SFC Energy AG publishes preliminary Group figures for 2022 – Record growth again and increase in earnings

SFC Energy AG publishes preliminary Group figures for 2022 – Record growth again and increase in earnings

• Preliminary Group sales exceed upper end of the forecast for 2022, rising by 32.5% to EUR 85,229 thousand (2021: EUR 64,320 thousand)
• Preliminary adjusted EBITDA of EUR 8,150 thousand (2021: EUR 6,233 thousand) slightly above the midpoint of the forecast range, adjusted EBITDA margin of 9.6% almost at the previous year’s level (2021: 9.7%), adjusted EBIT margin increases to 3.7% (2021: 3.0%)
• Order book more than doubles to EUR 74,176 thousand as of the 2022 balance sheet date (December 31, 2021: EUR 30,551 thousand)
• Clean Energy segment achieves 35.8% growth in sales, Clean Power Management segment increases sales by 26.1% in 2022 due to the continued strong demand for methanol and hydrogen fuel cells
• Forecast for 2023: Sales growth to between EUR 103 million and EUR 111 million, adjusted EBITDA of EUR 8.9 million to EUR 14.1 million and adjusted EBIT of EUR 3.4 million to EUR 8.6 million

Brunnthal/Munich, Germany, February 14, 2023 – SFC Energy AG (“SFC,” F3C:DE, ISIN: DE0007568578), a leading supplier of hydrogen and methanol fuel cells for stationary and mobile hybrid power solutions, has released preliminary figures for the full year 2022 and its forecast for fiscal year 2023.

Management Board Report

“Fiscal year 2022 was another record year in the company history of SFC Energy AG. With sales of EUR 85,229 thousand, we not only significantly exceed the previous year’s figure, but also our own expectations and the analysts’ consensus. This dynamic development of our business reflects the unabated high demand for EFOY hydrogen and methanol fuel cells as well as a noticeably improved market environment in the core target industries of the Clean Power Management segment. This can be seen in two developments in particular: Firstly, geopolitical imbalances have accelerated demand for alternative technologies, as conventional fossil-based power generation leads to dependencies and both countries and companies want to scale it back. Secondly, our performance was made possible by the social and political will to achieve climate targets. The regions of North America and Asia in particular have become increasingly important for us. We are seeing a massive increase in demand for our fuel cells in the world’s largest economy and most populous region of the world. In 2022, the share of Group sales generated in the North America region rose sharply compared to the previous year by 56.9%, and in the Asia region by 66.2%.

The follow-up order we received from the US company LiveView Technologies in November 2022 for 2,300 EFOY fuel cells clearly underscores the growing importance of our North American business to us, and our customers’ confidence in our products and their high satisfaction. Our continuous technological improvements not only increase the economic efficiency of our customers’ energy supply, from a macro perspective, they also improve the carbon footprint of their own products by relying on SFC fuel cells. We consider our customers close allies in the ‘Race-to-Zero,’ which we want to win together,” said Dr. Peter Podesser, CEO of SFC Energy AG.

Development of sales and earnings

According to preliminary unaudited figures, the SFC Energy Group generated significant organic sales growth in fiscal year 2022. Sales rose by 32.5% to EUR 85,229 thousand (2021: EUR 64,320 thousand) and thus exceeded the forecast (EUR 81,000 thousand to EUR 83,000 thousand). Both segments contributed to the sales growth, with the Clean Energy segment in particular achieving strong growth in sales (plus 35.8%) due to the continued high demand for the Group's fuel cell solutions.

Adjusted EBITDA further increased in the reporting year 2022 to EUR 8,150 thousand (2021: EUR 6,233 thousand) and was thus slightly above the midpoint of the forecast range (EUR 7,500 thousand to EUR 8,500 thousand). At 9.6%, the preliminary adjusted EBITDA margin in 2022 was nearly at the same level as in the previous year (2021: 9.7%), despite high growth investments in internationalization, expansion of production capacities and the new product generations.

Adjusted EBIT, i.e. EBIT adjusted for non-recurring effects, increased significantly compared to the previous year to EUR 3,157 thousand (2021: EUR 1,925 thousand) and was thus also within the target range of the Management Board’s expectations (EUR 2,600 thousand to EUR 3,600 thousand). The resulting adjusted EBIT margin improved to 3.7% (2021: 3.0%).

Development of the segments

According to preliminary figures, the Clean Energy segment in particular continued to benefit from market growth and the high demand for fuel cells in the reporting year, posting a 35.8% increase in sales to EUR 57,632 thousand (2021: EUR 42,428 thousand). This especially applied to industrial applications, including civil security technology, data transmission and digitalization, which accounted for the highest share of segment sales. In this context, the increased contribution of the fuel cell business for industrial applications in North America also had a positive effect on the growth of the segment. Sales of fuel cell solutions in the end customer market for private applications remained at around the same level as in the previous year, while sales for applications in the end customer market for public safety, which accounted for the lowest share of segment sales, declined sharply. This is mainly due to the fact that the public safety market is generally dominated by project business. Here, only a few major projects are awarded and delivered over time. This has a significant impact on annual sales in this market.

According to preliminary figures, sales in the Clean Power Management segment rose by 26.1% to EUR 27,597 thousand (2021: EUR 21,892 thousand). This growth was mainly due to recovering demand from both current and new customers.

Order intake and order book

Order intake increased significantly to EUR 127,195 thousand (2021: EUR 89,087 thousand) in the reporting year. Accordingly, as of December 31, 2022, the Group's order book increased to EUR 74,176 thousand (December 31, 2021: EUR 30,551 thousand).

Forecast for 2023

Due to the strong development of the business in 2022, a year in which historic records were set again in a challenging environment, as well as the continuing order momentum, the Management Board expects 2023 to also be characterized by strong growth. Consolidated sales for the current fiscal year are expected to be between EUR 103 million and EUR 111 million.

On the earnings side, the Management Board continues to plan conservatively and expects adjusted EBITDA to be between EUR 8.9 million and EUR 14.1 million and adjusted EBIT between EUR 3.4 million and EUR 8.6 million. This assumption takes the necessary investments in growth into the expansion of production capacities in Germany, the finalization of the new production line in Romania, as well as the establishment of the company’s own presence in India and the US, but also the expansion of the technology base in core components and in the hydrogen sector into account. Furthermore, SFC also takes the uncertainties in the macroeconomic environment into account.

Detailed financial information

The figures presented in this release are preliminary and unaudited. SFC Energy AG will publish its final figures for fiscal year 2022 in its 2022 Annual Report on March 30, 2023.

SFC Energy AG will hold a conference call in English for interested investors and members of the press today, February 14, 2023, at 9:00 a.m. To participate, please register here: https://services.choruscall.it/DiamondPassRegistration/register?confirmationNumber=2634663&linkSecurityString=336e14248

About SFC Energy AG

SFC Energy AG is a leading provider of hydrogen and methanol fuel cells for stationary and mobile hybrid power solutions. With the Clean Energy and Clean Power Management business segments, SFC Energy is a sustainably profitable fuel cell producer. The company distributes its award-winning products worldwide and has sold more than 60,000 fuel cells to date. The company is headquartered in Brunnthal, near Munich, Germany, and operates production facilities in the Netherlands, Romania, and Canada. SFC Energy AG is listed on the Deutsche Börse Prime Standard (GSIN: 756857, ISIN: DE0007568578) and has been part of the SDAX selection index since 2022.

SFC Energy IR Contact:
Susan Hoffmeister
Phone +49 89 125 09 03-33
E-mail: susan.hoffmeister@sfc.com
Web: sfc.com
 

SFC Energy Press Contact:
Marc Bächle
Phone +49 89 125 09 03-32
E-mail: pr@sfc.com
Web: sfc.com

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This publication may contain forward-looking statements, estimates, opinions and projections with respect to anticipated future performance of the Company (“Forward-Looking Statements”). These Forward-Looking Statements can be identified by the use of forward-looking terminology, including, but not limited to, the terms “expects,” “plans,” “anticipates,” “expects,” “intends,” “may,” “will” or “should” or, in each case, their negative, or other variations or comparable terminology. These Forward-Looking Statements include all matters that are not historical facts. Forward-Looking Statements are based on the current views, expectations and assumptions of the management of SFC Energy AG and involve significant known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Forward-Looking Statements should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such results will be achieved. Any Forward-Looking Statements only speak as at the date of this release. We undertake no obligation, and do not expect to publicly update, or publicly revise, any of the information, Forward-Looking Statements or the conclusions contained herein or to reflect new events or circumstances or to correct any inaccuracies which may become apparent subsequent to the date hereof, whether as a result of new information, future events or otherwise. We accept no liability whatsoever in respect of the achievement of such Forward-Looking Statements and assumptions.