PWO raises new business guidance due to high level to date and intends to expand capacity in Eastern Europe

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Progress-Werk Oberkirch AG / Keyword(s): Incoming orders/Strategic company decision
PWO raises new business guidance due to high level to date and intends to expand capacity in Eastern Europe

09-June-2022 / 17:54 CET/CEST
Disclosure of inside information acc. in Article 17 MAR of Regulation (EU) No 596/2014, transmitted by DGAP – a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

Ad hoc communication within the meaning of Art. MARCH 17

PWO raises new business guidance due to high level to date and intends to expand capacity in Eastern Europe

– Lifetime volume of around €405m won in the first 5 months of 2022

– Unchanged customer demands at a very high level

– New annual new business forecast: nearly 600 million euros

– Strategic alignment of the Group in the process of regional adjustment

– Ability to expand into Eastern Europe with an additional location

Oberkirch, June 9, 2022 – PWO’s sustainable business model, completely independent of combustion engines, combined with its global business approach and focus on development capabilities, is increasingly paying off. In the first 5 months of the current fiscal year, we have already won new business with a lifetime volume, including associated tool scopes, of around 405 million euros. Given that the number and volume of requests for additional orders are at an extremely high level, the board has decided to raise the forecast for the lifetime volume of new business in fiscal 2022. It now expects to earn a new business volume close to EUR 600 million (previously: more than EUR 500 million) over the whole year.

Thus, PWO is pursuing its global growth strategy. Once again, we have been particularly successful in developing innovative solutions for dashboard mounts. The Czech sites have won a major new order for vehicle models for which PWO will supply dashboard mounts for the first time. From 2023 the Mexican sites will also produce seat components for one of our largest customers. Finally, the process of seizing opportunities in new markets is progressing rapidly: after an initial contract for the prototype of fuel cell components, the contract for series production over several years has now been won.

We anticipate a high and sustained level of new business going forward. Since the European mobility industry has massively shifted added value to Eastern Europe in recent years, a very high share of current inquiries relate to production there. Our current Czech sites will not be able to meet this additional demand in the long term, as their capacity for expansion will be exhausted in the medium term. This is why the Board of Directors today adopted the strategic resolution to expand the capacity in Eastern Europe in the future and to provide the PWO Group with an additional site in Eastern Europe. Details on this will be communicated in due course.

PWO is valued by customers around the world as a partner in transforming the sustainable mobility industry. This is reflected in particular in the high level of new business. We systematically use our options to generate more targeted growth. New sales markets will also contribute to this. With the order of fuel cell components, we have shown that we can successfully apply our vast expertise at the frontiers of what is technologically possible in metal forming and assembly technologies associated with new products. This underlines the high level of innovative strength of the company.

Progress-Werk Oberkirch AG
The Executive Council

End of ad hoc disclosure

June 09, 2022 CET/CEST DGAP distribution services include regulatory announcements, financial/corporate news and press releases.
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