STS Group AG publishes final figures for the first quarter of 2019 / Market-related revenue decline / EBITDA improved / Forecast for 2019 confirmed

- Revenue decline by 12.3% to 95.5 mEUR (3M/2018: 108.9 mEUR) due to generally weaker market environment in Europe and China

- Adjusted EBITDA below previous year; EBITDA increased to 4.3 mEUR (3M/2018: 3.5 mEUR)

- The Management Board expects a positive market development in the second half of the year and confirms its forecast for the 2019 financial year

Hallbergmoos/München, May 15, 2019. STS Group AG (ISIN: DE000A1TNU68), a global systems supplier for the automotive industry, focusing on the commercial vehicle industry and listed in the Prime Standard of the Frankfurt Stock Exchange, today publishes its interim report on the first quarter of 2019.

Andreas Becker, CEO of STS Group AG: "In particular, the weak European passenger car market and the decreasing Chinese automotive market led to revenue declines in the first quarter. Nevertheless, we were able to improve our EBITDA. Revenue and earnings developments in the first quarter were in line with our expectations. We expect the market to recover in the second half of the year and anticipate several production ramp-ups in China. Against this backdrop, we maintain our forecast for fiscal year 2019."

Revenue and earnings development
STS Group generated revenue of 95.5 mEUR in the first quarter of 2019, compared with 108.9 mEUR (-12.3%) in the prior-year quarter. The main factors for the decrease in revenue are declines in the relevant passenger car market, a currently weaker market environment in China and the planned expiry of a major order. Despite the revenue decline in the first quarter, EBITDA increased to 4.3 mEUR (3M/2018: 3.5 mEUR). Adjusted EBITDA, on the other hand, was down on the previous year at 4.3 mEUR (3M/2018: 8.1 mEUR) due to lower revenue. Consolidated net income improved in the first quarter to -1.3 mEUR (3M/2018: -1.7 mEUR).

In the Acoustics division, weaker customer call-offs in the relevant passenger car market in Italy and Brazil led to a decline in sales of 15.4% to 29.1 mEUR. EBITDA fell to 0.0 mEUR (3M/2018: 0.2 mEUR). Although the earnings situation at the plant in Poland improved in the first quarter of 2019, it is still negative. Measures to further increase cost efficiency are being implemented. The start-up of a major order in mid-2020 will also significantly increase the plant's capacity utilization.

The decline in the Plastics division by 13.0% to 46.5 mEUR resulted mainly from the planned expiry of a major order (approx. -3.0 mEUR) and lower customer call-offs. However, EBITDA rose to 3.0 mEUR (3M/2018: 1.8 mEUR) due to the efficiency gains achieved and the absence of negative special effects in the prior-year quarter.

Following the market share gains achieved in China last year, the China division recorded a 9.6% decline in sales to 11.3 mEUR in the first quarter of 2019 (3M/2018: 12.5 mEUR) in an overall declining market. Logistics bottlenecks at a major customer also contributed to this. EBITDA amounted to 1.1 mEUR (3M/2018: 2.1 mEUR), which is attributable to the lower volume in revenue and the start-up costs for the new plant in Shiyan.

At 11.0 mEUR, revenues in the Materials division in the first quarter of 2019 were slightly down on the prior-year figure of 11.3 mEUR. EBITDA for the current reporting period fell from 0.8 mEUR to 0.4 mEUR.

Management Board confirms forecast for 2019
The decline in revenues and adjusted earnings in the first quarter of 2019 compared to the same period of 2018 is in line with the Company's expectations.
Taking into account the market recovery expected in the second half of the year and production ramp-ups in China, the Management Board maintains the annual forecast published on April 4, 2019 in the Annual Report 2018. This forecast sees in a continued challenging market environment stable sales volumes and an adjusted EBITDA at least at the prior-year level.

The interim report on the first quarter of 2019 of STS Group AG is available for download at https://ir.sts.group/websites/stsgroup/English/3100/financial-reports.html. The three-month figures are unaudited.

Telephone conference on May 15, 2019
At 2:00 pm today, May 15, 2019, STS Group AG will hold a telephone conference in English for interested investors and representatives of the press. To register, please e-mail ir@sts.group.

About STS Group:
STS Group AG, www.sts.group (ISIN: DE000A1TNU68), is a leading system supplier to the automotive industry for soft and hard trim. The Group, which has a history of tradition and expertise dating back to 1934, employs more than 2,500 peopleand generated revenue of 401,2 mEUR in the 2018 financial year. At its 17 plants in total in France, Italy, Germany, Poland, Mexico, Brazil and China, the STS Group ("STS") produces plastic and acoustic components, such as solid and flexible vehicle trim, noise and vibration-damping materials and entire interior and exterior trim systems. STS is considered a technology leader in the manufacture of plastic injection molding, specialty acoustic products and components from sheet molding compounds (SMC). STS has a strong footprint with plants in China, Europe, Mexico and Brazil. The customer portfolio comprises leading international commercial vehicle and automotive manufacturers.

STS Group AG
Stefan Hummel
Head of Investor Relations
Zeppelinstrasse 4
85399 Hallbergmoos, Germany
+49 811 124494 12
ir@sts.group
www.sts.group

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