From the Sector

• Sales increase by 4.7% to €283.7 million in Q1 2023
• Adjusted EBITDA improves by 9.0% to €40.1 million
• Growth based in particular on strong demand from the semiconductor industry

SGL Carbon generated Group sales of €283.7 million in Q1 2023 (Q1 2022: €270.9 million). This corresponds to an increase of €12.8 million or 4.7% compared to the same period of the previous year. Increased demand for specialty graphite components for the semiconductor industry from the Graphite Solutions business unit contributed in particular to the pleasing increase in sales. But also the Process Technology and Composite Solutions business units continued their positive business development.

Accordingly, adjusted EBITDA (EBITDApre) improved by 9.0% to €40.1 million in the reporting period (Q1 2022: €36.8 million).

Sales development
In the first three months of fiscal year 2023, the business unit Graphite Solutions was the main driver of SGL Carbon's growth with an increase in sales of €21.3 million or 17.8%. This is due in particular to the reallocation of production capacities from the solar industry market segment to the semiconductor industry. The Process Technology (+€6.6 million) and Composite Solutions (+€4.0 million) business units also contributed to the increase in sales.

The Carbon Fibers (CF) business unit recorded a decline in sales of €24.0 million in the reporting period. The decline is mainly due to the scheduled expiry of the attractive supply contract for the BMW i3 in the middle of last year. Freed-up production capacities were compensated by orders from the wind industry in the 2nd half of 2022. But the necessary construction of wind turbines in Europe is currently stalling. Low building permits and high manufacturing costs are temporarily hampering the construction and expansion of wind parks and therefore the necessary increase in renewable energy.

Earnings development
In line with the sales development combined with higher capacity utilization and positive product mix effects, adjusted EBITDA (EBITDApre) improved from €36.8 million to €40.1 million in Q1 2023, representing a quarter-on-quarter increase of 9.0%.

Taking into account depreciation and amortization of €14.3 million (Q1 2022: €14.1 million) as well as one-off effects and non-recurring items of minus €0.1 million, EBIT in the reporting period amounted to €25.7 million (Q1 2022: €31.2 million). It should be noted that Q1 of the previous year was positively impacted by one-off effects and and non-recurring items amounting to €8.5 million. Accordingly, net profit for the period of €15.3 million was lower than in the same quarter of the previous year (€21.5 million).

Debt, equity and capitel expenditure
Net financial debt increased slightly to €174.2 million as of March 31, 2023 (Dec. 31, 2022: €170.8 million). The leverage ratio remains unchanged at 1.0. Due to the positive consolidated net income, the equity ratio increased again slightly compared to the end of fiscal 2022 to 39.5% (Dec. 31, 2022: 38.5%).

Looking at the capital expenditure in Q1 2023, it amounted to €19.0 million, which is higher than the average values of the previous quarters. "At the beginning of 2023, we had already announced the expansion of our investment activities to expand production capacities in the Graphite Solutions business unit. In previous years, our capital expenditure was in line with depreciation and amortization. In addition to these approximately €60 million, we will invest further €20 to €30 million in 2023, which will be financed by advance payments in the context of long-term supply contracts from our customers in the semiconductor industry. Our semiconductor customers secure future production capacities for graphite components, which are needed for their own growth. In return, SGL Carbon's long-term supply contracts will enable future profitable growth," said Dr. Torsten Derr, CEO of SGL Carbon.

Outlook
In line with the business performance in the first three months of 2023, the company confirms the sales and earnings guidance issued on March 23, 2023.

For the financial year 2023, Group sales are expected to be at the prior-year level and  EBITDApre between €160 - 180 million. Taking into account depreciation and amortization, EBITpre is forecast to be between €100 - 120 million. Furthermore, free cash flow at the end of fiscal 2023 is expected to be at the prior-year level and return on capital employed (ROCE) between 10% and 12%.

SHIMA SEIKI MFG., LTD. of Wakayama, Japan, together with its Hong Kong subsidiary SHIMA SEIKI (HONG KONG) LTD., will participate in the 40th Session of SPINEXPO in Shanghai, China from 12th - 14th April 2023.

At SPINEXPO, SHIMA SEIKI will offer visitors a choice between its "SDS®-ONE APEX4" apparel design system and its "APEXFiz®" subscription-based design software. Whereas SDS®-ONE APEX4 is offered as an all-in-one proprietary hardware + software package, APEXFiz® is subscription-based design software that can be installed on customers' individual computers. Both SDS®-ONE APEX4 and APEXFiz® software support the creative side of fashion from planning and design to colorway evaluation, realistic fabric simulation and 3D virtual sampling. Virtual samples are a digitized version of sample making that are accurate enough to be used effectively as prototypes, replacing physical sampling and consequently reducing time, cost and material that otherwise go to waste. When a design is approved for production, knitting data is automatically generated for converting to machine data, allowing smooth communication for digitally bridging the gap between studio and factory. APEXFiz® thereby helps to realize sustainability while digitally transforming the fashion supply chain.

Also on display at SPINEXPO will be SHIMA SEIKI's "yarnbank®," an online web service for searching and viewing the latest yarns, developed with cooperation from yarn companies from around the world. Registered users can download yarn data for free, for use in fabric simulation and virtual sampling on APEXFiz®, avoiding the need to scan yarn on their own. By using yarn that is used in actual production, designers and apparel companies can furthermore rest assured that the simulations created using yarn from yarnbank® are not merely realistic images but accurate representations using yarn that can actually be purchased and used in production. With yarnbank®, the entire supply chain from yarn companies and apparel companies to knit manufacturers can be connected digitally.

SHIMA SEIKI will also display the latest collection of its knit samples, including WHOLEGARMENT® knitwear that is knit in its entirety on the machine without the need for linking or sewing afterward. Together with virtual sampling performed on APEXFiz®, WHOLEGARMENT® offers smart production for realizing a sustainable fashion supply chain.

The Supervisory Board of adidas AG has extended the appointment of Harm Ohlmeyer as Chief Financial Officer of the company by another three years until the beginning of 2028. Harm Ohlmeyer has been member of the Executive Board of adidas AG since March 2017 and the company’s CFO since May 2017.

At the same time, the Supervisory Board appointed Arthur Hoeld as Executive Board member, responsible for Global Sales, as of April 1, 2023. Hoeld has been with adidas for 25 years, most recently as Managing Director of the company’s EMEA region since 2018. He will succeed Roland Auschel, who has decided to step down from his role, pass on the baton and leave the company after 33 years with adidas, including ten years as an Executive Board member.    

Furthermore, Brian Grevy, Executive Board member of adidas AG, responsible for Global Brands, has informed adidas AG’s Supervisory Board that he will step down from the Executive Board and leave the company. In mutual agreement with Brian Grevy, the Supervisory Board approved the termination of his appointment as an Executive Board member as of March 31, 2023. adidas CEO Bjørn Gulden will assume responsibility for Global Brands. In this role, Gulden will lead adidas product and marketing activities, which will enable the required fast decision-making across all business units and departments.

Thomas Rabe thanked Brian Grevy for his many important contributions during his years of service with the company. Grevy initially joined adidas in 1998 and held leadership positions of increasing responsibility for adidas on a local, regional and global level before leaving the company in 2016. At the beginning of 2020, Brian Grevy returned to adidas as the company’s Executive Board member for Global Brands.

As of April 1, 2023, the company’s new Executive Board will consist of Bjørn Gulden (Chief Executive Officer and Global Brands), Arthur Hoeld (Global Sales), Harm Ohlmeyer (Chief Financial Officer), Amanda Rajkumar (Global Human Resources, People and Culture) and Martin Shankland (Global Operations).

Many people across the world are bedridden – be it due to illness, an accident or old age. Because those affected often cannot move or turn over by themselves, they often end up with very painful bedsores. In the future, it should be possible to avoid bedsores with the help of materials that can be programmed to entirely adapt their form and mechanical properties. For example, the body support of mattresses made from programmable materials can be adjusted in any given area at the push of a button. Furthermore, the support layer is formed in such a way that strong pressure on one point can be distributed across a wider area. Areas of the bed where pressure is placed are automatically made softer and more elastic. Caregivers can also adjust the ergonomic lying position to best fit their patient.

Materials and microstructuring
Materials for applications requiring specific changes to stiffness or shape are being developed by researchers from Fraunhofer CPM, which is formed of six core institutes with the aim of designing and producing programmable materials. So, how can we program materials? “Essentially, there are two key areas where adjustments can be made: the base material – thermoplastic polymers in the case of mattresses and metallic alloys for other applications, including shape memory alloys – and, more specifically, the microstructure,” explains Dr. Heiko Andrä, spokesperson on the topic at the Fraunhofer Institute for Industrial Mathematics ITWM, one of the Fraunhofer CPM core institutes. “The microstructure of these metamaterials is made up of unit cells that consist of structural elements such as small beams and thin shells.” While the size of each unit cell and its structural elements in conventional cellular materials, like foams, vary randomly, the cells in the programmable materials are also variable – but can be precisely defined, i.e., programmed. This programming can be made, for example, in such a way that pressure on a particular position will result in specific changes at other regions of the mattress, i.e., increase the size of the contact surface and provide optimal support to certain areas of the body.

Materials can also react to temperature or humidity
The change in shape that the material should exhibit and the stimuli to which it reacts - mechanical stress, heat, moisture or even an electric or magnetic field - can be determined by the choice of material and its microstructure.

The journey to application
A single piece of material can take the place of entire systems of sensors, regulators and actuators. The goal of Fraunhofer CPM is to reduce the complexity of systems by integrating their functionalities into the material and reducing material diversity. We always have industrial products in mind when developing the programmable materials. As such, we take mass production processes and material fatigue into account, among other things,” says Franziska Wenz, deputy spokesperson on the topic at the Fraunhofer Institute for Mechanics of Materials IWM, another core institute of Fraunhofer CPM. The initial pilot projects with industry partners are also already underway. The research team expects that initially, programmable materials will act as replacements for components in existing systems or be used in special applications such as medical mattresses, comfortable chairs, variable damping shoe soles and protective clothing. “Gradually, the proportion of programmable materials used will increase,” says Andrä. Ultimately, they can be used everywhere – from medicine and sporting goods to soft robotics and even space research.

The Japanese textile brand ECOSENSOR™ by Asahi Kasei Advance continues its eco-high tech path and joins ISPO, the influential fashion and textile fair dedicated to sportwear and athleisure-wear, as part of an Asahi Kasei space within the ISPO Brandnew area, presenting its AW 2024/2025 & SS2024 collections, made of high-tech fabrics implementing new-generation values, with the aim of keeping nature, body and mind in harmony.

2022 is a special time for Asahi Kasei as it celebrates its 100th anniversary. This year at ISPO Munich (28-30^th November), Asahi Kasei Group present its innovation world featuring three of its brands: ECOSENSOR™, ROICA™ and RespiGard™.
 
ECOSENSOR™ presents 47 new references that meet the needs of the contemporary consumer, such as durability, wellbeing and performance. Being capable of combining active climate control, exquisite touch, lightness and comfort with sustainable values, ECOSENSOR™ stands out as a unique eco-high-tech performance proposition in its market. The collection covers the different market applications with 3 items for INNERWEAR, 1 for OUTERWEAR, 13 for SPORT KNIT and 30 for SPORT WOVENS.

New this season is the application of the RespiGard™ by Polypore unique membrane designed for outdoor apparel. Its innovative pore structure is too small for water droplets to penetrate but features high porosity that allows for airflow and moisture evaporation.

In order to show at best the performances and possible applications of the fabrics made with RespiGard™, ECOSENSOR™ will feature at its ISPO space an ad hoc created outfit by the outerwear brand.

Furthermore, the majority of ECOSENSOR™ fabrics are made with sustainable ingredients which are certified by international certifications such as GRS and RCS through a traceable and transparent production process and supply chain.  100% of the stretch articles (representing 35% of the collection) are made with ROICA™ EF by Asahi Kasei, the recycled stretch yarn made from pre-consumer materials. Even the dyeing and finishing phases - key moments for performancewear - have been certified by international labels such as bluesign® or OEKO-TEX® Standard 100.

The philosophy guiding Officina39's innovation and development ranges fluidly between exploration of color, denim heritage and artistic expression, but has sustainability and the search for environmentally friendly chemical solutions for the fashion industry as its cornerstones. This is the core vision that accompanied the Italian company, when presenting its latest technologies and collaborations at Denimsandjeans in Tokyo from November 1-2.

Denim & Art
Juan Manuel Gomez, Officina39 Creative Leader, represents the company’s multidisciplinary approach and combines artistic expression with a thorough technical experience. His explorations were drawn on the Denim Art Wall at the fair. Furthermore, in the interactive seminar “Art & Denim As A Process Of Repetition” he explained that there is a constant act of repetition as automatic drawing or pictorial act in the processes of the textile industry.

The SS24 collection
The Multicolor Denim Dreaming collection is a combination of several Officina39’s sustainable key technologies:

• Nebudye D: a wide range of fresh colors to obtain a unique dyeing effect in nebulization/fog system machinery and can be discharged in a creative way with Oz-One Powder, an advanced product to give garments a bleached yet eco-friendly treatment, and Remover IND/J-N, Officina39’s solution to replace the use of Potassium Permanganate (PP) on denim and obtain a worn and distressed vintage look.
• Novantic series: a combination of selected dyestuffs with a special mordanting agent suitable to obtain surface dyeing to provide vintage or old look effects.
• Recycrom™: a patented dyestuffs range obtained through a cutting-edge upcycling process that involves textile fibers from used clothing and manufacturing waste for dyeing and printing applications. Its sustainable and revolutionary powders assure a whole universe of denim effects: from classic authentic vintage to acid wash look (Eco Marble), from printed effect (Indigo Replica) to worn and distressed vintage look (Recycrom™ Dirty).
• Just One Step Process: an innovation that saves time, energy, space and of course water, by combining several phases of the Aqualess Mission at the same time: a raw garment enters the machine and a garment with a basic vintage effect comes out ready to be dried, already treated, bleached and softened.
• Remover Activator: a technology that in combination with PP replacement products creates in one step general bleaching, localized corrosion and highlights effects on jeans.

Freudenberg Performance Materials Apparel (Freudenberg) as a leading specialist in woven, knitted and non-woven interlinings and thermal insulation, presents sustainable solutions for sportswear and related product segments of all kinds in Munich.

Trade show visitors will experience a wide range of innovative and sustainable interlinings for active sports outfits, stretch interlinings for yoga wear, Pilates & Co, and thermal insulations that combine perfect outdoor wearing comfort with high warmth retention. With comfortemp® brand thermal insulations and the Active Range, Freudenberg presents a complete package for outdoor and sportswear for winter sports: thermal insulations, interlinings, tapes, lining fabrics and adhesive solutions.

The independent jury has nominated the 100 percent biodegradable thermal insulation comfortemp® nature Lyocell HO 60x, made from Lyocell regenerated fibers, for the Textrends Award fall/winter 2024/25 season. The award is given exclusively to innovative products that are groundbreaking for the development of the textile industry. comfortemp® nature Lyocell HO 60x has a variety of extraordinary performance characteristics as a high warmth retention, bacteria inhibiting and fast drying, furthermore water repellent. High wearing comfort and the assurance of a perfect moisture balance characterize the volume fleece as ideal for the application in sportswear.

Freudenberg is presenting its entire European and global product portfolio from its "House of Sustainability" at ISPO. The "House of Sustainability" supports Freudenberg in minimizing its ecological footprint and maximizing its ecological handprint. For this purpose, the company's own manufacturing processes are designed to minimize the impact on the environment. In addition, products are developed to help customers produce more sustainably.

Freudenberg Performance Materials (Freudenberg) has launched an elastic variant of its flexible superabsorbers for modern wound dressings. These superabsorbers increase the comfort level for patients as well as enabling longer wear time, thus reducing the frequency of dressing changes. Freudenberg is debuting the elastic superabsorbers at this year’s Compamed in Düsseldorf, from November 14 – 17, 2022. Further highlights at the trade fair include components for more sustainable wound care, PU foams with directly applied silicone adhesives, and an innovative hydrophilic debridement foam.

Freudenberg uses a new technology to manufacture the elastic superabsorbers. Unlike other methods, this technology does not perforate or slit the material, thus achieving a high degree of consistent elasticity. Furthermore, the technology used by Freudenberg bonds the superabsorbent fibers more uniformly with the material, thus enhancing the integrity of this layer in the wound dressing.

“Our new elastic superabsorbers demonstrate yet again how Freudenberg components help increase comfort for patients, reduce the workload for nursing staff and lower healthcare costs. Our extensive technology platform and our innovative strength are the basis for this,” Dr. Henk Randau, SVP and General Manager Global Division Healthcare at Freudenberg Performance Materials, said.

Stahl, an active proponent of responsible chemistry, has been awarded the highest EcoVadis Platinum rating, placing it within the top 1% of companies assessed by EcoVadis. The award underlines Stahl’s commitment to collaborating with its partners to reduce its environmental impact and build a more responsible and transparent supply chain.

EcoVadis is a globally recognized evidence-based assessment platform that reviews the performance of more than 90,000 organizations across key sustainability criteria. These include environmental impact, labor and human rights standards, ethics, and sustainable procurement practices. The latest report from EcoVadis highlights Stahl’s positive progress across all these areas and builds on the Gold rating achieved by the company in 2021. Stahl’s 2030 target is to maintain the EcoVadis Platinum rating by working closely with its value-chain partners to help them reduce their environmental impact – including by supporting their transition to renewable feedstocks. In 2021, 80% of Stahl’s total spend on raw materials was supplied by EcoVadis-rated suppliers.
 
The new EcoVadis rating comes as Stahl accelerates its efforts to ensure a more responsible and transparent supply chain. Recent steps toward this goal have included establishing a dedicated Supply Chain Transparency division within the company’s Environmental, social, and governance (ESG) department. The division will be tasked with coordinating a new product development framework that prioritizes the responsible sourcing of raw materials. Furthermore, in July 2022, Stahl submitted a new greenhouse gas (GHG) emissions reduction target, including a specific commitment regarding the company’s Scope 3 upstream emissions. Stahl aims to reduce these by at least 25% over the next 10 years, compared with the base year (2021). Stahl expects to achieve this reduction primarily by working with its suppliers to replace fossil-based raw materials with lower-carbon alternatives.

The BOGNER Golf collection combines an active lifestyle with luxurious comfort and a hint of glamour. Highly functional essentials are the best equipment for long days on the golf course: a waterproof finish and taped seams offer protection from the rain; high-performance Thermore® insulation gives mid-layers moisture-regulating, quick-drying and warming qualities; Powerstretch guarantees freedom of movement, and the lightweight quality of tech jersey ensures the best in comfort.

Each BOGNER golf collection is used to layer styles individually to create the perfect golf outfit according to the needs and regardless of the season. The selection of pants, polos, skirts, jackets and accessories combine sporty appeal and timeless style. Modern contrast stripes, monochrome elegance, neutral colors and sporty silhouettes – true to the motto Athluxury Sports Fashion.