with higher volatility in the first half of the year. Autoneum’s revenue development is expected to be in line with the market. Based on market development, Autoneum is targeting an EBIT margin of 4–5% and free cash flow in the high double-digit million range. In addition to addressing the current semiconductor shortage situation, Autoneum will continue to pursue its consistent implementation of strategic priorities and initiatives. The potential impacts of the current Ukraine crisis on our business cannot be estimated at this point in time.

Further information on the 2021 results as well as the 2021 Annual Report can be found at www.autoneum.com/2022/03/02/2021-annual-results

The Lenzing Group reported a significant year-on-year improvement in revenue and earnings in the first nine months of 2021 thanks to the largely positive market environment. Growing optimism in the textile and apparel industry and the recovery in retail led to a substantial increase in demand and prices on the global fiber market, particularly at the start of the current financial year.

Revenue rose by 32.9 percent to EUR 1.59 bn in the first nine months of 2021. This increase is attributable to a higher sales volume as well as higher viscose prices, which stood at more than RMB 15,000 in May thanks to significantly higher demand for fibers, especially in Asia. The focus on wood-based specialty fibers such as the TENCEL™, LENZING™ ECOVERO™ and VEOCEL™ branded fibers also had a positive impact on the revenue trend; the share of specialty fibers in fiber revenue amounted to 72.4 percent in the reporting period. This more than offset the negative impact of less favorable currency effects.

The earnings performance essentially reflects the positive market trend and was additionally reinforced by efficiency-enhancement measures. Energy, raw material and logistics costs increased significantly during the entire reporting period. EBITDA (earnings before interest, tax, depreciation and amortization) more than doubled to EUR 297.6 mn in the first nine months of 2021 (compared to EUR 138.5 mn in the first nine months of 2020). The EBITDA margin rose from 11.6 percent to 18.7 percent. Net profit for the period amounted to EUR 113.4 mn (compared to a net loss of EUR minus 23.3 mn in the first nine months of 2020) and earnings per share to EUR 3.77 (compared to EUR minus 0.1 in the first three months of 2020).

As part of Suominen Corporation’s Half-Year Financial Report for January 1 – June 30, 2021 the company shared their insights and actions defined in their sustainability agenda.
A new Code of Conduct was launched in the beginning of 2021 and a mandatory training program about the Code will be start in the third quarter of this year.

Suominen is committed to continuously improving their production efficiency and the efficient utilization of natural resources. What active measures towards reducing energy consumption, greenhouse gas emissions, water consumption and waste to landfill are concerned, the commitment is to diminish them by 20% per ton of product by 2025 compared to the base year of 2019.
Offering a comprehensive portfolio of sustainable nonwovens and continuously developing new and innovative solutions with a reduced environmental impact, the target is a 50% increase in sales of sustainable nonwovens by 2025 compared to 2019, and to have at least 10 sustainable product launches per year. During the first half of the year, nine sustainable product launches were made.

OUTLOOK FOR 2021
As announced on August 12, 2021 Suominen expects that its comparable EBITDA (earnings before interest, taxes, depreciation and amortization) in 2021 will decrease from 2020 due to the slowdown in the demand for nonwovens in the second half of 2021 as well as some continuing volatility in the raw material and transportation markets. In 2020, Suominen’s comparable EBITDA was EUR 60.9 million.

• Transformation program and improving order situation show first successes
• Sales up 8.8% to €496.7 million compared with first half of previous year
• Adjusted EBITDA improves by 70.7% to €71.7 million
• Positive business development led to forecast increase on July 13, 2021

While the past fiscal year 2020 was still characterized by a Corona-related slump in orders in many business areas of SGL Carbon, demand picked up again in the first six months of 2021. Accordingly, Group sales increased by 8.8% to €496.7 million in H1 2021 (H1 2020: €456.5 million).

The Carbon Fibers and Composite Solutions Business Units particularly contributed to the €40.2 million increase in sales. Carbon Fibers contributed €166.4 million to Group sales, especially benefiting from increased demand from the automotive market segment. In the Composite Solutions Business Unit, the increase in sales of 52.4% to €60.2 million was also primarily based on the recovering demand from the automotive industry.

With sales of €221.2 million, the Graphite Solutions business area contributed around 44.5% of SGL Group sales. The 3.8% increase in the division's sales was particularly due to the positive development in the important markets of the LED, semiconductor and automotive industries.

Transformation program:
The restructuring and transformation process initiated at SGL Carbon made a significant contribution to the Company's positive sales and earnings performance. In addition to leaner and more efficient structures as well as a reorganization of the business units with responsibility for results, a large number of improvements and cost initiatives in all business units and sites have contributed to the success of the ongoing transformation program.

Forecast increase:
Due to pleasing business development in the first half of the year as well as transformation successes, SGL Carbon raised its forecast for fiscal year 2021 on July 13, 2021. For the financial year 2021, the company now expects consolidated sales of around €1.0 billion (previously: €920 - 970 million). In line with developments in the first half of 2021 and the results from the transformation, adjusted EBITDA for 2021 is expected to be between €130 - 140 million (previously: €100 - 120 million). Accordingly, a slightly positive net profit is now forecasted for fiscal year 2021 (previously: €-20 million to €0).

Solid net profit and further strengthening of the balance sheet thanks to significant revenue and profitability increases

The automobile industry recovered significantly in the first half of 2021 compared to the prior-year period, which had been impacted by the effects of the coronavirus pandemic. Autoneum benefited from the market dynamics and managed to increase its revenue in local currencies by 24.3% in the first semester. EBIT rose to CHF 44.7 million thanks to higher revenues and further progress in the turnaround in North America, corresponding to an EBIT margin of 5.0%. The strong free cash flow of CHF 67.2 million has allowed for a further reduction in net debt.

In the first half of 2021, 29.2% more light vehicles were produced worldwide than in the coronavirus-hit first half of 2020. The market recovery, though significant, was hampered by the global semiconductor shortage, which led to temporary production stoppages and manufacturers producing lower vehicle volumes. Autoneum increased revenue in local currencies by 24.3% in the first six months. In Swiss francs, revenue climbed by 21.9% to CHF 890.3 million. Business Group SAMEA (South America, Middle East and Africa) grew clearly above market, while the shortage of semiconductors in North America in particular impacted the production of models supplied by Autoneum and the revenue development of Business Group North America.

Autoneum managed to improve its operating result (EBIT) considerably by CHF 76.5 million in the first six months compared to the prior-year period. In addition to higher revenues, this was mainly due to the immediate and sustainable adjustment of the cost structure in all Business Groups to the new market reality in 2020 as well as the improved earnings achieved in the turnaround program in North America. Higher material costs, however, had a negative impact on the operating result. EBIT in the amount of CHF 44.7 million (prior-year period: CHF –31.8 million) corresponds to an EBIT margin of 5.0% (prior-year period: –4.4%).

The development of global light vehicle production in the second half of 2021 remains uncertain due to the semiconductor shortage. Although there is a high demand from end customers in all regions, it can be assumed that the shortage of chips will continue to impact automobile production in the second half of the year, but not as severely as in the second quarter of the first half-year.

Revenue in the second half-year 2021 is expected to be higher than in the first semester. Based on the unfavorable allocation of semiconductors to vehicle models supplied by Autoneum in the first half of 2021, revenue development is likely to be slightly below market for the full year 2021. With an easing of the semiconductor shortage, this will normalize.

• Forecast raised for 2021

Based on the encouraging business performance in the first half of 2021 and the transformation successes, SGL Carbon expects strong Group results for the first six months of 2021 and raises its guidance for fiscal year 2021.

The company expects to exceed the upper end of the stated range of its Group EBITDA pre1 guidance (earnings before interest, taxes and depreciation adjusted by non-recurring items and one-time effects) for fiscal year 2021 of EUR 100 to 120 million and raises the EBITDA pre guidance for 2021 to EUR 130 –140 million.

SGL Carbon's sales forecast is also increased slightly to approximately EUR 1.0 billion for the current fiscal year, up from EUR 920 – 970 million originally. The company expects free cash flow for the full year to be correspondingly above the forecast of EUR 20 million given at the beginning of the year. A slightly positive consolidated net result is also predicted for 2021.

Previously, the company had assumed a consolidated net result of between EUR -20 million and EUR 0. According to preliminary figures, SGL Carbon expects Group sales for H1 2021 of around EUR 496 million (H1 2020: EUR 456.5 million). This corresponds to an increase of around 9% compared to the same period of the previous year. Based on the sales increase and the cost effects achieved from the transformation, EBITDA pre (EBITDA before non-recurring items and one-time effects) increased to around EUR 72 million in the first six months of 2021 (H1 2020: EUR 42.0 million).

The updated forecast for fiscal 2021 has been prepared on the basis of the prevailing market environment and assumes no deterioration in conditions due to the corona pandemic. In particular, it is based on the assumption that purchasing prices and logistics chains remain stable and production lines remain in operation. The communicated medium-term targets up to 2025 remain unaffected by the forecast adjustment. SGL Carbon will release its 2021 half-year figures as planned on August 12, 2021.