Slides
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1 FY 2024 results & Outlook 2025
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2 Disclaimer This report contains forward-looking statements. These statements are based on current experience, estimates and projections of the Management Board and the information available at the time this report was prepared. They are not guarantees of future performance and results and are subject to risks and uncertainties that are beyond hGears’ ability to control or predict, such as future market conditions, regulatory changes, or the behavior of other market participants, for instance. These and other factors can cause the actual results, performance and financial position to deviate significantly from the estimates stated herein. hGears does not assume any obligation to update the forward-looking statements contained in this report. Certain numerical data, financial information and market data, including percentages, in this document have been rounded according to established commercial standards. Furthermore, in tables and charts, these rounded figures may not add up exactly to the totals contained in the respective tables and charts.
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3 FY 2024 Highlights Economic weakness and destocking impact revenues and earnings – countermeasures are proving successful • hGears navigated another tough year in 2024 – sales and earnings in line with guidance • Market conditions remained challenging; ongoing destocking in e-Bike and [e]-Mobility slowing • e-Tools had a strong second half 2024 and solidified its stabilization at low levels • hGears continued to adapt and optimize structures to strengthen resilience, while maintaining a strong focus on cash preservation • Stable balance sheet and adequate financial manoeuvrability • 2025 guidance reflects another challenging year
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4 Quarterly sales development of the business areas Sales (in EUR million) 10.3 8.7 7.3 6.9 7.3 7.8 8.9 8.5 12.3 13.2 11.8 12.3 12.6 11.9 9.2 10.4 5.2 6.9 7.7 9.0 6.0 4.5 3.8 4.1 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 e-Tools [e]-Mobility e-Bike
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5 Financial Review
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6 • e-Bike – Industry-wide destocking ongoing • [e]-Mobility – EHV and ICE demand weakened – Start of production (SOP) for new projects delayed • e-Tools – Continuous stabilization at low levels • Adjusted EBITDA – Adj. EBITDA reflects capacity adjustments and cost cuts • Personnel expenses decline by EUR 3.5 million yoy • Net other operating expenses decline by EUR 4.0 million yoy – Optimization of operating structures and refining of resource management 33.2 32.5 49.6 44.2 28.9 18.5 FY23 FY24 e-Tools [e]-Mobility e-Bike 56.2 43.6 0.0 10.0 20.0 30.0 40.0 50.0 60.0 FY23 FY24 5.6 0.5 -2.0 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 FY23 FY24 Market conditions remained challenging; ongoing destocking in e- Bike, [e]-Mobility slowing and e-Tools stable at low levels Sales (in EUR million) • Adj. Gross profit and adj. Gross profit margin – Adjusted Gross profit burdened by • Low volumes causing inefficiencies (lack of operating leverage, stop- and-start costs) • Negative mix effect Adj. Gross Profit (in EUR million) Adj. EBITDA (in EUR million) 111.7 95.2 50.0% 45.5% Adj. Gross profit Adj. Gross profit margin 5.0% 0.5% Adj. EBITDA Adj. EBITDA margin -36.1% -11.0% -2.0%
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7 12.4 10.2 9.7 3.4 4.9 6.2 7.7 9.4 1.0x 1.0x 1.3x 0.6x 1.1x 1.9x 3.8x 18.8x -7 -2 3 8 13 18 23 28 -3.0 -2.0 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 13.0 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 Stable balance sheet and adequate financial manoeuvrability Net Debt (in EUR million) and Leverage • NWC/Revenues 7.5 % (2023: 8.2 %) • Equity ratio FY24 49.4 % • Net debt & liquidity – Cash and cash equivalents amount to EUR 17.1 million – Net debt at historical levels in absolute terms – High net debt/EBITDA multiple result of temporary low profitability Net debt Leverage (LTM Adj. EBITDA)
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8 Outlook & Closing Remarks
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9 Guidance for 2025 2025 Guidance Revenue EUR 80 – 90 million Adjusted EBITDA EUR minus 4 to minus 1 million Free Cash Flow EUR minus 6 to minus 2 million
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10 Q&A