Stabilus S.A. confirms preliminary figures for FY2019 and proposes dividend of EUR 1.10 per share

CORPORATE NEWS

Stabilus S.A. confirms preliminary figures for FY2019 and proposes dividend of EUR 1.10 per share

- Revenues in Q4 FY2019 +6.4% to EUR 245.6 million; Adjusted EBIT Q4 FY2019 +6.8% to EUR 39.1 million (adjusted EBIT margin 15.9%)

- Forecast for FY2019 fulfilled: Revenues in FY2019 -1.2% to EUR 951.3 million and adjusted EBIT margin 15.0%; Adjusted EBIT^[1] FY2019 -4.4% to EUR 142.7 million

- FY2019 result reaches EUR 80.9 million, compared to EUR 105.4 million in the previous year (FY2018 result contained a non-recurring positive tax effect of EUR 11.1 million).

- Revenue growth of 2 percent to 4 percent to between EUR 970 million and EUR 990 million expected for fiscal year 2020 with an adjusted EBIT^[1]margin of around 15.0%; STAR 2025 long-term forecast confirmed

Luxemburg/Koblenz, December 13, 2019 - Stabilus S.A. (ISIN: LU1066226637), one of the world's leading suppliers of gas springs, damping solutions and electromechanical drives for motion control, today confirmed its preliminary figures, released on November 15, 2019, and published the company's 2019 Annual Report. The Group closed the fiscal year 2019, which ended September 30, with a strong final quarter and met its full-year forecast.

Dr. Michael Büchsner, CEO of Stabilus, stated: "In a challenging market environment, Stabilus posted a solid performance and met its forecast for fiscal year 2019. In the long term, the megatrends that shape consumer and purchasing decisions worldwide will remain intact. These include demographic change, higher living standards, growing expectations with regard to comfort and an increase in safety awareness and occupational safety requirements. With our motion control solutions, we will reap above-average benefits from these trends. We therefore expect a return to growth in the fiscal year 2020 and confirm the STAR 2025 long-term forecast."

The image part of the annual report includes a detailed interview with Dr. Michael Büchsner in which he discusses the status quo and outlook for Stabilus.

Preliminary revenue figures for fiscal year 2019 confirmed

In the full fiscal year 2019, the Group recorded a slight decline in revenue of 1.2 percent to 951.3 million euros (FY2018: EUR 962.6 million). Adjusted for the USD/EUR currency effect and acquisitions, Group revenue fell by 4.3 percent.

In the Europe region, revenues in FY2019 dipped by 1.9 percent to EUR 482.1 million, mainly due to a weaker automotive market. In the NAFTA region, revenues rose by 2.6 percent compared to the previous year to EUR 357.3 million, with a supportive effect by the strong US dollar (average exchange rate of USD 1.13/EUR in FY2019 vs. USD 1.19/EUR in FY2018). Adjusted for the USD/EUR currency effect, NAFTA's revenues performance amounted to -2.8 percent in FY2019. In Asia/Pacific and RoW (Rest of World), the company reported a decline in revenues of 9.1 percent compared to the previous year to 111.9 million euros. This was mainly due to the sharp drop in the light vehicle^[2] production in China.

Stabilus recorded an increase in revenues in its industrial business in fiscal year 2019, thus largely offsetting the decline in the automotive business. The industrial business accounted for 39 percent of revenues in FY2019, with revenues up 5.1 percent to 369.9 million euros from 352.0 million euros in the previous year. Adjusted for the USD/EUR currency effect and acquisitions, revenue growth was 0.5 percent. Stabilus recorded strong growth in the solar damper as well as production and construction technology segment. In the automotive segment, which accounted for 61 percent of total revenues in fiscal year 2019, the company's revenues decreased by 4.8 percent to 581.4 million euros (FY2018: EUR 610.6 million). Adjusted for the USD/EUR currency effect, revenues fell 6.9 percent. The automotive sector suffered in particular from weak automotive production in Europe and China.

Adjusted EBIT margin of 15.0 percent; Dividend proposal of EUR 1.10 per share

Adjusted operating profit (adjusted EBIT^[1]) decreased by 4.4 percent to 142.7 million euros in FY2019, compared to 149.3 million euros in the previous year. This corresponds to an adjusted EBIT^[1] margin of 15.0 percent, compared to 15.5 percent in the same period of the previous year. Accordingly, Stabilus has met its latest forecast - both pertaining to the revenue and adjusted EBIT margin - for fiscal year 2019, which was issued with the publication of the 9M FY2019 figures.

Net profit in FY2019 amounted to 80.9 million euros, compared to 105.4 million euros in the previous year (FY2018 result contained a non-recurring positive tax effect of 11.1 million euros.). Free cash flow before acquisitions (adj. FCF^[1]) was 89.9 million euros, compared to 100.2 million euros in the previous year.

The Stabilus management board and supervisory board will propose to the annual meeting of shareholders taking place in Luxembourg on February 12, 2020 that a dividend of EUR 1.10 will be paid for the 2019 fiscal year (dividend for FY2018: EUR 1.00).

Forecast for fiscal year 2020 and long-term STAR 2025 forecast foresee profitable growth

Under the assumptions detailed in the 2019 Annual Report, Stabilus expects revenue growth of around 2 percent to 4 percent to approximately 970 million euros to 990 million euros and an adjusted EBIT^[1] margin of approximately 15.0 percent. Furthermore, Stabilus confirms its STAR 2025 long-term guidance communicated in 2017 for average annual organic growth of 6 percent up to fiscal year 2025.

The 2019 annual report can be downloaded from the company's website at Investors / Financial Reports & Presentations 2019.

________________________

^[1] Cf. definition/calculation of KPI's 'adjusted EBIT' and 'free cash flow before acquisitions (adj. FCF)' provided in our current financial reports and earnings presentations, e.g. in our annual report for FY2019, pp. 27 and 33, that can be downloaded from the company's website at Investors / Financial Reports & Presentations 2019.
^[2] Light vehicles = passenger cars and light commercial vehicles (<6t).

Investor contact:
Andreas Schröder
Tel.: +352 286 770 21
E-Mail: anschroeder@stabilus.com

Press contact:
Tobias Eberle
Tel.: +49 69 794090 24
E-Mail: Tobias.Eberle@charlesbarker.de
Charles Barker Corporate Communications

About Stabilus

As one of the world's leading suppliers of gas springs, damping solutions and electromechanical drives, Stabilus has for eight decades been demonstrating its expertise in the automotive industry and a variety of other sectors. Gas springs, dampers and electromechanical POWERISE drives from Stabilus optimize opening, closing, lifting, lowering and adjusting operations, and also protect against vibrations. Employing a workforce of more than six thousand worldwide, the company has its operational headquarters in Koblenz. Stabilus has reported revenues of EUR 951.3 million in the 2019 fiscal year. Stabilus has a global production network encompassing plants in eleven countries. Additionally, the Group maintains regional offices and relations to sales partners in over fifty countries in Europe, North, Central and South America, and in Asia Pacific. Stabilus S.A. is listed in the Prime Standard segment of the Frankfurt Stock Exchange and included in the SDAX index.

Important Notice

This press release may contain forward-looking statements based on current assumptions and forecasts made by Stabilus Group management and other information currently available to Stabilus. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here.