Results of the Apator

Group for 2021

Presentation to

Shareholders

Torun. June 28. 2022.

The presentation includes selected issues from the following documents:

  • consolidated annual financial statements for 2021.
  • report of the Management Board on activity of Apator SA and the Apator Group in 2021.
  • financial statements of Apator Elkomtech SA for 2021.

The full contents of the financial statements and management reports are available

as of April 28 2022:

  • on the website of Apator SA:www.apator.com.
  • in original in Apator SA at the address: Ostaszewo 57C. 87-148 Łysomice.

2

The Apator Group in 2021

External factors:

  • Supply chains - constant shortage of components and raw materials affecting their availability. extended lead times and consequent price increases
  • widespread inflation (price increases in energy. gas. labor costs. transportation services. fuel)
  • sales model - limited ability to transfer higher costs into prices for customers due to long-term contracts. concluded through public procurement procedures
  • unstable situation on foreign exchange markets
  • continued aggressive pricing strategy from competitors (mainly from Asia)

Actions to minimize the impact of the environment on performance:

  • reorganization of the Group's assets to increase their efficiency - relocation of factories. work on improving operational efficiency
  • renegotiation of contracts. changes in price lists for partners and distributors
  • focusing business development on the Water and Heat segment and on smart solutions
  • development of the most promising export markets
  • increase in debt for optimum stocking - work on warehouse management and logistics processes
  • control of other expenses
  • positive impact of sale of Apator Powogaz property in Poznań on consolidated results (at the level of EBITDA: PLN 34.1 million; at the level of net result: PLN 27.6 million) - one-time factor *

PLN 940.1M

PLN150.6 M

PLN 63.3 M

Sales revenue

(PLN116.5 M)

(PLN 35.7 M*)

EBITDA profit

Net profit

3

Business segments in 2021

  • PLN 375 M revenue
  • PLN 29 M EBITDA
  • 78% domestic revenue
  • Increased sales in the key German market (+18% y/y)
  • the greatest impact of the macroeconomic situation on the segment's performance

4

  • PLN 270 M revenue
  • PLN 38 M EBITDA
  • 69% export revenue
  • Strong export position in the European market
  • main foreign markets: UK. Belgium. Hungary. Turkey
  • PLN 295 M revenue
  • PLN 88 M EBITDA

(PLN 53.6 without real estate)

  • 58% export revenue
  • record sales
  • operating leverage and efficiency improvements
  • main foreign markets: the Czech Republic. France. Spain

Financial results

of Apator Elkomtech SA

03.01.2022

5

PLN M

Sales

Gross result

from sales

Selling and

general

expenses

(SG&A)

Sales profit

EBITDA

Net profit

2021

2020

y/y

62.1

50.1

+24.0%

20.5

17.4

+17.8%

33.0%

34.7%

14.3

12.2

+17.2%

6.2

4.7

+31.9%

10.0%

9.4%

10.4

8.9

+16.9%

16.7%

17.8%

4.6

3.5

+31.4%

7.4%

7.0%

Key performance drivers:

  • Sales growth - rebuilding demand after pandemic. Sales of solutions for the gas sector after the acquisition of part of the Atrem company
  • Increase in gross profit on sales despite inflation (material price increases and disrupted supply chains)
  • Sales profit up 32% despite continued cost pressures:
    • Higher SG&A costs as a consequence of turnover and wage growth (main factors are low base 2021. takeover of Atrem resources. no shield)
  • Satisfactory level of net result with stable margin.

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Disclaimer

Apator SA published this content on 11 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 July 2022 11:13:01 UTC.