S&T AG: Successful first quarter, Kontron turnaround proceeding as planned

Friday, 5th May 2017

Austria

Revenues from sales rise to EUR 182,8 Mio (PY: EUR 96,4 million)
EBITDA increases to EUR 12,2 million (PY: EUR 6,3 million)
Kontron delivers profits

Linz, 05.05.2017. Through the consolidation of Kontron AG, S&T AG (www.snt.at) realized in the first quarter of 2017 new all-time highs for sales and at the same time earnings. As compared to 2016's period of comparison, sales rose from EUR 96.4 million to EUR 182.8 million. The high gross margin of 39.3% is primarily based upon the altered portfolio of products and services. EBITDA was increased from EUR 6.3 million (Q1/2016) to EUR 12.2 million (Q1/2017). Consolidated income rose to EUR 3.8 million (PY: EUR 3.2 million).

Seasonal factors caused operative cash flow to be negative. It still improved to EUR -4.6 million as opposed to EUR -8.8 in previous year's period of comparison. Liquid funds amounted to EUR 109.4 million as of March 31st 2017. Net cash position came to EUR 16.4 million (31.12.: 32.0 million). The costs of restructuring Kontron AG led in the first quarter of 2017 to cash outflows. The equity rate remained at a high level and came to 37.9% in the first quarter of 2017 - as opposed to 36.0% at the end of 2016.

The turnaround of Kontron is proceeding as planned, Kontron already delivered profits in the first quarter of 2017. Implemented were measures to cut costs by EUR 18 million annually and already led to substantial reduction of expenditures in the first quarter. Not expected for the rest of 2017 are any further expenditures for restructuring. At the moment, S&T holds a 36.3% stake in Kontron. Kontron AG will hold a general meeting on 19th of June 2017. Its shareholders are to resolve the merger with S&T Deutschland Holding AG then.

The publication of the figures on the first quarter of 2017, also in respect to the progress of the turnaround of Kontron AG, is being accompanied by a substantial enhancement of the transparency of the reporting of the development of S&T's business in financial year 2017. This is leading the management to confirm its forecast of attaining sales of more than EUR 860 to 890 million in the current financial year. EBTIDA is expected to rise substantially to more than EUR 50 million for the year as a whole. Envisioned for the financial year 2018 is the exceeding of the one billion Euro mark in sales!