S&T AG: Eighth record year in a row

• Revenues grow by 12% to EUR 990.9 million (PY: EUR 882.0 million)
• Over-proportionate EBITDA increase of 33% to EUR 90.5 million (PY: EUR 68.1 million)
• Net income rises by more than 60% to EUR 48.5 million (PY: EUR 29.4 million)
• First months of financial year 2019 confirm guidance for 2019

Linz. 28.03.2019. S&T AG (www.snt.at) registered record results for financial year 2018 for the eighth year in a row. In 2018, S&T's revenues rose 12% on a y-on-y basis, going to EUR 990.9 million (PY: EUR 882.0 million), while the company substantially exceeded its profitability objectives: Operative income before amortization (EBITDA) increased by 33% to EUR 90.5 million (PY: EUR 68.1 million) and thus exceeded the guidance, which had been increased in November 2018, to at least EUR 88 million.

Driver for the exceptionally great increase in profitability in financial year 2018 remains the high margin segment “IoT Solutions”. Its EBITDA improved some 50%, rising to EUR 52.7 million (PY: EUR 35.1 million) and delivered again the highest EBITDA contribution with some 58% (PY: 52%). Revenues in this segment increased to EUR 376.7 Mio. (PY: EUR 320.3 million). The “IT Services” segment also developed positively. Its EBITDA increased by some 94% to EUR 26.4 million (PY: EUR 13.6 million), its revenues rose some 16% to EUR 448.9 million (PY: EUR 386.8 million). A revamping of its portfolio in 2018 negatively influenced the “Embedded Systems” segment. The segment attained an EBITDA of EUR 11.5 million (PY: EUR 19.4 million) and revenues of EUR 165.3 Mio. (PY: EUR 174.9 Mio.). Through the increased share of software and the latest design wins, the performance of this segment will be ramping up in 2019. The segment will be reported as “IoT Solutions America” as of financial year 2019.

S&T AG continues to have a high degree of financial stability, which will serve as the basis for achieving its growth objectives: In financial year 2018, S&T's operating cash flow came to EUR 35.5 million (PY: 44.9 million), with the cash and cash equivalents amounting to EUR 171.8 million (PY: EUR 216.9 million), and the net cash to EUR 52.7 million (PY: EUR 101.8 million). The equity rate increased to 43%, as compared to the previous year's 41%. S&T AG is currently working on the placement of a promissory note loan (Schuldscheindarlehen) to amount to EUR 150 million, as this will enable the company to exploit the current advantageous markets conditions, and to secure the long-term financing required to support growth.

The rise in net income was impelled by the revamping once more of S&T's portfolio with proprietary technologies as well as cost cuttings and the exploitation of synergies existing between the segments. Net income rose by more than 60%, going from EUR 29.4 million in 2017 to EUR 48.5 million in 2018. As of the balance sheet date, the earnings per share (EPS) had risen to 70 cents (PY: 43 cents). The ongoing upswing in business is causing the Executive Board and Supervisory Board to propose to the Annual General Meeting of shareholders, to be convened on May 21, 2019, a further increasing in the dividends to 16 cents (PY: 13 cents).

“Our record year in 2018 demonstrates once more that S&T - by focusing upon IoT and Industry 4.0-technologies - is in the right market at the right time,” states Hannes Niederhauser, CEO of S&T AG. “The Industry 4.0 market is set to grow by 2025 to up to EUR 25 billion. This continues to provide us with very positive business prospects. We have launched our “Agenda 2023” program with the goal to achieve revenues of some EUR 2 billion, and an EBITDA of at least EUR 200 million by 2023. To realize these objectives, we are pursuing the expansion of our Industry 4.0 portfolio, expanding geographically - especially in North America and Asia - and plan to make further acquisitions. In 2019, we plan to achieve revenues of EUR 1.1 billion - with possible acquisitions to come on top of that - and for the first time in our company's history, an EBITDA of EUR 100 million.“