Frequentis AG: Significant rise in revenues; orders on hand now half a billion euros

Vienna (pta009/17.08.2022/07:30) - * Revenues +15.7% at EUR 167.3 million as at half-year 2022

* EBITDA EUR 8.4 million

* Order intake +2.6% at EUR 161.2 million, orders on hand +10.0% at EUR 498.1 million

* Integration of the recent acquisition in Italy is progressing well

As a leading global provider of information and communication solutions for safety-critical applications, Frequentis has a consistently robust business model. Frequentis' products are part of the safety-critical infrastructure, in other words, the essential national infrastructure. This infrastructure always has to be available and ready for operation – irrespective of the number of flights or how often the police, fire service, and emergency rescue services are deployed. Consequently, there is continued demand for Frequentis' solutions.

"We are proud that we were able to increase revenues by nearly 16% in these uncertain times. Without including acquisitions, we achieved growth of 4.3%," reports Frequentis' CEO Norbert Haslacher. "At the start of 2022, we continued our growth strategy in the Public Safety domain by acquiring a 51% interest in the Italian company Regola. This acquisition greatly extends our product portfolio and the addressable market."

Frequentis' half-year performance is subject to seasonal fluctuations. EBITDA was EUR 8.4 million in the first half of 2022 and EBIT was EUR -0.5 million. Project acceptances are highest at the end of the year. Since fixed costs are distributed evenly, that generally results in low earnings in the first six months of the year.

Order intake increased by 2.6% to EUR 161.2 million in the first half of 2022. Orders on hand were EUR 498.1 million at the end of June 2022, an increase of 10.0% compared with end-June 2021. Frequentis' order books are therefore well filled.

Acquisition

On 3 January 2022, Frequentis acquired a 51% interest in Regola S.r.l. (based in Turin, Italy). This Italian company's innovative software solutions complement the Frequentis public safety product portfolio and therefore support its long-term growth strategy in this business domain.

Asset and capital structure

Equity was EUR 129.8 million as at end-June 2022 and the equity ratio is 40.7%, which is still above the target of >35%. The net cash position was EUR 84.5 million.

Outlook

In addition to the unforeseeable development of the pandemic, Frequentis faces further uncertainties in 2022. These include the macro-economic situation, inflation, and the development of prices and the availability of raw materials, electronic components, and energy as a consequence of geopolitical crises. It is not possible to make a reliable estimate of the exact effects on costs (e.g. travel expenses, pay rises), revenues (e.g. due to the deferral of project acceptances), supply chains, the budgets available to customers, and the potential postponement of investments.

Depending on the aspects outlined above, Frequentis aims to increase revenues and order intake in 2022 compared with 2021. Some of the increase will be attributable to the M&A transactions that have been undertaken because in 2022 the entities acquired will make a contribution to revenues and order intake from the beginning of the year. Around EUR 7 million has been earmarked for investment (capex).

Frequentis expects to report an EBIT margin of around 6-8% in 2022 – depending on the points outlined above and any outstanding post-merger integration costs.

For details see Half-year Financial Report: https://www.frequentis.com/H1-2022_Frequentis-EN.pdf

About FREQUENTIS

Frequentis is a global supplier of communication and information systems for control centres with safety-critical tasks. The listed family-run company develops and markets its "control centre solutions" in the Air Traffic Management segment (civil and military air traffic control, air defence) and the Public Safety & Transport segment (police, fire brigades, emergency rescue services, shipping, railways).

With a market share of 30%, Frequentis is the world market leader in voice communication systems for air traffic control. Frequentis is also the global leader in aeronautical information management and aeronautical message handling systems.

As a global player with around 2,000 employees (full-time equivalents/FTE), Frequentis has a global network of companies in more than 50 countries. Its head office is in Vienna, Austria. Frequentis' products, services, and solutions are used at more than 40,000 operator working positions in around 150 countries. Shares in Frequentis are traded on the Vienna and Frankfurt stock exchanges; ISIN: ATFREQUENT09, WKN: A2PHG5. In 2021, revenues were EUR 333.5 million and EBIT was EUR 29.0 million.

Wherever Frequentis' systems are used, safety-critical operators bear responsibility for the safety of other people and goods. The company also works towards a more sustainable future through its air traffic optimisation solutions.

For more information, please visit https://www.frequentis.com.

Barbara Fürchtegott, Head of Communications
barbara.fuerchtegott@frequentis.com, +43 1 81150-4631

Stefan Marin, Head of Investor Relations
stefan.marin@frequentis.com, +43 1 81150-1074

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