Progress-Werk Oberkirch AG: Supervisory Board meeting to adopt financial statements

- 2019 preliminary figures confirmed
- Shorter work schedules at the Oberkirch site
- 2019 unappropriated retained earnings to be carried forward in full for now

Oberkirch, March 26, 2020 - At its meeting today, the Supervisory Board of Progress-Werk Oberkirch AG reviewed, discussed and approved the annual financial statements and consolidated financial statements for the 2019 fiscal year, thereby adopting the annual financial statements of Progress-Werk Oberkirch AG. The preliminary figures for the 2019 fiscal year already announced on February 25, 2020 were confirmed.

On the one hand the Company's business development was adversely impacted by weak sales figures in the automotive industry in the past year, on the other hand the earnings situation was favorably impacted by the international locations and one-time extraordinary effects. The comparability of the revenues in the reporting year with the previous year and with the forecast for fiscal year 2019 is limited due to adjustments in IFRS accounting.

In 2019, Group revenues fell to EUR 458.6 million (p/y: EUR 476.3 million, adjusted). Total output decreased to EUR 459.9 million (p/y: EUR 478.0 million). EBIT before currency effects amounted to EUR 22.2 million (p/y: EUR 19.6 million). Including currency effects, EBIT amounted to EUR 19.9 million (p/y: EUR 18.4 million). Net income for the period was EUR 9.1 million (p/y: EUR 6.6 million) and earnings per share were EUR 2.91 (p/y: EUR 2.12). Free cash flow increased strongly to EUR 15.0 million (p/y: EUR 8.1 million). The equity ratio improved slightly to 30.1 percent (p/y: 29.9 percent). This also applies to the dynamic leverage ratio, which amounted to 2.9 years (p/y: 3.1 years). At EUR 510 million (p/y: EUR 304 million), new business was significantly higher than in the previous year.

Due to the outbreak of the corona pandemic, extensive restrictions were imposed on public life in many countries, which is leading to considerable economic burdens. PWO is therefore significantly scaling back production at its Oberkirch location and will adjust the capacities at its subsidiaries to the respective local conditions. In addition, shorter work schedules have been introduced for employees in all areas of the Company at the Oberkirch site. These shorter schedules are expected to reduce work time by almost 100 percent, at least temporarily.

The Supervisory Board noted with approval the decision of the Management Board to postpone the ordinary Annual General Meeting, previously scheduled for May 27, 2020, for a period of two to three months due to regulatory restrictions.

In view of the present situation, the Management Board resolved a proposal for the appropriation of retained earnings on March 20, 2020, which it specified in more detail at the meeting. The Supervisory Board and the Management Board agree that the proposal by the Management Board is not a fundamental departure from the Company's previous dividend policy, but rather an exceptional precautionary measure in a crisis that is not yet foreseeable to its full extent, caused by the effects of the corona pandemic. As part of the comprehensive measures to ensure sufficient liquidity in the current fiscal year, the unappropriated retained earnings for 2019 will initially be carried forward in full, contrary to earlier considerations. On the basis of the further development of business, the Management Board and Supervisory Board may adopt a resolution on a possible new proposal for the appropriation of retained earnings, including the distribution of a dividend for 2019, in due time before a new date for the Annual General Meeting. The Management Board and Supervisory Board have agreed to this procedure.

The 2019 Annual Report will be available on the Company's website at www.progress-werk.de/en as of March 30, 2020.

Progress-Werk Oberkirch AG
The Management Board

PWO company profile
PWO is a partner to the global automotive industry for the development and production of advanced metal components and subsystems using lightweight construction. The Group has developed a unique knowledge in the forming and joining of metals over the course of its more than 100-year history since it was founded in 1919. With our expertise in cost-efficient lightweight construction, we contribute to environmentally friendly driving and greater distances.

All of the Group's more than 1,000 products contribute to automotive comfort and safety. More than 90 percent of revenue is independent of the vehicle's type of drivetrain. Approximately 3,200 employees on three continents at five production sites and four assembly plants ensure the highest level of delivery reliability and quality.