From the Sector

• Continued focus on sizeable investments in innovation and sustainability.
• Underway in India, the acquisition of the Engineering Plastics business of Ester Industries Ltd. with the objective of keeping up the Group’s global growth trend

With total sales of EUR 1.508 million generated by over 30 production and sales units in Europe, Asia and America, RadiciGroup closed its 2021 financial year with positive results, despite the difficulties due to the lingering effects of the pandemic and the steep increase in the cost of raw materials and energy, especially during the latter part of the year.

The Group – led by brothers Angelo, Maurizio and Paolo Radici – continued to pursue its strategy of focusing on the core businesses considered to be strategic and synergistic, such as nylon chemicals, engineering polymers and advanced textile solutions, while, at the same time,  introducing new products, such as a line of personal protective equipment for medical and industrial use.

EBITDA reached EUR 268 million, and net income for the year was EUR 150 million.

Despite this situation, RadiciGroup considers it essential to continue making investments.

“In 2021, the Group invested EUR 53 million financed from cash flow,” Alessandro Manzoni, CFO of RadiciGroup, emphasized. “There was no impact on net financial position, which registered an improvement over 2020, as did all our balance sheet ratios."

Furthermore, in spite of the complexity of the period, in 2022 the Group shareholders have kept on with their significant investment plan aimed at strengthening RadiciGroup’s presence in global markets and improving its competitiveness.

Indeed, the Group has moved forward, according to plan, with the acquisition of the Engineering Plastics business of Ester Industries Ltd., an India-based company engaged for decades in the production of engineering polymers and listed on the Bombay Stock Exchange. RadiciGroup’s EUR 35 million investment in this transaction furthers the internationalization strategy of its High Performance Polymers business area.

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

Lenzing – The Lenzing Group had a clearly positive revenue and earnings development in the first quarter of 2021. Growing optimism in the textile and apparel industry as a result of the vaccination progress and the continuing recovery in retail led to a significant increase in demand and higher prices in the global fiber market.

•    Significant increase in operating result: EBITDA at EUR 94.5 mn, cash flow from operating activities more than tripled
•    Major strategic projects continue fully on track – production start of the lyocell plant in Thailand expected in the fourth quarter 2021
•    Upper Austria’s largest photovoltaic plant at the Lenzing site
•    Lenzing exits Hygiene Austria joint venture
•    Guidance 2021: Lenzing expects operating result at least at pre-crisis level

Please read the attached document for more information.