Results for the first half of 2024

• REBIT of €8.8 million supported by an OPEX optimization policy, despite an unfavorable volume effect

• Negative net result due to non-recurring costs related to the Transform 2025 plan

• Significant improvement in working capital requirement, strong increase in operating cash flow and continued debt reduction

SAINT-JEAN-DE-SOUDAIN, France, September 09, 2024–(BUSINESS WIRE)–Regulatory News:

SergeFerrari Group (FR0011950682 – SEFER), one of the world leaders in innovative composite fabrics, listed on Euronext Paris – compartment C, today announces its consolidated half-year results as of June 30, 2024, approved by the Supervisory Board at its meeting of September 9, 2024. These consolidated accounts have been subject to a limited review by the Statutory Auditors, whose report is currently being prepared.

Consolidated accounts subject to a limited review by the statutory auditors

[1] REBIT = Operating result +/- restructuring costs +/- consolidation adjustments linked to external growth operations

*including -€11.4 million in direct and indirect non-recurring expenses linked to the Transform 2025 plan

Sébastien Baril, Chairman of the Board of Directors of SergeFerrari Groupstates: “During the first half of 2024, SergeFerrari Group demonstrated agility with the operational implementation of the measures of its Transform 2025 plan. In order to adjust its structure to shortened economic cycles, the Group has indeed undertaken a sustained policy of optimizing its costs, resulting in particular in transfers and groupings of activities and functions, mainly between its Krefeld site in Germany and its historic plant in La Tour du Pin. The latter impact our profitability in the short term, but will result in a future improvement in our operational performance. The first results of this Transform 2025 plan, combined with an emerging recovery in activity, make the Group confident in its ability to increase its profitability in the medium term, despite new tensions on the price of certain strategic raw materials.. »

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Gradual resumption of activity level on the 2nd^th quarter 2024

The Group achieved a turnover of €161.9 million in the first half of 2024, down -7.8% at current scope and exchange rates and down -7.6% at constant scope and exchange rates. After a first quarter of 2024 which resulted in a decrease of -14.1% vs. N-1, the second quarter of 2024 saw the start of a gradual recovery in activity on the Group’s historical markets, with the turnover recorded being slightly down -2.5% compared to that observed in the same period last year.

Profitability impacted by non-recurring charges linked to the Transform 2025 plan

Given the drop in its business volume, SergeFerrari Group is posting a REBIT of €8.8 million in the first half of 2024, compared to €11.7 million in the first half of 2023.

The Group has undertaken measures to adapt its cost structure as part of its Transform 2025 plan, which will continue during the second half of 2024. The transfers of logistics activities and certain cross-functional functions to the La Tour du Pin site have generated significant non-recurring expenses impacting profitability in the short term, amounting to -€7.9 million on operating income and -€11.4 million on net income. These measures will strengthen the Group’s operational levers and agility, necessary to benefit as much as possible from the recovery in activity expected for the second half of 2024.

The operating result thus stands at €0.5 million compared to the €10.7 million recorded in the first half of 2023.

After taking into account non-recurring charges for the half-year, the cost of financial debt and income tax, the Group’s net income amounts to -€8.8 million, compared to €5.1 million in the first half of 2023.

Strengthened financial situation thanks to optimized management of operational working capital requirements

The measures implemented under the Transform 2025 plan and the establishment of a non-recourse factoring contract have made it possible to significantly improve the operating WCR in the first half of 2024 (+€9.5 million) compared to cash consumption recorded in the first half of 2023 (-€19.2 million). As a result, the Group generated an operating cash flow of €25.8 million in the first half of 2024, compared to -€4.4 million in the first half of the previous financial year.

As of June 30, 2024, the Group’s net debt used to calculate covenants (excluding IFRS16 impact) stands at €66.7 million, compared to €96.2 million as of June 30, 2023, thus meeting its commitments with leverage at 3.62.

Perspectives

The Group will continue its operational optimization efforts during the second half of 2024 via the various axes of its Transform 2025 plan. The execution of this plan, combined with an improvement in activity that is beginning, makes the Group confident in its ability to return to an increase in its profitability in the medium term.

Financier’s agenda

– Publication of the turnover of 3^th quarter 2024, October 31, 2024after the exchange.

ABOUT SERGEFERRARI GROUP

The Group develops and manufactures innovative, high-tech, eco-responsible composite fabrics for Tensile Architecture, Modular Structures, Solar Protection and Furniture/Marine, on a global market estimated by the Company at around €6 billion. The unique characteristics of its products make it possible to implement applications that meet the Group’s major technical and societal challenges: low-energy buildings, energy management, performance and durability of materials, the search for comfort and safety, opening up living spaces to the outdoors, etc. Its main competitive advantage is based on the implementation of differentiating proprietary technologies and know-how. The Group has industrial sites in France, Switzerland, Germany, Italy and Asia. SergeFerrari Group is present in 80 countries via subsidiaries and representative offices and through a network of more than 100 independent distributors worldwide.

At the end of 2023, SergeFerrari Group posted consolidated revenue of €327.6 million, of which more than 80% was generated outside France. SergeFerrari Group is listed on Euronext Paris – Compartment C (ISIN code: FR0011950682). The SergeFerrari Group share is eligible for PEA-PME and FCPI investment. www.sergeferrari.com

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