InTiCa Systems AG: Interim Report for 3M 2022 published – Good start in increasingly difficult environment

• At EUR 26.9 million, Group sales remain at a high level (3M 2021: EUR 28.8 million)
• EBIT margin of 3.8% despite increased material prices (3M 2021: 4.7%)
• Investments secure long-term growth
• Solid order backlog, but high uncertainties due to war in Ukraine and ongoing pandemic

InTiCa Systems AG (Prime Standard, ISIN DE0005874846, ticker IS7) today published the interim report for the first three months of 2022. Recording the second highest quarterly sales in the history of the Group and a clear interim profit, InTiCa continued its successful course although it did not quite match the record figures achieved in the prior-year period, which were driven by pent-up demand. This was attributable to good order offtake in the electromobility sector and energy storage applications.

„While the first quarter of 2021 was dominated by pent-up demand and, given the start of the vaccination drive, confidence that the pandemic could be overcome, the current business environment is affected more than ever by exceptional challenges. We performed very well in this difficult environment with both segments contributing to the good sales position. All earnings indicators were clearly positive, though material costs remained high as a result of tight supply chains. The fact that we are stepping up investment in e-solutions following the pandemic-induced restraint of recent years may be the best indication of our view of the present business situation and the associated opportunities and risks“, comments Dr. Gregor Wasle, CEO of InTiCa Systems AG the business development.

Earnings, asset and financial position

Compared to the prior-year quarter, which was driven by pent-up demand, Group sales declined by 6.4% year-on-year to EUR 26.9 million in the first three months of 2022 (3M 2021: EUR 28.8 million). In the Automotive segment, sales dropped 5.4% year-on-year to EUR 20.1 million (3M 2021: EUR 21.2 million) while sales in the Industry & Infrastructure (previously Industrial Electronics) segment decreased by 9.0% to EUR 6.9 million (3M 2021: EUR 7.5 million).

At 64.1%, the ratio of material costs to total output in the reporting period was slightly below the prior-year level (3M 2021: 64.8%). By contrast, the personnel expense ratio (including agency staff) increased slightly from 19.0% to 19.8%.

EBITDA (earnings before interest, taxes, depreciation and amortization) decreased by 9.4% to EUR 2.5 million (3M 2021: EUR 2.8 million), with the EBITDA margin slightly below the previous year’s level at 9.3% (3M 2021: 9.6%). EBIT (earnings before interest and taxes) amounted to EUR 1.0 million (3M 2021: EUR 1.3 million), so the EBIT margin declined from 4.7% to 3.8%. At segment level, Automotive reported EBIT of EUR 0.8 million in the first three months of 2022 (3M 2021: EUR 0.9 million) and the Industry & Infrastructure segment reported EBIT of EUR 0.2 million (3M 2021: EUR 0.4 million).

The financial result was minus EUR 0.1 million in the reporting period (3M 2021: minus EUR 0.1 million), and tax expense was EUR 0.3 million (3M 2021: EUR 0.2 million). Group net income therefore amounted to EUR 0.6 million in the first three months (3M 2021: EUR 1.0 million). Earnings per share were EUR 0.15 (3M 2021: EUR 0.23).

Since the interim result was lower than in the prior-year period and receivables were considerably higher on the reporting date, the operating cash flow was negative in the first three months of 2022 amounting to minus EUR 269 thousand (3M 2021: inflow of EUR 16 thousand). This applies to an even greater extent for the overall cash flow of minus EUR 3.1 million (3M 2021: minus EUR 1.7 million), principally because, alongside scheduled repayments of principal, capital expenditures have been ramped up after two years of restraint. The equity ratio slipped slightly to 33.0% in the reporting period but remains at a solid level (3M 2021: 33.7%).

Outlook

At the end of the first quarter of 2022 orders on hand were slightly below the strong prior-year level at EUR 105.1 million (March 31, 2021: EUR 113.3 million). 81% of orders were for the Automotive segment (Q1 2021: 80%). Order offtake has been stable so far in 2022, but uncertainty is high as it is difficult to predict the future development of the coronavirus pandemic and the war in Ukraine. Supply bottlenecks are already causing instability in production, including production stoppages at many sites operated by German OEMs. Further problems are to be expected, increasing production costs and raising the general uncertainty the market for products.

„The impact on production and sales markets are also increasingly visible at InTiCa. Even demand for electric cars, which was still rising in the first quarter, has recently proven unable to escape the market trend. Despite the difficult conditions, the transformation in key technologies, renewable energies, electromobility and connectivity will continue to make headway and will deliver positive impetus. To safeguard the long-term growth of the InTiCa Systems Group, we are investing selectively in development, technologies and, above all, expansion of local and global production capacity. As planned, in the first quarter we started to prepare for production of an innovative antenna and actuators for chassis parts in Mexico and the Czech Republic“,comments Günther Kneidinger, Member of the Management Board.

At present, the Board of Directors still assumes that, taking into account the particular challenges of 2022, Group sales will be relatively stable at EUR 85.0 million to EUR 100.0 million, while the EBIT margin will be slightly lower at between 2.5% and 3.5% Where possible, the material cost ratio should be optimized further in both segments and the equity ratio should remain stable. The assumptions underlying the forecast for 2022 are that the coronavirus pandemic will decline worldwide and the war in Ukraine will not escalate further. Unforeseeable negative effects could affect suppliers, have a direct impact on InTiCa Systems, or affect its customers, resulting in an inability to meet expectations.

The complete interim report for 3M 2022 is available for download from the Investor Relations section of InTiCa Systems’ website at www.intica-systems.com.

Forward-looking statements and predictions

This press release contains statements and forecasts referring to the future development of InTiCa Systems AG which are based on current assumptions and estimates by the management that are made using information currently available to them. If the underlying assumptions do not materialize, the actual figures may differ substantially from such estimates. Future developments and results are in fact dependent on a large number of factors; they contain different risks and imponderables and are based on assumptions that may not be accurate. We neither intend nor assume any obligation to update forward-looking statements on an ongoing basis as these are based exclusively on the circumstances prevailing on the date of publication.