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STS Group AG achieves 2020 forecast after very good fourth quarter and enters 2021 in a stronger position

2021| Mar| 15
Financial News

DGAP-News: STS Group AG / Key word(s): Preliminary Results
15.03.2021 / 07:30
The issuer is solely responsible for the content of this announcement.

  • 2020 sales and earnings forecast achieved within the forecasted range
  • Sales decline of 15.1% to 308.1 mEUR (2019: 362.8 mEUR) and adjusted EBITDA margin at 4.0% (2019: 4.9%)
  • Adjusted for IFRS 5, decrease in sales of 6.2% to 235.0 mEUR (2019: 250.7 mEUR) and an adjusted EBITDA margin of 7.5% (2019: 7.1%)
  • Net debt (incl. leasing) reduced to 16.5 mEUR as of 31 December 2020 (31 December 2019: 39.1 mEUR)

Hallbergmoos/Munich, 15 March 2021. STS Group AG (ISIN: DE000A1TNU68), a global systems supplier for the automotive industry listed on the General Standard of the Frankfurt Stock Exchange, today publishes its preliminary and unaudited figures for the 2020 financial year.

Mathieu Purrey, CEO of STS Group AG: "Business development was strongly influenced by the Corona pandemic, especially in the first half of the year. Nevertheless, the development of sales and earnings was within our expectations. We have rolled out important strategic measures throughout the Group in 2020 and are thus on a very good path to emerge stronger from the Corona-related crisis. This is what we want to build on in the 2021 financial year, increase profitability and efficiency and focus our European business, where the roots of the STS Group are. In China, our priority is to leverage the momentum of a strong financial year achieved despite the Corona pandemic and the continued excellence of our sales activities. Furthermore, we will continue to intensify our activities to expand the North American location. The major trends in the automotive industry such as e-mobility, lightweight construction and digitalization are intact. The STS team is working on all these megatrends together with our customers, already delivering the right solutions today. The takeover of the majority stake in STS by the Adler Pelzer Group, announced on 11 March, will also create new opportunities and synergy potential for the entire Group. We are therefore optimistic about the 2021 financial year, in which we want to continue to shape the transformation of the automotive and commercial vehicle industry as a strong partner for our customers."

Sales and earnings development
STS Group AG has achieved the forecast for sales and adjusted EBITDA communicated in November 2020. According to preliminary calculations, the Group (including the discontinued business of STS Acoustics) generated sales of 308.1 mEUR in the 2020 financial year (2019: 362.8 mEUR). This corresponds to a decline in sales of 15.1%, which is within the forecast range (-14.0% to -16.0%). The adjusted EBITDA margin reached 4.0% (2019: 4.9%), also in line with expectations (4.0% to 4.8%). Adjusted for the Acoustics segment as discontinued operations under IFRS 5, sales for the financial year amounted to 235.0 mEUR (2019: 250.7 mEUR) and the adjusted EBITDA margin reached 7.5% (2019: 7.1%). The deconsolidation result of the Acoustics segment is recognized as a result from discontinued operations. Further business figures, as well as the annual report, are presented below in accordance with IFRS 5.

The Group sales decline was particularly attributable to the pandemic-related plant shutdowns in Europe and China in the first half of the year. The China segment was able to more than compensate for the plant shutdowns in the reporting year with sales growth of 68.5% to 85.0 mEUR, mainly driven by the start-up of new projects in 2020 and a strong local commercial vehicle market. In Europe, on the other hand, the recovery was slower. As a result, production losses could not be compensated despite a strong fourth quarter. Consequently, the Plastics and Materials segments recorded a sales decline of 23.1% to 129.9 mEUR and 33.0% to 26,7 mEUR, respectively.

Before interest, taxes, depreciation and amortization, the preliminary operating result (EBITDA) for the Group amounted to 13.0 mEUR in the reporting period and was below previous year's level (2019: 15.3 mEUR) due to the decline in sales as well as the extraordinary expenses incurred. Extraordinary expenses of 4.7 mEUR (2019: 2.6 mEUR) were incurred in the financial year. EBITDA adjusted for extraordinary items fell slightly from 17.9 mEUR to 17.7 mEUR. The adjusted EBITDA margin was 7.5% (2019: 7.1%). 1.7 mEUR of the extraordinary expenses are attributable to the closure of the Group headquarters and the related dismissals for operational reasons. A further 2.0 mEUR is related to special expenses for the sale of the Acoustics segment.

Despite the decline in sales, the STS Group's adjusted EBITDA was maintained almost at the previous year's level. The growth of the high-margin China segment was decisive, as was the restructuring of the Group headquarters and the associated cost savings. While the adjusted EBITDA of the Plastics segment decreased by 10.3 mEUR to 2.3 mEUR due to the decline in sales, the China segment was able to almost compensate for this decline, with an increase in adjusted EBITDA by 8.4 mEUR to 17.4 mEUR.

After consideration of the deconsolidation result of the Acoustics segment (3.9 mEUR) included in the result from discontinued operations (-7.6 mEUR), the consolidated result for the 2020 financial year totals -15.9 mEUR (2019: -12.1 mEUR).

Balance sheet:
According to preliminary calculations, total assets fell from 256.5 mEUR to 185.7 mEUR compared to 31 December 2019. Equity as of 31 December 2020 amounted to 51.1 mEUR (31 December 2019: 68.6 mEUR), corresponding to an equity ratio of 27.5% (31 December 2019: 26.7%). Cash and cash equivalents amounted to 20.0 mEUR as of 31 December 2020 (31 December 2019: 17.2 mEUR) and financial liabilities to 36.5 mEUR (31 December 2019: 56.3 mEUR), including bank liabilities of 20.7 mEUR (31 December 2019: 12.4 mEUR), third party loans of 3.8 mEUR (31 December 2019: 7.7 mEUR) and leasing liabilities of 12.0 mEUR (31 December 2019: 24.1 mEUR). There were no liabilities from factoring as of 31 December 2020 (31 December 2019: 12.1 mEUR). As a result, net financial debt significantly improved as of the 2020 balance sheet date to 16.5 mEUR (31 December 2019: 39.1 mEUR), which is attributable to the assignment of liabilities in connection with the sale of the Acoustics division.

Final figures 2020
STS Group AG will publish detailed and final figures for the 2020 financial year and the outlook for the current financial year on 7 April 2021.

Preliminary, unaudited figures for the 2020 financial year

in mEUR20202019
Sales before IFRS 5308.1362.8
Sales after IFRS 5235.0250.7
EBITDA before IFRS 511.614.6
EBITDA after IFRS 513.015.3
Adj. EBITDA before IFRS 512.417.6
Adj. EBITDA after IFRS 517.717.9
Adj. EBITDA before IFRS 5
(in % of sales)
Adj. EBITDA after IFRS 5
(in % of sales)
in mEUR (after IFRS 5)20202019
Sales 235.0250.7
Change in inventory-1.75.2
Other income4.02.7
Cost of materials-129.0-139.5
Personnel expenses-61.8-70.2
Other expenses-33.5-33.6
Financial income0.00.0
Financial expenses-2.2-1.6
Result before taxes-5.3-2.1
Income taxes-3.0-2.4
Result from discontinued operations-7.6-7.6
Group result-15.9-12.1
In mEUR20202019
Non-current assets86.3136.4
Current assets99.4120.0
Total assets185.7256.5
Total equity51.168.6
Long-term debt41.755.0
Current liabilities92.9132.9
Total liabilities185.7256.5

About STS Group:
STS Group AG ("STS") is a leading system supplier to the automotive industry. It employs more than 1,600 people worldwide and generated sales of 235.0 mEUR in the financial year 2020. STS produces and develops at its 12 plants and three development centers in France, Germany, Mexico, China and, in the future, also in the USA plastic injection moulding and components made of composite materials (Sheet Molding Compound - SMC), such as solid and flexible vehicle and aerodynamic trim, entire interior systems, as well as lightweight construction and battery components for electric vehicles. STS is considered as a technology leader in the manufacture of plastic injection moulding and components made of composite materials. STS has a large global footprint with plants in three continents. The customer portfolio comprises leading international manufacturer of commercial vehicles, passenger cars and electric vehicles.

STS Group AG
Stefan Hummel
Head of Investor Relations
Zeppelinstrasse 4
85399 Hallbergmoos
+49 (0) 170 1810765

15.03.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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